Chapter 3: The Small Business and Entrepreneurship Environment

Which of the following statements do you think is generally true, within the UK:
1. many more businesses start up each year than close
2. many more businesses close each year than start-up
3. about the same number of businesses start-up each year as close
4. we have no idea how many businesses start and close each year
5. the number of businesses that start-up and close each year varies enormously
Which of the following factors does the ‘macro-environment’ not include:
1. political and regulatory factors
2. customer needs in a given market
3. social and demographic factors
4. technological changes
5. economic conditions
Which of the following is least likely to influence the timing of new business births?
1. Government policies
2. Profitability
3. Interest rates
4. Consumer expenditure
5. Weather conditions
Storey cites eight possible factors that may lead to higher rates of new firm formation within a given geographic area. Which of the following is not one of these factors?
1. education
2. population growth
3. wealth
4. unemployment
5. housing
In which of the following countries is it comparatively most expensive to set up a new small business?
1. Germany
2. France
3. United Kingdom
Which of the following best describes the nature of a market?
1. a place where people talk to each other
2. the various organisations that produce a particular product or service
3. existing or potential customers for a given product or service
4. the firms that produce and sell products and services that are close substitutes for one another
5. the ways in which businesses reach their customers
Which of the following is usually not a barrier to market entry for a small firm?
1. economy of scale
2. good ideas
3. switching costs
4. access to distribution
5. capital requirements
Which of the following statements is false?
Electronic commerce:
1. can allow new ventures to compete on more or less equal terms with large firms
2. offers a relatively inexpensive means of advertising and conducting market and competitor research
3. can lead to small businesses having reduced contact with its customers
4. is rarely used in small businesses
5. is used in many different industries and markets
A closed business equates to a failed business. True or False?
1. true
2. false
10. Which of the following ‘forces’ are not part of the Five Forces model of industry competition?
1. Potential for entry
2. Power of suppliers
3. Power of thought
4. Power of buyers
5. Power of substitutes

Chapter 3: The Small Business and Entrepreneurship Environment

Quiz