Entrepreneurship And Small Business Test Bank Answers Ch.18

Exploring Management, 7e (Schermerhorn)

Chapter 18 Entrepreneurship and Small Business

1) A(n) ________ is someone who is willing to take risks and pursue opportunities in situations that others view as problems or threats.

A) capitalist

B) investor

C) entrepreneur

D) banker

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs are risk takers who spot and pursue opportunities.

AACSB: Analytic

2) People aged ________ are the fastest-growing group of entrepreneurs in the United States.

A) 25–34

B) 45–54

C) 55–64

D) 75–84

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs often share similar backgrounds and experiences.

AACSB: Analytic

3) A(n) ________ advantage comes from being first to exploit a niche or enter a market.

A) first-mover

B) veteran's

C) government subsidized

D) early entry

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs are risk takers who spot and pursue opportunities.

AACSB: Analytic

4) Which of the following statements is true of entrepreneurs?

A) They avoid risk and pursue only safe business options.

B) They have inborn qualities that help them succeed in new ventures.

C) They use the talent gained from experience as the foundation for success.

D) They start with huge amounts of money and proceed to multiply it.

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs often share similar backgrounds and experiences.

AACSB: Analytic

5) Which of the following personality traits and characteristics is most likely to be shared by entrepreneurs?

A) An external locus of control

B) A low need for achievement

C) A discomfort with uncertainty

D) Self-confidence and self-reliance

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs often share similar backgrounds and experiences.

AACSB: Analytic

6) A majority of entrepreneurs are characterized by a(n) ________.

A) external locus of control

B) high need for achievement

C) intolerance for ambiguity

D) desire for dependence

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs often share similar backgrounds and experiences.

AACSB: Analytic

7) When people start new ventures because they have few or no other employment options, it is called ________ entrepreneurship.

A) socialism-based

B) capitalism-driven

C) minority-based

D) necessity-based

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Women and minority entrepreneurs are growing in numbers.

AACSB: Analytic

8) Potential entrepreneurs often possess all of the following characteristics EXCEPT ________.

A) a high need for achievement

B) an intolerance for ambiguity

C) flexibility

D) a high energy level

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs often share similar backgrounds and experiences.

AACSB: Analytic

9) Approximately ________ percent of women leaving private sector employment to pursue entrepreneurship believed they hit a glass ceiling or were not being taken seriously by their employers.

A) 15

B) 30

C) 45

D) 60

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Women and minority entrepreneurs are growing in numbers.

AACSB: Analytic

10) Approximately ________ percent of loan applications by black business owners get approved; approximately ________ percent of loan applications by white business owners get approved.

A) 15; 75

B) 30; 60

C) 50; 50

D) 65; 40

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Women and minority entrepreneurs are growing in numbers.

AACSB: Analytic

11) ________ entrepreneurship involves the pursuit of business initiatives that solve the problems of the poor and disadvantaged.

A) Minority

B) Social

C) Disadvantaged

D) Welfare

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Social entrepreneurs seek novel solutions to pressing social problems.

AACSB: Analytic

12) Which of the following is the differentiating feature between social entrepreneurs and general business entrepreneurs?

A) A high tolerance for ambiguity

B) A desire to take great risks

C) A high degree of self-motivation

D) A drive toward helping society

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Social entrepreneurs seek novel solutions to pressing social problems.

AACSB: Analytic

13) The U.S. federal agency responsible for defining and supporting small businesses is the ________.

A) Small Business Administration (SBA)

B) National Security Agency (NSA)

C) Securities and Exchange Commission (SEC)

D) Limited Liability Corporation (LLC)

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Small businesses are mainstays of the economy.; Assistance is available to help small businesses get started.

AACSB: Analytic

14) Almost ________ percent of U.S. businesses have 500 or fewer employees, are independently owned and operated, and do not dominate their industries.

A) 29

B) 49

C) 79

D) 99

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Small businesses are mainstays of the economy.

AACSB: Analytic

15) A ________ is when one business owner sells to another the right to operate the same business in another location.

