Exam 7: Small Business Entrepreneurship: Economic Rocket Fuel

When entrepreneurs of small firms start serving a variety of roles, from CEO to customer service rep, such firms:

In the context of self-reliance, people with an external locus of control rely more on their own efforts and less on the actions of others.

Margie dropped out of college to pursue her passion for cooking. With personal resources to fund her initial capital, she started a food truck in one of the busiest streets of her hometown. After a month of running the food truck, Margie realized that she was not getting enough customers because there were several other similar food trucks in the area. In this scenario, which of the following threats did Margie's business face?

Administrative costs for small health plans are much higher for large firms making it tougher for small firms to offer coverage to their employees.

In the context of funding options for small businesses, which of the following offers a potential funding source for new business start-ups?

In the context of entrepreneurs, which of the following statements is a difference between an internal locus of control and an external locus of control?

People with an external locus of control:

Luis runs a bakery that offers only takeaway service. His customers visit his residence and watch him prepare their order. They also get an opportunity to bring their cake designs and help Luis prepare the desired cake. As a result, he knows most of his customers well. The opportunity of _____ is highlighted in the given scenario.

Michael is a middle-aged professional who lost his job five months ago when his former employer downsized. He has actively been looking for work ever since but has not been able to find a job that utilizes his abilities or offers an income similar to his previous position. He is beginning to realize that the only way for him to survive his current situation is to start his own business. In this scenario, Michael will most likely become a(n) _____.

Which of the following is a drawback of buying a franchise?

Mabel has a business idea of starting a store that would only sell hair products. Although she needs to raise capital to start her business, she does not want to share the ownership of her firm with anyone else. With a good appetite for risk, which of the following financing resources would be most ideal for her to start her business?

When entrepreneurs develop new products that we didn't even know we needed until we had them, they are showing the entrepreneurial characteristic of vision.

For entrepreneurs, there is no correlation between dollars earned and hours worked.

Based on statistics from the U.S. Small Business Administration (SBA), small businesses account for 78% of all private sector employees.

Rachel runs a fashion boutique. She employs five seamstresses to help her in her work. She gives them flexible work hours and usually allows them to work from their respective homes. However, Rachel does not provide health-care facilities to her employees, and instead, she uses the financial resources to buy high-quality fabrics. The opportunity of _____ is highlighted in the given scenario.

When buying a franchise, _____.

Neman, a single parent, quit his job and started a small independent business because he was unable to give adequate attention to his child. Being an entrepreneur gives him the freedom to give undivided attention to his child without jeopardizing his work. Which of the following advantages of entrepreneurship is highlighted in the given scenario?

_____ is the process of funding ventures by raising money from a large number of investors via the Internet.

James is always keen on putting his ideas into action regardless of the outcome. He perfects his craft by trying out different possibilities. If he is dissatisfied with the result, he tries out a different method but does not give up. Which entrepreneurial characteristic is highlighted in the given scenario?

Small firms tend to be effective innovators for a number of reasons. Most importantly, their very reason for being often ties to: