nan | Exam Prep + Ch.6 – Starting Your Own Business The - Contemporary Business 18e | Test Bank by Louis E. Boone by Louis E. Boone. DOCX document preview.
Package Title: Chapter 6, Testbank
Course Title: Boone, 18
Chapter Number: 6
Question type: Multiple Choice
1) A person who identifies a business opportunity and allocates available resources to tap that market is a(n) _____.
a) Seed capital
b) angel investor
c) venture capitalist
d) debt financing
e) Information technology
f) social entrepreneur
g) classic entrepreneur
h) lifestyle entrepreneur
i) equity financing
j) skunkworks
k) Intrapreneurship
l) Internal locus of control
m) equity funds
Difficulty: Medium
Learning Objective 1: 6.2
Section Reference 1: Identify the different categories of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
2) A(n)_____ recognizes a societal problem and uses business principles to develop innovative solutions.
a) Seed capital
b) angel investor
c) venture capitalist
d) debt financing
e) Information technology
f) social entrepreneur
g) classic entrepreneur
h) lifestyle entrepreneur
i) equity financing
j) skunkworks
k) Intrapreneurship
l) Internal locus of control
m) equity funds
Difficulty: Medium
Learning Objective 1: 6.2
Section Reference 1: Identify the different categories of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
3) A(n) _____ starts a business to gain flexibility in work hours and control over his or her life.
a) Seed capital
b) angel investor
c) venture capitalist
d) debt financing
e) Information technology
f) social entrepreneur
g) classic entrepreneur
h) lifestyle entrepreneur
i) equity financing
j) skunkworks
k) Intrapreneurship
l) Internal locus of control
m) equity funds
Difficulty: Medium
Learning Objective 1: 6.3
Section Reference 1: Explain why people choose entrepreneurship as a career path.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
4) _____ helps entrepreneurs work quickly and efficiently, provide attentive customer service, increase sales.
a) Seed capital
b) angel investor
c) venture capitalist
d) debt financing
e) Information technology
f) social entrepreneur
g) classic entrepreneur
h) lifestyle entrepreneur
i) equity financing
j) skunkworks
k) Intrapreneurship
l) Internal locus of control
m) equity funds
Difficulty: Medium
Learning Objective 1: 6.4
Section Reference 1: Discuss the environment for entrepreneurs.
Standard 1: AACSB || Technology
Bloomcode: Knowledge
5) _____ refers to the characteristic of entrepreneurs believing that they control their own destiny.
a) Seed capital
b) angel investor
c) venture capitalist
d) debt financing
e) Information technology
f) social entrepreneur
g) classic entrepreneur
h) lifestyle entrepreneur
i) equity financing
j) skunkworks
k) Intrapreneurship
l) Internal locus of control
m) equity funds
Difficulty: Medium
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
6) _____ is the initial funding used to launch a company.
a) Seed capital
b) angel investor
c) venture capitalist
d) debt financing
e) Information technology
f) social entrepreneur
g) classic entrepreneur
h) lifestyle entrepreneur
i) equity financing
j) skunkworks
k) Intrapreneurship
l) Internal locus of control
m) equity funds
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
7) Loans from banks are a source of _____.
a) Seed capital
b) angel investor
c) venture capitalist
d) debt financing
e) Information technology
f) social entrepreneur
g) classic entrepreneur
h) lifestyle entrepreneur
i) equity financing
j) skunkworks
k) Intrapreneurship
l) Internal locus of control
m) equity funds
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
8) When entrepreneurs use _____, they borrow money from banks, finance companies, credit card companies, and family or friends that must be repaid.
a) Seed capital
b) angel investor
c) venture capitalist
d) debt financing
e) Information technology
f) social entrepreneur
g) classic entrepreneur
h) lifestyle entrepreneur
i) equity financing
j) skunkworks
k) Intrapreneurship
l) Internal locus of control
m) equity funds
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
9) A(n) _____ is a business organization or group of private individuals who invest early-stage, high-potential growth companies.
a) Seed capital
b) angel investor
c) venture capitalist
d) debt financing
e) Information technology
f) social entrepreneur
g) classic entrepreneur
h) lifestyle entrepreneur
i) equity financing
j) skunkworks
k) Intrapreneurship
l) Internal locus of control
m) equity funds
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
10) A(n) _____ is an individual who invests money directly in new ventures in exchange for equity.
a) Seed capital
b) angel investor
c) venture capitalist
d) debt financing
e) Information technology
f) social entrepreneur
g) classic entrepreneur
h) lifestyle entrepreneur
i) equity financing
j) skunkworks
k) Intrapreneurship
l) Internal locus of control
m) equity funds
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
11) Entrepreneurs exchange a share of ownership in their company for money supplied by one or more investors to secure _____.
a) Seed capital
b) angel investor
c) venture capitalist
d) debt financing
e) Information technology
f) social entrepreneur
g) classic entrepreneur
h) lifestyle entrepreneur
i) equity financing
j) skunkworks
k) Intrapreneurship
l) Internal locus of control
m) equity funds
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
12) _____ is the process of promoting innovation within the structure of an existing organization.
