Deck 6: Starting Your Own Business: the Entrepreneurship Alternative

Question 1

Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.equity financing
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
m.equity funds
A(n)_____ is typically known to back companies in high-technology industries such as biotechnology.

Answer 1

l

Question 2

Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.equity financing
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
m.equity funds
A(n)_____ starts a business to gain flexibility in work hours and control over his or her life.

Answer 2

h

Question 3

Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.equity financing
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
m.equity funds
Loans from credit card companies are an example of entrepreneurs using _____.

Answer 3

m

Question 4

Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.equity financing
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
m.equity funds
A(n)_____ is a form of intrapreneurship.

Question 5

Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.equity financing
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
m.equity funds
A(n)_____ is an individual who invests money directly in new ventures in exchange for equity.

Question 6

Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.equity financing
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
m.equity funds
_____ helps entrepreneurs work quickly and efficiently,provide attentive customer service,increase sales.

Question 7

Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.equity financing
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
m.equity funds
In contrast to a venture capitalist,a(n)_____ focuses primarily on new ventures.

Question 8

Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.equity financing
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
m.equity funds
_____ enables entrepreneurs to take responsibility for their successes or failures.

Question 9

Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.equity financing
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
m.equity funds
_____ refers to the characteristic of entrepreneurs believing that they control their own destiny.

Question 10

Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.equity financing
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
m.equity funds
When entrepreneurs use _____,they borrow money from banks,finance companies,credit card companies,and family or friends that must be repaid.

Question 11

Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.equity financing
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
m.equity funds
A(n)_____ is a business organization or group of private individuals who invest early-stage,high-potential growth companies.

Question 12

Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.equity financing
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
m.equity funds
Entrepreneurs exchange a share of ownership in their company for money supplied by one or more investors to secure _____.

Question 13

Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.equity financing
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
m.equity funds
_____ is the initial funding used to launch a company.

Question 14

Explain the differences among classic entrepreneurs,serial entrepreneurs,and social entrepreneurs.

Question 15

Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.equity financing
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
m.equity funds
A(n)_____ project is initiated by an employee who conceives an idea,convinces top management of a company of its potential,and then recruits human and other resources from within the company to turn that idea into a commercial project.

Question 16

Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.equity financing
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
m.equity funds
Loans from banks are a source of _____.

Question 17

Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.equity financing
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
m.equity funds
A(n)_____ recognizes a societal problem and uses business principles to develop innovative solutions.

Question 18

Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.equity financing
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
m.equity funds
A person who identifies a business opportunity and allocates available resources to tap that market is a(n)_____.

Question 19

Describe the differences between entrepreneurs and small-business owners and managers.

Question 20

Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.equity financing
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
m.equity funds
_____ is the process of promoting innovation within the structure of an existing organization.

Question 21

Distinguish between venture capitalists and angel investors.

Question 22

Explain why Revolution Foods,founded by Kristin Richmond and Kirsten Tobey,is categorized as social entrepreneurship.

Question 23

List the eight major characteristics of an entrepreneur.

Question 24

Which of the following is a personality trait that differentiates entrepreneurs from managers?

A)Desire to succeed instantly
B)Desire to change the world
C)Willingness to take risks in a new venture
D)Willingness to share ownership of a new venture

Question 25

Discuss lifestyle entrepreneurs.

Question 26

What is the similarity between the two start-ups Revolution Foods and Unchartered Play?

Question 27

Explain recent demographic and economic trends that create opportunities for entrepreneurs to market new goods and services.

Question 28

What is intrapreneurship,and why is it important today?

Question 29

Jennifer Hyman,the founder of Rent the Runway,exemplifies the concept of _____.

A)social entrepreneurship
B)classic entrepreneurship
C)skunkworkers
D)intrapreunership

Question 30

Explain the difference between debt financing and equity financing.

Question 31

An entrepreneur:

A)is a risk taker in the private enterprise system.
B)is a gambler in the private enterprise system.
C)does not tolerate ambiguity.
D)does not tolerate failures.

Question 32

Which characteristics of an entrepreneur does Mark Cuban,one of the "Shark investors" on the television series,Shark Tank,exemplify and how?

Question 33

Unlike small-business owners,one of the major goals of entrepreneurs is:

A)the desire to succeed.
B)to possess creative energy.
C)expansion and growth.
D)to seek a profitable opportunity.

Question 34

Why is Tim Ferriss,best-selling author of the 4-Hour self-help series,considered to be a lifestyle entrepreneur?

Question 35

Zainab is opening her own bakery.Zainab is most likely to be categorized as a(n)_____.

A)manager
B)entrepreneur
C)angel broker
D)venture capitalist

Question 36

Explain how CEOs like George Buckley believe that intrapreneurship pays off despite the extra effort required.

Question 37

Discuss the four motives frequently cited as major reasons why people become entrepreneurs.

Question 38

Describe how social networking has transformed the business environment for entrepreneurs.

