MGMT 340 Midterm C1

The young, job-creating small companies are known as ________. Select one: a. "assertive" b. "aggressive" c. "antelopes" d. "gazelles

"gazelles"

Most startup companies can expect to need ________ capital than they anticipate. a. the same b. more c. less d. within 10% of the

more

The majority of new business owners work ________. a. fewer than 40 hours per week b. more than 70 hours per week c. more than 40 hours per week d. more than 80 hours per week

more than 40 hours per week

Entrepreneurs who start businesses because they cannot find work any other way are ________. a. corporate cast-offs b. necessity entrepreneurs c. serial entrepreneurs d. opportunity entrepreneurs

necessity entrepreneurs

Within five years, ________ percent of new businesses will fail. Select one: a. 45 b. 21 c. 51 d. 65

51

Of the 28 million businesses in the United States, more than ________ percent are considered small. a. 75 b. 88 c. 50 d. 99

99

Which of the following technological forces is driving the entrepreneurial trend in our nation? a. Cloud computing. b. Mobile marketing. c. The Internet. d. All of these

All of these

Small companies that have expanded successfully into foreign markets tend to rely on all but which of the following strategies? a. Utilize government resources designed to help small companies establish an international presence. b. Research foreign markets thoroughly. c. Focus on many countries initially. d. Forge alliances with local partners.

Focus on many countries initially.

In addition to the opportunity to create their own destiny and enjoy what they do, entrepreneurs also benefit from the ability to ________. a. make a difference in an area important to them and be recognized for those efforts b. earn tremendous wealth without risk and uncertainty c. create wealth without providing true value d. exploit the opportunities that the free enterprise system offers

make a difference in an area important to them and be recognized for those efforts

The primary cause of small business failures is ________. a. poor location b. management mistakes c. improper inventory control d. the lack of capital

management mistakes

Small companies that operate globally from their inception are referred to as ________. a. intrapreneurial ventures b. international companies c. micromultinationals d. global companies

micromultinationals

________ percent of all U.S. businesses are family-owned and managed. a. Twenty-five b. Ninety c. Seventy d. Fifty

ninety

According to the U.S. Small Business Administration, a common delineation of a small business is one that employs fewer than ________ people. a. 100 b. 500 c. 50 d. 250

100

Small companies are incubators of new sales ideas, products and services and create ________ times more patents per employee than large companies. a. 5 b. 10 c. 16 d. 3

16

Approximately ________ percent of corporate managers who are "cast off" as companies downsize become entrepreneurs. a. 20 b. 45 c. 15 d. 5

20

It is estimated that ________ percent of new businesses fail within two years, while ________ percent fail within five years. a. 21; 51 b. 35; 41 c. 51; 31 d. 51; 64

21; 51

The average age of the first-time entrepreneurs in the United States is nearly ________. a. 44 b. 25 c. 19 d. 31

44

Research shows that the top-performing ________ percent of small companies create 67 percent of the net new jobs in the economy. a. 80 b. 5 c. 90 d. 10

5

Which of the following is not a characteristic of a successful working relationship between copreneurs? Select one: a. Complementary business skills. b. Compatible business and life goals. c. A clear definition of one partner as "boss" and the other as "subordinate". d. A clear division of roles and authority based on each partner's skills and abilities.

A clear definition of one partner as "boss" and the other as "subordinate"

Which of the following is a benefit of entrepreneurship? a. The opportunity to gain control over your own destiny. b. The opportunity to reach your full potential. c. The opportunity to do what you enjoy. d. All of these

All of these

Which of the following is a characteristic of copreneurs? a. Mutual respect b. Complementary business skills c. A clear division of roles and authority d. All of these

All of these

Which of the following statements concerning small businesses and international markets is false? Select one: a. Because exporting is so complex and requires a company to have so many international experts on staff, exporting is not feasible for small businesses. b. Although terrorism and global recession have slowed the growth of international trade somewhat, global opportunities for small businesses have a long-term positive outlook. c. Small companies comprise 97 percent of all businesses engaged in exporting, yet they account for only 30 percent of the nation's export sales. d. Although the U.S. is an attractive market, approximately 95 percent of the world's population lives outside its borders.

