Deck 6: Starting Your Own Business

Question 1

MATCHING
Complete the following using the terms listed.
a.seed capital
b.globalization
c.angel investor
d.venture capitalist
e.debt financing
f.information technology
g.debt financing
h.social entrepreneur
i.classic entrepreneur
j.business incubator
k.crowd funding
l.Skunkworks
m.intrapreneurship
n.business plan
_____ are business firms or groups of individuals who invest in new and growing firms.

Answer 1

d

Question 2

MATCHING
Complete the following using the terms listed.
a.seed capital
b.globalization
c.angel investor
d.venture capitalist
e.debt financing
f.information technology
g.debt financing
h.social entrepreneur
i.classic entrepreneur
j.business incubator
k.crowd funding
l.Skunkworks
m.intrapreneurship
n.business plan
_____ is the initial funding needed to launch a new venture.

Answer 2

a

Question 3

MATCHING
Complete the following using the terms listed.
a.seed capital
b.globalization
c.angel investor
d.venture capitalist
e.debt financing
f.information technology
g.debt financing
h.social entrepreneur
i.classic entrepreneur
j.business incubator
k.crowd funding
l.Skunkworks
m.intrapreneurship
n.business plan
_____ helps entrepreneurs work quickly and efficiently,provide attentive customer service,increase sales,and project professional images.

Answer 3

f

Question 4

Describe the differences between entrepreneurs and small-business owners and managers

Question 5

MATCHING
Complete the following using the terms listed.
a.seed capital
b.globalization
c.angel investor
d.venture capitalist
e.debt financing
f.information technology
g.debt financing
h.social entrepreneur
i.classic entrepreneur
j.business incubator
k.crowd funding
l.Skunkworks
m.intrapreneurship
n.business plan
When entrepreneurs use _____,they borrow money from banks,finance companies,and credit card companies,which must be repaid.

Question 6

MATCHING
Complete the following using the terms listed.
a.seed capital
b.globalization
c.angel investor
d.venture capitalist
e.debt financing
f.information technology
g.debt financing
h.social entrepreneur
i.classic entrepreneur
j.business incubator
k.crowd funding
l.Skunkworks
m.intrapreneurship
n.business plan
A(n)_____ program is initiated by an employee who conceives an idea and then recruits resources from within the firm.

Question 7

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

Question 8

Describe the importance of developing a business plan.

Question 9

MATCHING
Complete the following using the terms listed.
a.seed capital
b.globalization
c.angel investor
d.venture capitalist
e.debt financing
f.information technology
g.debt financing
h.social entrepreneur
i.classic entrepreneur
j.business incubator
k.crowd funding
l.Skunkworks
m.intrapreneurship
n.business plan
_____ is the process of promoting innovation within their organizational structures.

Question 10

MATCHING
Complete the following using the terms listed.
a.seed capital
b.globalization
c.angel investor
d.venture capitalist
e.debt financing
f.information technology
g.debt financing
h.social entrepreneur
i.classic entrepreneur
j.business incubator
k.crowd funding
l.Skunkworks
m.intrapreneurship
n.business plan
_____ is a new funding source involving groups and individuals who donate small sums of money through the internet.

Question 11

MATCHING
Complete the following using the terms listed.
a.seed capital
b.globalization
c.angel investor
d.venture capitalist
e.debt financing
f.information technology
g.debt financing
h.social entrepreneur
i.classic entrepreneur
j.business incubator
k.crowd funding
l.Skunkworks
m.intrapreneurship
n.business plan
_____ provide start-up companies with low-cost shared business facilities.

Question 12

Distinguish between venture capitalists and angel investors.

Question 13

MATCHING
Complete the following using the terms listed.
a.seed capital
b.globalization
c.angel investor
d.venture capitalist
e.debt financing
f.information technology
g.debt financing
h.social entrepreneur
i.classic entrepreneur
j.business incubator
k.crowd funding
l.Skunkworks
m.intrapreneurship
n.business plan
A(n)_____ is an individual who lends money to new ventures in exchange for an equity stake.

Question 14

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

Question 15

MATCHING
Complete the following using the terms listed.
a.seed capital
b.globalization
c.angel investor
d.venture capitalist
e.debt financing
f.information technology
g.debt financing
h.social entrepreneur
i.classic entrepreneur
j.business incubator
k.crowd funding
l.Skunkworks
m.intrapreneurship
n.business plan
A person who identifies a business opportunity and allocates available resources to tap that market is a(n)_____.

Question 16

MATCHING
Complete the following using the terms listed.
a.seed capital
b.globalization
c.angel investor
d.venture capitalist
e.debt financing
f.information technology
g.debt financing
h.social entrepreneur
i.classic entrepreneur
j.business incubator
k.crowd funding
l.Skunkworks
m.intrapreneurship
n.business plan
A(n)_____ recognizes a societal problem and uses business principles to develop innovative solutions.

Question 17

Explain the difference between debt financing and equity financing.

Question 18

MATCHING
Complete the following using the terms listed.
a.seed capital
b.globalization
c.angel investor
d.venture capitalist
e.debt financing
f.information technology
g.debt financing
h.social entrepreneur
i.classic entrepreneur
j.business incubator
k.crowd funding
l.Skunkworks
m.intrapreneurship
n.business plan
To secure _____,entrepreneurs borrow money from banks,finance companies,credit card companies,and family and friends.

Question 19

MATCHING
Complete the following using the terms listed.
a.seed capital
b.globalization
c.angel investor
d.venture capitalist
e.debt financing
f.information technology
g.debt financing
h.social entrepreneur
i.classic entrepreneur
j.business incubator
k.crowd funding
l.Skunkworks
m.intrapreneurship
n.business plan
A _____ outlines the goals,methods,and standards of a company.

Question 20

MATCHING
Complete the following using the terms listed.
a.seed capital
b.globalization
c.angel investor
d.venture capitalist
e.debt financing
f.information technology
g.debt financing
h.social entrepreneur
i.classic entrepreneur
j.business incubator
k.crowd funding
l.Skunkworks
m.intrapreneurship
n.business plan
The significant increase of international marketing and sales by entrepreneurs is a result of _____.

Question 21

Explain how CEOs like George Buckley believe that intrapreneurship pays off despite the extra effort required.

Question 22

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

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

Question 23

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 24

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

Question 25

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

A)Globalization has resulted in high quality products for low-cost.
B)Most entrepreneurs are from highly developed countries.
C)Entrepreneurship is least common in Latin America and Asia.
D)The United States leads in the percentage of adults engaged in entrepreneurship.

Question 26

Angie wants to be her own boss,but she doesn't have an idea for a profitable business.What could Angie do to help her identify a successful business idea?

A)Identify the most popular companies in her area and create a replica business
B)Ask her friends and family for suggestions
C)Make a list of her interests and abilities and a list of businesses that match these interests and abilities
D)Pick an industry that is not experiencing a lot of change

Question 27

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 28

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

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

Question 29

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

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

Question 30

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 31

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 32

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

Question 33

Which is NOT a guideline to consider when starting a business?

A)List your interests and abilities
B)Carefully evaluate existing goods and services,looking for ways you can improve them.
C)Decide on a business that matches what you want and offers profit potential.
D) An analysis of a detailed,itemized budget for the entire fiscal year

Question 34

What is intrapreneurship,and why is it important today?

Question 35

________ 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 36

The most successful entrepreneurs tend to operate in industries in which a great deal of _________ is taking place and in which customers have difficulty pinpointing their precise ______________,
E) needs;change
F) innovation;needs
G) planning;funding
H) change;needs

Question 37

An entrepreneur:

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

Question 38

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 39

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

Question 40

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

A)information technology
B)globalization
C)education
D)the rise of service industries

Question 41

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 42

Anna signs a contract with SUBWAY to own and run a branch of the company.Anna is a:

A)franchisor
B)Intrapreneur
C)Visionary
D)Franchisee

Question 43

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 44

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 45

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

Question 46

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

Question 47

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 48

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

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

Question 49

Unlike an entrepreneur who starts a business from scratch,a franchisee is not responsible for:

A)Hiring employees
B)Establishing a brand
C)Obtaining financing
D)Contracting with suppliers

Question 50

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 51

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

Question 52

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 53

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

Question 54

Most entrepreneurs believe that:

A)They have a product that will change the world
B)They are smarter than their peers
C)The 9 to 5 work day is immoral
D)They won't achieve their greatest success by working for someone else

Question 55

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

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

Question 56

Entrepreneurs possess all of the following traits EXCEPT ________.

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

Question 57

Steve Jobs,the late CEO of Apple,helped make the company the world's largest marketer of smartphones,and tablet computers.Steve Jobs' contributed to this achievement.:

A)stubbornness
B)restraint
C)vision
D)intrapreneurship

Question 58

Pat routinely bids on contracts even though most of the other bidders are extremely large firms.Pat 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 59

________ are pioneers of innovations thatbenefit humanity.

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

Question 60

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 61

Students who graduate from entrepreneurship programs are more likely to be self-employed.

Question 62

In the past,most entrepreneurs started their ventures without creating formal business plans.

Question 63

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

Question 64

People should not attempt to convert their hobbies into a business,since starting a business is a serious venture.

Question 65

More than 90 percent of companies use at least one social media tool.

Question 66

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

Question 67

Successful entrepreneurs operate in industries that are experiencing a lot of change.

Question 68

All of the following companies are among the top-ten franchises in the United States EXCEPT:

A)Servpro
B)Hampton Hotels
C)Target
D)Supercuts

Question 69

Many colleges and universities offer programs in entrepreneurship.

Question 70

A(n)________ program is initiated by an employee who conceives of an idea.

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

Question 71

Obtaining financing for an existing business is easier than it is for most start-up companies.

Question 72

There is very little the government can do to encourage entrepreneurship.

Question 73

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

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

Question 74

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

A)targeted employment area and investments
B)time and money
C)workers and investments
D)space and programs

Question 75

Most entrepreneurs are skeptical of using social media to promote their businesses.

Question 76

Many entrepreneurs rely on personal savings or loans from business associates,family members,or even friends for start-up funds.

Question 77

The current outlook for becoming an entrepreneur is positive.

Question 78

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

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

Question 79

Entrepreneurs are always managers,but managers are NOT always entrepreneurs

Question 80

Growth in entrepreneurship is a worldwide phenomenon.