Entrepreneurship Chapter 1

True

The owner's business experience is a factor that contributes to the likelihood of success.

needs

Entrepreneurs try to identify unmet _____ of the marketplace.

d

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

False

A travel agency is a retailing business.

c

Aptitude is the ability to a. act quickly. b. evaluate interests. c. learn a particular kind of job. d. all of these

a

Competency involves a. having the right set of skills needed to get the job done. b. being able to look at things from different perspectives. c. working well with others. d. sharing ideas with others both verbally and in written form.

What does it take to be a successful entrepreneur?

Entrepreneurs must be independent, self-confident, persistent, goal-oriented, and creative. They must also have a strong work ethic and be able to work well with others.

c

From an entrepreneur's perspective, mistakes a. are always a negative. b. have no place in the problem-solving process. c. should be viewed as a learning experience. d. will never be made if the problem-solving process is correctly followed.

b

In a brainstorming session, you should a. evaluate each idea as soon as it is proposed. b. come up with as many ideas as possible. c. write down only solutions that seem practical. d. always work with at least two other trusted colleagues.

d

Since the end of the recession in 2009, small businesses have a. struggled more than large businesses. b. decreased in number. c. contributed an average of $2 billion per year to the U.S. economy. d. generated the majority of new jobs.

How can you find out about various business opportunities?

books, trade magazines, government publications, the Internet, the library, the SBA, trade shows, and other entrepreneurs.

true

A SMART goal is specific, measurable, attainable, realistic, and timely.

True

Defining and quantifying the problem is the first step in the problem-solving model.

False

Entrepreneurs and employees are both directly affected by the consequences of the decisions they make.

c

Financial goals can include a. the best retirement age. b. how many employees you will have in ten years. c. how much money you will earn. d. the monetary value of serving a community need.

true

Financial goals may include how quickly you can pay off your debts.

False

Following a brainstorming session, a decision should be made immediately.

True

Good communication and listening skills are vital to the problem-solving process.

False

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.

True

Quantifying a problem helps a business owner determine how much it is worth to them to solve it.

b

Researchers have determined that successful entrepreneurs a. do not need to set goals. b. want to make their own decisions. c. do not always know what they want. d. like to have someone else make decisions.

True

Small businesses contribute billions of dollars to the U.S. economy every year.

goal

Successful entrepreneurs are _____-oriented.

True

To determine if entrepreneurship is right for you, you need to perform a self- assessment.

c

Two key factors that aid an entrepreneur's commitment to a business are a. interests and sales experience. b. hobbies and sales experience. c. interests and past experiences. d. hobbies and athletic ability.

Why do entrepreneurs need to be good problem solvers?

Why do entrepreneurs need to be good problem solvers?

self-assessment

evaluation of your strengths and weaknesses

trade shows

special meetings where companies of the same or related industry display their products

aptitude

the ability to learn a particular kind of job

ideas

thoughts or concepts that come from creative thinking

c

A formal problem-solving model a. is used only to gather information. b. consists of five steps. c. helps people solve problems in a logical manner. d. is never necessary for everyday decisions.

b

About how many new businesses do not survive beyond five years? a. Nearly one-quarter b. About half c. Almost 90 percent d. About 10 percent

How do entrepreneurs choose what business to start?

Entrepreneurs research ideas that match their interests and goals and find an idea that might work.

True

Entrepreneurs try to meet the needs of the marketplace by supplying a product or service.

What role has entrepreneurship played in the U.S. economy?

Entrepreneurship has played an important role in the U.S. economy by providing job creation and product and service innovations.

True

Entrepreneurship involves risk, which is both an advantage and a disadvantage.

False

Everyone has the qualities and aptitude needed to become a successful entrepreneur.

financial

How much money you want to earn is a(n) ________ goal.

True

Manufacturing businesses produce the products they sell.

True

Many entrepreneurs center a business on a hobby.

a

Nonfinancial goals are important for an entrepreneur because they a. determine personal satisfaction. b. increase sales. c. enable a business to earn a profit. d. guarantee success

define

The first step in the problem-solving model is to ______ the problem.

False

There are generally four types of businesses: manufacturing, wholesaling, retailing, and franchising.

different types of entrepreneurial businesses.

Types of entrepreneurial businesses include manufacturing (produce products), wholesaling (distribute products between manufacturers and retailers), retailing (sell goods directly to consumers), and service (provide a service to other businesses or consumers) businesses. Others include agricultural businesses and mining and extracting businesses. Many types of businesses can be "green," and some focus on societal needs.

b

A person who takes the risk of a business venture is: a. not directly affected by the consequences of his or her decisions. b. an entrepreneur. c. an employee. d. sure to be successful.

c

A person who works for someone else is a. the one who receives the profits of the business. b. taking the risk of business venture. c. an employee. d. an entrepreneur.

a

A self-assessment is an evaluation of your a. strengths and weaknesses. b. past job experience. c. hobbies and interests. d. ability to act quickly.

False

Entrepreneurial businesses include retailing businesses, such as clothing and furniture stores, but do not include service businesses.

True

Entrepreneurs should not be afraid of making mistakes.

