Test Bank for Small Business Management, 20th Edition by Longenecker

Chapter 01 - The Entrepreneurial Life
The Entrepreneurial Life
True / False

1. The universally accepted definition of the term small business is based solely on the number of people employed by the
firm.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-2 Small Business and Entrepreneurship
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: LONG.SMAL.23.01.02 - LO: 1-2
NATIONAL STANDARDS: United States - BUS PROG: Promotion
United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
TOPICS: Creation of Value
KEYWORDS: Bloom's: Understand
DATE CREATED: 11/12/2021 6:41 PM
DATE MODIFIED: 4/1/2022 9:56 AM

2. There is no single definition of entrepreneurship.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-2 Small Business and Entrepreneurship
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: LONG.SMAL.23.01.02 - LO: 1-2
NATIONAL STANDARDS: United States - BUS PROG: Promotion
United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
TOPICS: Creation of Value
KEYWORDS: Bloom's: Understand
DATE CREATED: 11/12/2021 6:41 PM
DATE MODIFIED: 4/1/2022 9:56 AM

3. An entrepreneur who bootstraps would resort to bartering or using a personal credit card.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-2 Small Business and Entrepreneurship
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, QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: LONG.SMAL.23.01.02 - LO: 1-2
NATIONAL STANDARDS: United States - BUS PROG: Promotion
United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
TOPICS: Operations Management
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 6:41 PM
DATE MODIFIED: 4/1/2022 9:57 AM

4. Entrepreneurs should avoid hiring mediocre people.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-2 Small Business and Entrepreneurship
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: LONG.SMAL.23.01.02 - LO: 1-2
NATIONAL STANDARDS: United States - BUS PROG: Promotion
United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
TOPICS: Operations Management
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 6:41 PM
DATE MODIFIED: 4/1/2022 9:58 AM

5. Research departments of big businesses tend to focus on innovating and creating new products.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-3 Can a Small Company Really Compete with Big Companies?
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: LONG.SMAL.23.01.03 - LO: 1-3
NATIONAL STANDARDS: United States - BUS PROG: Promotion
United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
TOPICS: Operations Management
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 6:41 PM
DATE MODIFIED: 4/1/2022 9:58 AM

6. Managers who buy out founders of existing firms may be classified as second-stage entrepreneurs.

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