Question 1

The best way to learn about small business is to "bite the bullet" and start your own.

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Question 2

Kate, a manager at a small manufacturing firm, has offered to help manage a local branch of the YMCA. Unfortunately, Kate will find that the skills acquired managing a small business will not be useful in managing a nonprofit organization.

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Question 3

Since entrepreneurs are starting new businesses, experience gained from working for an established business isn't particularly helpful.

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Question 4

If you were to begin gathering information on a particular type of business, it is doubtful that a community college class would benefit your search because the information you would gain is too generic in nature.

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Question 5

You can negotiate a win-win situation by offering to manage an established small business. You win from the experience; the owner wins with free time.

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Question 6

Offering to manage an established business for a percentage of the profits plus a salary offers experience to the would-be entrepreneur and free time to the business owner.

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Question 7

If you go through the exercise of preparing a business plan, only to determine that you need twice the amount of money to start the business than you have, the SBA and other expert organizations encourage you to go ahead with your plans because if you understand the market, you can use the revenues you accrue to make up the shortfall.

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Question 8

Valerie wants to start her own small business. If her primary goal is to grow quickly and earn high profits, her best chances would be in the manufacturing sector.

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Question 9

Small businesses lack the resources to compete directly with big businesses.

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Question 10

Because of their greater financial resources and expert staffs, big corporations can almost always outperform small businesses.

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Question 11

Amir hopes to start his own business someday. He should not talk to other small business owners about his plans because they might steal his ideas.

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Question 12

If you are trying to prevent failure, it is a good idea to go into the business with good record-keeping techniques.

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Question 13

Your brother is a dentist and has opened a new practice in your hometown. As a business student you know that this type of business experiences low failure rates.

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Question 14

Many entrepreneurs got the idea for their own business from their experience of working for others.

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Question 15

Entrepreneurs are well advised to avoid starting businesses in the same market in which they were previously employed.

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Question 16

Riley worked as a floral designer at a floral shop in town before opening her own shop. This approach to the business is okay, but her time would be put to better use starting her own business.

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Question 17

Individuals wanting to learn about small business operations are advised to learn from other entrepreneurs.

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Question 18

There are several ethical considerations when starting a business, but competing against current and former work relationships is always fair game.

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Question 19

Jin Yang wants to start a small business. But he has not yet uncovered an opportunity that would offer him security and the possibility of high profits. Jin Yang will likely find that one must risk more in order to attain high profits.

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Question 20

Tessa has just graduated with a business degree. Her job hunt should only focus on large corporations.

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Quiz 6: Entrepreneurship and Starting a Small Business