fm 116 ch 7

Entrepreneurs with an internal locus of control tend to:

feel that their success or failure is largely the result of their own actions.

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

flexible schedule

In the context of funding options for small businesses, which of the following statements is true of the U.S. Small Business Administration (SBA)?

It lends microloans through community nonprofit organizations.

In the context of various strategies to become a successful small business owner, which of the following statements is true of an effective business plan?

It takes about 6 months to write

Which of the following scenarios illustrates entrepreneurship?

Jill who has a degree in landscaping has started her own landscaping service business and has hired several employees under her supervision.

Which of the following is a similarity between angel investors and venture capital firms?

Both put in money in exchange for a share of ownership.

Sheila wants to start her own business that would specialize in fashion accessories. However, she decides to continue with her current job at Potters Fashion Inc. as a fashion consultant for another three years to get to know the industry better. Which of the following entrepreneurial strategies is Sheila executing?

Gaining experience

Which of the following statements is true of small businesses?

They have more scope to provide personal customer service than large businesses.

In the context of the U.S. economy, small businesses:

comprise more than 99% of inner-city business establishments.

People who risk their time, money, and other resources to start and manage a business are known as _____.

entrepreneurs

Which of the following is an advantage of starting one's own business?

independence

Colleen lost an important business project. According to her, she would not have lost the project if she had been organized in her work approach. This scenario indicates that Colleen most likely has a(n) _____.

internal locus of control

In the context of various launching options when starting a new business, which of the following statements is a drawback associated with buying a franchise?

it has less opportunity for creativity

Entrepreneurs must understand that no conventional lending source, whether private or government, will:

lend all of a start-up's funding.

Adrian recently lost his job and has been unsuccessful in finding a new one. To sustain himself and his family, he decides to open a small café. He believes that the café is his only economic option. Adrian is now trying to acquire funds from family and friends to open his café. In this scenario, Adrian is a(n) _____.

necessity entrepreneur

Two companies offer Gayle a job. The first is a successful, venture capital-backed, competently led start-up that has been operating for over a year. The second is a well-established corporation that has been running operations for 50 years. Gayle, after considering factors such as his family, decides to join the well-established corporation. This is most likely because:

start-ups find it difficult to provide health insurance coverage to their employees.

_____ are companies that invest in start-up businesses with high growth potential in exchange for a share of ownership.

venture captial firms