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1. (p. 150) Entrepreneurship involves accepting the risk of starting and running a business.
2. (p. 150) Entrepreneurship is another name for management.
3. (p. 150) Entrepreneurs are less important now than in the past to the U.S. economy.
4. (p. 150) People who are 16 to 34 years old are not attracted to starting their own business.
5. (p. 150) While entrepreneurs frequently earn significant profits for themselves, their impact on society is quite
small.
6. (p. 150) Many business started by entrepreneurs have grown into major corporations employing thousands of
workers.
7. (p. 151) Entrepreneurs are motivated by the desire to earn a profit.
8. (p. 151) Entrepreneurs, like gamblers, enjoy taking risks.
9. (p. 151) Most entrepreneurs prefer working for someone else.
10. (p. 151) Most entrepreneurs are more interested in personal achievement than in power.
11. (p. 151) If you have managerial skills and leadership ability, you also posses the personality to be an
entrepreneur.
12. (p. 151) 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. (p. 151) Successful entrepreneurs rely on others for direction and support.
14. (p. 152) Successful entrepreneurs accept the risk of failure.
15. (p. 152) Entrepreneurs avoid risk and place a high priority on security.
16. (p. 151) It is important for an entrepreneur to be highly energetic.
17. (p. 152) Most entrepreneurs get the ideas for their products and services from a flash of inspiration.
18. (p. 154, figure 6.1) Potential entrepreneurs would be well advised to surround themselves with people who are
smarter than they are.
19. (p. 154, figure 6.1) Potential entrepreneurs should consider working for other people first and learning on the other
person’s money.
20. (p. 154) A team may be better than an individual entrepreneur because team members can combine creative
skills with production and marketing skills from the beginning.
21. (p. 154) An entrepreneurial team is a group of experienced managers who share the same skills and abilities.
22. (p. 152) Successful entrepreneurs will look for what customers don’t need as well as what customers do need.
23. (p. 154) Entrepreneurial teams combine the creative marketing and production ideas of a group of experienced
people.
24. (p. 154) Entrepreneurial teams struggle to blend creative business skills with production and marketing skills.
25. (p. 154) Successful entrepreneurs often make use of professional managers to introduce new ideas.
26. (p. 154) Micropreneurs is a term used to describe entrepreneurs who focus on the continued growth of their
businesses.
27. (p. 154) The most important difference between entrepreneurs and micropreneurs is the focus placed by
micropreneurs on balancing the demands of work and family.
28. (p. 154) 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.
29. (p. 154) Many micropreneurs are home-based business owners.
30. (p. 154) Micropreneurs are motivated by a desire to have both a satisfying family life and rewarding work.
31. (p. 155) Advancements in computer technology put home-based businesses at a disadvantage.
32. (p. 154) Many micropreneurs operate home-based businesses in the service industry.
33. (p. 155) Corporate downsizing reduces the opportunities for home-based businesses.
34. (p. 155) Society is much more accepting of home-based entrepreneurs than in the past.
35. (p. 155) Opponents of home-based businesses successfully lobbied Congress to reduce the tax deductions
available for home offices.
36. (p. 155–156) Successful micropreneurs require self-discipline to separate work from family responsibilities.
37. (p. 156) Micropreneurs are exempt from the local ordinances that restrict home-based businesses from
operating in residential areas.
38. (p. 155) One advantage enjoyed by home-based businesses is the relative ease in attracting new customers.
39. (p. 155) Home-based entrepreneurs may lose their homeowner’s insurance if they run a business from their
home.
40. (p. 156) Small businesses have not significantly participated in web-based online sales.
41. (p. 158) The Internet provides a resource for entrepreneurs for information regarding the steps needed to take
their business online.
42. (p. 158) Web-based businesses avoid the risk of failure faced by traditional startup businesses.
43. (p. 158) An intrapreneur is the creative person who starts and manages a nonprofit organization.
44. (p. 158) Creative people working as entrepreneurs within a large organization are called intrapreneurs.
45. (p. 158) Entrepreneurial spirit is unique to a small business environment.
46. (p. 158) Large organizations encourage intrapreneurship as a strategy to improve their profitability through
new products.
47. (p. 159) By passing the Immigration Act of 1990, the U.S. government acted to encourage entrepreneurs to
immigrate to the United States.
48. (p. 159) The U.S. government offers “investor visas” to attract more entrepreneurs.
49. (p. 159) The position of our government is to restrict foreign entrepreneurs from operating within the U.S.
50. (p. 159) Business incubators provide assistance to established companies attempting to generate foreign sales.
51. (p. 159) Enterprise zones offer lower tax rates and government assistance to attract private business
investment.
52. (p. 151) While many immigrants possess the skills to work in large organizations, they lack the motivation to
succeed as entrepreneurs.
53. (p. 151) Independence, challenge, and opportunity are among the key reasons given by those who assume the
risks of entrepreneurship.
54. (p. 151) Successful entrepreneurs are exclusively motivated by the desire to become rich.
55. (p. 151) Although corporate managers often exhibit the skills required of successful entrepreneurs, they seldom
have the desire to give up the perks and fringe benefits of corporate life and start their own business.
56. (p. 151) Juanita has a strong desire to operate her own business. Although she admits it would be nice to earn a
healthy profit, her primary motivation is the excitement and challenge of starting and running a business.
