Question 1

.List the four factors that have contributed to the expansion in entrepreneurship.

Accepted Answer

The four factors are (1)globalization, (2)education, (3)information technology,and (4)economic and demographic trends.

Question 2

Elon Musk,founder of PayPal,and CEO of Tesla Motors,Solar City,and SpaceX,is a serial entrepreneur.

Accepted Answer

A) True 
 B)False  True

Question 3

Obtaining financing for an existing business is easier than it is for most start-up companies.

Accepted Answer

A) True 
 B)False  True

Question 4

Michelle works for a large bank that recently merged with another financial institution.Word of layoffs has been discussed.Michelle is most likely to become an entrepreneur in order to _____.

Accepted Answer

A)  avoid taking risks
B)  obtain job security
C)  have employment as a cushion for failures
D)  guarantee financial success

Question 5

Philomina invests in her new venture along with the fund supplied by Deccan Corp. ,the co-owner of her start-up.This type of funding is known as _____.

Accepted Answer

A)  equity financing
B)  debt financing
C)  social venture capital funding
D)  focused funding

Question 6

Entrepreneurs may also perform a managerial role,but their overriding responsibility is to use the resources of their organizations to accomplish their goals.

Accepted Answer

A) True 
 B)False

Question 7

Complete the following using the terms listed.
-_____ refers to the characteristic of entrepreneurs believing that they control their own destiny.

Accepted Answer

A)  Seed capital
B)  angel investor
C)  venture capitalist
D)  debt financing
E)  Information technologyF) social entrepreneurG) classic entrepreneurH) lifestyle entrepreneurI) equity financingJ) skunkworksK) IntrapreneurshipL) Internal locus of controlM) equity funds

Question 8

The Small Business Administration (SBA)recommends avoiding the use of personal credit cards for business expenses.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following instances best represents a skunkworks project?

Accepted Answer

A)  Fathima obtains funding from a venture capitalist to start her new venture.
B)  Frank obtains funding from an angel investor who also helps him with launching his business.
C)  Laila obtains funding from the company she works for to turn her idea into a commercial project.
D)  Janet obtains funding through bank loans and finance companies that she must repay.

Question 10

_____ focus on solving society's challenges through their businesses.

Accepted Answer

A)  Classic entrepreneurs
B)  Change agents
C)  Atypical entrepreneurs
D)  Social entrepreneurs

Question 11

An entrepreneur:

Accepted Answer

A)  is a risk taker in the private enterprise system.
B)  is a gambler in the private enterprise system.
C)  does not tolerate ambiguity.
D)  does not tolerate failures.

Question 12

Which of the following statements about globalization and entrepreneurship is correct?

Accepted Answer

A)  The business ownership rate is highest in economies that compete based on unskilled labor.
B)  Most entrepreneurs are from countries whose economies are driven by innovation.
C)  Entrepreneurship is least common in Latin America,Sub-Saharan Africa,and the Caribbean.
D)  The United States leads in the percentage of adults engaged in entrepreneurship.

Question 13

After starting a web design company while still in college,Ricardo sold the company after graduation.He then opened a computer repair shop;and most recently,he has started a marketing firm that specializes in social media.Ricardo is an example of a(n):

Accepted Answer

A)  serial entrepreneur.
B)  social entrepreneur.
C)  lifestyle entrepreneur.
D)  classic entrepreneur.

Question 14

Which of the following is a personality trait that differentiates entrepreneurs from managers?

Accepted Answer

A)  Desire to succeed instantly
B)  Desire to change the world
C)  Willingness to take risks in a new venture
D)  Willingness to share ownership of a new venture

Question 15

Complete the following using the terms listed.
-A(n)_____ is typically known to back companies in high-technology industries such as biotechnology.

Accepted Answer

A)  Seed capital
B)  angel investor
C)  venture capitalist
D)  debt financing
E)  Information technologyF) social entrepreneurG) classic entrepreneurH) lifestyle entrepreneurI) equity financingJ) skunkworksK) IntrapreneurshipL) Internal locus of controlM) equity funds

Question 16

_____ are business organizations or groups of private individuals who invest in early-stage,high-potential growth companies.

Accepted Answer

A)  Angel investors
B)  Share brokers
C)  Intrapreneurs
D)  Venture capitalists

Question 17

Financial success _____.

Accepted Answer

A)  rarely results from starting a business
B)  is part of the appeal of becoming an entrepreneur
C)  plays little role in motivating people to become entrepreneurs
D)  is virtually guaranteed if people work hard enough starting their own businesses

Question 18

Most entrepreneurs are skeptical of using social media to promote their businesses.

Accepted Answer

A) True 
 B)False

Question 19

_____ of the fastest-growing small companies in the United States have international sales.

Accepted Answer

A)  Two of every five
B)  Three of every five
C)  Four of every five
D)  Five of every six

Question 20

Miguel is a wealthy person who focuses on investing in new ventures.He is looking to invest money directly into a new consulting business in return for equity in the company.Miguel is an example of a(n)_____.

Accepted Answer

A)  franchisor
B)  stock broker
C)  angel investor
D)  franchisee

Exam 6: Starting Your Own Business: the Entrepreneurship Alternative

.List the four factors that have contributed to the expansion in entrepreneurship.

Elon Musk,founder of PayPal,and CEO of Tesla Motors,Solar City,and SpaceX,is a serial entrepreneur.

Obtaining financing for an existing business is easier than it is for most start-up companies.

Michelle works for a large bank that recently merged with another financial institution.Word of layoffs has been discussed.Michelle is most likely to become an entrepreneur in order to _____.

Philomina invests in her new venture along with the fund supplied by Deccan Corp. ,the co-owner of her start-up.This type of funding is known as _____.

Entrepreneurs may also perform a managerial role,but their overriding responsibility is to use the resources of their organizations to accomplish their goals.

Complete the following using the terms listed. -_____ refers to the characteristic of entrepreneurs believing that they control their own destiny.

The Small Business Administration (SBA)recommends avoiding the use of personal credit cards for business expenses.

Which of the following instances best represents a skunkworks project?

_____ focus on solving society's challenges through their businesses.

An entrepreneur:

Which of the following statements about globalization and entrepreneurship is correct?

After starting a web design company while still in college,Ricardo sold the company after graduation.He then opened a computer repair shop;and most recently,he has started a marketing firm that specializes in social media.Ricardo is an example of a(n) :

Which of the following is a personality trait that differentiates entrepreneurs from managers?

Complete the following using the terms listed. -A(n) _____ is typically known to back companies in high-technology industries such as biotechnology.

_____ are business organizations or groups of private individuals who invest in early-stage,high-potential growth companies.

Financial success _____.

Most entrepreneurs are skeptical of using social media to promote their businesses.

_____ of the fastest-growing small companies in the United States have international sales.

Miguel is a wealthy person who focuses on investing in new ventures.He is looking to invest money directly into a new consulting business in return for equity in the company.Miguel is an example of a(n) _____.