Small Business Management
Midterm Exam
Course Introduction
Small Business Management explores the foundational principles and practical strategies required to start, operate, and grow a small business. This course covers essential topics such as business planning, financing, marketing, legal issues, operations management, and human resource practices specific to small enterprises. Students will analyze case studies, develop entrepreneurial skills, and learn techniques for effective decision-making in the dynamic environment of small business. Emphasis is placed on innovation, sustainability, and the challenges unique to small business owners, preparing students to successfully launch and manage their own ventures or contribute to existing small businesses.
Recommended Textbook
Entrepreneurship Theory Process and Practice 10th Editionby Donald F. Kuratko
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15 Chapters
444 Verified Questions
444 Flashcards
Source URL: https://quizplus.com/study-set/1416 Page 2
Chapter 1: Entrepreneurship: Evolutionary
Development-Revolutionary Impact
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28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/28106
Sample Questions
Q1) Mountain gap strategies refer to:
A)unique resources
B)unique locations
C)unique resources.
D)unique markets
Answer: D
Q2) Which of the following is not a common myth about entrepreneurs?
A)Entrepreneurs are academic and social misfits.
B)Entrepreneurs are doers, not thinkers.
C)Entrepreneurs today are considered heroes.
D)All you need is money to be an entrepreneur.
Answer: C
Q3) The "corridor principle" states that entrepreneurs often get stuck on one idea.
A)True
B)False
Answer: False
Q4) Entrepreneurs are aggressive catalysts for change within the marketplace. A)True
B)False
Answer: True
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Chapter 2: The Entrepreneurial Mind-Set in Individuals:
Cognition and Ethics
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28107
Sample Questions
Q1) Discuss the specific areas of entrepreneurial risk.
Answer: The four areas of risk are financial risk,career risk,family and social risk,and psychic risk. First,financial risk deals with the amount of savings or resources that the entrepreneur puts into venture. If the venture is not successful,the money or resources will most likely be lost. The entrepreneur will probably sign obligations that exceed his or her personal wealth. The second risk is career. The would-be entrepreneur frequently asks if he or she will be able to find a job or go back to a previous job. The new venture has no guarantees about career security. Family and social risk are also to be considered.
Q2) Which of the following is not a trait of successful entrepreneurs?
A)initiative
B)frustration
C)perseverance
D)strategic thinking
Answer: B
Q3) The "dark side" of entrepreneurship refers to the stress that entrepreneur's experience.
A)True
B)False
Answer: False
Page 4
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Chapter 3: The Entrepreneurial Mind-Set in Organizations: Corporate Entrepreneurship
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28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/28108
Sample Questions
Q1) Systematic evolution of a product or service into newer or larger markets is referred to as radical innovation.
A)True
B)False
Answer: False
Q2) Which of the following is an obstacle to corporate entrepreneurship?
A)orientation to the market
B)a system of feedback and positive reinforcement
C)traditional management techniques
D)rewards based upon results
Answer: C
Q3) In restructuring corporate thinking,top management should
A)identify potential entrepreneurs after an innovation program is in operation.
B)make the entrepreneur follow strict corporate guidelines.
C)promote entrepreneurship through experimentation.
D)create diversity and order in strategic activities.
Answer: C
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Page 5
Chapter 4: Social Entrepreneurship and the Global
Environment for Entrepreneurship
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28109
Sample Questions
Q1) An L3C is a new legal form for social enterprises known as
A)limited liability corporations
B)low-profit, limited liability companies
C)long-term, low-profit, low-liability companies
D)limited liability laborers
Q2) An account framework that goes beyond the traditional measures of profit,return on investment,and shareholder value to include environmental and social dimensions is called
A)the shared bottom line
B)the value proposition
C)the triple bottom line
D)the twin bottom line
Q3) One researcher established a framework that classified social actions of corporations into distinct categories that included
A)social obligation.
B)social responsiveness.
C)social action.
D)a and b only.
