Chapter 6 Assignment

Entrepreneurs and small-business owners both have all of the following qualities EXCEPT: growth of their company. drive toward a goal. desire to succeed. creative energy.

growth of their company.

What percent of large U.S. firms now allocate funds toward intrapreneurship? 5% 70% 30% 50%

30%

What is a skunkworks? A project initiated by an employee who conceives an idea, convinces top management of its potential, and then recruits human and other resources from within the company to the idea into a commercial project. A company initiated project that focuses on a few products and technologies that might lead to rapid marketplace winners. A project initiated by a small business owner which is then funded by an angel investor. A project that entails borrowing a certain percentage of time from other assignments to explore new product ideas of the employee's choosing.

A project initiated by an employee who conceives an idea, convinces top management of its potential, and then recruits human and other resources from within the company to the idea into a commercial project.

How is tolerance for ambiguity different from a love of risk taking? A tolerance of ambiguity means that you will try again when others would give up. Ambiguity can be managed by staying close to customers and making adjustments as needed. Risk taking is usually successful but ambiguity cannot be controlled. Risk taking is a positive trait; ambiguity is negative.

Ambiguity can be managed by staying close to customers and making adjustments as needed.

Which of the following is an example of a country with a factor-driven economy with an average of over 10% of its adults starting or managing a new business? Bangladesh Thailand Hong Kong United States

Bangladesh

Which types of countries prove to have a lower average rate of entrepreneurship? Countries whose economies are driven by innovation Countries that compete based on unskilled labor Countries that are considered newly industrialized Countries that compete based on natural resources

Countries whose economies are driven by innovation

What makes an entrepreneur different from a small business owner? Desire to succeed Desire to make the business grow Creative energy Drive

Desire to make the business grow

_____ are specific geographic areas designated for economic revitalization. Investor zones Economic stimulus zones Enterprise zones Commerce areas

Enterprise zones

How are entrepreneurs different from managers? Managers are more likely than entrepreneurs to use the resources of the organization to accomplish personal goals. Entrepreneurs are more risk averse than managers. Managers typically are more independent than entrepreneurs. Entrepreneurs combine their ideas with resources to create a business that fills a market need; managers direct the effort of others to achieve an organization's goals.

Entrepreneurs combine their ideas with resources to create a business that fills a market need; managers direct the effort of others to achieve an organization's goals.

Which of the following is a major consideration in selecting a business idea? Find something you love to do and are good at doing. Select something that appeals to people around the globe. Choose a product/service that is inexpensive to sell. Make sure no company is currently offering the product/service.

Find something you love to do and are good at doing.

Entrepreneurs who run small businesses from their homes are called __________ . small-business managers intrapreneurs serial entrepreneurs Homepreneurs

Homepreneurs

The entrepreneurial personality includes all of the following characteristics except Need to achieve Vision Intolerance for failure Self-confidence

Intolerance for failure

Concerning education and entrepreneurs, all of the following statements are correct EXCEPT: Obtaining a college degree in entrepreneurship is essential before starting your own business. Some colleges and universities offer entrepreneurship courses outside the usual business curriculum. Hundreds of colleges and universities offer classes in entrepreneurship. Some colleges and universities sponsor business plan contests.

Obtaining a college degree in entrepreneurship is essential before starting your own business.

What kind of entrepreneur starts many businesses in succession? Classic entrepreneur Lifestyle entrepreneur Social entrepreneur Serial entrepreneur

Serial entrepreneur

________ are pioneers of innovations that benefit humanity. Change agents Atypical entrepreneurs Social entrepreneurs Classic entrepreneurs

Social entrepreneurs

Which of the following statements best describes how entrepreneurs view failure? They enjoy risk and gambling. They view failure as a learning experience. They worry that if they fail they'll never get another opportunity. They don't worry about failing because something better always comes along.

They view failure as a learning experience.

________ percent of large firms allocate funds towards intrepreneurship. Five Fifteen Thirty Twenty

Thirty

Almost two of every five of the fastest growing small U.S. companies have international sales True False

True

________ of the fastest-growing small companies in the United States have international sales. Four of five Three of five Two of five Five of five

Two of five

Which of the following is the least likely source of financing for new ventures? Angel investors Venture capitalists Debt capital Equity capital

Venture capitalists

An overall idea for how to convert a business idea into a success is called ________. creativity Vision internal locus of control tolerance for ambiguity

Vision

Which of the following is least important when buying an existing business? What type of financing can be obtained to fund the purchase Whether the business is currently profitable Whether you know the current owners personally How stable the customer base is

Whether you know the current owners personally

Which of the following create opportunities for new entrepreneurs in the U.S.? growth of ethnic groups aging of the population all of these answer choices are correct predominance of two-income families

all of these answer choices are correct

Lisa is trying to start a new business. A women's business network puts her in touch with an investor who is willing to invest in her company in exchange for an equity stake. This investor is a(n) ________. angel investor entrepreneur franchiser venture capitalist

angel investor

Michael is a successful financial advisor looking to invest money directly into a new consulting business in return for equity in the company. Michael is an example of a(n) ________. aerial entrepreneur entrepreneur angel investor intrapreneur

angel investor

Franz and Arlene had an idea for a different type of ice cream. They struggled to open their own small business, and later, to expand production and distribution. Their products are distributed nationwide and their sales continue to increase. Franz and Arlene are examples of ________. change agents social entrepreneurs serial entrepreneurs classic entrepreneurs

classic entrepreneurs

Kayla is opening a home health care business that she knows will do well in her community based on prior research. Although she must repay borrowed funds, Kayla chooses ________ to maintain complete control over the business without having to answer to investors or partners. sole proprietor financing venture financing equity financing debt financing

debt financing

All of the following are important characteristics of entrepreneurs EXCEPT: creativity. dependence on others. internal locus of control. tolerance for failure.

dependence on others.

