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Contents
1 SMALL BUSINESS MANAGEMENT . . . . . . . . . . . . . . . . . . . . . 2

1.1 SMALL BUSINESS MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1. SMALL BUSINESS
NARAYAN CHANGDER
MANAGEMENT
1.1 SMALL BUSINESS MANAGEMENT

1. Location is important to small retail busi- 4. Family upbringing, the faith traditions,
ness because mentors who haveshaped their lives, and
the communities they grew up factors that
A. most retailers need good customer
create entrepreneur’s ethical behaviors’.
traffic to survive.
A. True
B. many potential customers will stay
away if the business is not easy to find. B. False
C. customers general do not want to 5. this is mainly from personal savings, rela-
travel long distances to find what they tives at the initial stages and some secured
need. credit later if the business is growing.
D. all of the choices listed A. Finance
B. Financial Management
2. Rewards for starting a small business are
C. Funding
A. Growth rewards
D. Financial
B. Income rewards
6. The profile of an entrepreneur includes
C. Flexibility rewards
A. a desire for responsibility and moder-
D. None of above ate risk
B. confidence in the ability to succeed
3. A is an exclusive right that protects the
and determination
creators of original works such as literary,
dramatic, musical, and artistic works. C. a high level of energy, a desire for im-
mediate feedback and a future orientation
A. trademark
D. All the above
B. patent
7. Three levels of ethical standards are the
C. copyright
law, policies and procedures and immoral-
D. service mark ity
1. D 2. A 2. B 2. C 3. C 4. A 5. C 6. D 7. B
1.1 SMALL BUSINESS MANAGEMENT 3
A. true C. partnership
B. false D. limited liability corporation

8. According to the Small Business Adminis- 14. Before a business owner completes the
tration, a small business is an independent business plan, he or she should ask busi-
business with fewer than employees ness experts to review the plan.
A. 500 A. True
B. 100 B. False
C. 50
15. Which of the following is/are true regard-
D. 10 ing business plans?
9. A good example of an entrepreneur is a(n) A. Provide a pathway to success.
A. police officer B. Allow entrepreneurs to replace faulty
B. UPS delivery driver assumptions with facts before making the
decision to go into business.
C. gift shop owner
C. Create a benchmark against which en-
D. checkout clerk at Target
trepreneurs can measure actual company
10. Small Businesses are not the backbone of performance.
the economy. D. All of the above
A. True
16. There are levels of ethical standards.
B. False
A. Dishonesty
11. Products or raw materials a business B. Criminal behavior
keeps on hand.
C. Irresponsibility
A. innovation
D. Moral blindness
B. improvement
C. customer analysis 17. Choose appropriate location for your busi-
ness.
D. inventory
A. Location
12. What is important about managing a busi-
ness B. Place
A. You are the leader C. Workplace
B. People will you judge how you do D. Workforce

C. People will be looking up to you for 18. Which of the following does NOT describe
leadership a typical small business?
D. Its a job A. The owner is usually the manager.
13. Which type of business is subject to double B. It is dominant in its field.
taxation? C. It serves a small market.
A. sole proprietorship D. It operates in one or very few loca-
B. corporation tions.
8. A 9. C 10. B 11. D 12. C 13. B 14. A 15. A 15. B 15. C 16. A 16. B 16. C
16. D 17. A 18. B 19. C
19. Small businesses employ of private A. focusing on being too logical

sector employees in the United States. B. being too practical
A. less than 10 percent C. blindly following rules
B. about a quarter D. searching for more than one answer
C. more than half
25. It is essential part of buying inventory,
D. about 75 percent paying employees, marketing the busi-
ness, buying or repairing business tools
NARAYAN CHANGDER
20. involves the process of studying, re-
viewing, and verifying all the relevant in- and paying his own salary.
formation concerning an acquisition. A. Financial Management
A. Negotiation B. Financing
B. Due diligence C. Funding
C. Valuation D. none of above
D. Opportunity identification 26. Which of the following is probably the
least important factor in becoming an en-
21. Please pick 2 correct answers. 5 impor-
trepreneur?
tant things in financial planning in a small
business. A. having a desire to be your own boss
A. Online Banking B. living in a major city
B. Formula C. having special skills and abilities
C. Save D. developing a good business plan
D. PERIODIC ASSESSMENT 27. An invention or creation that is brand new
22. A disadvantage of owning your own busi- A. innovation
ness is B. inventory
A. long work hours C. venture capital
B. doing what you love D. improvement
C. setting your own schedule
28. The ability to develop new ideas and to
D. success discover new ways of looking at problems
and opportunities is called
23. According to the Small Business Adminis-
tration, a small business is an independent A. entrepreneurship
business with fewer than employees. B. innovation
A. 10 C. creativity
B. 50 D. creative thinking
C. 100 29. It is often very difficult for small busi-
D. 500 nesses to find suitably premises for rent.
The rents might be initially very high.
24. All of the following represent barriers to
creativity that entrepreneurs impose upon A. Advantage
themselves except B. Disadvantage
20. B 21. B 21. D 22. A 23. D 24. D 25. A 26. B 27. A 28. B 29. B 30. A
30. B
30. Entrepreneurs can increase their chances C. organized

