Deck 1: The Entrepreneurial Life

Question 1

Many small business owners fail to identify and capture new opportunities to grow their businesses.

Answer 1

True

Question 2

The primary motivation for starting a new business should be to make as much money as possible.

Answer 2

False

Question 3

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

Answer 3

False

Question 4

Successful entrepreneurs should be aware of their strengths and weaknesses and be willing to strive toward goals.

Question 5

A primary reason for becoming an entrepreneur should be to create a product or service that improves the lives of customers.

Question 6

Self-employed people are less likely to be millionaires than are those who work for others.

Question 7

Which of the following types of businesses makes up the largest sector of the South African economy?

A)​small business
B)​microbusiness
C)​lifestyle business
D)​attractive small organisation

Question 8

Franchisees could be considered to be limited entrepreneurs because they have a contract with a franchising organisation.

Question 9

Paulina's position was eliminated when the company moved its operations to another province so she started her own business.Paulina is a reluctant entrepreneur.

Question 10

Compared to large organisations, small businesses

A)play just as important if not a larger part in the economy.
B)represent less than one per cent of all organisations with employees.
C)account for 55 per cent of private payrolls.
D)generated 20-40 per cent of all new jobs in the last decade.

Question 11

The mission of XYZ Company is to reduce landfill waste by recycling plastic containers into other useful products.XYZ Company is a social entrepreneurship.

Question 12

Most entrepreneurs work shorter hours in their own businesses than they did when working for someone else because they have no boss to report to.

Question 13

​Which of the following sectors is one where women-owned businesses are performing especially well?

A)​real estate
B)​marketing
C)​financial services
D)​healthcare

Question 14

According to the text, the term entrepreneur refers to small business founders only.

Question 15

According to Stephen Covey, if we want to make important changes in our lives, we need to change from the inside out.

Question 16

The term bootstrapping refers to the practice of bartering rather than buying with cash or credit.

Question 17

An entrepreneurial team consists of the owner, the financier, and one key employee.

Question 18

According to the text, managers who buy out founders of existing organisations may be classified as entrepreneurs.

Question 19

Entrepreneurs should avoid hiring mediocre people.

Question 20

Peter had many ideas about new products but no one in his company seemed interested.So Peter left and founded his own company to create these new products.Peter is a corporate refugee.

Question 21

Henry is well respected by his employees.He models the highest integrity and encourages teamwork.What attribute does Henry display?

A)determination
B)leadership
C)risk tolerance
D)motivation

Question 22

Kevin developed a clever marketing campaign that increased his sales by 48%.Kevin is high in:

A)commitment.
B)leadership.
C)creativity.
D)risk tolerance.

Question 23

A prospective entrepreneur is evaluating the suitability of his own characteristics for an entrepreneurial career.He realises that he should be prepared to assume:

A)moderate risks.
B)no risks - that is, he should plan to operate conservatively.
C)risks similar to those a gambler assumes in Las Vegas.
D)psychological risks but not financial risks.

Question 24

Frances convinced her aunt to invest in her day spa in exchange for a percentage of the profits.Frances is:

A)taking advantage of her aunt.
B)capitalising on an opportunity.
C)conserving her own resources.
D)bootstrapping.

Question 25

By the time Jobs and Wozniak had moved out of the garage and into their first production facility, the business would have been labelled as a(n):

A)high-potential venture.
B)attractive small organisation.
C)micro-business.
D)lifestyle business.

Question 26

Gerald often would rather go fishing than work his business.Gerald lacks:

A)commitment.
B)leadership.
C)creativity.
D)tolerance of risk.

Question 27

Edward took out a second mortgage on his home to finance his new business.He makes all the decisions and keeps all the profits.Edward is:

A)bootstrapping.
B)an entrepreneur.
C)an administrator.
D)a partner.

Question 28

The entrepreneur personality thinks in terms of opportunities rather than skills.

Question 29

Thabo works as a self-employed golf pro at the local country club, allowing him to spend more time with his young family.He'll never earn much but he and his family are happy.Which type of small business does Thabo have?

A)gazelle
B)attractive small organisation
C)microbusiness
D)lifestyle business

Question 30

Good customer service can be provided by a business of any size but small entrepreneurial companies do it better.

Question 31

Adam has contracted with about a third of the dozens of artisans in his home town.His reputation has grown; he now believes the sky's the limit for this web page design and maintenance business.What kind of small business does Adam have?

A)lifestyle business
B)microbusiness
C)high-potential venture
D)attractive small organisation

Question 32

Rose operates a franchise beauty salon.Negative publicity about the effects of her beauty products has diminished her ability to grow the business.Rose has a(n):

A)high-potential venture.
B)attractive small organisation.
C)lifestyle business.
D)micro-business.

Question 33

Thandi overheard her customers discussing their desire for more baked treats suitable for diabetics.Immediately she added sugar-free items to her inventory.Thandi has strong:

A)creativity.
B)leadership.
C)opportunity obsession.
D)risk tolerance.

Question 34

Which of the following best fits the definition of a small business?