a) Seed capital
b) angel investor
c) venture capitalist
d) debt financing
e) Information technology
f) social entrepreneur
g) classic entrepreneur
h) lifestyle entrepreneur
i) equity financing
j) skunkworks
k) Intrapreneurship
l) Internal locus of control
m) equity funds
Difficulty: Medium
Learning Objective 1: 6.7
Section Reference 1: Explain intrapreneurship.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
13) A(n) _____ project is initiated by an employee who conceives an idea, convinces top management of a company of its potential, and then recruits human and other resources from within the company to turn that idea into a commercial project.
a) Seed capital
b) angel investor
c) venture capitalist
d) debt financing
e) Information technology
f) social entrepreneur
g) classic entrepreneur
h) lifestyle entrepreneur
i) equity financing
j) skunkworks
k) Intrapreneurship
l) Internal locus of control
m) equity funds
Difficulty: Medium
Learning Objective 1: 6.7
Section Reference 1: Explain intrapreneurship.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
14) In contrast to a venture capitalist, a(n) _____ focuses primarily on new ventures.
a) Seed capital
b) angel investor
c) venture capitalist
d) debt financing
e) Information technology
f) social entrepreneur
g) classic entrepreneur
h) lifestyle entrepreneur
i) equity financing
j) skunkworks
k) Intrapreneurship
l) Internal locus of control
m) equity funds
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
15) A(n) _____ is typically known to back companies in high-technology industries such as biotechnology.
a) Seed capital
b) angel investor
c) venture capitalist
d) debt financing
e) Information technology
f) social entrepreneur
g) classic entrepreneur
h) lifestyle entrepreneur
i) equity financing
j) skunkworks
k) Intrapreneurship
l) Internal locus of control
m) equity funds
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
16) _____ enables entrepreneurs to take responsibility for their successes or failures.
a) Seed capital
b) angel investor
c) venture capitalist
d) debt financing
e) Information technology
f) social entrepreneur
g) classic entrepreneur
h) lifestyle entrepreneur
i) equity financing
j) skunkworks
k) Intrapreneurship
l) Internal locus of control
m) equity funds
Difficulty: Medium
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
17) A(n) _____ is a form of intrapreneurship.
a) Seed capital
b) angel investor
c) venture capitalist
d) debt financing
e) Information technology
f) social entrepreneur
g) classic entrepreneur
h) lifestyle entrepreneur
i) equity financing
j) skunkworks
k) Intrapreneurship
l) Internal locus of control
m) equity funds
Difficulty: Medium
Learning Objective 1: 6.7
Section Reference 1: Explain intrapreneurship.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
18) Loans from credit card companies are an example of entrepreneurs using _____.
a) Seed capital
b) angel investor
c) venture capitalist
d) debt financing
e) Information technology
f) social entrepreneur
g) classic entrepreneur
h) lifestyle entrepreneur
i) equity financing
j) skunkworks
k) Intrapreneurship
l) Internal locus of control
m) equity funds
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
19) An entrepreneur does not have to repay _____.
a) Seed capital
b) angel investor
c) venture capitalist
d) debt financing
e) Information technology
f) social entrepreneur
g) classic entrepreneur
h) lifestyle entrepreneur
i) equity financing
j) skunkworks
k) Intrapreneurship
l) Internal locus of control
m) equity funds
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
Question type: Essay
20) What is the differences between entrepreneurs and small-business owners and managers? Explain.
Solution: Entrepreneurs seek a profitable opportunity and take the necessary risks to set up and operate a business. Although many small-business owners possess the same drive, creative energy, and desire to succeed, what makes entrepreneurs different is that one of their major goals is expansion and growth. Entrepreneurs are also different from managers. Managers are employed in order to direct the efforts of others to achieve an organization’s goals. Entrepreneurs may also perform a managerial role, but their overriding responsibility is to use the resources of their organizations—employees, money, equipment, and facilities—to accomplish their goals.
Difficulty: Medium
Learning Objective 1: 6.1
Section Reference 1: Define entrepreneur.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
21) Differentiate between classic entrepreneurs, serial entrepreneurs, and social entrepreneurs.
Solution: A classic entrepreneur identifies a business opportunity and allocates available resources to tap into that market. A serial entrepreneur starts one business, runs it, and then starts and runs additional businesses in succession. A social entrepreneur recognizes a societal problem and uses business principles to develop innovative solutions.
Difficulty: Medium
Learning Objective 1: 6.2
Section Reference 1: Identify the different categories of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
22) Founded by Kristin Richmond and Kirsten Tobey, Revolution Foods, is categorized as social entrepreneurship. Do you agree? Why or why not?
Solution: Social entrepreneurship involves recognizing a societal problem and using business principles to develop innovative solutions. Social entrepreneurs are pioneers of innovations that benefit humanity. Kristin Richmond and Kirsten Tobey launched Revolution Foods with the goal to serve healthy meals to American schoolchildren and deliver nutrition education programs through classroom instruction and off-campus, hands-on activities. The aim of this start-up was to empower students to make smarter and healthier eating choices.
Difficulty: Medium
Learning Objective 1: 6.2
Section Reference 1: Identify the different categories of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Application
23) Identify the four motives frequently cited as major reasons why people become entrepreneurs.
