Entrepreneurship Chapter 1

Brainstorming is...

A creative problem-solving technique.

A person who works for someone else is...

An Employee

It is not necessary to determine how much money it will take to start a business because you will be able to borrow the money that you need. (T/F)

False

There are generally four types of businesses: manufacturing, wholesaling, retailing, and franchising. (T/F)

False

Since the end of the recession in 2009, small businesses have...

Generated the majority of new jobs.

About how many new businesses do not survive beyond five years?

About Half.

Which of the following is a major factor in a small business's success? a. Having adequate capital, b. The owner's education level, c. The owner's reason for starting the business, d. All of these.

All of these

A disadvantage of entrepreneurship is that entrepreneurs a. face irregular incomes. b. must make all decisions by themselves. c. work long hours. d. all of these

All of these.

People who excel at their jobs a. have generally learned much about their profession. b. see how successful marketing is conducted. c. know how to satisfy customer needs. d. all of these

All of these.

A person who takes the risk of a business venture is...

An Entrepreneurship

To determine your suitability for entrepreneurship, you should assess your...

Aptitude.

An advantage of entrepreneurship is that entrepreneurs...

Can work in a field that interests them.

In a brainstorming session, you should...

Come up with as many ideas as possible.

An entrepreneur who is green focuses on...

Conserving Resources.

Which of the following is not a characteristic of a successful entrepreneur? a. Determination b. Creativity c. Dependence d. Self-confidence

Dependence.

Nonfinancial goals are important for an entrepreneur because they...

Determine personal satisfaction.

When comparing different business opportunities, an entrepreneur should...

Determine the hours a week needed to run the business.

The final step in the problem-solving model is to...

Evaluate the action

Which of the following is not a step in the decision-making process? a. Take action b. Gather information c. Identify various solutions d. Evaluate the problem

Evaluate the problem

A travel agency is a retailing business. (T/F)

False

An advantage of entrepreneurship is that entrepreneurs make all decisions by themselves. (T/F)

False

An opportunity is a thought or concept that comes from creative thinking. (T/F)

False

Aptitude is the ability to evaluate your strengths and weaknesses. (T/F)

False

Brainstorming is always done in a group setting; it is a useless activity for an individual. (T/F)

False

Entrepreneurial businesses include retailing businesses, such as clothing and furniture stores, but do not include service businesses. (T/F)

False

Entrepreneurs and employees are both directly affected by the consequences of the decisions they make. (T/F)

False

Everyone has the qualities and aptitude needed to become a successful entrepreneur. (T/F)

False

Following a brainstorming session, a decision should be made immediately. (T/F)

False

Identifying one or two possible solutions is usually sufficient. (T/F)

False

Nonfinancial goals are only for entrepreneurs who are solely interested in financial gain.(T/F)

False

Small businesses with fewer than 500 employees represent about 25 percent of all businesses in the United States today. (T/F)

False

Successful entrepreneurs need to be self-confident because they must make decisions alone, but they do not need to be creative because they can hire creative people. (T/F)

False

The failure rate for restaurants is higher than for other types of small businesses. (T/F)

False

Which of the following is a retailing business? Automotive repair shop Farm Travel agency Grocery store

Grocery store

Competency involves...

Having the right set of skills needed to get the job done.

A formal problem-solving model...

Helps people solve problems in a logical manner.

Financial goals can include...

How much money you will earn

After the problem is defined and information gathered, you...

Identify various solutions.

Two key factors that aid an entrepreneur's commitment to a business are....

Interest and past experiences.

Aptitude is the ability to...

Learn a particular kind of job.

Possibilities that arise from existing conditions are...

Opportunities

Manufacturing businesses...

Produce the products they sell.

The Small Business Administration (SBA)...

Publishes information that may be helpful for small businesses.

In evaluating alternatives and selecting the best option, you...

Quantify or rank the alternatives.

From an entrepreneur's perspective, mistakes...

Should be viewed as a learning experience

A self-assessment is an evaluation of your...

Strengths and weaknesses.

Entrepreneurship involves risk, which is both an advantage and a disadvantage. (T/F)

True

Financial goals may include how quickly you can pay off your debts.(T/F)

True

Good communication and listening skills are vital to the problem-solving process. (T/F)

True

Manufacturing businesses produce the products they sell. (T/F)

True

Many entrepreneurs center a business on a hobby. (T/F)

True

Quantifying a problem helps a business owner determine how much it is worth to them to solve it. (T/F)

True

Small businesses contribute billions of dollars to the U.S. economy every year. (T/F)

True

The best entrepreneurs use a formal problem-solving model to make decisions. (T/F)

True

The owner's business experience is a factor that contributes to the likelihood of success. (T/F)

True

The problem-solving process is not complete until the action is evaluated. (T/F)

True

To decide whether or not a business opportunity is realistic for you, compare your background and experience with the experience of people who own that kind of business. (T/F)

True

To determine if entrepreneurship is right for you, you need to perform a self- assessment. (T/F)

True

You can learn about business opportunities by talking to other entrepreneurs. (T/F)

True

All of the following can help you determine if a business opportunity is realistic except a. the rate of business failure. b. the market for that kind of business. c. the background needed to run that kind of business. d. the interest rates for loans at different banks.

The interest rates for loans at different banks.

Special meetings where companies of the same industry or related industries display their products are...

Trade Shows

A SMART goal is specific, measurable, attainable, realistic, and timely. (T/F)

True

An advantage of entrepreneurship is that nobody tells an entrepreneur what to do. (T/F)

True

Analyzing past experiences and jobs is a good way to come up with a business idea. (T/F)

True

Assessing different business opportunities helps you identify those that have the best chance for success. (T/F)

True

Being a good team member involves commitment, cooperation, and creativity. (T/F)

True

Defining and quantifying the problem is the first step in the problem-solving model. (T/F)

True

Entrepreneurs should not be afraid of making mistakes. (T/F)

True

Entrepreneurs try to meet the needs of the marketplace by supplying a product or service. (T/F)

True

Researchers have determined that successful entrepreneurs....

Want to make their own decisions.