Question 1

Explain the difference between debt financing and equity financing.

Accepted Answer

When entrepreneurs use debt financing, they borrow money that they must repay. Loans from banks, finance companies, credit card companies, and family and friends are all sources of debt financing. To secure equity financing, entrepreneurs exchange a share of ownership in their company for money supplied by one or more investors. An entrepreneur does not have to repay equity funds.

Question 2

Explain recent demographic and economic trends that create opportunities for entrepreneurs to market new goods and services.

Accepted Answer

Recent trends that have created new marketing opportunities include the aging of the U.S. population, increasingly diverse ethnic groups, and the predominance of two-income families. Convenience products for busy parents, ethnic foods that cater to individuals and services designed specifically for older consumers all enjoy opportunities for success.

Question 3

Today, there are fewer two-income households, making it more difficult for people to pursue entrepreneurship.

Accepted Answer

A) True 
 B)False  False

Question 4

Venture capitalists take an equity stake in businesses in which they invest their funds.

Accepted Answer

A) True 
 B)False

Question 5

Carlos routinely bids on contracts even though most of the other bidders are extremely large firms. Carlos believes his company offers better service at lower prices. Which of the following personality traits, common in entrepreneurs, does Carlos exhibit?

Accepted Answer

A)  Creativity 
B)  Tolerance for failure 
C)  High energy level 
D)  Self-confidence 
A)  Creativity 
B)  Tolerance for failure 
C)  High energy level 
D)  Self-confidence

Question 6

Syed and Mica come up with an idea for making sugar-free ice cream. They open their own small business to cater to the needs of those who are health conscious. Their products are distributed nationwide and their sales continue to increase. Syed and Mica are examples of _____.

Accepted Answer

A)  serial entrepreneurs 
B)  classic entrepreneurs 
C)  change agents 
D)  social entrepreneurs 
A)  serial entrepreneurs 
B)  classic entrepreneurs 
C)  change agents 
D)  social entrepreneurs

Question 7

An important part of launching any new business is establishing a code of ethics.

Accepted Answer

A) True 
 B)False

Question 8

_____ focus on solving society's challenges through their businesses.

Accepted Answer

A)  Classic entrepreneurs 
B)  Change agents 
C)  Atypical entrepreneurs 
D)  Social entrepreneurs 
A)  Classic entrepreneurs 
B)  Change agents 
C)  Atypical entrepreneurs 
D)  Social entrepreneurs

Question 9

Social entrepreneurs recognize a societal problem and use business principles to develop innovative solutions.

Accepted Answer

A) True 
 B)False

Question 10

Unlike small-business owners, one of the major goals of entrepreneurs is:

Accepted Answer

A)  the desire to succeed. 
B)  to possess creative energy. 
C)  expansion and growth. 
D)  to seek a profitable opportunity. 
A)  the desire to succeed. 
B)  to possess creative energy. 
C)  expansion and growth. 
D)  to seek a profitable opportunity.

Question 11

Aisha wants to start a business. She takes a personality test and discovers she possesses a trait that may reduce the likelihood of her success. Which of the following is that trait?

Accepted Answer

A)  Creativity 
B)  Low tolerance for ambiguity 
C)  Vision 
D)  Internal locus of control 
A)  Creativity 
B)  Low tolerance for ambiguity 
C)  Vision 
D)  Internal locus of control

Question 12

The desire to work fewer hours is one of the main drives for those who choose to become entrepreneurs.

Accepted Answer

A) True 
 B)False

Question 13

Growth in entrepreneurship is a worldwide phenomenon.

Accepted Answer

A) True 
 B)False

Question 14

Philomina invests in her new venture along with the fund supplied by Deccan Corp., the co-owner of her start-up. This type of funding is known as _____.

Accepted Answer

A)  equity financing 
B)  debt financing 
C)  social venture capital funding 
D)  focused funding 
A)  equity financing 
B)  debt financing 
C)  social venture capital funding 
D)  focused funding

Question 15

There is very little the government can do to encourage entrepreneurship.

Accepted Answer

A) True 
 B)False

Question 16

Sophia is the CEO of a not-for-profit organization. She runs the organization to provide quality education for the underprivileged children. Sophia is most likely to be categorized as a:

Accepted Answer

A)  serial entrepreneur. 
B)  social entrepreneur. 
C)  lifestyle entrepreneur. 
D)  classic entrepreneur. 
A)  serial entrepreneur. 
B)  social entrepreneur. 
C)  lifestyle entrepreneur. 
D)  classic entrepreneur.

Question 17

Which of the following persons is LEAST likely to become an entrepreneur?