Solution: Truehe four main reasons for becoming an entrepreneur include a desire to be one’s own boss, succeed financially, attain job security, and improve the quality of one’s life.
Difficulty: Medium
Learning Objective 1: 6.3
Section Reference 1: Explain why people choose entrepreneurship as a career path.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
24) Discuss lifestyle entrepreneurs.
Solution: A lifestyle entrepreneur is a person who starts a business to gain flexibility in work hours and control over his or her life. But this does not mean working fewer hours or with less intensity. Generally it is the opposite—people who start their own businesses often work longer and harder than ever before, at least in the beginning. But they enjoy the satisfaction of success, both materially and in the way they live their lives.
Difficulty: Medium
Learning Objective 1: 6.3
Section Reference 1: Explain why people choose entrepreneurship as a career path.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
25) Why is Tim Ferriss, best-selling author of the 4-Hour self-help series, considered to be a lifestyle entrepreneur?
Solution: Tim Ferriss is considered to be a lifestyle entrepreneur because he started his business to gain flexibility in work hours and control over his life. He launched a dietary supplement company that not only made him financially independent but also kept him completely occupied. Even when he travelled the world for a year and a half, his company continued to thrive. After returning to work, he found time to author his first book, which advised people to maximize their business results while minimizing the time required to do it. After the success of his book, he sold his company and became a successful author, consultant, and investor in numerous tech start-ups.
Difficulty: Medium
Learning Objective 1: 6.3
Section Reference 1: Explain why people choose entrepreneurship as a career path.
Standard 1: AACSB || Analytic
Bloomcode: Application
26) Identify the four factors that have contributed to the expansion in entrepreneurship.
Solution: Truehe four factors are (1) globalization, (2) education, (3) information technology, and (4) economic and demographic trends.
Difficulty: Medium
Learning Objective 1: 6.4
Section Reference 1: Discuss the environment for entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
27) Explain how social networking has transformed the business environment for entrepreneurs.
Solution: Truehe explosion in information technology (IT) has provided one of the biggest boosts for entrepreneurs. With the merging of business and technology, entrepreneurs have gained tools that help them compete with large companies. Information technology helps entrepreneurs work quickly and efficiently, provide immediate and attentive customer service, and increase sales. In fact, technology has leveled the playing field to the point that, with the use of smart phones and other wireless devices, along with instant web distribution, a dorm-room innovator can compete with a much larger firm. Social networking continues to transform the business environment for entrepreneurs. According to a recent study, more than 90% of successful companies now use at least one social media tool.
Difficulty: Medium
Learning Objective 1: 6.4
Section Reference 1: Discuss the environment for entrepreneurs.
Standard 1: AACSB || Technology
Bloomcode: Comprehension
28) Describe recent demographic and economic trends that create opportunities for entrepreneurs to market new goods and services.
Solution: Recent trends that have created new marketing opportunities include the aging of the U.S. population, increasingly diverse ethnic groups, and the predominance of two-income families. Convenience products for busy parents, ethnic foods that cater to individuals and services designed specifically for older consumers all enjoy opportunities for success.
Difficulty: Medium
Learning Objective 1: 6.4
Section Reference 1: Discuss the environment for entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Application
29) Identify the eight major characteristics of an entrepreneur.
Solution: Truehe eight major characteristics of an entrepreneur are (1) vision, (2) high energy level, (3) need to achieve, (4) self-confidence and optimism, (5) tolerance for failure, (6) creativity, (7) tolerance for ambiguity, and (8) internal locus of control.
Difficulty: Medium
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
30) Which characteristics of an entrepreneur does Mark Cuban, one of the “Shark investors” on the television series, Shark Tank, exemplify and how?
Solution: Mark Cuban exemplifies the self-confidence and optimism attributed to successful entrepreneurs. He failed numerous times before becoming a billionaire. He was fired from many jobs, and at a point in time, even attempted to sell powdered milk. He believes, however, that each failure strengthened him and added to his self-confidence and optimism.
Difficulty: Medium
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Application
31) How does Ralph Braun of BraunAbility exemplify the entrepreneurial characteristic of internal locus of control?
Solution: Ralph Braun was confined to a wheelchair by the age of 14. However, he did not let his disability hinder his education. Even when navigating through his college became difficult for him using his traditional wheelchair, instead of giving up or blaming the college authorities for the infrastructure, he built his first scooter to increase and improve his mobility. He also redesigned the interior of his van and created a wheelchair lift. This eventually led to the finding of BraunAbility, manufacturer of scooters, wheelchair-enabled vans, wheelchair lifts, and other products that aid the wheelchair-bound.
Difficulty: Medium
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Analysis
32) Differentiate between debt financing and equity financing.
Solution: When entrepreneurs use debt financing, they borrow money that they must repay. Loans from banks, finance companies, credit card companies, and family and friends are all sources of debt financing. To secure equity financing, entrepreneurs exchange a share of ownership in their company for money supplied by one or more investors. An entrepreneur does not have to repay equity funds.
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
33) What are the differences between venture capitalists and angel investors?
Solution: Venture capitalists are business organizations or groups of private individuals that invest in early-stage, high-potential growth companies. In exchange for taking a risk with their own funds, these investors expect high rates of return, along with a stake in the company. Angel investors are wealthy individuals who invest money directly in new ventures in exchange for equity. In contrast to venture capitalists, angel investors focus primarily on new ventures.
