Deck 6: Entrepreneurship and Starting a Small Business

Question 1

Entrepreneurs avoid risk and place a high priority on security.

Answer 1

False

Question 2

Entrepreneurship is another name for management.

Answer 2

False

Question 3

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

Answer 3

False

Question 4

Entrepreneurs take calculated risks.

Question 5

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

Question 6

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

Question 7

Most entrepreneurs prefer working for someone else.

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

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 13

Entrepreneurs are motivated by the desire to earn a profit.

Question 14

Successful entrepreneurs accept the risk of failure.

Question 15

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

Question 16

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

Question 17

Successful entrepreneurs rely on others for direction and support. Nickels - Chapter 06 #12 Topic: What Does it Take to Be an Entrepreneur?

Question 18

It is important for an entrepreneur to be highly energetic.

Question 19

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

Question 20

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

Question 21

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

Question 22

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

Question 23

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

Question 24

Entrepreneurial spirit is unique to a small business environment.

Question 25

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

Question 26

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

Question 27

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

Question 28

Many micropreneurs are home-based business owners.

Question 29

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

Question 30

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

Question 31

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

Question 32

Opponents of home-based businesses successfully lobbied Congress to reduce the tax deductions available for home offices.

Question 33

Corporate downsizing reduces the opportunities for home-based businesses.

Question 34

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

Question 35

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

Question 36

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

Question 37

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

Question 38

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

Question 39

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

Question 40

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

Question 41

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 42

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

Question 43

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

Question 44

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

Question 45

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

Question 46

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

Question 47

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 48

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

Question 49

The Spotlight on Small Business box featured several new entrepreneurs, some as young as 10 years old, proving "age is just a number" when it comes to having a vision for a business and bringing it to fruition.

Question 50

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 51

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

Question 52

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

Question 53

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 54

Jacques has eliminated the risk of entrepreneurship by preparing a detailed business plan. Level of Learning 3: Application of principles Nickels - Chapter 06 #56 Topic: What Does it Take to Be an Entrepreneur?

Question 55

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

Question 56

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 57

Small businesses have very few opportunities to outsource their business.

Question 58

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.

Question 59

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

Question 60

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 61

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

Question 62

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

Question 63

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

Question 64

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

Question 65

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

Question 66

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

Question 67

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

Question 68

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

Question 69

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

Question 70

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

Question 71

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

Question 72

Conventional wisdom reports that 56 percent of all small businesses fail in their first four years of operation.

Question 73

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 74

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

Question 75

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

Question 76

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

Question 77

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

Question 78

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

Question 79

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 80

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