Chapter 2

Which of the following statements about women entrepreneurs are true?

*They often run into a "glass ceiling" *They start up businesses at a rate of 50 percent more than men. * They are one of the fastest-growing segments of entrepreneurs.

Myers-Brigg

Developed by Katherine Briggs and her daughter Isabel Myers. The rationale for the test is drawn for Carl Jung. Focuses on extroversion-introversion (focus on outward world or internal), Judgement-perception(how people gather information) Thinking-feeling(how the make decisions) Sensing-intuiting (order vs. flexibility)

Which of the following groups might be included in an entrepreneur's key support network?

Former employees Friends from school individuals you know from a fraternal organization such as the Rotary Club individuals you know from another organization including church or synagogue

Which of the following is an advantage that family businesses enjoy over nonfamily-owned business?

Individuals in family businesses are often willing to work at times and in conditions that employees in non-family owned business would not accept.

Which of the following personality tests is based on the philosophy of Carl Jung?

Myers-Briggs

Which of the following is NOT one of the three types of specific risks?

Network

______ motivations come from the individuals themselves.

Personal

Which of the following are supports that entrepreneurs rely on?

Social networks Financial resources Family

True or false: An entrepreneur's risk tolerance, prior experience, and personality orientation shape their analysis of a business idea's potential.

True

True or false: It is advisable for an entrepreneur to ensure that sufficient financial resources are available prior to the start of a business.

True

True or false: It is likely for an entrepreneur to spend more time starting and running the business than doing anything else in life.

True

True or false: New businesses have greater flexibility in responding to changes that take place in their external environment.

True

You should start a business doing something you have a passion for because you will spend more time starting and running the business than if you start a business than that does not excite you.

True

_________-________ point is when a business has reached a level where the revenue coming into the firm is sufficient to cover its expenses.

break-even

Large businesses often have

extensive written procedures

Which of the following statements regarding personal motivations are correct?

* Entrepreneurs who are driven by personal motivators more relentlessly purse their goals. *Entrepreneurs who are driven by personal motivators are often more proactive. *Entrepreneurs who are driven by personal motivators often make career and life-altering changes regardless of practical advice.

Which of the following are pairs of variables in the Myers-Briggs test?

* Extroversion-introduction * Sensing-intuiting * Judgement- perception

_________ is a managerial theory that believes individuals act to maximize their own benefit.

Agency theory

Identify the website that help a company reach out to a wide community online to get funding and often advice in the process of raising those funds.

Crowdfunder.com Kickstarter.com

Entrepreneurs driven by circumstances motivators are often more proactive than those with personal motivation for starting a business.

False

Small business owners who are driven by circumstance motivators tend to be more proactive and drive relentlessly toward their goals.

False

Which of the following are benefits of family-owned business?

Family members may be willing to work extra hours during holidays. Family members help the entrepreneur overcome many difficulties that may cause failure. Family members may be willing to take only a partial or no salary during difficult times.

Which of the following are potential negative issues related to owning and operating a family-based business?

Family members may bring non-work issues to the business. Family members may be more difficult to reprimand or fire. Family members may take advantage of their personal relationship with the owner.

How does support from companies in a network help a new firm?

It helps to indicate the others the staying power of the new firms. It helps the new firms in obtaining credit.

People in an entrepreneur's network can help by providing _________ to a new business.

Legitimacy

To fully utilize family resources, entrepreneurs should _________.

List the capabilities those individuals posses that might be helpful Make a list of members that they have regular contact with

The Big Five Test composes of

Open-mindedness Conscientiousness Agreeables Emotional stability extroversion

The Big Five test comprises which of the following factors?

Open-mindedness Emotional stability Extroversion

Which of the following are components of the entrepreneurial orientation concept?

Prior experience Risk tolerance Personality orientation

A large, established corporation

The individuals who manage do not typically substantial ownership in the company.

Which of the following often leads young people to be pioneers in an area as they are not limited by the restrictions of the past?

