Question 1

The vast majority of an entrepreneur's startup financing comes from _____.

Accepted Answer

According to research, the majority of startup financing comes from personal resources such as savings, credit card debt, and home equity loans. Venture capital and angel investors typically provide funding to only a small percentage of startups, and bank loans may be difficult to obtain for a new business without a proven track record.

Question 2

_____ can be an especially handy­though highly risky­financing resource.

Accepted Answer

Personal credit cards can be a quick and easy financing resource to access, but they come with high interest rates and the risk of accumulating debt. However, they can be useful for small, short-term expenses or emergencies.

Question 3

Greg has developed a cell phone battery that runs efficiently for up to three hours on a single potato. His friends have pointed out that it will be difficult to get mobile manufacturers to adopt his new technology and that it could take years to make it practical for people to rely on the new energy source in the long run. However, Greg is convinced he can make the U.S. economy energy independent, thus changing the world. He plans to start a new business called EnerMobile Inc. to promote his new battery. In this scenario, Greg is said to be demonstrating _____.

Accepted Answer

Greg is demonstrating vision, as he has a long-term goal of making the U.S. economy energy independent and is willing to start a new business to promote his new battery technology towards that goal.

Question 4

Marion has ventured on his own with an innovative idea for cleanly disposing of household garbage. He is sure that his idea will succeed and is completely aware of the risks involved. However, Marion tends to put in only six hours a day into building his business; other days he puts in no time. Which of the following entrepreneurial characteristics does Marion NOT possess?

Accepted Answer

Marion lacks the characteristic of energy, as he only puts in six hours a day into building his business and other days he puts in no time. He may possess confidence, tolerance of uncertainty, and vision, but not energy.

Question 5

Mary Kate wants to start a business. However, she believes that her ill fate might reduce her chances of success. Which of the following traits is Mary Kate most likely to possess?

Accepted Answer

Mary Kate's belief that her success is not entirely within her control suggests that she has an external locus of control. This means that she is more likely to attribute outcomes to external factors such as luck or fate, rather than her own actions and abilities. This can negatively impact her ability to take risks and make decisions that are necessary for starting a business.

Question 6

Entrepreneurs with a strong internal locus of control tend to:

Accepted Answer

Entrepreneurs with a strong internal locus of control are more likely to believe that their success or failure is largely due to their own actions, rather than external factors such as luck or circumstances. They tend to take personal responsibility for their outcomes and are therefore more likely to learn from their mistakes and strive for success.

Question 7

When things go poorly, people with an internal locus of control feel that:

Accepted Answer

People with an internal locus of control believe that they are responsible for their own actions and the outcomes that result from them. Thus, when things go poorly, they are more likely to attribute the failure to something they can change or improve upon, such as their own behavior or effort, rather than external factors like fate or other people's actions.

Question 8

Small business start­ups are likely to find that getting commercial loans is:

Accepted Answer

Small business start-ups are not likely to have an established record of successful performance, which makes it difficult for commercial lenders to risk giving them loans. As a result, obtaining commercial loans is usually hard to do for small business start-ups.

Question 9

Which of the following scenarios best illustrates an entrepreneur?

Accepted Answer

This scenario illustrates an entrepreneur because Jackson suffered a setback but still had the drive and determination to start a new enterprise. He demonstrated resilience and a willingness to take risks, which are key qualities of an entrepreneur.

Question 10

Tayron is in need of financing for his new business venture. He feels the best way to do this is to tap his personal financial resources. Which of the following would be a source of personal finance for Tayron?

Accepted Answer

Tayron's rich uncle, Bill, would be considered a source of personal finance as it involves using personal connections and resources.

Question 11

Which of the following is NOT a characteristic of successful entrepreneurs?

Accepted Answer

Risk aversion is not a characteristic of successful entrepreneurs. In fact, successful entrepreneurs are willing to take risks and embrace uncertainty in order to achieve their goals.

Question 12

Who among the following individuals does NOT display traits characteristic of entrepreneurs?

Accepted Answer

The trait of valuing a stable income and taking no chances is not characteristic of entrepreneurs. The other choices display characteristics commonly associated with successful entrepreneurs.

Question 13

When entrepreneurs fail, they tend to:

Accepted Answer

Successful entrepreneurs understand that failure is a necessary part of the learning process. They view failure as an opportunity to learn from mistakes and make better decisions in the future. This mindset helps them come back stronger and more resilient, often leading to eventual success.

Question 14

Entrepreneurs tend to be tolerant of:

Accepted Answer

Entrepreneurs deal with high levels of uncertainty on a regular basis and view it as an opportunity for growth and success. They often have a high tolerance for risk and are willing to take chances to achieve their goals. Scarcity, incompetence in others, and delays are not necessarily traits that entrepreneurs are tolerant of or interested in.

Question 15

Which of the following is a characteristic of entrepreneurs?

