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ENTREPRENEURSHIP 2017 - Quiz Answer : Entrepreneurship and Effective Small Business Management, 11e (Scarborough) - Chapter 1

Entrepreneurship and Start Up

ENTREPRENEURSHIP 2017 - Quiz Answer and Case Study Guides

Entrepreneurship and Effective Small Business Management, 11e (Scarborough)

 

 

Entrepreneurship and Effective Small Business Management, 11e (Scarborough)

Chapter 1   Entrepreneurs: The Driving Force Behind Small Business

 

1) The nation is rapidly moving from:

  1. A) industrial to capitalism.
  2. B) capitalism to industrial.
  3. C) industrial to knowledge-based.
  4. D) None of the above

Answer:  C

Page Ref: 4

Topic:  Introduction

AACSB:  Communication

 

2) Which of the following corporate trends have contributed to the growth of entrepreneurship?

  1. A) The acquisition and merging of mega corporations
  2. B) The idea that "small is beautiful" in large companies, resulting in less hierarchy and layers of management
  3. C) The flood of venture capital being made available to small businesses
  4. D) The downturn in international markets forcing a focus on the domestic market

Answer:  B

Page Ref: 3

Topic:  Introduction

AACSB:  Communication

 

3) The following is true regarding entrepreneurial education:

  1. A) entrepreneurship has become an extremely popular course.
  2. B) universities are not able to meet the demand for courses in entrepreneurship.
  3. C) more courses are being offered in entrepreneurship.
  4. D) All of the above

Answer:  D

Page Ref: 17

Topic:  Why the Boom: The Fuel Feeding the Entrepreneurial Fire

AACSB:  Communication

 

4) Researchers who study entrepreneurs have discovered that:

  1. A) successful entrepreneurs start with an idea, resources, and a small management team.
  2. B) there is one key set of traits that mark a successful entrepreneur.
  3. C) entrepreneurs desire responsibility and are willing to take moderate risks.
  4. D) the most successful entrepreneurs are willing to take extreme risks and bet the farm in order to succeed.

Answer:  C

Page Ref: 5

Topic:  What is an Entrepreneur?

AACSB:  Multicultural and Diversity

 

5) Dirk wants to be in control. He's tired of taking orders from others and wants to feel a sense of accountability for the outcome of his work. Dirk displays the entrepreneurial characteristic of:

  1. A) the desire for immediate feedback.
  2. B) a desire for responsibility.
  3. C) confidence in his ability to succeed.
  4. D) a high energy level.

Answer:  A

Page Ref: 7

Topic:  What is an Entrepreneur?

AACSB:  Analytic Skills

 

6) Entrepreneurs seem to be characterized by:

  1. A) a desire for money.
  2. B) an inability to organize but strong conceptual skills.
  3. C) a desire to work alone because of weak management skills and a need for control.
  4. D) a high energy level.

Answer:  D

Page Ref: 7

Topic:  What is an Entrepreneur?

AACSB:  Reflective Thinking

 

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

  1. A) The willingness to take extreme risks
  2. B) A desire for immediate feedback
  3. C) A tolerance for ambiguity
  4. D) A future orientation

Answer:  C

Page Ref: 8

Topic:  What is an Entrepreneur?

AACSB:  Analytic Skills

 

8) Entrepreneurs start businesses for a number of reasons including:

  1. A) an opportunity to make a difference.
  2. B) having to deal with less government regulation than as an executive of a large company.
  3. C) a much lower risk of career failure due to layoff or acquisition than working for a large company.
  4. D) the opportunity to get rich much quicker than if they work for a large company.

Answer:  A

Page Ref: 13

Topic:  The Benefits of Owning a Small Business

AACSB:  Reflective Thinking

 

 

9) Surveys show that owners of small businesses believe that:

  1. A) they work harder on their own than if they worked for someone else.
  2. B) they earn less than if they worked for someone else.
  3. C) they are less satisfied than if they worked for someone else.
  4. D) venture capital is relatively easy to raise.

Answer:  A

Page Ref: 15

Topic:  The Benefits of Owning a Small Business

AACSB:  Communication

10) A significant benefit of starting your own company is:

  1. A) more leisure time because there is less of a need to punch a time clock.
  2. B) contributing to society and being recognized for your efforts.
  3. C) to be able to choose who you work with or don't work with.
  4. D) more job security than working for a large corporation.

Answer:  B

Page Ref: 14

Topic:  The Benefits of Owning a Small Business

AACSB:  Communication

 

11) Kyoto has started an interior decoration business. Everything about the business, from its name to the color schemes used in the corporate letterhead, is an expression of her personality. She sees this business as her greatest personal achievement. Kyoto is experiencing the opportunity ________ of small business ownership.

