56) Identify a true statement about the history of entrepreneurial businesses in the United States.
A) The 1880s saw the initial development of the nation’s large industrial base.
B) The Great Depression of the 1930s was harder on mature businesses than on entrepreneurial
businesses.
C) Entrepreneurial businesses as a percentage of the U.S. economic output began to grow
exponentially following World War II.
D) Steel and automobile manufacturing in the United States flourished in the late 1970s and early
1980s.
57) During Eisenhower’s presidency, who stated, “What is good for General Motors is good for the
nation”?
A) Franklin Roosevelt
B) Henry Ford
C) Andrew Carnegie
D) Charles Wilson
58) During the 1970s and 1980s, the ________ occupied the dominant economic position in the
world.
A) Americans
B) Japanese
C) Russians
D) Germans
59) Throughout U.S. history, from the 1800s to today, how would you characterize the role and
impact of small businesses?
A) Small businesses in general had a real roller coaster ride and suffered along with everyone else
during the downturns.
B) Small businesses were not impacted much by either economic downturns or increased
prosperity.
C) The number of small businesses decreased more than big businesses.
D) Small businesses have proven to be more resilient than big businesses and have actually helped
to improve the economy.
60) Compared to large corporations, entrepreneurial businesses
A) play just as important a part in our economy.
B) attract more attention in the media.
C) are more visible.
D) have more resources at their disposal.
61) Which of the following was the outcome of the Great Depression of the 1930s?
A) It led to the initial development of a large industrial base in the United States.
B) It was harder on larger more mature businesses than on entrepreneurial businesses.
C) The government deregulated all small- and medium-sized enterprises.
D) Entrepreneurial business as a percentage of the U.S. economic output began to decline.
62) What term is used to describe individuals or other organizations that impact the success of a
business?
A) Corporate managers
B) Capitalists
C) Stakeholders
D) Owners
63) What percentage of U.S. millionaires are self-employed?
A) 25
B) 33 1/3
C) 50
D) 66.7
64) What is the percentage of self-employed people in the workforce?
A) 10
B) 20
C) 30
D) 40
65) Which one of these large companies started out as a small business?
A) Apple
B) Hewlett-Packard
C) Facebook
D) All of these
66) Which of the following is NOT a factor in a small business’s success?
A) Business owners have both the opportunity and the responsibility to lead.
B) Small business owners want and need to be independent.
C) Other people’s needs and wants are not as important as the small business owner’s.
D) Business owners need to carefully consider the needs of stakeholders.
67) Owning a small business provides a means to meet varied demands that individuals face in
society. Which of the following is NOT a need mentioned in the text’s discussion of how society
benefits from small business ownership?
A) Small business owners leave big businesses because of the lack of promotion opportunities.
B) Entrepreneurs prefer the flexibility to deal with the needs of family and children that business
ownership provides.
C) Small business owners have greater ability to attract financing from venture capital firms.
D) All of these
68) Which of the following is a difference between large organizations and entrepreneurial
businesses?
A) Unlike entrepreneurial businesses, large organizations have a better understanding of the local
community in which they conduct business.
B) Unlike entrepreneurial businesses, large organizations will regularly ignore business
opportunities if they fail to believe the results will generate high profits.
C) Unlike large organizations, entrepreneurial businesses are burdened by policies, procedures,
corporate layers of management, and public stockholders.
D) Unlike large organizations, entrepreneurial businesses do things more efficiently because they
are easily able to achieve economies of scale.
69) The term ________ refers to the fact that women, like minorities, may be hired by large firms
but experience limits placed on their advancement.
A) “grapevine”
B) “androcentric”
C) “glass ceiling”
D) “glass cliff”
70) Small businesses act as a catalyst for social change because
A) they have the ability to generate profits in markets ignored by large corporations.
B) owners have a better understanding of how to operate their business.
C) they are often started when the economy is booming.
D) communities always want to have extra money that can be obtained from having small
businesses.
71) The largest group of new business owners is ________.
A) Hispanics
B) retired men
C) women
D) Asians
72) Women entrepreneurs are starting small businesses for all but one of the following reasons
A) better ideas for small businesses.
B) greater control of their lives.
C) manage family needs.
D) hit the glass ceiling.
73) The World Bank estimates that one of the strongest factors in the growth of any nation’s GNP
(gross national product) is ________.
A) small and medium-sized enterprises
B) large businesses
C) global trading
D) higher tariffs
74) In the context of entrepreneurship around the world, identify a true statement about
microloans.
A) Such loans typically see much lower repayment rate than most types of loans.
B) The failure of such loans has resulted in a decreasing dedication of the U.S. aid budget to
microloans for developing nations.
C) The repayment rate on such loans is typically 50 percent.
D) The success of such loans has been substantial, with great strides being made in many
desperately poor nations.
75) Microloans have been in existence for years; they are most commonly made directly to
________ for self-development.
A) men
B) women
C) young adults
D) Hispanics
76) Which kind of business is NOT likely to be eligible for a microloan program?
A) Telecommunication center
B) Meals delivery
C) Serving weaving baskets
D) Washing clothes
77) Characteristics of a small business start-up include all EXCEPT which one of the following?
A) Self-funded
B) Designed to take advantage of the skills of the founder(s)
C) Oriented toward positive cash flow
D) Over 100 employees
78) A harvest plan for a small business means the owner is
A) reaping the benefits.
B) borrowing money to keep operating.
C) planning to exit a small business.
D) returning the profits into a company.
79) All of these are harvest plan strategies EXCEPT:
A) selling the business to another firm.
B) selling it to a group of investors.
C) participating in an IPO (public offering of stock).
D) franchising.
80) Entrepreneurial business resources are more ________ than venture capital-backed
businesses.
A) plentiful
B) constrained
C) restrained
D) inverse ratio
81) Which of the following is NOT a characteristic of a high-growth venture?
A) Have a well-developed organization structure
B) Often hire an experienced president to grow the company
C) Usually hire a relatively large number of employees
D) Is designed to reflect the mission of the founder