for success if they
D. irresponsible

A. know their business in depth and de-
velop a solid business plan 35. The most successful small business owners
B. manage their financial resources and A. establish good working relationships
understand financial statements with professionals such as bankers,
C. learn to manage people and keep in lawyers, and accountants.
touch with how they react to stress and
B. have never worked for anyone else be-
balance their health needs with the needs
fore.
of the business
D. All of the above C. do not need to choose employees care-
fully because they will be the ones giving
31. What is a business plan? orders.
A. A written document that describes in D. understand that a written business
detail how a business usually a startup plan is a waste of time and money.
B. Plan that shows organization structure
36. Which of the following statements con-
C. Written document that describe busi-
cerning small businesses and international
ness employees
markets is false?
D. describes how the business will look
A. Although terrorism and global reces-
32. A(n) is an invention or creation that is sion have slowed the growth of interna-
brand new. tional trade somewhat, global opportuni-
A. Initiative ties for small businesses have a long-term
positive outlook.
B. Improvement
B. Although the U.S. is an attractive mar-
C. Innovation
ket, approximately 95 percent of the
D. Advancement world’s population lives outside its bor-
ders.
33. By far the greatest percentage of busi-
nesses in the U.S. is small businesses. C. Because exporting is so complex and
requires a company to have so many inter-
A. True
national experts on staff, exporting is not
B. False feasible for small businesses.
34. Which is NOT a common characteristic of D. Small companies comprise 97 percent
an entrepreneur? of all businesses engaged in exporting,
yet they account for only 30 percent of the
nation’s export sales.
37. Ethical dilemma happen when en-

trepreneur has to made decision that will
affect society and the entrepreneur’s right.
A. risk-taker A. True
B. creative B. False
30. C 30. D 31. A 32. C 33. A 34. D 35. A 36. C 37. A 38. B
38. In the United States, about how many 44. What is the job of a business manager
women own their own businesses?
A. oversee the activities of workers
A. 0.5 million
B. ensure that a company or department
B. 6 million is on track to meet its financial goals
C. 14 million C. hire, train and evaluate new employ-
D. 22 million ees
39. Money provided by large investors to fi- D. All of the above
NARAYAN CHANGDER
nance new products and new business that
have a good chance to succeed is 45. Below are the examples of startup in the
sharing-economy, EXCEPT:
A. working capital
A. Airbnb
B. investment capital
C. risk capital B. Uber
D. venture capital C. Agoda

D. Foodpanda
40. The owner of a sole proprietorship has un-
limited liability.
46. Below are the costs of entrepreneurship,
A. True EXCEPT:
B. False A. Loneliness
41. Who is the leader in Mutiara Enterprise B. Financial Insecurity
group?
C. Strain on Personal Relationships
A. Azim Firdaus
D. None of above
B. Addie reinforced
C. Azeem Haiqal 47. Entrepreneurs can stimulate their own cre-
ativity and encourage it among workers
D. Shahirul Idham
by
42. Any distinctive word, phrase, symbol, A. expecting and tolerating failure
name, or logo a firm uses to distinguish
itself or its products is called a B. avoiding problems
A. trademark C. limiting rewards
B. patent D. not taking chances
C. copyright
48. The nation’s small businesses
D. service mark
A. employ more than 49 percent of the na-
43. Who sells shoes in the Mutiara Enterprise tion’s private sector workforce
group?
B. create more jobs than do big busi-
A. Azeem Haiqal nesses
B. Azim Firdaus C. account for 47 percent of business
C. Afiq Daniel sales
D. Addie reinforced D. All of the above
39. D 40. A 41. A 42. A 43. B 44. D 45. C 46. D 47. A 48. A 48. B 48. C 49. B
49. What products does Shahirul Idham sell? C. Convergent; transformational

A. Poppy Cripsy D. None of the above

B. Fareha’s veil 55. Money needed to pay for the current oper-
C. Shoes ating activities of a business.
D. Choco Jar A. short-term financing
50. is a written statement of the standards of B. long-term financing
behavior and ethical principles a company C. inventory
expects from its employees.
D. improvement
A. Company credo
56. Most of the money needed to start a new
B. Company annual report
business comes from the entrepreneur and
C. Company vision his or her family and friends.
D. Code of ethics A. true
51. Which type of business may have royalty B. false
fees associated with ownership?
57. Large businesses are responsible for most
A. limited liability corporation new employment opportunities.
B. corporation A. True
C. franchise B. False
D. sole proprietorship
58. An idea that has commercial value
52. Entrepreneurs A. Risk
A. cannot tolerate ambiguity or uncer- B. Innovation
tainty
C. Opportunity
B. must have a business degree
D. Resourcing
C. are unable to problem solve and learn
from failure 59. What can you find in a business overview?
D. come from all ages, race, and educa- A. Industry analysis
tional backgrounds
B. Cash flow
53. Listening to feedback from customers is im- C. Type of business and the demograph-
portant in any business ics
A. Customer Focus D. Business Model
B. Customer Idea
60. A group of retired local businesspeople
C. Customer Knowledge who volunteer their services to counsel
D. Control and mentor new business owners.
54. thinking is the ability to see similarities A. Service Corps of Retired Executives
and among various data and events. B. Entrepreneurs of America
A. Divergent; convergent C. Small Business Administration
B. Convergent; divergent D. International Trade Administration
50. D 51. C 52. D 53. A 54. B 55. A 56. A 57. B 58. C 59. C 60. A 61. C
61. Money provided by large investors to fi- 67. An entrepreneur is one who
nance new products and new businesses. A. is willing to attempt to implement a
A. short-term financing business concept and then give up if it
does not meet immediate expectations
B. long-term financing
B. understands the process of developing
C. venture capital an idea and does not need to understand
D. improvement what it means to bring that idea to a viable
business concept
NARAYAN CHANGDER
62. A written description of the purpose of a C. knows that the concept they are about
company and the management’s philoso- to develop will result in a profitable busi-
phy. ness
A. Harvesting D. creates a new business concept for
the purpose of achieving profit and
B. Mission Statement
growth by assembling the necessary re-
C. Resourcing sources to capitalize on identified oppor-
tunities
D. Actualization
68. Below are the potential benefits of en-
63. A large number of small businesses in the trepreneurship, EXCEPT:
United States are service businesses.
A. Control over Time
A. true
B. Financial Reward
B. false C. Freedom
64. Small businesses do not have economies of D. Contribution to Society

