CH. 2 - Individual Leadership and Entrepreneurial Star-Ups

The Enneagram's nine personality types include which of the following? (Check all that apply.)

- Reformer - Achiever - Helper

_______ is a managerial theory believes individuals act to maximize their own benefit.

Agency theory

______ - ______ point is when a business has reached a level where the revenue coming into the firm is sufficient to cover its expenses.

Break-even

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

trigger

True or False: Today, women-led businesses are formed at a rate 50 percent lesser than that of men-led businesses.

False

The greater the debt an entrepreneur is willing to take on to start the business, the ___________ his or her risk tolerance.

higher

People should start a business that they _______.

will enjoy

Which of the following are characteristics of a family business?

- A family business has unique issues. - Family members work together to support the business.

Types of Firms

- An entrepreneurial business: It is owned and run by the same person(s). - A large, established corporation: The individuals who manage do not typically have substantial ownership in the company.

Which of the following statements regarding personal motivations are correct? (Check all that apply.)

- Are often more proactive - Often make career and life-altering changes regardless of practical advice - More relentlessly pursue their goals

Which of the following are typical triggers for starting a business? (Check all that apply.)

- Being laid off from a job - Reaching a point financially where the risk-return level of a proposed new business is tolerable - Being approached by friends or family with a new business idea

Identify the websites that help a company reach out to a wide community online to get funding and often advice in the process of raising those funds. (Check all that apply.)

- Crowdfunder.com - Kickstarter.com

The Big Five test comprises which of the following factors? (Check all that apply.)

- Emotional stability - Extroversion - Open-mindedness

Which of the following are pairs of variables in the Myers-Briggs test? (Check all that apply.)

- Extroversion - Introversion - Judgement-perception - Sensing-Intuiting

Which of the following groups might be included in an entrepreneur's key support network? (Check all that apply.)

- Friends from school - Former employers

Which of the following statements about women entrepreneurs are true? (Check all that apply.)

- They are one of the fastest-growing segments of entrepreneurs - They often run into a "glass ceiling" - They start up businesses at a rate of 50 percent more than men.

Which of the following are correct regarding the characteristics of large businesses? (Check all that apply.)

- They have greater excess resources - Knowledge is widely dispersed throughout the business. - No one person is critical to the business's survival.

Which of the following statements regarding entrepreneurial businesses are correct? (Check all that apply.)

- They have limited flexibility in responding to emergency issues such as the need to hire replacements if the company loses key individuals. - They are generally dependent on a single or a few individuals

Identify the features of circumstances motivators. (Check all that apply.)

- They tend to result in more of a defensive positioning - They result from environment changes

Which of the following NOT one of the three types of specific risks?

Network

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: It is advisable for an entrepreneur to ensure that sufficient financial resources are available prior to the start of a business.

True

Businesses in which ownership and employment are centered around a family are referred to as ______.

family business

Small Business Development Centers (SBDCs) provide ______

free advice to new businesses

People in an entrepreneur's network can help by providing ______ to a new business.

legitimacy

Entrepreneurs need to have a(n) ________ vision of what resources are necessary in order to be successful.

realistic

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

Entrepreneurs' prior experience plays a role in new business creation through ______.

their view of the world

An entrepreneur's support and resources are typically _______ to the individual and the location.

unique

Which of the following often leads young people to be pioneers in an area as they are not limited by the restrictions of the past?

The presence of bounded rationality

True or False: New businesses have greater flexibility in responding to changes that take place in their external environment.

True

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

True

Students need to consider their own resources and abilities early when they think about starting an entrepreneurial business because of the ______.

importance of an owner to a new business

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

incubator

How does support from companies in a network help a new firm? (Check all that apply.)

- It helps to indicate to others the staying power of the new firm. - It helps the new firm in obtaining credit.

____________ motivations come from the individuals themselves.

Personal

Having a network helps a new firm by providing ______.

a level of legitimacy

Large businesses often have ______.

extensive written procedures

Individuals from outside an industry are able to establish a new business in a manner not previously considered because they ______.

have bounded rationality

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.

more

Women of color account for ________ of businesses headed by women.

one-third

An excess of resources in an organization that allows for redundancy and the quick deployment of personnel is referred to as ______ ______.

organizational slack

There are successful business people in all ______ categories.

personality

A personality test can help one ______.

select the type of business to start

By providing resources that new business cannot otherwise afford on their own, incubators can help these businesses establish ______.

some level of legitimacy

When starting a business, one must understand the relationship between _______ and the expected return.

time commitment

To fully utilize family resources, entrepreneurs should ______. (Check all that apply.)

- Make a list of members that they have regular contact with - List the capabilities those individuals possess that might be helpful

Which of the following are advantages that small, new businesses have? (Check all that apply.)

- Owned and run by the same person(s). - Respond quickly to opportunities or threat as they arise - Small businesses fill niches that large firms simply cannot afford to fill.

Which of the following are supports that entrepreneurs rely on? (Check all that apply.)

- Social networks - Financial resources - Family

Which of the following are potential negative issues related to owning and operating a family-based business? (Check all that apply.)

- Take advantage of their personal relationship with the owner. - Bring non-work issues to the business. - More difficult to reprimand or fire

Identify the true statements about new businesses triggered by circumstances motivators. (Check all that apply.)

- The staying power of these businesses is determined by other competing opportunities - They are opportunistic start-ups.

Which of the following are reasons why owners are a great asset to a new business? (Check all that apply.)

- Their personal involvement - Their dedication