1. What is the concept of “entrepreneurial sickness” in small businesses?
a) A contagious illness affecting entrepreneurs
b) The negative impact of excessive stress on entrepreneurs’ health
c) Lack of motivation among employees in small businesses
d) Failure to adapt to changing market conditions
Answer: b) The negative impact of excessive stress on entrepreneurs’ health
Explanation: Entrepreneurial sickness refers to the physical and mental health challenges faced by entrepreneurs due to the stress and pressure of running a business.
2. What is the magnitude of entrepreneurial sickness in small businesses?
a) It affects only a small percentage of entrepreneurs
b) It is a widespread issue impacting a significant portion of entrepreneurs
c) It is limited to specific industries
d) It does not exist in small businesses
Answer: b) It is a widespread issue impacting a significant portion of entrepreneurs
Explanation: Entrepreneurial sickness affects a considerable number of entrepreneurs across various industries due to the demanding nature of business ownership.
3. What are some common causes of entrepreneurial sickness?
a) Lack of financial resources
b) Overwork and burnout
c) Healthy work-life balance
d) Strong support network
Answer: b) Overwork and burnout
Explanation: Overwork and burnout resulting from the pressure of running a business are primary causes of entrepreneurial sickness.
4. What are potential consequences of entrepreneurial sickness?
a) Increased productivity
b) Enhanced creativity
c) Decreased business performance
d) Improved decision-making
Answer: c) Decreased business performance
Explanation: Entrepreneurial sickness can lead to decreased business performance due to impaired decision-making and productivity.
5. What are corrective measures to address entrepreneurial sickness?
a) Implementing work-life balance initiatives
b) Increasing workload
c) Ignoring the issue
d) Promoting stress-inducing work environments
Answer: a) Implementing work-life balance initiatives
Explanation: Encouraging work-life balance through initiatives such as flexible schedules and wellness programs can help alleviate entrepreneurial sickness.
6. What are business incubators primarily designed for?
a) Supporting large corporations
b) Providing support and resources to startups and small businesses
c) Offering medical assistance to entrepreneurs
d) Hosting social events for entrepreneurs
Answer: b) Providing support and resources to startups and small businesses
Explanation: Business incubators offer support, resources, and guidance to startups and small businesses to help them grow and succeed.
7. What is the role of government policy in supporting small-scale enterprises?
a) Impeding their growth
b) Providing regulatory barriers
c) Offering financial incentives and supportive measures
d) Ignoring their existence
Answer: c) Offering financial incentives and supportive measures
Explanation: Government policies often include financial incentives and supportive measures to encourage the growth and development of small-scale enterprises.
8. Which of the following is a growth strategy in small industries involving collaboration with other businesses?
a) Contraction
b) Diversification
c) Downsizing
d) Subcontracting
Answer: d) Subcontracting
Explanation: Subcontracting involves collaborating with other businesses to fulfill specific tasks or projects, which can facilitate growth in small industries.
9. What does expansion involve as a growth strategy in small industries?
a) Decreasing market share
b) Reducing production capacity
c) Increasing operations, markets, or products
d) Maintaining the status quo
Answer: c) Increasing operations, markets, or products
Explanation: Expansion in small industries involves increasing operations, entering new markets, or introducing new products or services to grow the business.
10. What is a joint venture as a growth strategy in small industries?
a) A solo business endeavor
b) A partnership between two or more businesses for a specific project or purpose
c) A strategy to downsize operations
d) An individual retirement plan
Answer: b) A partnership between two or more businesses for a specific project or purpose
Explanation: A joint venture involves two or more businesses collaborating for a specific project or purpose to achieve mutual benefits and growth in small industries.