Quiz- Chapter 1 + Six types of startups

Suppose you are a Small Business Development Center counselor and you're looking at the personality profiles of five potential entrepreneurs. Based on the profiles, which individual has the most desirable mix of personal characteristics to become a successful entrepreneur?

Candidate A: visionary, energetic, moderate risk taker.

According to the consensus of the research, some people are genetically predisposed to be entrepreneurs.

False

Entrepreneurs are motivated primarily by money.

False

The number one reason that people become entrepreneurs is to pursue financial rewards.

False

In the book The Theory of Economic Development, ___ argued that entrepreneurs develop new products and technologies that, over time, make current products and technologies obsolete. This process is called creative destruction.

Joseph Schumpeter

The number one characteristic shared by successful entrepreneurs is ________.

Passion for the business

According to Steve Blank on the "Six Types of Startup", which type of startup is created to "feed the family"?

Small business startups

In regard to patent activity (issuance), which of the following statements is correct?

Small businesses outperform their larger counterparts.

Which of the following is an accurate characterization of interest in entrepreneurship?

There is tremendous interest in entrepreneurship across the world.

According to Chapter 1, a sentiment that venture capitalists often express is that ___.

They would rather fund a strong entrepreneur with a mediocre business idea than fund a strong business idea with a mediocre entrepreneur.

According to the Global Entrepreneurship Monitor (GEM) 2015-2016 study, the majority of people in high-income countries are drawn to entrepreneurship ____.

To take advantage of an attractive opportunity

Entrepreneurs are usually moderate, rather than high, risk-takers.

True

In terms of the "types" of startup firms, entrepreneurial firms bring new products and services to market.

True

According the the textbook, the number one reason that people become entrepreneurs is to___.

be their own boss

As new products that are better than the existing generation of products are introduced, sales normally increase because the new products provide consumers increased value or worth. This process, which is called ________, stimulates economic activity, which is a good thing for the economy.

creative destruction

Alex and Patty Webb launched a firm several years ago and have been particularly successful in introducing new products to the marketplace. One thing that Alex and Patty are particularly good at is translating their thoughts, creativity, and imaginations into products that reach the marketplace. The ability to make this happen is most closely related to which of the following characteristics of successful entrepreneurs?

execution intelligence

According to the textbook, the four characteristics of successful entrepreneurs are ___.

passion for the business, tenacity despite failure, product/customer focus, and execution intelligence

Stacey Wills, who is at heart a craftsperson, recently started a firm to manufacturer a new innovative food blender. Stacey's desire is to sell her food blender to as many people as possible because she firmly believes in the merits of her product. Stacey's story best illustrates which of the following characteristics, or attributes, of a successful entrepreneur?

product/customer focus

Colorado Sandwich, Soup and Salad is a casual dining restaurant that has been owned by Stephanie Peterson for the past 14 years. The restaurant offers a menu that is typical for casual dining restaurants and affords Stephanie a level of income that is similar to what she would earn in a conventional job. According to the textbook, Colorado Sandwich, Soup and Salad is an example of a(n) ________ firm.

salary-substitute

According to Chapter 1, investors often cite the ___ as their most important criterion in the decision to fund new ventures.

strength of the entrepreneur