The presence of bounded rationality

Which of the following statements regarding the Small Business Assistance Centers are correct?

They are often associated with SCORE offices. They are funded by the Small Business Administration. The provide a wide variety of support such as research aids.

Which of the following are correct regarding the characteristics of large businesses?

They have greater excess resources No one person is critical to the business's survival Knowledge is widely dispersed throughout the business.

In context of the triggers that encourage new business formations, circumstance motivators tend to result in more of a defensive positioning.

True

True or false: An entrepreneur's prior experience places boundaries on what he or she will consider when making decisions.

True

Personality tests should help you better understand yourself and your strengths and not be used as a guide for your __________.

career

Personality tests should help you better understand yourself and your strengths and not be used for your __________

career

There is one crucial person in a large organization: the chief executive officer.

false

Incubators for small business include all of the following......

financial loans

Small Business Development Assistance Centers provide _______.

free advice to new businesses.

Individuals from outside the industry are able to establish a new business in a manner not previously considered because they ____________.

have bounded rationality

Individuals from outside an industry are able to establish a new business in a manner not previously considered because they ____________.

have bounded rationality.

The greater the debt an entrepreneur is willing to take on to start the business, the _________ his or her tolerance.

higher

Students need to consider their own resources and abilities early when they thing about starting an entrepreneur business because of the ___________

importance of an owner to a new business

An entrepreneurial business

is it owned and run by the same person(s)

The founders and the leadership they provide play ____ of a critical role in the business's success than senior leadership in the typical large organization.

more

Women of color account for _________ of businesses headed by women.

one-third

An excess of resources in an organization that allows for redundancy and the quick deployment of personnel is referred to as ______ _____.

organizational slack

There are successful business people in all _______ categories.

personality

The triggers for starting a business can come from either ____________ or negative stimuli that occur in the individual's life.

positive

Entrepreneurs need to have a(n) ________ vision of what resources are necessary in order to be successful.

realistic

Potential entrepreneurs must understand their level of tolerance to _______.

risk

By providing resources that new businesses cannot otherwise afford on their own, incubators can help these businesses establish __________.

some level of legitimacy

Entrepreneurs should work with family members for their advice, potential funding, reality check, and __________ structure.

support

Sarah works as a supervisor in a large firm. Though she is very experienced at management and planning, she has not been promoted to the role of manager. However, she notices that other supervisors with less experience are often promoted to managerial positions, even if their work is not as good as hers. She also notices that all of them are men. In this scenario, Sarah being denied a promotion in an example of ______

the glass ceiling

When starting a business, one must understand the relationship between __________ and the expected return.

time commitment

An entrepreneur's support and resources are typically _________ to the individual and the location.

unique

Which of the following statements about agency theory are correct?

* Agents often maximize their own benefit * Owners always act to maximize the value of the business * Managers are considered agents

Which of the following are characteristics of a family business?

* Family members work together to support the business * A family business has unique issues

The Enneagram's nine personality types include which of the following?

* Helper * Achiever * Reformer

Identify the features of circumstances motivators

* They result from environmental changes. *They tend to result in more of a defensive positioning.

Which of the following are typical triggers for starting a business?

*Being approached by one or more people with a new business idea * Reaching a point financially where the risk-return level of a proposed new business is tolerable. *Being laid off from a job *Having very little to lose financially by a failure. * Receiving evidence that an idea is not only doable, but there is a concrete way to address a given problem. * Being spurred to action by attending a seminar, reading a book, or talking with successful entrepreneurs * Experiencing a midlife (or early-life or even late-life crisis) * Experiencing the inability to climb the corporate ladder due to circumstances beyond one's control. There might include not having graduated from the "correct" school, being female in a male-dominated business, and having a marketing background in a manufacturing business. * Graduating from college you may also see new opportunities that others have not seen. Today more so than any time in the history of the US starting a business from college is seen is highly possible.

A business ____________ is a facility that houses new business and provides many critical services.

incubators