Small Business: An Overview chapter 1

Multiple-Choice Questions

46. According to the opening Vignette, Elon Musk is an example of a

a) Franchiser

b) Serial entrepreneur

c) Corporate business owner

d) First-time entrepreneur

48. What percentage of net new jobs do small businesses create annually?

a) From 10 to 25 percent

b) From 40 to 50 percent

c) From 60 to 80 percent

d) From 85 to 100 percent

49. What percentage of businesses had a payroll with fewer than 500 people?

a) 10 percent

b) 25 percent

c) 75 percent

d) 98 percent

50. The number of people who make small business their primary occupation is which of the following?

a) 2 million

b) 6 million

c) 12 million

d) 25 million

51. Ronald Meese is the owner and operator of Meese Mining. To be considered a small business for crediting purposes, what is the maximum number of employees that Ronald can employ?

a) 50

b) 100

c) 200

d) 500

52. Industry classification codes that are based on annual sales revenue or number of employers are abbreviated as

a) NAICS

b) SIC2

c) NAIA

d) NCAA

53. Which of the following NAICS industry categories has the lowest percentage of small businesses?

a) Finance/insurance

b) Health/social services

c) Real estate/rental/leasing

d) Construction

54. The importance of classifying a business as small does notlie in which of the following areas?

a) Determining whether or not the business qualifies for a bank loan

b) Determining whether or not the business qualifies for a government set-aside program

c) Determining whether or not the business qualifies for Small Business Administration assistance

d) Determining whether or not the business qualifies for a government agency purchase

55. The industry that employs the greatest number of people in small business is which of the following?

a) Construction

b) Manufacturing

c) Retail businesses

d) Services

56. The text defines a business as small if it has any of the following characteristics except which of the following?

a) Less than 100 employees

b) Little impact on the industry

c) Independent operations, financing, and ownership

d) A major impact on the industry