Accepted Answer

A)  A person with tolerance for ambiguity 
B)  A person with internal locus of control 
C)  A person with a competitive drive 
D)  A person with low energy level 
A)  A person with tolerance for ambiguity 
B)  A person with internal locus of control 
C)  A person with a competitive drive 
D)  A person with low energy level

Question 18

The primary reasons people become entrepreneurs include all of the following reasons EXCEPT:

Accepted Answer

A)  to be one's own boss. 
B)  to achieve financial success. 
C)  to avoid taking risks. 
D)  to create one's own job security. 
A)  to be one's own boss. 
B)  to achieve financial success. 
C)  to avoid taking risks. 
D)  to create one's own job security.

Question 19

An overall idea for how to convert a business idea into a success is called _____.

Accepted Answer

A)  creativity 
B)  internal locus of control 
C)  vision 
D)  tolerance for ambiguity 
A)  creativity 
B)  internal locus of control 
C)  vision 
D)  tolerance for ambiguity

Question 20

_____ of the fastest-growing small companies in the United States have international sales.

Accepted Answer

A)  Two of every five 
B)  Three of every five 
C)  Four of every five 
D)  Five of every six 
A)  Two of every five 
B)  Three of every five 
C)  Four of every five 
D)  Five of every six

Explain the difference between debt financing and equity financing.

Explain recent demographic and economic trends that create opportunities for entrepreneurs to market new goods and services.

Today, there are fewer two-income households, making it more difficult for people to pursue entrepreneurship.

Venture capitalists take an equity stake in businesses in which they invest their funds.

Carlos routinely bids on contracts even though most of the other bidders are extremely large firms. Carlos believes his company offers better service at lower prices. Which of the following personality traits, common in entrepreneurs, does Carlos exhibit?

Syed and Mica come up with an idea for making sugar-free ice cream. They open their own small business to cater to the needs of those who are health conscious. Their products are distributed nationwide and their sales continue to increase. Syed and Mica are examples of _____.

An important part of launching any new business is establishing a code of ethics.

_____ focus on solving society's challenges through their businesses.

Social entrepreneurs recognize a societal problem and use business principles to develop innovative solutions.

Unlike small-business owners, one of the major goals of entrepreneurs is:

Aisha wants to start a business. She takes a personality test and discovers she possesses a trait that may reduce the likelihood of her success. Which of the following is that trait?

The desire to work fewer hours is one of the main drives for those who choose to become entrepreneurs.

Growth in entrepreneurship is a worldwide phenomenon.

Philomina invests in her new venture along with the fund supplied by Deccan Corp., the co-owner of her start-up. This type of funding is known as _____.

There is very little the government can do to encourage entrepreneurship.

Sophia is the CEO of a not-for-profit organization. She runs the organization to provide quality education for the underprivileged children. Sophia is most likely to be categorized as a:

Which of the following persons is LEAST likely to become an entrepreneur?

The primary reasons people become entrepreneurs include all of the following reasons EXCEPT:

An overall idea for how to convert a business idea into a success is called _____.

_____ of the fastest-growing small companies in the United States have international sales.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Forms of Business Ownership and Organization

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Financial Management

Filters

Exam 6: Starting Your Own Business: the Entrepreneurship Alternative

Explain the difference between debt financing and equity financing.

Explain recent demographic and economic trends that create opportunities for entrepreneurs to market new goods and services.

Today, there are fewer two-income households, making it more difficult for people to pursue entrepreneurship.

Venture capitalists take an equity stake in businesses in which they invest their funds.

Carlos routinely bids on contracts even though most of the other bidders are extremely large firms. Carlos believes his company offers better service at lower prices. Which of the following personality traits, common in entrepreneurs, does Carlos exhibit?

Syed and Mica come up with an idea for making sugar-free ice cream. They open their own small business to cater to the needs of those who are health conscious. Their products are distributed nationwide and their sales continue to increase. Syed and Mica are examples of _____.

An important part of launching any new business is establishing a code of ethics.

_____ focus on solving society's challenges through their businesses.

Social entrepreneurs recognize a societal problem and use business principles to develop innovative solutions.

Unlike small-business owners, one of the major goals of entrepreneurs is:

Aisha wants to start a business. She takes a personality test and discovers she possesses a trait that may reduce the likelihood of her success. Which of the following is that trait?

The desire to work fewer hours is one of the main drives for those who choose to become entrepreneurs.

Growth in entrepreneurship is a worldwide phenomenon.

Philomina invests in her new venture along with the fund supplied by Deccan Corp., the co-owner of her start-up. This type of funding is known as _____.

There is very little the government can do to encourage entrepreneurship.

Sophia is the CEO of a not-for-profit organization. She runs the organization to provide quality education for the underprivileged children. Sophia is most likely to be categorized as a:

Which of the following persons is LEAST likely to become an entrepreneur?

The primary reasons people become entrepreneurs include all of the following reasons EXCEPT:

An overall idea for how to convert a business idea into a success is called _____.

_____ of the fastest-growing small companies in the United States have international sales.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Forms of Business Ownership and Organization

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Financial Management

Filters