A) franchise

B) chain

C) start-up

D) branch

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Small businesses are mainstays of the economy.

AACSB: Analytic

16) A ________ is how the business will make a profit by generating revenues that are greater than costs.

A) strategic model

B) business model

C) succession plan

D) business plan

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Small businesses are mainstays of the economy.

AACSB: Analytic

17) A ________ is a new and temporary venture that is trying to discover a profitable business model for future success.

A) franchise

B) branch

C) chain

D) start-up

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Small businesses are mainstays of the economy.

AACSB: Analytic

18) According to the U.S. Small Business Administration, a small business is a(n) ________.

A) publicly held and managed business

B) new venture

C) corporation

D) independently owned and operated business

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Small businesses are mainstays of the economy.

AACSB: Analytic

19) In the United States, small businesses employ approximately ________ percent of private-sector workers.

A) 48

B) 66

C) 77

D) 92

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Small businesses are mainstays of the economy.

AACSB: Analytic

20) In which of the following life-cycle stages of small businesses does the business model begin to work well, growth take place, and the complexity of the business expand significantly?

A) The maturity stage

B) The breakthrough stage

C) The post-maturity stage

D) The birth stage

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Small businesses must master three life-cycle stages.

AACSB: Analytic

21) In which of the following life-cycle stages of small businesses does an entrepreneur struggle to get the new venture established and survive long enough to test the real marketplace?

A) The birth stage

B) The breakthrough stage

C) The maturity stage

D) The death stage

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Small businesses must master three life-cycle stages.

AACSB: Analytic

22) In which of the following life-cycle stages of small businesses does an entrepreneur face competitive challenges in a dynamic environment?

A) The birth stage

B) The breakthrough stage

C) The maturity stage

D) The death stage

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Small businesses must master three life-cycle stages.

AACSB: Analytic

23) ________ represent the largest percentage of businesses operating worldwide.

A) Family businesses

B) Start-ups

C) Big corporations

D) Public sector industries

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Family-owned businesses can face unique challenges.

AACSB: Analytic

24) A small business in the birth stage of its life cycle requires ________ leadership.

A) diversified

B) corporate

C) entrepreneurial

D) strategic

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Small businesses must master three life-cycle stages.

AACSB: Analytic

25) In a family business, the ________ refers to the issue of who will run the business when the current head leaves.

A) follow-through problem

B) succession problem

C) follow-up problem

D) resignation problem

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Family-owned businesses can face unique challenges.

AACSB: Analytic

26) According to the U.S. Small Business Administration, what percent of small businesses fail in their first five years of operation?

A) 50

B) 60

C) 80

D) 90

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Many small businesses fail within five years.

AACSB: Analytic

27) The common reasons for small business failures include all of the following EXCEPT ________.

A) lack of experience

B) lack of strategy

C) poor financial control

D) slow growth rate

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Most small businesses fail within five years.

AACSB: Analytic

28) A(n) ________ plan describes how the leadership transition and related financial matters will be handled in a family business.

A) corporate

B) operations

C) succession

D) strategic

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Family-owned businesses can face unique challenges.

AACSB: Analytic

29) Only three percent of family businesses are expected to survive beyond the ________ generation.

A) first

B) second

C) third

D) current

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Family-owned businesses can face unique challenges.

AACSB: Analytic

30) Which of the following is a reason behind the failure of several small businesses?

A) Insufficient employee base

B) Inferior product ideas

C) Lack of expertise

D) Failure to issue an initial public offering

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Most small businesses fail within five years.

AACSB: Analytic

31) A business plan should consist of all of the following EXCEPT ________.

A) executive summary

B) operations description

C) marketing strategy

D) goal analysis

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: A small business should start with a sound business plan.

AACSB: Analytic

32) A ________ is an individual or married couple who pursue business for a profit.

A) partnership

B) general partnership

C) sole proprietorship

D) corporation

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different forms of small business ownership.

AACSB: Analytic

33) A ________ is the most common form of U.S. small business ownership.