  1. A) to reap unlimited profits
  2. B) to contribute to society
  3. C) to make a difference
  4. D) to reach her full potential

Answer:  D

Page Ref: 14

Topic:  The Benefits of Owning a Small Business

AACSB:  Analytic Skills

 

12) Mary and Ted are discussing starting a new business and are asking themselves a series of questions like; "What is the worst that could happen if we fail?" "How likely is that to happen?" They are assessing which potential drawback of small business ownership?

  1. A) The long hours and hard work involved
  2. B) The risk of losing their entire investment
  3. C) The lower quality of life they'll experience
  4. D) The uncertainty of their income

Answer:  B

Page Ref: 15

Topic:  The Potential Drawbacks of Entrepreneurship

AACSB:  Analytic Skills

 

 

13) Potential drawbacks of small business ownership include:

  1. A) a relatively low guaranteed income.
  2. B) a significantly freer personal schedule but less personal income and assets with which to enjoy the more relaxed schedule.
  3. C) a high likelihood of a lower quality of life while starting and establishing the small business.
  4. D) relatively limited potential for further personal development.

Answer:  C

Page Ref: 16

Topic:  The Potential Drawbacks of Entrepreneurship

AACSB:  Communication

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

  1. A) villain
  2. B) hero
  3. C) profiteer
  4. D) shirker

Answer:  B

Page Ref: 17

Topic:  Why the Boom: The Fuel Feeding the Entrepreneurial Fire

AACSB:  Reflective Thinking

 

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

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

Answer:  C

Page Ref: 17

Topic:  Why the Boom: The Fuel Feeding the Entrepreneurial Fire

AACSB:  Reflective Thinking

 

16) The growth of entrepreneurship is being fed by:

  1. A) the return to a manufacturing-based economy.
  2. B) technological advancements.
  3. C) diminished opportunities in overseas markets for larger corporations.
  4. D) the vilifying of large corporations in society.

Answer:  B

Page Ref: 17

Topic:  Why the Boom: The Fuel Feeding the Entrepreneurial Fire

AACSB:  Communication

 

 

17) The international market:

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

Answer:  A

Page Ref: 19

Topic:  Why the Boom: The Fuel Feeding the Entrepreneurial Fire

AACSB:  Multicultural and Diversity

 

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

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

Answer:  C

Page Ref: 22

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Multicultural and Diversity

19) Minorities cite which of the following as the primary barrier to their entrepreneurship?

  1. A) Skepticism
  2. B) Access to capital
  3. C) Discrimination
  4. D) Social pressure

Answer:  C

Page Ref: 22

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Multicultural and Diversity

 

20) Most of today's immigrant entrepreneurs come into the U.S. with:

  1. A) significant educational and financial resources.
  2. B) few skills, little education, and no financial resources.
  3. C) few assets but lots of dedication and desire.
  4. D) little education but significant financial backing from their families in their home countries.

Answer:  C

Page Ref: 23

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Multicultural and Diversity

 

 

21) Part-time entrepreneurship has an additional advantage over starting up a company full-time in that:

  1. A) it is a much lower risk for the entrepreneur.
  2. B) it doesn't require a business plan.
  3. C) the entrepreneur can change products and markets more easily.
  4. D) the entrepreneur doesn't need to know the industry as well.

Answer:  A

Page Ref: 24

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Communication

 

22) Which of the following is true about home-based businesses?

  1. A) Over 2/3 of all home-based businesses are owned by minority males.
  2. B) Home-based businesses tend to focus on blue-collar, lower skill industries.
  3. C) The growth of technology has significantly slowed the growth of home-based businesses.
  4. D) The success rate is nearly 70 percent for at least three years.

Answer:  D

Page Ref: 24

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Communication

 

23) ________ percent of all small businesses are home based.

  1. A) 53
  2. B) 20
  3. C) 70
  4. D) 80

Answer:  A

Page Ref: 24

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Communication

24) The transformation of ordinary homes into ________ is driving the growth of home-based businesses.

  1. A) "outsourcing hubs"
  2. B) "electronic cottages"
  3. C) "personal work zones"
  4. D) "serenity spaces"

Answer:  B

Page Ref: 24

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Communication

 

 

25) "Copreneurs" are marked by:

  1. A) a division of labor by expertise.
  2. B) their similarity to the traditional mom-and-pop operation.
  3. C) a decline in the number of businesses.
  4. D) a greater success at raising venture capital than sole proprietorship-type businesses.

Answer:  A

Page Ref: 26

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Reflective Thinking

 

26) Successful copreneurs are marked by which of the following characteristics?

