Deck 6: Starting Your Own Business: the Entrepreneurship Alternative

Question 1

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.

Answer 1

B

Question 2

Atif and Sanya 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.Atif and Sanya are examples of

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

Answer 2

B

Question 3

________ identify business opportunities and allocate available resources to tap those markets.

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

Answer 3

B

Question 4

________ recognize a societal problem and use business principles to develop innovative solutions.

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

Question 5

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 6

All of the following are identified as responsibilities of entrepreneurs EXCEPT

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

Question 7

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

A)social entrepreneurship.
B)classic entrepreneurship.
C)skunk workers.
D)intrapreneurship.

Question 8

A personality trait that differentiates entrepreneurs from managers is

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 9

Who is an entrepreneur?

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

Question 10

Which of the following is NOT one of the primary reasons why people become entrepreneurs?

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 11

Riya works for a large bank that recently merged with another financial institution.Word of layoffs has been discussed.Riya 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 12

Which of these is TRUE 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 13

Which of these start one business,run it,and then start and run additional businesses in succession?

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

Question 14

Which of these focus on solving society's challenges through their businesses?

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

Question 15

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 16

After starting a web design company while still in college,Alejandro 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.Alejandro is an example of a(n)

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

Question 17

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

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

Question 18

Daphne 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 19

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

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

Question 20

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

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

Question 21

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 22

______ 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 23

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

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

Question 24

______ is an example of an innovation-driven economy.

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

Question 25

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 26

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 27

Which of these refers to an overall idea for how to convert a business idea into a success?

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

Question 28

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

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

Question 29

_____ 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 30

Entrepreneurs possess all of the following traits EXCEPT

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

Question 31

Valerie 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 32

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

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

Question 33

Which of the following individual 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 34

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 35

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 36

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 37

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 38

A(n)______ is a person who starts a business to gain flexibility in work hours and control over his or her life.

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

Question 39

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 40

Which of these statement is NOT correct concerning education and entrepreneurs?

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 41

Abbas wants to start a new business,but his bank will not lend him the money he needs.Abbas saw an advertisement sponsored by a business organization that provides financing for early-stage,high-potential growth companies.The organization sponsoring the advertisement would be considered a(n)

A)franchisor.
B)franchisee.
C)mortgage lender.
D)venture capitalist.

Question 42

Felipe 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 Felipe's entrepreneurial philosophy?

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

Question 43

Denzel is a wealthy person who focuses on investing in new ventures.He is looking to invest money directly into a new consulting business in return for equity in the company.Denzel is

A)franchisor.
B)stock broker.
C)angel investor.
D)franchisee.

Question 44

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 45

Former CEO George Buckley believes that the key to supporting intrapreneurship is the willingness to

A)categorize targeted employment area
B)allocate time and money
C)appoint dedicated personnel
D)pursue a degree in business management

Question 46

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 47

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 48

A(n)_____ is an event where computer programmers and software developers intensively collaborate on new developments.

A)crowdfunding platform
B)enterprise zone
C)skunkworks
D)hackathon

Question 49

Identify a recommendation,in the context of financing,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 50

Kassandra 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.Kassandra is demonstrating

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

Question 51

Cheng is in the process of using debt financing to fund his new venture.In this case,he is most likely to

A)borrow loans from banks.
B)obtain funding from venture capitalists.
C)secure funding from angel investors.
D)exchange a share of ownership in his company for money.

Question 52

Which of the following are specific geographic areas designated for economic revitalization?

A)Economic stimulus zones
B)Enterprise zones
C)Commerce areas
D)Investor zones

Question 53

Aaliyah is trying to start a new business.A women's business network puts her in touch with a wealthy investor who is willing to invest in her company in exchange for an equity stake.This investor is most likely to be a(n)

A)angel investor.
B)franchisor.
C)stock broker.
D)mortgage lender.

Question 54

Natsuki 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,Natsuki 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

Question 55

Aliya invests in her new venture along with the fund supplied by Deccan Corp.,the co-owner of her start-up.This type of funding is known as

A)equity financing.
B)debt financing.
C)social venture capital funding.
D)focused funding.

Question 56

Which of these are business organizations or groups of private individuals who invest in early-stage,high-potential growth companies?

A)Angel investors
B)Share brokers
C)Intrapreneurs
D)Venture capitalists

Question 57

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 58

A(n)_____ is another form of intrapreneurship initiated by an employee who conceives an idea,convinces top management of its potential,and then recruits human and other resources from within the company to turn that idea into a commercial project.

A)wealth creation
B)angel investor
C)skunkworks
D)debenture

Question 59

Abigail works as an artist for a major textile company and created an instrument for producing designs.The company will implement Abigail's idea as part of its _____ strategy.

A)skunkworks
B)angel investment
C)seed capital
D)entrepreneurship

Question 60

Which of the following instances best represents a skunkworks project?

A)Fathima obtains funding from a venture capitalist to start her new venture.
B)Frank obtains funding from an angel investor who also helps him with launching his business.
C)Laila obtains funding from the company she works for to turn her idea into a commercial project.
D)Janet obtains funding through bank loans and finance companies that she must repay.

Question 61

Entrepreneurs may also perform a managerial role,but their overriding responsibility is to use the resources of their organizations to accomplish their goals.

Question 62

Overall,in the United States the current outlook for becoming an entrepreneur is positive.

Question 63

Social entrepreneurs recognize a societal problem and use business principles to develop innovative solutions.

Question 64

A motivation for becoming an entrepreneur is the desire for improved quality of life.

Question 65

Entrepreneurs take necessary risks to set up and operate a business.

Question 66

By definition,owning a business,means that you are an entrepreneur.

Question 67

One of the main drives for those who choose to become entrepreneurs is the desire to work fewer hours.

Question 68

Entrepreneurs enjoy guaranteed job security because no one can fire them.

Question 69

Social entrepreneurs recognize a societal problem and use business principles to develop innovative solutions.

Question 70

Growth in entrepreneurship is a worldwide phenomenon.

Question 71

Classic entrepreneurs are pioneers of innovations that benefit humanity.

Question 72

Lilly started her own business because she was tired of worrying about corporate downsizing despite her highly positive annual reviews.This is a common motivation for becoming an entrepreneur.

Question 73

A serial entrepreneur is a person who starts a business to gain flexibility in work hours and control over his or her life.

Question 74

Elon Musk,founder of PayPal,and CEO of Tesla Motors,Solar City,and SpaceX,is a serial entrepreneur.

Question 75

A person who starts a business to gain flexibility in work hours and control over his or her life is a lifestyle entrepreneur.

Question 76

A classic entrepreneur starts a new company by identifying a business opportunity and allocating resources to tap a new market; serial entrepreneurs start one business,run it,and then start and run additional businesses in succession.

Question 77

Classic entrepreneurs start one business,run it,and then start and run additional businesses in succession.

Question 78

Jose began a furniture company and ran it for five years.Afterward,he started another company for selling home appliances,and then an interior designing company.Jose is a social entrepreneur.

Question 79

Overseas,workers have yet to discover the benefits of entrepreneurship compared to employment by big firms.

Question 80

According to research,the personality traits common to entrepreneurs are very similar to those required for managerial success.