Small Business Management and Entrepreneurship MCQs

Small Business Management and Entrepreneurship MCQs

Try to answer these 30+ Small Business Management and Entrepreneurship MCQs and check your understanding of the Small Business Management and Entrepreneurship subject. Scroll down and let's begin!

1: Entrepreneurship is the process of _____ opportunities for which marketable needs exist and assuming the risk of creating an organization to satisfy them.

A.   Identifying

B.   Conceal

C.   Distinguish

D.   All of the above

2: Entrepreneurship process is the stage of a business’s life that involves _____ of the business.

A.   Innova-tion

B.   Triggering event

C.   Implementation

D.   All of the above

3: Environmental factors are the forces that occur _____ of the business that affect the business and its owner.

A.   Outside

B.   Inside

C.   Within

D.   Both b and c

4: Achievement of a critical mass in the business is known as Growth.

A.   True

B.   False

5: Growth in a business is achieved when:

A.   Achievement of a critical mass

B.   Adequate living for owner and family provided

C.   Enough remains to keep the business going

D.   All of the above

6: Harvest is the stage when the owner removes him- or herself from the business.

A.   True

B.   False

7: Implementation is the part of the entrepreneurial process that occurs when the organization is _____.

A.   In process

B.   Formed

C.   Both a and b

D.   None of the above

8: An agreement in which the owner of intellectual property grants _____ permission to produce that product.

A.   Another person

B.   Another company

C.   Both a and b

D.   None of the above

9: Locus of control is a person’s belief concerning the degree to which _____ forces control his or her future.

A.   Internal

B.   External

C.   Both a and b

D.   None of the above

10: A person’s belief concerning the degree to which internal or external forces control his or her _____.

A.   Future

B.   Past

C.   Present

D.   All of the above

11: Maturity is the length of time in which a loan must be repaid.

A.   True

B.   False

12: Need to achieve the personal quality, linked to entrepreneurship, of being motivated to excel and choose situations in which success is likely.

A.   True

B.   False

13: Producing products under its own company’s name is called Private-label Manufacturing.

A.   True

B.   False

14: Product is a ?

A.   Tangible good

B.   Intangible service

C.   Combination of both

D.   All of the above

15: Small business management is the ongoing process of _____ an established business.

A.   Owning

B.   Operating

C.   Running

D.   All of the above

16: Small business management process is the stage of a business’s life that involves _____.

A.   Growth

B.   Maturity

C.   Harvest

D.   All of the above

17: Triggering event is a specific _____ that sparks the entrepreneur to proceed from thinking to doing.

A.   Event

B.   Occurrence

C.   Incident

D.   All of the above

18: A specific event or occurrence that sparks the entrepreneur to proceed from _____.

A.   Thinking to doing

B.   Doing to thinking

C.   Failure to doing

D.   Resting to doing

19: When a small business is sold to another business, the business is considered in the ______ stage.

A.   Implementation

B.   Growth

C.   Maturity

D.   Harvest

20: Entrepreneurs are ______.

A.   Willing to take risks for large payouts

B.   Able to see trends in the market and capitalize on them

C.   Strong leaders who can develop teams and optimize structure

D.   Able to set different strategies for different product lines

21: Environmental factors have what impact on a business?

A.   The business innovates due to environmental factors.

B.   The business must address different factors at different phases of growth.

C.   The business can ignore more environmental factors as the business does not have a significant impact on the industry.

D.   The business must always address all the environmental factors.

22: Entrepreneurs ______ the business, and small business managers ______ the business.

A.   Create; implement

B.   Innovate; harvest

C.   Create; grow

D.   Innovate; manage

23: At what stage of the entrepreneurial process is risk highest?

A.   Innovation

B.   Trigger event

C.   Growth

D.   Implementation

24: Which statement best typifies the essence of the entrepreneurship process?

A.   Innovation, implementation, and growth

B.   Innovation, trigger event, and implementation

C.   Trigger event, implementation, and growth

D.   Innovation, trigger event, and growth

25: During the growth stage of a small business, what is the owner focusing on?

A.   Specializing in what the company does best.

B.   Developing functional areas of marketing, finance, or HR.

C.   Creating structure and building teams.

D.   Developing new products for the business.

26: A person who is good at setting goals and likes to challenge their skills and problem-solving abilities has what trait?

A.   Internal locus of control

B.   Determination

C.   Need to achieve

D.   Passion for work

27: ______ skills are important in the implementation process, while ______ skills are important once the business has been created.

A.   Entrepreneurship; management

B.   Management; entrepreneurship

C.   Management; leadership

D.   Entrepreneurship; team building

28: When a business has a loyal group of customers and is considered successful, the business is in the ______ stage

A.   Implementation

B.   Growth

C.   Maturity

D.   Harvest

29: The innovation process starts with ______.

A.   Researching a new product idea

B.   Developing a prototype

C.   An in-depth market assessment

D.   Conducting a pilot test for the product

30: What is the primary business goal for a small business owner?

A.   Grow the business enough to support his/her family.

B.   Grow the business in order to increase profits.

C.   Get in and get out quickly while making a large amount of money.

D.   Manage the business over a long period of time.

31: What is the biggest risk in starting your own business?

A.   Spending time away from your family due to the long hours.

B.   Not having a steady income and no income for a period of time.

C.   The psychological stress of getting the business started.

D.   Finding the right team members to get your business started.

32: Why do most people start their own businesses?

A.   They want to have control over their own destiny.

B.   They have lost their jobs and need a source of income.

C.   They are trying to balance family and work.

D.   They have an innovative business idea.

33: ______ motivates the entrepreneur to start his/her business.

A.   An innovative business idea

B.   Positive market research supporting your idea

C.   A trigger event such as losing a job

D.   Support from family and friends

34: A(n) ________ is the set of attributes-positive or negative-that people associate with a company.

A.   Emblem

B.   Logo

C.   Symbol

D.   Brand

E.   Trade name

35: ________ inventory systems are designed to maintain a running count of the items in inventory.

A.   Partial

B.   Physical

C.   Perpetual

D.   ABC