Question 1

A prospective entrepreneur wants to find a career doing what she enjoys most-designing and selling clothing. She might be drawn to try an entrepreneurial venture in order to realize

Accepted Answer

A)   enjoy satisfying work.
B)   substantial long-term profits.
C)   freedom from control of a managerial hierarchy.
D)   a sense of self-esteem as a result of building her own business.E) B) and C)
F) None of the above

Question 2

Small businesses that have great prospects for growth are called ____.

Accepted Answer

A)   gorillas
B)   antelopes
C)   jaguars
D)   gazellesE) A) and D)
F) A) and C)

Question 3

New product innovation seldom comes from the world of small business because the large corporations spend large amounts on R&D (research and development).

Accepted Answer

A) True 
 B)False

Question 4

Microbusinesses are sometimes referred to as lifestyle businesses.

Accepted Answer

A) True 
 B)False

Question 5

Compared to their larger competitors, small firms may be better positioned to provide good customer service because they

Accepted Answer

A)   do not struggle as much with bureaucracy.
B)   tend to have established corporate policies that emphasize a customer focus.
C)   have a narrow range of products or services to offer.
D)   refuse to be distracted by other developments in the industry.E) A) and B)
F) A) and C)

Question 6

One drawback of entrepreneurship is the

Accepted Answer

A)   routine and boring work.
B)   requirement that the business pay a minimum wage.
C)   need to participate in civic activities.
D)   risk of business failure.E) B) and D)
F) A) and D) D

Question 7

Entrepreneurs often produce innovations related to

Accepted Answer

A)   multiple patents.
B)   developing others' ideas.
C)   competitive intelligence.
D)   market identification.E) C) and D)
F) A) and D)

Question 8

Opportunistic entrepreneurs exhibit which one of the following traits:

Accepted Answer

A)   paternalistic.
B)   reluctant to delegate authority.
C)   sales efforts are primarily personal.
D)   plan for future growth.E) B) and C)
F) A) and D)

Question 9

Individuals are typically pulled toward entrepreneurship by the hope of obtaining

Accepted Answer

A)   an easy life.
B)   financial rewards.
C)   freedom from long hours.
D)   job security.E) None of the above
F) A) and C)

Question 10

Most entrepreneurs have an external locus of control.

Accepted Answer

A) True 
 B)False

Question 11

Although Life is Good owners John and Bert Jacobs' line of merchandise is related to leisure pursuits, they cannot partake of them because of the constraints of their fast-growing business.

Accepted Answer

A) True 
 B)False

Question 12

A person who starts a business is classified as a

Accepted Answer

A)   founder.
B)   general manager.
C)   franchisee.
D)   marginal-firm manager.E) All of the above
F) B) and C)

Question 13

Valerie Weatherspoon has been described as a "free spirit." She has tolerated but seldom appreciated parental, academic, or even job authority. The factor most likely to lure her to entrepreneurship is

Accepted Answer

A)   profit opportunities.
B)   freedom to operate independently.
C)   enjoyment of doing what she likes to do.
D)   satisfaction in serving the community through the business.E) B) and C)
F) A) and B)

Question 14

An entrepreneurial career can provide an exciting life and substantial personal rewards while also contributing to the welfare of society.

Accepted Answer

A) True 
 B)False  True

Question 15

Approximately what percent of private gross national product is generated by small businesses?

Accepted Answer

A)   25
B)   73
C)   50
D)   87E) A) and D)
F) B) and C) C

Question 16

One survey found that 91 percent of small business owners give back to their communities each year through volunteering, in-kind contributions and/or direct cash donations.

Accepted Answer

A) True 
 B)False

Question 17

As entrepreneurs, Millenials have been described as follows except:

Accepted Answer

A)   have no fear regarding technology.
B)   are concerned only with becoming wealthy as quickly as possible.
C)   frequently build elements of community into their business.
D)   are far more collaborative than their predecessors.E) A) and B)
F) None of the above

Question 18

We would expect an opportunistic entrepreneur to be

Accepted Answer

A)   paternalistic.
B)   reluctant to delegate authority.
C)   unwilling to plan for future growth.
D)   well educated in non-technical matters.E) A) and B)
F) B) and D)

Question 19

A professor of entrepreneurship is trying to identify students who are the best prospects for entrepreneurial careers. Based on prior research and especially the work of J. B. Rotter, she is looking for students having a

Accepted Answer

A)   high external locus of control.
B)   low external locus of control.
C)   high internal locus of control.
D)   low internal locus of control.E) B) and C)
F) A) and D)

Question 20

Sally Forthright, a single mother, opened a florist shop to support her family after losing her job in a corporate layoff. She is _____.

Accepted Answer

A)   a woman without a portfolio
B)   a parental refugee
C)   a reluctant entrepreneur
D)   an independent refugeeE) None of the above
F) A) and B)

Exam 1: The Entrepreneurial Life

A prospective entrepreneur wants to find a career doing what she enjoys most-designing and selling clothing. She might be drawn to try an entrepreneurial venture in order to realize

Correct AnswerverifiedShow Answer

Small businesses that have great prospects for growth are called ____.

Correct AnswerverifiedShow Answer

New product innovation seldom comes from the world of small business because the large corporations spend large amounts on R&D (research and development).

Correct AnswerverifiedShow Answer

Microbusinesses are sometimes referred to as lifestyle businesses.

Correct AnswerverifiedShow Answer

Compared to their larger competitors, small firms may be better positioned to provide good customer service because they

Correct AnswerverifiedShow Answer

One drawback of entrepreneurship is the

Correct AnswerverifiedD

Entrepreneurs often produce innovations related to

Correct AnswerverifiedShow Answer

Opportunistic entrepreneurs exhibit which one of the following traits:

Correct AnswerverifiedShow Answer

Individuals are typically pulled toward entrepreneurship by the hope of obtaining

Correct AnswerverifiedShow Answer

Most entrepreneurs have an external locus of control.

Correct AnswerverifiedShow Answer

Although Life is Good owners John and Bert Jacobs' line of merchandise is related to leisure pursuits, they cannot partake of them because of the constraints of their fast-growing business.

Correct AnswerverifiedShow Answer

A person who starts a business is classified as a

Correct AnswerverifiedShow Answer

Valerie Weatherspoon has been described as a "free spirit." She has tolerated but seldom appreciated parental, academic, or even job authority. The factor most likely to lure her to entrepreneurship is

Correct AnswerverifiedShow Answer

An entrepreneurial career can provide an exciting life and substantial personal rewards while also contributing to the welfare of society.

Correct AnswerverifiedTrue

Approximately what percent of private gross national product is generated by small businesses?

Correct AnswerverifiedC

One survey found that 91 percent of small business owners give back to their communities each year through volunteering, in-kind contributions and/or direct cash donations.

Correct AnswerverifiedShow Answer

As entrepreneurs, Millenials have been described as follows except:

Correct AnswerverifiedShow Answer

We would expect an opportunistic entrepreneur to be

Correct AnswerverifiedShow Answer

A professor of entrepreneurship is trying to identify students who are the best prospects for entrepreneurial careers. Based on prior research and especially the work of J. B. Rotter, she is looking for students having a

Correct AnswerverifiedShow Answer

Sally Forthright, a single mother, opened a florist shop to support her family after losing her job in a corporate layoff. She is _____.

Correct AnswerverifiedShow Answer

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D

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