Deck 6: Starting Your Own Business: The Entrepreneurship Alternative

Question 1

MATCHING
Complete the following using the terms listed.
a.lifestyle entrepreneur
b.globalization
c.angel investor
d.enterprise zone
e.debt financing
f.internal locus of control
g.debt financing
h.classic entrepreneur
i.social entrepreneur
j.seed capital
k.venture capitalist
l.intrapreneurship
m.urban reserve
n.information technology
A person who identifies a business opportunity and allocates available resources to tap that market is a(n)_____.

Answer 1

h

Question 2

Explain the differences among classic entrepreneurs,serial entrepreneurs,and social entrepreneurs.

Answer 2

A classic entrepreneur identifies a business opportunity and allocates available resources to tap into that market.A serial entrepreneur starts one business,runs it, and then starts and runs additional businesses in succession.A social entrepreneur recognizes a societal problem and uses business principles to develop innovative solutions.Of the three categories,only classic entrepreneurs actually start their own companies.

Question 3

MATCHING
Complete the following using the terms listed.
a.lifestyle entrepreneur
b.globalization
c.angel investor
d.enterprise zone
e.debt financing
f.internal locus of control
g.debt financing
h.classic entrepreneur
i.social entrepreneur
j.seed capital
k.venture capitalist
l.intrapreneurship
m.urban reserve
n.information technology
The significant increase of international marketing and sales by entrepreneurs is a result of _____.

Answer 3

b

Question 4

MATCHING
Complete the following using the terms listed.
a.lifestyle entrepreneur
b.globalization
c.angel investor
d.enterprise zone
e.debt financing
f.internal locus of control
g.debt financing
h.classic entrepreneur
i.social entrepreneur
j.seed capital
k.venture capitalist
l.intrapreneurship
m.urban reserve
n.information technology
A(n)_____ recognizes a societal problem and uses business principles to develop innovative solutions.

Question 5

MATCHING
Complete the following using the terms listed.
a.lifestyle entrepreneur
b.globalization
c.angel investor
d.enterprise zone
e.debt financing
f.internal locus of control
g.debt financing
h.classic entrepreneur
i.social entrepreneur
j.seed capital
k.venture capitalist
l.intrapreneurship
m.urban reserve
n.information technology
_____ is the initial funding needed to launch a new venture.

Question 6

MATCHING
Complete the following using the terms listed.
a.lifestyle entrepreneur
b.globalization
c.angel investor
d.enterprise zone
e.debt financing
f.internal locus of control
g.debt financing
h.classic entrepreneur
i.social entrepreneur
j.seed capital
k.venture capitalist
l.intrapreneurship
m.urban reserve
n.information technology
A ____ is a specific geographic area set aside for economic renewal.

Question 7

MATCHING
Complete the following using the terms listed.
a.lifestyle entrepreneur
b.globalization
c.angel investor
d.enterprise zone
e.debt financing
f.internal locus of control
g.debt financing
h.classic entrepreneur
i.social entrepreneur
j.seed capital
k.venture capitalist
l.intrapreneurship
m.urban reserve
n.information technology
A(n)_____ is an economic zone within a municipality - an area that the federal government has set aside as a First Nation reserve land.

Question 8

Describe how social networking has transformed the business environment for entrepreneurs.

Question 9

MATCHING
Complete the following using the terms listed.
a.lifestyle entrepreneur
b.globalization
c.angel investor
d.enterprise zone
e.debt financing
f.internal locus of control
g.debt financing
h.classic entrepreneur
i.social entrepreneur
j.seed capital
k.venture capitalist
l.intrapreneurship
m.urban reserve
n.information technology
_____ helps entrepreneurs work quickly and efficiently,provide attentive customer service,increase sales,and project professional images.

Question 10

Describe the differences between entrepreneurs and small-business managers.

Question 11

List the four factors that have contributed to the expansion in entrepreneurship.

