Chapter 2 Entrepreneurship

Personality tests should help you better understand yourself and your strengths and not be used as a guide for your ____.

Career

The underlying philosophy of the ___ test is that people are a result of all the experiences of their life.

Enneagram

Small Business Development Assistance Centers provide ___

Free advice to new business

Which of the following groups might be included in an entrepreneur's key support network?

Friends from school. Former Employers.

A business ____ is a facility that houses new businesses and provides many critical services.

Incubator

An entrepreneurial business

It is owned and run by the same person

Which of the following is NOT one of the three types of specific risks?

Network

_____ motivations come from the individuals themselves.

Personal

There are successful business people in all ____ categories

Personality

The triggers for starting a business can come from either ___ or negative stimuli that occur in the individual's life.

Positive

Which of the following are typical triggers for starting a business?

Reaching a point financially where the risk-return level of a proposed new business is tolerable Being approached by friends or family with a new business idea

Which of the following are components of the entrepreneurial orientation concept?

Risk Tolerance Personality Orientation Prior Experience

New business owners need to be sure that the level of risk is consistent with their ____, ____, and _____.

Values, background, family situation

having a network helps a new firms by providing ____.

a level of legitimacy

When a firm reaches its break-even point, the revenues are ____ its expensive.

equal to

Individuals from outside an industry are able to establish a new business in a manner not previously considered because they ___.

have bounded rationality

The greater the debt an entrepreneur is willing to take on to start the business, the ___ his or her risk tolerance.

higher

Online communities such as blogs and chat rooms can provide ____ to people starting a business.

Advice

____ is a managerial theory that believes individuals act to maximize their own benefits.

Agency Theory

Identify the typical triggers for starting a business.

Being spurred to action by attending a seminar, reading a book, or talking with successful entrepreneurs. Experiencing the inability to climb the corporate ladder due to circumstances. Receiving evidence that an idea is not only doable, but there is a concrete way to improve on a given problem.

Which of the following statements regarding personal motivations are correct?

Entrepreneurs who are driven by personal motivators often make career and life-altering changed regardless of practical advice. Entrepreneurs who are driven by personal motivators more relentlessly pursue their goals. Entrepreneurs who are driven by personal motivators are often more proactive.

_____ - ______ point is when a business has reached has a level where the revenue coming into the firm is sufficient to cover its expenses.

Even-Break

Large businesses often have ____.

Extensive written procedures.

Businesses in which ownership and employment are centered around a family are referred to as ___ ____.

Family Businesses

Which of the following are supports that entrepreneurs rely on?

Family. Social networks. Financial resources

The Enneagram's nine personality types include which of the following?

Helper Reformer Achiever

Which of the following are true about organizational slack?

It is not a characteristic of typical entrepreneurial ventures. It refers to an excess of resources. It provides larger firms flexibility.

Identify the websites that help a company reach out to a wide community online to get funding and often advice in the process of raising those funds.

Kickstarter.com Crowdfunder.com

To fully utilize family resources, entrepreneurs should ___.

List the capabilities those individuals possess that might be helpful. Make a list of members that they have regular contact with.

Which of the following statements about agency theory are correct?

Managers are considered agents. Agents often maximize their own benefit. Owners always act to maximize the value of the business.

The Big Five test comprises which of the following factors?

Open-mindedness. Extroversion. Emotional Stability.

Which of the following business could be likely pursued by individuals who do not prefer to work with people?

Order fulfillment Bookkeeping Internet-based businesses

An excess of resources in an organization that allows for redundancy and the quick deployment of personnel is referred to as ___ ____.

Organizational Slack

Which of the following often leads young people to be pioneers in an area as they are not limited by the restrictions of the past?

The presence of bounded rationality

Which of the following are reasons why owners are a great asset to a new business?

Their personal involvement. Their dedication.

Which of the following statements regarding Small Business Assistance Centers are correct?

They are funded by the Small Business Administration. They are often associated with SCORE offices. They provide a wide variety of support such as research aids.

Which of the following are correct regarding the characteristics of large business?

They have greater excess resources. Knowledge is widely dispersed throughout the business. No one person is critical to the business's survival.

Identify the features of circumstance motivators.

They result from environmental changes. They tend to result in more of a defensive positioning.

True or False: An entrepreneur's prior experiences places boundaries on what he or she will consider when making decisions.

True

True or False: An entrepreneur's risk tolerance, prior experience, and personality orientation shape their analysis of a business idea's potential

True

True or False: New businesses have greater flexibility in responding to changes that take place in their external environment.

True

True or False: The Myers-Briggs test is one of the most widely used personality tests.

True

True or False: it is advisable for an entrepreneur to ensure that sufficient financial resources are available prior to the start of a business

True

True or False: today, women-lead businesses are formed at a rate 50% lesser than that of men-lead businesses?

false

Entrepreneurs need to consider both the benefits and drawbacks to hiring ___ members.

family

Students need to consider their own resources and abilities early when they think about starting an entrepreneurial business because of the ___.

importance of an owner to a new business

People in an entrepreneur's network can help providing __ to a new business.

legitimacy

The founders and the leadership they provide play____ of a critical role in the business's success than senior leadership in the typical large organization

more

Woman of color account for ___ of business headed by women.

one-third

Entrepreneur need to have a(n) ____ vision of what resources are necessary in order to be successful.

realistic

Potential entrepreneurs must understand their level of tolerance to ___.

risk

By providing resources that new businesses cannot otherwise afford on their own, incubators can help these businesses establish

some level of legitimacy

Entrepreneurs should work with family members for their advice, potential funding, reality check, and ___ structure.

support

A large, established corporation

the individuals that manage do not typically have substantial ownership in the company

When starting a business, one must understand the relationship between ___ and the expected return.

time commitment

True or False: it is likely for an entrepreneur to spend more time starting and running the business than doing anything else in life.

true

True or False: the high level of family commitment is a key reason why family businesses are able to survive and prosper.

true

An entrepreneur's support and resources are typically ___ to the individual and the location.

unique