business ch 7
External locus of control is a deep-seated sense that the individual is personally responsible for what happens in his or her life. a. True b. False
false
According to the Global Entrepreneurship Monitor (GEM), the most effective way to evaluate entrepreneurship levels is by phase. A country's total early-phase entrepreneurship rate includes the: a. percentage of adults who have been running their own business from three months to 3.5 years. b. number of middle-aged workers who have turned into necessity entrepreneurs after being laid off from their corporate jobs. c. percentage of millennials who have decided to start their own venture after retirement. d. number of adults who have proven their entrepreneurship capabilities despite repeated failures.
A
In the context of funding options for small businesses, which of the following offers a potential funding source for new business start-ups? a. Peer-to-peer lending b. A buy-sell agreement c. A treasury bill d. Token money
A
In the context of small business opportunities, because of their size, many small firms can: a. offer personal customer service. b. have a large span of control. c. evade compliance with federal regulations. d. offer health coverage to their employees at a lower cost than large firms.
A
Michael wants to launch a new product. He creates a website specifically for this on the Internet and uploads a short video demonstration of his product on the website. He also appeals to the viewers to make donations to help him start production. People respond well to his idea and help him collect enough financial resources to start his business. The opportunity of _____ is highlighted in the given scenario. a. exploiting a market niche b. providing personal customer service c. having lower overhead costs d. using technology
D
Who among the following is the most appropriate person to start his or her own venture? a. Gita, who has been an event manager for five years but discontinues her job as she wants to spend enough time with her one-year-old child b. Linda, who has been working as an assistant manager for over a year but cannot make decisions on her own c. Mira, who is intolerant of uncertainty and becomes emotionally depressed at the sign of any form of financial distress in her family d. Laura, who is against approaching others for funds and only has enough savings to keep her business afloat for one year
A
Olivia runs a spa for women. She employs only two helpers and one receptionist. This enables her to focus most of her resources on procuring products required to provide comfort and high-quality services to customers. The opportunity of _____ is highlighted in the given scenario. a. providing personal customer service b. using technology c. exploiting market niches d. having lower overhead costs
A (or D)
Deborah dreams of owning a pub in the heart of the city that she lives in. Deborah has the music, ideas, and menu in place, and the funds required to start the pub. Which of the following suggestions is most likely to help Deborah realize her dream? a. Deborah should buy a pub that is already established. b. Deborah should start from scratch. c. Deborah should buy a franchise of a well-known pub. d. Deborah should sell her ideas to wealthy pub owners.
B
Ophelia opened a boutique that specializes in creating custom trousseaux for brides. She conceived the idea in her senior year at school, and despite receiving criticism for the idea, she went ahead and opened the boutique. Which entrepreneurial characteristic is highlighted in the given scenario? a. Self-reliance b. Vision c. Energy d. Conformity
B
Which of the following statements is true of funding options for small businesses? a. Only 40% of new business owners launch with commercial loans. b. Only a tiny fraction of new businesses receive any venture capital money. c. The U.S. Small Business Administration gives free money to start-up businesses. d. Angel investors invest in start-ups without requiring a share of ownership.
B
In the context of opportunities and threats, overhead costs for small businesses: a. tend to be much higher than large businesses. b. are about the same as big companies. c. are often lower than big companies. d. tend to decrease as they grow bigger in size.
C
Ruben owns an astronomy-themed restaurant. The entire restaurant resembles a planetarium. He has also installed a projector that transforms the ceiling into a night sky. Ruben used most of his savings to fund this venture and also borrowed funds from his friends and family. In the given scenario, Ruben used _____ to fund his business. a.crowdfunding b. commercial loans c. personal resources d. venture capital
C
Runion Bank is well-known for providing funds to start-ups. The bank lends money to an entrepreneur at an interest rate of 5%, which is to be repaid only after the business earns a sizable profit. If the business fails, then only the primary amount needs to be returned. In the given scenario, which of the following statements is true of Runion Bank? a. It is a venture capital firm. b. It is an angel investor. c. It provides commercial loans. d. It helps entrepreneurs in the process of crowdfunding.
C
Which of the following is a powerful contribution made by small businesses to the U.S. economy? a. Mergers of billion-dollar corporations b. Powering the stock market c. Vitalizing inner cities d. Accounting for all private sector output
C
Who among the following people is most likely to become a necessity entrepreneur? a. A person who has recently graduated from college and has no work experience b. A person who has recently been promoted to a managerial position c. A person who experiences discrimination in the standard workplace d. A person who avoids challenges and financial risks
C
Richard is a wealthy and successful businessman who is well known for financing many successful start-ups. He has earned a sizable amount of profit by providing capital to start-ups in return for a share of their profits. In the given scenario, which of the following statements is true of Richard? a. He provides venture capital to start-ups. b. He provides commercial loans to start-ups. c. He is a general partner. d. He is an angel investor.
D
Dominic feels that an incredible string of bad luck has affected his personal life. He also feels that his boss is subjecting him to unfair treatment at work for no fault of his. Dominic's perceptions suggest that he has an internal locus of control. a. True b. False
false
For research purposes, the U.S. Small Business Administration (SBA) defines small business as companies with up to 1000 employees. a. True b. False
false
Rudy owns a small metal fabrication business that employs 23 workers. As the owner of a small business, one of the major advantages that Rudy enjoys while competing with larger firms is reduced burden of complying with government regulations. a. True b. False
false
Small businesses generate 50% of total employment in American inner cities. a. True b. False
false
Ted's new company is experiencing a steady decline in profit. He needs external financing to prevent his company's profits from declining further. Considering the fact that he wants to exercise sole ownership and control over the firm for as long as possible, Ted is likely to find angel investors who are interested in helping him meet his financial needs. a. True b. False
false
The U.S. Small Business Administration (SBA) gives interest-free loans to start-up businesses and fully guarantees loans from local commercial lenders. a. True b. False
false
In the context of the U.S. economy, small firms tend to be effective innovators because of the presence of revolutionary new ideas. a. True b. False
true
Some businessmen, called necessity entrepreneurs, launch their business because they believe it is their only economic option. a. True b. False
true
When entrepreneurs develop new products that we didn't even know we needed until we had them, they are showing the entrepreneurial characteristic of vision. a. True b. False
true