scale, the ability to cut costs by increasing 69. John has come to you for advice on start-
production. ing a business venture. He wants to know
A. Advantage the best way to gain the experience he’ll
need. You suggest that he
B. Disadvantage
A. read a small business book
65. Entrepreneurship is the process of start- B. seek knowledge and experience in the
ing, organizing, managing, and assuming field he wishes to enter
the responsibility for a business.
C. determine his weaknesses and return
A. True to school for a term or two
B. False D. just jump in and learn as he goes
70. A business should locate in an area

66. Small businesses have an advantage over
with access to raw materials and trans-
big businesses when customers
portation systems
A. are willing to buy standard products.
A. Retail
B. want more individual attention. B. Manufacturing
C. prefer low cost and efficient delivery. C. service
D. all of the choices listed D. wholesale
62. B 63. A 64. B 65. A 66. B 67. D 68. C 69. B 70. B 71. A
71. One of the most significant economic devel- 76. A U.S. government agency that helps
opments in recent business history relates small business owners obtain financing
to the and other support for their companies is

the
A. growth of blue-chip corporations
A. Small Business Administration (SBA)
B. development of Pacific Rim countries
B. U. S. Trade and Development Agency
C. entrepreneurial spirit
C. Department of Housing and Urban De-
D. additional employment opportunities velopment
offered by government institutions
D. Service Corps of Retired Executives
72. Small companies that have expanded suc- (SCORE)
cessfully into foreign markets tend to rely
77. Which of the following does not describe a
on all but which of the following strate-
typical small business?
gies?
A. it is dominant in its field
A. Research foreign markets thoroughly.
B. the owner is usually the manager
B. Focus on many countries initially.
C. it serves a small market
C. Utilize government resources de-
D. it operates in one or a few locations
signed to help small companies establish
an international presence. 78. U.S. businesses with just a single owner
D. Forge alliances with local partners. and no staff account for over $600 billion
in annual sales
73. Which of the following statements regard- A. True
ing a business plan is true?
B. False
A. it never needs to be revised
79. What is the criteria for defining the sme?
B. A business plan is not necessary.
A. Number of employees
C. it should be revised yearly
B. Attitude
D. lenders don’t consider them when
C. Cost
funding a business
D. Financial aspect
74. The American private enterprise system
discourages risk-taking and innovation. 80. Most business plans are developed for
year(s).
A. true
A. one
B. false
B. two
75. One hallmark of successful entrepreneurs C. five
is the ability to D. ten
A. be willing to gamble
81. Everyone who owns a business is an en-
B. fail intelligently trepreneur.
C. overlook past successes A. True
D. repeat the same mistake B. False
72. B 73. C 74. B 75. B 76. A 77. A 78. A 79. A 80. A 81. B 82. A 83. A
82. Small business support networks are gen- 88. Choose the traits you think an en-
eral features of small businesses trepreneur should have
A. True A. Passion
B. False B. Openness
C. Stubborn
83. A small business can be determined based
on: D. Extroversion
NARAYAN CHANGDER
A. Size 89. What goods and/or services do small busi-
B. Skills nesses provide?
C. Sales turnover A. Personal services
D. Specialty B. Professional services

C. Ready to eat food
84. The part of a business plan that discusses
the industry characteristics and the condi- D. All of these and more
tion of the economy.
90. The government agency that anyone look-
A. cutomer analysis ing to help with starting a business is the
B. description of competition A. Business Agency Group
C. inventory B. Small Business Start-Up Agency
D. improvement C. The Government Business Assistance
Authority
85. Choose two types of ChocoJar Adi Izzat D. Small Business Administration
sells.
A. CocoCruch 91. Advantages to buying an existing business
that you do not have with a startup include
B. BubbleRice
C. Babycruch A. greater access to venture capital
D. KriukKriukRice B. the opportunity to participate in a na-
tional advertising campaign
86. The most important step in starting a busi-
ness is preparation. C. inventory is in place and trade credit is
established
A. True
D. easy implementation of innovations
B. False and changes from past policies
87. An invention or creation that is brand new 92. The population is the fastest-growing sec-
is a(n) tor in the United States.
A. improvement A. Asian
B. risk B. African-American
C. innovation C. Hispanic
D. economical decision D. Caucasian
83. C 84. B 85. B 85. C 86. A 87. C 88. A 88. B 88. D 89. D 90. D 91. C
92. C 93. B 94. C
93. Lack of access to markets and procurement 100. Neighborhood loyalty.

