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1. Approximately 600,000 new businesses are launched in the U.S. each year by entrepreneurs.
a.
True
b.
False
2. The process of initiating a business venture, gathering and organizing the appropriate resources, and assuming the
associated risks and rewards refers to entrepreneurship.
a.
True
b.
False
3. Sole proprietorships are one of the fastest growing segment of small business.
a.
True
b.
False
4. Entrepreneurs in the sustainer category are rewarded by the personal satisfaction of being business owners.
a.
True
b.
False
5. Entrepreneurs in the sustainer category like the chance to balance work and personal life and often don't want the
business to grow too large.
a.
True
b.
False
6. Entrepreneurs in the optimizer category are rewarded by the personal satisfaction of being business owners.
a.
True
b.
False
7. Optimizers are rewarded by chance to work on something new and creative.
a.
True
b.
False
8. During turbulent times, small business formation is the primary process by which an economy recreates and reinvents
itself.
a.
True
b.
False
9. China is the most entrepreneurial country, with 24 percent of individuals age 18 to 64 starting a new business.
a.
True
b.
False
10. Small businesses, according to the Small Business Administration, employ more than 90 percent of the private
workforce in the United States.
a.
True
b.
False
11. Entrepreneurship and small business in the United States is an engine for job creation and innovation.
a.
True
b.
False
12. Women and minorities who have found their opportunities limited in the corporate world are seeing intrapreneurship
as the only way to go.
a.
True
b.
False
13. Immigrants are more likely to start small businesses than native-born Americans.
a.
True
b.
False
14. Minorities show a high rate of entrepreneurship in the United States, owning 5.8 million firms in 2007 that generated
$1 trillion in revenues.
a.
True
b.
False
15. Particularly in a turbulent environment, the three most important traits of successful entrepreneurs are realism,
flexibility, and passion.
a.
True
b.
False
16. A need to achieve is a psychological characteristic that means people are motivated to excell and pick situations in
which success is likely.
a.
True
b.
False
17. Entrepreneurs are able to deal easily with delays and exhibit high levels of patience, knowing that the results will be
worth the wait.
a.
True
b.
False
18. Social entrepreneurs have a primary goal of improving society rather than maximizing profits.
a.
True
b.
False
19. Social entrepreneurs are leaders who are committed to both good business and ensuring high profitability.
a.
True
b.
False
20. Social entrepreneurship combines the creativity, business smarts, passion, and hard work of the traditional
entrepreneur with a mission to change the world for the better.
a.
True
b.
False
21. The first step in pursuing an entrepreneurial dream is to come up with a viable idea.
a.
True
b.
False
22. The most common source of new business ideas comes from in-depth understanding of an industry or profession.
a.
True
b.
False
23. A document specifying the business details prepared by an entrepreneur prior to opening a new business is known as a
business plan.
a.
True
b.
False
24. A business plan for a small business should be detailed, encompassing at least 100 pages.
a.
True
b.
False
25. Since a corporation is a legal structure reserved for large firms, small businesses have two basic choices for legal
structure of their company: proprietorship and partnership.
a.
True
b.
False
26. A sole proprietorship an unincorporated business owned by two or more people.
a.
True
b.
False
27. The drawbacks of proprietorship include unlimited liability and difficulty in obtaining financing.
a.
True
b.
False
28. Two principle advantages of forming a corporation are continuity and limits on the owners' liability.
a.
True
b.
False
29. Setting standards too high is a common pitfall for keeping a small business running successfully.
a.
True
b.
False
30. The failure rate for high-tech business is lower than the failure rate for conventional businesses.
a.
True
b.
False
31. Borrowing from family and friends is a common source of debt financing for a start-up business.
a.
True
b.
False
32. The Small Business Administration (SBA) can provide loan financing for small business start-up.
a.
True
b.
False
33. Equity financing is when funds are invested in exchange for ownership in the company.
a.
True
b.
False
34. A venture capital firm is a group of companies or individuals that invests money in new or expanding businesses for
ownership and potential profits.
a.
True
b.
False
35. The advantage of buying an existing business is the ability to develop and design the business in the entrepreneur's
own way.
a.
True
b.
False
36. An attractive innovation for entrepreneurs who want to start a business from scratch is to join a business incubator.
a.
True
b.
False
37. To succeed in the competitive online market, aspiring entrepreneurs need to identify a market niche that isn't being
served by other companies.
a.
True
b.
False
38. Entrepreneurs see themselves as being less in control of their environment, generally speaking, and can be expected to
have an external locus of control.
a.
True
b.
False
39. The owner should start implementing more structured control systems by Stage 3 of growth for an entrepreneurial
firm.
a.
True
b.
False
40. A domain name gives a company an address on the Web and a unique identity.
a.
True
b.
False
41. Which of the following is the process of starting a business venture, organizing the resources, and taking the risks?
a.
Intrapreneurship
b.
Entrepreneurship
c.
Small business administration
d.
Venture capital
e.