A)A manufacturer with 75 investors.
B)A hardware store franchise with 20 employees.
C)A fast food franchise with locations in three provinces.
D)A campground with gross revenues of R4 million per year.

Question 35

A business that provides substantial profits to its owner is called a(n):

A)franchise.
B)high-potential venture.
C)attractive small organisation.
D)lifestyle business.

Question 36

Small businesses that have great prospects for growth are called:

A)gorillas.
B)antelopes.
C)jaguars.
D)gazelles.

Question 37

John is so convinced he will succeed he has mortgaged his home, maxed out his credit cards, and borrowed from his retirement savings to finance his business.John is:

A)high in commitment.
B)high in leadership.
C)high in creativity.
D)high in risk tolerance.

Question 38

An entrepreneurial legacy is limited to the tangible assets of the business.

Question 39

David believes now is the time to launch his welding business since the only competitor has just announced his retirement.David has identified:

A)an entrepreneurial opportunity.
B)a bootstrap opportunity.
C)a small business opportunity.
D)a lifestyle business opportunity.

Question 40

Using the criteria in the text to define a small business, Table Occasions will not be considered a small business once the company:

A)is financed by three individuals.
B)has sales greater than 20% of other organisations in the industry.
C)is operating in numerous provinces.
D)has 50 employees.

Question 41

A camera hobbyist starts a photographic supplies store.The most obvious reward for this entrepreneur is the opportunity to:

A)serve other photography enthusiasts.
B)enjoy satisfying work.
C)be independent.
D)work with people.

Question 42

When a Fortune 500 business lays off workers, some displaced employees may decide to start their own businesses.They are best described as

A)foreign refugees.
B)welfare profiteers.
C)corporate entrepreneurs.
D)reluctant entrepreneurs.

Question 43

The first goal of an entrepreneur should be:

A)to meet financial goals.
B)to maximise shareholder wealth.
C)to operate the business ethically.
D)to create a product or service that improves the lives of others.

Question 44

Luke recently opened a shop to repair antique furniture.Which of the following best describes Luke?

A)founder
B)general manager
C)franchisee
D)two of the above are correct.

Question 45

Vincent's business has grown; he now employs 14 people.He enjoys teaching new employees the skills they need to make his products.One of Vincent's reasons for being in business for himself is:

A)personal satisfaction.
B)independence.
C)financial rewards.
D)being the best he can be.

Question 46

Oscar wants everything in his restaurant to be perfect so he points out every little mistake his servers make.He has high turnover among his staff.Why?

A)Oscar is a domineering manager.
B)Oscar is not a team player.
C)Oscar lacks risk tolerance.
D)Oscar does not know his market.

Question 47

Roshni was laid off from her manufacturing job and in desperation launched a business providing transportation services for the non-drivers in her community.We would classify Roshni as:

A)a social entrepreneur.
B)a creative entrepreneur.
C)a corporate refugee.
D)a reluctant entrepreneur.

Question 48

Natalie enjoyed yarn crafts so she opened a yarn and craft store in her small town.Sales have been dismal; few people visit her store.What mistake did Natalie make?

A)She overestimated what she could do.
B)She lacked an understanding of the market.
C)She hired mediocre people
D)She failed to share ownership.

Question 49

Sally, a single mother, opened a florist shop to support her family after losing her job in a corporate layoff.She is a(n)

A)woman without a portfolio.
B)parental refugee.
C)reluctant entrepreneur.
D)independent refugee.

Question 50

Ronald operates a fast-food restaurant.He is under contract to the organisation under whose name he does business.The contract limits what Ronald can do with his business.Ronald is a:

A)franchisor.
B)franchisee.
C)contract employee.
D)partner in an LLC.

Question 51

Paula launched a new business designing and producing embroidered goods.Paula is:

A)a founder.
B)an entrepreneur.
C)both a founder and an entrepreneur.
D)neither a founder nor an entrepreneur.

Question 52

Martin expected to build his direct sales business to the point that he can quit his day job after six months.Five months later he barely has any customers.Martin:

A)has overestimated what she can do.
B)knows his market well.
C)is a domineering manager.
D)should take on a partner.

Question 53

Lydia works as a senior network administrator and is dissatisfied with the stifling bureaucratic environment of her job.She is considering venturing out on her own as a consultant.If she carries through with her intentions, she would be considered a(n)

A)corporate pariah.
B)entrepreneurial dilettante.
C)bureaucratic emigrant.
D)corporate refugee.

Question 54

The daughter of the owner of a large business disliked her father's criticism and eventually decided to quit the family business and start her own business.The daughter is a

A)corporate opportunist.
B)gazelle.
C)reluctant entrepreneur.
D)corporate refugee.

Question 55

Ursula feels trapped in her dead-end job in a large company.She daydreams about opening her own boutique at the seashore.Ursula is:

A)a social entrepreneur.
B)a reluctant entrepreneur.
C)a corporate refugee.
D)a bureaucrat.

Question 56

Bill Gates and Steve Ballmer, founders of Microsoft, would be considered:

A)franchisors.
B)franchisees.
C)an entrepreneurial team
D)sole proprietors.