A. Advantage A. Advantage

B. Disadvantage B. Disadvantage
94. Creativity is necessary for building a com- 101. When developing creative solutions to
petitive advantage and for business sur- modern problems, entrepreneurs must
vival. A. go beyond merely using whatever has
A. One single idea worked in the past
B. A motivated owner B. limit the creative process to only prof-
itable ventures
C. Creativity
C. remember what has worked in the past
D. A low-priced product
D. pay attention to limiting factors
95. On the Job Learning are general features
of small businesses 102. The majority of small companies are con-
centrated in the
A. True
A. manufacturing; retail
B. False
B. manufacturing; service
96. Corporations have a disadvantage of dou-
C. retail; service
ble taxation.
D. wholesale; retail
A. True
B. False 103. The amount of money needed to open a
business is called financing.
97. Entrepreneur’s personal values and belief
A. innovative
is not important to succeed in a business.
B. venture
A. True
C. start-up
B. False
D. designated
98. financing is money needed for the main
resources of a business that will last for 104. Money provided by large investors to fi-
many years. nance new products and new businesses
that have a good chance to be very prof-
A. Long-term
itable is known as
B. Short-term
A. a loan
C. Absolute
B. credit
D. Venture C. start up funding
99. A advantage of owning your business is D. venture capital
A. long work hours 105. An entrepreneur is a person who owns,
B. doing what you love operates, and take the risk of a business
C. responsibility for business failure venture.
D. There are no advantages of owning our A. True

own business. B. False
95. A 96. A 97. B 98. A 99. B 100. A 101. A 101. D 102. B 103. C 104. D
105. A 106. B
106. Identify and serve customers who are 112. Entrepreneurs typically possess
likely to patronize your business more of- A. the ability to easily access capital
ten.
B. a set of unique skills that is usually ac-
A. Customers companied by advanced degrees in sev-
B. Target the Right Customers eral areas
C. Customer Satisfaction C. a high level of commitment, have a
tolerance for ambiguity, are flexible and
D. none of above
NARAYAN CHANGDER
tenacious
107. Who has the highest sales in the Mutiara D. specialized technical abilities
Enterprise group?
113. Choose the right definition of Supporting
A. Addie reinforced Documents in small business.
B. Shahirul Idham A. Supporting documents are financial
C. Azeem Haiqal support documents from other parties.
D. Azim Firdaus B. Supporting documents are license doc-

uments related to small businesses.
108. Most Americans are employed by a small C. A supporting document is a document
business. that gives you full support.
A. true D. Financial plan support documents are
B. false a merit place into your financial figures
109. Which of the following is a benefit of en- 114. Tips needed to help business succeed
trepreneurship? A. Just come in
A. The opportunity to gain control over B. Have a written plan
your own destiny. C. Using the Internet as an information
B. The opportunity to reach your full po- search
tential. D. Ask a friend who likes to play ML
C. The opportunity to do what you enjoy. overnight
D. All of the above 115. A partnership is a business with two or
more people who share the responsibilities
110. True or False. Everyone who owns or of business ownership
manages a business is an entrepreneur.
A. True
A. True
B. False
B. False
116. Small businesses provide employment to
111. The process of starting, organizing, man- people who want to work near their
aging, and assuming the responsibility for homes and to spend time with their fam-
a business is called capitalism. ilies.
A. True A. Advantage
B. False B. Disadvantage
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117. Funding a business online through the col- 122. Having no sales plan are common mis-
lective involvement of others who provide takes to many owners
donations, loans, or investments. This is:

A. True
A. Angel investment B. False
B. Crowdfunding C. Maybe
C. Bootstrapping D. none of above
D. Commercial loan 123. Which of the following is not a character-
istic of a successful working relationship
118. Money needed to pay for the current op-
between copreneurs?
erating activities of a business
A. A clear definition of one partner as
A. start-up financing “boss” and the other as “subordinate”.
B. venture capital B. Compatible business and life goals.
C. short-term financing C. Complementary business skills.
D. long-term financing D. A clear division of roles and authority
based on each partner’s skills and abili-
119. There is no hierarchical boundary in levels ties.
of management or decision
124. Small businesses ownership do not gives
A. Customer Focus
the independence and the freedom not en-
B. Control joyed in the corporate world.
C. Effectiveness A. True
D. Funding B. False
120. Many small businesses have an advan- 125. An invention or creation that is brand
tage over larger businesses because they new is a(n)
are better able to A. experiment
A. Provide unique services to customers B. improvement
B. Market their products C. innovation
C. Raise large amounts of financial capi- D. investment
tal
126. The primary cause of small business fail-
D. Mass produce products ures is
121. Small businesses are responsible for al- A. the lack of capital
most percent of the U.S. gross domes- B. management mistakes
tic product each year. C. poor location
A. 10 D. improper inventory control
B. 25
127. Entrepreneurs
C. 50
A. must have a very low tolerance for am-
D. 75 biguity.

B. almost always own their first business 133. It is easier for a small business to meet
while in their teens. the precise needs of customers than a
C. come from all age categories and edu- large business.
cational backgrounds. A. True
D. must have a business degree to be suc- B. False
cessful.
134. Small business owners
128. What personal characteristics are not A. usually get direct information from
NARAYAN CHANGDER
common to most successful entrepreneurs. their customers about what they like and
A. self-confident dislike.
B. unwilling to accept failure B. have less frequent contact with their
C. ability to spot opportunity customers than large businesses.
D. strong integrity C. rely heavily on consumer research to
gather information.
E. inquisitive
D. typically focus on products and ser-
129. The most popular use of business plans vices that meet the needs of a large group
is to persuade lenders and investors to fi- of customers.
nance the venture.
135. Most small business operators do what
A. True
they enjoy or love doing as the business
B. False may be out of a hobby or part-time job
130. Short-term financing is obtained for a pe- A. Advantage
riod of less than B. Disadvantage
A. three months.
136. In the United States, nearly as many
B. three months. small businesses close as begin each year.
C. one year. A. True
D. two years. B. False
131. The market consists of low-profile 137. A type of business that sells products di-
companies that might be for sale but are rectly to consumers.
not advertised as such.
A. retail business
A. venture capitalist
B. e-commerce business
B. franchise
C. service business
C. hidden
D. e-marketing business
D. broker
138. the blueprint you should use to operate
132. Is it smart to hire a business manager for your business
a small business
A. Business
A. yes, its worth it to see if you can make
a good business B. Marketing Plan
B. no, that’s a lot money for something C. Business Plan

