Deck 1: The Entrepreneurial Lifethe Entrepreneurial Life

Question 1

There is no single definition of entrepreneurship.

Answer 1

True

Question 2

Josie's position was eliminated when the company moved its operations to another state, so she started her own business. Josie is a reluctant entrepreneur.

Answer 2

True

Question 3

Research departments of big businesses tend to focus on innovating and creating new products.

Answer 3

False

Question 4

Entrepreneurs should avoid hiring mediocre people.

Question 5

According to Stephen Covey, if we want to make important changes in our lives, we need to change from the inside-out.

Question 6

The primary motivation for owning your own business should be to make as much money as possible.

Question 7

The entrepreneur personality examines why a business does what it does.

Question 8

An entrepreneurial team consists of the owner, the financier, and one key employee.

Question 9

An entrepreneur who bootstraps would resort to bartering or using a personal credit card.

Question 10

An entrepreneurial legacy is limited to the tangible assets of the business.

Question 11

Franchisees have limited power because they have a contract and relationship with a franchising organization.

Question 12

One of the richest rewards of owning a small business comes from offering goods or services that improve the lives of customers.

Question 13

The mission of XYZ Company is to reduce landfill waste by recycling plastic containers into other useful products. XYZ Company is a social entrepreneur.

Question 14

Xavier had many ideas about new products, but no one in his corporation seemed interested. So Xavier left and founded his own company to create these new products. Xavier is a corporate refugee.

Question 15

Managers who buy out founders of existing firms may be classified as entrepreneurs.

Question 16

The universally accepted definition of the term small business is based on the number of people employed by the firm.

Question 17

The starting point of any competitive advantage is having a commitment to integrity.

Question 18

Small businesses have a greater potential to provide good customer service than larger firms do.

Question 19

Most entrepreneurs work shorter hours in their own businesses than they did when working for someone else because they have no boss to report to.

Question 20

Self-employed individuals are less likely to create greater personal wealth than persons who work for others.

Question 21

Small businesses that have great prospects for growth are called

A) gorillas.
B) antelopes.
C) jaguars.
D) gazelles.

Question 22

Which of the following is NOT one of the four stages of the entrepreneurial process?

A) Harvesting the business
B) Analyzing the industry
C) Identifying an attractive opportunity
D) Acquiring the critical resources needed for growing the business

Question 23

A paradigm shift is

A) when you move capital.
B) a change in opportunity.
C) a change in how we fundamentally see a situation.
D) a reorganization of a company.

Question 24

Which of the following types of small businesses makes up the largest sector of the U.S. economy?

A) High-potential ventures
B) Gazelles
C) Lifestyle businesses
D) Attractive small firms

Question 25

Geraldo often would rather go fishing than work his business. According to Stephen Spinelli and Robert Adams, which entrepreneurial characteristics does Geraldo lack?

A) Commitment
B) Courage
C) Creativity
D) Tolerance of risk

Question 26

Henry is well respected by his employees. He has the ability to self-motivate and team-build with a focus on honesty in business relationships. What attribute does Henry display?

A) Determination
B) Leadership abilities
C) Tolerance of risk
D) Motivation to excel

Question 27

A firm that provides substantial profits to its owner is called a(n)

A) franchise.
B) high-potential venture.
C) attractive small firm.
D) lifestyle business.

Question 28

Isabella overheard her customers discussing their desire for more baked treats suitable for diabetics. Immediately, she added sugar-free items to her inventory. Isabella has strong

A) creativity.
B) leadership abilities.
C) opportunity obsession.
D) tolerance of risk.

Question 29

Francesca convinced her aunt to invest in her day spa in exchange for a percentage of the profits. Francesca is

A) taking advantage of her aunt.
B) capitalizing on an opportunity.
C) conserving her own resources.
D) bootstrapping.

Question 30

Using the criteria in the text to define a small business, Table Occasions will NOT be considered a small business once the company

A) is financed by three individuals.
B) has sales greater than 20% of other firms in the industry.
C) is operating in numerous states.
D) has 50 employees.

Question 31

Adam has contracted with about a third of the dozens of artisans in his town in the mountains of South Carolina. His reputation has grown; he now believes the sky's the limit for this website design and maintenance business. What kind of small business does Adam have?

A) Lifestyle business
B) Microbusiness
C) High-potential venture
D) Attractive small firm

Question 32

Devon believes now is the time to launch his welding business because the only competitor has just announced his retirement. Devon is in which state of entrepreneurship?

A) Identifying an attractive opportunity
B) Executing the plan
C) Acquiring the critical resources needed for growing the business
D) Harvesting the business

Question 33

In a small business, there is no more important issue than

A) making a profit.
B) efficiently managing resources.
C) exploiting opportunities.
D) scaling the business.

Question 34

Which of the following has helped level the playing field for small firms competing with larger companies?

A) Quality performance
B) Customer focus
C) Financial services
D) Innovation

Question 35

Which of the following best fits the definition of a small business?

A) A manufacturer with 75 investors
B) A hardware store franchise with 20 employees
C) A fast-food franchise with locations in three states
D) All of these are correct.