A) corporation

B) sole proprietorship

C) general partnership

D) limited partnership

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different forms of small business ownership.

AACSB: Analytic

34) When two or more people agree to contribute resources to start and operate a business together, it is a ________.

A) partnership

B) limited liability company

C) sole proprietorship

D) corporation

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different forms of small business ownership.

AACSB: Analytic

35) The two types of partnerships are ________.

A) liability and general

B) general and limited

C) limited and specific

D) specific and liability

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different forms of small business ownership.

AACSB: Analytic

36) A partnership in which owners share management and responsibility for debts and losses is a ________ partnership.

A) limited liability

B) specific

C) general

D) limited

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different forms of small business ownership.

AACSB: Analytic

37) In a ________, owners share profits, but responsibility for losses is limited to original investments.

A) general partnership

B) limited partnership

C) proprietorship

D) limited liability corporation

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different forms of small business ownership.

AACSB: Analytic

38) A ________ is a legal entity that exists separately from its owners.

A) corporation

B) general partnership

C) proprietorship

D) limited partnership

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different forms of small business ownership.

AACSB: Analytic

39) A ________ combines the advantages of the sole proprietorship, partnership, and corporation.

A) franchise

B) limited liability corporation

C) venture capitalist

D) limited liability partnership

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different forms of small business ownership.

AACSB: Analytic

40) Chou wants to start a new business and prefers to keep the paperwork simple and avoid large legal fees. Further, he does not want his personal property attached to the business. In this scenario, John should start his business as a ________.

A) corporation

B) general partnership

C) limited liability corporation

D) sole proprietorship

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different forms of small business ownership.

AACSB: Reflective Thinking

41) ________ financing involves borrowing money from another person, a bank, or a financial institution to start a business.

A) Equity

B) Initial public

C) Debt

D) Crowd

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different ways of financing a small business.

AACSB: Analytic

42) Leela wants to raise money for her business. However, she does not want to give its ownership shares to outsiders. Which of the following ways of financing should Leela choose for her business?

A) Angel investor

B) Venture capitalist

C) Debt financing

D) Initial public offering

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different ways of financing a small business.

AACSB: Analytic

43) ________ financing gives ownership shares to outsiders in return for their financial investments.

A) Debt

B) Initial public

C) Asset

D) Equity

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different ways of financing a small business.

AACSB: Analytic

44) The form of financing called ________ requires collateral that pledges business assets or personal assets as security in case of default.

A) equity financing

B) venture capital

C) debt financing

D) initial public offering

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different ways of financing a small business.

AACSB: Analytic

45) ________ make large investments in new ventures in return for an equity stake in the business.

A) Venture capitalists

B) Equity investors

C) Bankers

D) Start-up managers

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different ways of financing a small business.

AACSB: Analytic

46) A wealthy private individual who invests in return for equity in a new venture is a(n) ________.

A) equity investor

B) angel investor

C) new venture manager

D) banker

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different ways of financing a small business.

AACSB: Analytic

47) An angel investor who invests in a new venture is involved in ________ financing.

A) debt

B) partnership

C) restricted

D) equity

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different ways of financing a small business.

AACSB: Analytic

48) A(n) ________ is the first time that a company sells its shares of stock to the public.

A) first-mover offering

B) initial public offering

C) private exchange

D) stock auction

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different ways of financing a small business.

AACSB: Analytic

49) The payoff for venture capitalists is during the ________.

A) maturity of the investment

B) commencement of the venture

C) business closure

D) initial public offering

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different ways of financing a small business.

AACSB: Analytic

50) Sadie is the president of Sadie's Stuff LLC. She owns 200,000 shares of the company. Sadie will earn a huge profit if the company has a successful ________.

A) debt financing auction

B) sole proprietorship auction

C) equity investor offering

D) initial public offering

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different ways of financing a small business.

AACSB: Reflective Thinking

51) Women-owned businesses in the U.S. have declined in recent years.

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Women and minority entrepreneurs are growing in numbers.

AACSB: Analytic

52) When it comes to finance, women have far more access to capital than men.

