chapter 7

Entrepreneurs with an internal locus of control tend to:

feel that their success or failure is largely the result of their own actions.

Small businesses have contributed to the U.S. economy by:

fueling innovation.

In the context of the technological environment, which of the following statements is true of business technology?

It includes any tools that companies can use to become more efficient and effective.

In the context of funding options for small businesses, which of the following statements is true of the U.S. Small Business Administration (SBA)?

It lends microloans through community nonprofit organizations.

In the context of various strategies to become a successful small business owner, which of the following statements is true of an effective business plan?

It takes about six months to write.

Which of the following is an advantage for small businesses?

Lower overhead costs

Which of the following marketing concepts emerged during the marketing era?

A consumer focus that permeates successful companies in every department, at every level

Which of the following nations is most likely to have the lowest percentage of entrepreneurs?

A nation that places complex regulations on businesses

Which of the following statements is true of entrepreneurs?

They produce a ripple effect that enriches everyone around them.

Anya is an administrator at Zenorx Inc., a start-up software company. She is responsible for acquiring capital for the company. In the context of the various factors of production that businesses rely on, which of the following functions is most likely to be a part of Anya's responsibilities?

Acquiring synthetic resources like computers and telephones

Which of the following statements is true when a person makes a career choice based on what he or she loves doing?

Chances of personal success are boosted.

Eugene Playem, a small firm that develops games, wants to raise capital to develop a new expensive video game. The firm's finance team plans to find several video game enthusiasts online, who can afford to invest money for the video game's development. In this scenario, which of the following funding options has Eugene Playem planned?

Crowdfunding

In the context of the history of American business, which of the following is a feature of the relationship era?

Cultivating current customers turn out to be more profitable than constantly seeking new ones.

In the context of the history of American business, which of the following statements is true of the industrial revolution?

Factories hired large numbers of semiskilled workers who specialized in a limited number of tasks.

_____ is an international economic and political movement designed to help goods and services flow more conveniently across international boundaries.

Free trade

Sheila wants to start her own business that would specialize in fashion accessories. However, she decides to continue with her current job at Potters Fashion Inc. as a fashion consultant for another three years to get to know the industry better. Which of the following entrepreneurial strategies is Sheila executing?

Gaining experience

Which of following was a result of the bold steps taken by the General Agreement on Tariffs and Trade (GATT) to reduce trade restrictions worldwide?

Goods moved more freely than ever across international boundaries.

Which of the following factors is most likely to be covered by the social environment dimension of a business?

Population size and density

Derek, after retiring as the CEO of Solitaire Graces Inc., decides to donate his time and expertise to assist newly established small businesses. He learns about an organization called the Service Corps of Retired Executives (SCORE), which is supported by the Small Business Administration (SBA), and joins as a volunteer. As a SCORE volunteer, in which of the following activities is Derek expected to be involved?

Providing free business counseling and mentoring for small business owners

In the context of various strategies that can help you become a successful entrepreneur, which of the following is a difference between Small Business Development Centers (SBDCs) and the Service Corps of Retired Executives (SCORE)?

SBDCs provide a range of free services for small businesses, whereas SCORE provides free counseling for small businesses.

Which of the following is a key dimension of the business environment?

The economic environment

In the context of factors of production, which of the following statements is true of entrepreneurial enterprises?

They can kick-start an economy, creating a tidal wave of opportunity by harnessing other factors of production.

In the context of the competitive environment, which of the following statements is true of bleeding-edge firms?

They launch products that fail because they are too far ahead of the market.

In the context of small business opportunities, which of the following statements is true of market niches?

They offer more than enough potential for small, specialized companies.

Greg started a business of tire shops and one by one opened several shops in various parts of his hometown. However, he had to shut down all the shops because they failed to make profits. At 65 years of age, he raised capital and started Gregton Inc., which is now a well-known two-wheeler manufacturing firm in his country. Which of the following entrepreneurial traits most likely contributed to Greg's success?

Tolerance of failure

In the context of factors of production, which of the following is a natural resource?

Wind

In the context of factors of production that businesses and nonprofits rely on, _____ cannot be considered a natural resource.

cereal crops

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

comprise more than 99% of inner-city business establishments.

Lindsay is planning to start a new seafood restaurant. She has considered the opinions of many consultants, friends, and family members about her business idea. Despite overwhelming negativity, Lindsay has faith in her abilities as she possesses five years of experience in this field. In this scenario, Lindsay displays the entrepreneurial characteristic of _____.

confidence

During the _____, the government of the United States stepped into the business realm to pass laws to regulate business and protect consumers and workers.

entrepreneurship era

Colleen lost an important business project. According to her, she would not have lost the project if she had been organized in her work approach. This scenario indicates that Colleen most likely has a(n) _____.

internal locus of control

Adrian recently lost his job and has been unsuccessful in finding a new one. To sustain himself and his family, he decides to open a small café. He believes that the café is his only economic option. Adrian is now trying to acquire funds from family and friends to open his café. In this scenario, Adrian is a(n) _____.

necessity entrepreneur

In the context of the competitive environment of a business, the best measure of value is the:

size of the gap between product benefits and price.

The quality and quantity of goods and services available to a population is referred to as the _____.

standard of living

Tyron needs financing for his new business venture. He feels that the best way to obtain the funds would be to tap his personal financial resources. In the context of this scenario, the most appropriate source of personal finance for Tyron would be:

Bob, Tyron's rich uncle with whom he has a close relationship.

Which of the following is a similarity between buying an established business and buying a franchise?

Both find getting financing less challenging.

In the context of how small businesses have contributed to the U.S. economy, in which of the following ways do small firms allow new thinking to take hold?

By displaying a refreshing lack of bureaucracy

Which of the following scenarios illustrates the utilization of human resources as a factor of production?

Carlos hires a content writer to develop content for his online portal that sells fashion accessories.

Which of the following is an advantage of starting one's own business?

Independence

Conela is a nonprofit organization that renovates abandoned government schools and facilitates their functioning. It is headed by two social activists and is funded by the government. Which of the following statements is true of Conela?

It takes in revenue like any other business.

Which of the following scenarios illustrates entrepreneurship?

Jill who has a degree in landscaping has started her own landscaping service business and has hired several employees under her supervision.

In the context of the history of American business, which of the following statements is true of the production era?

Jobs became specialized, increasing productivity and lowering costs and prices.

In the context of the history of American business, which of the following statements is true of the entrepreneurship era?

Large-scale entrepreneurs emerged in the second half of the 1800s, building business empires.

In the context of a business environment, which of the following is a key element of the U.S. economic environment?

Legislation that supports enforceable contracts