Question 36

Which of the following is an almost certain way to fail as an entrepreneur?

A) Overestimate what you can do.
B) Tolerate uncertainty.
C) Share ownership in the business in an equitable way.
D) Focus on a niche market.

Question 37

Bailey works as a self-employed golf pro at the local country club, allowing him to spend more time with his young family. He'll never earn much, but he and his family are happy. Which type of small business does Bailey have?

A) Gazelle
B) Attractive small firm
C) High-potential venture
D) Lifestyle business

Question 38

Small enterprises hire 43 percent of all _____ employees.

A) high-tech
B) male
C) medical
D) female

Question 39

Carmen operates a franchise tanning salon. Negative publicity about the effects of tanning has diminished her ability to grow the business. Carmen has a(n)

A) high-potential venture.
B) attractive small firm.
C) gazelle.
D) microbusiness.

Question 40

Jasper is so convinced he will succeed that he has mortgaged his home, maxed out his credit cards, and borrowed from his retirement savings to finance his business. Jasper is high in

A) commitment.
B) leadership abilities.
C) creativity.
D) tolerance of risk.

Question 41

Martina expected to build her direct sales business to the point that she could quit her day job after six months. Five months later, she barely has any customers. Martina

A) has overestimated what she can do.
B) knows her market well.
C) is a domineering manager.
D) should take on a partner.

Question 42

Lydia works as a senior network administrator and is dissatisfied with the stifling bureaucratic environment of her job. She is considering venturing out on her own as a consultant. If she carries through with her intentions, she would be considered a(n)

A) corporate pariah.
B) entrepreneurial dilettante.
C) bureaucratic emigrant.
D) corporate refugee.

Question 43

Michael owns a dry-cleaning business. He is planning to retire at the end of the year and his son, Bryant, will take over the business. Bryant is a(n)

A) intrapreneur.
B) corporate refugee.
C) franchisee.
D) second-stage entrepreneur.

Question 44

An entrepreneur's success generally arises from all of the following EXCEPT

A) having a desire to lead.
B) having a clear mission.
C) discounting ideas from others to improve products.
D) recognizing that business success requires hard work and long hours.

Question 45

Kevin developed a clever marketing campaign that increased his sales by 48%. Kevin is high in

A) commitment.
B) leadership abilities.
C) creativity.
D) tolerance of risk.

Question 46

Raold operates a fast-food restaurant. He is under contract to the organization under whose name he does business. The contract limits what Raold can do with his business. Raold is a

A) franchisor.
B) franchisee.
C) contract employee.
D) partner in a limited liability company (LLC).

Question 47

Vincent's business has grown; he now employs 14 people. He enjoys teaching new employees the skills they need to make his products. One of Vincent's reasons for being in business for himself is

A) personal satisfaction.
B) independence.
C) financial rewards.
D) being the best he can be.

Question 48

Ursula works within a large corporation. Her job is to take ideas and turn them into profitable products for the business. Ursula is a(n)

A) social entrepreneur.
B) reluctant entrepreneur.
C) corporate refugee.
D) intrapreneur.

Question 49

A Harris poll inquiring into the reasons that entrepreneurs give for owning a company found that the number-one reason is to

A) fill a niche.
B) improve financial well-being.
C) be the boss.
D) follow a passion.

Question 50

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

A) social entrepreneur.
B) corporate refugee.
C) reluctant entrepreneur.
D) independent refugee.

Question 51

Lance has set for his business the goal of increasing revenues by 20% and profits by 15% by the end of the year. Lance is likely high in

A) tolerance of risk.
B) opportunity obsession.
C) leadership abilities.
D) motivation to excel.

Question 52

Which of the following is the foundation of all relationships, including those in business?

A) Trust
B) Tolerance
C) Quality performance
D) Acceptance

Question 53

Which of the following is NOT a characteristic of the entrepreneur personality?

A) Delegates authority
B) Sees the business as a system
C) Asks how the business must work
D) Visualizes the future

Question 54

When a Fortune 500 business lays off workers, some displaced employees may decide to start their own businesses. They are best described as

A) corporate refugees.
B) welfare profiteers.
C) corporate entrepreneurs.
D) reluctant entrepreneurs.

Question 55

Sabrina has figured out how to recycle clear plastic bottles into woven fabric and has launched a new business. Sabrina is

A) an entrepreneurial team member.
B) a social entrepreneur.
C) risk averse.
D) a franchisee.

Question 56

Bill Gates and Steve Ballmer, founders of Microsoft, would be considered

A) franchisors.
B) franchisees.
C) an entrepreneurial team.
D) sole proprietors.

Question 57

Natalie enjoyed yarn crafts so she opened a yarn and craft store in her small town. Sales have been dismal; few people visit her store. Which of the following mistakes did Natalie make?

A) She overestimated what she could do.
B) She lacked an understanding of the market.
C) She hired mediocre people.
D) She failed to share ownership in the business in an equitable way.

