Chapter 7 BUSI 1301

In the context of opportunities and threats, overhead costs for small businesses:

are often lower than big companies.

_____ is a deep-seated sense that forces other than the individual are responsible for what happens in his or her life.

An external locus of control

Who among the following people is most likely to become a necessity entrepreneur?

A person who experiences discrimination in the standard workplace

Julian wants to open a bakery. He uses his savings and borrows some funds from his family to start his business. In the given scenario, Julian uses _____ to fund his business.

personal resources

Which of the following is an advantage of starting a business from scratch?

You do not have to deal with a prior owner's bad decisions.

In the context of small business opportunities, because of their size, many small firms can:

offer personal customer service.

Lester owns a small law firm and has a 10-hour workday. Despite keeping long hours, he is open to working on weekends and holidays if required. He also responds to late-night calls from clients. Which of the following entrepreneurial characteristics is highlighted in the given scenario?

Energy

Neman, a single parent, quit his job and started a small independent business because he was unable to give adequate attention to his child. Being an entrepreneur gives him the freedom to give undivided attention to his child without jeopardizing his work. Which of the following advantages of entrepreneurship is highlighted in the given scenario?

Flexibility

Which of the following categories of people is most likely to step into entrepreneurship?

People who have trouble being subordinates because of their personalities

Identify a true statement about angel investors.

They invest in promising start-up companies because they want to make money for themselves.

Small business start-ups are likely to find that getting commercial loans are:

difficult because lenders are reluctant to give loans to firms that do not have a track record.

Technological tools such as the Internet and email have:

made it easy for small business owners to manage their firms on the go.