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
34) Define intrapreneurship. Why is it important today?
Solution: Intrapreneurship is the process of promoting innovation within the structure of an existing organization. Today’s fast-changing business climate compels established firms to innovate continually to maintain their competitive advantages.
Difficulty: Medium
Learning Objective 1: 6.7
Section Reference 1: Explain intrapreneurship.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
35) Explain how CEOs like George Buckley believe that intrapreneurship pays off despite the extra effort required.
Solution: 3M is a firm that has long been known for its innovative products. Coming up with the ideas for these products, developing them, and testing them before bringing them to market takes time and resources. Former 3M CEO George Buckley believes that the only way to do this is to allocate both time and money in support of intrapreneurship. 3M encourages its employees to take risks and pursue their own ideas.
Difficulty: Medium
Learning Objective 1: 6.7
Section Reference 1: Explain intrapreneurship.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
Question type: Multiple Choice
36) Who is an entrepreneur?
a) An entrepreneur is a risk taker in the private enterprise system.
b) An entrepreneur is a gambler in the private enterprise system.
c) An entrepreneur does not tolerate ambiguity.
d) An entrepreneur does not tolerate failures.
Difficulty: Medium
Learning Objective 1: 6.1
Section Reference 1: Define entrepreneur.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
37) Jennifer Hyman, the founder of Rent the Runway, exemplifies the concept of
a) social entrepreneurship.
b) classic entrepreneurship.
c) skunk workers.
d) intrapreneurship.
Difficulty: Medium
Learning Objective 1: 6.1
Section Reference 1: Define entrepreneur.
Standard 1: AACSB || Analytic
Bloomcode: Application
38) Arcadia is opening her own bakery. Arcadia is most likely to be categorized as a(n)
a) manager.
b) entrepreneur.
c) angel broker.
d) venture capitalist.
Difficulty: Medium
Learning Objective 1: 6.1
Section Reference 1: Define entrepreneur.
Standard 1: AACSB || Analytic
Bloomcode: Application
39) A personality trait that differentiates entrepreneurs from managers is
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.
Difficulty: Easy
Learning Objective 1: 6.1
Section Reference 1: Define entrepreneur.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
40) Unlike small-business owners, one of the major goals of entrepreneurs is
a) the desire to succeed.
b) to possess creative energy.
c) expansion and growth.
d) to seek a profitable opportunity.
Difficulty: Easy
Learning Objective 1: 6.1
Section Reference 1: Define entrepreneur.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
41) Cleopatra is an employee at Pegasys Inc., a consulting firm. She uses the resources of the firm to expand and diversify into related fields. Cleopatra is most likely to be classified as a(n)
a) manager.
b) entrepreneur.
c) stock broker.
d) venture capitalist.
Difficulty: Medium
Learning Objective 1: 6.1
Section Reference 1: Define entrepreneur.
Standard 1: AACSB || Analytic
Bloomcode: Application
42) ________ identify business opportunities and allocate available resources to tap those markets.
a) Serial entrepreneurs
b) Classic entrepreneurs
c) Change agents
d) Social entrepreneurs
Difficulty: Easy
Learning Objective 1: 6.2
Section Reference 1: Identify the different categories of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
43) Which of these start one business, run it, and then start and run additional businesses in succession?
a) Serial entrepreneurs
b) Classic entrepreneurs
c) Change agents
d) Social entrepreneurs
Difficulty: Easy
Learning Objective 1: 6.2
Section Reference 1: Identify the different categories of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
44) ________ recognize a societal problem and use business principles to develop innovative solutions.
a) Serial entrepreneurs
b) Classic entrepreneurs
c) Change agents
d) Social entrepreneurs
Difficulty: Easy
Learning Objective 1: 6.2
Section Reference 1: Identify the different categories of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
45) Atif and Sanya come up with an idea for making sugar-free ice cream. They open their own small business to cater to the needs of those who are health conscious. Their products are distributed nationwide and their sales continue to increase. Atif and Sanya are examples of
a) serial entrepreneurs.
b) classic entrepreneurs.
c) change agents.
d) social entrepreneurs.
Difficulty: Medium
Learning Objective 1: 6.2
Section Reference 1: Identify the different categories of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Application
46) Serial entrepreneurship involves
a) launching and running a business, and then starting and running additional businesses in succession.
b) recognizing societal problems and using business principles to develop innovative solutions.
c) starting a new company by identifying a business opportunity and allocating resources to tap a new market.
d) conceiving an idea, convincing top management of the idea’s potential, and then recruiting human and other resources from within the company to turn the idea into a commercial project.
Difficulty: Medium
Learning Objective 1: 6.2
Section Reference 1: Identify the different categories of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
47) After starting a web design company while still in college, Alejandro 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. Alejandro is an example of a(n)
a) serial entrepreneur.
b) social entrepreneur.
c) lifestyle entrepreneur.
d) classic entrepreneur.
