Deck 2: Individual Leadership and Entrepreneurial Start-Ups

Question 1

Large companies have excess resources to assist them. This excess is called boundaries unlimited.

Answer 1

False

Question 2

A new entrepreneurial business has many formal procedures to follow.

Answer 2

False

Question 3

A small business has less flexibility to respond to change than a large company.

Answer 3

False

Question 4

The agency theory implies that a small business owner is more likely to go on the Internet to find the cheapest travel ticket available in order to save money for the business.

Question 5

The profit point is when a new business has reached a level where revenue coming into the firm is sufficient to cover expenses.

Question 6

There is always a certain level of risk that an owner wants to assume.

Question 7

A Myers-Briggs test indicates the correct way that individuals should deal with other people and their environments.

Question 8

Starting a new business could result from a particular event or condition within an individual's environment.

Question 9

Two triggers for starting a new business are personal motivators and circumstance motivators.

Question 10

Small business owners who are driven by circumstance motivators are more proactive and persistent toward their goal.

Question 11

There are formal rules that must be followed in setting up the glass ceiling in an organization.

Question 12

According to the book, the greatest contribution to a small business owner's success is that they start a business they enjoy.

Question 13

A small business has _________ formal procedures as compared to a larger firm to operate the company.

A) many
B) few
C) same
D) proportionate

Question 14

A small business owner plays a _________ critical role than the senior leadership of a large company.

A) more
B) less
C) same
D) proportionate

Question 15

All of these are advantages for a small business EXCEPT:

A) respond quickly to changes
B) owned and run by the same person
C) economies of scale
D) greater flexibility

Question 16

A small business owner decides to take a cheaper flight to go to his yearly conference instead of a flight that was at a better time. This decision is a form of _________.

A) agency theory
B) organizational benefit theory
C) cost savings ratio
D) inverse benefits

Question 17

What is the term used to describe a new business that has reached a level where revenue coming into the firm is sufficient to cover expenses?

A) equal financial ratio
B) no risk level
C) risk tolerance
D) break-even point

Question 18

_________ lets individuals from outside an industry establish a new business in a way not previously considered.

A) Logic rationality
B) Constricted rationality
C) Unconstricted rationality
D) Bounded rationality

Question 19

All of the following are triggers to start a new business EXCEPT:

A) being laid off
B) intolerable risk level
C) very little to lose financially by a failure
D) experiencing a mid-life crisis

Question 20

Glass ceilings in large corporations involve _________.

A) formal rules
B) limits to the level of opportunity in the corporate hierarchy
C) unblocked opportunities
D) no particular pattern for advancement

Question 21

A small business owner should examine the _________ supports before starting a business.

A) family
B) social networks
C) community
D) all of these

Question 22

In a family business, an owner should choose family members who provide support. The main reason is:

A) members are related
B) members give positive/negative comments
C) don't have to pay them as much
D) family member slack

Question 23

According to the book, the greatest contributor to an owner's success is _________.

A) the owner doing something they enjoy
B) opportunities not available in large company
C) spending less time at work
D) no risk involved

Question 24

According to the book, what is the greatest asset of a small business?

A) investor
B) stakeholder
C) manager
D) owner

Question 25

According to the book, which of the following personality tests is most widely used in universities?

A) Enneagram
B) Myers-Briggs
C) Big Five
D) Both Myers-Briggs and Big Five

Question 26

According to the book, there are three elements of entrepreneurial orientation. Which of the following is NOT one of those elements?

A) passionate about your product or service
B) prior experience
C) personality orientation
D) risk tolerance

Question 27

According to the book, which of the following is an example of circumstance motivators?

A) Individuals are laid off, are demoted, or are forced to take reduced pay by their prior employer.
B) People start their own company because they have a passion for their product or service.
C) Women, who are the fastest growing group of small business owners, who want to achieve their dreams.
D) People start their own company because they want to be their own boss.

Question 28

In the Philly Pretzel and Dan Dizio case study, Dan Dizio funded his venture with:

A) an angel investment
B) venture Capital
C) credit card debt
D) small business loan

Question 29

In the Friend's Home Health case study, the three potential entrepreneurs evaluated their personal motivation and risk orientations. They found that:

A) they were all equally compatible
B) Betty and Joan were more compatible as partners than either was with Bob
C) Bob and Joan were more compatible as partners than either was with Betty
D) none of them were compatible

Question 30

Organizational _________ is excess resources in an organization, typical of large organizations, but not of small businesses.

Question 31

Potential entrepreneurs need to consider which three areas in starting a new business?

Question 32

Distinguish between personal motivators and circumstance motivators and give examples.

Question 33

What are circumstance motivators? Explain your answer and provide examples.