Accepted Answer

Confidence is a well-known trait of entrepreneurs. They have a belief in themselves, their abilities, and their vision for their business.

Question 16

Harry's business venture recently experienced a massive failure. He is of the opinion that the business went down because of new competitors and a bank officer rejecting his loan. Harry has a high:

Accepted Answer

Harry's belief that the failure of his business was due to external factors such as competitors and a bank officer suggests a belief in external locus of control, meaning he attributes the outcomes of his business to factors outside of his control.

Question 17

Cain has decided to start his own business that develops alternative energy sources. To finance it, he mortgages his house. In this case, which of the following entrepreneurial characteristics does Cain display?

Accepted Answer

Cain is displaying tolerance of uncertainty by mortgaging his house to finance his business. He is taking a risk by investing his own personal assets into the business, which shows a willingness to tolerate a degree of uncertainty and potential financial loss.

Question 18

Entrepreneurs must understand that no conventional lender, whether private or public, will:

Accepted Answer

Conventional lenders typically do not provide all the funding needed for a startup due to the high risk involved. They may require the entrepreneur to have some equity or other sources of funding.

Question 19

Lois has considered the opinions of many consultants, friends, and family members about her new massage parlor business idea. Despite overwhelming negativity, Lois is certain of her abilities and knowledge on account of her many years of experience in this field. In this case, Lois displays the entrepreneurial characteristic of _____.

Accepted Answer

Lois displays the entrepreneurial characteristic of confidence because despite the negative feedback, she is certain about her abilities and knowledge on account of her many years of experience in the field.

Question 20

People with a(n) _____ have a strong sense of personal responsibility for what happens in their lives.

Accepted Answer

People with an internal locus of control believe that they are in control of their lives and the outcomes of their actions. They take responsibility for their successes and failures, and believe that their own efforts and abilities are the primary factors in determining their fate.

Quiz 7: Small Business Entrepreneurship: Economic Rocket Fuel

The vast majority of an entrepreneur's startup financing comes from _____.

_____ can be an especially handythough highly riskyfinancing resource.

Mary Kate wants to start a business. However, she believes that her ill fate might reduce her chances of success. Which of the following traits is Mary Kate most likely to possess?

Entrepreneurs with a strong internal locus of control tend to:

When things go poorly, people with an internal locus of control feel that:

Small business startups are likely to find that getting commercial loans is:

Which of the following scenarios best illustrates an entrepreneur?

Tayron is in need of financing for his new business venture. He feels the best way to do this is to tap his personal financial resources. Which of the following would be a source of personal finance for Tayron?

Which of the following is NOT a characteristic of successful entrepreneurs?

Who among the following individuals does NOT display traits characteristic of entrepreneurs?

When entrepreneurs fail, they tend to:

Entrepreneurs tend to be tolerant of:

Which of the following is a characteristic of entrepreneurs?

Harry's business venture recently experienced a massive failure. He is of the opinion that the business went down because of new competitors and a bank officer rejecting his loan. Harry has a high:

Cain has decided to start his own business that develops alternative energy sources. To finance it, he mortgages his house. In this case, which of the following entrepreneurial characteristics does Cain display?

Entrepreneurs must understand that no conventional lender, whether private or public, will:

People with a(n) _____ have a strong sense of personal responsibility for what happens in their lives.

Quiz 7: Small Business Entrepreneurship: Economic Rocket Fuel

The vast majority of an entrepreneur's startup financing comes from _____.

_____ can be an especially handy­though highly risky­financing resource.

Mary Kate wants to start a business. However, she believes that her ill fate might reduce her chances of success. Which of the following traits is Mary Kate most likely to possess?

Entrepreneurs with a strong internal locus of control tend to:

When things go poorly, people with an internal locus of control feel that:

Small business start­ups are likely to find that getting commercial loans is:

Which of the following scenarios best illustrates an entrepreneur?

Tayron is in need of financing for his new business venture. He feels the best way to do this is to tap his personal financial resources. Which of the following would be a source of personal finance for Tayron?

Which of the following is NOT a characteristic of successful entrepreneurs?

Who among the following individuals does NOT display traits characteristic of entrepreneurs?

When entrepreneurs fail, they tend to:

Entrepreneurs tend to be tolerant of:

Which of the following is a characteristic of entrepreneurs?

Harry's business venture recently experienced a massive failure. He is of the opinion that the business went down because of new competitors and a bank officer rejecting his loan. Harry has a high:

Cain has decided to start his own business that develops alternative energy sources. To finance it, he mortgages his house. In this case, which of the following entrepreneurial characteristics does Cain display?

Entrepreneurs must understand that no conventional lender, whether private or public, will:

People with a(n) _____ have a strong sense of personal responsibility for what happens in their lives.

_____ can be an especially handythough highly riskyfinancing resource.

Small business startups are likely to find that getting commercial loans is: