BUSI 1301 chapter 7

The primary reason people choose to become entrepreneurs is to:

earn more money

James is always keen on putting his ideas into action regardless of the outcome. He perfects his craft by trying out different possibilities. If he is dissatisfied with the result, he tries out a different method but does not give up. Which entrepreneurial characteristic is highlighted in the given scenario?

Vision

Which of the following is an appealing benefit that entrepreneurs enjoy?

The ability to set their own hours

Which of the following categories of people is most likely to step into entrepreneurship?

People who have trouble being subordinates because of their personalities.

In the context of entrepreneurs, which of the following statements is a difference between an internal locus of control and an external locus of control?

An internal locus of control involves personal responsibility, whereas an external locus of control does not.

Jenifer owns a bakery that specializes in preparing extravagant wedding cakes. She is a sought-after baker because of the quality and finesse of her products. Jenifer believes that the pressure of living up to the expectations of her customers and delivering quality products always keeps her on the edge and helps her to deliver her best. Which of the following advantages of entrepreneurship is highlighted in the given scenario?

Challenge

Lester owns a small law firm and has a 10-hour workday. Despite keeping long hours, he is open to working on weekends and holidays if required. He also responds to late-night calls from clients. Which of the following entrepreneurial characteristics is highlighted in the given scenario?

Energy

Richard, an employee in an investment firm, was dissatisfied with the way his superiors handled business dealings. For that reason, he quit his job and started his own business so that he is able to make all management decisions without interference from anyone. Which advantage of entrepreneurship is highlighted in the given scenario?

Independence

Felix lost his job at an investment firm because of downsizing during a period of recession. To keep himself financially stable, he opened a food truck that became a huge success. Which of the following advantages of entrepreneurship initially motivated Felix to start the food truck?

Survival

In the context of protecting your start-up, which of the following statements is true of growth hackers?

They know their customers inside and out.

Which of the following statements is true of entrepreneurs who possess tolerance of failure?

They tend to view nonsuccess as a chance to learn.

Which of the following statements is true of entrepreneurs who are tolerant of uncertainty?

They view the world in shades of gray.

An advantage of staring a business from scratch is that the entrepreneur has the freedom to use his or her own ideas and concepts.

True

In the context of the US economy, small firms tend to be effective innovators because of the presence of revolutionary new ideas.

True

Xavi develops a cell phone battery that can be charged by a solar panel and can run efficiently for up to three hours. His friends point out that it would be difficult to get cell phone manufacturers to adopt his new technology and that it would take a long time for people to start relying on it. However, Xavi is convinced that he can make his idea popular and successful. He plans to start a new company called EnerMob Inc. that would promote and sell the cell phone battery to the public. In this scenario, which of the following entrepreneurial characteristics is Xavi demonstrating?

Vision

Raoul is an illiterate who does not have proper skills for any job. As a result, he is unable to find permanent employment. As a last resort, Raoul starts a diner in his home to earn a regular income for his family. In the given scenario, Raoul most likely started the diner because it offered __________.

a chance of survival

Maude worked as a lead animator in an animation company. However, she could not exercise her freedom while working on projects because she was bound by the decisions made by the company. Fed up with this, Maude quit her job and started an animation firm where she accepts only those projects that allow her free rein in terms of creativity. In the given scenario, Maude most likely started her own firm because it offered ___________.

independence

Dominic feels that an incredible string of bad luck has affected his personal life. He also feels that his boss is subjecting him to unfair treatment at work for no fault of his. Dominic's perceptions suggest that he has in internal locus of control.

False

Rudy owns a small metal fabrication business that employs 23 workers. As the owner of a small business, one of the major advantages that Rudy enjoys while competing with larger firms is reduced burden of complying with government regulations.

False

Ted's new company is experiencing a steady decline in profit. He needs external financing to prevent his company's profits from declining further. Considering the fact that he wants to exercise sole ownership and control over the firm for as long as possible, Ted is likely to find angel investors who are interested in helping him meet his financial needs.

False

Who among the following is the most appropriate person to start his or her own venture?

Gita, who has been an event manager for five years but discontinues her job as she wants to spend enough time with her one-year-old child.

Tobin starts a catering company of his own and earns a substantial profit in the first year itself. His total earnings are more than what he used to earn as a salaried person. Which of the following advantages of entrepreneurship is highlighted in the given scenario?

Greater financial success

In the context of funding options for small businesses, which of the following offers a potential funding source for new business start-ups?

Peer-to-peer lending

Small businesses often have an advantage in foreign markets where customers want to deal directly with a company's top management.

True

In the event that a large company has to downsize, the middle-aged workers who are laid off find it difficult to find new jobs. When such workers decide to start their own businesses, they:

are called necessity entrepreneurs.