Deck 6: Starting Your Own Business: the Entrepreneurship Alternative

Question 1

Which of the following is not listed as a reason people generally become entrepreneurs?

A) insufficient rewards and recognition
B) dissatisfaction with the work
C) desires to escape unreasonable bosses
D) to have an opportunity to do a "greater good" for society

Answer 1

D

Question 2

Shoshana Finn saw a niche in the fashion accessories market and designed unique products for it. What kind of entrepreneur is she?

A) classic
B) social
C) franchise
D) serial

Answer 2

A

Question 3

Which of the following is not one of the reasons people become entrepreneurs?

A) the desire for job security
B) the desire for financial success
C) the desire to work fewer hours
D) the desire to be one's own boss

Answer 3

C

Question 4

Which of the following creates opportunities for new entrepreneurs in the Canada?

A) aging of the population
B) growth of ethnic groups
C) growth of two-income families
D) all of these

Question 5

A lifestyle entrepreneur can expect

A) to work fewer hours.
B) to work with less intensity.
C) to gain flexibility with work hours.
D) to vacation often.

Question 6

Which of the following is not a factor that supports and expands opportunities for entrepreneurs?

A) globalization
B) education
C) labour rates
D) information technology

Question 7

Which country leads in the number of adults engaged in entrepreneurial activity?

A) Canada
B) Thailand
C) Belgium
D) China

Question 8

What are the two most important considerations in choosing an idea for a business?

A) Finding something you love to do and are good at doing; determining if your idea satisfies a need in the marketplace.
B) Deciding if you have the resources to produce the good or service; estimating how much money you will be able to make.
C) Securing financing; hiring the right people.
D) Developing a business plan; leaving your full-time job so you have the time to devote to the new venture.

Question 9

How has technology affected small entrepreneurs?

A) Due to the high cost of technology, entrepreneurs cannot compete effectively with large corporations.
B) New companies avoid the information technology industry because it is already saturated.
C) Technology affects Internet-based companies only.
D) Technology has levelled the playing field to the point that small companies can compete with big companies like IBM.

Question 10

Which category of entrepreneurs would be most likely to start one business, run it, and then start and run additional businesses in succession?

A) classic entrepreneur
B) serial entrepreneur
C) intrapreneur
D) change agent

Question 11

Which of the following is a specific goal of people who become entrepreneurs?

A) more leisure time
B) to retire early
C) to create a legacy
D) becoming rich

Question 12

What kind of entrepreneur starts many businesses in succession?

A) classic entrepreneur
B) social entrepreneur
C) serial entrepreneur
D) intrapreneur

Question 13

What makes an entrepreneur different from a small business owner?

A) motivation
B) innovation
C) time
D) desire to make the business grow

Question 14

Which of the following is not a benefit of working for a Fortune 500 company?

A) more leisure time
B) career advancement opportunities
C) job security
D) benefits

Question 15

Which is the age group most likely to start a new business?

A) college students (18 - 22)
B) retired people (65+)
C) adults aged 25 - 49
D) adults aged 55 - 64

Question 16

What is the overriding responsibility of an entrepreneur?

A) to manage people
B) to use the company resources to accomplish goals
C) to make as much money as possible
D) to be ethical and socially responsible

Question 17

How are entrepreneurs different from managers?

A) Entrepreneurs combine their ideas with resources to create a business that fills a market need; managers direct the effort of others to achieve an organization's goals.
B) Managers are more likely than entrepreneurs to use the resources of the organization to accomplish personal goals.
C) Entrepreneurs are more risk averse than managers.
D) Managers typically are more independent than entrepreneurs.

Question 18

A _________ is a person who starts a business to reduce work hours and create a more relaxed life.

A) social entrepreneur
B) serial entrepreneur
C) classic entrepreneur
D) lifestyle entrepreneur

Question 19

Students who graduate from entrepreneurship programs:

A) are no more likely to be self-employed than those who graduate with management degrees.
B) are twice as likely to start their own business than those who graduate with management degrees.
C) are three times more likely to be self-employed than those who graduate with management degrees.
D) start their own businesses about 90 percent of the time.

