Question 811 pts

Rhonda does not know how to go about finding financing for her struggling new business. Which of the following resources would be the BEST place for her to learn more about obtaining financing?

a venture capital company

a business incubator

the Small Business Administration

Entrepreneurs Organization

Service Corps of Retired Executives

Question 821 pts

One of the biggest reasons that small businesses fail is that the owner spent excessive time engaged in formal planning.

True

False

Question 831 pts

Peter has applied for a loan to purchase a franchise of a popular convenience store in an area that is experiencing rapid population growth. If the loan is approved, it will MOST likely be because ________.

there is less risk associated with a franchise than with an independent business start-up

the franchise company will provide the financing

the population growth justifies the market need for the store

the franchise company will prevent other franchisees from operating in the same area

the franchise company has influence over the bank's loan decisions

Question 841 pts

Kyle is an entrepreneur who runs his own advertising agency. He can see the whole picture of what is involved in growing his company, and he has developed a solid plan for every aspect of the business, including production, financing, and marketing. This approach to his business indicates that Kyle is a ________.

system thinker

holistic owner

visionary

producer

motivator

Question 851 pts

Credit cards are not suitable sources of long-term funding for start-up companies.

True

False

Question 861 pts

________ are private venture capital firms licensed by the Small Business Administration to make equity capital or long-term loans available to small companies.

Small Business Investment Companies

Business incubators

Entrepreneurial lenders

Angel investors

Entrepreneur organizations

Question 871 pts

Which of the following types of entrepreneurs does NOT become involved in starting his or her own business?

growth entrepreneur

intrapreneur

quasipreneur

contract entrepreneur

micropreneur

Question 881 pts

Timothy is the 60-year-old founder of a publishing company that has over $2 million in annual gross sales. Is he eligible to have a mentor through the Entrepreneurs Organization?

Yes, because his company makes more than $1 million annually.

Yes, because there are no specific requirements for mentoring.

No, because he is over 50 years old.

No, because his company can no longer be considered a start-up.

No, because his company is not currently a viable operation.

Question 891 pts

The sole purpose of the Small Business Administration is to cater to the needs of small businesses.

True

False

Question 901 pts

Which of the following is the BEST example of entrepreneurial innovation?

launching the first Starbucks store

opening a new landscaping business

buying a McDonald's franchise

providing financing for a start-up business

starting a catering company