Deck 6: Fostering Entrepreneurship

Question 1

Denise Devine, founder of Devine Foods, started on the entrepreneurial path because of a glaring need for nutritional fare available for children.

Answer 1

True

Question 2

Recently, Devine Foods has worked with the U.S. Department of Commerce to develop healthier products for school lunch programs.

Answer 2

False

Question 3

Despite the number of women in business, the proportion of new business start-ups involving female entrepreneurs has declined in recent years.

Answer 3

False

Question 4

Entrepreneurship must involve introducing something totally new to the marketplace.

Question 5

Rates of entrepreneurship ebb and flow with environmental conditions. Rapid technological change tends to stimulate entrepreneurship.

Question 6

Entrepreneurship has been rapidly increasing with the growth of business throughout the past century.

Question 7

An incubator organization applies to business support processes that accelerate the successful development of start-up and fledging companies.

Question 8

Entrepreneurs and small-business owners are essentially the same.

Question 9

Businesses with fewer than 100 employees now furnish most of the employment growth in America.

Question 10

American entrepreneurs have the additional burden of dealing with governmental restrictions applied by the SBA.

Question 11

Globalization has caused many entrepreneurs to seek exciting and untapped opportunities in socialistic or communistic countries.

Question 12

The majority entrepreneurial families tend to successfully pass on their businesses to multiple generations.

Question 13

Successful family businesses have usually failed by the second generation of ownership.

Question 14

Entrepreneurs succeed primarily because they start out with a goal of heading a rapidly growing company.

Question 15

When today's most successful entrepreneurs were asked to explain why they started their own companies, they said that they wanted to work for themselves and control their own life.

Question 16

About 10 percent of the U.S. population is characterized by a predominant need to achieve.

Question 17

High achievers set moderately difficult goals, take responsibility for achieving those goals, and want immediate feedback on their performance.

Question 18

A need for achievement is consistently strong in successful entrepreneurs.

Question 19

A need for achievement, a desire for independence, self-sacrifice and self-confidence are personal attributes of most successful entrepreneurs.

Question 20

A key personal attribute of successful entrepreneurs is the ability to be self-preserving.

Question 21

It is possible to predict your likely success as an entrepreneur.

Question 22

Ana Juno has always wanted to start her own company. Her friends and family are constantly telling her that she would be a great success because of her desire for excellence and her desire to succeed in competitive situations. Juno could be described as having a high need for achievement.

Question 23

Entrepreneurial activity capitalizes on the self-sacrificing.

Question 24

Entrepreneurs are made and not always born.

Question 25

Jay Goltz, founder of Goltz Group, showed perseverance in the face of obstacles and was able to bounce back from failure.

Question 26

Jay Goltz found that in order to be successful, he had to sacrifice free time and family time.

Question 27

Texas Nameplate Company is the first small business to win the Malcolm Baldridge National Quality Award twice.

Question 28

Dale Crownover, the president and CEO of the Texas Nameplate Company, emphasizes to his top management team that quality is their responsibility.

Question 29

Katie Sutliff Lang, Ethics Officer with the Ethics Resource Center, stresses that by defining the conversation, both she and her colleagues have a piece of mind, and it better enables Lang to meet their needs.

Question 30

According to INC. magazine, successful entrepreneurs score higher than 82 percent of the population on their ability to express support and encouragement.

Question 31

Many entrepreneurs demonstrate specialized knowledge in a particular domain, often bringing some related experience to their new business ventures.

Question 32

Successful entrepreneurs usually spend less time planning than unsuccessful entrepreneurs due to an ability to think quickly.

Question 33

A business plan describes the basic idea that is the foundation for the start-up and outlines how that idea can be turned into reality.

Question 34

Due to technology and the Internet, proximity to suppliers is no longer an essential component of new venture business planning.

Question 35

When buying a business, prospective entrepreneurs should ask, "Will the seller become a competitor?"

Question 36

Barnes & Noble is America's largest bookseller, also owning B. Dalton and Bookstop.

Question 37

According to the text, McDonald's, Pizza Hut, and Napa Auto Parts are all franchises.

Question 38

Shane Beard, owner of a FASTSIGNS franchise, met with immediate success with his business plan, and experienced success with his first lender.

Question 39

FASTSIGNS provides state-of-the-art computer technology to create custom signs, graphics, and more.

Question 40

The entrepreneur's natural bias toward quick action tends to increase the probability of failure.

Question 41

"Paralysis by analysis" is part of the principle of affordable loss.

Question 42

Funding through venture capital is an excellent way to raise money without the high returns on investment that bankers expect.

Question 43

A venture capitalist is someone who provides equity (ownership) financing for start-up and young, rapidly-growing enterprises.

Question 44

Karen Borski is starting her own business. At present, she is working to calculate a month-by-month projection of expected expenses for the first three years of the company. In other words, Borski is developing a balance sheet.

Question 45

Generally, venture capitalists expect their investments to reap returns of 25 to 35 percent annually.

Question 46

An "angel" is a group of individuals who invest directly in firms and receives an equity stake in return.

Question 47

A business "angel" may make less stringent demands than a venture capitalist on the actions of an entrepreneur.

Question 48

Small businesses create over 50% of total American export sales.

Question 49

Over the past 20 years, the number of small firms engaging in exporting has more than tripled.

