1. Approximately 600,000 new businesses are launched in the U.S. each year by entrepreneurs.
a.
True
b.
False
True
MGMT.DAFT.12.06-02 – 06–02
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
True
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3. Sole proprietorships are one of the fastest growing segment of small business.
a.
True
b.
False
True
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4. Entrepreneurs in the sustainer category are rewarded by the personal satisfaction of being business owners.
a.
True
b.
False
False
172
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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
True
172
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6. Entrepreneurs in the optimizer category are rewarded by the personal satisfaction of being business owners.
a.
True
b.
False
172
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7. Optimizers are rewarded by chance to work on something new and creative.
a.
True
b.
False
False
172
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8. During turbulent times, small business formation is the primary process by which an economy recreates and reinvents
itself.
a.
True
b.
False
True
173
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9. China is the most entrepreneurial country, with 24 percent of individuals age 18 to 64 starting a new business.
a.
True
b.
False
True
174
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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
False
175
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11. Entrepreneurship and small business in the United States is an engine for job creation and innovation.
a.
True
b.
False
True
175
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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
False
176
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13. Immigrants are more likely to start small businesses than native-born Americans.
a.
True
b.
False
True
176
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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
True
176
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15. Particularly in a turbulent environment, the three most important traits of successful entrepreneurs are realism,
flexibility, and passion.
a.
True
b.
False
True
180
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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
True
180
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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
False
180
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18. Social entrepreneurs have a primary goal of improving society rather than maximizing profits.
a.
True
b.
False
True
MGMT.DAFT.12.06-05 – 06–05
19. Social entrepreneurs are leaders who are committed to both good business and ensuring high profitability.
a.
True
b.
False
False
181
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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
True
182
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21. The first step in pursuing an entrepreneurial dream is to come up with a viable idea.
a.
True
b.
False
True
182
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22. The most common source of new business ideas comes from in-depth understanding of an industry or profession.
a.
True
b.
False
True
183
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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
183
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24. A business plan for a small business should be detailed, encompassing at least 100 pages.
a.
True
b.
False
False
184
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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
False
184
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26. A sole proprietorship an unincorporated business owned by two or more people.
a.
True
b.
False
False
184
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27. The drawbacks of proprietorship include unlimited liability and difficulty in obtaining financing.
a.
True
b.
False
True
184
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28. Two principle advantages of forming a corporation are continuity and limits on the owners’ liability.
a.
True
b.
False
True
184
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29. Setting standards too high is a common pitfall for keeping a small business running successfully.
a.
True
b.
False
False
185
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30. The failure rate for high-tech business is lower than the failure rate for conventional businesses.
a.
True
b.
False
False
185
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31. Borrowing from family and friends is a common source of debt financing for a start-up business.
a.
True
b.
False
True
186
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32. The Small Business Administration (SBA) can provide loan financing for small business start-up.
a.
True
b.
False
True
187
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33. Equity financing is when funds are invested in exchange for ownership in the company.
a.
True
b.
False
True
188
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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
True
188
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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
False
189
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36. An attractive innovation for entrepreneurs who want to start a business from scratch is to join a business incubator.
a.
True
b.
False
True
189
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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
True
192
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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
False
193
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United States – LA – DISC: Creation of Value
Bloom’s: Knowledge
39. The owner should start implementing more structured control systems by Stage 3 of growth for an entrepreneurial
firm.
a.
True
b.
False
True
196
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United States – BUSPROG: Analytic
United States – LA – DISC: Creation of Value
Bloom’s: Knowledge
40. A domain name gives a company an address on the Web and a unique identity.
a.
True
b.
False
True
MGMT.DAFT.12.06-07 – 06–07
United States – BUSPROG: Analytic
United States – LA – DISC: Creation of Value
Bloom’s: Knowledge
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
172
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United States – BUSPROG: Analytic
United States – LA – DISC: Creation of Value
Bloom’s: Knowledge
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
172
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United States – BUSPROG: Analytic
United States – LA – DISC: Creation of Value
Bloom’s: Knowledge
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
a
172
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A
44. An entrepreneur:
a.
b.
c.
d.
e.
e
172
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United States – BUSPROG: Analytic
United States – LA – DISC: Creation of Value
Bloom’s: Knowledge
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
172
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United States – BUSPROG: Analytic
United States – LA – DISC: Creation of Value
Bloom’s: Knowledge
A
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
172
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United States – BUSPROG: Analytic
United States – LA – DISC: Creation of Value
Bloom’s: Knowledge
A
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
e
173
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United States – BUSPROG: Analytic
United States – LA – DISC: Creation of Value
Bloom’s: Knowledge
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
a
173
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United States – BUSPROG: Analytic
United States – LA – DISC: Creation of Value
Bloom’s: Knowledge
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
173
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United States – BUSPROG: Analytic
United States – LA – DISC: Creation of Value
Bloom’s: Knowledge
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
173
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United States – BUSPROG: Analytic
United States – LA – DISC: Creation of Value
Bloom’s: Knowledge
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
a
174
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United States – LA – DISC: Creation of Value
Bloom’s: Knowledge
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
175
MGMT.DAFT.12.06-02 – 06–02
United States – LA – DISC: Creation of Value
Bloom’s: Knowledge
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
c
175
MGMT.DAFT.12.06-02 – 06–02
United States – BUSPROG: Analytic
United States – LA – DISC: Creation of Value
Bloom’s: Knowledge
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
e
175
MGMT.DAFT.12.06-02 – 06–02
United States – BUSPROG: Analytic
United States – LA – DISC: Creation of Value
Bloom’s: Knowledge
55. What percentage of women entrepreneurs have employees?
a.
Five
b.
Ten
c.
Twenty
d.
Fifty
e.
Eighty
c
176
MGMT.DAFT.12.06-03 – 06–03
United States – BUSPROG: Analytic
United States – LA – DISC: Creation of Value
Bloom’s: Knowledge
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.
d
1
2
176
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United States – BUSPROG: Analytic
United States – LA – DISC: Creation of Value
Bloom’s: Knowledge
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
a
1
3
176
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United States – BUSPROG: Analytic
United States – LA – DISC: Creation of Value
Bloom’s: Knowledge
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
d
1
3
179
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United States – BUSPROG: Analytic
United States – LA – DISC: Creation of Value
Bloom’s: Knowledge
A
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
e
1
3
180
MGMT.DAFT.12.06-04 – 06–04
United States – BUSPROG: Analytic
United States – LA – DISC: Creation of Value
Bloom’s: Knowledge
A
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
e
1
1
180
MGMT.DAFT.12.06-04 – 06–04
United States – BUSPROG: Analytic
United States – LA – DISC: Creation of Value
Bloom’s: Knowledge
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
1
2
180
United States – BUSPROG: Analytic
United States – LA – DISC: Creation of Value
Bloom’s: Knowledge
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.
b
1
2
180
United States – BUSPROG: Analytic
United States – LA – DISC: Creation of Value
Bloom’s: Knowledge
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.
1
2
181
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64. What is the primary goal of the social entrepreneur?