Deck 1: The Twenty-First-Century Entrepreneur

Question 1

The business time line demonstrates both constants and natural evolution in the development of the United States.

Answer 1

True

Question 2

In the late 1970s and 1980s, the United States occupied the dominant economic position in the world.

Answer 2

False

Question 3

Self-employed people make up less than 20 percent of the workers in the United States.

Answer 3

True

Question 4

One of the huge advantages of starting one's own business is that someone else can be the boss.Small business owners are motivated by two areas to start a business: the desire to be their own bosses and to set their own working hours.

Question 5

Charles Wilson, secretary of defense for President Eisenhower, stated, "What is good for General Motors is good for the nation."

Question 6

Today many of the multinational firms in the United States are technology firms that began in the late 1970s and early 1980s.

Question 7

Close to 50 percent of the millionaires in the United States are entrepreneurs.

Question 8

Success in an entrepreneurial business can only be achieved with brutally hard and long hours.

Question 9

Entrepreneurial business is not important to the U.S.economy.

Question 10

The Great Depression of the 1930s encouraged industrial concentration.

Question 11

The rate of small-business failure has declined.

Question 12

According to Thomas Stanley and William Donko in their book The Millionaire Next Door, 50 percent of the millionaires in the United States are self-employed.

Question 13

Corporate America employs more people now than it did 10 years ago.

Question 14

The United States Small Business Administration (SBA)provides a wealth of information and assistance at all levels of organizational development and management for new entrepreneurial businesses.

Question 15

A customer of a small business could be considered an important stakeholder to the success of a company.

Question 16

Small companies can take advantage of economies of scale better than large firms.

Question 17

Profit margins are key to successful businesses.

Question 18

Alexis de Tocqueville, the French statesman, stated, "United States was not so much a nation with ventures … but instead a nation of innumerable small ventures."

Question 19

A critical element that an entrepreneur must solve for success is to develop the ability to generate consistent and growing sales.

Question 20

Entrepreneurial businesses fail to provide a means to meet the varied demands that individuals face in a society.

Question 21

There are widespread efforts worldwide to encourage the development of small and medium entrepreneurs.

Question 22

When using a harvest plan, small companies are organized to grow rapidly and they have no debt.

Question 23

A small business start-up should be designed to take advantages of the skills of the founder or founders.

Question 24

Small business growth is important in the United States and the world.

Question 25

A small business's harvest plan is to put the profits back into the company.

Question 26

The development plan of a venture capital start-up is oriented around positive cash flow.

Question 27

A venture capital start-up is oriented toward the personal goals of the founder(s).

Question 28

Large companies understand their customers more in the local area compared to a small firm.

Question 29

Venture capitalists typically do not invest more than $2 million.

Question 30

Each business plan, like every business, should have its own voice, feel, and style.

Question 31

The repayment rate on microloans is typically less than 50 percent, a much lesser repayment rate than on most types of loans.

Question 32

Entrepreneurial businesses have the ability to make greater profits in markets that have been ignored by larger corporations.

Question 33

The presence of venture capital for start-ups is limited outside of the United States.

Question 34

A small business start-up is typically oriented toward the personal goals of venture capitalists.

Question 35

According to the U.S.government, a small business is classified as any business with fewer than 500 employees.

Question 36

Heather Schuck, owner of Glamajama, is an example of how women can concentrate on more than one facet of life.

Question 37

Facebook and LinkedIn were founded as entrepreneurial businesses, but they are more accurately described as venture capital-backed businesses.

Question 38

A small business start-up is typically self-funded or closely funded by the founder.

Question 39

An entrepreneurial business's resources are less constrained than those of venture capital-backed business.

Question 40

In 2001, the federal General Accounting Office discovered that in the areas where military bases closed, the unemployment rate was less than the national average.This is because of the start-up of new small businesses in the areas.

Question 41

Identify a true statement about the history of entrepreneurial businesses in the United States.

A)The 1880s saw the initial development of the nation's large industrial base.
B)The Great Depression of the 1930s was harder on mature businesses than on entrepreneurial businesses.
C)Entrepreneurial businesses as a percentage of the U.S.economic output began to grow exponentially following World War II.
D)Steel and automobile manufacturing in the United States flourished in the late 1970s and early 1980s.