Question 12

MATCHING
Complete the following using the terms listed.
a.lifestyle entrepreneur
b.globalization
c.angel investor
d.enterprise zone
e.debt financing
f.internal locus of control
g.debt financing
h.classic entrepreneur
i.social entrepreneur
j.seed capital
k.venture capitalist
l.intrapreneurship
m.urban reserve
n.information technology
____________is the process of promoting innovation within an established company.

Question 13

MATCHING
Complete the following using the terms listed.
a.lifestyle entrepreneur
b.globalization
c.angel investor
d.enterprise zone
e.debt financing
f.internal locus of control
g.debt financing
h.classic entrepreneur
i.social entrepreneur
j.seed capital
k.venture capitalist
l.intrapreneurship
m.urban reserve
n.information technology
A(n)_____ is an individual who lends money to new ventures in exchange for an equity stake.

Question 14

Discuss the four motives frequently cited as major reasons why people become entrepreneurs.

Question 15

MATCHING
Complete the following using the terms listed.
a.lifestyle entrepreneur
b.globalization
c.angel investor
d.enterprise zone
e.debt financing
f.internal locus of control
g.debt financing
h.classic entrepreneur
i.social entrepreneur
j.seed capital
k.venture capitalist
l.intrapreneurship
m.urban reserve
n.information technology
_________ refers to the characteristic of entrepreneurs believing that they control their own destiny.

Question 16

MATCHING
Complete the following using the terms listed.
a.lifestyle entrepreneur
b.globalization
c.angel investor
d.enterprise zone
e.debt financing
f.internal locus of control
g.debt financing
h.classic entrepreneur
i.social entrepreneur
j.seed capital
k.venture capitalist
l.intrapreneurship
m.urban reserve
n.information technology
A(n)_____ starts a business to gain flexibility in work hours and control over his or her life.

Question 17

MATCHING
Complete the following using the terms listed.
a.lifestyle entrepreneur
b.globalization
c.angel investor
d.enterprise zone
e.debt financing
f.internal locus of control
g.debt financing
h.classic entrepreneur
i.social entrepreneur
j.seed capital
k.venture capitalist
l.intrapreneurship
m.urban reserve
n.information technology
_____ are business firms or groups of individuals who invest in new and growing firms.

Question 18

Discuss how an entrepreneur views job security.

Question 19

MATCHING
Complete the following using the terms listed.
a.lifestyle entrepreneur
b.globalization
c.angel investor
d.enterprise zone
e.debt financing
f.internal locus of control
g.debt financing
h.classic entrepreneur
i.social entrepreneur
j.seed capital
k.venture capitalist
l.intrapreneurship
m.urban reserve
n.information technology
To secure _____,entrepreneurs borrow money from banks,finance companies,credit card companies,and family and friends.

Question 20

MATCHING
Complete the following using the terms listed.
a.lifestyle entrepreneur
b.globalization
c.angel investor
d.enterprise zone
e.debt financing
f.internal locus of control
g.debt financing
h.classic entrepreneur
i.social entrepreneur
j.seed capital
k.venture capitalist
l.intrapreneurship
m.urban reserve
n.information technology
When entrepreneurs use _____,they borrow money from banks,finance companies,and credit card companies,which must be repaid.

Question 21

List the eight major characteristics of an entrepreneur.

Question 22

Dina 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) become her own boss
B) increase her job security
C) guarantee her financial success
D) enjoy a higher quality of life

Question 23

Collin works for a large bank that recently merged with another financial institution.Word of layoffs has been discussed.Collin is most likely to become an entrepreneur in order to ________.

A) become his own boss
B) obtain job security
C) succeed financially
D) improve his quality of life

Question 24

The primary reasons people become entrepreneurs include all of the following reasons EXCEPT:

A) to be one's own boss.
B) to become a financial success.
C) to create employment opportunities for other people.
D) to create one's own job security.