not promised D. none of above

139. To which governmental office must appli- D. Women-owned companies are far less
cations for patents be submitted? likely to attract equity capital investments
as those that men start.

A. The U.S. Patent and Trademark Office
B. The individual State Offices of Patent 144. A disadvantage of owning a sole propri-
Development etorship is that the owner has limited lia-
bility.
C. The Federal Trade Commission
A. True
D. The Securities and Exchange Commis-
sion B. False
145. Money needed for the main resources of
140. The first step in developing a business
a business that will last for many years.
plan is to
A. short-term financing
A. identify alternative plans for produc-
tion and marketing. B. long-term financing
C. inventory
B. write the introductory section.
D. innovation
C. develop the “game plan.”
D. gather and review information. 146. What is the definition of Operations Man-
agement?
141. It is not wise to start a new business A. I honestly don’t know anything.
when demand for the product or service
B. Operations can be defined as manag-
you plan to sell is high, because already-
ing the inner workings of any business
established companies will have a clear ad-
that runs efficiently.
vantage over you.
C. Operations Management is operations
A. true related to the factories industry.
B. false D. Operations Management is en-
trepreneurial management within the
142. A privately, independently owned, man-
group.
aged, and operated for profit
A. Business 147. The demographic attributes of successful
entrepreneurs are
B. Business Idea
A. limited to specific ages, genders, and
C. Business Plan ethnic backgrounds
D. Small Business B. uncertain and have not been fully stud-
ied or analyzed
143. Which of the following statements about
women-owned businesses is false? C. are key predictors that determine how
long the business will survive
A. The businesses women start tend to
be smaller than those men start. D. highly diverse relating to age, gender,
and ethnicity
B. Women own about 28 percent of all
privately-held businesses in the U.S. 148. Approaches to business ethics can be di-
vided into four
C. The number of women-owned busi-
nesses is growing slower than the na- A. true
tional average. B. false

149. What percentage of U.S. small busi- 155. Small businesses

nesses are owned by women?
A. must focus on products and services
A. about 75 percent that meet the needs of a large group of
B. almost 50 percent customers as possible
C. more than 25 percent B. have an advantage when customers
D. close to 10 percent want more individual attention
150. Which are 4Ps for marketing? C. are generally forced to sell products
NARAYAN CHANGDER
and services at lower prices than large
A. Price businesses to compete effectively
B. Profit
D. all of these
C. Place
D. Promotion 156. Small businesses are responsible for
of the U.S. gross domestic product each
E. Product
year.
151. The process of starting, organizing, man- A. less than 10 percent
aging, and assuming the responsibility of
a business is B. about a quarter
A. entrepreneur C. more than half
B. entrepreneurship D. about 75 percent
C. venture capital
157. Money needed to pay for the current op-
D. operations management erating activities of a business is referred
152. What is the basic financial plan for small to as financing.
business? A. long-term
A. To be honest, I wasn’t focused during
B. short-term
the presentation
C. absolute
B. Requires large capital
C. Open a company bank account D. venture
D. Record every incoming and outgoing 158. Entrepreneurship is a constant process
transaction that relies on
153. Business ethics is the fundamental moral A. creativity, innovation, and profit
values andbehaviourial standards
B. the ability to win over the consumer
A. True
C. creativity, innovation, and application
B. False
in the marketplace
154. Which of the following is a consumer D. intellectual property rights
right per the Consumer Bill of Rights?
A. Right to Sanity 159. The first step in developing a business
B. Right to Know plan is to gather and review information.
C. Right to Profit A. true
D. Right to Return B. false

160. Nearly percent of all Americans aged 165. Most successful entrepreneurs have a
18-64 is involved in some type of en- low tolerance for ambiguity.
trepreneurial activity.

A. true
A. 5
B. false
B. 10
166. Employees must be given the tools and
C. 25
resources they need to be creative. One
D. 50 of the most valuable set of resources is
161. Most of the money needed to start a busi- A. setting limits and providing challenges
ness comes from B. establishing rules and guidelines
A. the owner and his/her family and C. time, support and encouragement
friends
D. reinforce traditional problem solving
B. selling stock methods
C. bank loans
167. An entrepreneurial “secret” for creating
D. credit from other businesses value in the marketplace is
162. Retired local business people who volun- A. applying creativity and innovation to
teer their service to counsel and mentor solve problems
business business owners are known as
B. creating new products and services
A. Small Business Administration (SBA)
C. learning by doing
B. Service Corps of Retired Executives
D. applying lessons learned from history
(SCORE)
C. U. S. Department of Economic Develop- 168. is the amount of money needed to
ment open a new business.
D. U. S. Department of Agriculture A. Long-term financing
163. What is not a source of financing for en- B. Short-term financing

trepreneurs? C. Start-up financing
A. personal savings D. Venture Capital
B. operations management
169. is an example of a franchise.
C. venture capital
A. A Walmart
D. friends and family
B. A McDonalds
164. is a process in which a small group of peo- C. An Ingles Grocery Store
ple interacts to produce a large quantity of
imaginative ideas. D. A Sears department store
A. Groupthink 170. Innovation is to create a completely new
B. Mind-mapping idea/product/service.
C. Brainstorming A. True
D. Prototyping B. False

