Question 1

An owner-manager is a person who founds a new business.

Accepted Answer

A) True 
 B)False  False

Question 2

Explain the nature of and the differences among microbusinesses, attractive small firms, and high-potential ventures.

Accepted Answer

Microbusinesses provide only a very limited return to their owners. Such firms may be consistently unable to generate much profit; however, they are not necessarily failing. Attractive small firms offer substantial profit (e.g., $100,000 to $300,000 or more annually) but not spectacular rewards. High-potential (or gazelle) ventures are those like Dell and Microsoft, which can turn entrepreneurs into multimillionaires. Of course, they also include less spectacular successes that still earn very high profits.

Question 3

The textbook intends to help move entrepreneurs toward the artisan end of the continuum and away from the opportunistic end.

Accepted Answer

A) True 
 B)False  False

Question 4

List and briefly explain the six categories of "desirable and acquirable attitudes and behaviors" found in Timmons and Spinelli's research on entrepreneurial characteristics.

Accepted Answer

The answer of List and briefly explain the six categories...

Question 5

The universally accepted definition of the term small business is based on the number of people employed by the firm.

Accepted Answer

A) True 
 B)False

Question 6

Franchises offer the most independence for a new entrepreneur.

Accepted Answer

A) True 
 B)False

Question 7

A woman wants to start a construction company. She should realize that

Accepted Answer

A)  women have never successfully started construction businesses having more than two or three employees. 
B)  people (for example, some male loan officers) may not take her seriously simply because she is a woman. 
C)  it will be impossible for her to break into the "good old boy network". 
D)  gender differences are a fact of life (for example, construction is a male industry, beauty shops are usually female owned, and so on), and therefore she should stay with the pattern. 
A)  women have never successfully started construction businesses having more than two or three employees. 
B)  people (for example, some male loan officers) may not take her seriously simply because she is a woman. 
C)  it will be impossible for her to break into the "good old boy network". 
D)  gender differences are a fact of life (for example, construction is a male industry, beauty shops are usually female owned, and so on), and therefore she should stay with the pattern.

Question 8

Individuals seeking entrepreneurship opportunities that are fleeing from an undesirable situation would be best described as ____.

Accepted Answer

A)  reluctant entrepreneurs 
B)  refugees 
C)  artisans 
D)  opportunistic 
A)  reluctant entrepreneurs 
B)  refugees 
C)  artisans 
D)  opportunistic

Question 9

What would best describe a go-to person?

Accepted Answer

A)  Worker 
B)  Employee 
C)  Mentor 
D)  Neighbor 
A)  Worker 
B)  Employee 
C)  Mentor 
D)  Neighbor

Question 10

A person who starts a business is classified as a

Accepted Answer

A)  founder. 
B)  general manager. 
C)  franchisee. 
D)  marginal-firm manager. 
A)  founder. 
B)  general manager. 
C)  franchisee. 
D)  marginal-firm manager.

Question 11

Explain how a small business can be more innovative than a large firm.

Accepted Answer

Research departments of big businesses t

Question 12

The size standard for small business used in the textbook would exclude firms that

Accepted Answer

A)  have more than 10 employees. 
B)  have more than 100 employees. 
C)  have more than two owners. 
D)  sell products of services outside the local community. 
A)  have more than 10 employees. 
B)  have more than 100 employees. 
C)  have more than two owners. 
D)  sell products of services outside the local community.

Question 13

Consistently operating with _____ can set a small business apart as being trustworthy when stories of corporate greed and corruption abound.

Accepted Answer

A)  panache 
B)  integrity 
C)  competence 
D)  temerity 
A)  panache 
B)  integrity 
C)  competence 
D)  temerity

Question 14

You Make the Call - Situation 3
Dover Sporting Goods Store occupies an unimpressive retail location in a small city in northern Illinois. Started in 1935, it is now operated by Duane Dover-a third-generation member of the founding family. He works long hours trying to earn a reasonable profit in the old downtown area. Dover's immediate concern is an announcement that Wal-Mart is considering opening a store at the southern edge of town. As Dover reacts to this announcement, he is overwhelmed by a sense of injustice. Why should a family business that has served the community honestly and well for 60 years have to fend off a large corporation that would take big profits out of the community and give very little in return? Surely, he reasoned, the law must offer some kind of protection against big business predators of this kind. Dover also wonders whether small stores such as his have ever been successful in competing against business giants like Wal-Mart.

