50) In general, the greater the debt a business owner is willing to take on, the ________ the risk
tolerance.
A) lower
B) higher
C) less predictable
D) more predictable
51) ________ is a rational decision-making process that is constrained by our experiences, history,
and culture.
A) Logic rationality
B) Constrained rationality
C) Bounded rationality
D) Unbounded rationality
52) In the context of entrepreneurial orientation, the presence of ________ often leads young
people to be pioneers in an area, as they are not limited by the restrictions of the past.
A) family support
B) introversion
C) organizational slack
D) bounded rationality
53) Which of the following personality tests is based on the philosophy of Carl Jung?
A) Insights
B) Enneagram
C) Big Five
D) Myers-Briggs
54) Which personality test indicates the different ways individuals deal with other people and their
environments?
A) Insights
B) Enneagram
C) Big Five
D) Myers-Briggs
55) Which personality test believes that a person is the result of all experiences in his or her life?
A) Insights
B) Enneagram
C) Big Five
D) Myers-Briggs
56) Which popular personality test assumes there are five components or types of an individual’s
personality?
A) Insights
B) Enneagram
C) Big Five
D) Myers-Briggs
57) The potential entrepreneur needs to consider ________ when starting a new business.
A) prior experience
B) education
C) rationality
D) capital
58) In the context of evaluating entrepreneurial orientation, which of the following personality
tests has a bias that adults will not change their personality over time and instead hold on to the
personality they develop during childhood?
A) The Big Five test
B) The Myers-Briggs test
C) The Enneagram test
D) The Rorschach test
59) Which of the following is NOT a personality dimension of the Big Five test?
A) Individualist
B) Extroversion
C) Agreeableness
D) Conscientiousness
60) Anya is an entrepreneur. To understand her own strengths and weaknesses better, she takes a
personality test. The test analyzes various factors, such as whether she focuses more on the
outward world or her internal world and whether she gathers information through observation or
intuition. Based on these variables, the test shows Anya how she tends to deal with other people
and her environment. The test that Anya took is most likely the ________.
A) Myers-Briggs test
B) Big Five test
C) HEXACO test
D) Enneagram test
61) In the context of entrepreneurship, which of the following is a typical trigger for starting a new
business?
A) Being laid off from established employment
B) Getting recruitment offers from established places of work
C) Having a secure financial base
D) Migrating from one city to another
62) Which of the following is NOT a personal motivator to start a business?
A) Proactive positioning
B) Driven
C) Practical advice
D) Defensive positioning
63) Sarah works as a supervisor in a large firm. Though she is very experienced at management
and planning, she has not been promoted to the role of manager. However, she notices that other
supervisors with less experience are often promoted to managerial positions, even if their work is
not as good as hers. She also notices that all of them are men. In this scenario, Sarah being denied
a promotion is an example of ________.
A) the glass ceiling
B) nepotism
C) organizational slack
D) bounded rationality
64) Which of the following is NOT a personal motivator to start a business?
A) Being proactive
B) Feeling driven to achieve goals
C) Willing to make career-changing moves
D) Taking a defensive position
65) In the context of supports for new businesses, why are established businesses often hesitant to
buy from a start-up business?
A) Because the supply structures of established businesses are resistant to incorporating new
supply sources
B) Because small businesses are typically family-run establishments, making them unreliable in
the long run
C) Because it is more profitable for established businesses to fulfill any requirements through
resources already present within their organizational structures
D) Because it is not clear if the new business will be able to fulfill an order or service a product in
the future
66) Which of the following is an advantage that family businesses enjoy over nonfamily-owned
businesses?
A) Family businesses have the ability to cheaply produce large numbers of a product, whereas
nonfamily-owned businesses can only produce small volumes of a product.
B) Family businesses can afford to fill niches within markets that nonfamily-owned businesses
cannot afford to fill.
C) Individuals in family businesses are often willing to work at times and in conditions that
employees in nonfamily-owned businesses would not accept.
D) Family businesses are able to respond quickly to change around them, whereas
nonfamily-owned businesses are often slow to react to changes.
67) All of these are negatives for an owner in a family business EXCEPT:
A) firing a family member.
B) reprimanding a family member.
C) promoting a family member.
D) all of these.
68) Established businesses are often ________ to buy from a start-up small business.
A) quick
B) hesitant
C) sure
D) determined
69) Some communities offer facilities that house new businesses and provide resources for them.
These are called ________.
A) small business resource centers
B) temporary business agencies
C) holding facilities
D) incubators
70) Incubators for small businesses include all of the following EXCEPT:
A) space.
B) financial loans.
C) legal expertise.
D) common receptionist.
71) Business incubators work best with which of the following type of firms?
A) Manufacturing
B) Retail
C) Service
D) Accounting
72) The Small Business Administration has set up which of these to advise individuals wanting to
start a new business?
A) Service Corps of Retired Executives
B) Small Business Assistance Centers
C) Minority Enterprise Development Program
D) Community Incubator Program
73) When should a new business owner ensure there are sufficient financial resources to operate
the business?
A) Prior to the start
B) Opening day
C) First payroll
D) After six-month review
74) Sofor Designs is a successful firm that has been through many difficulties. When it first
opened, the firm was financially unstable, but the employees agreed to work on partial salaries.
The employees are also very loyal to the founder, and they always agree to work long hours during
holiday seasons to maximize on increased customer traffic. Sofor Designs’ characteristics are
typical of ________.
A) family businesses
B) large established businesses
C) opportunistic start-ups
D) incubated start-ups
75) A prospective small business owner wants a career playing sports, which is what he enjoys
doing most. He might be drawn to try an entrepreneurial venture in order to realize:
A) personal fulfillment.
B) substantial long-term profits.
C) freedom from the control of a managerial hierarchy.
D) a sense of self-esteem as a result of building his own business.
76) ________ is a supposition that assumes individuals act to maximize their own benefit.
77) The ________ is defined as the level where revenue coming into a firm is sufficient to cover
expenses.
78) The ________ theory suggests that individuals act to maximize their own individual benefit.
79) A person who wants to start a business needs a(n) ________ risk tolerance.
80) ________ is a decision that is constrained by the background and history of the person.
81) A(n) ________ is a facility that houses new businesses and provides many critical services for
them.
82) Identify and list three significant advantages that a small business has over a large company.
83) What are the three areas that should be considered by potential entrepreneurs when starting a
new business?
84) Starting a new business is often the result of some particular event or condition within an
individual’s environment. List four events that could trigger a new business.
85) In the context of triggers for starting new businesses, briefly describe circumstance motivators.
86) How do personality tests assist entrepreneurs? Describe the Myers-Briggs test.
87) Why is the role of the family so critical to the success of a family business?
88) List and explain at least three community resources.