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

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

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

Entrepreneurs are motivated by the desire to earn a profit.

Question 5

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 6

Most entrepreneurs prefer working for someone else.

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

Entrepreneurs take calculated risks.

Question 14

Successful entrepreneurs rely on others for direction and support.

Question 15

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

Question 16

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

Question 17

It is important for an entrepreneur to be highly energetic.

Question 18

Successful entrepreneurs accept the risk of failure.

Question 19

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

Question 20

Entrepreneurship is another name for management.

Question 21

Corporate downsizing reduces the opportunities for home-based businesses.

Question 22

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

Question 23

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

Question 24

Many micropreneurs are home-based business owners.

Question 25

Small businesses have not significantly participated in online sales.

Question 26

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

Question 27

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

Question 28

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

Question 29

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

Question 30

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

Question 31

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

Question 32

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

Question 33

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

Question 34

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

Question 35

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

Question 36

Entrepreneurial spirit is unique to a small business environment.

Question 37

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

Question 38

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

Question 39

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

Question 40

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 41

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

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

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

Question 45

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

Question 46

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

Question 47

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

Question 48

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 49

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 50

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

Question 51

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

Question 52

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 53

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 54

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

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

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

Question 57

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

Question 58

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 59

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 60

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 61

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

Question 62

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

Question 63

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

Question 64

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

Question 65

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

Question 66

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

Question 67

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

Question 68

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

Question 69

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

Question 70

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

Question 71

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

Question 72

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

Question 73

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

Question 74

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

Question 75

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

Question 76

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

Question 77

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

Question 78

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

Question 79

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

Question 80

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