Question 1

A professor of entrepreneurship is trying to identify students who are the best prospects for entrepreneurial careers. Based on prior research and especially the work of J. B. Rotter, she is looking for students having a

Accepted Answer

Research has shown that individuals with a high internal locus of control tend to be more proactive and have a greater sense of control over their environment, both of which are important qualities for successful entrepreneurs.

Question 2

Small businesses that have great prospects for growth are called ____.

Accepted Answer

The term used to describe small businesses with great growth prospects is "gazelles." Out of the given options, only choice D matches this definition. The other options (gorillas, antelopes, and jaguars) do not accurately reflect the characteristics of fast-growing small businesses.

Question 3

In terms of willingness to assume risks, entrepreneurs show

Accepted Answer

The answer of In terms of willingness to assume risks,...

Question 4

Amy Mendez is contemplating opening her own business. She should

Accepted Answer

Many banks have historically been slow to offer loans to women, although this is changing over time.

Question 5

A prospective entrepreneur is 36 years old. She realizes that, other things being equal, her age may affect her chances for success. She should

Accepted Answer

Age can have some impact on an entrepreneur's success, but it is not the only factor. Research has shown that older entrepreneurs tend to have more experience, better networks, and access to more resources. Waiting eight to ten years may not be necessary, and it is also not accurate to assume that prospects were much better when the entrepreneur was in her early 20s. Trying entrepreneurship only if someone else in the family has an independent source of income is not a good approach as it would limit the entrepreneur's potential and independence. Therefore, the best choice is to go for it since the entrepreneur is at a good age to start a business.

Question 6

A firm that provides substantial profits to its owner is called a(n) ____.

Accepted Answer

The answer of A firm that provides substantial profits to...

Question 7

Compared to their larger competitors, small firms may be better positioned to provide good customer service because they

Accepted Answer

Small firms are less bureaucratic, allowing for quick and efficient decision-making, which can result in better customer service.

Question 8

A woman wants to start a construction company. She should realize that

Accepted Answer

The woman should be aware that she may face gender discrimination in the process of starting a construction company. It is important for her to be prepared to face challenges and persist in pursuing her goal despite any obstacles that may arise. Option A is false as there are women who have successfully started and run construction businesses with more than two or three employees. Option C is also untrue as breaking into the "good old boy network" may be difficult but not impossible. Option D promotes gender stereotypes and limiting oneself according to traditional gender roles.

Question 9

Entrepreneurs often produce innovations related to

Accepted Answer

The answer of Entrepreneurs often produce innovations related to
...

Question 10

In comparison to the general population, entrepreneurs have a

Accepted Answer

Research shows that entrepreneurs tend to have a higher internal locus of control, meaning they believe they have control over their own destiny and are more likely to take proactive steps to achieve their goals. This is in contrast to a lower internal locus of control, where individuals may feel that external factors control their fate (such as luck or fate) or a higher external locus of control, where individuals may believe that others or external factors control their destiny.

Question 11

An entrepreneurial team is a group composed of

Accepted Answer

An entrepreneurial team is a group of individuals who work together as entrepreneurs, typically within the same firm or on the same project.

Question 12

Compared to the general population, entrepreneurs tend to have

Accepted Answer

Research has shown that entrepreneurs tend to have a strong passion for their business or cause, which drives their motivation and persistence. While entrepreneurs do take risks, they also tend to have a higher tolerance for risk than the general population. However, there is no evidence to suggest that entrepreneurs have a higher need for affiliation, which refers to a desire for social connections and relationships. Additionally, entrepreneurs often exhibit an internal locus of control, meaning they believe they have control over their own success rather than attributing it to external factors.

Question 13

The ideal period of life for starting a business is

Accepted Answer

The answer of The ideal period of life for starting...

Question 14

A small firm that is profitable but provides only a very modest return to the entrepreneur is

Accepted Answer

A microbusiness typically refers to a very small enterprise that has fewer than five employees and generates low revenue. It may be profitable, but it may not provide a high return to the entrepreneur.

Question 15

We would expect an opportunistic entrepreneur to be

Accepted Answer

An opportunistic entrepreneur would need to be well-educated in non-technical matters, as they are seeking out and taking advantage of opportunities in the market. This would require an understanding of business and market trends, as well as the ability to calculate risk and make strategic decisions. Being paternalistic or unwilling to plan for future growth would not necessarily be traits associated with opportunistic entrepreneurs, and being reluctant to delegate authority could hinder their ability to seize opportunities.

Question 16

Potential advantages of small entrepreneurial firms include:

Accepted Answer

Small entrepreneurial firms can focus on satisfying their customers by providing personalized attention and customized service. They can also concentrate on delivering high-quality products or services that meet the specific needs of their target audience. Additionally, small firms can often identify and pursue unique niches in the marketplace that larger companies may overlook. All of these factors can contribute to their success and competitiveness.

Question 17

The following statements are true of women entrepreneurs except:

Accepted Answer

Women entrepreneurs face significant challenges accessing capital, with studies showing they receive less funding than male entrepreneurs, are more likely to use personal savings to start their business and face higher interest rates on loans.

Question 18

One drawback of entrepreneurship is the

Accepted Answer

The risk of business failure is a significant drawback of entrepreneurship. Starting a new business involves inherent uncertainty and risks, including financial risks, market risks, and operational risks. As such, entrepreneurs must be willing to take significant risks, both personally and financially, in order to succeed in the long term.

Question 19

Consistently operating with _____ can set a small business apart as being trustworthy when stories of corporate greed and corruption abound.

Accepted Answer

Integrity refers to being honest and having strong moral principles, which can help a small business stand out in a world where questionable business practices are often reported in the media. Consistently operating with integrity can build a strong reputation and increase customer trust and loyalty.

Question 20

When a 32-year-old construction worker launches a construction firm after seven years' experience in that industry, he

Accepted Answer

According to research, the ideal age for starting a business is between 30 and 40 years old. The person in this scenario is 32 years old and has seven years of experience in the construction industry, so he is launching his venture during the ideal time of life for starting a business.

Quiz 1: The Entrepreneurial Life