  1. A) Distinct and different business and life goals
  2. B) A clear delineation of who is the superior partner and who is the subordinate partner
  3. C) A blending of responsibilities, roles, and authority
  4. D) Mutual respect for each other's talents

Answer:  D

Page Ref: 26

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Communication

 

27) A major threat that family businesses face is:

  1. A) having kids.
  2. B) divorce.
  3. C) management succession.
  4. D) None of the above

Answer:  C

Page Ref: 26

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Communication

 

28) Bill and Sally have been tired of the corporate rat race. They leave their investment banking positions in New York, move to Colorado and start a business raising Mohair sheep. This couple is an example of the entrepreneurial phenomenon of:

  1. A) corporate dropouts.
  2. B) corporate downsizing.
  3. C) corporate raiders.
  4. D) corporate castoffs.

Answer:  A

Page Ref: 27

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Analytic Skills

 

29) Small businesses thrive in every industry, but the majority of them are in:

  1. A) the general construction industry.
  2. B) retail businesses.
  3. C) mining and manufacturing.
  4. D) service industries.

Answer:  D

Page Ref: 28

Topic:  The Contributions of Small Businesses

AACSB:  Reflective Thinking

 

30) More businesses fail because of ________ than for any other reason.

  1. A) incompetent management
  2. B) theft by employees
  3. C) insufficient capital
  4. D) poor choice of location

Answer:  A

Page Ref: 31

Topic:  Putting Failure into Perspective

AACSB:  Communication

 

31) Tom was a financial consultant who liked to work with his hands, especially in making furniture. He quit his rat race financial job to start a small custom furniture business. After struggling for several years, he closed it and went back to financial services. Tom discovered that there was a big difference between making furniture for himself and running a customer furniture manufacturing business. Tom's business failed because of:

  1. A) uncontrolled growth.
  2. B) poor financial control.
  3. C) his lack of experience.
  4. D) an inability to access start-up capital.

Answer:  C

Page Ref: 31

Topic:  Putting Failure into Perspective

AACSB:  Analytic Skills

 

32) Successful entrepreneurs recognize that their most valuable resource is their ________.

  1. A) time
  2. B) energy
  3. C) vision
  4. D) age

Answer:  A

Page Ref: 34

Topic:  How to Avoid the Pitfalls

AACSB:  Reflective Thinking

 

 

33) One key to success with a business startup is to begin with enough ________.

  1. A) capital
  2. B) sales
  3. C) accounts payable
  4. D) suppliers

Answer:  A

Page Ref: 33

Topic:  How to Avoid the Pitfalls

AACSB:  Reflective Thinking

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

  1. A) policies
  2. B) procedures
  3. C) routines
  4. D) business model

Answer:  D

Page Ref: 33

Topic:  How to Avoid the Pitfalls

AACSB:  Communication

 

35) A key characteristic of a successful entrepreneur is:

  1. A) never having failed.
  2. B) expert technical knowledge of the product.
  3. C) learning to fail intelligently.
  4. D) earning at least a 25% return for investors.

Answer:  C

Page Ref: 32

Topic:  Putting Failure into Perspective

AACSB:  Communication

 

36) The key ingredient—the crucial element—to avoiding the failure of a new business is:

  1. A) the business plan.
  2. B) knowing the business.
  3. C) technical expertise regarding the product.
  4. D) differentiating the business and product from the competition.

Answer:  A

Page Ref: 33

Topic:  How to Avoid the Pitfalls

AACSB:  Communication

 

 

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

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

Answer:  C

Page Ref: 33

Topic:  How to Avoid the Pitfalls

AACSB:  Reflective Thinking

 

38) Which of the following is true about avoiding business failure?

  1. A) You must understand financial statements.
  2. B) You need to learn how to manage others.
  3. C) You must differentiate your product from the competition.
  4. D) You must do all of these.

Answer:  D

Page Ref: 33 and 34

Topic:  How to Avoid the Pitfalls

AACSB:  Reflective Thinking

39) U.S. economic structure is moving:

  1. A) away from an agricultural economy to an industrial economy.
  2. B) away from an industrial economy to a knowledge-based one.
  3. C) back to an agricultural economy.
  4. D) away from an agricultural economy to a knowledge-based one.

Answer:  B

Page Ref: 4

Topic:  Introduction

AACSB:  Communication

 

40) A knowledge-based business economy favors small business because:

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

Answer:  D

Page Ref: 4

Topic:  Introduction

AACSB:  Communication

 

 

41) Money driven and wild risk takers are both:

  1. A) common characteristics of entrepreneurs.
  2. B) entrepreneur's techniques to success.
  3. C) common misconceptions of entrepreneurs.
  4. D) None of the above

Answer:  C

Page Ref: 5 and 8

Topic:  What is an Entrepreneur?