Question 58

Tatiana was laid off from her manufacturing job and, in desperation, launched a business providing transportation services for the nondrivers in her community. We would classify Tatiana as a

A) social entrepreneur.
B) creative entrepreneur.
C) corporate refugee.
D) reluctant entrepreneur.

Question 59

Oscar wants everything in his restaurant to be perfect so he points out every little mistake his servers make. He has high turnover among his staff. Which of the following best explains why?

A) Oscar is a domineering manager.
B) Oscar is not a team player.
C) Oscar lacks tolerance of risk.
D) Oscar lacks an understanding of his market.

Question 60

The daughter of the owner of a large business disliked her father's criticism and eventually decided to quit the family business and start her own business. The daughter is a

A) corporate opportunist.
B) gazelle.
C) reluctant entrepreneur.
D) corporate refugee.

Question 61

Walter wanted to be able to make decisions about issues that directly affected his department; however, in his corporation, the managers made all the decisions. So Walter left the corporation and started his own firm. Walter was looking for

A) personal fulfillment.
B) personal satisfaction.
C) independence.
D) financial rewards.

Question 62

Although Abner started the business by making his own product, his greater talent is planning for the future and preparing the business for growth. Abner has a(n) _____ personality.

A) technician
B) manager
C) entrepreneur
D) opportunistic

Question 63

Calvin knew his small local hardware store could not compete on price with the big-box discounters so he began offering classes for new homeowners and found other ways to provide services the bigger stores don't. Calvin's competitive edge is

A) customer focus.
B) quality performance.
C) innovation.
D) niche markets.

Question 64

Evelyn opened a small boutique catering to a very narrowly defined target market. Evelyn's competitive edge is

A) the niche market.
B) customer focus.
C) quality performance.
D) innovation.

Question 65

Many entrepreneurs are highly motivated by the prospect of

A) an easy life.
B) making money.
C) freedom from long hours.
D) job security.

Question 66

Darlene was disappointed with mass-produced children's clothing that fell apart after a couple washings, so she and her few employees began making garments that would hold together until they were outgrown. Darlene's competitive edge is

A) customer focus.
B) quality performance.
C) niche markets.
D) integrity and responsibility.

Question 67

Flora built her business from two employees to more than 2,000 during her 30 years in business. She was able to endow a scholarship fund to the community college and to leave her children a perpetual income. We call this her

A) corporate responsibility.
B) social mission.
C) good citizenship.
D) entrepreneurial legacy.

Question 68

Ben seems to have the Midas touch. He can recognize opportunity where others see only problems. His focus is on providing results for customers. Ben has a(n) _____ personality.

A) technician
B) manager
C) entrepreneur
D) opportunistic

Question 69

Valerie 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

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.

Question 70

Legend holds that Abraham Lincoln walked miles to return two cents change to a customer. His actions demonstrate

A) customer focus.
B) quality performance.
C) integrity and responsibility.
D) social entrepreneurship.

Question 71

Match the term with its definition.
a.attractive small firm
b.corporate refugee
c.entrepreneur personality
d.high-potential venture (gazelle)
e.manager personality
f.microbusiness
g.niche market
h.reluctant entrepreneur
i.social entrepreneurship
j.technician personality
A personality that is pragmatic and likes order and planning operations

Question 72

A corporate manager chafes under red tape and bureaucratic regulations until finally deciding to start a separate business. The apparent reward he seeks is

A) community service.
B) a satisfying way of life.
C) independence.
D) the satisfaction of working with people.

Question 73

Match the term with its definition.
a.attractive small firm
b.corporate refugee
c.entrepreneur personality
d.high-potential venture (gazelle)
e.manager personality
f.microbusiness
g.niche market
h.reluctant entrepreneur
i.social entrepreneurship
j.technician personality
A person who becomes an entrepreneur to escape an undesirable job situation

Question 74

The material assets and intangible qualities passed on to both heirs and society make up an entrepreneur's

A) mission.
B) personality.
C) history.
D) legacy.

Question 75

Entrepreneurs are more likely than large companies to capitalize on innovations because

A) entrepreneurs have more time to be creative.
B) larger corporations must satisfy stockholders and cannot take risks.
C) entrepreneurs are more likely to find grants for research.
D) research departments of big businesses tend to focus on improving existing products.

Question 76

Xavier believed his labor was only making others rich while he struggled from paycheck to paycheck. He started his own small business and now labors only for himself. Xavier's motivation is

A) personal fulfillment.
B) personal satisfaction.
C) independence.
D) financial rewards.

Question 77

Zelda worked for years in a medical clinic as a biller and coder. Now she operates her own billing service for several doctors. Zelda has a(n) _____ personality.

A) technician
B) manager
C) entrepreneur
D) artisan

Question 78

Discuss similarities and differences of entrepreneurs and small business owners.

Question 79

Explain the nature of and differences among microbusinesses, attractive small firms, and high-potential ventures.

Question 80

Garner places great emphasis on operating his business to the highest standards of honesty and ethics. Garner likely believes

A) the end justifies the means.
B) how you achieve is as important as what you achieve.
C) the customer is always right.
D) good guys finish last.