Because exporting is so complex and requires a company to have so many international experts on staff, exporting is not feasible for small businesses.

Which of the following was not identified as one of the suggestions for small business success? a. Manage your financial resources and understand financial statements. b. Know your business in depth. c. Develop a business plan as you grow your business. d. Learn to manage people successfully.

Develop a business plan as you grow your business.

Which of the following statements is not true regarding the diversity of entrepreneurs? a. Minority-owned businesses have come a long way in the past decade, and their success rate is climbing. b. Minority-owned businesses now account for approximately 22 percent of all businesses in the U.S. c. The numbers of part-time and home-based entrepreneurs are rising. d. Immigrants with more education and experience than those of the past are coming to the U.S. and succeeding in entrepreneurial ventures.

Minority-owned businesses now account for approximately 22 percent of all businesses in the U.S.

Which of the following is NOT one of the forces driving the entrepreneurial trend in our country? a. International opportunities. b. E-commerce and the World Wide Web. c. Shift away from a service economy. d. Independent lifestyle.

Shift away from a service economy.

________ entrepreneurs are business builders who seek innovative solutions to some of society's most vexing problems. a. Social b. Serial c. Opportunistic d. Necessity

Social

Which of the following statements about women-owned businesses is false? a. The number of women-owned businesses is growing slower than the national average. b. The businesses women start tend to be smaller than those men start. c. Women-owned companies are far less likely to attract equity capital investments as those that men start. d. Women own about 28 percent of all privately-held businesses in the U.S.

The number of women-owned businesses is growing slower than the national average.

Entrepreneurs typically possess ________. a. a high level of commitment, have a tolerance for ambiguity, are flexible and tenacious b. specialized technical abilities c. a set of unique skills that is usually accompanied by advanced degrees in several areas d. the ability to easily access capital

a high level of commitment, have a tolerance for ambiguity, are flexible and tenacious

Entrepreneurs are characterized by ________. a. skill at organizing b. desire for immediate feedback c. high energy levels d. All of these

all of these

Entrepreneurs can increase their chances for success if they ________. a. know their business in depth and develop a solid business plan b. manage their financial resources and understand financial statements c. learn to manage people and keep in touch with how they react to stress and balance their health needs with the needs of the business d. All of these

all of these

Factors that feed the economic boom behind entrepreneurship include ________. a. demographic and economic factors b. technology and cloud computing c. the shift to a service-based economy and international opportunities d. All of these

all of these

The nation's small businesses ________. a. employ more than 49 percent of the nation's private sector workforce b. create more jobs than do big businesses c. account for 47 percent of business sales d. All of these

all of these

The profile of an entrepreneur includes ________. a. a desire for responsibility and moderate risk b. confidence in the ability to succeed and determination c. a high level of energy, a desire for immediate feedback and a future orientation d. All of these

all of these

Which of the following is/are true regarding business plans? a. Provide a pathway to success. b. Allow entrepreneurs to replace faulty assumptions with facts before making the decision to go into business. c. Create a benchmark against which entrepreneurs can measure actual company performance. d. All of these

all of these

Small companies ________.

are the leaders in offering training and advancement opportunities to workers

Entrepreneurs may find benefit from the Internet due to its potential ________. a. to take all pressure off other attributes of the business venture b. if the organization is willing to invest millions of dollars in this effort c. as a relatively low-cost solution to expand its revenue-generating abilities d. only if the entrepreneur has a high level of technical abilities

as a relatively low-cost solution to expand its revenue-generating abilities

Melinda and John Perez, both corporate attorneys in New York City, have grown tired of their lengthy daily commute, the stress of their jobs, and the overbearing policies of their employers. They have decided to leave their six-figure jobs and together open a guide service in Wyoming. Melinda and John are examples of ________. a. corporate castoffs and copreneurs b. copreneurs and serial entrepreneurs c. corporate dropouts and copreneurs d. corporate castoffs and corporate dropouts

corporate dropouts and copreneurs

An entrepreneur is one who ________. a. creates a new business concept for the purpose of achieving profit and growth by assembling the necessary resources to capitalize on identified opportunities b. understands the process of developing an idea and does not need to understand what it means to bring that idea to a viable business concept c. is willing to attempt to implement a business concept and then give up if it does not meet immediate expectations d. knows that the concept they are about to develop will result in a profitable business

creates a new business concept for the purpose of achieving profit and growth by assembling the necessary resources to capitalize on identified opportunities