Question 50

When Henry Estate Winery expanded into China, they faced some challenges related to the lack of knowledge about red wine in China.

Question 51

The Henry Estate Winery abandoned their Chinese connections, and began selling their wines to small retail stores.

Question 52

All family-owned businesses have a certain level of conflict that arises from their unique structure.

Question 53

For most family businesses to succeed in the long run, they must decide who is responsible for what and who has authority.

Question 54

If a family member does something on the job that makes another angry, correcting the problem requires that it be brought into the open quickly.

Question 55

The effective use of a board of directors can assist a family business by providing unbiased and unflinching advice.

Question 56

Corporate entrepreneurship is optional for the long-term survival of any established firm.

Question 57

A corporate entrepreneur is someone in an organization who champions turning new ideas into profitable realities.

Question 58

Lou Dobbs, creator of CNNFN, is an example of a corporate entrepreneur.

Question 59

"Corporate Entrepreneurship" is a contradiction in terms. Entrepreneurship is seldom if ever promoted in corporations because of its potential damage to the organizational structure.

Question 60

Organizations that redirect themselves through innovation are fostering entrepreneurial activity.

Question 61

Corporate entrepreneurs are generally extremely considerate and compassionate individuals who strive for success at every opportunity.

Question 62

Successful corporate entrepreneurs usually are allowed considerable leeway in their actions.

Question 63

According to the Challenge of Managing opening feature in the Fostering Entrepreneurship chapter, _____________ was the spark that made Denise Devine, president and CEO of Nutripharm, Inc., and Devine Foods, Inc., decide to take the chance on entrepreneurship.

A) lack of money
B) motherhood
C) inheritance
D) being laid off

Question 64

Denise Devine, president and CEO of Nutripharm, Inc., and Devine Foods, Inc., initially consulted with a group of chemists and others at ________________ who worked with her ideas and began developing them into products.

A) Cornell University
B) Northwestern University
C) Harvard University
D) Norwest Laboratories

Question 65

__________ is the creation of an innovative organization for the purpose of economic gain or growth under conditions of risk or uncertainty.

A) Stakeholder
B) Financial speculator
C) Capitalism
D) Entrepreneurship

Question 66

In launching a new business, entrepreneurs typically incorporate all of the following except:

A) something new.
B) something better.
C) different location
D) an underserved or new market.

Question 67

Burton Snowboards is __________ HeadBlade because __________.

A) different from; Burton Snowboards was launched on the Internet
B) different from; HeadBlade is something new
C) similar to; both are sports related
D) similar to; the entrepreneurs are from California

Question 68

A niche market is __________.

A) a high-tech market
B) characterized by high barriers to entry
C) an underserved market
D) an area of limited opportunity

Question 69

Jake Burton Carpenter succeeded with his snowboards by __________.

A) introducing a completely new product line
B) teaming up with the most talented designers
C) observing his own kids
D) improving upon an existing design

Question 70

Which of the following groups has not experienced an increase the number of entrepreneurs in recent years?

A) women
B) entrepreneurs in Europe and Asia
C) minorities
D) All of these groups have realized increases.

Question 71

Which of the following factors has not contributed to the rise of entrepreneurship?

A) local chambers of commerce
B) favorable tax rates for local businesses
C) a soft economy that put many people out of work
D) support services that assist growth

Question 72

Organizations designed to accelerate the growth of entrepreneurial companies through an array of business support resources are referred to as business _______.

A) incubators
B) networks
C) matrices
D) clans

Question 73

How does a business incubator support the development of new businesses?

A) rents space to people wanting to start businesses
B) provides moral support
C) serves businesses by offering administrative services
D) All of the above support the development of new businesses.

Question 74

Ashlee Vanke is a wealthy businesswoman who wants to give something back to the people. She decides to form an organization that would renovate an old warehouse and subsidize the opening of small businesses. When a television news reporter publicized what she was doing, more than ten hopeful entrepreneurs applied for the subsidization. At present, more than fifteen successful businesses have received help from Vanke. Vanke's organization could be described as a (n) __________.

A) organic organization
B) network
C) business incubator
D) skunkwork

Question 75

Neda Jahansouz's new business has been offered assistance through a business incubator. At the end of two or three years, which of the following outcomes is not expected for Jahansouz's venture?

A) business failure
B) expansion within the incubator
C) sufficient growth to move out of the incubator
D) possible purchase by the incubator operators

Question 76

It has been found that _______ of family owned businesses survive to the third generation.

A) 75%
B) 35%
C) 12%
D) 5%

Question 77

Kohler Company is an example of what type of business?

A) family-owned company that has diversified
B) plumbing company that went public after 25 years
C) company that improved on the already-invented bathtub
D) family-owned company that exclusively offers plumbing products

Question 78

Today's most successful entrepreneurs were recently asked to explain why they started their own companies. What statement below ranked as the number one reason these entrepreneurs started their own business?

A) to make money
B) work for themselves and control their own lives
C) being laid off from their old job
D) not feeling rewarded in their old job

Question 79

Fundamental to all managerial competencies is the __________.

A) strategic action competency
B) teamwork competency
C) self-management competency
D) planning and administration competency

Question 80

Which of the following is not cited as a frequent motivator for successful entrepreneurs?

A) personal achievement
B) self-confidence
C) dislike of large organizations
D) balance of work and family