171. Experts estimate that percent of compa- D. about one-half are profitable, one-
nies worldwide engage in some type of so- quarter do not make a profit but continue
cially responsible activity. to operate, and one-quarter lose money.
A. 25 176. Entrepreneurs may find benefit from the
B. 50 Internet due to its potential
C. 75 A. if the organization is willing to invest
millions of dollars in this effort
D. 80
NARAYAN CHANGDER
B. only if the entrepreneur has a high
172. Research into the operation of the human level of technical abilities
brain shows that each hemisphere of the C. as a relatively low-cost solution to ex-
brain pand its revenue-generating abilities
A. develops symmetrically D. to take all pressure off other attributes
B. controls similar functions of the business venture
C. does not dominate the other hemi- 177. Data that describes a group of people in
sphere terms of their age, marital status, family
D. processes information differently size, ethnic background, gender, education,
and income
173. Which stage of the creative process re- A. Harvesting
quires one to develop a solid understand-
ing of the problem or decision? B. Demographics
C. Resourcing
A. Investigation
D. Actualization
B. Preparation
C. Illumination 178. A designed change that increases the use-
fulness of a product, service, or process is
D. Verification called a(n)
174. Which type of business is the easiest to A. experiment
get funding for and has stockholders? B. improvement
A. limited liability company C. innovation
B. sole proprietorship D. investment
C. corporation 179. The various groups and individuals who
D. partnership affect and are affected by a business are
called
175. Of all new businesses,
A. stockholders
A. about one-third are profitable, one-
B. stakeholders
third do not make a profit but continue to
operate, and one-third lose money. C. owners
B. about three-quarters are profitable D. managers
and one-quarter lose money. 180. Small businesses are not a good risk are
C. about one-quarter are profitable and the biggest challenge in securing external
three-quarter lose money. credit by small businesses

A. True 186. Giggles laundry detergent has been on

B. False the market for years. The manufacturer
of Giggles recently added a new ingredi-

181. The three principles (three Rs) of rapid ent to give the detergent extra cleaning
prototyping are power. This is an example of an
A. develop a rough model, rapidly, and for A. improvement.
the right price
B. develop a complete model, rapidly, B. invention.
and for the right problem C. innovation.
C. develop a rough model, rapidly, and
D. opportunity cost.
for the right problem
D. develop a right model, roughly, and for 187. Customer, family members and govern-
the right price ment are example of stakeholders
182. is a new business that is started from A. True
scratch.
B. False
A. Franchise
B. Start-up 188. Small companies are incubators of new
C. Buyout sales ideas, products and services and cre-
D. Back ate times more patents per employee than
large companies.
183. Easier record management because of the
fewer transactions compared to large busi- A. 3
nesses. Thus, most accounting responsibil- B. 5
ities are highly manageable.
C. 10
A. Advantage
B. Disadvantage D. 16
184. Unlimited liability means 189. Ethical behavior is doing what is

A. the owner is responsible for the com-
pany’s debts A. “right”
B. the owner must have insurance B. “profitable”

C. owner shares the liability with the com- C. “credible”
pany’s stockholders
D. All of the above
D. owner is responsible for accidents
only on business property
190. Most startup companies can expect to
185. What is the most important aspect of a need
business manager
A. less
A. leadership
B. the same
B. creativity
C. originality C. more
D. careness D. within 10% of the

191. A business is a written description of C. having a real desire to be your own

a business idea and how it will be carried boss
out. D. developing a good initial business plan
A. venture
197. The first step in developing a business
B. activity plan is to
C. plan A. identify strategic alternatives
D. development B. write the plan
NARAYAN CHANGDER
192. How many followers are there on Insta- C. gather and review information
gram Mutiara Enterprise? D. ask an expert to review the plan
A. -100? 198. Products or raw materials a business
B. 100? keeps on hand to do business are referred
to as
C. 100+?
A. venture
D. 1k?
B. start-up
193. Business ethics that form the foundation
C. inventory
for people of an organisation asthey make
decisions and interact with stakeholders. D. premiums
A. True 199. Small businesses account for of the
B. False U.S. gross domestic product each year.
A. about 10 percent
194. Management of the assets and liabilities
B. almost a quarter
of the business is not a difficult task.
C. more than half
A. Advantage
D. about 75 percent
B. Disadvantage
200. Entrepreneurs do not take risk?
195. Creativity often involves creating some-
thing from nothing. However, it is more A. True
likely to result in B. False
A. elaborating on the present 201. Entrepreneurial couples who work to-
B. putting old things together in new gether as co-owners of their business are
ways referred to as
C. taking something away to create A. dual entrepreneurs
something simpler or better B. corporate dropouts
D. All of the above C. corporate cast-offs
196. Which of the following is probably the D. copreneurs
LEAST important factor in becoming an en-
202. Which one of the following is not a sim-
trepreneur?
ple way by which small businesses can be
A. living in a major U.S. City socially responsible?
B. having special skills and abilities A. Encourage reinventing

