Business Practice quiz ch 1

High-growth ventures are also known as main street businesses. True or False

False Explanation Main street businesses include all types of businesses except high-growth ventures.

Self-employed persons are not referred to as entrepreneurs. True or False

False Explanation The self-employed, anyone who works for himself or herself instead of for others, is also an entrepreneur.

High-performing small businesses start with the intent of eventually going public, following the pattern of growth and operations of a big business. True or False

False Explanation This is the definition for a high-growth venture.

Crowdsourcing is funding a business online through the collective involvement of others who provide donations, loans, or investments. True or False

False Explanation This is the definition of crowdfunding, not crowdsourcing.

Truly entrepreneurial businesses are characterized by imitativeness in their products, services, or business models. True or False

False Explanation Truly entrepreneurial businesses are characterized by novelty, in their products, services, or business models.

Lifestyle or part-time firms typically provide enough profit or salary to supplement an income but usually not enough on which to live. True or False

True Explanation Lifestyle or part-time firms typically have sales of $25,000 a year or less, which provides enough profit or salary to supplement an income but usually not enough on which to live.

If you don't succeed the first time, try, try again. This is called the strategy of self-efficacy. True or False

False Explanation While this is one of the seven key strategies of the entrepreneurial way, it is called the strategy of perseverance not self-efficacy.

Kevin wanted to start his own business of ferrying pets to the vet or groomers for their owners but he was advised to perform a feasibility analysis before moving forward. Kevin is on the third step of the entrepreneurial process: plan. True or False

False Explanation If performing a feasibility study, Kevin is likely at the second step in the entrepreneurial process: check.

The majority of new firms go through similar startup processes with those most likely to be successful following a four-step process: finance, check, plan, do. True or False

False Explanation The four steps in the entrepreneurial process are feel, check, plan, and do.

In order to make profits from a small business, the company needs to make an actual product. True or False

False Explanation This is one of the myths listed in the text. In actuality, 9 of the 10 most profitable industries for small businesses involve services such as dentists, tax preparers and lawyers.