Question 57

Valencia 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)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 58

Laurence has set for his business the goal of increasing revenues by 20% and profits by 15% by the end of the year.Laurence is likely high in:

A)risk tolerance.
B)opportunity obsession.
C)leadership.
D)motivation to excel.

Question 59

A prospective entrepreneur wants to find a career doing what she enjoys most.She might be drawn to try an entrepreneurial venture

A)to enjoy satisfying work.
B)for substantial long-term profits.
C)to have freedom from a managerial hierarchy.
D)for a sense of self-esteem.

Question 60

Sabrina has figured out how to recycle clear plastic bottles into woven fabric and has launched a new business.Sabrina is:

A)an entrepreneurial team member.
B)a social entrepreneur.
C)risk averse.
D)a franchisee.

Question 61

Zelda worked for years in a medical clinic as a biller and coder.Now she operates her own billing service for several doctors.Zelda has a(n) ___________ personality.

A)technician
B)manager
C)entrepreneur
D)artisan

Question 62

Explain the advantages of a social entrepreneurship.Give an example of such a business.

Question 63

Sometimes entrepreneurs spend so much time and energy building the business that relationships are destroyed.Which phrase best describes this misfortune?

A)Some sacrifices are necessary for the greater good.
B)You've got to give a little to get a little.
C)What goes around comes around.
D)It's possible to score points in the wrong game.

Question 64

Godfrey places great emphasis on operating his business to the highest standards of honesty and ethics.Godfrey likely believes:

A)the end justifies the means.
B)how you achieve is as important as what you achieve.
C)the customer is always right.
D)good guys finish last.

Question 65

Eva opened a small boutique catering to a very narrowly defined target market.Eva's competitive edge is:

A)the niche market.
B)customer focus.
C)quality performance.
D)innovation.

Question 66

Malinda wants to start a restaurant in her city of about 50 000 people.There are already 325 restaurants in this city.Malinda's reasons include that she is a good cook who enjoys working in the kitchen and she wants to involve her three children aged 9 to 15 in the venture.She has not decided what types of foods she will offer.
If Malinda launches this business, do you think it will succeed? Why or why not? What advice would you give her?

Question 67

Legend holds that Abraham Lincoln walked miles to return two cents change to a customer.His actions demonstrate:

A)customer focus.
B)quality performance.
C)integrity and responsibility.
D)social entrepreneurship.

Question 68

Although Abe started the business by making his own product, his greater talent is planning for the future and arranging for growth.Abe has a(n)___________ personality.

A)technician
B)manager
C)entrepreneur
D)opportunistic

Question 69

Entrepreneurs are more likely than large companies to capitalise on innovations because:

A)entrepreneurs have more time to be creative.
B)larger businesses must satisfy shareholders and cannot take risks.
C)entrepreneurs are more likely to find grants for research.
D)larger businesses may be too focused on existing products.

Question 70

Ben seems to have the Midas touch.He can recognise opportunity where others see only problems.His focus is on creating solutions for customers.Ben has a(n) _____________ personality.

A)technician
B)manager
C)entrepreneur
D)opportunistic

Question 71

Walter wanted to be able to make decisions about issues that directly affected his department but in his company, the managers made all the decisions.So Walter left the company and started his own business.Walter was looking for:

A)personal fulfilllment.
B)personal satisfaction.
C)independence.
D)financial rewards.

Question 72

Discuss similarities and differences of entrepreneurs and small business owners.

Question 73

Define entrepreneurial opportunity.Using one of the three success stories in Section 1-2b, explain how the owners identified their opportunity.

Question 74

Flora built her business from two employees to over 2 000 during her 30 years in business.She was able to endow a scholarship fund to the community college and to leave her children a perpetual income.We call this her:

A)corporate responsibility.
B)social mission.
C)good citizenship.
D)entrepreneurial legacy.

Question 75

Roy believed his labour was only making others rich while he struggled from salary to salary.He started his own small business and now labours only for himself.Roy's motivation is:

A)personal fulfillment.
B)personal satisfaction.
C)independence.
D)financial rewards.

Question 76

A corporate manager chafes under red tape and bureaucratic regulations until finally deciding to start a separate business.The apparent reward he seeks is

A)community service.
B)a satisfying way of life.
C)independence.
D)the satisfaction of working with people.

Question 77

Explain the nature of and differences among micro-businesses, attractive small businesses, and high-potential ventures.

Question 78

A significant number of entrepreneurs are motivated by

A)an easy life.
B)financial rewards.
C)freedom from long hours.
D)job security.

Question 79

Chris knew his small local hardware could not compete on price with the big-box discounters so he began offering classes for new homeowners and found other ways to provide services the bigger stores don't.Chris's competitive edge is:

A)customer focus.
B)quality performance.
C)innovation
D)niche markets.

Question 80

Diana was disappointed with mass-produced children's clothing that fell apart after a couple washings so she and her few employees began making garments that would hold together until they were outgrown.Diana's competitive edge is:

A)customer focus.
B)quality performance.
C)niche markets.
D)integrity and responsibility.