AAMI Small Business Management - Study for Final Questions & Answers Already Passed!!

T or F - Three primary rewards of entrepreneurship are thought to be profit, independence, and personal fulfillment. - Answer-True T or F - Some estimate that entrepreneurs are four times less likely to be millionaires than are those who work for others. - Answer-False T of F - A refugee is a person who tried entrepreneurship, failed, and sought refuge in corporate employment. - Answer-False T or F - Entrepreneurial teams are formed by bringing together two or more persons who together function as entrepreneurs. - Answer-True T or F - A large percentage of small business owners cite their desire to be their own boss as the main reason they left their previous employers. - Answer-True T or F - Small firms are at a great disadvantage when it comes to competing based on customer service. - Answer-False T or F - The ideal age for starting a business appears to be between 40 and 50. - Answer-False T or F - Unexpectedly stumbling across a business opportunity would not be considered a precipitating event. - Answer-False Which of the following is classified as an entrepreneur? - Answer-An owner-manager who bought out the founder of a firm The size standard for small business used in this course would exclude firms that - Answer-have more than 100 employees.When a 32-year-old funeral director launches a funeral firm after seven years' experience in that industry, he - Answer-is launching his venture into small business entrepreneurship. Which of the following situations might be a precipitating event? - Answer-Getting laid off by General Motors. An entrepreneur's concern that his values continued to be reflected in the ways in which his firm conducts business after he retires is an example of the concept of ________. - Answer-entrepreneurial legacy T or F - Small businesses that practice skimming of income are acting ethically and legally. - AnswerFalse T or F - Temptations and pressures to act unethically are thought to be greater in big business than in small business. - Answer-False T or F - Small firm owners may be tempted to rationalize bribery or other unethical behavior as a way of offsetting what seems to be a competitive disadvantage. - Answer-True T or F - Better Business Bureaus serve primarily as assistants to district attorneys, helping expose corrupt business practices. - Answer-False T or F - Only large corporations can afford to be socially responsible. - Answer-False T or F - The goodwill gained from benefiting the community may be worth more than it costs. - Answer-True The Deep Pockets family was charged by the IRS with income tax fraud for failing to record the cash they collected for funeral items such as register books and acknowledgement cards. This illegal practice is known as _______. - Answer-Skimming In a small business, the most important key to ethical performance is - Answer-the personal integrity of the founder or owner.Bait advertising attempts to: - Answer-lure customers with the intention of selling them a different product. An owner of a crematory has returned from a seminar on environmentalism and wishes to act responsibly in this area. Which of the following actions will accomplish this purpose? - AnswerEliminate undesirable processing odors. An example of an industry especially vulnerable to efforts to protect the environment as it relates to waste discharge is the _____ industry. - Answer-Funeral Which of the following is not one of the basic objectives of the business plan? - Answer-It oulines the approaches other entrepreneurs have taken in the same industry. A business plan is best described as a - Answer-game plan A business plan should generally project financial and operational aspects of the proposed business for the first - Answer-three to seven years Writing a business plan should be thought of as - Answer-an ongoing process. The primary outside users of business plans are - Answer-investors and lenders The answer to the question of whether you need a business plan is - Answer-"It just depends." The process of planning and executing the development pricing, promotion, and distribution of an organization's goods/services is called - Answer-Marketing