Which of the following is an example of how 3M successfully practices intrapreneurship? employees are permitted to take frequent vacations to inspire new product ideas. employees are alotted 15% of their time to pursue their own ideas. employees are encouraged to borrow time from other projects to develop new products. employees copy competitors' product ideas and claim credit.

employees are alotted 15% of their time to pursue their own ideas.

Information technology can help entrepreneurs in all of the following ways EXCEPT: work quickly and efficiently. ensure financial success. project a professional image. provide improved customer service.

ensure financial success.

Jada is opening her own bakery. Jada is an example of a(n) ________. entrepreneur minority executive venture capitalist manager

entrepreneur

What are the two most important considerations in choosing an idea for a business? developing a business plan; leaving your full-time job so you have the time to devote to the new venture finding something you love to do and are good at doing; determining if your idea satisfies a need in the marketplace deciding if you have the resources to produce the good or service; estimating how much money you will be able to make securing financing; hiring the right people

finding something you love to do and are good at doing; determining if your idea satisfies a need in the marketplace

Logan is an entrepreneur who takes personal responsibility for the success or failure of his actions rather than believing in luck or fate. Which characteristic best describes Logan's entrepreneurial philosophy? tolerance for ambiguity internal locus of control need to achieve tolerance for failure

internal locus of control

Financial success ________. is virtually guaranteed if people work hard enough starting their own businesses is part of the appeal of becoming an entrepreneur rarely results from starting a business plays little role in motivating people to become entrepreneurs

is part of the appeal of becoming an entrepreneur

Entrepreneurs possess all of the following traits EXCEPT ________. tolerance for ambiguity creativity low self-confidence Vision

low self-confidence

Elian wants to start a business. He takes a personality test and discovers he possesses a trait that may reduce the likelihood he will succeed. Which of the following is that trait? Vision internal locus of control creativity low tolerance for risk

low tolerance for risk

Saul is the CEO of Summertime, Inc. He uses the resources of the firm to expand and diversify into winter sports areas. Saul would be classified as a(n) ________. venture capitalist stockholder entrepreneur manager

manager

Collin works for a large bank that recently merged with another financial institution. Word of layoffs has been discussed. Collin is most likely to become an entrepreneur in order to ________. obtain job security succeed financially improve his quality of life become his own boss

obtain job security

Sam knows that economic conditions are out of his control. However, he still believes that his efforts can lead to success. He exhibits the entrepreneurial characteristic: high energy level vision optimism need to achieve

optimism

The initial funding needed to launch a new venture comes from skunkworks projects seed programs pacing programs intrapreneurship

seed programs

Paterno routinely bids on contracts even though most of the other bidders are extremely large firms. Paterno believes his company offers better service at lower prices. He is exhibiting which personality trait common in entrepreneurs? high energy level self-confidence tolerance for failure creativity

self-confidence

After starting a web design company while still in college, Rodrigo sold the company after graduation. He then opened a computer repair shop; and most recently, he has started a marketing firm that specializes in social media. Rodrigo is an example of a(n): lifestyle entrepreneur. social entrepreneur. classic entrepreneur. serial entrepreneur.

serial entrepreneur.

A(n) ________ program is initiated by an employee who conceives of an idea. angel investor wealth creation skunkworks entrepreneurship

skunkworks

Louis works as an artist for a major textile company and created an innovation for producing designs. The company will implement Louis's idea as part of its ________ strategy. seed capital angel investment skunkworks entrepreneurship

skunkworks

Samuel Kaymen, founder of Stonyfield Farm, was devoted to fostering what type of entrepreneurship? franchise social serial classic

social

Which of the following has contributed the LEAST to the boom in entrepreneurship? demographic and economic trends education the rise of service industries information technology

the rise of service industries

The primary reasons people become entrepreneurs include all of the following reasons EXCEPT: to create one's own job security. to create employment opportunities for other people. to be one's own boss. to become a financial success.

to create employment opportunities for other people.

Which of the following is not listed as a reason people generally become entrepreneurs? insufficient rewards and recognition The desire to work for a large organization dissatisfaction with the work to have an opportunity to do a "greater good" for society

to have an opportunity to do a "greater good" for society

Enrique wants to start a new business, but his bank will not lend him the money he needs. Enrique saw an advertisement sponsored by a business organization that provides financing for promising small companies. The organization sponsoring the advertisement would be considered a(n) ________. entrepreneur venture capitalist franchiser intrapreneur

venture capitalist

All of the following are major advantages of buying an existing business over starting a new business EXCEPT: product or service is not known in the marketplace. obtaining financing is often easier. less risk is involved. existing suppliers and employees are in place.

product or service is not known in the marketplace.