MindTap, Chapter 1 Assignment

_____ are entrepreneurs who make contractual arrangements with established business chains rather than doing everything themselves.

Franchisers

Businesses that do not attract investors, but allow their owners to live the way they want to live are called _____ businesses.

Lifestyle

The main difference between lifestyle business owners and entrepreneurs is the way they perceive _____.

Opportunity

Which of the following statements is NOT one of the desirable traits of entrepreneurs listed by Spinelli and Adams? a. Tolerance of risk b. A domineering attitude c. Opportunity obsession d. Determination

b. A domineering attitude

Small companies are particularly adept at competing with larger companies when they focus on: a. Becoming a low-cost producer. b. Customer service. c. Gaining a large market share. d. Mass market advertising.

b. Customer service.

Entrepreneurs generally think differently about resources than do employee-managers in which of the following ways? a. Managers prefer bootstrapping; entrepreneurs tend to use only their own resources. b. Managers want larger budgets; entrepreneurs work to do more with less. c. Managers tend to barter for resources; entrepreneurs prefer cash transactions. d. Managers take on risk personally; entrepreneurs can offload the risk to equity investors.

b. Managers want larger budgets; entrepreneurs work to do more with less.

Entrepreneurs who start and lead small businesses contribute to the economy in which of the following ways? a. They make up the overwhelming majority of all businesses. b. They hire nearly half of all high-tech employees. c. They are increasingly going global, representing 97 percent of all exporters. d. All of the above.

d. All of the above.

Which of the following is MOST descriptive of entrepreneurial passion? a. The more passion an entrepreneur has, the more success he/she tends to have. b. Entrepreneurs should eliminate emotion from consideration and focus only on the facts. c. Passion makes entrepreneurs open to hearing criticism of their ideas. d. An entrepreneur must have passion, but unchecked passion can be destructive.

d. An entrepreneur must have passion, but unchecked passion can be destructive.