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Women and minority entrepreneurs are growing in numbers.

AACSB: Analytic

53) Research suggests that a college degree is necessary to be a successful entrepreneur.

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs often share similar backgrounds and experiences.

AACSB: Analytic

54) Research shows that entrepreneurs are born, not made.

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs often share similar backgrounds and experiences.

AACSB: Analytic

55) A small business is one with 500 or fewer employees.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Small businesses are mainstays of the economy.

AACSB: Analytic

56) In the maturity stage of business development, an entrepreneur experiences market success and financial stability but also has to face competitive challenges.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Small businesses must master three life-cycle stages.

AACSB: Analytic

57) In a limited partnership, only the general manager is involved in the day-to-day operations; however, all partners share in the profits.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different forms of small business ownership.

AACSB: Analytic

58) A limited liability corporation (LLC) is a hybrid structural form that has the advantages of sole proprietorships and partnerships for taxes and of corporations for liability protection.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different forms of small business ownership.

AACSB: Analytic

59) Equity financing provides finance to a business owner that has to be repaid eventually.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different ways of financing a small business.

AACSB: Analytic

60) ________ pursue business opportunities they spot as mothers.

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs are risk takers who spot and pursue opportunities.

AACSB: Analytic

61) A(n) ________ starts and runs businesses and nonprofits over and over again, moving from one interest and opportunity to the next.

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs are risk takers who spot and pursue opportunities.

AACSB: Analytic

62) A(n) ________ occurs when a firm moves faster than its competitors in spotting, exploiting, and delivering a product or service to a new market or previously unrecognized niche in an existing one.

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs are risk takers who spot and pursue opportunities.

AACSB: Analytic

63) The ________ in entrepreneurship includes strong organizational skills and tolerance for risk found primarily in the 55-65 age group and among retired military.

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs often share similar backgrounds and experiences.

AACSB: Analytic

64) When an entrepreneur is forced to open a business due to conditions like layoffs from previous jobs, a low likelihood of employment, the inability to grow in the current career, or simply to put food on the table, he or she is engaged in ________ entrepreneurship.

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Women and minority entrepreneurs are growing in numbers.

AACSB: Analytic

65) ________ involves developing a business to solve pressing societal needs at home or abroad.

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Social entrepreneurs seek novel solutions to pressing social problems.

AACSB: Analytic

66) In addition to the normal operational challenges of small businesses, family businesses face the risk of ________ where one family member may question why the business is tolerating another family member's laziness.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Family-owned businesses can face unique challenges.

AACSB: Analytic

67) A ________ is a facility that offers services to help new businesses get established.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Assistance is available to help small businesses get started.

AACSB: Analytic

68) ________ offer guidance to entrepreneurs and small business owners on how to set up and manage business operations.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Assistance is available to help small businesses get started.

AACSB: Analytic

69) A(n) ________ describes the goals of a business, outlines how it intends to operate, and lays out the financial strategies.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: A small business should start with a sound business plan.

AACSB: Analytic

70) A(n) ________ is formed when two more people contribute resources to start and operate a business together.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different forms of small business ownership.

AACSB: Analytic

71) A(n) ________ has a life of its own and separates the owners from personal liability.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different forms of small business ownership.

AACSB: Analytic

72) The ________ is a corporate form for businesses whose stated goals are to combine making a profit with benefiting society and the environment.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different forms of small business ownership.

AACSB: Analytic

73) ________ limit the liability of one partner in case of negligence by any others.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different forms of small business ownership.

AACSB: Analytic

74) When you provide ownership shares in exchange for capital that does not have to be repaid, you are using ________.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different ways of financing a small business.

AACSB: Analytic

75) ________ are individuals or companies who provide funds to new ventures in exchange for an equity stake in the new business.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different ways of financing a small business.

AACSB: Analytic

76) In ________, new ventures go online to get start-up financing for their businesses from crowds of investors.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different ways of financing a small business.

AACSB: Analytic

77) How would you evaluate your "fit" as an entrepreneur?

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs often share similar backgrounds and experiences.