Q4) List some activities that have come to be associated with social entrepreneurship.
Page 6
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Chapter 5: Innovation: the Creative Pursuit of Ideas
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28110
Sample Questions
Q1) The phase of the creative process when the idea or solution the individual is seeking is discovered is the
A)background or knowledge accumulation.
B)incubation process.
C)idea experience.
D)evaluation and implementation.
Q2) Identity and describe two arenas of creativity.
Q3) Logical and analytical skills are developed in the
A)left hemisphere of the brain.
B)right hemisphere of the brain.
C)central hemisphere of the brain.
D)anterior hemisphere of the brain.
Q4) Incongruities are gaps or differences between expectations and reality.
A)True
B)False
Q5) Which of the following is not one of the phases in the creative process?
A)background or knowledge accumulation
B)evaluation and implementation
C)the incubation process
D)preliminary investigation
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Chapter 6: Assessment of Entrepreneurial Opportunities
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) Obtaining external financing is considered one of the major types of problems for a new venture during its first year.
A)True
B)False
Q2) Feasibility analyses include technical,market,financial,organizational,and competitive analyses.
A)True
B)False
Q3) Surprisingly,growth of sales is generally not considered a critical factor in assessing new ventures.
A)True
B)False
Q4) Rapid technological advances in many industries cause a concern for in new venture development.
A)faulty product performance
B)rapid product obsolescence
C)inadequate awareness of competitive pressures
D)undercapitalization
Q5) What are three critical factors in a new venture assessment?
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Chapter 7: Pathways to Entrepreneurial Ventures
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28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/28112
Sample Questions
Q1) Franchisees have the option of using the logo and symbols of the franchisor.
A)True
B)False
Q2) A key question to ask when buying an on-going small business is which of the following?
A)How old is the business?
B)Where should you retire someday?
C)Can you become a millionaire by buying this business?
D)How many personnel are going to remain?
Q3) Uniqueness in a product or service can be demonstrated through a new-new approach or a new-old approach.
A)True
B)False
Q4) Who must negotiate a final deal to purchase a business?
A)A lawyer
B)A CPA
C)The potential buyer
D)All of the above
Q5) Briefly explain the new-old approach to creating new ventures.
Q6) Why did the Federal Trade Commission enact the Franchise Rule?
Page 9
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Chapter 8: Sources of Capital for Entrepreneurs
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) Which of the following does not represent a category of angel investors?
A)micromanagement angels
B)entrepreneurial angels
C)amateur angels
D)corporate angels
Q2) One of the advantages of public offerings is
A)liquidity.
B)disclosure.
C)requirements.
D)cost.
Q3) Advantages of debt financing include all of the following except:
A)low interest rates that justify the opportunity cost.
B)regular interest payments.
C)potential greater return on equity.
D)no relinquishment of ownership.
Q4) Sophisticated investors are wealthy individuals who invest more or less regularly in new and/or early- and late-stage ventures.
A)True
B)False
Q5) Are formal firms the only source of venture capital?
Page 10
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Chapter 9: Legal Challenges of Entrepreneurial Ventures
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28114
Sample Questions
Q1) That part of a patent application which identifies the features that are protected are known as the
A)particular.
B)claim.
C)identification.
D)essence.
Q2) Works created after January 1,1978,have a copyright for the life of the author plus
A)70 years.
B)50 years.
C)14 years.
D)10 months.
Q3) Which of the following are not trademarks?
A)symbols
B)mottos
C)names
D)generic words
Q4) The two parts of a patent application are specification and claims.
A)True
B)False
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Chapter 10: Marketing Challenges for Entrepreneurial Ventures
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28115
Sample Questions
Q1) What three important aspects of social media marketing should entrepreneurs be aware of?
Q2) Identify and describe two pricing models pertinent to the social media age?
Q3) Of the following,which is not associated with entrepreneurial tactics in market research?
A)guerrilla marketing
B)lead user research
C)in-person interviews
D)blog monitoring
Q4) Marketing research involves the gathering of information about a particular market,followed by analysis of the information.
