190. (p. 150) An entrepreneur:
A. manages businesses for others.
191. (p. 150) The importance of entrepreneurs to our economy is found in their:
D. ability to influence national macroeconomics polices.
192. (p. 151) Which of the following would be helpful in explaining why individuals accept the risks of business
ownership?
D. the desire to work fewer hours
193. (p. 151) Which of the following is a characteristic of successful entrepreneurs?
A. power-seeking
194. (p. 154) A group of experienced people from different areas of a business joined together to develop, produce,
and market a new product is known as a(n):
D. managerial task force.
195. (p. 152) Entrepreneurs don’t always focus on what customers need. They also look for:
D. what government agency will provide financial assistance with income taxes.
196. (p. 154) An entrepreneurial team consists of:
D. representatives from management, labor, and the government who work together to solve a company’s
problems in a creative way.
197. (p. 154-155) Individuals motivated to start a home-based business allowing them to balance the demands of
business and family are called:
A. entremanures.
198. (p. 154) Nearly half of home-based businesses are in:
D. manufacturing.
199. (p. 154, figure 6.1) Sound advice for potential entrepreneurs includes:
A. save lots of money as you will need it to learn your new business.
200. (p. 155) Which of the following is a reason given for the growth of home-based businesses?
D. favorable shift in social attitudes toward working for a large corporation.
201. (p. 155-156) One challenge of working at home is:
D. using a computer to give the feel of a large business to a small one.
202. (p. 158) Web-based businesses have:
D. usually started as divisions of large corporations.
203. (p. 156) In 2005 online sales in the U.S. reached:
A. $500 million
204. (p. 158) A creative person working within a corporation to launch new products and generate new profits is
known as a(n):
A. arbitrator.
205. (p. 158) The goal of an intrapreneur is to:
D. break up an inefficient big firm into a group of smaller, more efficient business organizations.
206. (p. 159) One feature of the Immigration Act of 1990 was the:
D. exchange program that allows American entrepreneurs to live in Europe temporarily in order to open up
foreign branches for their businesses.
207. (p. 159) Enterprise zones are areas which:
D. are characterized by government ownership of small businesses.
208. (p. 159) Business incubators are government-funded facilities intended to:
D. assist foreign investors in identifying business opportunities in the U.S.
209. (p. 150) Historically entrepreneurs in the U.S. have:
D. played an important role, but are less important now in creating jobs and wealth.
210. (p. 151) An examination of the reasons given by people willing to accept the risks of entrepreneurship
indicates that:
D. contrary to popular opinion, most entrepreneurs are not interested in personal achievement.
211. (p. 151) Successful entrepreneurs are self-nurturing. This means they:
A. look to others for strength and encouragement.
212. (p. 154) Effective entrepreneurial teams require a blend of:
D. risk tolerance, debt financing, and international experience.
213. (p. 154) In an entrepreneurial team, who is responsible for the conception, development, and marketing of
products?
A. These matters are handled by the chief executive officer.
214. (p. 155) Which of the following helps explain the growth of home-based businesses?
A. Many cities regulate the type of businesses permitted in residential neighborhoods.
215. (p. 156) One characteristic of micropreneurs is a:
D. desire for receiving a paycheck rather than earning a profit.
216. (p. 158) Which of the following best describes the difference between an intrapreneur and an entrepreneur?
A. Intrapreneurs start nonprofit organizations while entrepreneurs start profit-seeking businesses.
217. (p. 158) Intrapreneurs make use of __________ to develop and launch new products and generate new
profits.
D. old ideas abandoned by entrepreneurs
218. (p. 150) Kenya recently quit a job with a large corporation to start her own business. While she realizes that
her decision comes with risk, she is excited by the chance to be independent and by the challenges of running
her own firm. Kenya is an example of a(n):
D. raconteur.
219. (p. 151) Erin developed a new type of exercise equipment she calls the Tush N’ Tone. After unsuccessfully
searching for potential investors, she arranged a personal loan and borrowed additional money from her parents.
Her willingness to continue believing in her idea and remain enthusiastic shows that Erin is:
D. not a true entrepreneur.
220. (p. 154) Apple Computer’s “smart team” is an example of a firm that succeeded by:
D. assembling a group of clever employees in order to retain their competitive advantage in the marketplace.
221. (p. 155) Lucinda recently left a large insurance firm and opened a home-based business preparing medical
transcriptions for doctors. Based on recent statistics, she can expect:
D. to find security, routine and a paycheck from her new enterprise.
222. (p. 159) Enterprise zones and investor visas are examples of:
D. examples of private initiatives to reduce the government’s role in the economy.
223. (p. 158) Ellie is a creative person who works for the Bigdome Corporation, a large producer of consumer
products. One of her primary duties is to initiate and develop new products to complement the firm’s current
product line. Evidently Ellie is a(n):
D. owner’s daughter.
224. (p. 159) Southwest College has received a government grant to establish a business incubator. This facility
will offer:
A. local government agencies assistance in obtaining funds for urban renewal.
225. (p. 158) Ketan is an intrapreneur for a multinational electronics company. As an intrapreneur Ketan:
D. will concentrate on creating new ventures that can be spun off to become independent firms.
226. (p. 160) The management of charities, government agencies, and schools is ________ the management of a
business.
