Chapter 06 – Entrepreneurship and Starting a Small Business
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True / False Questions
1. Entrepreneurship involves accepting the risk of starting and running a business.
2. Entrepreneurship is another name for management.
3. Entrepreneurs are less important now than in the past to the U.S. economy.
4. People who are 16 to 34 years old are not attracted to starting their own business.
5. While entrepreneurs frequently earn significant profits for themselves, their impact on
society is quite small.
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6. Many business started by entrepreneurs have grown into major corporations employing
thousands of workers.
7. Entrepreneurs are motivated by the desire to earn a profit.
8. Entrepreneurs take calculated risks.
9. Most entrepreneurs prefer working for someone else.
10. Most entrepreneurs are more interested in personal achievement than in power.
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11. If you have managerial skills and leadership ability, you also posses the personality to be
an entrepreneur.
12. Because of the stress of being in business for yourself, it’s important that entrepreneurs
have people around them to help replenish their enthusiasm.
13. Successful entrepreneurs rely on others for direction and support.
14. Successful entrepreneurs accept the risk of failure.
15. Entrepreneurs avoid risk and place a high priority on security.
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16. It is important for an entrepreneur to be highly energetic.
17. Most entrepreneurs get the ideas for their products and services from a flash of
inspiration.
18. Potential entrepreneurs would be well advised to surround themselves with people who
are smarter than they are.
19. An entrepreneurial team is a group of experienced managers who share the same skills
and abilities.
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20. Entrepreneurial teams combine the creative marketing and production ideas of a group of
experienced people.
21. Successful entrepreneurs often make use of professional managers to introduce new
ideas.
22. Micropreneurs is a term used to describe entrepreneurs who focus on the continued
growth of their businesses.
23. The most important difference between entrepreneurs and micropreneurs is the focus
placed by micropreneurs on balancing the demands of work and family.
24.
Chapter 06 – Entrepreneurship and Starting a Small Business
The primary concern of micropreneurs is to balance the risk of starting your own business
with the desire to build a powerful organization earning significant profits.
25. Many micropreneurs are home-based business owners.
26. Micropreneurs are motivated by a desire to have both a satisfying family life and
rewarding work.
27. Advancements in computer technology put home-based businesses at a disadvantage.
28. Many micropreneurs operate home-based businesses in the service industry.
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39. Large organizations encourage intrapreneurship as a strategy to improve their profitability
through new products.
40. By passing the Immigration Act of 1990, the U.S. government acted to encourage
entrepreneurs to immigrate to the United States.
41. The U.S. government offers “investor visas” to attract more entrepreneurs.
42. The position of our government is to restrict foreign entrepreneurs from operating within
the U.S.
43.
Chapter 06 – Entrepreneurship and Starting a Small Business
Business incubators provide assistance to established companies attempting to generate
foreign sales.
44. A National Business Incubator Association study indicates that over 80 percent of
incubator graduates remain in business.
45. Enterprise zones offer lower tax rates and government assistance to attract private
business investment.
46. Independence, challenge, and opportunity are among the key reasons given by those who
assume the risks of entrepreneurship.
Feedback: Many factors encourage people to accept the risks associated with
entrepreneurship, including the opportunities, independence, and challenges associated with
starting and operating a business. Clearly the potential of profits is also a great motivator for
entrepreneurs.
