ENT Chapter 2

The Enneagram's nine personality types include which of the following? (Check all that apply.) A. Helper B. Reformer C. Achiever D. Businessman

A. B. D.

People in an entrepreneur's network can help by providing ______ to a new business. A. legitimacy B. capital C. budgetary control D. management personnel

A. legitimacy

Which of the following are supports that entrepreneurs rely on? (Check all that apply.) A. Financial resources B. Social networks C. Family D. Current boss

A. B. C.

Which of the following are correct regarding the characteristics of large businesses? (Check all that apply.) A. No one person is critical to the business's survival. B. Knowledge is widely dispersed throughout the business. C. They do not typically hire outside experts due to their size. D. They have greater excess resources.

A. B. D.

Which of the following statements regarding personal motivations are correct? (Check all that apply.) A. Entrepreneurs who are driven by personal motivators often make career and life-altering changes regardless of practical advice. B. Entrepreneurs who are driven by personal motivators more relentlessly pursue their goals. C. Entrepreneurs who are driven by personal motivators often take advantage of a sudden change in the business environment. D. Entrepreneurs who are driven by personal motivators are often more proactive.

A. B. D.

Personality tests can _____. A. help one better understand one's traits and tendencies B. help one decide whether one is capable of starting a business C. help one determine which industry to pursue D. help one determine which career to pursue

A. help one better understand one's traits and tendencies

Which of the following are advantages that small, new businesses have? (Check all that apply.) A. Small businesses have more resources available to them. B. Small businesses can respond quickly to opportunities or threats as they arise. C. Small businesses fill niches that large firms simply cannot afford to fill. D. Small businesses are owned and run by the same person(s).

B. C. D.

Which of the following are components of the entrepreneurial orientation concept? (Check all that apply.) A. Financial expertise B. Risk tolerance C. Prior experience D. Personality orientation

B. C. D.

Personality tests can _____. A. help one determine which industry to pursue B. help one decide whether one is capable of starting a business C. help one determine which career to pursue D. help one better understand one's traits and tendencies

D. help one better understand one's traits and tendencies

____ motivations come from the individuals themselves.

Personal

There are successful business people in all ____ categories.

Personality

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

True

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: The Myers-Briggs test is one of the most widely used personality tests.

True

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

incubator

Starting a business is often the result of an event or condition within an individual's environment called a(n)

trigger

Identify a true statement about the circumstantial motivators for starting a business. A. They tend to result in more of a defensive positioning than do personal motivations. B. They are considered the strongest motivations. C. They drive people to make career and life-altering moves irrespective of practical advice. D. They come from the individuals themselves.

A. They tend to result in more of a defensive positioning than do personal motivations.

Identify a true statement about organizational slack. A. It is not a typical feature of large, well-established companies. B. It provides large organizations with flexibility that is unavailable to the typical entrepreneurial venture. C. It does not include the financial resources of a large organization. D. It offers limited flexibility to firms in responding to emergency issues such as hiring replacements of key individuals.

B. It provides large organizations with flexibility that is unavailable to the typical entrepreneurial venture.

The greatest advantage of an entrepreneurial business is that it is owned and run by _____. A. different people B. the same person(s)

B. the same person(s)

The underlying philosophy of the ______ test is that people are a result of all the experiences of their life. A. Big Five B. Myers-Briggs C. Enneagram D. Jung-Freud

C. Enneagram

_____ is a managerial theory that believes individuals act to maximize their own benefit. A. Critical theory B. Assertion theory C. Contract theory D. Agency theory

D. Agency theory

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: The high level of family commitment is a key reason why family businesses are able to survive and prosper.

True

Which of the following statements about family members are true? (Check all that apply.) A. Family members are likely to serve as a reality check and support structure. B. Family members best know one's abilities and shortcomings. C. Family members are likely to be willing to contribute time and money to the new business. D. Family members are most likely to tell you only positive things.

A. B. C.

Identify the typical triggers for starting a business. (Check all that apply.) A. Receiving evidence that an idea is not only doable, but there is a concrete way to improve on a given problem B. Experiencing the inability to climb the corporate ladder due to circumstances C. Being spurred to action by attending a seminar, reading a book, or talking with successful entrepreneurs D. Having a lot to lose financially by a failure E. Being hired by an established company

A. B. C. E.

New business owners need to be sure that the level of risk is consistent with their ______, ______, and ______. (Check all that apply.) A. family situation B. break-even point C. values D. background

A. C. D.

Which of the following are components of the entrepreneurial orientation concept? (Check all that apply.) A. Risk tolerance B. Financial expertise C. Prior experience D. Personality orientation

A. C. D.

Which of the following statements regarding entrepreneurial businesses are correct? (Check all that apply.) A. They are generally dependent on a single person or a few individuals. B. No one person is crucial to the survival of the business, even the president of the company. C. They have strong structures such as extensive written procedures and clear lines of responsibility. D. They have limited flexibility in responding to emergency issues such as the need to hire replacements if the company loses key individuals.

A. D.

Which of the following statements about agency theory are correct? (Check all that apply.) A. Agents can be relied on to always act in the best interests of the business. B. Agents often maximize their own benefit. C. Managers are considered agents. D. Owners always act to maximize the value of the business.

B. C. D.

Large business often have _____? A. few written procedures B. extensive written procedures C. limited flexibility to respond to emergencies D. concentrated knowledge held by the management team

B. extensive written procedures

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. A. less B. more

B. more

A personality test can help one _____. A. decide not to start a business B. select the type of business to start C. determine which business partner to select D. choose funding sources

B. select the type of business to start

Which of the following is NOT one of the three types of specific risks? A. Strategic B. Financial C. Market retaliation D. Network

D. Network

Which of the following statements is directly associated with the circumstantial motivators for starting a business? A. People desire more flexibility with their families, living in a region they want, or improving their standard of living. B. Motivations come from the individuals themselves. C. People make career moves irrespective of practical advice. D. The staying power of an opportunistic start-up is mainly determined by

D. The staying power of an opportunistic start-up is mainly determined by

Potential entrepreneurs must understand their level of tolerance to _____

risk

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

support