AACSB: Reflective Thinking

78) Compare and contrast the various structural options open to a small business organization.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different forms of small business ownership.

AACSB: Reflective Thinking

79) Define and characterize the various stages of a business life cycle.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Small businesses must master three life-cycle stages.

AACSB: Analytic

80) State the main causes of small business failures.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Most small businesses fail within five years.

AACSB: Reflective Thinking

81) What are the various means to fund new ventures? Define them and describe their advantages and disadvantages.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different ways of financing a small business.

AACSB: Reflective Thinking

82) The author of the textbook does NOT label ________ a serial entrepreneur.

A) Jack Dorsey

B) H. Wayne Huizenga

C) Elon Musk

D) Mark Zuckerberg

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs are risk takers who spot and pursue opportunities.

AACSB: Analytic

83) ________ is the average age of entrepreneurs starting "high growth" companies.

A) 25

B) 45

C) 55

D) 70

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs often share similar backgrounds and experiences.

AACSB: Analytic

84) ________ is a core word in the definitions of entrepreneurs and entrepreneurship; COVID-19 revealed ________ is a major part of this core problem.

A) Risk; emotional health

B) Risk; intellectual capability

C) Security; emotional health

D) Security; intellectual capability

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs face risks of failure in their drives to succeed.

AACSB: Analytic

85) Rigo Lopez recently retired after serving 20 years in the Air Force. He decides to start his own business to help wounded warriors find jobs. This is an example of a(n) ________ advantage.

A) aged user

B) late entry

C) first-mover

D) veteran's

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs often share similar backgrounds and experiences.

AACSB: Analytic

86) ________ entrepreneurship pursues business initiatives with the goal of helping society at large solve "grand challenges" that we now face.

A) Ethical

B) Impact

C) Societal

D) Venture

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Social entrepreneurs seek novel solutions to pressing social problems.

AACSB: Analytic

87) Y Combinator is a ________ that focuses on nurturing ________ start-ups.

A) business incubator; security

B) business incubator; web

C) social entrepreneurial company; security

D) social entrepreneurial company; web

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Assistance is available to help small businesses get started.

AACSB: Analytic

88) A business ________ is a facility that offers services to help new businesses get established.

A) entrepreneur

B) incubator

C) starter

D) venture

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Assistance is available to help small businesses get started.

AACSB: Analytic

89) ________ offer guidance to entrepreneurs and small business owners on how to set up and manage business operations.

A) Better Business Bureaus (BBBs)

B) Growing Business Centers (GBCs)

C) Small Business Care Developers (SBCDs)

D) Small Business Development Centers (SBDCs)

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Assistance is available to help small businesses get started.

AACSB: Analytic

90) In ________, new ventures go online to get start-up financing for their businesses from crowds of investors.

A) collaborative commerce

B) collaborative funding

C) crowdfinancing

D) crowdfunding

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different ways of financing a small business.

AACSB: Analytic

91) Kickstarter is a popular ________ site.

A) angel investor

B) initial public offering

C) crowdfunding

D) venture capitalist

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different ways of financing a small business.

AACSB: Analytic

92) Mompreneurs pursue business opportunities they spot as mothers.

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs are risk takers who spot and pursue opportunities.

AACSB: Analytic

93) Consecutive entrepreneurs start and run businesses and nonprofits over and over again, moving from one interest and opportunity to the next.

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs are risk takers who spot and pursue opportunities.

AACSB: Analytic

94) Anita Roddick started the company Spanx; she believes a company must act ethically to remain profitable.

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs are risk takers who spot and pursue opportunities.

AACSB: Analytic

95) Shawn Corey Carter founded the media firm Roc Nation.

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs are risk takers who spot and pursue opportunities.

AACSB: Analytic

96) COVID-19 hurt small businesses financially and emotionally.

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs face risks of failure in their drives to succeed.

AACSB: Analytic

97) Less than 1% of the available venture capital in the United States goes to minority entrepreneurs.

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Women and minority entrepreneurs are growing in numbers.