A)True
B)False
Q5) Of the following,which does the textbook identify as critical to the marketing planning process?
A)market niche
B)market segmentation
C)marketing research
D)marketing myopia
Q6) Explain the new marketing concept?
Page 12
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Chapter 11: Financial Preparation for Entrepreneurial Ventures
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28116
Sample Questions
Q1) The traditional accounting equation that verifies the accuracy of the entrepreneur's balance sheet is
A)assets = liabilities + owners' equity.
B)assets + liabilities = owner's equity.
C)assets + owner's equity = liabilities.
D)assets = liabilities - owner's equity.
Q2) A budget is one of the most powerful tools that an entrepreneur can use in planning business operations.
A)True
B)False
Q3) Capital budgeting is designed to show
A)how many projects, in total, should be selected.
B)which project is most profitable.
C)which of several mutually exclusive projects should be selected
D)how to evaluate projects based on rates of return.
Q4) Explain what a cash flow budget tells a manager/owner.
Q5) Pro forma statements show the firm's present financial position.
A)True
B)False
Q6) Explain pro forma statements.
Page 14
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Page 15
Chapter 12: Developing an Effective Business Plan
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) A business plan must illustrate the current status of the venture but not the projected results.
A)True
B)False
Q2) The entrepreneur should expect to encounter a friendly and supportive audience when presenting the business plan to potential financial sources.
A)True
B)False
Q3) Which of the following describes advantages of the business plan for financial sources?
A)The plan identifies critical risks.
B)The plan helps assess the entrepreneur's family.
C)the plan identifies sources of capital.
D)all of the above.
Q4) An indicator of the planning pitfall of "failure to anticipate roadblocks" is A)recognition of future problems.
B)making no admission of possible flaws in the plan.
C)having a contingency or alternative plan.
D)pursuing a good work force.
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Chapter 13: Strategic Entrepreneurial Growth
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) Unique managerial concerns of growing ventures encompass all of the following except:
A)the one-man-band syndrome
B)community pressures
C)time-management issues
D)agency problems
Q2) The entrepreneurial strategy matrix measures:
A)risk and security.
B)commitment and time.
C)risk and innovation.
D)opportunity and time.
Q3) Which of the following factors would not be considered a key dimension that shapes the strategic management activities of a growing firm?
A)speed of decision making
B)internal political problems
C)environmental uncertainty
D)lack of knowledge
Q4) Participation by subordinates in a strategic plan is never appropriate.
A)True
B)False
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Chapter 14: Valuation of Entrepreneurial Ventures
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) List and describe the sources an entrepreneur should examine to find available business buying opportunities.
Q2) Closely held ventures usually suffer from which of the following shortcomings?
A)a lack of management depth
B)overcapitalization
C)insufficient controls
D)internal conflict
Q3) Explain the purpose of a letter of intent.
Q4) Knowing a venture's pre-money valuation is not possible.
A)True
B)False
Q5) Sales and earnings of a venture are projected from
A)historical projections
B)historical financials
C)data on start-ups
D)property values
Q6) "Why is the business being sold?" is not an important question to ask when analyzing the viability of buying a business.
A)True
B)False
Page 18
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Chapter 15: Harvesting the Entrepreneurial Venture
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) Which of the following is not an example of pressures or interests from within a firm that affect succession issues?
A)rivalry among various branches of the family
B)pressure from a family member to start his/her own business
C)employee wanting a percentage of the business in the owner's will
D)pressure on the owner/manager to designate an heir
Q2) The harvest decision may come when the venture has grown to a stage where an IPO is a possibility.
A)True
B)False
Q3) What are the four critical steps to consider in developing a succession strategy in a family business?
Q4) Describe the legal concerns over family business succession citing the Oakland Scavenger case.
Q5) An entrepreneurial successor is someone who is interested in efficiency and the effective use of resources.
A)True
B)False
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