AACSB:  Communication

 

42) "Copreneurs" are:

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

Answer:  B

Page Ref: 26

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Reflective Thinking

 

43) Small businesses are those that employ:

  1. A) more than 100 employees.
  2. B) fewer than 20 employees.
  3. C) fewer than 100 employees.
  4. D) Number doesn't matter.

Answer:  C

Page Ref: 28

Topic:  The Contributions of Small Businesses

AACSB:  Communication

44) Entrepreneurial success requires both persistence and ________.

  1. A) education
  2. B) connections
  3. C) resilience
  4. D) reluctance

Answer:  C

Page Ref: 32

Topic:  Putting Failure into Perspective

AACSB:  Communication

 

 

45) Which of the following is not a common characteristic of entrepreneurs?

  1. A) Desire for responsibility
  2. B) Business plan expertise
  3. C) Preference for moderate risk
  4. D) High energy level

Answer:  B

Page Ref: 5-7

Topic:  What is an Entrepreneur?

AACSB:  Communication

 

46) Primary cause of business failure is:

  1. A) improper managerial attitude.
  2. B) poor financial controls.
  3. C) incompetent management.
  4. D) location.

Answer:  C

Page Ref: 31

Topic:  Putting Failure into Perspective

AACSB:  Communication

 

47) To avoid business failure, an entrepreneur should:

  1. A) know the business in depth.
  2. B) develop a solid business plan.
  3. C) take entrepreneurship courses.
  4. D) Both A and B

Answer:  D

Page Ref: 32 and 33

Topic:  How to Avoid the Pitfalls

AACSB:  Communication

 

48) Forces driving the entrepreneurial trend in our economy include which of the following?

  1. A) Technological advancement
  2. B) Shift to a service economy
  3. C) e-commerce
  4. D) All of the above

Answer:  D

Page Ref: 17 and 18

Topic:  Why the Boom: The Fuel Feeding the Entrepreneurial Fire

AACSB:  Use of IT

 

49) Management incompetence includes all but:

  1. A) the owner lacks the leadership ability necessary to operate it successfully.
  2. B) lack of capacity to make the business work.
  3. C) insufficient capital.
  4. D) inexperience.

Answer:  C

Page Ref: 31

Topic:  Putting Failure into Perspective

AACSB:  Communication

 

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

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

Answer:  D

Page Ref: 34

Topic:  How to Avoid the Pitfalls

AACSB:  Communication

 

51) Drawbacks of owning a small business include all but:

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

Answer:  C

Page Ref: 15 and 16

Topic:  The Potential Drawbacks of Entrepreneurship

AACSB:  Communication

 

52) Joanne is thinking about running her own business. What risks does she face?

  1. A) Getting stuck in a job she hates
  2. B) Having to deal with more government regulation than if she were a manager in a larger company
  3. C) Having less status in society, as most people do not respect small business owners
  4. D) Losing her entire invested capital

Answer:  D

Page Ref: 15

Topic:  The Potential Drawbacks of Entrepreneurship

AACSB:  Reflective Thinking

 

 

53) The average small business owner works ________ hours per week.

  1. A) 39.5
  2. B) 54
  3. C) 40
  4. D) 80

Answer:  B

Page Ref: 16

Topic:  The Potential Drawbacks of Entrepreneurship

AACSB:  Reflective Thinking

54) Launching and running a business can be an extremely rewarding experience, but it also can:

  1. A) be highly fun.
  2. B) bring a steady paycheck.
  3. C) be stressful.
  4. D) not be rewarding at all.

Answer:  C

Page Ref: 16

Topic:  The Potential Drawbacks of Entrepreneurship

AACSB:  Communication

 

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

Answer:  TRUE

Page Ref: 24

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Communication

 

56) Entrepreneurship has become mainstream.

Answer:  TRUE

Page Ref: 4

Topic:  Introduction

AACSB:  Communication

 

57) Entrepreneurs are people who grow existing businesses by careful management of existing resources.

Answer:  FALSE

Page Ref: 5

Topic:  What is an Entrepreneur?

AACSB:  Communication

 

58) Entrepreneurs are noted for their ability to bounce back after a business failure.

Answer:  TRUE

Page Ref: 32

Topic:  Putting Failure into Perspective

AACSB:  Communication

 

 

59) Entrepreneurial success requires little more than a good idea for a product or service.

Answer:  FALSE

Page Ref: 32

Topic:  How to Avoid the Pitfalls

AACSB:  Multicultural and Diversity

 

60) One hallmark of true entrepreneurs is their ability to adapt to the changing demands of their customers and businesses.

Answer:  TRUE

Page Ref: 8

Topic:  What is an Entrepreneur?

AACSB:  Analytic Skills

 

61) Entrepreneurs tend to have a low tolerance for ambiguity.

Answer:  FALSE

Page Ref: 8

Topic:  What is an Entrepreneur?

