Chapter 1 Entrepreneurship 1-4 review

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

A

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

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. holds trade shows. d. buys products from entrepreneurs to help them make a profit.

A

A person who takes the risk of a business venture is

A Entrepreneur

A person who works for someone else is

A employee

About how many new businesses do not survive beyond five years?

About half

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

B

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

B

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

B

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

B

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

B

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

B

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

C

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

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

C

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

C

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

C

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

C

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

C

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

D

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

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

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

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

D

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

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

D

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

D

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

D

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

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.

D

A travel agency is a retailing business. True or False?

False

An advantage of entrepreneurship is that entrepreneurs make all decisions by themselves. True or False?

False

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

False

Aptitude is the ability to evaluate your strengths and weaknesses. True or False?

False

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

False

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

False

Entrepreneurs and employees are both directly affected by the consequences of the decisions they make. True or False?

False

Everyone has the qualities and aptitude needed to become a successful entrepreneur. True or False?

False

Following a brainstorming session, a decision should be made immediately. True or False?

False

Identifying one or two possible solutions is usually sufficient. True or False?

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 or False?

False

Nonfinancial goals are only for entrepreneurs who are solely interested in financial gain. True or False?

False

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

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. True or False?

False

The failure rate for restaurants is higher than for other types of small businesses. True or False?

False

There are generally four types of businesses: manufacturing, wholesaling, retailing, and franchising. True or False?

False

Which of the following is a retailing business?

Grocery store

Since the end of the recession in 2009, small businesses have

Guaranteed the majority of new jobs

Produces the products they sell.

Manufacturing business

A SMART goal is specific, measurable, attainable, realistic, and timely. True or False?

True

An advantage of entrepreneurship is that nobody tells an entrepreneur what to do. True or False?

True

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

True

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

True

Being a good team member involves commitment, cooperation, and creativity. True or False?

True

Defining and quantifying the problem is the first step in the problem-solving model. True or False?

True

Entrepreneurs should not be afraid of making mistakes. True or False?

True

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

True

Entrepreneurship involves risk, which is both an advantage and a disadvantage. True or False?

True

Financial goals may include how quickly you can pay off your debts. True or False?

True

Good communication and listening skills are vital to the problem-solving process. True or False?

True

Manufacturing businesses produce the products they sell. True or False?

True

Many entrepreneurs center a business on a hobby. True or False?

True

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

True

Small businesses contribute billions of dollars to the U.S. economy every year. True or False?

True

The best entrepreneurs use a formal problem-solving model to make decisions. True or False?

True

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

True

The problem-solving process is not complete until the action is evaluated. True or False?

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. True or False?

True

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

True

You can learn about business opportunities by talking to other entrepreneurs. True or False?

True

An entrepreneur who is green focuses on

conserving resources