Chapter 2 - Practice Quiz 2

Which of the following statements concerning family businesses is correct? Family members often work in the business but are not allowed to sit on the council. Family businesses employ about 20 percent of America's total workforce. Most CEOs at family firms tend to stay in their positions much longer than CEOs at nonfamily firms. Family businesses plan for succession using a critical-point plan.

Most CEOs at family firms tend to stay in their positions much longer than CEOs at nonfamily firms.

________ refers to the process of intergenerational transfer of business. Role conflict Succession Certification Access

Succession

Which of the following statements is not true of entrepreneurial teams? Team members in a start-up business are limited to the owners. An equity problem may arise when team members are putting in different amounts of money or time, but expecting identical returns. When setting up a partnership, plan for how the firm might end. A team may face conflict over how to make decisions, especially when the team is evenly split on choices.

Team members in a start-up business are limited to the owners.

Which of the following is an example of a second career entrepreneur? Cynthia, a 24-year-old, starting a consultancy business after graduating from college. Mark, a 30-year-old, starting a new business venture in stock trading after the failure of his previous business in real estate. Ursula, a 60-year-old, starting a business in shrimp trading after being retired for 5 years. Timothy, a 48-year-old, joining a real estate agency as a sales representative, after being downsized from his previous job.

Ursula, a 60-year-old, starting a business in shrimp trading after being retired for 5 years.

The motivations, cognitions, attitudes, aptitudes, and behaviors that lead to a propensity to create solutions to problems or seeking opportunities to do something new or better is called entrepreneurial mindset cognition passion perseverance

entrepreneurial mindset

The slowest growing sector of all U.S. businesses is women-owned businesses. true false

false

Certain businesses demand higher safety related rules. For example, window cleaners that specialize in high-rise buildings have certain rules and safety protocols. These specific rules would comprise the specialized business professionalization. infant-industry argument. industry-specific knowledge. key business functions.

industry-specific knowledge.

One approach to solving the problem of access involves the entrepreneur making extra efforts to do what? minimalize professionalization network persevere build their basic business competencies

network

Which of the following problems is closely related to role conflict? resource shortage lack of skills shortage of time perseverance

shortage of time

One of the major issues identified for second career entrepreneurs is keeping personal finances out of the business. true false

true

One way entrepreneurs display passion is by being persistently focused on the business. true false

true

Workers are opting for early retirement as corporations merge, downsize, and reorganize. true false

true