B. Support local fundraisers 209. Legal standards are barriers thatmanage-

C. Join in community service ment must overcome toaccomplish what it
wants is explanation for moral manage-

D. Reduce energy usage ment
203. All entrepreneurship opportunities A. True
emerge from inventions and innovations.
B. False
A. True
210. Decision-making:is less formal and more
B. False
personalized
204. Business ideas can come from A. True
A. books and magazines B. False
B. business experiences
211. Lack of commitment / Inability to Com-
C. hobbies and interests mit are some mistakes to many owners of
D. all of these small business
205. Jonathan became an entrepreneur after A. True
he lost his job due to Covid-19. He is con- B. False
sidered as a/an
212. When done correctly, the due diligence
A. necessity-based entrepreneur
process will
B. opportunity-based entrepreneur
A. reveal both the positive and negative
206. Most business plans are updated aspects of an existing business
A. every six months B. be time consuming and expensive
B. annually C. most often result in the purchase of
C. every five years the business
D. whenever the business hires a new D. rarely prove to be beneficial

employee 213. Kelebihan Small Business Management
207. is the process of starting, organizing, and Planning
managing, and assuming the responsibility A. Nothing:)
for a business. B. Increase income
A. Business Plan C. Receive more profit from other busi-
B. Venture Capital nesses
C. Entrepreneurship D. Improve operational effectiveness
D. Long-term financing
214. What are some duties of a management
208. Money provided by large investors to fi- team?
nance new products and new businesses A. Teach employeesto fight
A. start-up financing B. Training, delegating and motivating
B. venture capital C. Run away from decisions
C. short-term financing D. Make changes without informing any-
D. long-term financing one

215. A designed change that increases the use- 221. Who is a product?
fulness of a product or service. A. Product are only profits
A. innovation B. A product is any business ideas
B. inventory C. Money that a business earns
C. customer analysis D. A product can be service or an item
D. improvement 222. The focus of which of the following step
216. All of the following are characteristics of in the creative process is to transform the
NARAYAN CHANGDER
the typical entrepreneur except idea into reality?
A. confidence in his/her ability to suc- A. Implementation
ceed B. Preparation
B. value of money over achievement C. Illumination
C. desire for immediate feedback D. Verification
D. a future orientation 223. Which of the following would NOT BE dis-
cussed in the operations plan section of a
217. essential in a factor in the beginning a life
business plan?
of a new business
A. organization of the company
A. Finance
B. sales forecasts
B. Flexible
C. human resource plans
C. Funding
D. analysis of resources needed
D. Adaptation
224. Once a business plan is written, it should
218. Which answers below are the current never be revised and should never be up-
business trends? dated.
A. IoT A. True
B. IR 4.0 B. False
C. Artificial Intelligence (AI) 225. Most of the money needed to start a new
D. KOLs / influencers business comes from
219. Many entrepreneurs own their first busi- A. the sale of stock.
ness while in their teens. B. credit given by businesses that sell
A. true products and services to the new busi-
ness.
B. false
C. bank loans.
220. Which of the following is NOT one of the D. the entrepreneur and his/her family
forces driving the entrepreneurial trend in and friends.
our country?
226. Many small businesses fail simply be-
A. Shift away from a service economy.
cause they are not located in the right
B. Independent lifestyle. spot.
C. International opportunities. A. True
D. E-commerce and the World Wide Web. B. False

227. Which of the following is not a common 232. How much does Afiq Daniel’s Frozen
reason for the failure of small businesses? Curry sell for each packet?

A. A lack of sufficient start-up money A. RM7.00
B. Shortage of skilled workers B. RM30.00
C. lack of management experience C. RM6.00
D. failure to manage credit offered to cus- D. RM2.6 billion
tomers
233. A designed change that increases the use-
228. According to the SBA, a small business is fulness of a product, services, or process
an independent business with fewer than
employees. A. innovation
A. 10 B. invention
B. 50 C. improvement
C. 100 D. entrepreneur
D. 500 234. Successful entrepreneurs tend to have all
of the following characteristics EXCEPT
229. According to the one should “treat other
people the way you would like them to A. energetic.
treat you.” B. goal-oriented.
A. television test
C. creative.
B. utilitarian principle
D. hesitant.
C. family test
235. Which of the following would be an ex-
D. golden rule
ample of revenue for a business?
230. SWOT stands for (choose more than one A. Paying rent
answer)
B. Selling a product
A. Strengths
C. Paying for utilities
B. Weaknesses
D. Buying supplies to make your product
C. Observation
D. Threats 236. Which situation would result in a busi-
ness having a profit?
231. Professional, scientific, and services A. If the owner buys matching uniforms
account for the largest percentage of small
businesses in the Untied States. B. If the revenue is less than the ex-
penses
A. agricultural
C. If the revenue is greater than the ex-
B. technical
penses
C. logistical
D. If the owner buys coffee for the em-
D. architectual ployees every morning

