Question 1

Entrepreneurs are more wild risk takers than calculated risk takers.

Accepted Answer

A) True 
 B)False

Question 2

In start-ups,it is often safest to be a "me-too" business,follow the leaders in the market until sufficient cash flow develops to permit R & D into new and innovative products.

Accepted Answer

A) True 
 B)False

Question 3

Entrepreneurial success requires both persistence and ________.

Accepted Answer

A) education 
B) connections 
C) resilience 
D) reluctance 
A) education 
B) connections 
C) resilience 
D) reluctance

Question 4

The trend in corporate downsizing and the resulting trust gap have spawned both the "corporate castoff" and the "corporate dropout."

Accepted Answer

A) True 
 B)False

Question 5

Despite their popularity,family-owned businesses are actually a small portion of the economy and contribute less than 25% of the GNP to the economy of the United States.

Accepted Answer

A) True 
 B)False

Question 6

Most of today's immigrant entrepreneurs come into the U.S.with:

Accepted Answer

A) significant educational and financial resources. 
B) few skills,little education,and no financial resources. 
C) few assets but lots of dedication and desire. 
D) little education but significant financial backing from their families in their home countries. 
A) significant educational and financial resources. 
B) few skills,little education,and no financial resources. 
C) few assets but lots of dedication and desire. 
D) little education but significant financial backing from their families in their home countries.

Question 7

Entrepreneurs usually experience greater income stability running their own businesses than they did in their corporate careers.

Accepted Answer

A) True 
 B)False

Question 8

Joanne is thinking about running her own business.What risks does she face?

Accepted Answer

A) Getting stuck in a job she hates 
B) Having to deal with more government regulation than if she were a manager in a larger company 
C) Having less status in society,as most people do not respect small business owners 
D) Losing her entire invested capital 
A) Getting stuck in a job she hates 
B) Having to deal with more government regulation than if she were a manager in a larger company 
C) Having less status in society,as most people do not respect small business owners 
D) Losing her entire invested capital

Question 9

Most successful entrepreneurs accept failure as part of what they do,and they use it to learn for the "next time."

Accepted Answer

A) True 
 B)False

Question 10

Studies indicate that the opportunity to make a difference is a significant benefit in the eyes of most entrepreneurs.

Accepted Answer

A) True 
 B)False

Question 11

Mary and Ted are discussing starting a new business and are asking themselves a series of questions like;"What is the worst that could happen if we fail?" "How likely is that to happen?" They are assessing which potential drawback of small business ownership?

Accepted Answer

A) The long hours and hard work involved 
B) The risk of losing their entire investment 
C) The lower quality of life they'll experience 
D) The uncertainty of their income 
A) The long hours and hard work involved 
B) The risk of losing their entire investment 
C) The lower quality of life they'll experience 
D) The uncertainty of their income

Question 12

Because of advances in technology,entrepreneurs can outsource many of the operations of their companies.

Accepted Answer

A) True 
 B)False

Question 13

The opportunity to reap unlimited profits is the primary motivator for most entrepreneurs.

Accepted Answer

A) True 
 B)False

Question 14

Kyoto has started an interior decoration business.Everything about the business,from its name to the color schemes used in the corporate letterhead,is an expression of her personality.She sees this business as her greatest personal achievement.Kyoto is experiencing the opportunity ________ of small business ownership.

Accepted Answer

A) to reap unlimited profits 
B) to contribute to society 
C) to make a difference 
D) to reach her full potential 
A) to reap unlimited profits 
B) to contribute to society 
C) to make a difference 
D) to reach her full potential

Question 15

Immigrant entrepreneurs tend to arrive in the United States with less education and experience but more drive and access to capital through their "ethnic" connections.

Accepted Answer

A) True 
 B)False

Question 16

Lack of experience is the number one cause of small business failures.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not a common characteristic of entrepreneurs?

Accepted Answer

A) Desire for responsibility 
B) Business plan expertise 
C) Preference for moderate risk 
D) High energy level 
A) Desire for responsibility 
B) Business plan expertise 
C) Preference for moderate risk 
D) High energy level

Question 18

What role do corporate castoffs and corporate dropouts play in the growth of entrepreneurship in the United States?

Accepted Answer

Concentrating on trying to operate more

Question 19

What can an entrepreneur do to avoid the failure of his/her company? Discuss at least six actions they can take.

Accepted Answer

There are several general tactics small

Question 20

To avoid business failure,an entrepreneur should:

Accepted Answer

A) know the business in depth. 
B) develop a solid business plan. 
C) take entrepreneurship courses. 
D) Both A and B 
A) know the business in depth. 
B) develop a solid business plan. 
C) take entrepreneurship courses. 
D) Both A and B

Exam 1: Entrepreneurs: the Driving Force Behind Small Business

Entrepreneurs are more wild risk takers than calculated risk takers.

In start-ups,it is often safest to be a "me-too" business,follow the leaders in the market until sufficient cash flow develops to permit R & D into new and innovative products.

Entrepreneurial success requires both persistence and ________.

The trend in corporate downsizing and the resulting trust gap have spawned both the "corporate castoff" and the "corporate dropout."

Despite their popularity,family-owned businesses are actually a small portion of the economy and contribute less than 25% of the GNP to the economy of the United States.

Most of today's immigrant entrepreneurs come into the U.S.with:

Entrepreneurs usually experience greater income stability running their own businesses than they did in their corporate careers.

Joanne is thinking about running her own business.What risks does she face?

Most successful entrepreneurs accept failure as part of what they do,and they use it to learn for the "next time."

Studies indicate that the opportunity to make a difference is a significant benefit in the eyes of most entrepreneurs.

Mary and Ted are discussing starting a new business and are asking themselves a series of questions like;"What is the worst that could happen if we fail?" "How likely is that to happen?" They are assessing which potential drawback of small business ownership?

Because of advances in technology,entrepreneurs can outsource many of the operations of their companies.

The opportunity to reap unlimited profits is the primary motivator for most entrepreneurs.

Immigrant entrepreneurs tend to arrive in the United States with less education and experience but more drive and access to capital through their "ethnic" connections.

Lack of experience is the number one cause of small business failures.

Which of the following is not a common characteristic of entrepreneurs?

What role do corporate castoffs and corporate dropouts play in the growth of entrepreneurship in the United States?

What can an entrepreneur do to avoid the failure of his/her company? Discuss at least six actions they can take.

To avoid business failure,an entrepreneur should:

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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