41) Money driven and wild risk takers are both:
A) common characteristics of entrepreneurs.
B) entrepreneur’s techniques to success.
C) common misconceptions of entrepreneurs.
D) None of the above
Topic: What is an Entrepreneur?
AACSB: Communication
42) “Copreneurs” are:
A) personality traits of entrepreneurs.
B) entrepreneurial couples who work together as co-owners of their business.
C) business magazines targeted towards entrepreneurs.
D) None of the above
Topic: The Cultural Diversity of Entrepreneurship
AACSB: Reflective Thinking
43) Small businesses are those that employ:
A) more than 100 employees.
B) fewer than 20 employees.
C) fewer than 100 employees.
D) Number doesn’t matter.
Topic: The Contributions of Small Businesses
AACSB: Communication
44) Entrepreneurial success requires both persistence and ________.
A) education
B) connections
C) resilience
D) reluctance
Topic: Putting Failure into Perspective
AACSB: Communication
11
45) Which of the following is not a common characteristic of entrepreneurs?
A) Desire for responsibility
B) Business plan expertise
C) Preference for moderate risk
D) High energy level
Topic: What is an Entrepreneur?
AACSB: Communication
46) Primary cause of business failure is:
A) improper managerial attitude.
B) poor financial controls.
C) incompetent management.
D) location.
Topic: Putting Failure into Perspective
AACSB: Communication
47) To avoid business failure, an entrepreneur should:
A) know the business in depth.
B) develop a solid business plan.
C) take entrepreneurship courses.
D) Both A and B
Topic: How to Avoid the Pitfalls
AACSB: Communication
48) Forces driving the entrepreneurial trend in our economy include which of the following?
A) Technological advancement
B) Shift to a service economy
C) e-commerce
D) All of the above
Topic: Why the Boom: The Fuel Feeding the Entrepreneurial Fire
AACSB: Use of IT
12
49) Management incompetence includes all but:
A) the owner lacks the leadership ability necessary to operate it successfully.
B) lack of capacity to make the business work.
C) insufficient capital.
D) inexperience.
Topic: Putting Failure into Perspective
AACSB: Communication
50) Customer service, convenience, speed and quality are all examples of:
A) learning to manage people effectively.
B) generating more revenue.
C) small businesses.
D) setting your business apart from others.
Topic: How to Avoid the Pitfalls
AACSB: Communication
51) Drawbacks of owning a small business include all but:
A) unbalanced family life.
B) no guarantee that the business would make profits.
C) too many financial statements.
D) Both A and B
Topic: The Potential Drawbacks of Entrepreneurship
AACSB: Communication
52) Joanne is thinking about running her own business. What risks does she face?
A) Getting stuck in a job she hates
B) Having to deal with more government regulation than if she were a manager in a larger
company
C) Having less status in society, as most people do not respect small business owners
D) Losing her entire invested capital
Topic: The Potential Drawbacks of Entrepreneurship
AACSB: Reflective Thinking
13
53) The average small business owner works ________ hours per week.
A) 39.5
B) 54
C) 40
D) 80
Topic: The Potential Drawbacks of Entrepreneurship
AACSB: Reflective Thinking
54) Launching and running a business can be an extremely rewarding experience, but it also can:
A) be highly fun.
B) bring a steady paycheck.
C) be stressful.
D) not be rewarding at all.
Topic: The Potential Drawbacks of Entrepreneurship
AACSB: Communication
55) Starting a part-time business is a popular gateway to entrepreneurship.
Topic: The Cultural Diversity of Entrepreneurship
AACSB: Communication
56) Entrepreneurship has become mainstream.
Topic: Introduction
AACSB: Communication
57) Entrepreneurs are people who grow existing businesses by careful management of existing
resources.
Topic: What is an Entrepreneur?
AACSB: Communication
58) Entrepreneurs are noted for their ability to bounce back after a business failure.
Topic: Putting Failure into Perspective
AACSB: Communication
14
59) Entrepreneurial success requires little more than a good idea for a product or service.
Topic: How to Avoid the Pitfalls
AACSB: Multicultural and Diversity
60) One hallmark of true entrepreneurs is their ability to adapt to the changing demands of their
customers and businesses.
Topic: What is an Entrepreneur?
AACSB: Analytic Skills
61) Entrepreneurs tend to have a low tolerance for ambiguity.
Topic: What is an Entrepreneur?
AACSB: Communication
62) Research has isolated a set of characteristics that can predict who will succeed as an
entrepreneur.
Topic: What is an Entrepreneur?
AACSB: Communication
63) Studies indicate that the opportunity to make a difference is a significant benefit in the eyes
of most entrepreneurs.
Topic: The Benefits of Owning a Small Business
AACSB: Communication
64) The opportunity to reap unlimited profits is the primary motivator for most entrepreneurs.
Topic: The Benefits of Owning a Small Business
AACSB: Communication
65) Entrepreneurs usually experience greater income stability running their own businesses than
they did in their corporate careers.
Topic: The Potential Drawbacks of Entrepreneurship
AACSB: Communication
15
66) Many entrepreneurs discover they work fewer hours (less than 45 hours a week) as new
business owners than they did as middle managers in large corporations.
Topic: The Potential Drawbacks of Entrepreneurship
AACSB: Communication
67) It is common to experience a lower quality of life during a business start-up than after the
business is established.
Topic: The Potential Drawbacks of Entrepreneurship
AACSB: Multicultural and Diversity
68) Entrepreneurs can outsource many of the operations of their companies.
Topic: Why the Boom: The Fuel Feeding the Entrepreneurial Fire
AACSB: Multicultural and Diversity
69) In today’s economy, entrepreneurs are seen as heroes.
Topic: Why the Boom: The Fuel Feeding the Entrepreneurial Fire
AACSB: Communication
70) Advances in technology available to entrepreneurs permit them to move into manufacturing
and compete directly with Fortune 500 companies.
Topic: Why the Boom: The Fuel Feeding the Entrepreneurial Fire
AACSB: Use of IT
71) Companies started by women tend to be smaller than those started by men.
Topic: The Cultural Diversity of Entrepreneurship
AACSB: Multicultural and Diversity
72) Immigrant entrepreneurs tend to arrive in the United States with less education and
experience but more drive and access to capital through their “ethnic” connections.
Topic: The Cultural Diversity of Entrepreneurship
AACSB: Multicultural and Diversity
16