Deck 6: Starting Your Own Business: the Entrepreneurship Alternative

Question 1

MATCHING
Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.targeted employment area
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
A(n) _____ starts a business to gain flexibility in work hours and control over his or her life.

Answer 1

h

Question 2

MATCHING
Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.targeted employment area
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
A(n) _____ is a business organization or group of private individuals who invest early-stage, high-potential growth companies.

Answer 2

c

Question 3

MATCHING
Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.targeted employment area
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
A person who identifies a business opportunity and allocates available resources to tap that market is a(n) _____.

Answer 3

g

Question 4

MATCHING
Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.targeted employment area
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
_____ helps entrepreneurs work quickly and efficiently, provide attentive customer service, increase sales.

Question 5

MATCHING
Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.targeted employment area
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
_____ refers to the characteristic of entrepreneurs believing that they control their own destiny.

Question 6

MATCHING
Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.targeted employment area
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
_____ is the process of promoting innovation within the structure of an existing organization.

Question 7

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

Question 8

MATCHING
Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.targeted employment area
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
When entrepreneurs use _____, they borrow money from banks, finance companies, credit card companies, and family or friends that must be repaid.

Question 9

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

Question 10

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

Question 11

MATCHING
Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.targeted employment area
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
A(n)_____ recognizes a societal problem and uses business principles to develop innovative solutions.

Question 12

MATCHING
Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.targeted employment area
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
A(n) _____ is a rural area or an area that has experienced an unemployment rate of at least 150 percent of the national average.

Question 13

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

Question 14

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

Question 15

Discuss lifestyle entrepreneurs.

Question 16

MATCHING
Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.targeted employment area
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
A(n) _____ project is initiated by an employee who conceives an idea, convinces top management of a company of its potential, and then recruits human and other resources from within the company to turn that idea into a commercial project.

Question 17

MATCHING
Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.targeted employment area
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
Loans from banks are a source of _____.

Question 18

MATCHING
Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.targeted employment area
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
A(n) _____ is an individual who invests money directly in new ventures in exchange for equity.

Question 19

MATCHING
Complete the following using the terms listed.
a.Seed capital
b.angel investor
c.venture capitalist
d.debt financing
e.Information technology
f.social entrepreneur
g.classic entrepreneur
h.lifestyle entrepreneur
i.targeted employment area
j.skunkworks
k.Intrapreneurship
l.Internal locus of control
_____ is the initial funding used to launch a company.

Question 20

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

Question 21

_____ 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 22

Syed and Mica 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. Syed and Mica are examples of _____.

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

Question 23

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

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

Question 24

What is intrapreneurship, and why is it important today?

Question 25

List the eight major characteristics of an entrepreneur.

Question 26

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

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

Question 27

Distinguish between venture capitalists and angel investors.

Question 28

_____ focus on solving society's challenges through their businesses.

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

Question 29

Vaida 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 30

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 31

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

Question 32

Michelle works for a large bank that recently merged with another financial institution. Word of layoffs has been discussed. Michelle 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 33

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 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) Economies driven by innovation

Question 35

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

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 36

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

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

Question 37

Explain the difference between debt financing and equity financing.

Question 38

An entrepreneur:

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

Question 39

Which of the following statements regarding 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 40

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

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

Question 41

Philomina 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 42

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 43

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 44

Deena 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. Deena is demonstrating _____.

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

Question 45

Claude 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 Claude's entrepreneurial philosophy?

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

Question 46

Who 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 47

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

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

Question 48

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 49

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 50

Aisha 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 51

Which of the following is an example of a country with a factor-driven economy?

A) Thailand
B) The United States
C) Zambia
D) The United Kingdom

Question 52

Entrepreneurs possess all of the following traits EXCEPT _____.

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

Question 53

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

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 has to major in business to become an entrepreneur.
D) some colleges and universities offer entrepreneurship courses outside the usual business curriculum.

Question 54

Simone 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, Simone 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

Gary 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 56

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

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

Question 57

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 58

Which of the following persons 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 59

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 60

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 61

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 62

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

Question 63

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

Question 64

Miguel 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. Michael is an example of a(n) _____.

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

Question 65

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 66

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

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

Question 67

Juanita 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 68

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

Question 69

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

Question 70

_____ 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 71

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

Question 72

_____ percent of large firms allocate funds toward intrapreneurship.

A) Twenty
B) Five
C) Fifteen
D) Thirty

Question 73

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

Question 74

Stefan wants to start a new business, but his bank will not lend him the money he needs. Stefan 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 _____.

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

Question 75

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 76

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

Question 77

_____ are specific geographic areas designated for economic revitalization.

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

Question 78

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

Question 79

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

Question 80

Jamal 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. Jamal is a social entrepreneur.