Ch.7

2. Entrepreneurs, as a general group, dislike risk taking.

false

5. Multipreneurs are businesspeople who have tried a succession of entrepreneurial start-ups without finding an area in which they could be successful.

false

13. Who provides the start-up financing for the majority of new small businesses?

the business owner and his or her family and friends

6. All of the following are characteristics of an entrepreneurial personality EXCEPT:

the willingness to be a follower rather than a leader

3. Entrepreneurs are people with vision, drive, and creativity, who are willing to take the risk of starting and managing a business to make a profit.

true

4. Entrepreneurs are typically innovators who start companies to pursue their ideas for a new product or service.

true

14. Businesses close down for many reasons. Which of the following is NOT a typical reason for a business failure?

Expenses were lower than the owner exected.

15. _________________________is at the core of most business failures.

Inadequate planning

1. A entrepreneur is a person who opens and manages his or her own business.

True

10. Andy Yocum was looking to start a small business so he could be his own boss. While golfing one day, he saw prime advertising space on the flags on the course. He has decided to call his new venture Invision Golf Group, Inc. What should he include in his business plan?

a financial plan, an analysis of the market in which the company will operate, the elements of the company that make it unique, a management plan

8. The first step in starting your own business is:

a self-assessment

12. _______________________are individual investors or groups of experienced investors who provide funding for start-up businesses.

angel investors

11. Jill Hansom borrowed $40,000 from a credit union to start a company that makes and sells peach salsa. Hanson used_____________financing.

debt

7. Michael Bronner made a fortune in the direct marketing business as the cofounder and CEO of Bronner Slosberg Humphrey, a wildly successful direct-marketing firm. His newest venture, Upromise, Inc., enlists some of America's largest corporations to help families pay for college and is extremely successful. Entrepreneur Bronner would more than likely have which of the following characteristics?

a. Ambitious b. Independent c. Visionary d. Self-confident

9. Once Arnold Patel had decided he wanted to quit working as a Web designer for a large advertising agency and go into some kind of business for himself, he did a self-assessment, which indicated that he had an entrepreneurial spirit. His next step will be to:

find the idea for his business