Question 1

According to the U.S. Small Business Administration, a common delineation of a small business is one that employs fewer than ________ people.

Accepted Answer

A)  50 
B)  100 
C)  250 
D)  500 
A)  50 
B)  100 
C)  250 
D)  500

Question 2

Technology offers a significant advantage for entrepreneurs.

Accepted Answer

A) True 
 B)False

Question 3

International opportunities are ________.

Accepted Answer

A)  clearly out of reach for entrepreneurial businesses 
B)  now within the reach of entrepreneurial businesses and may present significant opportunities 
C)  highly limited for entrepreneurs 
D)  risky and do not merit serious consideration by the entrepreneur 
A)  clearly out of reach for entrepreneurial businesses 
B)  now within the reach of entrepreneurial businesses and may present significant opportunities 
C)  highly limited for entrepreneurs 
D)  risky and do not merit serious consideration by the entrepreneur

Question 4

The opportunity to reap impressive profits is the primary motivation for most entrepreneurs.

Accepted Answer

A) True 
 B)False

Question 5

Too many entrepreneurs start their business undercapitalized.

Accepted Answer

A) True 
 B)False

Question 6

Melinda and John Perez, both corporate attorneys in New York City, have grown tired of their lengthy daily commute, the stress of their jobs, and the overbearing policies of their employers. They have decided to leave their six-figure jobs and together open a guide service in Wyoming. Melinda and John are examples of ________.

Accepted Answer

A)  corporate castoffs and corporate dropouts 
B)  corporate dropouts and copreneurs 
C)  corporate castoffs and copreneurs 
D)  copreneurs and serial entrepreneurs 
A)  corporate castoffs and corporate dropouts 
B)  corporate dropouts and copreneurs 
C)  corporate castoffs and copreneurs 
D)  copreneurs and serial entrepreneurs

Question 7

If an entrepreneur has a good enough product or service to sell, a business plan is not really necessary since the product or service will sell itself.

Accepted Answer

A) True 
 B)False

Question 8

Family-owned and managed businesses account for 78 percent of all new jobs.

Accepted Answer

A) True 
 B)False

Question 9

The majority of small companies are concentrated in the ________ and ________ industries.

Accepted Answer

A)  manufacturing; retail 
B)  manufacturing; service 
C)  retail; service 
D)  wholesale; retail 
A)  manufacturing; retail 
B)  manufacturing; service 
C)  retail; service 
D)  wholesale; retail

Question 10

Most home-based businesses are simple cottage industries such as crafts or sewing.

Accepted Answer

A) True 
 B)False

Question 11

Expanding a business usually requires no significant changes in structure or business practices.

Accepted Answer

A) True 
 B)False

Question 12

Small companies ________.

Accepted Answer

A)  created fewer jobs than big companies in the last decade 
B)  are concentrated in the manufacturing and retail sectors 
C)  are the leaders in offering training and advancement opportunities to workers 
D)  account for approximately 10 percent of the nation's GDP and 25 percent of business sales 
A)  created fewer jobs than big companies in the last decade 
B)  are concentrated in the manufacturing and retail sectors 
C)  are the leaders in offering training and advancement opportunities to workers 
D)  account for approximately 10 percent of the nation's GDP and 25 percent of business sales

Question 13

The profile of an entrepreneur includes ________.

Accepted Answer

A)  a desire for responsibility and moderate risk 
B)  confidence in the ability to succeed and determination 
C)  a high level of energy, a desire for immediate feedback and a future orientation 
D)  All the above 
A)  a desire for responsibility and moderate risk 
B)  confidence in the ability to succeed and determination 
C)  a high level of energy, a desire for immediate feedback and a future orientation 
D)  All the above

Question 14

One of the most significant economic developments in recent business history relates to the ________.

Accepted Answer

A)  growth of blue-chip corporations 
B)  development of Pacific Rim countries 
C)  entrepreneurial spirit 
D)  additional employment opportunities offered by government institutions 
A)  growth of blue-chip corporations 
B)  development of Pacific Rim countries 
C)  entrepreneurial spirit 
D)  additional employment opportunities offered by government institutions

Question 15

Increased entrepreneurial activity is a phenomenon unique to the U.S.

Accepted Answer

A) True 
 B)False

Question 16

The following lists the ten deadly mistakes of entrepreneurship:
1. Management mistakes
2. Lack of experience
3. Poor financial control
4. Weak marketing efforts
5. Failure to develop a strategic plan
6. Uncontrolled growth
7. Poor location
8. Improper inventory control
9. Incorrect pricing
10. Inability to make the entrepreneurial transition
Select one of these deadly mistakes, describe what it may look like for the entrepreneur, and give an example.

Accepted Answer

1. Management Mistakes-Primary cause of

Question 17

All of the following are characteristics of the typical entrepreneur except ________.