Question 25

Franz and Arlene had an idea for a different type of ice cream.They struggled to open their own small business,and later,to expand production and distribution.Their products are distributed nationwide and their sales continue to increase.Franz and Arlene are examples of ________.

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

Question 26

________ are pioneers of innovations that benefit humanity.

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

Question 27

Financial success ________.

A) plays little role in motivating people to become entrepreneurs
B) is virtually guaranteed if people work hard enough starting their own businesses
C) rarely results from starting a business
D) is part of the appeal of becoming an entrepreneur

Question 28

Explain recent demographic and economic trends that create opportunities for entrepreneurs to market new goods and services.

Question 29

Saul is the CEO of Summertime,Inc.He uses the resources of the firm to expand and diversify into winter sports areas.Saul would be classified as a(n)________.

A) manager
B) entrepreneur
C) stockholder
D) venture capitalist

Question 30

What is intrapreneurship,and why is it important today?

Question 31

Which of the following statements regarding globalization and entrepreneurship is correct?

A) Most entrepreneurs are from highly developed countries.
B) Worldwide,approximately 9 percent of adults are starting or managing a new business.
C) The United States leads in the percentage of adults engaged in entrepreneurship.
D) Entrepreneurship is least common in Latin America and Asia.

Question 32

Distinguish between venture capitalists and angel investors.

Question 33

Entrepreneurs who run small businesses from their homes are called _______________.

A) small-business managers
B) serial entrepreneurs
C) homepreneurs
D) intrapreneurs

Question 34

Which of the following has contributed the LEAST to the boom in entrepreneurship?

A) information technology
B) demographic and economic trends
C) education
D) the rise of service industries

Question 35

Entrepreneurs and small-business owners both have all of the following qualities EXCEPT:

A) desire to succeed.
B) creative energy.
C) drive toward a goal.
D) growth of their company.

Question 36

An entrepreneur:

A) owns controlling interest in a company.
B) manages a business that operates in more than one country.
C) accepts the risk of starting and running a business.
D) manages a business for someone else.

Question 37

Jada is opening her own bakery.Jada is an example of a(n)________.

A) manager
B) entrepreneur
C) minority executive
D) venture capitalist

Question 38

What makes entrepreneurs unique is their overwhelming desire to ________.

A) become successful
B) utilize their creative energy
C) manage employees
D) make their business grow

Question 39

Explain the difference between debt financing and equity financing.

Question 40

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

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

Question 41

Elian wants to start a business.He takes a personality test and discovers he possesses a trait that may reduce the likelihood he will succeed.Which of the following is that trait?

A) creativity
B) low tolerance for risk
C) vision
D) internal locus of control

Question 42

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 43

Which of the following demographic/economic trends has increased the opportunities for entrepreneurs?

A) aging population
B) increase in wages
C) surplus of college graduates
D) steady interest rates

Question 44

Concerning education and entrepreneurs,all of the following statements are correct EXCEPT:

A) Hundreds of colleges and universities offer classes in entrepreneurship.
B) Some colleges and universities sponsor business plan contests.
C) Obtaining a college degree in entrepreneurship is essential before starting your own business.
D) Some colleges and universities offer entrepreneurship courses outside the usual business curriculum.

Question 45

All of the following are major advantages of buying an existing business over starting a new business EXCEPT:

A) less risk is involved.
B) product or service is not known in the marketplace.
C) obtaining financing is often easier.
D) existing suppliers and employees are in place.

Question 46

Worldwide approximately ________ of adults are starting or managing a new business.

A) 5 percent
B) 7 percent
C) 9 percent
D) 12 percent

Question 47

Enrique wants to start a new business,but his bank will not lend him the money he needs.Enrique saw an advertisement sponsored by a business organization that provides financing for promising small companies.The organization sponsoring the advertisement would be considered a(n)________.

A) venture capitalist
B) intrapreneur
C) franchiser
D) entrepreneur

Question 48

Which of the following is a major consideration in selecting a business idea?