Question 39

.List the four factors that have contributed to the expansion in entrepreneurship.

Question 40

How does Ralph Braun of BraunAbility exemplify the entrepreneurial characteristic of internal locus of control?

Question 41

Which of the following countries is an example of an innovation-driven economy?

A)India
B)Nigeria
C)Portugal
D)Mexico

Question 42

Financial success _____.

A)rarely results from starting a business
B)is part of the appeal of becoming an entrepreneur
C)plays little role in motivating people to become entrepreneurs
D)is virtually guaranteed if people work hard enough starting their own businesses

Question 43

_____ focus on solving society's challenges through their businesses.

A)Classic entrepreneurs
B)Change agents
C)Atypical entrepreneurs
D)Social entrepreneurs

Question 44

Tim Ferriss,best-selling author of the 4-Hour self-help series,is considered by many to be a(n)_____.

A)lifestyle entrepreneur
B)serial entrepreneur
C)social entrepreneur
D)intrapreneur

Question 45

Victoria is an employee at Pegasys Inc. ,a consulting firm.She uses the resources of the firm to expand and diversify into related fields.Victoria is most likely to be classified as a(n)_____.

A)manager
B)entrepreneur
C)stock broker
D)venture capitalist

Question 46

Which of the following has contributed the LEAST to the boom in entrepreneurship?

A)Information technology
B)Demographic and economic trends
C)Education
D)Economies driven by innovation

Question 47

Syed and Mica come up with an idea for making sugar-free ice cream.They open their own small business to cater to the needs of those who are health conscious.Their products are distributed nationwide and their sales continue to increase.Syed and Mica are examples of _____.

A)serial entrepreneurs
B)classic entrepreneurs
C)change agents
D)social entrepreneurs

Question 48

The primary reasons people become entrepreneurs include all of the following reasons EXCEPT:

A)to be one's own boss.
B)to achieve financial success.
C)to avoid taking risks.
D)to create one's own job security.

Question 49

Which of the following is an example of a country with a factor-driven economy?

A)Thailand
B)The United States
C)Zambia
D)The United Kingdom

Question 50

Concerning education and entrepreneurs,all of the following statements are correct EXCEPT:

A)today,many U.S.universities offer full-fledged majors in entrepreneurship.
B)a number of schools offer opportunities to intern with a start-up.
C)one needs to have an entrepreneurship major in order to launch a start-up.
D)highly motivated self-starters are often found in an entrepreneurship major.

Question 51

Which of the following statements about globalization and entrepreneurship is correct?

A)The business ownership rate is highest in economies that compete based on unskilled labor.
B)Most entrepreneurs are from countries whose economies are driven by innovation.
C)Entrepreneurship is least common in Latin America,Sub-Saharan Africa,and the Caribbean.
D)The United States leads in the percentage of adults engaged in entrepreneurship.

Question 52

Studies suggest that around _____percent of successful companies now use at least one social media tool.

A)30
B)10
C)60
D)90

Question 53

After starting a web design company while still in college,Ricardo sold the company after graduation.He then opened a computer repair shop;and most recently,he has started a marketing firm that specializes in social media.Ricardo is an example of a(n):

A)serial entrepreneur.
B)social entrepreneur.
C)lifestyle entrepreneur.
D)classic entrepreneur.

Question 54

Sophia is the CEO of a not-for-profit organization.She runs the organization to provide quality education for the underprivileged children.Sophia is most likely to be categorized as a:

A)serial entrepreneur.
B)social entrepreneur.
C)lifestyle entrepreneur.
D)classic entrepreneur.

Question 55

Identify a true statement about successful entrepreneurs.

A)They believe they will achieve their greatest success by working for others.
B)They have a very low tolerance for failure.
C)They are often likely to have had parents who were entrepreneurs.
D)They fit into one specific job title,career path,or industry.

Question 56

All of the following are identified as responsibilities of entrepreneurs EXCEPT:

A)upsizing their organizations in response to declining revenues.formulating policies.managing finances,human resources,and materials.problem solving.
B)
C)
D)

Question 57

Michelle works for a large bank that recently merged with another financial institution.Word of layoffs has been discussed.Michelle is most likely to become an entrepreneur in order to _____.

A)avoid taking risks
B)obtain job security
C)have employment as a cushion for failures
D)guarantee financial success

Question 58

_____ of the fastest-growing small companies in the United States have international sales.

A)Two of every five
B)Three of every five
C)Four of every five
D)Five of every six

Question 59

Vaida is a single mother who is required to work evenings and weekends at a local retail store.She is thinking of starting a consulting business primarily so she can _____.

A)have guaranteed job security
B)avoid taking risks
C)have guaranteed financial success
D)enjoy a higher quality of life

Question 60

Serial entrepreneurship involves:

A)launching and running a business,and then starting and running additional businesses in succession.
B)recognizing societal problems and using business principles to develop innovative solutions.
C)starting a new company by identifying a business opportunity and allocating resources to tap a new market.
D)conceiving an idea,convincing top management of the idea's potential,and then recruiting human and other resources from within the company to turn the idea into a commercial project.

