Deck 6: Entrepreneurship and Starting a Small Business

Question 1

Entrepreneurship is another name for management.

Answer 1

False

Question 2

Entrepreneurs are less important now than in the past to the U.S. economy.

Answer 2

False

Question 3

Potential entrepreneurs would be well advised to surround themselves with people who are smarter than they are.

Answer 3

True

Question 4

Successful entrepreneurs accept the risk of failure.

Question 5

Because of the stress of being in business for yourself, it's important that entrepreneurs have people around them to help replenish their enthusiasm.

Question 6

Entrepreneurs take calculated risks.

Question 7

Entrepreneurial teams combine the creative marketing and production ideas of a group of experienced people.

Question 8

Entrepreneurs avoid risk and place a high priority on security.

Question 9

Most entrepreneurs get the ideas for their products and services from a flash of inspiration.

Question 10

Entrepreneurship involves accepting the risk of starting and running a business.

Question 11

An entrepreneurial team is a group of experienced managers who share the same skills and abilities.

Question 12

Most entrepreneurs are more interested in personal achievement than in power.

Question 13

While entrepreneurs frequently earn significant profits for themselves, their impact on society is quite small.

Question 14

Many businesses started by entrepreneurs have grown into major corporations employing thousands of workers.

Question 15

Successful entrepreneurs rely on others for direction and support.

Question 16

If you have managerial skills and leadership ability, you also posses the personality to be an entrepreneur.

Question 17

It is important for an entrepreneur to be highly energetic.

Question 18

Most entrepreneurs prefer working for someone else.

Question 19

Entrepreneurs are motivated by the desire to earn a profit.

Question 20

According to the Spotlight on Small Business box, people between 16 to 34 years old are not attracted to starting their own business.

Question 21

Successful micropreneurs require self-discipline to separate work from family responsibilities.

Question 22

Entrepreneurial spirit is unique to a small business environment.

Question 23

By passing the Immigration Act of 1990, the U.S. government acted to encourage entrepreneurs to immigrate to the United States.

Question 24

One advantage enjoyed by home-based businesses is the relative ease in attracting new customers.

Question 25

Micropreneurs is a term used to describe entrepreneurs who focus on the continued growth of their businesses.

Question 26

The primary concern of micropreneurs is to balance the risk of starting your own business with the desire to build a powerful organization earning significant profits.

Question 27

Advancements in computer technology put home-based businesses at a disadvantage.

Question 28

An intrapreneur is the creative person who starts and manages a nonprofit organization.

Question 29

Large organizations encourage intrapreneurship as a strategy to improve their profitability through new products.

Question 30

Small businesses have not significantly participated in web-based online sales.

Question 31

The most important difference between entrepreneurs and micropreneurs is the focus placed by micropreneurs on balancing the demands of work and family.

Question 32

Micropreneurs are exempt from the local ordinances that restrict home-based businesses from operating in residential areas.

Question 33

Many micropreneurs operate home-based businesses in the service industry.

Question 34

Successful entrepreneurs often make use of professional managers to introduce new ideas.

Question 35

The Internet provides a resource for entrepreneurs for information regarding the steps needed to take their business online.

Question 36

Web-based businesses avoid the risk of failure faced by traditional start-up businesses.

Question 37

Micropreneurs are motivated by a desire to have both a satisfying family life and rewarding work.

Question 38

Creative people working as entrepreneurs within a large organization are called intrapreneurs.

Question 39

Corporate downsizing reduces the opportunities for home-based businesses.

Question 40

Many micropreneurs are home-based business owners.

Question 41

Independence, challenge, and opportunity are among the key reasons given by those who assume the risks of entrepreneurship.

Question 42

Juanita wants to operate her own business. Although she admits it would be nice to earn a healthy profit, her primary motivation is the excitement and challenge of starting and running a business. Juanita's attitude is different from most small business owners, who usually focus solely on the earnings potential of their ventures, as well as the opportunity to acquire power and prestige.

Question 43

Business incubators provide assistance to established companies attempting to generate foreign sales.