Difficulty: Medium
Learning Objective 1: 6.2
Section Reference 1: Identify the different categories of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Application
48) Which of these focus on solving society’s challenges through their businesses?
a) Classic entrepreneurs
b) Change agents
c) Atypical entrepreneurs
d) Social entrepreneurs
Difficulty: Easy
Learning Objective 1: 6.2
Section Reference 1: Identify the different categories of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
49) Agatha is the CEO of a not-for-profit organization. She runs the organization to provide quality education for the underprivileged children. Agatha is most likely to be categorized as a
a) serial entrepreneur.
b) social entrepreneur.
c) lifestyle entrepreneur.
d) classic entrepreneur.
Difficulty: Medium
Learning Objective 1: 6.2
Section Reference 1: Identify the different categories of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Application
50) Which of the following is NOT one of the primary reasons why people become entrepreneurs?
a) To be one’s own boss
b) To achieve financial success
c) To avoid taking risks
d) To create one’s own job security
Difficulty: Medium
Learning Objective 1: 6.3
Section Reference 1: Explain why people choose entrepreneurship as a career path.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
51) Financial success
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.
Difficulty: Medium
Learning Objective 1: 6.3
Section Reference 1: Explain why people choose entrepreneurship as a career path.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
52) Riya works for a large bank that recently merged with another financial institution. Word of layoffs has been discussed. Riya is most likely to become an entrepreneur in order to
a) avoid taking risks.
b) obtain job security.
c) have employment as a cushion for failures.
d) guarantee financial success.
Difficulty: Medium
Learning Objective 1: 6.3
Section Reference 1: Explain why people choose entrepreneurship as a career path.
Standard 1: AACSB || Analytic
Bloomcode: Application
53) Daphne is a single mother who is required to work evenings and weekends at a local retail store. She is thinking of starting a consulting business primarily so she can
a) have guaranteed job security.
b) avoid taking risks.
c) have guaranteed financial success.
d) enjoy a higher quality of life.
Difficulty: Medium
Learning Objective 1: 6.3
Section Reference 1: Explain why people choose entrepreneurship as a career path.
Standard 1: AACSB || Analytic
Bloomcode: Application
54) Which of these is TRUE about successful entrepreneurs?
a) They believe they will achieve their greatest success by working for others.
b) They have a very low tolerance for failure.
c) They are often likely to have had parents who were entrepreneurs.
d) They fit into one specific job title, career path, or industry.
Difficulty: Medium
Learning Objective 1: 6.3
Section Reference 1: Explain why people choose entrepreneurship as a career path.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
55) All of the following are identified as responsibilities of entrepreneurs EXCEPT
a) upsizing their organizations in response to declining revenues.
b) formulating policies.
c) managing finances, human resources, and materials.
d) problem solving.
Difficulty: Medium
Learning Objective 1: 6.3
Section Reference 1: Explain why people choose entrepreneurship as a career path.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
56) Tim Ferriss, best-selling author of the 4-Hour self-help series, is considered by many to be a(n)
a) lifestyle entrepreneur
b) serial entrepreneur
c) social entrepreneur
d) intrapreneur
Difficulty: Medium
Learning Objective 1: 6.3
Section Reference 1: Explain why people choose entrepreneurship as a career path.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
57) A(n) ______ is a person who starts a business to gain flexibility in work hours and control over his or her life.
a) lifestyle entrepreneur
b) serial entrepreneur
c) social entrepreneur
d) intrapreneur
Difficulty: Medium
Learning Objective 1: 6.3
Section Reference 1: Explain why people choose entrepreneurship as a career path.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
58) _____ of the fastest-growing small companies in the United States have international sales.
a) Two of every five
b) Three of every five
c) Four of every five
d) Five of every six
Difficulty: Easy
Learning Objective 1: 6.4
Section Reference 1: Discuss the environment for entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
59) Which of the following statements about globalization and entrepreneurship is correct?
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.
Difficulty: Medium
Learning Objective 1: 6.4
Section Reference 1: Discuss the environment for entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
60) ______ is an example of an innovation-driven economy.
a) India
b) Nigeria
c) Italy
d) Mexico
Difficulty: Medium
Learning Objective 1: 6.4
Section Reference 1: Discuss the environment for entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
61) Which of the following has contributed the LEAST to the boom in entrepreneurship?
a) Information technology
b) Demographic and economic trends
c) Education
d) Economies driven by innovation
Difficulty: Medium
Learning Objective 1: 6.4
Section Reference 1: Discuss the environment for entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
62) Which of these statement is NOT correct concerning education and entrepreneurs?
a) Today, many U.S. universities offer full-fledged majors in entrepreneurship.
b) A number of schools offer opportunities to intern with a start-up.
c) One needs to have an entrepreneurship major in order to launch a start-up.
d) Highly motivated self-starters are often found in an entrepreneurship major.
Difficulty: Medium
Learning Objective 1: 6.4
Section Reference 1: Discuss the environment for entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
63) Studies suggest that more than _____percent of successful companies now use at least one social media tool.
a) 30
b) 10
c) 60
d) 90
Difficulty: Medium
Learning Objective 1: 6.4
Section Reference 1: Discuss the environment for entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
64) Information technology can help entrepreneurs in all of the following ways EXCEPT
a) provide improved customer service.
b) guarantee financial success.
c) work quickly and efficiently.
d) increase sales.
