Question 1

Two characteristics common to entrepreneurs are creativity and an eye for opportunity.

Accepted Answer

A) True 
 B)False

Question 2

Companies started by women tend to be smaller than those started by men.

Accepted Answer

A) True 
 B)False

Question 3

Family-owned businesses have a significant advantage over other forms of small business,in that they have a very high survival rate when transitioning between generations of leadership.

Accepted Answer

A) True 
 B)False

Question 4

A major threat that family businesses face is:

Accepted Answer

A) having kids. 
B) divorce. 
C) management succession. 
D) None of the above 
A) having kids. 
B) divorce. 
C) management succession. 
D) None of the above

Question 5

A key characteristic of a successful entrepreneur is:

Accepted Answer

A) never having failed. 
B) expert technical knowledge of the product. 
C) learning to fail intelligently. 
D) earning at least a 25% return for investors. 
A) never having failed. 
B) expert technical knowledge of the product. 
C) learning to fail intelligently. 
D) earning at least a 25% return for investors.

Question 6

People who once saw launching a business risky now see it as an ideal way to create their own job security.

Accepted Answer

A) True 
 B)False

Question 7

Primary cause of business failure is:

Accepted Answer

A) improper managerial attitude. 
B) poor financial controls. 
C) incompetent management. 
D) location. 
A) improper managerial attitude. 
B) poor financial controls. 
C) incompetent management. 
D) location.

Question 8

The transformation of ordinary homes into ________ is driving the growth of home-based businesses.

Accepted Answer

A) "outsourcing hubs" 
B) "electronic cottages" 
C) "personal work zones" 
D) "serenity spaces" 
A) "outsourcing hubs" 
B) "electronic cottages" 
C) "personal work zones" 
D) "serenity spaces"

Question 9

Surveys show that owners of small businesses believe that:

Accepted Answer

A) they work harder on their own than if they worked for someone else. 
B) they earn less than if they worked for someone else. 
C) they are less satisfied than if they worked for someone else. 
D) venture capital is relatively easy to raise. 
A) they work harder on their own than if they worked for someone else. 
B) they earn less than if they worked for someone else. 
C) they are less satisfied than if they worked for someone else. 
D) venture capital is relatively easy to raise.

Question 10

Explain at least five of the factors that are feeding the entrepreneurial boom in the United States and abroad.

Accepted Answer

Several factors are driving the boom in

Question 11

The nation is rapidly moving from:

Accepted Answer

A) industrial to capitalism. 
B) capitalism to industrial. 
C) industrial to knowledge-based. 
D) None of the above 
A) industrial to capitalism. 
B) capitalism to industrial. 
C) industrial to knowledge-based. 
D) None of the above

Question 12

Management incompetence includes all but:

Accepted Answer

A) the owner lacks the leadership ability necessary to operate it successfully. 
B) lack of capacity to make the business work. 
C) insufficient capital. 
D) inexperience. 
A) the owner lacks the leadership ability necessary to operate it successfully. 
B) lack of capacity to make the business work. 
C) insufficient capital. 
D) inexperience.

Question 13

Identify and explain the advantages and the disadvantages of small business ownership.

Accepted Answer

Driven by these personal characteristics

Question 14

One hallmark of true entrepreneurs is their ability to adapt to the changing demands of their customers and businesses.

Accepted Answer

A) True 
 B)False

Question 15

Tom was a financial consultant who liked to work with his hands,especially in making furniture.He quit his rat race financial job to start a small custom furniture business.After struggling for several years,he closed it and went back to financial services.Tom discovered that there was a big difference between making furniture for himself and running a customer furniture manufacturing business.Tom's business failed because of:

Accepted Answer

A) uncontrolled growth. 
B) poor financial control. 
C) his lack of experience. 
D) an inability to access start-up capital. 
A) uncontrolled growth. 
B) poor financial control. 
C) his lack of experience. 
D) an inability to access start-up capital.

Question 16

It is common to experience a lower quality of life during a business start-up than after the business is established.

Accepted Answer

A) True 
 B)False

Question 17

"Copreneurs" are entrepreneurial couples who work together as co-owners of their business.

Accepted Answer

A) True 
 B)False

Question 18

Bill and Sally have been tired of the corporate rat race.They leave their investment banking positions in New York,move to Colorado and start a business raising Mohair sheep.This couple is an example of the entrepreneurial phenomenon of:

Accepted Answer

A) corporate dropouts. 
B) corporate downsizing. 
C) corporate raiders. 
D) corporate castoffs. 
A) corporate dropouts. 
B) corporate downsizing. 
C) corporate raiders. 
D) corporate castoffs.

Question 19

Small businesses thrive in every industry,but the majority of them are in:

Accepted Answer

A) the general construction industry. 
B) retail businesses. 
C) mining and manufacturing. 
D) service industries. 
A) the general construction industry. 
B) retail businesses. 
C) mining and manufacturing. 
D) service industries.

Question 20

Entrepreneurial success requires little more than a good idea for a product or service.

Accepted Answer

A) True 
 B)False

Exam 1: Entrepreneurs: the Driving Force Behind Small Business

Two characteristics common to entrepreneurs are creativity and an eye for opportunity.

Companies started by women tend to be smaller than those started by men.

Family-owned businesses have a significant advantage over other forms of small business,in that they have a very high survival rate when transitioning between generations of leadership.

A major threat that family businesses face is:

A key characteristic of a successful entrepreneur is:

People who once saw launching a business risky now see it as an ideal way to create their own job security.

Primary cause of business failure is:

The transformation of ordinary homes into ________ is driving the growth of home-based businesses.

Surveys show that owners of small businesses believe that:

Explain at least five of the factors that are feeding the entrepreneurial boom in the United States and abroad.

The nation is rapidly moving from:

Management incompetence includes all but:

Identify and explain the advantages and the disadvantages of small business ownership.

One hallmark of true entrepreneurs is their ability to adapt to the changing demands of their customers and businesses.

It is common to experience a lower quality of life during a business start-up than after the business is established.

"Copreneurs" are entrepreneurial couples who work together as co-owners of their business.

Bill and Sally have been tired of the corporate rat race.They leave their investment banking positions in New York,move to Colorado and start a business raising Mohair sheep.This couple is an example of the entrepreneurial phenomenon of:

Small businesses thrive in every industry,but the majority of them are in:

Entrepreneurial success requires little more than a good idea for a product or service.

Ethics and Social Responsibility: Doing the Right Thing

Creativity and Innovation: Keys to Entrepreneurial Success

Strategic Management and the Entrepreneur

Choosing a Form of Ownership

Franchising and the Entrepreneur

Buying an Existing Business

New Business Planning Process: Feasibility Analysis,business Modeling,

Building a Bootstrap Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

Global Marketing Strategies

E-Commerce and Entrepreneurship

Creating a Solid Financial Plan

Managing Cash Flow

Sources of Equity Financing

Sources of Debt Financing

Location,layout,and Physical Facilities

Supply Chain Management

Managing Inventory

Staffing and Leading a Growing Company

Management Succession and Risk Management Strategies in the Family Business

The Legal Environment: Business Law and Government Regulation

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