Deck 2: Entrepreneurship

Question 1

The purpose of starting a business is to satisfy customers.

Answer 1

True

Question 2

At the end of the day, entrepreneurs' successes will depend on their ability to manage and grow the organizations that they created to implement their visions.

Answer 2

True

Question 3

There are more than 40 million small businesses in the United States.

Answer 3

False

Question 4

Entrepreneurs usually start _____, beginning with _____ resources.

A)at the bottom / limited
B)small / limited
C)independently / specialized
D)small / patented

Question 5

As someone who has identified a business opportunity and assumed the risk of creating and running a business to take advantage of it, Rick Jurmain is an entrepreneur.

Question 6

Explain why some individuals become entrepreneurs.

Question 7

While many _____ ventures are based on innovative ideas, others revolve around improvements to existing goods or services.

A)franchise
B)not-for-profit
C)governmental
D)entrepreneurial

Question 8

Which of the following is not a reason that prevents some people from starting a business?

A)Don't want to sacrifice a steady income
B)Don't have the money to start a business
C)Lack of a good business idea
D)To enjoy creative freedom

Question 9

Which of the following is a characteristic of an entrepreneur?

A)Is confident in their innovation or business idea
B)Is willing to work under a certain degree of uncertainty
C)Avoids risk
D)Has the flexibility to adjust to changing situations

Question 10

Innovators at large businesses are the primary driving force behind the discovery of new ways of doing old things.

Question 11

According to the Small Business Administration, one of the most common reasons for starting a business is to _____.

A)be your own boss
B)develop managerial skills
C)achieve financial security
D)manage team-oriented projects

Question 12

Over the last two decades, women have become the majority of small business owners.

Question 13

Which of the following best describes entrepreneurs?

A)They're usually onetime managers who open up a business for the sole purpose of providing an income for themselves and their family
B)They're retired businesspeople working on a voluntary basis.
C)They're risk takers who can adjust to changing situations.
D)None of the above

Question 14

Clarke Santiago and his wife Teresa, parents of two children, opened a buffet restaurant last year.They've been so successful with their family-style atmosphere that some investor friends have offered funding to expand into two additional locations.The investors also want to consider opening several more restaurants each year.After thinking it over, the Santiagos decided to stick with one restaurant and add catering services-a move that should provide them with a satisfactory income.The Santiagos' business is a good example of a _____.

A)lifestyle business
B)start-up business
C)sole proprietorship
D)franchise

Question 15

It is unlikely that you'd decide to set up a new company to make cars.

Question 16

Marcia Kilgore's first business was called "Bliss Spa." After selling this business for $30 million, she launched two more companies, Soap and Glory and FitFlops.Her newest company is Beauty Pie.Marcia Kilgore is:

A)someone who has had several unsuccessful companies
B)a woman who is unable to start businesses that appeal to men
C)a serial entrepreneur
D)an individual who has started several lifestyle businesses

Question 17

The success of small businesses in fostering creativity has caused many large companies to respond by downsizing in order to act more like small companies.

Question 18

A(n) _____ is someone who identifies a business opportunity and assumes the risk of creating and running a business to take advantage of it.

A)executive
B)marketer
C)entrepreneur
D)small business owner

Question 19

Entrepreneurs usually start with few resources but build their businesses with the collective help of family members and investors.

Question 20

Entrepreneurs typically copy what is being done by others rather than take changing situations into account.

Question 21

Owners of small businesses are responsible for much of the _____ of U.S.business.

A)short-term debt
B)healthcare shortfall
C)wage escalation
D)product innovation

Question 22

The majority of Americans entered the business world by working for _____, which are constantly creating jobs and providing opportunities for a vast number of workers.

A)franchises
B)small businesses
C)entrepreneurs
D)sole proprietorships

Question 23

Small businesses in the U.S.generate close to 50% of our gross domestic product (GDP).

Question 24

Small businesses do all of the following except ________

A)Create jobs
B)Spark innovation
C)Provide opportunities for many people, including women and minorities
D)Develop very few patents

Question 25

The past two decades have seen a _____ in the number of businesses owned by women and minorities.

A)substantial increase
B)substantial decrease
C)moderate decrease
D)moderate increase

Question 26

Although the split between those working in small companies and those working in big companies is about even, large companies:

A)hire less frequently and fire less frequently than small companies.
B)develop more patents per employee than small companies.
C)offer employees a more innovative-friendly environment than small companies.
D)are more likely than small firms to offer U.S.workers their first job when they enter the business world.

Question 27

The success of small businesses in fostering creativity has gone unnoticed by big businesses.

Question 28

Small business output in the United States generates about _____ of our gross domestic product.

A)10 percent
B)90 percent
C)50 percent
D)75 percent

Question 29

_____ companies provide valuable services to _____ companies by acting as sales agents for their products.

A)Large / small
B)Small / large
C)Wholesale / retail
D)Entrepreneurial / corporate

Question 30

A company is considered large if it _____.

A)dominant in its field
B)is independently owned and operated
C)demonstrates sustained growth
D)has been in existence for more than ten years

Question 31

More than three-fourths of all U.S.adults are either self-employed or work for small businesses.

Question 32

Small businesses like Gonzalez's account for about 50 percent of the U.S.gross domestic product each year.

Question 33

_____ tend to offer environments that appeal to individuals with the talent to invent new products or improve the way things are being done.

A)Small businesses
B)Free markets
C)Family-owned businesses
D)Sole proprietorships

Question 34

The majority of small businesses are owned by ____.

A)white females
B)black males
C)white males
D)black females

Question 35

The Small Business Administration defines a small business as one that is _____.

A)either a for-profit or not-for-profit organization
C)has no more than 100 employees
D)owned and operated by a multinational company

Question 36

Scenario-Based
Mary Gonzalez recently expanded her chain of flower shops.As the only small flower shop located in major airports in the Midwest, she has a unique operation.She has 72 employees in 30 shops, and although her company isn't dominant in its industry, her shops are busy year round.To accommodate her unique clientele, Mary developed the idea of packaging flowers in small waterproof pots that won't leak either in the airport or aboard planes.
Gonzalez's company should be considered a small business.

Question 37

Many small firms provide _____ services to large firms-that is, they hire themselves out to help with special projects or to handle certain business functions.

A)franchising
B)entrepreneurial
C)supplemental
D)outsourcing

Question 38

Gonzalez's shop managers regularly think of new ways to market their products, improve their quality, keep them fresher, and meet consumer needs.In this respect, Gonzalez's business is unusual among small businesses.
Essay Discussion

Question 39

Gonzalez's business is not a small business because it's unique in the flower-shop industry.

Question 40

Because Gonzalez's company is independently operated, the Small Business Administration would consider it a large business.

Question 41

A survey conducted by the Wall Street Journal indicates that, by and large, small business owners have had more satisfying business experiences than they would have had as top-level executives.

Question 42

The largest areas of the goods-producing sector are construction and manufacturing.

Question 43

Among small businesses, the service-producing sector is larger than the goods-producing sector.

Question 44

The goods-producing sector is home to only 20 percent of all small businesses, the majority of which are in _____.

A)construction and manufacturing
B)food service
C)direct marketing
D)retailing

Question 45

A small business that buys flowers from a local grower and sells them to a grocery store is an example of a wholesaler.

Question 46

Unfortunately for small business, the service-producing sector has been steadily decreasing in revenues over the past 10 years.

Question 47

The service-producing sector includes manufacturing, construction, and agriculture.

Question 48

In what ways do small businesses help the U.S.economy?

Question 49

In what industries are small businesses concentrated?

Question 50

Because Green Thumb Landscapers buys goods from other firms and sells them to consumers, the company is a retailer.

Question 51

A rewarding aspect of being a business owner is that you can't get fired-an advantage that comes under the heading of "Creative Freedom and Personal Satisfaction."

Question 52

About 80 percent of small businesses in the U.S.are concentrated in the _____ sector.

A)goods-producing
B)retail
C)service-producing
D)professional

Question 53

To understand where _____ businesses are concentrated, you need to divide them into the goods-producing sector and the service-producing sector.

