MGMT 310 Exam 1 Study Guide

16. Which of the following statements is NOT true about women owned businesses in the United States? A) The number of women owned businesses is decreasing. B) A total of 44 percent of women owned businesses are owned by minorities. C) In some industries, women own a significant share of the business. D) The number of groups that support and advocate for women owned businesses continues to increase . E) Over the past nine years, the number of women owned businesses has grown at a rate five times faster than the national average.

A. the number of women owned businesses is decreasing.

Which of the following statements is INCORRECT regarding entrepreneurial activity and age range? A) The highest percentage of business owners fall in the 45-54 age range. B) The lowest percent of business owners fall in the 60+ age range. C) The majority of business founders have no prior work experience. D) The majority of individuals who start companies are in their forties and fifties. E) Entrepreneurial activity is fairly evenly spread out over age ranges.

B.) The lowest percent of business owners fall in the 60+ range.

The number one characteristic shared by successful entrepreneurs is ________. A) a desire to achieve financial rewards B) a passion for the business C) a desire to employ other people D) a desire to fulfill a lifetime dream

B.) a passion for the business

The three primary reasons that people become entrepreneurs and start their own firms are to________. A) gain prestige, realize financial rewards, and eliminate risk in their lives B) do what they were "born" to do, be their own boss, and gain prestige C) take big risks, be their own boss, and do what they were "born" to do D) be their own boss, pursue their own ideas, and pursue financial rewards E) take advantage of government subsidies, pursue their own ideas, and realize financial rewards

D.) Be their own boss, pursue their own ideas, and pursue financial rewards.

Entrepreneurial firms ________. A) are small firms that yield a level of income for their owner(s) that is similar to what they would earn when working for an employer B) bring to market new products and services that are not particularly innovative C) offer customers common products that are not particularly innovative, and provide their owner(s) the opportunity to pursue a particular lifestyle and earn a living while doing so D) provide their owner(s) the opportunity to pursue a particular lifestyle and earn a living while doing so E) bring new products and services to the market by creating and seizing opportunities

E. bring new producers and services to the market by creating and seizing opportunities.

________ is the process of creating something new, which is central to the entrepreneurial process. A) Creative destruction B) Modernism C) Execution D) Creativity E) Innovation

E.) Innovation

Which of the following is the correct sequence for the four steps in the entrepreneurial process? A) Deciding to become an entrepreneur, developing successful business ideas, moving from an idea to an entrepreneurial firm, managing the growing entrepreneurial firm B) Developing successful business ideas, deciding to become an entrepreneur, moving from an idea to an entrepreneurial firm, managing and growing the entrepreneurial firm C) Developing successful business ideas, moving from an idea to an entrepreneurial firm, deciding to become an entrepreneur, managing and growing the entrepreneurial firm D) Deciding to become an entrepreneur, moving from an idea to an entrepreneurial firm, developing successful business ideas, managing and growing the entrepreneurial firm E) Managing and growing the entrepreneurial firm, developing successful business ideas, deciding to become an entrepreneur, moving from an idea to an entrepreneurial firm

a. Deciding to become an entrepreneur, developing successful business ideas, moving from an idea to an entrepreneurial firm, managing the growing entrepreneurial firm.

Which of the following statements regarding the survival rates of entrepreneurial firms in the United States is correct? A) As high as 50 percent after four years B) As high as 60 percent after four years C) As high as 70 percent after four years D) As high as 80 percent after four years E) As high as 90 percent after four years

a. as high as 50 percent after four years.

According to the textbook, the four characteristics of successful entrepreneurs are ________. A) passion for the business, on the cutting edge of technological change, very charismatic, and tenacity despite failure B) young and energetic, passion for the business, product/customer focus, and seeks recognition C) passion for the business, tenacity despite failure, product/customer focus, and execution intelligence D) on the cutting edge of technological change, forward-thinking, tenacity despite failure, and product/customer focus E) passion for the business, seeks recognition, young and energetic, and execution intelligence

c. Passion for business, tenacity despite failure, product/customer focus, and execution intelligence.

Which of the following is NOT a personality trait or characteristic common among entrepreneurs? A) Promoter B) Visionary C) Short attention span D) Alert to opportunities E) Self-starter

c. short attention span

14. According to the textbook, there are three types of startup firms: _ A) lifestyle firms, general firms, and entrepreneurial firms B) standard-of-living firms, statutory firms, and general firms C) entrepreneurial firms, standard-of-living firms, and statutory firms D) lifestyle firms, salary-substitute firms, and entrepreneurial firms E) innovative firms, entrepreneurial firms, and standard firms

d. Lifestyle firms, salary-substitute firms, and entrepreneurial firms