Women in business still experience ________ as they attempt to break the "glass ceiling." a. opportunities b. success c. discrimination d. ease of navigation

discrimination

"Copreneurs" are defined as ________. a. those entrepreneurs that will eventually combine their business with another venture b. entrepreneurs that work part-time c. entrepreneurial couples that work together as co-owners of their business d. highly successful entrepreneurs with prior company experience and background

entrepreneurial couples that work together as co-owners of their business

One of the most significant economic developments in recent business history relates to the ________. a. growth of blue-chip corporations b. entrepreneurial spirit c. development of Pacific Rim countries d. additional employment opportunities offered by government institutions

entrepreneurial spirit

The only people who ________ are those who never do anything or never attempt anything new. a. fail b. succeed c. profit d. prosper

fail

One hallmark of successful entrepreneurs is the ability to ________. a. be willing to gamble b. repeat the same mistake c. fail intelligently d. overlook past successes

fail intelligently

The demographic attributes of successful entrepreneurs are ________. a. are key predictors that determine how long the business will survive b. limited to specific ages, genders, and ethnic backgrounds c. highly diverse relating to age, gender, and ethnicity d. uncertain and have not been fully studied or analyzed

highly diverse relating to age, gender, and

International opportunities are ________. a. highly limited for entrepreneurs b. risky and do not merit serious consideration by the entrepreneur c. clearly out of reach for entrepreneurial businesses d. now within the reach of entrepreneurial businesses and may present significant opportunities

now within the reach of entrepreneurial businesses and may present significant opportunities

Entrepreneurs tend to be overly ________ and commonly misjudge the ________ requirements of going into business. a. optimistic; professional b. optimistic; personal c. optimistic; financial d. pessimistic; financial

optimistic; financial

Most entrepreneurs believe that ________ is what matters most, but ________ is the most important financial resource for a small business owner. a. profit; inventory b. cash; profit c. inventory; cash d. profit; cash

profit; cash

The majority of small companies are concentrated in the ________ and ________ industries. a. manufacturing; service b. wholesale; retail c. manufacturing; retail d. retail; service

retail; service

The recent number of job losses in large corporations compared to the jobs created by small business has changed the perception of ________ for launching a new business. Select one: a. financing opportunities b. prestige c. short-term potential d. risk

risk

John has come to you for advice on starting a business venture. He wants to know the best way to gain the experience he'll need. You suggest that he ________. a. read a small business book b. determine his weaknesses and return to school for a term or two c. seek knowledge and experience in the field he wishes to enter d. just jump in and learn as he goes

seek knowledge and experience in the field he wishes to enter

Entrepreneurs who repeatedly start businesses and grow to a sustainable size before striking out again are known as ________ entrepreneurs. a. opportunistic b. classic c. serial d. persistent

serial

Nearly ________ of entrepreneurs start their businesses between the ages of 20 and 44 and the number of Americans in that age range currently is ________ . a. one-fourth; 85 million b. one-half; 8.5 million c. three-fourths; 103 million d. two-thirds; 85,000

three-fourths; 103 million

Potential drawbacks of entrepreneurship may include ________. a. uncertainty of income, risk, long hours, and the immediate accumulation of wealth b. uncertainty of income, risk, easy hours, and frequent vacations c. certainty of income, risk, long hours, and high stress d. uncertainty of income, risk, long hours, and high stress

uncertainty of income, risk, long hours, and high stress

All of the following are characteristics of the typical entrepreneur except ________. a. desire for immediate feedback b. value of money over achievement c. a future orientation d. confidence in his/her ability to succeed

value of money over achievement