A) Make sure no company is currently offering the product/service.
B) Select something that appeals to people around the globe.
C) Find something you love to do and are good at doing.
D) Choose a product/service that is inexpensive to sell.

Question 49

Michael is a successful financial advisor looking to invest money directly into a new consulting business in return for equity in the company.Michael is an example of a(n)________.

A) aerial entrepreneur
B) entrepreneur
C) angel investor
D) intrapreneur

Question 50

An overall idea for how to convert a business idea into a success is called ________.

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

Question 51

Paterno routinely bids on contracts even though most of the other bidders are extremely large firms.Paterno believes his company offers better service at lower prices.He is exhibiting which personality trait common in entrepreneurs?

A) creativity
B) tolerance for failure
C) high energy level
D) self-confidence

Question 52

Entrepreneurs possess all of the following traits EXCEPT ________.

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

Question 53

Which of the following persons is LEAST likely to become an entrepreneur?

A) An inquisitive person
B) An intelligent person
C) A calm,low-energy person
D) A flexible person

Question 54

Logan 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 Logan's entrepreneurial philosophy?

A) tolerance for failure
B) internal locus of control
C) need to achieve
D) tolerance for ambiguity

Question 55

Which of the following countries has the highest level of total entrepreneurial activity?

A) Thailand
B) United Kingdom
C) United States
D) Canada

Question 56

Which of the following statements best describes how entrepreneurs view failure?

A) They view failure as a learning experience.
B) They don't worry about failing because something better always comes along.
C) They enjoy risk and gambling.
D) They worry that if they fail they'll never get another opportunity.

Question 57

Kayla is opening a home health care business that she knows will do well in her community based on prior research.Although she must repay borrowed funds,Kayla chooses ________ to maintain complete control over the business without having to answer to investors or partners.

A) debt financing
B) venture financing
C) sole proprietor financing
D) equity financing

Question 58

Katherine 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.Katherine is demonstrating ________.

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

Question 59

Studies indicate that most entrepreneurs spend ______ on their new business.

A) more than 60 hours per week
B) less than 30 hours a week
C) weekends only
D) about 40 hours per week

Question 60

Information technology can help entrepreneurs in all of the following ways EXCEPT:

A) project a professional image.
B) provide improved customer service.
C) work quickly and efficiently.
D) ensure financial success.

Question 61

________ are business organizations or groups of private individuals who invest in new or growing firms.

A) Angel investors
B) Entrepreneurs
C) Intrapreneurs
D) Venture capitalists

Question 62

Overall,the outlook for becoming an entrepreneur is not positive at this time.

Question 63

Although entrepreneurs can reap huge profits,job seekers would be better off looking to large corporations for employment opportunities.

Question 64

Owning a business,by definition,means that you are an entrepreneur.

Question 65

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

Question 66

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

Question 67

David began a lumber company and ran it for five years.Afterward,he started up a paper company and then an office company.David is a serial entrepreneur.

Question 68

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

Question 69

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

Question 70

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

A) entrepreneur
B) angel investor
C) venture capitalist
D) franchiser

Question 71

Gary recently purchased a McDonald's franchise.He is a serial entrepreneur.

Question 72

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

Question 73

Classic entrepreneurs identify business opportunities and allocate available resources to tap into those markets.

Question 74

Desire for self-management is the motivation that drives many entrepreneurs.

Question 75

Growth in entrepreneurship is a worldwide phenomenon.

Question 76

Desire for improved quality of life is often a motivation for becoming an entrepreneur.

Question 77

Entrepreneurs are managers,and managers are entrepreneurs.

Question 78

___________ has a long-standing and well-known record of encouraging intrapreneurship.

A) IBM
B) 3M
C) General Motors Co.
D) Microsoft Corporation

Question 79

Studies confirm that the personality traits common to entrepreneurs are very similar to those required for managerial success.

Question 80

_____ are specific geographic areas designated for economic revitalization.

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