AACSB: Analytic

98) Research shows entrepreneurs can come from any age group.

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs often share similar backgrounds and experiences.

AACSB: Analytic

99) Entrepreneurs tend to have a high internal locus of control.

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs often share similar backgrounds and experiences.

AACSB: Analytic

100) Entrepreneurs tend to have a high tolerance for ambiguity.

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Entrepreneurs often share similar backgrounds and experiences.

AACSB: Analytic

101) Social entrepreneurs pursue ways to solve pressing social problems.

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Social entrepreneurs seek novel solutions to pressing social problems.

AACSB: Analytic

102) Influence entrepreneurship pursues business initiatives with the goal of helping society at large solve "grand challenges" that we now face.

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Social entrepreneurs seek novel solutions to pressing social problems.

AACSB: Analytic

103) Social entrepreneurs tend to get very little attention compared to class entrepreneurs.

Learning Objective: 18.1: Describe Entrepreneurship and the Characteristics of Entrepreneurs.

Section Reference: Social entrepreneurs seek novel solutions to pressing social problems.

AACSB: Analytic

104) An exporter is when one business owner sells to another the right to operate the same business in another location.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Small businesses are mainstays of the economy.

AACSB: Analytic

105) Steven Blank calls business start-ups temporary organizations that are trying "to discover a profitable, scalable business model."

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Small businesses are mainstays of the economy.

AACSB: Analytic

106) Family businesses represent the largest percentage of businesses operating worldwide.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Family-owned businesses can face unique challenges.

AACSB: Analytic

107) Minority- and female-owned businesses create 78% of new jobs in the U.S. and provide 60% of the nation's employment.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Family-owned businesses can face unique challenges.

AACSB: Analytic

108) About 30% of family firms survive to the second generation; this requires a succession plan.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Family-owned businesses can face unique challenges.

AACSB: Analytic

109) About 75% of start-up businesses fail with three years.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Many small businesses fail within five years.

AACSB: Analytic

110) A business curator is a facility that offers services to help new businesses get established.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Assistance is available to help small businesses get started.

AACSB: Analytic

111) Small Business Development Centers offer guidance to entrepreneurs and small business owners on how to set up and manage business operations.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Assistance is available to help small businesses get started.

AACSB: Analytic

112) A business mission describes the direction for a new business and the financing needed to operate it.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: A small business should start with a sound business plan.

AACSB: Analytic

113) A business plan describes the goals of the business and the way it intends to operate.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: A small business should start with a sound business plan.

AACSB: Analytic

114) An owner of a sole proprietorship is not personally liable for any business debts or claims.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different forms of small business ownership.

AACSB: Analytic

115) The benefit corporation is a corporate form for businesses whose stated goals are to combine making a profit with benefiting society and the environment.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different forms of small business ownership.

AACSB: Analytic

116) A corporation has a life of its own and is responsible for its liabilities.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different forms of small business ownership.

AACSB: Analytic

117) Venture capitalists are wealthy individuals willing to invest in exchange for equity in a new venture.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different ways of financing a small business.

AACSB: Analytic

118) In crowdfunding, new ventures go online to get start-up financing for their businesses from crowds of investors.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: There are different ways of financing a small business.

AACSB: Analytic

119) A small business has fewer than ________ employees.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Small businesses are mainstays of the economy.

AACSB: Analytic

120) A(n) ________ is when one business owner sells to another the right to operate the same business in another location.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Small businesses are mainstays of the economy.

AACSB: Analytic

121) Considering the life-cycle stages of a small business, the business model begins to work well, growth takes place, and the complexity of the business expands significantly in the ________ stage.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Small businesses must master three life-cycle stages.

AACSB: Analytic

122) A(n) ________ describes how the leadership transition and related financial matters will be handled.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Family-owned businesses can face unique challenges.

AACSB: Analytic

123) Data show that about ________ percent of start-up businesses fail within ________ years.

Learning Objective: 18.2: Discuss the Nature of Small Businesses and How to Start one.

Section Reference: Many small businesses fail within five years.

AACSB: Analytic

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