A)struggling
B)small
C)profitable
D)innovative

Question 54

A small business that buys goods from other firms and sells them to consumers is known as a _____.

A)wholesaler
B)retailer
C)distributor
D)franchiser

Question 55

A local bakery is acting as a _____ when it sells desserts to a restaurant.

A)wholesaler
B)retailer
C)franchiser
D)franchisee

Question 56

One advantage of working for someone else is the likelihood of making more money than if you were running your own business.

Question 57

In which industries would you find a heavy concentration of small businesses?

A)Veterinary services
B)Florist
C)Aluminum manufacturing
D)Both (a) and (b)

Question 58

Manufacturing is primarily the domain of _____ businesses.

A)professional
B)midsize
C)large
D)multinational

Question 59

If you want to start a new business, which of the following enterprises would be the best choice?

A)Automobile manufacturer
B)Aluminum processor
C)Steel refinery
D)Car dealership

Question 60

Because an owner can delegate both authority and responsibility, entrepreneurs often have more free time than people who work for someone else.

Question 61

When buying a franchise, the business owner must pay a monthly royalty fee but typically reserves the right to buy core products from other suppliers.

Question 62

The first step before actually starting a business is to get financing.

Question 63

Starbucks' Howard Schultz is an example of a person who came up with a business idea as a result of a hobby.

Question 64

If you purchase a business, it is lawful for the previous owner to set up a competing business that draws its former and your current customers away from you _____.

A)only by paying a stipulated fee
B)any time he or she wants
C)only after a stipulated time
D)only in a mutually agreed-upon location

Question 65

A survey conducted by the Wall Street Journal indicates that _____ have a more satisfying business experience.

A)top-level executives
B)small business owners
C)franchise owners
D)team members

Question 66

Which of the following is among the rewards of being a small business owner?

A)Freedom from fiscal responsibility
B)Free time
C)Freedom from job-related stress
D)Lifestyle freedom

Question 67

Which of the following is not an advantage of buying an existing business?

A)You have a proven product
B)You have access to current cash flow.
C)You have a list of suppliers that you can use
D)You will inherit trained employees.

Question 68

Summarize the advantages and disadvantages of business ownership.

Question 69

Franchises are considered an easy, cost-efficient way to start your own business.

Question 70

If he bought a local combination miniature golf course and driving range, Bernard Blanco would find that buying an existing business is an easier option than starting from scratch.

Question 71

Which of the following is among the disadvantages of small business ownership?

A)Lifestyle uncertainty
B)Steep learning curve
C)Heavy time commitment
D)Family values

Question 72

Buying a franchise is the most common, though riskiest, option for starting a new business.

Question 73

Which of the following is the most common but riskiest option in becoming a small business owner?

A)Marketing an unknown product
B)Starting from scratch
C)Obtaining a franchise
D)Buying an existing business

Question 74

Which of the following is an advantage to starting a business?

A)Financial security
B)Avoidance of unpleasant work tasks
C)Opportunity to gain an understanding of all aspects of a business
D)Lower stress level

Question 75

Franchises generally don't include such complex products as hotels.

Question 76

Franchises are often quite _____.

A)legally simple
B)easily acquired
C)attractive from a tax standpoint
D)expensive

Question 77

As a business owner, you're in charge and can decide when and where you want to work.This managerial freedom best reflects the _____ advantage of small business ownership.

A)financial
B)intellectual
C)time-management
D)lifestyle

Question 78

As a business owner, you're responsible for making the decisions that pertain to the profitability of your business.This decision-making freedom best reflects the _____ advantage of small business ownership.

A)independence
B)first-mover
C)lifestyle
D)financial

Question 79

Which of the following is the most common but riskiest option in becoming a small business owner?

A)Marketing an unknown product
B)Starting from scratch
C)Obtaining a franchise
D)Buying an existing business

Question 80

Which of the following is an advantage of buying an existing business?

A)You can identify competitors.
B)You have access to current cash flow.
C)You can identify suppliers.
D)You will inherit employees.