Question 1

________ percent of all small businesses are home based.

Accepted Answer

A) 53 
B) 20 
C) 70 
D) 80

Question 2

Around the world,the most successful entrepreneurs have ________ status.

Accepted Answer

A) villain 
B) hero 
C) profiteer 
D) shirker

Question 3

The key to effective financial management in a start-up is:

Accepted Answer

A) excellent controls. 
B) the use of ABC accounting processes. 
C) sufficient start-up capital. 
D) an adequate inventory on hand.

Question 4

Juan is able to work well in a constantly changing atmosphere and has little concern for what tomorrow will bring.Juan demonstrates which of the following characteristics of a typical entrepreneur?

Accepted Answer

A) The willingness to take extreme risks 
B) A desire for immediate feedback 
C) A tolerance for ambiguity 
D) A future orientation

Question 5

Generation X,made up of those people born between 1965 and 1980,is the most entrepreneurial generation in history.

Accepted Answer

A) True 
 B)False

Question 6

Customer service,convenience,speed and quality are all examples of:

Accepted Answer

A) learning to manage people effectively. 
B) generating more revenue. 
C) small businesses. 
D) setting your business apart from others.

Question 7

Starting a part-time business is a popular gateway to entrepreneurship.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following trends is feeding the growth of entrepreneurial activity?

Accepted Answer

A) A greater focus on professional advancement combined with the "flattening" of large corporations' management hierarchies 
B) The rapid growth of the need for low-technology products 
C) A favorable attitude toward entrepreneurs in American society 
D) Diminished wage increases in corporations and the desire for a better standard of living

Question 9

The two common pitfalls of poor financial control are undercapitalization and lax customer credit policies.

Accepted Answer

A) True 
 B)False

Question 10

"Copreneurs" are:

Accepted Answer

A) personality traits of entrepreneurs. 
B) entrepreneurial couples who work together as co-owners of their business. 
C) business magazines targeted towards entrepreneurs. 
D) None of the above

Question 11

Despite their magnitude,family businesses face a major threat-a threat from within: management succession.

Accepted Answer

A) True 
 B)False

Question 12

A knowledge-based business economy favors small business because:

Accepted Answer

A) the cost of managing and transmitting knowledge is very low. 
B) small businesses are more successful. 
C) information technology is driving the cost of managing and transmitting knowledge lower. 
D) Both A and C

Question 13

Many entrepreneurs discover they work fewer hours (less than 45 hours a week)as new business owners than they did as middle managers in large corporations.

Accepted Answer

A) True 
 B)False

Question 14

The international market:

Accepted Answer

A) has proven to be a tremendous opportunity for small business. 
B) is being dominated by large corporations based in Europe and Japan. 
C) is largely closed to small U.S.-based businesses because of the growth of international entrepreneurship. 
D) provides greater opportunities for women and minority entrepreneurs than U.S.domestic markets do.

Question 15

Companies started by women differ from companies started by men in that:

Accepted Answer

A) men's start-ups tend to be smaller and less well-financed than women's. 
B) women's companies tend to be labor-intense businesses and therefore employ more people,even though they have smaller revenues. 
C) women's companies start smaller. 
D) men tend to start their businesses with their own capital,women with others' capital.

Question 16

"Corporate dropouts" are middle managers who are laid off from large corporations and decide to start their own businesses rather than return to a corporate job.

Accepted Answer

A) True 
 B)False

Question 17

Drawbacks of owning a small business include all but:

Accepted Answer

A) unbalanced family life. 
B) no guarantee that the business would make profits. 
C) too many financial statements. 
D) Both A and B

Question 18

Small businesses create more jobs than either medium or large businesses.

Accepted Answer

A) True 
 B)False

Question 19

A well-written business plan defines the company's ________.

Accepted Answer

A) policies 
B) procedures 
C) routines 
D) business model

Question 20

When an entrepreneur develops a relationship with a manager in a large established company in order to draw on the corporate manager's experience,it is called "Copreneurship."

Accepted Answer

A) True 
 B)False

Exam 1: Entrepreneurs: the Driving Force Behind Small Business

________ percent of all small businesses are home based.

Around the world,the most successful entrepreneurs have ________ status.

The key to effective financial management in a start-up is:

Juan is able to work well in a constantly changing atmosphere and has little concern for what tomorrow will bring.Juan demonstrates which of the following characteristics of a typical entrepreneur?

Generation X,made up of those people born between 1965 and 1980,is the most entrepreneurial generation in history.

Customer service,convenience,speed and quality are all examples of:

Starting a part-time business is a popular gateway to entrepreneurship.

Which of the following trends is feeding the growth of entrepreneurial activity?

The two common pitfalls of poor financial control are undercapitalization and lax customer credit policies.

"Copreneurs" are:

Despite their magnitude,family businesses face a major threat-a threat from within: management succession.

A knowledge-based business economy favors small business because:

Many entrepreneurs discover they work fewer hours (less than 45 hours a week)as new business owners than they did as middle managers in large corporations.

The international market:

Companies started by women differ from companies started by men in that:

"Corporate dropouts" are middle managers who are laid off from large corporations and decide to start their own businesses rather than return to a corporate job.

Drawbacks of owning a small business include all but:

Small businesses create more jobs than either medium or large businesses.

A well-written business plan defines the company's ________.

When an entrepreneur develops a relationship with a manager in a large established company in order to draw on the corporate manager's experience,it is called "Copreneurship."