Intro to Business Chapter 7

Extensive regulations can impede entrepreneurship.

​Which of the following statements is true of the impact of federal regulations on entrepreneurship?

​Shop Maestro may fail because its industry was not chosen carefully.

Deb is offered a job with a start-up venture named Shop Maestro LLC, which is a retail company. Insurance is included in the pay offered to her. Deb declines the offer because the retail market is quite saturated. Which of the following small business threats was Deb worried about?

exploited a small but profitable market niche.

Loren LLC is a small bicycle store that competes effectively with much larger companies since it focuses exclusively on selling bicycles for senior citizens and orthopedic patients. The company has been successful since it has:​

​are often lower than they are for big companies, giving small businesses a competitive opportunity.

Overhead costs for small businesses:

​One does not have to deal with the prior owner's bad decisions and mistakes.

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

​essential to keep the relationship as professional as possible.

While raising start-up funds from friends and family, it is:

an external locus of control

​Damien is a programmer in a software firm. He has recently received a promotion and an annual bonus. He believes that this is a result of random luck as he does not work very hard. Damien has _____.

​Deborah should start from scratch as that will allow her to implement her own concept, decision, and structure.

​Deborah dreams of owning a pub in the heart of the city she lives in. She wants to have a music band right next to the bar playing her favorite rock ballads. She also has creative ideas for the food on the menu. Since Deborah already has the funds needed to start the pub, which of the following suggestions is most likely to help Deborah realize her dream?

Vision

​Entrepreneurs find new solutions to old problems and develop new products that people didn't even realize they needed. These entrepreneurs are said to have _____.

Learning from others

​Ethan is in the process of launching his new business venture that specializes in electronic waste recycling. During this period, he is in constant touch with Lloyd, who has seen success in this niche market. Which of the following entrepreneurial development strategies is Ethan utilizing?

are often the first to contract when times are tough.

​In the context of the U.S. economy, small businesses:

​A venture capital firm

​Jacob is in urgent need of financing for his rapidly-growing online travel business, Travelmuch. Since Jacob does not usually pay off his loans on time, his credit score is very low. He feels overwhelmed and thinks that it would be ideal if he gets some guidance on how to run the business. Given his situation, which of the following key sources of funding would be ideal for Jacob?

Energy

​Marion has an innovative idea for better disposal of garbage. Hence, he starts a business to implement this idea that he believes will succeed. He is also aware of the risks involved in starting the business. However, Marion tends to put in only six hours a day into building his business; some days, he finds it difficult to put in any time. Which of the following entrepreneurial characteristics does Marion lack?

necessity entrepreneur.

​Michael is a middle-aged professional who lost his job five months ago when his former employer downsized. He has been actively looking for work since then but has not been able to find a job that truly utilizes his abilities or that offers an income anywhere close to what he earned in his previous position. He is beginning to feel that the only way to survive his current situation is to start his own business. Michael might well become a:

feel buffeted by forces such as random luck.

​People with an external locus of control:

​difficult because commercial lenders are reluctant to give loans to firms that do not have an established record of successful performance.

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

​given small business owners more flexibility in business management.

​Technological developments over the past two decades, such as the rise of the Internet and email, have:

Eliminating complex regulations placed on businesses

​The nation of Rhodasia has the lowest entrepreneurship rate globally. A new government headed by Prime Minister Arnold Wenger aims to make the country's business environment more supportive toward burgeoning entrepreneurs. Which of the following measures should be taken to increase the entrepreneurship rate in Rhodasia?

make more money.

​The primary reason many people become entrepreneurs is to:

​necessity entrepreneurs.

​When a large company downsizes, some of the middle-aged and older workers who are laid off find it difficult to get another job. When such workers decide to start their own businesses, they are known as _____.

The Small Business Administration

​Which of the following bodies assists entrepreneurs by guaranteeing loans from local commercial lenders?

The Service Corps of Retired Executives

​Which of the following firms supported by the Small Business Administration (SBA) provides free, comprehensive counseling for small businesses from qualified volunteers?

​If the national brand suffers, so does the franchisee.

​Which of the following is a drawback of buying a franchise?

​Vitalizing inner cities

​Which of the following is a powerful contribution made by small businesses to the U.S. economy?

​Both invest in start-up companies with high growth potential in exchange for a share of ownership.

​Which of the following is a similarity between venture capital firms and angel investors?

High health insurance costs

​Which of the following is an intimidating difficulty that small businesses face?

Industry-specific statistics

​Which of the following pieces of information is found in the Small Business Administration (SBA) resources?

The rate of necessity entrepreneurship is low.

​Which of the following statements is true of necessity entrepreneurship in high-income countries?

​Timo, an immigrant engineer who is driven to think about his own venture because his heavy English accent invites discrimination at his office

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

​vision

​Xavi develops a cell phone battery that can be charged by a solar panel and can run efficiently for up to three hours. His friends point out that it would be difficult to get cell phone manufacturers to adopt this new technology and that it could take a long time for people to start relying on it. However, Xavi is convinced that he can make his idea popular and successful. He plans to start a new company called EnerMob Inc. that would promote and sell the cell phone battery to the public. In this scenario, Xavi is said to be demonstrating _____.