Question 42

Compared to large corporations, entrepreneurial businesses

A)play just as important a part in our economy.
B)attract more attention in the media.
C)are more visible.
D)have more resources at their disposal.

Question 43

________ aid(s), counsel(s), assist(s), and protect(s)the interests of small business concerns.

A)The U.S.Small Business Administration
B)Stakeholders
C)Fortune 500 companies
D)Medium-sized businesses

Question 44

The Small Business Administration was organized as a part of

A)the Small Business Administration Law.
B)the Small Business Act of July 30, 1953.
C)the Small Business Act of 1950.
D)the Small Business Agency of 1960.

Question 45

Which one of the following is a huge advantage for small business owners to start a business?

A)Desire to be one's own boss
B)Benefit the stakeholders
C)Desire to work for others
D)Desire to be efficient and productive

Question 46

The latest U.S.Census reports indicate that firms with more than 500 employees represent approximately 35 percent of all full-time employees in the United States.

Question 47

Throughout U.S.history, from the 1800s to today, how would you characterize the role and impact of small businesses?

A)Small businesses in general had a real roller coaster ride and suffered along with everyone else during the downturns.
B)Small businesses were not impacted much by either economic downturns or increased prosperity.
C)The number of small businesses decreased more than big businesses.
D)Small businesses have proven to be more resilient than big businesses and have actually helped to improve the economy.

Question 48

Small companies have flourished for all the following reasons EXCEPT:

A)they respond more quickly.
B)they operate more effectively.
C)they employ more skilled people.
D)they often expand easily in mature industries.

Question 49

The development and implementation of a new business is part ________ and part ________.

A)luck; skill
B)genius; hard work
C)resources; hard work
D)art; science

Question 50

The success of entrepreneurial businesses occurs partially because they are ________.

A)more focused than their large corporate counterparts
B)invested heavily in policies and procedures
C)characterized by corporate layers of management
D)responsible to public stockholders

Question 51

Until the mid-1880s, almost all U.S.businesses were ________.

A)small
B)medium
C)large
D)indifferent

Question 52

What term is used to describe Walmart's ability to purchase more advertising space at a lower cost per ad?

A)Advertising bonus
B)Buying bonus
C)Volume excess
D)Economies of scale

Question 53

During the 1970s and 1980s, the ________ occupied the dominant economic position in the world.

A)Americans
B)Japanese
C)Russians
D)Germans

Question 54

According to the book, the development and implementation of a new business is

A)part art and part science.
B)part planning and part money.
C)a combination of creativity and art.
D)none of these.

Question 55

What are the critical elements that an entrepreneur must solve for success?

A)An effective sales generation model
B)Sustainable operating profit margins
C)Being properly financed
D)All of these

Question 56

Years ago, economists mistakenly predicted that small businesses would

A)be replaced by a smaller number of big businesses.
B)replace bigger businesses.
C)be replaced by franchises.
D)replace franchises.

Question 57

In the context of the initial developments of the industrial base in the United States, which of the following statements is true about robber barons?

A)They ensured that smaller operations were effectively put out of business.
B)They quickly came to dominate new sectors of the economy.
C)They were unable to take advantage of the economies of scale that were possible with the industrial age.
D)They came to dominate industrial sectors that had existed historically.

Question 58

________ lead(s)to a condition where a single firm making 100 percent of the product is the most efficient.

A)Harvest plan
B)Stakeholders
C)Economies of scale
D)Business strategy

Question 59

A business plan should be a tool to think through a wide range of issues related to starting and growing a business.

Question 60

During Eisenhower's presidency, who stated, "What is good for General Motors is good for the nation"?

A)Franklin Roosevelt
B)Henry Ford
C)Andrew Carnegie
D)Charles Wilson

Question 61

What percentage of U.S.millionaires are self-employed?

A)25
B)33 1/3
C)50
D)66.7

Question 62

The World Bank estimates that one of the strongest factors in the growth of any nation's GNP (gross national product)is ________.

A)small and medium-sized enterprises
B)large businesses
C)global trading
D)higher tariffs

Question 63

The term ________ refers to the fact that women, like minorities, may be hired by large firms but experience limits placed on their advancement.

A)"grapevine"
B)"androcentric"
C)"glass ceiling"
D)"glass cliff"

Question 64

Which one of these large companies started out as a small business?

A)Apple
B)Hewlett-Packard
C)Facebook
D)All of these

Question 65

Which of the following is a difference between large organizations and entrepreneurial businesses?

A)Unlike entrepreneurial businesses, large organizations have a better understanding of the local community in which they conduct business.
B)Unlike entrepreneurial businesses, large organizations will regularly ignore business opportunities if they fail to believe the results will generate high profits.
C)Unlike large organizations, entrepreneurial businesses are burdened by policies, procedures, corporate layers of management, and public stockholders.
D)Unlike large organizations, entrepreneurial businesses do things more efficiently because they are easily able to achieve economies of scale.

Question 66

Which kind of business is NOT likely to be eligible for a microloan program?

A)Telecommunication center
B)Meals delivery
C)Serving weaving baskets
D)Washing clothes

Question 67

Microloans have been in existence for years; they are most commonly made directly to ________ for self-development.

A)men
B)women
C)young adults
D)Hispanics

Question 68

All of these are harvest plan strategies EXCEPT:

A)selling the business to another firm.
B)selling it to a group of investors.
C)participating in an IPO (public offering of stock).
D)franchising.

Question 69

The largest group of new business owners is ________.

A)Hispanics
B)retired men
C)women
D)Asians

Question 70

What term is used to describe individuals or other organizations that impact the success of a business?

A)Corporate managers
B)Capitalists
C)Stakeholders
D)Owners

Question 71

Entrepreneurial business resources are more ________ than venture capital-backed businesses.

A)plentiful
B)constrained
C)restrained
D)inverse ratio

Question 72

Which of the following is NOT a factor in a small business's success?

A)Business owners have both the opportunity and the responsibility to lead.
B)Small business owners want and need to be independent.
C)Other people's needs and wants are not as important as the small business owner's.
D)Business owners need to carefully consider the needs of stakeholders.

Question 73

In the context of entrepreneurship around the world, identify a true statement about microloans.

A)Such loans typically see much lower repayment rate than most types of loans.
B)The failure of such loans has resulted in a decreasing dedication of the U.S.aid budget to microloans for developing nations.
C)The repayment rate on such loans is typically 50 percent.
D)The success of such loans has been substantial, with great strides being made in many desperately poor nations.

Question 74

Women entrepreneurs are starting small businesses for all but one of the following reasons

A)better ideas for small businesses.
B)greater control of their lives.
C)manage family needs.
D)hit the glass ceiling.

Question 75

A harvest plan for a small business means the owner is

A)reaping the benefits.
B)borrowing money to keep operating.
C)planning to exit a small business.
D)returning the profits into a company.

Question 76

Which of the following was the outcome of the Great Depression of the 1930s?

A)It led to the initial development of a large industrial base in the United States.
B)It was harder on larger more mature businesses than on entrepreneurial businesses.
C)The government deregulated all small- and medium-sized enterprises.
D)Entrepreneurial business as a percentage of the U.S.economic output began to decline.

Question 77

What is the percentage of self-employed people in the workforce?

A)10
B)20
C)30
D)40

Question 78

Owning a small business provides a means to meet varied demands that individuals face in society.Which of the following is NOT a need mentioned in the text's discussion of how society benefits from small business ownership?

A)Small business owners leave big businesses because of the lack of promotion opportunities.
B)Entrepreneurs prefer the flexibility to deal with the needs of family and children that business ownership provides.
C)Small business owners have greater ability to attract financing from venture capital firms.
D)All of these

Question 79

Small businesses act as a catalyst for social change because

A)they have the ability to generate profits in markets ignored by large corporations.
B)owners have a better understanding of how to operate their business.
C)they are often started when the economy is booming.
D)communities always want to have extra money that can be obtained from having small businesses.

Question 80

Characteristics of a small business start-up include all EXCEPT which one of the following?

A)Self-funded
B)Designed to take advantage of the skills of the founder(s)
C)Oriented toward positive cash flow
D)Over 100 employees