Difficulty: Medium
Learning Objective 1: 6.4
Section Reference 1: Discuss the environment for entrepreneurs.
Standard 1: AACSB || Technology
Bloomcode: Comprehension
65) Which of the following demographic/economic trends has increased the opportunities for entrepreneurs?
a) Stagnating wages
b) Steady interest rates
c) Aging population
d) Increase in wages
Difficulty: Easy
Learning Objective 1: 6.4
Section Reference 1: Discuss the environment for entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
66) Which of these refers to an overall idea for how to convert a business idea into a success?
a) Creativity
b) Internal locus of control
c) Vision
d) Tolerance for ambiguity
Difficulty: Easy
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
67) ______ is LEAST likely to become an entrepreneur.
a) A person with tolerance for ambiguity
b) A person with internal locus of control
c) A person with a competitive drive
d) A person with low energy level
Difficulty: Easy
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
68) Studies indicate that most entrepreneurs spend _____ on their new business.
a) less than 30 hours a week
b) about 40 hours a week
c) at least 70 hours a week
d) weekends only
Difficulty: Easy
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
69) Which of the following individual is most likely to succeed as an entrepreneur?
a) Marcel who cannot tolerate failures
b) Philip who has an aversion for taking risks
c) Fiona who blames others for her failures
d) Gina who is driven by the need to excel
Difficulty: Medium
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Application
70) Entrepreneurs possess all of the following traits EXCEPT
a) tolerance for ambiguity.
b) creativity.
c) low self-confidence.
d) vision.
Difficulty: Easy
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
71) All of the following are important characteristics of entrepreneurs EXCEPT
a) tolerance for failure.
b) internal locus of control.
c) creativity.
d) dependence on others.
Difficulty: Easy
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
72) Netflix continues to offer DVDs by mail to nearly five million U.S. subscribers in addition to its streaming services because of its
a) tolerance for failure.
b) internal locus of control.
c) creativity.
d) tolerance for ambiguity.
Difficulty: Easy
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
73) When Sarah, as an entrepreneur, continues to work on an idea in spite of physical or technical hindrances and succeeds in turning that idea into reality, she is exemplifying the entrepreneurial characteristic
a) vision.
b) internal locus of control.
c) creativity.
d) tolerance for ambiguity.
Difficulty: Medium
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Application
74) Valerie wants to start a business. She takes a personality test and discovers she possesses a trait that may reduce the likelihood of her success. Which of the following is that trait?
a) Creativity
b) Low tolerance for ambiguity
c) Vision
d) Internal locus of control
Difficulty: Medium
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Application
75) Rodrigues routinely bids on contracts even though most of the other bidders are extremely large firms. Rodrigues believes his company offers better service at lower prices. Which of the following personality traits, common in entrepreneurs, does Rodrigues exhibit?
a) Creativity
b) Tolerance for failure
c) High energy level
d) Self-confidence
Difficulty: Medium
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Application
76) Which of the following statements best describes how entrepreneurs view failure?
a) They enjoy risk and gambling.
b) They are easily discouraged when things don’t go as planned.
c) They view failure as a learning experience.
d) They worry that if they fail they’ll never get another opportunity.
Difficulty: Medium
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
77) Kassandra is a successful entrepreneur. She stays close to her customers and is constantly looking for effective strategies. She is also willing to make adjustments when necessary. Kassandra is demonstrating
a) internal locus of control.
b) creativity.
c) vision.
d) tolerance for ambiguity.
Difficulty: Medium
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Application
78) Felipe is an entrepreneur who takes personal responsibility for the success or failure of his actions rather than believing in luck or fate. Which characteristic best describes Felipe’s entrepreneurial philosophy?
a) Internal locus of control
b) Need to achieve
c) Tolerance for failure
d) Tolerance for ambiguity
Difficulty: Medium
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Application
79) Which of the following is one of the most important considerations in selecting a business idea?
a) Making sure no company is currently offering the product/service
b) Ensuring that the idea solely appeals to a niche market
c) Finding something one loves to do and is good at doing
d) Choosing a product/service that is inexpensive to sell
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
80) All of the following are major advantages of buying an existing business over starting a new business EXCEPT
a) obtaining financing is often easier.
b) less risk is involved.
c) product or service is not known in the marketplace.
d) existing suppliers and employees are in place.
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
81) The business start-up PK Clean, launched by Priyanka Bakaya in Salt Lake, Utah, can be identified as an example of
a) intrapreneurship.
b) skunkworks.
c) social entrepreneurship.
d) serial entrepreneurship.
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Analysis
82) Natsuki is opening a home health care business that she knows will do well in her community. She makes this assumption based on prior research. Although she must repay borrowed funds, Natsuki chooses _____ to maintain complete control over the business without having to answer to investors or partners.
a) debt financing
b) funding from venture capitalists
c) funding from angel investors
d) equity financing
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Application
83) Identify a recommendation, in the context of financing, made by the Small Business Administration (SBA) to entrepreneurs.
a) Finding less expensive credit
b) Charging business expenses to personal credit cards
c) Establishing a business credit history
d) Showing a profit on rising revenues
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
84) Cheng is in the process of using debt financing to fund his new venture. In this case, he is most likely to
a) borrow loans from banks.
b) obtain funding from venture capitalists.
c) secure funding from angel investors.
d) exchange a share of ownership in his company for money.
