Entrepreneurship Review Chapter 1

Disadvantages of entrepreneurship include

- uncertain income - risk - long working hours

Trade shows are special meetings where entrepreneurs learn how to set financial goals

False

Manufacturing businesses

produce the products they sell

Researchers have determined that successful entrepreneurs

want to make their own decisions

An employee

works for someone else

In the United States today, small companies

- can be more creative - have innovative ideas that lead to technology change - contribute billions of dollars to the US economy

Entrepreneurs try to

- identify the needs of the marketplace - meet the needs of the marketplace - make a profit

To determine if a business opportunity is realistic, you should find out

- money needed to start business - rate of failure of business - how many hours a week you need to work

To determine your suitability for entrepreneurship, you should assess your

- strengths and weaknesses - interest - aptitude

The percentage of businesses in the United States that employ fewer than 20 people is

90%

A florist shop is an example of a service business

False

A travel agency is a retailing business because it sells airline and train tickets

False

Although there have been many important entrepreneurs in the twentieth century, none existed before 1900

False

An advantage of entrepreneurship is that business owners make all decisions by themselves

False

An entrepreneur can expect to earn large profits immediately after starting a business

False

Aptitude is the ability to assess your interests and past experiences

False

Aptitude is the ability to evaluate your strengths and weaknesses

False

Determining your aptitudes is the first step in performing a self-assessment

False

Entrepreneurial businesses include retailing businesses, such as clothing and furniture stores, but do not include service businesses

False

Entrepreneurs and employees are both directly affected by the consequences of the decisions they make

False

Everyone has the qualities and aptitude needed to become a successful entrepreneur

False

Ninety percent of all U.S. businesses employ fewer than ten people

False

Non-financial goals are important for an entrepreneur because they help set prices for products and services

False

Retailing businesses sell services directly to the people who use them

False

Small companies cannot take as many risks as large companies, so small companies are less likely to be innovative

False

Successful employees will see their businesses flourish and make large profits

False

Successful entrepreneurs need to be self-confident because they must make decisions alone, but they do not need to be creative because they can hire creative people

False

Successful entrepreneurs need to set new goals every time a poor decision is made

False

What innovative entrepreneur was the first to provide employees with paid sick leave

Rose Knox

Entrepreneurs who were leaders in the food industry were

Rose Knox and Clarence Birdseye

John D. Rockefeller became the richest man in the world by controlling almost all oil distribution in the United States

True

Manufacturing businesses produce the products they sell

True

Running your own business is difficult, and many companies started by entrepreneurs go out of business

True

Small businesses contribute billions of dollars to the United States economy every year

True

Successful entrepreneurs are confident and able to make quick decisions when necessary

True

Successful entrepreneurs need to be able to make quick decisions because today's business world is very competitive

True

The Model-T automobile, developed by entrepreneur Henry Ford, was sold at a price most Americans could afford

True

The Small Business Administration can provide information that may be helpful in investigating business opportunities

True

The creativity of entrepreneurs has led to technological change and increased productivity

True

The specific risks associated with a business are important in determining if a business opportunity is realistic

True

To determine if entrepreneurship is right for you, you need to perform a self-assessment

True

Your hobbies, interests, and past experiences are key factors in determining your commitment to a business

True

During the colonial years in America, entrepreneurs were

bankers

Risk is

both an advantage and a disadvantage of entrepreneurship

Which of the following is a retailing business? - auto repair shop - grocery store - gold mine - farm

grocery store

An assessment of your interests is

helpful in deciding what business is right for you

Characteristics of successful entrepreneurs include

independence

Two key factors that aid an entrepreneur's commitment to a business are

interests and past experiences

Which of the following is a retailing business? - jewelry store - paper mill - appliance repair shop - orange grower

jewelry store

Aptitude is the ability to

learn a particular kind of job

A self-assessment is an evaluation of your

strengths and weaknesses

Information about business opportunities is available from

the Small Business Administration

An advantage of entrepreneurship is that entrepreneurs

can work in a field that interests them

Although entrepreneurship is risky, entrepreneurs can make a lot of money

True

An advantage of entrepreneurship is that nobody tells an entrepreneur what to do

True

An entrepreneur owns, operates, and takes the risk of a business venture

True

Assessing your background and experience can help you determine whether you are prepared to run a specific business

True

Before starting a business, it is important to identify the kinds of entrepreneurial opportunities that match your aptitudes and interests

True

Entrepreneurs constantly change American business and contribute to the overall good of the nation

True

Entrepreneurs have changed American business throughout the history of the United States

True

Entrepreneurs try to meet the needs of the marketplace by supplying a service or product

True

Entrepreneurship involves risk, which is both an advantage and a disadvantage

True

A person who works for someone else is

an employee

John D. Rockefeller was a nineteenth century entrepreneur who

controlled almost all oil distribution in the United States

Which of the following is not a characteristic of a successful entrepreneur? - determination - creativity - dependence - self-confidence

dependence

Setting specific financial goals before starting a business

ensures the business is able to earn the profits you want