False

Identifying one or two possible solutions is usually sufficient.

rank

If it is not possible to quantify the alternatives in the fourth step of the problem-solving model, the decision maker may ____ each alternative.

c

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

intrapreneurs

employees that are managers who take direct responsibility for turning an idea into a profitable finished product through risk-taking and innovation.

characteristics of successful entrepreneurs

independent, self-confident, persistent, goal-oriented, creative, strong work ethic, and technologically up to date.

employees

people who are hired to work for someone else

entrepreneurs

people who own, operate, and take the risk of a business venture

opportunities

possibilities that arise from existing conditions

entrepreneurship

process of running a business of one's own

c

After the problem is defined and information gathered, you a. make your decisions. b. try to quantify the problem. c. identify various solutions. d. reach a consensus.

d

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.

d

An advantage of entrepreneurship is that entrepreneurs a. do not need to set goals. b. can supervise others. c. make all decisions by themselves. d. can work in a field that interests them.

bosses

An advantage of entrepreneurship is that entrepreneurs are their own _______ .

False

An advantage of entrepreneurship is that entrepreneurs make all decisions by themselves.

True

An advantage of entrepreneurship is that nobody tells an entrepreneur what to do.

b

An entrepreneur who is green focuses on a. helping others who are in need. b. conserving resources. c. operating with integrity. d. finding societal needs that are not being met by the government.

False

An opportunity is a thought or concept that comes from creative thinking.

True

Analyzing past experiences and jobs is a good way to come up with a business idea.

False

Aptitude is the ability to evaluate your strengths and weaknesses.

True

Assessing different business opportunities helps you identify those that have the best chance for success.

network

Attending conferences, seminars, and workshops enable entrepreneurs to _______.

True

Being a good team member involves commitment, cooperation, and creativity.

c

Brainstorming a. involves discussing a large number of ideas. b. is used to analyze practical ideas. c. is a creative problem-solving technique. d. none of these

False

Brainstorming is always done in a group setting; it is a useless activity for an individual.

realistic

Goals should be _____ , or represent things to which you are willing to commit.

d

Good communication is important in the problem-solving process because when trying to resolve problems and make decisions, you will likely need to a. interact with others. b. request information and express your ideas. c. listen to suggestions from others. d. all of these

risks

In comparing different business opportunities, you should look at the particular _______ associated with the business.

c

In evaluating alternatives and selecting the best option, you a. decide how to implement the best option. b. see if the selected alternative works. c. quantify or rank the alternatives. d. gather information about each alternative.

What factors contribute to helping a business succeed?

Major factors in a firm's success include having adequate capital; being large enough to have employees; the owner's education level, business skills, and experience; and the owner's motivation.

d

Manufacturing businesses a. sell services rather than products. b. take resources out of the ground so that they can be consumed. c. sell products directly to the people who consume them. d. produce the products they sell.

intuition

Many entrepreneurs make decisions casually or base them on ________.

False

Nonfinancial goals are only for entrepreneurs who are solely interested in financial gain.

d

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

b

Possibilities that arise from existing conditions are a. ideas. b. opportunities. c. goals. d. dreams.

False

Small businesses with fewer than 500 employees represent about 25 percent of all businesses in the United States today.

a

Special meetings where companies of the same industry or related industries display their products are a. trade shows. b. job fairs. c. poor places to learn about opportunities. d. entrepreneurial conventions.

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.

a

The Small Business Administration (SBA) a. publishes information that may be helpful for small businesses. b. has a department in most public libraries. c. buys products from entrepreneurs to help them make a profit. d. holds trade shows.

500

The Small Business Administration's Office of Advocacy defines a small business as an independent company having fewer than ___ employees. Small businesses make up 99.9% of the 22 million companies in the US

True

The best entrepreneurs use a formal problem-solving model to make decisions.

False

The failure rate for restaurants is higher than for other types of small businesses.

b

The final step in the problem-solving model is to a. take action. b. evaluate the action. c. evaluate alternatives and select the best option. d. identify various solutions.

True

The problem-solving process is not complete until the action is evaluated.

hobbies

To assess your suitability for entrepreneurship, you should consider your strengths, _____ weaknesses, , interests, past experiences, and aptitude.

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.

c

To determine your suitability for entrepreneurship, you should assess your a. strengths and weaknesses. b. interests. c. aptitude. d. all of these

d

When comparing different business opportunities, an entrepreneur should a. set financial goals. b. perform a self-assessment. c. set nonfinancial goals. d. determine the hours a week needed to run the business.

integrity

When operating with _____, entrepreneurs behave consistently in actions, values, methods, measures, principles, expectations, and outcomes.

d

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.

a

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

d

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

True

You can learn about business opportunities by talking to other entrepreneurs.

Ideas

_____ can arise from hobbies and interests, past experiences, and discovery or invention in response to an unmet need.

retailing

________ businesses sell products directly to the people who use or consume them.

brainstorming

a creative problem-solving technique that involves generating a large number of fresh ideas

problem-solving model

a formal process used to help solve problems in a logical manner

Why is it important for entrepreneurs to be good team members?

entrepreneurs must work as a team with all the stakeholders in their business.