AACSB:  Communication

62) Research has isolated a set of characteristics that can predict who will succeed as an entrepreneur.

Answer:  FALSE

Page Ref: 5

Topic:  What is an Entrepreneur?

AACSB:  Communication

 

63) Studies indicate that the opportunity to make a difference is a significant benefit in the eyes of most entrepreneurs.

Answer:  TRUE

Page Ref: 13

Topic:  The Benefits of Owning a Small Business

AACSB:  Communication

 

64) The opportunity to reap unlimited profits is the primary motivator for most entrepreneurs.

Answer:  FALSE

Page Ref: 14

Topic:  The Benefits of Owning a Small Business

AACSB:  Communication

 

65) Entrepreneurs usually experience greater income stability running their own businesses than they did in their corporate careers.

Answer:  FALSE

Page Ref: 15

Topic:  The Potential Drawbacks of Entrepreneurship

AACSB:  Communication

 

 

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

Answer:  FALSE

Page Ref: 16

Topic:  The Potential Drawbacks of Entrepreneurship

AACSB:  Communication

 

67) It is common to experience a lower quality of life during a business start-up than after the business is established.

Answer:  TRUE

Page Ref: 16

Topic:  The Potential Drawbacks of Entrepreneurship

AACSB:  Multicultural and Diversity

 

68) Entrepreneurs can outsource many of the operations of their companies.

Answer:  TRUE

Page Ref: 18

Topic:  Why the Boom: The Fuel Feeding the Entrepreneurial Fire

AACSB:  Multicultural and Diversity

 

69) In today's economy, entrepreneurs are seen as heroes.

Answer:  TRUE

Page Ref: 17

Topic:  Why the Boom: The Fuel Feeding the Entrepreneurial Fire

AACSB:  Communication

70) Advances in technology available to entrepreneurs permit them to move into manufacturing and compete directly with Fortune 500 companies.

Answer:  FALSE

Page Ref: 18

Topic:  Why the Boom: The Fuel Feeding the Entrepreneurial Fire

AACSB:  Use of IT

 

71) Companies started by women tend to be smaller than those started by men.

Answer:  TRUE

Page Ref: 21

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Multicultural and Diversity

 

72) Immigrant entrepreneurs tend to arrive in the United States with less education and experience but more drive and access to capital through their "ethnic" connections.

Answer:  FALSE

Page Ref: 23

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Multicultural and Diversity

 

 

73) Although it is a lower risk way to start, very few entrepreneurs start part-time. Most prefer to cut all ties and "dive" into their business full-time, right from the start.

Answer:  FALSE

Page Ref: 24

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Communication

 

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

Answer:  TRUE

Page Ref: 26

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Communication

 

75) Despite their popularity, family-owned businesses are actually a small portion of the economy and contribute less than 25% of the GNP to the economy of the United States.

Answer:  FALSE

Page Ref: 24

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Multicultural and Diversity

 

76) Family-owned businesses have a significant advantage over other forms of small business, in that they have a very high survival rate when transitioning between generations of leadership.

Answer:  FALSE

Page Ref: 26

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Multicultural and Diversity

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

Answer:  FALSE

Page Ref: 26

Topic:  Copreneurs

AACSB:  Communication

 

78) Research shows that for "Copreneurship" to work, responsibilities must be divided by gender.

Answer:  FALSE

Page Ref: 26

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Multicultural and Diversity

 

 

79) One important characteristic of successful "copreneurs" is their ability to separate their business life from their personal life, so that one doesn't consume the other.

Answer:  TRUE

Page Ref: 26

Topic:  Copreneurs

AACSB:  Multicultural and Diversity

 

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

Answer:  FALSE

Page Ref: 27

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Reflective Thinking

 

81) The trend in corporate downsizing and the resulting trust gap have spawned both the "corporate castoff" and the "corporate dropout."

Answer:  TRUE

Page Ref: 27

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Communication

 

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

Answer:  TRUE

Page Ref: 28

Topic:  The Contributions of Small Businesses

AACSB:  Communication

 

83) Lack of experience is the number one cause of small business failures.

Answer:  FALSE

Page Ref: 31

Topic:  Putting Failure into Perspective

AACSB:  Communication

 

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

Answer:  TRUE

Page Ref: 33

Topic:  How to Avoid the Pitfalls

AACSB:  Communication

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

Answer:  FALSE

Page Ref: 21

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Multicultural and Diversity

 

86) "Copreneurs" are entrepreneurial couples who work together as co-owners of their business.

Answer:  TRUE

Page Ref: 26

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Communication

 

87) Most successful entrepreneurs accept failure as part of what they do, and they use it to learn for the "next time."