Juanita’s attitude is unusual for entrepreneurs, who usually focus solely on the monetary aspects of their
entrepreneurship, as well as the opportunity to acquire power and prestige.
57. (p. 151) Ramsey is a dreamer rather than a doer. This is an important attribute for an entrepreneur since their
job is to be creative and develop new ideas that are then implemented by others.
58. (p. 152) Jaquanda has eliminated the risk of entrepreneurship by preparing a detailed business plan.
59. (p. 151) To be successful, entrepreneurs are dependent on the support of others for advice and encouragement.
60. (p. 154) Jason, Robin, and Ian currently work in the marketing department of a large corporation. They have
similar backgrounds and training, and are thinking about leaving their company to start their own business.
Successful entrepreneurial teams are comprised by these types of people because their similarities ensure
harmony and consistency in their new business.
61. (p. 154) Entrepreneurial teams increase the cooperation between marketing, production and other functional
areas of a business venture
62. (p. 154) Anthony is an employee of a textbook publisher. However, his desire is to establish a home-based
business providing his services to a variety of publishers. Anthony’s primary motivation is to escape the 9 to 5
world of corporate publishing and to enjoy the opportunity of working for himself. Anthony is an example of a
micropreneur.
63. (p. 158) Kylie is employed by Street Wheels, a large corporation that produces accessories for scooters,
bicycles, and other children’s vehicles. She is a creative force within the company and has helped launch several
new successful products. Kylie is an example of an intrapreneur.
64. (p. 157, figure 6.3) Jon received a letter in the mail explaining that HE COULD EARN THOUSANDS!!!! by
working just a few hours from home. Most likely Jon’s letter was a work-at-home scam.
65. (p. 159) The United States government views entrepreneurship as a result of an individual’s self-motivation.
The government, therefore, can do very little to encourage an individual to become an entrepreneur.
66. (p. 159) When Kelsey began the Cookie Kitchen recently she was able to go to a small business center to get
help with accounting, legal advice, and secretarial help for a very low cost. Using this center helped her
company to survive because it provided assistance just as her company was beginning. This type of center is
called an incubator.
67. (p. 159) Within a government-established enterprise zone, the government creates new startup business
organizations that are later sold to private investors.
68. (p. 160) The management of a nonprofit organization is much the same as the management of small and large
businesses.
69. (p. 160) To be classified as a small business, a firm must have no more than 100 employees.
70. (p. 160) According to the Small Business Administration’s definition, small businesses must be independently
owned and operated.
71. (p. 160) A business is considered small by comparing its size to others in the same industry.
72. (p. 160) Small businesses create 75% of the new jobs in the United States.
73. (p. 160) Small businesses account for over 50% of the gross domestic product (GDP) in the United States.
74. (p. 160) As a result of unfair treatment in the past, the growth of minority-owned business is slower than the
rest of the population.
75. (p. 160) Women now own more than 6 million small businesses.
76. (p. 160) Of all nonfarm businesses in the United States, almost 97 percent are considered small by the Small
77. (p. 161) Large firms have a greater ability to provide personalized customer service than do small business
organizations.
78. (p. 161) Big businesses don’t serve all the needs of the market.
79. (p. 161, Spotlight on Small Business box) Entrepreneurial success can be achieved in the inner city.
80. (p. 161, Spotlight on Small Business box) Latinos make up the largest percentage of inner-city entrepreneurs when
compared to African-Americans, Asians, and American Indians.
81. (p. 162) Conventional wisdom reports that a third of all small businesses fail in their first four years of
operation.
82. (p. 162) The good news for entrepreneurs is that business failures are much lower than has traditionally been
reported.
83. (p. 160) The principles of managing vary according to the size of the business.
84. (p. 162) The most common small business failures occur in businesses that are the easiest to start.
85. (p. 160) Only about 10% of all businesses qualify as small businesses using the definition of the Small
Business Administration.
86. (p. 160) About 80 % of Americans find their first jobs in small businesses.
87. (p. 160) The number of women owning small businesses has grown slowly.
88. (p. 162) The small business sector that has the best chance of significant growth is legal services.
89. (p. 161) Small businesses often can provide more personalized customer service than bigger rivals.
90. (p. 162) Recent evidence suggests that the small business failure rate is significantly much higher than
previously reported.
91. (p. 162, figure 6.4) Bad luck is the most often reported cause for small business failure.
92. (p. 162) The business opportunities with the greatest growth potential tend to be in the high technology
industries.
93. (p. 162) The easiest businesses to start are those that offer the greatest profit potential.
94. (p. 162) Most business opportunities offer entrepreneurs high levels of security and profits.
95. (p. 162) The easiest businesses to start also have the least growth potential and the greatest failure rates.
96. (p. 160) While the first job for many people is working for a small business, most of the permanent new jobs
are created by larger corporations.
97. (p. 160) Marina has just completed her business degree. Her best job search strategy would be to concentrate
on looking for work with a major corporation.
98. (p. 160) Renee, a manager at a small manufacturing firm, has offered to help manage a local branch of the
YMCA. Unfortunately, Renee will find that the skills acquired managing a small business will not be useful in
managing a nonprofit organization.
99. (p. 161) A close look at the statistics indicates that the lack of qualified workers is a major obstacle to the
growth of successful small businesses.