Accepted Answer

The answer of You Make the Call - Situation 3
Dover...

Question 15

Which of the following is excluded from the definition of entrepreneur given in the book?

Accepted Answer

A)  Founder 
B)  Second generation owner-manager 
C)  Franchisee 
D)  A salaried manager who has a flair for innovation 
A)  Founder 
B)  Second generation owner-manager 
C)  Franchisee 
D)  A salaried manager who has a flair for innovation

Question 16

The Small Business Administration reports of small firms all of the following except:

Accepted Answer

A)  comprise 99.7 percent of all firms with employees. 
B)  account for 75 percent of private payrolls. 
C)  generated 60 to 80 percent of all new jobs over the past decade. 
D)  represent 97.3 percent of all exporters. 
A)  comprise 99.7 percent of all firms with employees. 
B)  account for 75 percent of private payrolls. 
C)  generated 60 to 80 percent of all new jobs over the past decade. 
D)  represent 97.3 percent of all exporters.

Question 17

Valerie Weatherspoon has been described as a "free spirit." She has tolerated but seldom appreciated parental, academic, or even job authority. The factor most likely to lure her to entrepreneurship is

Accepted Answer

A)  profit opportunities. 
B)  freedom to operate independently. 
C)  enjoyment of doing what she likes to do. 
D)  satisfaction in serving the community through the business. 
A)  profit opportunities. 
B)  freedom to operate independently. 
C)  enjoyment of doing what she likes to do. 
D)  satisfaction in serving the community through the business.

Question 18

A refugee is a person who tried entrepreneurship, failed, and sought refuge in corporate employment.

Accepted Answer

A) True 
 B)False

Question 19

Microbusinesses are sometimes referred to as lifestyle businesses.

Accepted Answer

A) True 
 B)False

Question 20

A mechanic who starts an independent garage can best be thought of as an opportunistic entrepreneur.

Accepted Answer

A) True 
 B)False

Exam 1: The Entrepreneurial Life

An owner-manager is a person who founds a new business.

Explain the nature of and the differences among microbusinesses, attractive small firms, and high-potential ventures.

The textbook intends to help move entrepreneurs toward the artisan end of the continuum and away from the opportunistic end.

List and briefly explain the six categories of "desirable and acquirable attitudes and behaviors" found in Timmons and Spinelli's research on entrepreneurial characteristics.

The universally accepted definition of the term small business is based on the number of people employed by the firm.

Franchises offer the most independence for a new entrepreneur.

A woman wants to start a construction company. She should realize that

Individuals seeking entrepreneurship opportunities that are fleeing from an undesirable situation would be best described as ____.

What would best describe a go-to person?

A person who starts a business is classified as a

Explain how a small business can be more innovative than a large firm.

The size standard for small business used in the textbook would exclude firms that

Consistently operating with _____ can set a small business apart as being trustworthy when stories of corporate greed and corruption abound.

Which of the following is excluded from the definition of entrepreneur given in the book?

The Small Business Administration reports of small firms all of the following except:

Valerie Weatherspoon has been described as a "free spirit." She has tolerated but seldom appreciated parental, academic, or even job authority. The factor most likely to lure her to entrepreneurship is

A refugee is a person who tried entrepreneurship, failed, and sought refuge in corporate employment.

Microbusinesses are sometimes referred to as lifestyle businesses.

A mechanic who starts an independent garage can best be thought of as an opportunistic entrepreneur.

Entrepreneurial Integrity and Ethics

Getting Started

Franchises and Buyouts

The Family Business

The Business Plan: Visualizing the Dream

The Marketing Plan

The Human Resources Plan: Managers, Owners, Allies, and Directors

The Location Plan

Understanding a Firms Financial Statements

Forecasting Financial Requirements

A Firms Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Business

Professional Management in the Entrepreneurial Firm

Managing Human Resources

Managing Operations

Managing the Firms Assets

Managing Risk in the Small Business

Filters