Equity financing
42. A(n) _____ is someone who recognizes a viable idea for a business product or service and carries it out.
a.
intrapreneur
b.
entrepreneur
c.
manager
d.
leader
e.
introvert
43. Being interested in computers, Jose Cohata came up with an idea of personalizing the screen saver programs with
family pictures. After trying a couple of programs, Jose started marketing this service to neighbors and area businesses.
Jose's activities can be described as a(n) _____.
a.
entrepreneurship
b.
intrapreneurship
c.
useless idea
d.
large business
e.
partnership
44. An entrepreneur:
a.
assumes the risks of the business.
b.
reaps the rewards of the business.
c.
assumes the financial and legal risks of ownership.
d.
recognizes a viable idea for a business product or service and carries it out.
e.
all of these.
45. Tracy's Trikes believes that each employee should enjoy the idea of working on something that is new, creative, or
personally meaningful. Tracy's Trikes exemplifies which of the categories of small business owners?
a.
Optimizers
b.
Idealists
c.
Hard workers
d.
Sustainers
e.
Jugglers
46. Connie, a single mother and home-business entrepreneur, enjoys running her own business. However, because she is
busy balancing work and family, she does not foresee her home business growing significantly in the near future. Connie
can best be described as what type of entrepreneur?
a.
Idealist
b.
Sustainer
c.
Optimizer
d.
Juggler
e.
Hard worker
47. If a small business owner enjoys the chance to balance work and personal life, he would be considered a(n) _____.
a.
idealist
b.
optimizer
c.
hard worker
d.
juggler
e.
sustainer
48. Which of the following are high-energy people who enjoy handling every detail of their own businesses?
a.
Jugglers
b.
Idealists
c.
Sustainers
d.
Optimizers
e.
Hard workers
49. Which of the following is the type of business that most entrepreneurs start?
a.
Retail
b.
Manufacturing
c.
Service
d.
All of these
e.
Retail and manufacturing only
50. Today, inspired by the growth of companies such as Amazon.com, entrepreneurs are flocking to the _____ to start
new businesses.
a.
Small Business Administration
b.
Internet
c.
bookstore
d.
mall
e.
Internal Revenue Service
51. In 2012, which country had the largest percentage of individuals age 18 to 64 that were active in starting or managing
a business?
a.
China
b.
Peru
c.
Columbia
d.
Angola
e.
Dominican Republic
52. The Small Business Association (SBA) reports that small businesses create at least _____ percent of America’s new
jobs.
a.
30
b.
32
c.
46
d.
64
e.
82
53. Small businesses represent _____ percent of all firms and employ about half of all private sector employees.
a.
87
b.
22
c.
98
d.
54
e.
72
54. Small firms that file for patents typically produce _____ more patents per employee than large patenting firms.
a.
twice
b.
3 to 4 times
c.
6 to 7 times
d.
9 to 10 times
e.
13 to 14 times
55. What percentage of women entrepreneurs have employees?
a.
Five
b.
Ten
c.
Twenty
d.
Fifty
e.
Eighty
56. Which of the following demographic factors distinguish entrepreneurs from others?
a.
They are likely the youngest child in their family.
b.
Most entrepreneurs launch their businesses between the ages of 35 and 55.
c.
Their parents likely worked for large companies.
d.
They are likely the children of immigrants.
e.
All of these.
57. In the United States, minorities own _____ firms.
a.
5.8 million
b.
1.3 billion
c.
872,000
d.
8.9 million
e.
2.9 million
58. Celine has an unwavering belief in her new start-up company. She possesses intense focus and takes unconventional
risks to make her new company successful. These examples most closely relate to which personality trait of
entrepreneurs?
a.
Need to achieve
b.
Patience
c.
Tolerance for ambiguity
d.
High energy level
e.
Self-confidence
59. Andrew, a young entrepreneur, feels sure about his ability to win customers through his people skills. He is
comfortable with his ability to handle technical details and feels that he is able to keep his business moving. This most
closely relates to which personality trait of entrepreneurs?
a.
Need to achieve
b.
Impatience
c.
Tolerance for ambiguity
d.
High energy level
e.
Self-confidence
60. Which of these means that people are motivated to excel and pick situations in which success is likely?
a.
External locus of control
b.
Tolerance for Ambiguity
c.
Awareness of passing time
d.
Internal locus of control
e.
Need to achieve
61. Ginger likes to set her own goals, which have an intermediate level of difficulty. Which of the entrepreneurial
characteristics does she probably possess?
a.
A high need for achievement
b.
A high need for power
c.
An external locus of control
d.
An inability to deal with uncertainty
e.
Intolerance for ambiguity
62. Melissa is a very good middle manager. However, she has long wanted to open her own business. Which of Melissa's
characteristics is not consistent with entrepreneurship?
a.
Melissa has high self-confidence.
b.
Melissa tends to put things off till later.
c.
She is untroubled by uncertainty.
d.
She has a high energy level.
e.
She has high need to achieve.
63. Social entrepreneurs are committed to both good business and:
a.
swaying political opinion of consumers.
b.
improving the natural environment.
c.
positive social change.
d.
non-profit goals.
e.
big profits.
64. What is the primary goal of the social entrepreneur?