Answer:  TRUE

Page Ref: 31

Topic:  Putting Failure into Perspective

AACSB:  Communication

 

88) Entrepreneurs tend to create thorough, well thought out business plans prior to implementing new businesses.

Answer:  FALSE

Page Ref: 33

Topic:  How to Avoid the Pitfalls

AACSB:  Communication

 

89) In start-ups, it is often safest to be a "me-too" business, follow the leaders in the market until sufficient cash flow develops to permit R & D into new and innovative products.

Answer:  FALSE

Page Ref: 34

Topic:  How to Avoid the Pitfalls

AACSB:  Reflective Thinking

 

90) People who once saw launching a business risky now see it as an ideal way to create their own job security.

Answer:  TRUE

Page Ref: 3

Topic:  Introduction

AACSB:  Communication

 

91) Entrepreneurs are more wild risk takers than calculated risk takers.

Answer:  FALSE

Page Ref: 5

Topic:  What is an Entrepreneur?

AACSB:  Communication

 

92) Idealists make up the largest group amongst different entrepreneurial personalities.

Answer:  FALSE

Page Ref: 5

Topic:  What is an Entrepreneur?

AACSB:  Multicultural and Diversity

 

93) The flurry of corporate "pink slips" has slowed down a new population of entrepreneurs.

Answer:  FALSE

Page Ref: 3

Topic:  Introduction

AACSB:  Communication

 

94) Two characteristics common to entrepreneurs are creativity and an eye for opportunity.

Answer:  TRUE

Page Ref: 5

Topic:  What is an Entrepreneur?

AACSB:  Reflective Thinking

 

95) Because of advances in technology, entrepreneurs can outsource many of the operations of their companies.

Answer:  TRUE

Page Ref: 18

Topic:  Why the Boom: The Fuel Feeding the Entrepreneurial Fire

AACSB:  Analytic Skills

 

96) Briefly outline the key characteristics of a typical entrepreneur.

Answer:  Entrepreneurs have some common characteristics, including a desire for responsibility, a preference for moderate risk, confidence in their ability to succeed, desire for immediate feedback, a high energy level, a future orientation, skill at organizing, and a value of achievement over money. In a phrase, they are high achievers.

Page Ref: 5-8

Topic:  What is an Entrepreneur?

AACSB:  Analytic Skills

 

97) Identify and explain the advantages and the disadvantages of small business ownership.

Answer:  Driven by these personal characteristics, entrepreneurs establish and manage small businesses to gain control over their lives, become self-fulfilled, reap unlimited profits, contribute to society, and do what they enjoy doing. Small business ownership has some potential drawbacks. There are no guarantees that the business will make a profit or even survive. The time and energy required to manage a new business may have dire effects on the owner and family members.

Page Ref: 13-15

Topic:  Benefits of Owning a Small Business

AACSB:  Reflective Thinking

 

 

98) Explain at least five of the factors that are feeding the entrepreneurial boom in the United States and abroad.

Answer:  Several factors are driving the boom in entrepreneurship, including entrepreneurs portrayed as heroes, better entrepreneurial education, economic and demographic factors, a shift to a service economy, technological advancements, more independent lifestyles, and increased international opportunities.

Page Ref: 17-19

Topic:  Why the Boom: The Fuel Feeding the Entrepreneurial Fire

AACSB:  Reflective Thinking

99) Entrepreneurial activity is culturally diverse. Discuss the role of women, minorities, and immigrant entrepreneurs in this activity, profiling their characteristics, their impact, and the specific barriers they need to overcome in their small business start-ups.

Answer:  Virtually anyone has the potential to become an entrepreneur. The entrepreneurial sector of the United States consists of a rich blend of people of all races, ages, backgrounds, and cultures. It is this cultural diversity that is one of entrepreneurship's greatest strengths. We turn our attention to those who make up this diverse fabric we call entrepreneurship. Young people are setting the pace in entrepreneurship. Disenchanted with their prospects in corporate America and willing to take a chance to control their own destinies, scores of young people are choosing entrepreneurship as their primary career path.  Despite years of legislative effort, women still face discrimination in the workforce. However, small business has been a leader in offering women opportunities for economic expression through employment and entrepreneurship. Increasing numbers of women are discovering that the best way to break the "glass ceiling" that prevents them from rising to the top of many organizations is to start their own companies.  Minorities also are choosing entrepreneurship more often than ever before. Asians, African-Americans, and Hispanics, respectively, are most likely to become entrepreneurs. Like women, minorities cite discrimination as a principal reason for their limited access to the world of entrepreneurship. Minority-owned businesses have come a long way in the past decade, however. Increasingly, minorities are finding ways to overcome the barriers to business ownership.  The United States has always been a "melting pot" of diverse cultures, and many immigrants have been lured to this nation by its economic freedom. Unlike the unskilled "huddled masses" of the past, today's immigrants arrive with more education and experience.  Although many of them come to the United States with few assets, their dedication and desire to succeed enable them to achieve their entrepreneurial dreams.

