Deck 1: The Foundations of Entrepreneurship

Question 1

Nearly ________ of entrepreneurs start their businesses between the ages of 25 and 44 and the number of Americans in that age range currently is ________ .

A) one-half; 8.5 million
B) two-thirds; 85,000
C) two-thirds; 85 million
D) on-fourth; 85 million

Answer 1

C

Question 2

Which of the following is NOT one of the forces driving the entrepreneurial trend in our country?

A) Shift away from a service economy
B) Independent lifestyle
C) International opportunities
D) E-commerce and the World Wide Web

Answer 2

A

Question 3

Within five years, ________ percent of new businesses will fail.

A) 31
B) 45
C) 51
D) 65

Answer 3

C

Question 4

Factors that feed the economic boom behind entrepreneurship include:

A) demographic and economic factors.
B) technology and cloud computing.
C) the shift to a service-based economy and international opportunities.
D) All of the above

Question 5

An entrepreneur is one who:

A) is willing to attempt to implement a business concept and then give up if it does not meet immediate expectations.
B) understands the process of developing an idea and does not need to understand what it means to bring that idea to a viable business concept.
C) knows that the concept they are about to develop will result in a profitable business.
D) creates a new business concept for the purpose of achieving profit and growth by assembling the necessary resources to capitalize on identified opportunities.

Question 6

Potential drawbacks of entrepreneurship may include:

A) uncertainty of income, risk, long hours, and high stress.
B) uncertainty of income, risk, easy hours, and frequent vacations.
C) uncertainty of income, risk, long hours, and the immediate accumulation of wealth.
D) certainty of income, risk, long hours, and high stress.

Question 7

One of the most significant economic developments in recent business history relates to the:

A) growth of blue-chip corporations.
B) development of Pacific Rim countries.
C) entrepreneurial spirit.
D) additional employment opportunities offered by government institutions.

Question 8

It is estimated that ________ percent of new businesses fail within two years, while ________ percent fail within five years.

A) 31; 51
B) 51; 64
C) 35; 41
D) 51; 31

Question 9

Which of the following is a benefit of entrepreneurship?

A) The opportunity to gain control over your own destiny.
B) The opportunity to reach your full potential.
C) The opportunity to do what you enjoy.
D) All of the above

Question 10

The recent number of job losses in large corporations compared to the jobs created by small business has changed the perception of ________ for launching a new business.

A) prestige
B) risk
C) financing opportunities
D) short-term potential

Question 11

The profile of an entrepreneur includes:

A) a desire for responsibility and moderate risk.
B) confidence in the ability to succeed and determination.
C) a high level of energy, a desire for immediate feedback and a future orientation.
D) All the above

Question 12

Entrepreneurs who repeatedly start businesses and grow to a sustainable size before striking out again are known as ________ entrepreneurs.

A) opportunistic
B) persistent
C) serial
D) classic

Question 13

Entrepreneurs typically possess:

A) the ability to easily access capital.
B) a set of unique skills that is usually accompanied by advanced degrees in several areas.
C) a high level of commitment, have a tolerance for ambiguity, are flexible and tenacious.
D) specialized technical abilities.

Question 14

Entrepreneurs who start businesses because they cannot find work any other way are:

A) necessity entrepreneurs.
B) serial entrepreneurs.
C) opportunity entrepreneurs.
D) corporate cast-offs.

Question 15

The majority of new business owners work:

A) fewer than 40 hours per week.
B) more than 40 hours per week.
C) more than 70 hours per week.
D) more than 80 hours per week.

Question 16

In addition to the opportunity to create their own destiny and enjoy what they do, entrepreneurs also benefit from the ability to:

A) earn tremendous wealth without risk and uncertainty.
B) make a difference in an area important to them and be recognized for those efforts.
C) create wealth without providing true value.
D) exploit the opportunities that the free enterprise system offers.

Question 17

All of the following are characteristics of the typical entrepreneur except:

A) confidence in his/her ability to succeed.
B) value of money over achievement.
C) desire for immediate feedback.
D) a future orientation.

Question 18

Entrepreneurs are characterized by:

A) skill at organizing.
B) desire for immediate feedback.
C) high energy levels.
D) All of the above

Question 19

In a large organization, an individual may be stifled and limited by a wide variety of factors. However, by owning one's own business, the only limits are one's own creativity, talent, and determination. In this sense, small business ownership offers the advantage of the:

A) opportunity to reach one's full potential.
B) opportunity to reap unlimited profits.
C) chance to learn from other's mistakes.
D) ability to accumulate certain wealth.

Question 20

Which of the following technological forces is driving the entrepreneurial trend in our nation?

A) Cloud computing
B) E-commerce
C) Technological advancements
D) All of the above

Question 21

Melinda and John Perez, both corporate attorneys in New York City, have grown tired of their lengthy daily commute, the stress of their jobs, and the overbearing policies of their employers. They have decided to leave their six-figure jobs and together open a guide service in Wyoming. Melinda and John are examples of:

A) corporate castoffs and corporate dropouts.
B) corporate dropouts and copreneurs.
C) corporate castoffs and copreneurs.
D) copreneurs and serial entrepreneurs.

Question 22

According to the U.S. Small Business Administration, a common delineation of a small business is one that employs fewer than:

A) 50 people.
B) 100 people.
C) 250 people.
D) 500 people.

Question 23

Small companies that operate globally from their inception are referred to as:

A) micromultinationals.
B) intrapreneurial ventures.
C) global companies.
D) international companies.

Question 24

Which of the following is NOT a characteristic of a successful working relationship between copreneurs?

A) A clear definition of one partner as "boss" and the other as "subordinate"
B) Compatible business and life goals
C) Complementary business skills
D) A clear division of roles and authority based on each partner's skills and abilities

Question 25

The demographic attributes of successful entrepreneurs are:

A) limited to specific ages, genders, and ethnic backgrounds.
B) uncertain and have not been fully studied or analyzed.
C) are key predictors that determine how long the business will survive.
D) highly diverse relating to age, gender, and ethnicity.

Question 26

The nation's small businesses:

A) employ more than 51 percent of the nation's private sector workforce.
B) create more jobs than do big businesses.
C) account for 47 percent of business sales.
D) All of the above

Question 27

Which of the following statements about women-owned businesses is false?

A) The businesses women start tend to be smaller than those men start.
B) Women own about 28 percent of all privately held businesses in the U.S.
C) The survival rate of women-owned businesses is much lower than that of U.S. businesses overall.
D) Most women-owned companies are concentrated in retailing and services.

Question 28

Which of the following statements concerning small businesses and international markets is false?

A) Although terrorism and global recession have slowed the growth of international trade somewhat, global opportunities for small businesses have a long-term positive outlook.
B) Although the U.S. is an attractive market, approximately 95 percent of the world's population lives outside its borders.
C) Because exporting is so complex and requires a company to have so many international experts on staff, exporting is not feasible for small businesses.
D) Small companies comprise 97 percent of all businesses engaged in exporting, yet they account for only 30 percent of the nation's export sales.

Question 29

Of the 28 million businesses in the United States, more than ________ are considered small.

A) 50 percent
B) 75 percent
C) 88 percent
D) 99 percent

Question 30

Women in business still experience ________ as they attempt to break the "glass ceiling."

A) success
B) opportunities
C) discrimination
D) ease of navigation

Question 31

Approximately ________ percent of corporate managers who are "cast off" as companies downsize become entrepreneurs.

A) 5
B) 15
C) 20
D) 45

Question 32

Small companies that have expanded successfully into foreign markets tend to rely on all but which of the following strategies?

A) Research foreign markets thoroughly.
B) Focus on many countries initially.
C) Utilize government resources designed to help small companies establish an international presence.
D) Forge alliances with local partners.

Question 33

"Copreneurs" are defined as:

A) entrepreneurs that work part-time.
B) highly successful entrepreneurs with prior company experience and background.
C) those entrepreneurs that will eventually combine their business with another venture.
D) entrepreneurial couples that work together as co-owners of their business.

Question 34

Entrepreneurs may find benefit from the Internet due to its potential:

A) if the organization is willing to invest millions of dollars in this effort.
B) only if the entrepreneur has a high level of technical abilities.
C) as a relatively low-cost solution to expand its revenue-generating abilities.
D) to take all pressure off other attributes of the business venture.

Question 35

Entrepreneurs that use their skills to create a profitable business that is designed to achieve social and environmental goals for the common good are known as:

A) social entrepreneurs.
B) not-for-profit entrepreneurs.
C) copreneurs.
D) serial entrepreneurs.

Question 36

Which of the following is a characteristic of copreneurs?

A) Mutual respect
B) Complementary business skills
C) A clear division of roles and authority
D) All of the above

Question 37

International opportunities are:

A) clearly out of reach for entrepreneurial businesses.
B) now within the reach of entrepreneurial businesses and may present significant opportunities.
C) highly limited for entrepreneurs.
D) risky and do not merit serious consideration by the entrepreneur.

Question 38

Entrepreneurial couples who work together as co-owners of their business are referred to as:

A) dual entrepreneurs.
B) corporate dropouts.
C) corporate cast-offs.
D) copreneurs.

Question 39

Which of the following statements is not true regarding the diversity of entrepreneurs?

A) Minority-owned businesses have come a long way in the past decade, and their success rate is climbing.
B) Minority-owned businesses now account for approximately 22 percent of all businesses in the U.S.
C) Immigrants with more education and experience than those of the past are coming to the U.S. and succeeding in entrepreneurial ventures.
D) The numbers of part-time and home-based entrepreneurs are rising.

Question 40

________ percent of all U.S. businesses are family owned and managed.

A) Twenty-five
B) Fifty
C) Seventy
D) Ninety

Question 41

David Birch describes small companies growing at 20 percent or more per year with at least $100,000 in annual sales that create 70 percent of the net new jobs in the economy as:

A) "assertive."
B) "antelopes."
C) "aggressive."
D) "gazelles."

Question 42

John has come to you for advice on starting a business venture. He wants to know the best way to gain the experience he'll need. You suggest that he:

A) read a small business book.
B) seek knowledge and experience in the field he wishes to enter.
C) determine his weaknesses and return to school for a term or two.
D) just jump in and learn as he goes.

Question 43

Current competitive conditions favor large companies over smaller ones because of their flexibility combined with their ability to use their size to achieve efficiency and economies of scale.

Question 44

Research has isolated a set of characteristics that can predict who will succeed as an entrepreneur.

Question 45

The 21st century has seen record numbers of entrepreneurs launching businesses on a global basis.

Question 46

Which of the following was not identified as one of the suggestions for small business success?

A) Develop a business plan as you grow your business.
B) Manage your financial resources and understand financial statements.
C) Know your business in depth.
D) Learn to manage people successfully.

Question 47

Most entrepreneurs believe that ________ is what matters most, but ________ is the most important financial resource for a small business owner.

A) cash; profit
B) profit; cash
C) profit; inventory
D) inventory; cash

Question 48

Most startup companies can expect to need ________ capital than they anticipate.

A) less
B) the same
C) more
D) within 10% of the

Question 49

The primary cause of small business failures is:

A) the lack of capital.
B) management mistakes.
C) poor location.
D) improper inventory control.

Question 50

The only people who ________ are those who never do anything or never attempt anything new.

A) succeed
B) prosper
C) profit
D) fail

Question 51

Entrepreneurs tend to be overly ________ and commonly misjudge the ________ requirements of going into business.

A) optimistic; personal
B) optimistic; financial
C) pessimistic; financial
D) optimistic; professional

Question 52

Which of the following is/are true regarding business plans?

A) Provide a pathway to success.
B) Allow entrepreneurs to replace faulty assumptions with facts before making the decision to go into business.
C) Create a benchmark against which entrepreneurs can measure actual company performance.
D) All of the above

Question 53

The majority of small companies are concentrated in the ________ and ________ industries.

A) manufacturing; retail
B) manufacturing; service
C) retail; service
D) wholesale; retail

Question 54

One hallmark of successful entrepreneurs is the ability to:

A) be willing to gamble.
B) fail intelligently.
C) overlook past successes.
D) repeat the same mistake.

Question 55

One study conducted by the Global Entrepreneurship Monitor (GEM) reports that nearly one in eight people in the United states is working to start a business..

Question 56

Small companies:

A) created fewer jobs than big companies in the last decade.
B) are concentrated in the manufacturing and retail sectors.
C) are the leaders in offering training and advancement opportunities to workers.
D) account for approximately 10 percent of the nation's GDP and 25 percent of business sales.

Question 57

Small companies are incubators of new sales ideas, products and services and create ________ times more patents per employee than large companies.

A) 3
B) 5
C) 10
D) 13

Question 58

David Birch, president of the research firm Cognetics, suggests that three percent of small businesses create approximately ________ percent of new jobs.

A) 50
B) 60
C) 70
D) 80

Question 59

Increased entrepreneurial activity is a phenomenon unique to the U.S.

Question 60

Entrepreneurs can increase their chances for success if they:

A) know their business in depth and develop a solid business plan.
B) manage their financial resources and understand financial statements.
C) learn to manage people and keep in touch with how they react to stress and balance their health needs with the needs of the business.
D) All of the above

Question 61

Social entrepreneurs use their skills to create profitable businesses and also achieve economic, social and environmental goals for the common good.

Question 62

Women now own 28.7 percent of all privately-held businesses in the United States.

Question 63

One advantage of being your own boss and owning a small business is that work hours are very flexible and leisure time is abundant.

Question 64

Cloud computing allows businesses to use a variety of applications and has reduced costs and added flexibility.

Question 65

Minority-owned businesses have come a long way in the past decade, and their success rate is climbing.

Question 66

A major advantage of launching a business part-time is the lower risk it offers in case the business fails.

Question 67

The majority of new business owners work fewer than 40 hours per week.

Question 68

Entrepreneurs are not willing to give up a steady paycheck.

Question 69

Women play a minor role in the entrepreneurial arena.

Question 70

There is concern over the future of entrepreneurship because so few high school and college students want to start their own companies.

Question 71

Entrepreneurs choose to enter their particular business fields because they have an interest in them and enjoy those lines of work. They have often made their hobbies their business.

Question 72

Technology offers a significant advantage for entrepreneurs.

Question 73

The opportunity to reap impressive profits is the primary motivation for most entrepreneurs.

Question 74

Surveys show that small business owners believe that, as entrepreneurs, they work harder, earn more money, and are happier than if they worked for a large company.

Question 75

Serial entrepreneurs repeatedly start businesses and grow them to a sustainable size before striking out again.

Question 76

Increasing numbers of women are discovering that the best way to break the "glass ceiling" that prevents them from rising to the top of many organizations is to start their own companies.

Question 77

The shift to a service economy has not had a significant impact on entrepreneurial opportunities.

Question 78

Diversity may be considered a characteristic of entrepreneurs, as they don't fit any statistical norm.

Question 79

Starting a part-time business is a popular gateway to entrepreneurship.

Question 80

The majority of new business owners devote more than 40 hours per week to their companies.