D. better organized than
227. (p. 160) The Small Business Administration defines a small business as a firm that:
D. has annual receipts of more than a specified amount depending upon the industry.
228. (p. 160) Small businesses create about __________ percent of the new jobs in the United States.
A. 10
229. (p. 160) About 80% of all Americans find their first jobs in:
A. government agencies.
230. (p. 160) Which of the following is one of the fastest-growing segments of the U.S. economy in the last
decade?
A. large scale manufacturing
231. (p. 162) According to economist Bruce Kirchhoff, a misinterpretation of statistics caused the reporting of
small business failures to be:
D. indecisive.
232. (p. 161) When comparing small businesses to their larger competitors, it is clear that:
A. bigger is always better.
233. (p. 161) According to the “Spotlight on Small Business” box in Chapter 6, the inner city has certain
advantages to entrepreneurs. One such advantage is:
A. a large number of consultants nearby to help with the business.
234. (p. 162) When comparing various types of small businesses, the firms that are easiest to start tend to be those
that:
A. offer the greatest security.
235. (p. 160) Which of the following employment statistics about small businesses is true?
A. Small businesses create about 15% of all new jobs in the U.S.
236. (p. 160) According to SBA guidelines, a manufacturing firm with 1,000 employees:
D. is classified as an S corporation.
LG: 2
LL: 2
Nickels – Chapter 06 #236
237. (p. 162-163) Entrepreneurs looking for a business that gives them the best opportunity to get rich should
consider starting a business in:
D. the agriculture sector.
238. (p. 162-163) A review of small business successes and failures indicates that the:
A. businesses that are easiest to start offer the greatest potential for long term growth and profits.
239. (p. 160) As his college graduation nears, Manny has focused his attention on finding full time employment.
He has decided to narrow his job search to jobs with a major corporation. His job search strategy:
240. (p. 160) After working as a manager of a small business for several years, Connie has been offered a
management position with a local charity. If she accepts the job offer, she is likely to find that:
D. planning is less important to a nonprofit organization.
241. (p. 162-163) After considering several opportunities, Gene chose to put his entrepreneurial talents to work
starting a new manufacturing firm. This decision shows that Gene is:
D. afraid to get into a risky type of business.
242. (p. 161) As a result of corporate downsizing, Margo lost her job as the director of human resources at a major
steel producer. However, she took this opportunity to establish her own business providing temporary
employees to area businesses. Margo has likely found that:
A. going into business for yourself can quickly provide security and profits.
243. (p. 162) Dr. Smiley White just graduated from dental school. He is hoping to acquire the necessary funding to
start his own dentist’s office. One advantage of this type of business is the:
A. above average opportunity to borrow funds at a high interest rate.
244. (p. 163) A small business management course at a community college may offer entrepreneurs an opportunity
to:
D. be part of a group that will include angel investors.
245. (p. 165) One way to get into business is to buy an already existing company. The value of the business used to
determine a fair purchase price is based partly on:
D. the prospects for business competition.
246. (p. 163-164) Conversations with people who start their own business often reveal that:
D. most small business owners begin with significant personal wealth.
247. (p. 163) For prospective entrepreneurs, enrolling in an introduction to business or small business management
course offered through their community college:
D. would offer training equivalent to two years of on-the-job experience.
248. (p. 163-164) Which of the following piece of advice would an experienced business owner offer to help
someone who is thinking about starting a business venture?
D. Jump in quickly, before the market conditions change and opportunities are lost.
249. (p. 163-164) Seeking the advice of established small business owners is:
D. only helpful if the person giving the advice has been successful.
250. (p. 165) Motivated by his desire to operate his own business, Caleb is considering the purchase an existing
business. As he carefully weights this option, he is likely to find that:
D. any entrepreneur willing to sell their business is experiencing serious financial problems.
251. (p. 163-164) Carrie, a student at Metropolitan Community College, dreams of starting her own business. In an
effort to learn as much as she can about small business management, she talked to four friends who each offered
their advice. Which of these suggestions is likely to help Carrie the most?
D. Starting and managing a small business requires little more than common sense. If your idea is unique, hard
work will guarantee your success.
252. (p. 163) Conversations with small business owners before you start your own business is:
D. a possible violation of fair trade laws.
253. (p. 164-165) As a prospective entrepreneur, Gregory benefited from his experience working for an established
florist. He now feels that he is ready to start his own shop, but he lacks the necessary capital. Which of the
D. Open his business and trust that his work experience will bring him success even with insufficient capital.