Question 20

What kind of entrepreneur focuses on societal problems and their solutions?

A) crusading
B) classic
C) white knight
D) social

Question 21

Which form of financing needs to be repaid?

A) equity financing
B) debt financing
C) start-up capital
D) venture capital

Question 22

There has been a huge increase in the number of people who run home-based businesses. They are referred to as which of the following?

A) minipreneur
B) intrapreneur
C) micropreneurs
D) homepreneurs

Question 23

How is tolerance for ambiguity different from a love of risk taking?

A) Ambiguity can be managed by staying close to customers and making adjustments as needed.
B) Risk taking is usually successful but ambiguity cannot be controlled.
C) A tolerance of ambiguity means that you will try again when others would give up.
D) Risk taking is a positive trait; ambiguity is negative.

Question 24

Sam knows that economic conditions are out of his control. However, he still believes that his efforts can lead to success. He exhibits the entrepreneurial characteristic of the need to:

A) achieve.
B) be optimistic
C) have vision.
D) have a high energy level.

Question 25

The initial funding needed to launch a new venture comes from:

A) intrapreneurship.
B) seed programs.
C) pacing programs.
D) skunkworks projects.

Question 26

With rapidly changing markets, which of the following is a key component of a successful start-up?

A) flexibility
B) continuity
C) reliability
D) dependability

Question 27

What percent of large firms now allocate funds toward intrapreneurship?

A) 10%
B) 30%
C) 55%
D) 65%

Question 28

Specific geographic areas set aside for economic renewal are referred to as which of the following?

A) venture capitalist zone
B) entrepreneurship districts
C) urban reserve
D) enterprise zones

Question 29

Bootlegging is a 3M effort to promote intrapreneurship by allowing

A) employees to borrow time from other projects to develop new products.
B) employees to take a sabbatical to work on new products.
C) employees to take frequent vacations to inspire new product ideas.
D) employees to copy competitors' product ideas and claim credit.

Question 30

Bill Gates's and Paul Allen's _________helped Microsoft become the world's largest marketer of computer software.

A) vision
B) need to achieve
C) tolerance for failure
D) creativity

Question 31

When we look at the top entrepreneurs in the world, which of the following is a common trait?

A) creativity
B) dependability
C) reliability
D) flexibility

Question 32

Which of the following is the least likely source of financing for new ventures?

A) venture capitalists
B) debt capital
C) equity capital
D) angel investors

Question 33

Which of these is an advantage of buying an existing business?

A) Getting financing is easier.
B) Employees are already in place.
C) Permits and licenses have been obtained.
D) All of the above.

Question 34

Which of the following is least important when buying an existing business?

A) Whether the business is currently profitable.
B) How stable the customer base is.
C) Whether you know the current owners personally.
D) What type of financing can be obtained to fund the purchase.

Question 35

What is a pacing program?

A) A project initiated by an employee who then recruits resources within the company.
B) Borrowing a certain percentage of time from other assignments to explore new product ideas of the employee's choosing.
C) Working off-site while still being employed by a corporation.
D) A company initiated project that focuses on a few products and technologies that might lead to rapid marketplace winners.

Question 36

India has experienced an increase in female entrepreneurs.

Question 37

Entrepreneurs spend at least ____ hours a week on their new business.

A) 40
B) 70
C) 85
D) 25

Question 38

The entrepreneurial personality includes which of the following most outstanding characteristic?

A) spirit
B) competitiveness
C) kindness
D) need to achieve

Question 39

__________ involves entrepreneurs exchanging a share of ownership in their business for money supplied by one or more investors.

A) Debt financing
B) Venture financing
C) Equity financing
D) Team financing

Question 40

Wealthy individuals who invest directly in a new venture in exchange for an equity stake are referred to as which of the following?

A) venture capitalists
B) debt capital
C) equity capital
D) angel investors