Deck 6: Starting Your Own Business: the Entrepreneurship Alternative

Question 1

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.

Answer 1

True

Question 2

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

Answer 2

True

Question 3

Social entrepreneurs are driven by a passion to solve social problem by adopting business principles rather than profit motive.

Answer 3

True

Question 4

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 5

Entrepreneurs are more likely to take risk with respect to business growth than most small scale business operators.

Question 6

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

Question 7

An entrepreneur who starts one business and is able to run multiple businesses thereafter can be classified as a classic entrepreneur.

Question 8

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

Question 9

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

Question 10

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

Question 11

Being your own boss as an entrepreneur means freedom to take important decisions that affect the success of your business.

Question 12

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

Question 13

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

Question 14

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

Question 15

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

Question 16

While job security is one of the principal reasons to be an entrepreneur, owning one's business may still NOT guarantee success in today's environment.

Question 17

Entrepreneurs are managers, and managers are entrepreneurs.

Question 18

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

Question 19

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

Question 20

Starting a new business is riskier and most entrepreneurs are demotivated to start up a venture because of the fear of losing their initial investment capital.

Question 21

Globalization has a negative impact on opportunities for entrepreneurs' success, due to global competition.

Question 22

Entrepreneurs generally aren't very creative people, just hard working and focused on specific problems.

Question 23

A newly establish entrepreneur does NOT need to think about the impact of global market until it grow.

Question 24

Entrepreneurs tolerate the uncertainties associated with starting a new business.

Question 25

Growth in entrepreneurship is a worldwide phenomenon.

Question 26

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

Question 27

Many colleges and universities offer programs in entrepreneurship.

Question 28

An important part of launching any new business is establishing a code of ethics.

Question 29

Generally, entrepreneurs do NOT have a high energy level.

Question 30

Growing numbers of businesses are using social media tools.

Question 31

Entrepreneurs are NOT easily discouraged from a setback or failure.

Question 32

As a rule, entrepreneurs believe in their ability to succeed.

Question 33

Entrepreneurs take credit for their successes, but often blame external conditions for their failures.

Question 34

Successful entrepreneurs have a high need to achieve.

Question 35

Jamal recently launched his grocery delivery service. He is taking advantage of an economic trend that has increased the opportunities for entrepreneurs.

Question 36

The aging of the Canadian population has made it more difficult for entrepreneurs to find opportunities.

Question 37

A successful entrepreneur is visionary.

Question 38

Compared with other countries, Canada has a relatively low level of entrepreneurship activity.

Question 39

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

Question 40

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

Question 41

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

Question 42

A large percentage of startups obtain seed capital through banks.

Question 43

Fundamental to every business is "Vision' which must be accompanied by energy and excitement? True or False?

Question 44

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

Question 45

Entrepreneurial environments created within companies can help firms retain valuable employees who might otherwise leave to start their own businesses.

Question 46

A business plan describe as one of the most important documents for new entrepreneur

Question 47

Using personal credit cards for business expenses is a good option for entrepreneurs.

Question 48

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 49

Banks CANNOT research an entrepreneur's personal credit history when making lending decisions.

Question 50

Encouraging intraprenuership will discourage employees to set up their own businesses.

Question 51

Purchasing a franchise eliminates any risk for a new entrepreneur.

Question 52

Obtaining financing for an existing business is easier than it is for most startup companies.

Question 53

Over twenty-five percent of large firms now set aside funds to support intrapreneurship.

Question 54

Angel investors seek out successful businesses with established profits.

Question 55

All entrepreneurs should be afraid of making mistakes to avoid risk of losing capital.

Question 56

Meeting the needs of customers is central to ensuring venture success.

Question 57

About 35 percent of large firms do set aside funds to support intrapreneurship.

Question 58

Enterprise zones encourage investment by offering tax advantages and incentives to businesses locating within the zones.

Question 59

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

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

Question 60

Venture capitalists take an equity stake in businesses in which they invest their funds.

Question 61

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

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

Question 62

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 63

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 64

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 65

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 66

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 67

Social entrepreneurs focus on what type of problems as a business opportunity?

A) problems of companies
B) private problems
C) human problems
D) political problems

Question 68

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 69

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 70

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

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

Question 71

The success of entrepreneurship means meeting the needs of ______.

A) employees
B) customers
C) shareholders
D) all the above

Question 72

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 73

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 74

______ are pioneers of innovations that benefit humanity.

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

Question 75

Lifestyle entrepreneurs are energized to set up businesses because of the need for ______.

A) flexibility in working and control over their life
B) the desire to invest their monies
C) desire to invest irrespective of making profit or loss
D) to gain popularity

Question 76

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

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

Question 77

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 78

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 79

Which of the following resources are essential to the entrepreneur?

A) human, financial, equipment and facility
B) time, risk, human resource, machinery
C) education, risk, financial and suppliers

Question 80

James Smith analyzed the census data of Canada and realizes the population is growing faster than that of housing development. He initiates savings to invest in real estate in the next two years. James Smith can be classified under what category of entrepreneur

A) risk taker
B) social
C) classic
D) serial