Question 1

Jasper is so convinced he will succeed he has mortgaged his home, maxed out his credit cards, and borrowed from his retirement savings to finance his business. Jasper is:

Accepted Answer

Jasper's willingness to mortgage his home, max out his credit cards, and borrow from his retirement savings shows that he is high in risk tolerance. He is willing to take big financial risks in order to finance his business and is confident that it will succeed.

Question 2

An entrepreneurial legacy is limited to the tangible assets of the business.

Accepted Answer

An entrepreneurial legacy also includes intangible assets such as reputation, relationships, and knowledge.

Question 3

Which of the following best fits the definition of a small business?

Accepted Answer

A small business is typically defined as having fewer than 500 employees and being independently owned and operated. Option B, a hardware store franchise with 20 employees, fits that definition best. Option A has 75 investors, which could indicate a larger business with outside investment, while option C is a fast food franchise with multiple locations across three states, which may also indicate a larger business. Option D, a campground with gross revenues of $4 million per year, does not provide information about the number of employees or ownership structure, but the high revenue figure suggests it may not be a small business.

Question 4

Adam has contracted with about a third of the dozens of artisans in his town in the mountains of South Carolina. His reputation has grown; he now believes the sky's the limit for this web page design and maintenance business. What kind of small business does Adam have?

Accepted Answer

The statement "he now believes the sky's the limit for this web page design and maintenance business" suggests that Adam sees high potential in his business, indicating that he has a high-potential venture.

Question 5

Francesca convinced her aunt to invest in her day spa in exchange for a percentage of the profits. Francesca is:

Accepted Answer

The answer of Francesca convinced her aunt to invest in...

Question 6

Good customer service can be provided by a business of any size but small entrepreneurial companies do it better.

Accepted Answer

Small entrepreneurial companies often have a strong focus on customer service as they rely heavily on building relationships with their customers to grow and succeed. They also often have more flexibility to address individual customer needs and preferences. However, larger businesses can also provide excellent customer service if they prioritize it and allocate resources towards it.

Question 7

Using the criteria in the text to define a small business, Table Occasions will not be considered a small busoness one the company:

Accepted Answer

A business operating in numerous states typically indicates a larger scale of operations, which may not align with the criteria for a small business.

Question 8

Bailey works as a self-employed golf pro at the local country club, allowing him to spend more time with his young family. He'll never earn much but he and his family are happy. Which type of small business does Bailey have?

Accepted Answer

Bailey's business is a lifestyle business, as it is structured to prioritize his desired lifestyle over maximizing profits or rapid growth.

Question 9

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 10

By the time Jobs and Wozniak had moved out of the garage and into their first production facility, the business would have been labeled as a(n):

Accepted Answer

The answer of By the time Jobs and Wozniak had...

Question 11

Henry is well respected by his few employees. He models the highest integrity and encourages tyeamwork. Henry is high in:

Accepted Answer

Henry is displaying characteristics of a good leader - modeling integrity and encouraging teamwork - which is why he is well respected by his employees.

Question 12

Kevin developed a clever marketing campaign that increased his sales by 48%. Kevin is high in:

Accepted Answer

Kevin's ability to develop a clever marketing campaign demonstrates his creativity, which was instrumental in increasing his sales.

Question 13

Eduardo took out a second mortgage on his home to finance his new business. He makes all the decisions and keeps all the profits. Eduardo is:

Accepted Answer

Eduardo took a risk by taking out a second mortgage on his home to finance his new business, thus he is an entrepreneur. He is not bootstrapping since he is not relying solely on his own resources and he is not a partner since he is the sole decision-maker and profit-keeper. He may also be considered an administrator, but the fact that he took a significant risk and is the sole proprietor puts him more in the category of an entrepreneur.

Question 14

Small businesses that have great prospects for growth are called:

Accepted Answer

The term commonly used for small businesses with great prospects for growth is "gazelles." The other options, such as gorillas, antelopes, and jaguars, are not commonly used in this context.

Question 15

Devon believes now is the time to launch his welding business since the only competitor has just announced his retirement. Devon has identified:

Accepted Answer

Devon has identified an entrepreneurial opportunity since he wants to venture into a new business when an opening in the market has emerged.

Question 16

Isabella overheard her customers discussing their desire for more baked treats suitable for diabetics. Immediately she added sugar-free items to her inventory. Isabella has strong:

Accepted Answer

Isabella's quick response to her customers' needs shows that she has a strong opportunity obsession, or the ability to recognize and act on opportunities for her business. She saw a potential market for sugar-free baked goods and decided to add them to her inventory to meet the demand.

Question 17

A prospective entrepreneur is evaluating the suitability of his own characteristics for an entrepreneurial career. He realizes that he should be prepared to assume:

Accepted Answer

Entrepreneurship inherently involves some level of risk-taking, whether it be financial or personal. However, it is important for the entrepreneur to assess and manage risks responsibly and strategically, rather than taking on risks similar to those of a gambler. It is not advisable for the entrepreneur to plan to operate conservatively with no risks, as this can limit opportunities for growth and innovation. Entrepreneurship requires a willingness to take on some level of moderate risks, while also finding ways to mitigate and manage those risks.

Question 18

Compared to large corporations, small businesses

Accepted Answer

The answer of Compared to large corporations, small businesses
...

Question 19

Carmen operates a franchise tanning salon. The negative publicity about the effects of tanning has diminished her ability to grow the business. Carmen has a(n):

Accepted Answer

The answer of Carmen operates a franchise tanning salon. The...

Question 20

Geraldo often would rather go fishing than work his business. Geraldo lacks:

Accepted Answer

Geraldo's choice to go fishing instead of working his business shows a lack of commitment to his work. This could be detrimental to the success of his business in the long run.

Quiz 1: The Entrepreneurial Life