Question 1

All entrepreneurs are motivated by building larger, more profitable businesses.

Accepted Answer

A) True 
 B)False

Question 2

Most entrepreneurs use their own savings as the primary source of initial funding.

Accepted Answer

A) True 
 B)False

Question 3

Vaughn Hager started his one-man consulting business under the name Hager Associates. He likes that he does not have to consult anyone else when making decisions. The legal structure for the company can best be described as a(n):

Accepted Answer

A)  sole proprietorship. 
B)  partnership. 
C)  trade alliance. 
D)  corporation. 
E)  one-man operation.

Question 4

What are the two principal advantages of forming a corporation?

Accepted Answer

A)  Unlimited liability and potential conflicts with partners 
B)  Freedom from debt and relatively simple structure 
C)  Continuity and limits on owners' liability 
D)  Unlimited liability and continuity 
E)  Continuity and nontax structure

Question 5

__________ entrepreneurship combines the creativity, business smarts, passion, and work of the traditional entrepreneur with a social mission.

Accepted Answer

A)  Contemporary 
B)  Nascent 
C)  Modern-day 
D)  Social 
E)  Conventional

Question 6

The percentage of loans provided by the Small Business Administration (SBA) to __________ has increased significantly in recent years.

Accepted Answer

A)  women 
B)  African Americans 
C)  Asian Americans 
D)  Hispanics 
E)  all of these

Question 7

A new corporate structure known as a benefit corporation has been established for minority-owned and women-owned businesses.

Accepted Answer

A) True 
 B)False

Question 8

Andrew, a young entrepreneur, feels sure about his ability to win customers through his people skills. He is comfortable with his ability to handle technical details and feels that he is able to keep his business moving. This most closely relates to which characteristic of entrepreneurs?

Accepted Answer

A)  Need to achieve 
B)  Patience 
C)  Tolerance for ambiguity 
D)  High energy 
E)  Self-confidence

Question 9

__________ focuses primarily on creating social value by providing solutions to social problems, with a secondary purpose of generating profit and returns.

Accepted Answer

The answer of __________ focuses primarily on creating social value...

Question 10

Melissa is a very good middle manager. However, she has a dream of starting her own business. She is willing to give up all of her free time and weekends in order to get her business started. This illustrates Melissa's:

Accepted Answer

A)  high self-confidence. 
B)  entrepreneurial sacrifice. 
C)  internal locus of control. 
D)  autonomy. 
E)  need to achieve.

Question 11

__________ reflects an entrepreneur's desire to make their own decisions about their business.

Accepted Answer

A)  Self-confidence 
B)  An internal locus of control 
C)  High energy 
D)  Autonomy 
E)  Entrepreneurial sacrifice

Question 12

In the United States, entrepreneurship and small business are the engines for job creation and innovation.

Accepted Answer

A) True 
 B)False

Question 13

Holly and Trent
While many others dreamed about owning their own business, Holly Gabrel decided to do something about it. Holly knew that being self-employed required long hours and hard work, but with the help of her husband, Trent, Holly was positive that the hours and the work would be rewarded. First, she and Trent developed a new concept in sunglasses that could be used by athletes better than the sunglasses now on the market. Holly and Trent obtained a patent on their invention, and began production and marketing.
-With the entrepreneurial personality, Holly can be expected to have all of the following traits except:

Accepted Answer

A)  an internal locus of control. 
B)  a desire for autonomy. 
C)  a strong need to achieve. 
D)  patience. 
E)  self-confidence.

Question 14

Which of the following is the process of initiating a business venture, organizing the necessary resources, assuming the associated risks, and enjoying the rewards?

Accepted Answer

A)  Intrapreneurship 
B)  Entrepreneurship 
C)  Small business administration 
D)  Venture capital 
E)  Equity financing

Question 15

A(n) __________ is a document specifying the business details prepared by an entrepreneur prior to opening a new business.

Accepted Answer

The answer of A(n) __________ is a document specifying the...

Question 16

A drawback of a sole proprietorship is:

Accepted Answer

A)  the unlimited liability of the partners. 
B)  conflicts with partners. 
C)  its continued existence regardless of whether the owner lives or dies. 
D)  difficulty in obtaining financing. 
E)  the complexity and cost to keep the records required by law.

Question 17

Wendy enjoys making crafts and giving these away as gifts to friends and family. One day, she decided to quit her job and make crafts full-time, selling them on her new company Web site. Which tactic of becoming a business owner did Wendy use?

Accepted Answer

A)  Equity financing 
B)  New business start-up 
C)  Buying an existing business 
D)  Buying a franchise 
E)  Merger and acquisition

Question 18

Max is the Web site manager for a local florist. The company's owner would like Max to redesign the Web site so that customers can connect directly with florist employees on a daily basis about products and specials. This relates to which step in establishing an online business?

Accepted Answer

A)  Finding a niche market 
B)  Knowing when to pivot 
C)  Choosing a target market 
D)  Choosing a domain name 
E)  Using social media

Question 19

Name and describe the five different categories of small-business owners.

Accepted Answer

The answer of Name and describe the five different categories...

Question 20

Celine has an unwavering belief in her new start-up company. She possesses intense focus and takes unconventional risks to make her new company successful. She has a strong work ethic and often works more than 60 hours a week. These examples most closely relate to which characteristic of entrepreneurs?

Accepted Answer

A)  Need to achieve 
B)  Patience 
C)  Tolerance for ambiguity 
D)  High energy 
E)  Self-confidence

Exam 6: Managing Start-Ups and New Ventures

All entrepreneurs are motivated by building larger, more profitable businesses.

Most entrepreneurs use their own savings as the primary source of initial funding.

Vaughn Hager started his one-man consulting business under the name Hager Associates. He likes that he does not have to consult anyone else when making decisions. The legal structure for the company can best be described as a(n) :

What are the two principal advantages of forming a corporation?

__________ entrepreneurship combines the creativity, business smarts, passion, and work of the traditional entrepreneur with a social mission.

The percentage of loans provided by the Small Business Administration (SBA) to __________ has increased significantly in recent years.

A new corporate structure known as a benefit corporation has been established for minority-owned and women-owned businesses.

Andrew, a young entrepreneur, feels sure about his ability to win customers through his people skills. He is comfortable with his ability to handle technical details and feels that he is able to keep his business moving. This most closely relates to which characteristic of entrepreneurs?

__________ focuses primarily on creating social value by providing solutions to social problems, with a secondary purpose of generating profit and returns.

Melissa is a very good middle manager. However, she has a dream of starting her own business. She is willing to give up all of her free time and weekends in order to get her business started. This illustrates Melissa's:

__________ reflects an entrepreneur's desire to make their own decisions about their business.

In the United States, entrepreneurship and small business are the engines for job creation and innovation.

Which of the following is the process of initiating a business venture, organizing the necessary resources, assuming the associated risks, and enjoying the rewards?

A(n) __________ is a document specifying the business details prepared by an entrepreneur prior to opening a new business.

A drawback of a sole proprietorship is:

Wendy enjoys making crafts and giving these away as gifts to friends and family. One day, she decided to quit her job and make crafts full-time, selling them on her new company Web site. Which tactic of becoming a business owner did Wendy use?

Max is the Web site manager for a local florist. The company's owner would like Max to redesign the Web site so that customers can connect directly with florist employees on a daily basis about products and specials. This relates to which step in establishing an online business?

Name and describe the five different categories of small-business owners.