Deck 6: Entrepreneurship and Starting a Small Business

Question 1

Most entrepreneurs get the ideas for their products and services from a flash of inspiration.

Answer 1

False

Question 2

Successful entrepreneurs rely on others for direction and support.

Answer 2

False

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

Entrepreneurs take calculated risks.

Question 7

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

Question 8

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

Question 9

It is important for an entrepreneur to be highly energetic.

Question 10

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

Question 11

Successful entrepreneurs accept the risk of failure.

Question 12

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

Question 13

Entrepreneurs avoid risk and place a high priority on security.

Question 14

Most entrepreneurs prefer working for someone else.

Question 15

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

Question 16

Entrepreneurship is another name for management.

Question 17

People who are 16 to 34 years old are not attracted to starting their own business.

Question 18

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 19

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

Question 20

Entrepreneurs are motivated by the desire to earn a profit.

Question 21

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

Question 22

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

Question 23

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

Question 24

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 25

The Internet provides a resource for entrepreneurs for information regarding the steps needed to take their business online.

Question 26

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

Question 27

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

Question 28

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

Question 29

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

Question 30

Opponents of home-based businesses successfully lobbied Congress to reduce the tax deductions available for home offices.

Question 31

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

Question 32

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

Question 33

Successful entrepreneurs often make use of professional managers to introduce new ideas.

Question 34

Entrepreneurial spirit is unique to a small business environment.

Question 35

Web-based businesses avoid the risk of failure faced by traditional startup businesses.

Question 36

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

Question 37

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

Question 38

Small businesses have not significantly participated in web-based online sales.

Question 39

Many micropreneurs are home-based business owners.

Question 40

Corporate downsizing reduces the opportunities for home-based businesses.

Question 41

Ramsey is a dreamer rather than a doer.This is an important attribute for an entrepreneur since their job is to be creative and develop new ideas that are then implemented by others.
Entrepreneurs must be self-directed,self-nurturing,and action-oriented.They do not depend on others to follow through on their ideas.

Question 42

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.
Many corporate managers have left their jobs to become entrepreneurs.

Question 43

Entrepreneurial teams increase the cooperation between marketing,production and other functional areas of a business venture.
In entrepreneurial teams,all members work together to conceive,make,and market a new product or service.A team may be better than an individual entrepreneur because team members can combine creative skills with production and marketing skills right from the start.

Question 44

Jacques has eliminated the risk of entrepreneurship by preparing a detailed business plan.
Entrepreneurs must be able to take calculated risk because there are no guarantees of success.Successful entrepreneurs must be willing to accept uncertainty.However,they should take only calculated risks if they can help it.

Question 45

A National Business Incubator Association study indicates that over 80 percent of incubator graduates remain in business.

Question 46

Jason,Robin,and Ian currently work in the marketing department of a large corporation.They have similar backgrounds and training and are thinking about leaving their 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.
Entrepreneurial teams should include people with different skills and backgrounds.The idea behind an entrepreneurial team is to bring together the creative,production and marketing skills necessary to ensure success.

Question 47

Juanita wants to operate her own business.Although she admits it would be nice to earn a healthy profit,her primary motivation is the excitement and challenge of starting and running a business.Juanita'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.
Many factors motivate entrepreneurs,including the challenges and opportunities of starting and operating their own business.Additionally,most entrepreneurs seek a sense of achievement rather than power.

Question 48

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

Question 49

The Spotlight on Small Business box featured several new entrepreneurs,some as young as 10 years old,proving "age is just a number" when it comes to having a vision for a business and bringing it to fruition.
Ideas for businesses are often conceived by young people.They act upon those ideas and develop successful businesses.

Question 50

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

Question 51

Successful entrepreneurs are exclusively motivated by the desire to become rich.
Entrepreneurs are often motivated by the challenges and opportunities of starting and operating a business,and by the chance to be independent.Thus,earning a profit is only one of the goals that motivate entrepreneurs.

Question 52

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

Question 53

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

Question 54

Kylie is employed by Street Wheels,a large corporation that produces accessories for scooters,bicycles,and other children's vehicles.She is a creative force within the company and has helped create and launch several new successful products.Kylie is an example of an intrapreneur.
Intrapreneurs are creative people who work within corporations to launch new products and generate new profits.

Question 55

Small businesses have very few opportunities to outsource their business.
With new technology,outsourcing opportunities for small businesses have increased.As indicated in the Reaching Beyond our Borders box,websites such as Elance provide small businesses with a central hub to offer their business services to others,as well as find services that they need.

Question 56

Anthony is an employee of a textbook publisher.However,his desire is to establish a home-based business providing his services to a variety of publishers.Anthony's primary motivation is to escape the 9 to 5 world of corporate publishing and to enjoy the opportunity of working for himself.Anthony is an example of a micropreneur.
Business writer Michael LeBoeuf coined the term "micropreneur" to refer to business owners who are interested in simply enjoying a better lifestyle and want the opportunity to make a living doing the kind of work they enjoy.

Question 57

State governments create new startup business organizations called enterprise zones that are later sold to private investors.
Also known as empowerment zones or enterprise communities,enterprise zones are specific geographic areas where state governments try to attract private investment by offering lower taxes for locating your business there.

Question 58

To be successful,entrepreneurs are dependent on the support of others for encouragement.
Entrepreneurs must be self-nurturing.They must believe in their ideas when others do not.

Question 59

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

Question 60

Independence,challenge,and opportunity are among the key reasons given by those who assume the risks of entrepreneurship.
Many factors encourage people to accept the risks associated with entrepreneurship,including the opportunities,independence,and challenges associated with starting and operating a business.Clearly the potential of profits is also a great motivator for entrepreneurs.

Question 61

Small businesses create 60 - 80% of the new jobs in the United States each year.

Question 62

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

Question 63

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

Question 64

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

Question 65

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

Question 66

Conventional wisdom reports that 44 percent of all small businesses fail in their first four years of operation.

Question 67

When Kelsey began the Cookie Kitchen,she located the operation at a small business center to get help with accounting,legal advice,and secretarial help for a very low cost.Electing to join the incubator helped her company to survive because it provided assistance while her company was in its infancy.
Incubators are centers that offer new businesses low-cost offices with basic business services such as accounting,legal advice and secretarial help.They provide assistance in the critical stage of early development.

Question 68

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

Question 69

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

Question 70

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

Question 71

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

Question 72

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

Question 73

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

Question 74

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

Question 75

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.
The U.S.federal government passed the Immigration Act of 1990,which created a category of "investors visas" intended to lure entrepreneurs to our country.Enterprise zones and investment tax credits have also been used to encourage entrepreneurs.

Question 76

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

Question 77

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

Question 78

Economist Bruce Kirchhoff contends that business failures are much lower than traditionally reported.

Question 79

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

Question 80

Jon received a letter in the mail explaining that HE COULD EARN THOUSANDS!!!! by working just a few hours from home.Most likely Jon's letter was a work-at-home scam.
Persons interested in working from home must be cautious of scam opportunities,which will often take your money upfront,or never pay you for work provided.