Deck 6: Entrepreneurship and Starting a Small Business

Question 1

Entrepreneurship is another name for management.

Answer 1

False

Question 2

Entrepreneurs take calculated risks.

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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

Question 5

Most entrepreneurs prefer working for someone else.

Question 6

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

Question 7

Entrepreneurs avoid risk and place a high priority on security.

Question 8

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 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

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

Question 15

Successful entrepreneurs accept the risk of failure.

Question 16

It is important for an entrepreneur to be highly energetic.

Question 17

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

Question 18

Successful entrepreneurs rely on others for direction and support.

Question 19

Entrepreneurs are motivated by the desire to earn a profit.

Question 20

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

Question 21

Corporate downsizing reduces the opportunities for home-based businesses.

Question 22

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

Question 23

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

Question 24

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 25

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

Question 26

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

Question 27

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

Question 28

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

Question 29

Small businesses have not significantly participated in online sales.

Question 30

Entrepreneurial spirit is unique to a small business environment.

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

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

Question 33

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

Question 34

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

Question 35

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

Question 36

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

Question 37

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

Question 38

Many micropreneurs are home-based business owners.

Question 39

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

Question 40

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

Question 41

Alex works for Wheelie's, a large corporation that designs and manufactures accessories for scooters, bicycles, and other children's motorized toys. She is a creative force within the company and has helped create and launch several new successful products. Alex is an example of an intrapreneur.

Question 42

Grant received an e-mail stating that HE COULD EARN THOUSANDS!!!! just working a few hours from home. Most likely Grant's e-mail was a work-at-home scam.

Question 43

According to the Spotlight on Small Business box, people in college are not ready to start their own business.

Question 44

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

Question 45

Victor is a dreamer rather than a doer. This will make him an ideal entrepreneur since their job is to be creative and develop new ideas that are then implemented by others.

Question 46

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

Question 47

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

Question 48

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 49

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

Question 50

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

Question 51

Ariel wants to start and run her own business. Although she acknowledges it would be helpful to earn a healthy profit, her main motivation is the exhilaration and challenge of starting and running a business. Ariel'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 52

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

Question 53

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

Question 54

Timothy, Jude, and Eric are working in the marketing department of a multinational corporation. They each have similar backgrounds and experience and are thinking about leaving their current 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 55

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 56

When Marley created the Mar's Cookie Bars Company, she took advantage of a state-supported incubator that offered her new business low-cost office space and basic services such as accounting, legal advice, and secretarial help. Joining the incubator helped her company to survive because it provided assistance in the critical stage of its early development.

Question 57

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

Question 58

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

Question 59

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

Question 60

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

Question 61

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

Question 62

While the first job for many people is working for a small business, larger corporations create most of the permanent new jobs.

Question 63

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

Question 64

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

Question 65

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

Question 66

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

Question 67

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

Question 68

The easiest businesses to start also have the least growth potential and the greatest failure rates.

Question 69

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

Question 70

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

Question 71

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

Question 72

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

Question 73

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

Question 74

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

Question 75

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

Question 76

Most business opportunities offer entrepreneurs high levels of security and profits.

Question 77

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

Question 78

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

Question 79

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

Question 80

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