Question 61

Aisha wants to start a business.She takes a personality test and discovers she possesses a trait that may reduce the likelihood of her success.Which of the following is that trait?

A)Creativity
B)Low tolerance for ambiguity
C)Vision
D)Internal locus of control

Question 62

Which of the following statements best describes how entrepreneurs view failure?

A)They enjoy risk and gambling.
B)They are easily discouraged when things don't go as planned.
C)They view failure as a learning experience.
D)They worry that if they fail they'll never get another opportunity.

Question 63

All of the following are major advantages of buying an existing business over starting a new business EXCEPT:

A)obtaining financing is often easier.
B)less risk is involved.
C)product or service is not known in the marketplace.
D)existing suppliers and employees are in place.

Question 64

Information technology can help entrepreneurs in all of the following ways EXCEPT:

A)provide improved customer service.
B)guarantee financial success.
C)work quickly and efficiently.
D)increase sales.

Question 65

Which of the following persons is LEAST likely to become an entrepreneur?

A)A person with tolerance for ambiguity
B)A person with internal locus of control
C)A person with a competitive drive
D)A person with low energy level

Question 66

Carlos routinely bids on contracts even though most of the other bidders are extremely large firms.Carlos believes his company offers better service at lower prices.Which of the following personality traits,common in entrepreneurs,does Carlos exhibit?

A)Creativity
B)Tolerance for failure
C)High energy level
D)Self-confidence

Question 67

Which of the following demographic/economic trends has increased the opportunities for entrepreneurs?

A)Stagnating wages
B)Steady interest rates
C)Aging population
D)Increase in wages

Question 68

Entrepreneurs possess all of the following traits EXCEPT _____.

A)tolerance for ambiguity
B)creativity
C)low self-confidence
D)vision

Question 69

Netflix continues to offer DVDs by mail to nearly five million U.S.subscribers in addition to its streaming services because of its:

A)tolerance for failure.
B)internal locus of control.
C)creativity.
D)tolerance for ambiguity.

Question 70

Claude is an entrepreneur who takes personal responsibility for the success or failure of his actions rather than believing in luck or fate.Which characteristic best describes Claude's entrepreneurial philosophy?

A)Internal locus of control
B)Need to achieve
C)Tolerance for failure
D)Tolerance for ambiguity

Question 71

Studies indicate that most entrepreneurs spend _____ on their new business.

A)less than 30 hours a week
B)about 40 hours a week
C)at least 70 hours a week
D)weekends only

Question 72

An overall idea for how to convert a business idea into a success is called _____.

A)creativity
B)internal locus of control
C)vision
D)tolerance for ambiguity

Question 73

Deena is a successful entrepreneur.She stays close to her customers and is constantly looking for effective strategies.She is also willing to make adjustments when necessary.Deena is demonstrating _____.

A)internal locus of control
B)creativity
C)vision
D)tolerance for ambiguity

Question 74

The business start-up PK Clean,launched by Priyanka Bakaya in Salt Lake,Utah,can be identified as an example of:

A)intrapreneurship.
B)skunkworks.
C)social entrepreneurship.
D)serial entrepreneurship.

Question 75

When an entrepreneur continues to work on an idea in spite of physical or technical hindrances and succeeds in turning that idea into reality,he or she is exemplifying the entrepreneurial characteristic:

A)vision.
B)internal locus of control.
C)creativity.
D)tolerance for ambiguity.

Question 76

Who is most likely to succeed as an entrepreneur?

A)Marcel who cannot tolerate failures
B)Philip who has an aversion for taking risks
C)Fiona who blames others for her failures
D)Gina who is driven by the need to excel

Question 77

All of the following are important characteristics of entrepreneurs EXCEPT:

A)tolerance for failure.
B)internal locus of control.
C)creativity.
D)dependence on others.

Question 78

In the context of financing,identify a recommendation made by the Small Business Administration (SBA)to entrepreneurs.

A)Finding less expensive credit
B)Charging business expenses to personal credit cards
C)Establishing a business credit history
D)Showing a profit on rising revenues

Question 79

Which of the following is one of the most important considerations in selecting a business idea?

A)Making sure no company is currently offering the product/service
B)Ensuring that the idea solely appeals to a niche market
C)Finding something one loves to do and is good at doing
D)Choosing a product/service that is inexpensive to sell

Question 80

Simone is opening a home health care business that she knows will do well in her community.She makes this assumption based on prior research.Although she must repay borrowed funds,Simone chooses _____ to maintain complete control over the business without having to answer to investors or partners.

A)debt financing
B)funding from venture capitalists
C)funding from angel investors
D)equity financing