Question 44

Jon received a letter in the mail explaining that HE COULD EARN THOUSANDS!!!! by working just a few hours from home. Most likely Jon's letter was a work-at-home scam.

Question 45

Anthony is an employee of a textbook publisher. However, his desire is to establish a home-based business providing his services to a variety of publishers. Anthony's primary motivation is to escape the 9 to 5 world of corporate publishing and to enjoy the opportunity of working for himself. Anthony is an example of a micropreneur.

Question 46

The United States government views entrepreneurship as a result of an individual's self-motivation. The government can do very little to encourage an individual to become an entrepreneur.

Question 47

State governments create new start-up business organizations called enterprise zones that are later sold to private investors.

Question 48

Successful entrepreneurs are exclusively motivated by the desire to become rich.

Question 49

Entrepreneurial teams increase the cooperation between marketing, production and other functional areas of a business venture.

Question 50

Jason, Robin, and Ian currently work in the marketing department of a large corporation. They have similar backgrounds and training and are thinking about leaving their company to start their own business. Successful entrepreneurial teams are comprised of these types of people because similarities in knowledge and skill ensure harmony and consistency in their new business.

Question 51

The position of our government is to restrict foreign entrepreneurs from operating within the U.S.

Question 52

The Spotlight on Small Business box is testimonial to the fact that entrepreneurs are problem solvers.

Question 53

To be successful, entrepreneurs are dependent on the support of others for encouragement.

Question 54

Enterprise zones offer lower tax rates and government assistance to attract private business investment.

Question 55

Kylie is employed by Street Wheels, a large corporation that produces accessories for scooters, bicycles, and other children's vehicles. She is a creative force within the company and has helped create and launch several new successful products. Kylie is an example of an intrapreneur.

Question 56

Although corporate managers often exhibit the skills required of successful entrepreneurs, they seldom have the desire to give up the perks and fringe benefits of corporate life and start their own business.

Question 57

Jacques has eliminated the risk of entrepreneurship by preparing a detailed business plan.

Question 58

The U.S. government offers investor visas to attract more entrepreneurs.

Question 59

A National Business Incubator Association study indicates that over 85 percent of incubator graduates remain in business.

Question 60

Ramsey is a dreamer rather than a doer. This is an important attribute for an entrepreneur since their job is to be creative and develop new ideas that are then implemented by others.

Question 61

To be classified as a small business, a firm must have no more than 100 employees.

Question 62

Economist Bruce Kirchhoff contends that business failures are much lower than traditionally reported.

Question 63

Small businesses account for over 50% of the U.S.'s gross domestic product (GDP).

Question 64

Bad luck is the most often reported cause for small business failure.

Question 65

Of all nonfarm businesses in the United States, almost 97% are considered small by the Small Business Administration (SBA) standards.

Question 66

Big businesses do not serve all the needs of a market.

Question 67

A business is considered small by comparing its size to others in the same industry.

Question 68

The principles of management of a large business are similar to the principles of management of a small business.

Question 69

When Kelsey began the Cookie Kitchen, she located the operation at a small business center to get help with accounting, legal advice, and secretarial help for a very low cost. Electing to join the incubator helped her company to survive because it provided assistance while her company was in its infancy.

Question 70

The small business sector that has the best chance of significant growth is legal services.

Question 71

The most common small business failures occur in businesses that are the easiest to start.

Question 72

Recent evidence suggests that the small business failure rate is significantly higher than previously reported.

Question 73

Compared to small businesses, large firms have a greater ability to provide personalized customer service.

Question 74

Upwards of 80% of all U.S. workers find their first job in small business.

Question 75

The business opportunities with the greatest growth potential tend to be in the high technology industries.

Question 76

Only about 10% of all businesses qualify as small businesses using the definition of the Small Business Administration.

Question 77

Small businesses can often provide more personalized customer service than bigger rivals.

Question 78

The easiest businesses to start are those that offer the greatest profit potential.

Question 79

Small businesses create 65% of the new jobs in the United States each year.

Question 80

According to the Small Business Administration's definition, small businesses are independently owned and operated.