Chapter 7 QUIZ
True
About half of all start-ups use credit cards as a source of financing.
True
An entrepreneur is an individual willing to take the risk of owning and operating a business.
True
Angel investors are wealthy individuals who provide financing to promising new start-up companies.
True
Entrepreneurs often mention that the primary motivator for launching a new business is the opportunity to make more money.
True
In 2010, U.S. entrepreneurship rates reached their highest level in 15 years. This is seen as a hopeful sign, because job seekers become potential job creators.
True
Internal locus of control refers to a firm belief that the individual is personally responsible for what happens in his or her life.
True
Juan was recently laid off from Breeze Motors and has stopped looking for a job after numerous rejections. He has now focused on starting a new business. Juan is an example of a "necessity entrepreneur."
False
Most entrepreneurs have a very realistic appreciation of their own strengths and weaknesses.
False
Most small business owners start their businesses with the intention of changing the world through trans-formative growth.
True
One advantage small businesses often enjoy is the ability to keep overhead costs to a minimum due to the fact that the owner wears several hats.
False
Over 50 percent of entrepreneurs finance their new businesses with loans provided by comm
False
People who face discrimination that limits their economic opportunities in corporate America are likely to find that entrepreneurship offers even less attractive opportunities.
True
Phillie Truper wants to start a new business but lacks sufficient personal financial resources. She has asked banks and other lenders for loans, but they have turned her down, telling her that her proposal is too risky. Phillie might find that the Small Business Administration could help her get a loan from one of these lenders by providing a partial loan guarantee.
False
Steve Jobs would not be considered entrepreneurial b/c he developed his products while working for Apple, Inc.
False
Successful entrepreneurs are seldom visionaries. Instead, their strength is the ability to take the abstract ideas of others and turn them into successful businesses.
True
Successful entrepreneurs typically view their failures as opportunities to learn, so that they can do better next time.
True
The majority of new firms are funded with the personal resources of the founder.
False
The vast majority of the richest individuals in the U.S. earned their wealth by obtaining employment in major corporations and then working their way into positions of senior management within these organizations.
True
When borrowing money from family and friends to start a business, it is a good idea to keep the loan arrangements on a professional basis.
False
peer-to-peer lending is NOT considered a good source of funds for business start-ups b/c of their unfavorable terms.