Mark each of the following statements as either true or false. If the answer is true, no further comments need to be made. If the answer is false, please give an explanation of why it is false. False answers are only correct if the explanation is valid and explains the concept. Just changing the wording is not accepted.

____ 1. Two significant considerations when developing a business idea and plans are ethics and social responsibility.

_____ 2. Small businesses do not have a lot of policies and rules, so owners and employees don’t have clear cut guidelines for how to resolve ethical dilemmas.

_____ 3. Trust built with the community is a competitive advantage for small businesses over big businesses.

_____4. A characteristic of an entrepreneur is that they are not risk takers and prefer to maintain the status quo.

_____5. The definition of an entrepreneur today is that it is someone who decides to leave the corporation setting and venture out into their own business.

_____6. The major challenges facing the family business are role conflict, time management, and succession.

_____7. The best time for an entrepreneur to develop a written business plan is when they might need investors or get a business loan from the bank.

_____8. Use information developed in the job description to identify the most

important knowledge areas, skills, and abilities the ideal candidate should possess when looking for others to work with.

_____9. Today the best way for a small business owner to promote his/her business is by developing a series of advertisements in the newspaper.

_____10. Entrepreneurs tend to work long hours, so time management and stress management skills are necessary in order to achieve balance and maintain health.