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
46) Primary cause of business failure is:
A) improper managerial attitude.
B) poor financial controls.
C) incompetent management.
D) location.
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
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
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.
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.
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
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
53) The average small business owner works ________ hours per week.
A) 39.5
B) 54
C) 40
D) 80
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.
55) Starting a part-time business is a popular gateway to entrepreneurship.
56) Entrepreneurship has become mainstream.
57) Entrepreneurs are people who grow existing businesses by careful management of existing
resources.
58) Entrepreneurs are noted for their ability to bounce back after a business failure.
59) Entrepreneurial success requires little more than a good idea for a product or service.
60) One hallmark of true entrepreneurs is their ability to adapt to the changing demands of their
customers and businesses.
61) Entrepreneurs tend to have a low tolerance for ambiguity.
62) Research has isolated a set of characteristics that can predict who will succeed as an
entrepreneur.
63) Studies indicate that the opportunity to make a difference is a significant benefit in the eyes
of most entrepreneurs.
64) The opportunity to reap unlimited profits is the primary motivator for most entrepreneurs.
65) Entrepreneurs usually experience greater income stability running their own businesses than
they did in their corporate careers.
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.
67) It is common to experience a lower quality of life during a business start-up than after the
business is established.
68) Entrepreneurs can outsource many of the operations of their companies.
69) In today’s economy, entrepreneurs are seen as heroes.
70) Advances in technology available to entrepreneurs permit them to move into manufacturing
and compete directly with Fortune 500 companies.
71) Companies started by women tend to be smaller than those started by men.
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.
73) Although it is a lower risk way to start, very few entrepreneurs start part-time. Most prefer to
cut all ties and “dive” into their business full-time, right from the start.
74) Despite their magnitude, family businesses face a major threat—a threat from within:
management succession.
75) Despite their popularity, family-owned businesses are actually a small portion of the
economy and contribute less than 25% of the GNP to the economy of the United States.
76) Family-owned businesses have a significant advantage over other forms of small business, in
that they have a very high survival rate when transitioning between generations of leadership.
77) When an entrepreneur develops a relationship with a manager in a large established company
in order to draw on the corporate manager’s experience, it is called “Copreneurship.”
78) Research shows that for “Copreneurship” to work, responsibilities must be divided by
gender.
79) One important characteristic of successful “copreneurs” is their ability to separate their
business life from their personal life, so that one doesn’t consume the other.
80) “Corporate dropouts” are middle managers who are laid off from large corporations and
decide to start their own businesses rather than return to a corporate job.
81) The trend in corporate downsizing and the resulting trust gap have spawned both the
“corporate castoff” and the “corporate dropout.”
82) Small businesses create more jobs than either medium or large businesses.
83) Lack of experience is the number one cause of small business failures.
84) The two common pitfalls of poor financial control are undercapitalization and lax customer
credit policies.
85) Generation X, made up of those people born between 1965 and 1980, is the most
entrepreneurial generation in history.
86) “Copreneurs” are entrepreneurial couples who work together as co-owners of their business.
87) Most successful entrepreneurs accept failure as part of what they do, and they use it to learn
for the “next time.”
88) Entrepreneurs tend to create thorough, well thought out business plans prior to implementing
new businesses.
89) In start-ups, it is often safest to be a “me-too” business, follow the leaders in the market until
sufficient cash flow develops to permit R & D into new and innovative products.
90) People who once saw launching a business risky now see it as an ideal way to create their
own job security.
91) Entrepreneurs are more wild risk takers than calculated risk takers.
92) Idealists make up the largest group amongst different entrepreneurial personalities.
93) The flurry of corporate “pink slips” has slowed down a new population of entrepreneurs.
94) Two characteristics common to entrepreneurs are creativity and an eye for opportunity.
95) Because of advances in technology, entrepreneurs can outsource many of the operations of
their companies.
96) Briefly outline the key characteristics of a typical entrepreneur.
97) Identify and explain the advantages and the disadvantages of small business ownership.
98) Explain at least five of the factors that are feeding the entrepreneurial boom in the United
States and abroad.
99) Entrepreneurial activity is culturally diverse. Discuss the role of women, minorities, and
immigrant entrepreneurs in this activity, profiling their characteristics, their impact, and the
specific barriers they need to overcome in their small business start-ups.
100) What role do corporate castoffs and corporate dropouts play in the growth of
entrepreneurship in the United States?
101) What are the primary causes of small business failure in the United States?
102) What can an entrepreneur do to avoid the failure of his/her company? Discuss at least six
actions they can take.