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Application
85) Aliya 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
a) equity financing.
b) debt financing.
c) social venture capital funding.
d) focused funding.
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Application
86) Abbas wants to start a new business, but his bank will not lend him the money he needs. Abbas saw an advertisement sponsored by a business organization that provides financing for early-stage, high-potential growth companies. The organization sponsoring the advertisement would be considered a(n)
a) franchisor.
b) franchisee.
c) mortgage lender.
d) venture capitalist.
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Application
87) Which of these are business organizations or groups of private individuals who invest in early-stage, high-potential growth companies?
a) Angel investors
b) Share brokers
c) Intrapreneurs
d) Venture capitalists
Difficulty: Easy
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
88) Denzel 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. Denzel is
a) franchisor.
b) stock broker.
c) angel investor.
d) franchisee.
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Application
89) Aaliyah is trying to start a new business. A women’s business network puts her in touch with a wealthy investor who is willing to invest in her company in exchange for an equity stake. This investor is most likely to be a(n)
a) angel investor.
b) franchisor.
c) stock broker.
d) mortgage lender.
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
90) Which of the following are specific geographic areas designated for economic revitalization?
a) Economic stimulus zones
b) Enterprise zones
c) Commerce areas
d) Investor zones
Difficulty: Easy
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
91) A(n) _____ is another form of intrapreneurship initiated by an employee who conceives an idea, convinces top management of its potential, and then recruits human and other resources from within the company to turn that idea into a commercial project.
a) wealth creation
b) angel investor
c) skunkworks
d) debenture
Difficulty: Easy
Learning Objective 1: 6.7
Section Reference 1: Explain intrapreneurship.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
92) Abigail works as an artist for a major textile company and created an instrument for producing designs. The company will implement Abigail’s idea as part of its _____ strategy.
a) skunkworks
b) angel investment
c) seed capital
d) entrepreneurship
Difficulty: Medium
Learning Objective 1: 6.7
Section Reference 1: Explain intrapreneurship.
Standard 1: AACSB || Analytic
Bloomcode: Application
93) Which of the following instances best represents a skunkworks project?
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.
Difficulty: Medium
Learning Objective 1: 6.7
Section Reference 1: Explain intrapreneurship.
Standard 1: AACSB || Analytic
Bloomcode: Application
94) A(n) _____ is an event where computer programmers and software developers intensively collaborate on new developments.
a) crowdfunding platform
b) enterprise zone
c) skunkworks
d) hackathon
Difficulty: Easy
Learning Objective 1: 6.7
Section Reference 1: Explain intrapreneurship.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
95) Former CEO George Buckley believes that the key to supporting intrapreneurship is the willingness to
a) categorize targeted employment area
b) allocate time and money
c) appoint dedicated personnel
d) pursue a degree in business management
Difficulty: Medium
Learning Objective 1: 6.7
Section Reference 1: Explain intrapreneurship
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
Question type: True/False
96) Entrepreneurs take necessary risks to set up and operate a business.
Difficulty: Easy
Learning Objective 1: 6.1
Section Reference 1: Define entrepreneur.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
97) By definition, owning a business, means that you are an entrepreneur.
Difficulty: Easy
Learning Objective 1: 6.1
Section Reference 1: Define entrepreneur.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
98) Entrepreneurs may also perform a managerial role, but their overriding responsibility is to use the resources of their organizations to accomplish their goals.
Difficulty: Easy
Learning Objective 1: 6.1
Section Reference 1: Define entrepreneur.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
99) According to research, the personality traits common to entrepreneurs are very similar to those required for managerial success.
Difficulty: Medium
Learning Objective 1: 6.1
Section Reference 1: Define entrepreneur.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
100) Classic entrepreneurs start one business, run it, and then start and run additional businesses in succession.
Difficulty: Easy
Learning Objective 1: 6.2
Section Reference 1: Identify the different categories of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
101) A classic entrepreneur starts a new company by identifying a business opportunity and allocating resources to tap a new market; serial entrepreneurs start one business, run it, and then start and run additional businesses in succession.
Difficulty: Medium
Learning Objective 1: 6.2
Section Reference 1: Identify the different categories of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
102) Social entrepreneurs recognize a societal problem and use business principles to develop innovative solutions.
Difficulty: Easy
Learning Objective 1: 6.2
Section Reference 1: Identify the different categories of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
103) Classic entrepreneurs are pioneers of innovations that benefit humanity.
Difficulty: Easy
Learning Objective 1: 6.2
Section Reference 1: Identify the different categories of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
104) Elon Musk, founder of PayPal, and CEO of Tesla Motors, Solar City, and SpaceX, is a serial entrepreneur.
Difficulty: Easy
Learning Objective 1: 6.2
Section Reference 1: Identify the different categories of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
105) Jose began a furniture company and ran it for five years. Afterward, he started another company for selling home appliances, and then an interior designing company. Jose is a social entrepreneur.
Difficulty: Medium
Learning Objective 1: 6.2
Section Reference 1: Identify the different categories of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Application
106) Social entrepreneurs recognize a societal problem and use business principles to develop innovative solutions.