237. What is an entrepreneur? stress of their jobs, and the overbearing

policies of their employers. They have de-
cided to leave their six-figure jobs and to-
gether open a guide service in Wyoming.
Melinda and John are examples of
A. corporate castoffs and corporate
dropouts
B. corporate dropouts and copreneurs
NARAYAN CHANGDER
A. A person who is in charge of a specific C. corporate castoffs and copreneurs
location. D. copreneurs and serial entrepreneurs
B. A person who works for someone else
242. The three “R’s” of socially responsible
in order to learn skills.
business are “reuse, “ “recycle, “ and “
C. A person who organizes and operates
A. reenergize
a business or businesses.
B. reinvent
D. None of these
C. reduce
238. Choose the correct answer about Formula
in small business D. retrofit
A. The small business formula is a pro- 243. If you start a new business, you need in-
gram for planning business in the future formation about
B. This formula uses the information in A. competitors.
the income statement to determine the
B. government regulations.
point at which your company starts mak-
ing a profit. C. customers.
C. Of the Formula Math? D. all of the choices listed
D. Formula is a formulaic plan to develop 244. The majority of small business owners
a small business are
239. High failure rate are mistakes to many A. under 40 years old.
owners of small businesses B. over 40 years old.
A. True C. under 25 years old.
B. False D. over 75 years old.
240. thinking is the ability to see differences 245. Mind mapping is a useful tool for jump-
A. Divergent; convergent starting creativity. It includes all of the
B. Convergent; divergent following except
C. Convergent; transformational A. sketching a picture to symbolize the

problem or area of focus in the center of
D. None of the above a sheet of paper
241. Melinda and John Perez, both corporate B. writing down every idea that comes
attorneys in New York City, have grown into your mind, connecting each idea to
tired of their lengthy daily commute, the the central picture

C. allowing your mind to rest for a few C. invention

minutes before integrating the ideas D. profit

D. forcing creativity when ideas start to
trickle 251. Potential drawbacks of entrepreneurship
may include
246. Entrepreneurs Create Business Ideas
A. uncertainty of income, risk, long hours,
through (you may choose more than one
and high stress
answer)
B. uncertainty of income, risk, easy
A. Listen
hours, and frequent vacations
B. Observe
C. uncertainty of income, risk, long hours,
C. Analyze and the immediate accumulation of wealth
D. Copy D. certainty of income, risk, long hours,
247. Which of the following statements about and high stress
business plans is not true? 252. Pilot test is a preliminary run of a busi-
A. owners of successful businesses usu- ness, sales effort, program, or Web site
ally develop and follow a business plan with the goal of assessing how well the
B. business owners can hire someone to overall approach works and what prob-
develop their business plan lems it might have.
C. business plans should not be revised A. True
nor updated B. False
D. developing a business plan forces own-
253. Entrepreneurs who repeatedly start busi-
ers to thing about activities, time require-
nesses and grow to a sustainable size be-
ments, and costs
fore striking out again are known as en-
248. About how many new businesses are cre- trepreneurs.
ated in the U.S. every year? A. opportunistic
A. 0.7 million B. persistent
B. 6 million C. serial
C. 14 million D. classic
D. 22 million
254. Which element of a business plan dis-
249. How many Popiah Crispy flavors are cusses the entrepreneur’s short-and long-
there? term goals for the business?
A. 6 A. financial plan
B. 8 B. description of the competition
C. 2 C. description of the business
D. 10 D. customer analysis
250. Every business begins with a(n) 255. New businesses are often discontinued
A. idea because of
B. customer A. low sales

B. competitive pressure 262. The business idea, ownership structure,

C. higher than expected expenses and the business’s long-term goals are dis-
cussed in this section of a business plan.
D. all of these
A. financial plan
256. A government agency that helps en- B. marketing plan
trepreneurs develop business plans and ob-
tain financing. C. operations plan
A. Service Corps of Retired Executives D. description of the business
NARAYAN CHANGDER
B. Entrepreneurs of America 263. They act as competitors to larger firms
C. Small Business Administration which will help improve their efficiency
and lower the prices offered to the con-
D. International Trade Administration sumers.
257. The source of owner-supplied money de- A. Advantage
pends on the business’s ownership struc- B. Disadvantage
ture. In a(n) , one person will supply
the money. 264. The part of a business plan that discusses
sales forecasts and the location and num-
A. partnership
ber of potential patrons
B. proprietorship
A. cutomer analysis
C. corporation
B. description of competition
D. franchise
C. inventory
258. It is best to start a business when de- D. improvement
mand for its products and services is high.
265. choosing the right business partners is a
A. True
critical success factor for new businesses.
B. False
A. Work Place
259. The most important step in starting a B. Workforce
business is developing confidence.
C. Location
A. true
D. Work
B. false
266. Below are the advantages of start-ups,
260. Personal characteristics of successful en- EXCEPT:
trepreneurs include A. Begin with a clean slate
A. persistence B. Use the most up-to-date technologies
B. recklessness C. Can be kept small deliberately to limit
C. greed the magnitude of possible losses
D. pessimism D. No initial name recognition
261. Many small businesses fail simply be- 267. Example of action that are legal but un-
cause the owners do not keep adequate ethical is steal to give homeless people
records. foods.
A. true A. True
B. false B. False

268. Entrepreneurs tend to be overly opti- C. executive

mistic; personal into business. D. inventor

A. optimistic; personal
271. In comparison to large businesses, small
B. optimistic; financial businesses
C. pessimistic; financial
A. can usually charge lower prices
D. optimistic; professional
B. can provide more personalized cus-
269. A written description of a business idea tomer service
and how it will be carried out is called a(n) C. focus on products that meet the needs
of a large group
A. Articles of Incorporation D. have less frequent contact with their
B. Business Plan customers
C. Policies and Procedures 272. Actions that are legal, however, may not
D. Mission Statement be
270. Someone who takes a risk in starting a A. ethical

business to earn a profit is known as a(n) B. complex
A. administrator C. profitable
B. entrepreneur D. doable

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