Page Ref: 22-23

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Reflective Thinking

 

 

100) What role do corporate castoffs and corporate dropouts play in the growth of entrepreneurship in the United States?

Answer:  Concentrating on trying to operate more efficiently, corporations have been downsizing, shedding their excess bulk, and slashing employment at all levels in the organization. These downsizing victims or "corporate castoffs" have become an important source of entrepreneurial activity.  The dramatic downsizing in corporate America has created another effect among the employees left after restructuring: a trust gap. The result of this trust gap is a growing number of "dropouts" from the corporate structure who then become entrepreneurs.  Although their workdays may grow longer and their incomes may shrink, those who strike out on their own often find their work more rewarding and more satisfying because they are doing what they enjoy and they are in control.

Page Ref: 27

Topic:  The Cultural Diversity of Entrepreneurship

AACSB:  Communication

101) What are the primary causes of small business failure in the United States?

Answer:  Because they are building businesses in an environment filled with uncertainty and shaped by rapid change, entrepreneurs recognize that failure is likely to be a part of their lives; yet, they are not paralyzed by that fear. Successful entrepreneurs have the attitude that failures are simply stepping stones along the path to success.

Page Ref: 31-32

Topic:  Putting Failure into Perspective

AACSB:  Communication

 

102) What can an entrepreneur do to avoid the failure of his/her company? Discuss at least six actions they can take.

Answer:  There are several general tactics small business owners can employ to avoid failure. Entrepreneurs should know their business in depth, develop a solid business plan, manage financial resources effectively, understand financial statements, learn to manage people effectively, set the business apart from the competition, and keep in tune with themselves.

Page Ref: 32-34

Topic:  How to Avoid the Pitfalls

 

 

 

 

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Entrepreneurship: Starting and Operating A Small Business, 4th Edition, 2016, Steve Mariotti
Entrepreneurship: Successfully Launching New Ventures, 5th Edition, 2016, Bruce R. Barringer
Essentials of Entrepreneurship and Small Business Management, 8th Edition, 2016, Norman M. Scarborough
Fundamentals for Becoming a Successful Entrepreneur: From Business Idea to Launch and Management, 2016, Malin Brannback, Alan Carsrud
Entrepreneurship and Effective Small Business Management, 11th Edition, 2015, Norman M. Scarborough

------
PART 1: Decision to Become an Entrepreneur
1. Introduction to Entrepreneurship
PART 2: Developing Successful Business Ideas
3. Feasibility Analysis
4. Developing an Effective Business Model
5. Industry and Competitor Analysis
6. Writing a Business Plan
PART 3: Moving from an Idea to an Entrepreneurial Firm
7. Preparing the Proper Ethical and Legal Foundation
8. Assessing a New Venture’s Financial Strength and Viability
9. Building a New-Venture Team
10. Getting Financing or Funding
PART 4: Managing and Growing an Entrepreneurial Firm
11. Unique Marketing Issues
12. The Importance of Intellectual Property
13. Preparing for and Evaluating the Challenges of Growth
14. Strategies for Firm Growth
15. Franchising

------
PART I. STARTING THE PROCESS
Chapter 1. Why Plan?
PART II. WHAT TO DO BEFORE THE BUSINESS PLAN IS WRITTEN
Chapter 2. Developing and Screening Business Ideas
Chapter 3. Feasibiity Analysis
PART III. PREPARING A BUSINESS PLAN
Chapter 4. Introductory Material, Executive Summary, and Description of the Business
Chapter 5. Industry Analysis
Chapter 6. Market Analysis
Chapter 7. Marketing Plan
Chapter 8. Management Team and Company Structure
Chapter 9. Operations Plan and Product (or Service) Design and Development Plan
Chapter 10. Financial Projections
PART IV. PRESENTING THE BUSINESS PLAN
Chapter 11. Presenting the Plan with Confidence

