Question 1

Wendy, a single parent of two boys, has started a small bakery in her house. She cannot work away from home because her children are very young. Which of the following kinds of entrepreneurship is this an example of?

Accepted Answer

This is an example of necessity-based entrepreneurship because Wendy started the bakery out of necessity to provide for her family while also taking care of her young children.

Question 2

Colin and Becky started a garbage disposal and recycling program called "No More Trash" in their city, which has seen enormous growth in the last few years. The public waste management system has proved to be a failure as the authorities are overwhelmed by the influx of people from all parts of the country. Which of the following kinds of entrepreneurship is "No More Trash" an example of?

Accepted Answer

"No More Trash" is an example of social entrepreneurship, as it is a venture that aims to address a social problem (garbage disposal and recycling) in a sustainable, innovative, and impactful way. The focus is on creating social value rather than just financial profit.

Question 3

New small business start-ups often fail because of

Accepted Answer

Lack of business expertise is a common reason why small business start-ups fail. It is important for entrepreneurs to have a solid understanding of business operations, financial management, marketing, and industry-specific knowledge in order to successfully run a business. Strict financial controls, high ethical standards, slow growth, and strategic leadership are all important factors for success, but lack of business expertise is often the most critical factor.

Question 4

Nailah had to quit her job to run her mother's bookstore when her mother passed away. The store was earning good profits and so she decided to open a new branch in another state. What kind of a business does Nailah own?

Accepted Answer

Nailah owns a family business which was inherited from her mother and she had to quit her job to run the bookstore after her mother passed away.

Question 5

___ entrepreneurship is one way for people, including women and minorities who have hit the "glass ceiling" in their careers or are otherwise cut off from other employment choices, to strike out on their own and gain economic independence.

Accepted Answer

Necessity-based entrepreneurship typically refers to individuals who start a business out of the necessity to support themselves or their families, often due to a lack of other employment opportunities. It is a common path for those who have hit barriers such as the glass ceiling in their careers or face other systemic barriers.

Question 6

Which of the following is not an accurate statement about the nature of family businesses?

Accepted Answer

The answer of Which of the following is not an...

Question 7

Barbara, a florist, realized the need for easily accessible organic compost in her neighbourhood. Her neighbourhood consists mainly of senior citizens who are unable to procure their own gardening supplies. She quickly established "We Compost," a non-profit organization that delivers compost to each household in her neighbourhood. This is an example of ___.

Accepted Answer

This is an example of social entrepreneurship because Barbara created a non-profit organization to address a social need in her community. She is not motivated by profit, but rather by the desire to help her neighbours and promote sustainable practices.

Question 8

All the following statements about family businesses are accurate except

Accepted Answer

Less than 50% of family businesses survive to the second generation, making this statement inaccurate.

Question 9

A(n) ___ necessarily has 500 or fewer employees, is independently owned and operated, and does not dominate its industry.

Accepted Answer

According to the Small Business Administration (SBA) in the United States, a small business is defined as having fewer than 500 employees, being independently owned and operated, and not dominating its industry. Therefore, option A is the correct answer. The other options do not necessarily meet all of these criteria.

Question 10

A ___ is a business in which the owner of a business sells to another the right to operate the same business in another location.

Accepted Answer

A franchise is a business model in which the owner of a business sells the right to use their brand and operating methods to another party in exchange for fees and royalties. The new owner, known as a franchisee, is granted the right to open and operate a business using the franchisor's brand and business model, typically in a specific location. The franchisee must follow the franchisor's rules and guidelines for operating the business.

Question 11

Yvette has recently lost her job and has not been able to find employment elsewhere. She must support her children, and take care of her mortgage. She realizes a niche for chemical-free house cleaning services. Eventually she opens her own house cleaning service. This is an example of ___.

Accepted Answer

Yvette's situation of losing her job and needing to support her family led her to start a new business out of necessity. This is an example of necessity-based entrepreneurship.

Question 12

A(n) ___ is a new and temporary venture that is trying to discover a profitable business model for future success.

Accepted Answer

A start-up is a new and temporary venture that is attempting to develop a profitable business model for future growth. Family business is one that is owned and operated by members of the same family. Intrapreneurship is a system where employees work within a company to develop new ideas and projects without bearing the risk of starting their own business. Business incubators are a supportive environment that provides resources and advice for startup companies to help them grow. Acquisition is the process of one company purchasing another.

Question 13

Lean start-ups

Accepted Answer

Lean start-ups aim to keep costs and operations as simple as possible, avoiding unnecessary expenses and complexities. This helps in minimizing risks and making quicker decisions.

Question 14

Arthur, a young college graduate, started a store for traditional musical instruments. He liked working independently and without being directed by others. He believed that his destiny is under his own control. Which of the following personality traits of an entrepreneur is exhibited by Arthur?

Accepted Answer

Arthur exhibits internal locus of control, which means he believes that he is in control of his own destiny and has the power to influence his environment.

Question 15

Social entrepreneurs

Accepted Answer

Social entrepreneurs are individuals who create and manage enterprises with a primary focus on making a positive difference in society. They may take risks to establish and grow these businesses, but their ultimate goal is to improve the lives of underserved populations or address other social issues in sustainable ways. This is the definition that best matches option A.

Question 16

A business model is a

Accepted Answer

A business model is a plan for making a profit by generating revenues that are greater than costs. It outlines how a company plans to generate revenue, how it will operate, and how it will make a profit.

Question 17

The family business feud occurs when members of the controlling family get into disagreements about ___.

Accepted Answer

The family business feud can happen due to any combination of reasons listed in the choices, including work responsibilities, business strategy, operating approaches, and finances.

Question 18

Which of the following is true about a franchise?

Accepted Answer

The franchise parent typically receives a flat fee or a percentage of the revenue from the franchisee as part of the franchise agreement. This fee compensates the franchisor for the use of its brand, business model, and support services.

Question 19

According to the text, a family business is an ideal situation when everything goes right. Which of the following is not one of the aspects of everything going right with a family business?

Accepted Answer

The text does not mention anything about everyone enjoying equal shares in the financial success of the business as a requirement for everything going right with a family business.

Question 20

Which of the following is not one of the defining characteristics of small businesses?

Accepted Answer

The annual profit of less than $100,000 is not a defining characteristic of small businesses. Small businesses can have varying levels of profitability, and it is not a factor that determines the size of a business. The other options (A, C, D, and E) are all commonly cited as defining characteristics of small businesses.

Quiz 6: Entrepreneurship and New Ventures

Wendy, a single parent of two boys, has started a small bakery in her house. She cannot work away from home because her children are very young. Which of the following kinds of entrepreneurship is this an example of?

New small business start-ups often fail because of

Nailah had to quit her job to run her mother's bookstore when her mother passed away. The store was earning good profits and so she decided to open a new branch in another state. What kind of a business does Nailah own?

___ entrepreneurship is one way for people, including women and minorities who have hit the "glass ceiling" in their careers or are otherwise cut off from other employment choices, to strike out on their own and gain economic independence.

Which of the following is not an accurate statement about the nature of family businesses?

All the following statements about family businesses are accurate except

A(n) ___ necessarily has 500 or fewer employees, is independently owned and operated, and does not dominate its industry.