Deck 6: Entrepreneurship and Starting a Small Business

Question 1

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

Answer 1

True

Question 2

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

Answer 2

False

Question 3

Successful entrepreneurs accept the risk of failure.

Answer 3

True

Question 4

Entrepreneurs take calculated risks.

Question 5

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

Question 6

Entrepreneurs are motivated by the desire to earn a profit.

Question 7

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

Question 8

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

Question 9

Entrepreneurship is another name for management.

Question 10

It is important for an entrepreneur to be highly energetic.

Question 11

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

Question 12

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

Question 13

Successful entrepreneurs rely on others for direction and support.

Question 14

Entrepreneurs avoid risk and place a high priority on security.

Question 15

Most entrepreneurs prefer working for someone else.

Question 16

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 17

People who are 16 to 34 years old are not attracted to starting their own business.

Question 18

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

Question 19

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

Question 20

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

Question 21

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

Question 22

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

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

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

Question 25

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

Question 26

Many micropreneurs are home-based business owners.

Question 27

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

Question 28

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

Question 29

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

Question 30

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

Question 31

Entrepreneurial spirit is unique to a small business environment.

Question 32

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

Question 33

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

Question 34

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

Question 35

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

Question 36

Corporate downsizing reduces the opportunities for home-based businesses.

Question 37

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 38

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

Question 39

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

Question 40

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

Question 41

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 42

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

Question 43

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

Question 44

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

Question 45

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

Question 46

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.
Feedback "Micropreneur" to refers to a business owner interested in simply enjoying a better lifestyle and want the opportunity to make a living doing the kind of work they enjoy.

Question 47

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

Question 48

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

Question 49

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 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 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 52

A National Business Incubator Association study indicates that over 80 percent of incubator graduates remain in business.

Question 53

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

Question 54

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

Question 55

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 56

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

Question 57

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 58

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 59

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

Question 60

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

Question 61

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

Question 62

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

Question 63

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

Question 64

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

Question 65

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

Question 66

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

Question 67

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

Question 68

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

Question 69

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

Question 70

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

Question 71

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

Question 72

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 73

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

Question 74

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

Question 75

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

Question 76

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

Question 77

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

Question 78

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

Question 79

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

Question 80

Small businesses create 60 - 80% of the new jobs in the United States each year.