MGT 320 CHAPTER 1

49) The primary cause of small business failures is:

management mistakes.

45) Small companies are incubators of new sales ideas, products and services and create ________ times more patents per employee than large companies.

13

35) Approximately ________ percent of corporate managers who are "cast off" as companies downsize become entrepreneurs.

20

15) Within five years, ________ percent of new businesses will fail.

51

33) Which of the following is NOT a characteristic of a successful working relationship between copreneurs?

A clear definition of one partner as "boss" and the other as "subordinate"

23) Which of the following statements concerning small businesses and international markets is false?

Because exporting is so complex and requires a company to have so many international experts on staff, exporting is not feasible for small businesses.

27) Women in business still experience ________ as they attempt to break the "glass ceiling."

Discrimination

25) Small companies that have expanded successfully into foreign markets tend to rely on all but which of the following strategies?

Focus on many countries initially.

29) Which of the following statements is not true regarding the diversity of entrepreneurs?

Minority-owned businesses now account for approximately 22 percent of all businesses in the U.S.

31) ________ percent of all U.S. businesses are family owned and managed.

Ninety

53) Which of the following is/are true regarding business plans?

Provide a pathway to success. Allow entrepreneurs to replace faulty assumptions with facts before making the decision to go into business. Create a benchmark against which entrepreneurs can measure actual company performance.

19) Which of the following is NOT one of the forces driving the entrepreneurial trend in our country?

Shift away from a service economy

3) The profile of an entrepreneur includes:

a desire for responsibility and moderate risk. confidence in the ability to succeed and determination. a high level of energy, a desire for immediate feedback and a future orientation.

41) Small companies:

are the leaders in offering training and advancement opportunities to workers.

21) Entrepreneurs may find benefit from the Internet due to its potential:

as a relatively low-cost solution to expand its revenue-generating abilities.

1) One of the most significant economic developments in recent business history relates to the:

entrepreneurial spirit.

51) The only people who ________ are those who never do anything or never attempt anything new.

fail

9) Entrepreneurs who start businesses because they cannot find work any other way are:

necessity entrepreneurs.

11) In a large organization, an individual may be stifled and limited by a wide variety of factors. However, by owning one's own business, the only limits are one's own creativity, talent, and determination. In this sense, small business ownership offers the advantage of the:

opportunity to reach one's full potential.

47) John has come to you for advice on starting a business venture. He wants to know the best way to gain the experience he'll need. You suggest that he:

seek knowledge and experience in the field he wishes to enter.

7) Entrepreneurs who repeatedly start businesses and grow to a sustainable size before striking out again are known as ________ entrepreneurs.

serial

37) Entrepreneurs that use their skills to create a profitable business that is designed to achieve social and environmental goals for the common good are known as:

social entrepreneurs.

Nearly ________ of entrepreneurs start their businesses between the ages of 25 and 44 and the number of Americans in that age range currently is ________ .

two-thirds; 85 million

13) Potential drawbacks of entrepreneurship may include:

uncertainty of income, risk, long hours, and high stress.

5) All of the following are characteristics of the typical entrepreneur except:

value of money over achievement.