Accepted Answer

A)  confidence in his/her ability to succeed 
B)  value of money over achievement 
C)  desire for immediate feedback 
D)  a future orientation 
A)  confidence in his/her ability to succeed 
B)  value of money over achievement 
C)  desire for immediate feedback 
D)  a future orientation

Question 18

Factors that feed the economic boom behind entrepreneurship include ________.

Accepted Answer

A)  demographic and economic factors 
B)  technology and cloud computing 
C)  the shift to a service-based economy and international opportunities 
D)  All of the above 
A)  demographic and economic factors 
B)  technology and cloud computing 
C)  the shift to a service-based economy and international opportunities 
D)  All of the above

Question 19

There is concern over the future of entrepreneurship because so few high school and college students want to start their own companies.

Accepted Answer

A) True 
 B)False

Question 20

Entrepreneurs can increase their chances for success if they ________.

Accepted Answer

A)  know their business in depth and develop a solid business plan 
B)  manage their financial resources and understand financial statements 
C)  learn to manage people and keep in touch with how they react to stress and balance their health needs with the needs of the business 
D)  All of the above 
A)  know their business in depth and develop a solid business plan 
B)  manage their financial resources and understand financial statements 
C)  learn to manage people and keep in touch with how they react to stress and balance their health needs with the needs of the business 
D)  All of the above

According to the U.S. Small Business Administration, a common delineation of a small business is one that employs fewer than ________ people.

Technology offers a significant advantage for entrepreneurs.

International opportunities are ________.

The opportunity to reap impressive profits is the primary motivation for most entrepreneurs.

Too many entrepreneurs start their business undercapitalized.

If an entrepreneur has a good enough product or service to sell, a business plan is not really necessary since the product or service will sell itself.

Family-owned and managed businesses account for 78 percent of all new jobs.

The majority of small companies are concentrated in the and industries.

Most home-based businesses are simple cottage industries such as crafts or sewing.

Expanding a business usually requires no significant changes in structure or business practices.

Small companies ________.

The profile of an entrepreneur includes ________.

One of the most significant economic developments in recent business history relates to the ________.

Increased entrepreneurial activity is a phenomenon unique to the U.S.

All of the following are characteristics of the typical entrepreneur except ________.

Factors that feed the economic boom behind entrepreneurship include ________.

There is concern over the future of entrepreneurship because so few high school and college students want to start their own companies.

Entrepreneurs can increase their chances for success if they ________.

Ethics and Social Responsibility: Doing the Right Thing

Inside the Entrepreneurial Mind: From Ideas to Reality

Conducting a Feasibility Analysis and Designing a Business Model

Crafting a Business Plan and Building a Solid Strategic Plan

Forms of Business Ownership and Buying an Existing Business

Franchising and the Entrepreneur

Building a Powerful Bootstrap Marketing Plan

E-Commerce and the Entrepreneur

Pricing and Credit Strategies

Creating a Successful Financial Plan

Managing Cash Flow

Sources of Financing: Debt and Equity

Choosing the Right Location and Layout

Global Opportunities

Building a Team and Management Succession

Filters

Exam 1: The Foundations of Entrepreneurship

According to the U.S. Small Business Administration, a common delineation of a small business is one that employs fewer than ________ people.

Technology offers a significant advantage for entrepreneurs.

International opportunities are ________.

The opportunity to reap impressive profits is the primary motivation for most entrepreneurs.

Too many entrepreneurs start their business undercapitalized.

If an entrepreneur has a good enough product or service to sell, a business plan is not really necessary since the product or service will sell itself.

Family-owned and managed businesses account for 78 percent of all new jobs.

The majority of small companies are concentrated in the ________ and ________ industries.

Most home-based businesses are simple cottage industries such as crafts or sewing.

Expanding a business usually requires no significant changes in structure or business practices.

Small companies ________.

The profile of an entrepreneur includes ________.

One of the most significant economic developments in recent business history relates to the ________.

Increased entrepreneurial activity is a phenomenon unique to the U.S.

All of the following are characteristics of the typical entrepreneur except ________.

Factors that feed the economic boom behind entrepreneurship include ________.

There is concern over the future of entrepreneurship because so few high school and college students want to start their own companies.

Entrepreneurs can increase their chances for success if they ________.

Ethics and Social Responsibility: Doing the Right Thing

Inside the Entrepreneurial Mind: From Ideas to Reality

Conducting a Feasibility Analysis and Designing a Business Model

Crafting a Business Plan and Building a Solid Strategic Plan

Forms of Business Ownership and Buying an Existing Business

Franchising and the Entrepreneur

Building a Powerful Bootstrap Marketing Plan

E-Commerce and the Entrepreneur

Pricing and Credit Strategies

Creating a Successful Financial Plan

Managing Cash Flow

Sources of Financing: Debt and Equity

Choosing the Right Location and Layout

Global Opportunities

Building a Team and Management Succession

Filters

The majority of small companies are concentrated in the and industries.