------
BRIEF CONTENTS
UNIT 1 Entrepreneurial Pathways
Chapter 1 Entrepreneurs Recognize Opportunities
Chapter 2 Franchising
Chapter 3 Finding Opportunity in an Existing Business
Chapter 4 The Business Plan: Road Map to Success
Honest Tea Business Plan
Unit 1 Case Study: Spanx
UNIT 2 Who Are Your Customers?
Chapter 5 Creating Business from Opportunity
Chapter 6 Exploring Your Market
Unit 2 Case Study: Kitchen Arts & Letters, Inc.
UNIT 3 Integrated Marketing
Chapter 7 Developing the Right Marketing Mix and Plan
Chapter 8 Pricing and Credit Strategies
Chapter 9 Integrated Marketing Communications
Chapter 10 Marketing Globally
Chapter 11 Smart Selling and Effective Customer Service
Unit 3 Case Study: Empact
UNIT 4 Show Me the Money: Finding, Securing, and Managing It
Chapter 12 Understanding and Managing Start-Up, Fixed, and Variable Costs
Chapter 13 Using Financial Statements to Guide a Business
Chapter 14 Cash Flow and Taxes
Chapter 15 Financing Strategy: Debt, Equity, or Both?
Unit 4 Case Study: Lee’s Ice Cream
UNIT 5 Operating a Small Business Effectively
Chapter 16 Addressing Legal Issues and Managing Risk
Chapter 17 Operating for Success
Chapter 18 Location, Facilities, and Layout
Chapter 19 Human Resources and Management
Unit 5 Case Study: ONLC
UNIT 6 Leadership, Ethics, and Exits
Chapter 20 Leadership and Ethical Practices
Chapter 21 Franchising, Licensing, and Harvesting: Cashing in Your Brand
Unit 6 Case Study: Honest Tea
Appendix 1 Sample Student Business Plan: University Parent, Inc.
Appendix 2 BizBuilder Business Plan
Appendix 3 Resources for Entrepreneurs
Appendix 4 Useful Formulas and Equations
------
Section 1: The Rewards and Challenges of Entrepreneurship
1. Entrepreneurs: The Driving Force Behind Small Business
2. Ethics and Social Responsibility: Doing the Right Thing
3. Creativity and Innovation: Keys to Entrepreneurial Success
4. Strategic Management and the Entrepreneur
Section 2: Launching a Venture: Entry Strategies
5. Choosing a Form of Ownership
6. Franchising and the Entrepreneur
7. Buying an Existing Business
8. New Business Planning Process: Feasibility Analysis, Business Modeling, and Crafting a Winning Business Plan
Section 3: Building a Marketing Plan
9. Building a Bootstrap Marketing Plan
10. Creative Use of Advertising and Promotion
11. Pricing and Credit Strategies
12. Global Marketing Strategies
13. E-Commerce and Entrepreneurship
Section 4: Building a Financial Plan
14. Creating a Solid Financial Plan
15. Managing Cash Flow
16. Sources of Equity Financing
17. Sources of Debt Financing
Section 5: Building an Operating Plan
18. Location, Layout, and Physical Facilities
19. Supply Chain Management
20. Managing Inventory
21. Staffing and Leading a Growing Company
Section 6: Legal Aspects of Small Business: Succession, Ethics, and Government Regulation
22. Management Succession and Risk Management Strategies in the Family Business
23. The Legal Environment: Business Law and Government Regulation
------
Section I: The Challenge of Entrepreneurship 
1. The Foundations of Entrepreneurship
2. Ethics and Social Responsibility: Doing the Right Thing
3. Inside the Entrepreneurial Mind: From Ideas to Reality
Section II: The Entrepreneurial Journey Begins
4. Conducting a Feasibility Analysis and Designing a Business Model
5. Crafting a Business Plan and Building a Solid Strategic Plan
6. Forms of Business Ownership and Buying an Existing Business
7. Franchising and the Entrepreneur
Section III: Launching the Business
8. Building a Powerful Bootstrap Marketing Plan
9. E-commerce and the Entrepreneur
10. Pricing and Credit Strategies
11. Creating a Successful Financial Plan
12. Managing Cash Flow
Section IV: Putting the Business Plan to Work: Sources of Funds
13. Sources of Financing: Equity and Debt
14. Choosing the Right Location and Layout
15. Global Aspects of Entrepreneurship
16. Building a New Venture Team and Planning the Next Generation
------

 

ENTREPRENEURSHIP 2017 - NEW COLLECTION 2016 - 2017

1. Youtube Playlist: See the collection of videos - www.youtube.com/ecomftu2012

2. Download Power Point Slides Free

Entrepreneurship: Starting and Operating A Small Business, 4th Edition, 2016, Steve Mariotti - LINK
Entrepreneurship: Successfully Launching New Ventures, 5th Edition, 2016, Bruce R. Barringer  - LINK
Essentials of Entrepreneurship and Small Business Management, 8th Edition, 2016, Norman M. Scarborough - LINK
Fundamentals for Becoming a Successful Entrepreneur: From Business Idea to Launch and Management, 2016, Malin Brannback - LINK
Entrepreneurship and Effective Small Business Management, 11th Edition, 2015, Norman M. Scarborough - LINK

 

For Test Bankz, Quiz Answers and Case study Guides, email toThis email address is being protected from spambots. You need JavaScript enabled to view it.

Good Luck and Success, Enjoy Your Study !

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