Difficulty: Easy
Learning Objective 1: 6.2
Section Reference 1: Identify the different categories of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
107) Overseas, workers have yet to discover the benefits of entrepreneurship compared to employment by big firms.
Difficulty: Easy
Learning Objective 1: 6.3
Section Reference 1: Explain why people choose entrepreneurship as a career path.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
108) One of the main drives for those who choose to become entrepreneurs is the desire to work fewer hours.
Difficulty: Easy
Learning Objective 1: 6.3
Section Reference 1: Explain why people choose entrepreneurship as a career path.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
109) Entrepreneurs enjoy guaranteed job security because no one can fire them.
Difficulty: Medium
Learning Objective 1: 6.3
Section Reference 1: Explain why people choose entrepreneurship as a career path.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
110) Lilly started her own business because she was tired of worrying about corporate downsizing despite her highly positive annual reviews. This is a common motivation for becoming an entrepreneur.
Difficulty: Medium
Learning Objective 1: 6.3
Section Reference 1: Explain why people choose entrepreneurship as a career path.
Standard 1: AACSB || Analytic
Bloomcode: Application
111) A person who starts a business to gain flexibility in work hours and control over his or her life is a lifestyle entrepreneur.
Difficulty: Easy
Learning Objective 1: 6.3
Section Reference 1: Explain why people choose entrepreneurship as a career path.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
112) A serial entrepreneur is a person who starts a business to gain flexibility in work hours and control over his or her life.
Difficulty: Easy
Learning Objective 1: 6.3
Section Reference 1: Explain why people choose entrepreneurship as a career path.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
113) A motivation for becoming an entrepreneur is the desire for improved quality of life.
Difficulty: Easy
Learning Objective 1: 6.3
Section Reference 1: Explain why people choose entrepreneurship as a career path.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
114) Overall, in the United States the current outlook for becoming an entrepreneur is positive.
Difficulty: Easy
Learning Objective 1: 6.4
Section Reference 1: Discuss the environment for entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
115) Growth in entrepreneurship is a worldwide phenomenon.
Difficulty: Easy
Learning Objective 1: 6.4
Section Reference 1: Discuss the environment for entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
116) Countries whose economies are driven by innovation, like Italy and Japan, have lower established business ownership rates.
Difficulty: Medium
Learning Objective 1: 6.4
Section Reference 1: Discuss the environment for entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
117) Many U.S. universities offer programs in entrepreneurship.
Difficulty: Easy
Learning Objective 1: 6.4
Section Reference 1: Discuss the environment for entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
118) Unfortunately, most entrepreneurs are skeptical of using social media to promote their businesses.
Difficulty: Medium
Learning Objective 1: 6.4
Section Reference 1: Discuss the environment for entrepreneurs.
Standard 1: AACSB || Technology
Bloomcode: Knowledge
119) According to research, the aging of the U.S. population has made it more difficult for entrepreneurs to find opportunities.
Difficulty: Easy
Learning Objective 1: 6.4
Section Reference 1: Discuss the environment for entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
120) Today, there are fewer two-income households, making it more difficult for people to pursue entrepreneurship.
Difficulty: Easy
Learning Objective 1: 6.4
Section Reference 1: Discuss the environment for entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
121) Entrepreneurs generally begin with a vision.
Difficulty: Easy
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
122) Entrepreneurs, generally, do not have a high energy level.
Difficulty: Easy
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
123) Entrepreneurs, as a rule, believe in their ability to succeed.
Difficulty: Easy
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
124) Entrepreneurs are often easily discouraged by setbacks and failures.
Difficulty: Easy
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
125) Truly successful entrepreneurs take responsibility for their mistakes.
Difficulty: Easy
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
126) Dealing with unexpected events is the norm for most entrepreneurs.
Difficulty: Easy
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
127) Gambling is comparable to entrepreneurship.
Difficulty: Medium
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
128) The personal belief that one controls his or her own destiny refers to the internal locus of control.
Difficulty: Easy
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
129) Entrepreneurs have an external locus of control, which means they believe that they control their own destinies.
Difficulty: Medium
Learning Objective 1: 6.5
Section Reference 1: Identify the characteristics of entrepreneurs.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
130) Obtaining financing for an existing business is easier than it is for most start-up companies.
Difficulty: Easy
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
131) A less risky way to begin a business than starting an entirely new firm is buying a franchise.
Difficulty: Easy
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
132) Most entrepreneurs, in the past, started their ventures without creating formal business plans.
Difficulty: Easy
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
133) The Small Business Administration (SBA) recommends avoiding the use of personal credit cards for business expenses.
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
134) Unfortunately, banks cannot research an entrepreneur’s personal credit history when making lending decisions.
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
135) Equity financing may benefit an entrepreneur who possesses good ideas and skills, but has little or no money.
Difficulty: Medium
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
136) Venture capitalists take an equity stake in businesses in which they invest their funds.
Difficulty: Easy
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
137) Entrepreneurs must repay the money sourced through angel investors.
Difficulty: Easy
Learning Objective 1: 6.6
Section Reference 1: Summarize the process of starting a new venture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
Document Information
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Contemporary Business 18e | Test Bank by Louis E. Boone
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