Question 1

Natalie enjoyed yarn crafts so she opened a yarn and craft store in her small town. Sales have been dismal; few people visit her store. What mistake did Natalie make?

Accepted Answer

A)   She overestimated what she could do.
B)   She lacked an understanding of the market.
C)   She hired mediocre people
D)   She failed to share ownership.E) B) and D)
F) A) and C)

Question 2

After identifying the five rewards for entrepreneurs, relate each to an example either discussed in the book, in class, or from the community.

Accepted Answer

Profit: The desire to make money is a fa...

Question 3

Which of the following best fits the definition of a small business?

Accepted Answer

A)   A manufacturer with 75 investors
B)   A hardware store franchise with 20 employees
C)   A fast food franchise with locations in three states
D)   A campground with gross revenues of $4 million per year.E) A) and C)
F) A) and B)

Question 4

Explain the difference between personal fulfillment and personal satisfaction as an entrepreneurial motivation.

Accepted Answer

Personal fulfillment refers to helping o...

Question 5

Walter wanted to be able to make decisions about issues that directly affected his department but in his corporation, the managers made all the decisions. So Walter left the corporation and started his own firm. Walter was looking for:

Accepted Answer

A)   personal fulfilllment.
B)   personal satisfaction.
C)   independence.
D)   financial rewards.E) A) and D)
F) None of the above

Question 6

Match the term with its definition.
-A person who becomes an entrepreneur to escape an undesirable job situation

Accepted Answer

A)  attractive small firm
B)  corporate refugee
C)  entrepreneur personality
D)  entrepreneurial opportunity
E)  founderF) high-potential ventureG) manager personalityH) microbusinessI) niche marketJ) reluctant entrepreneurK) social entrepreneurshipL) technician personalityM) D) and H)
N) A) and I)

Question 7

Sally,, a single mother, opened a florist shop to support her family after losing her job in a corporate layoff. She is a(n)

Accepted Answer

A)   woman without a portfolio.
B)   parental refugee.
C)   reluctant entrepreneur.
D)   independent refugee.E) None of the above
F) B) and D)

Question 8

Tatiana was laid off from her manufacturing job and in desperation launched a business providing transportation services for the non-drivers in her community. We would classify Tatiana as:

Accepted Answer

A)   a social entrepreneur.
B)   a creative entrepreneur.
C)   a corporate refugee.
D)   a reluctant entrepreneur.E) All of the above
F) A) and B)

Question 9

Franchisees are not really entrepreneurs because they have a contract with a franchising organization.

Accepted Answer

A) True 
 B)False

Question 10

Most entrepreneurs work shorter hours in their own businesses than they did when working for someone else because they have no boss to report to.

Accepted Answer

A) True 
 B)False

Question 11

Match the term with its definition.
-A knowledgeable person who can offer guidance based on experience in a given field

Accepted Answer

A)  bootstrapping
B)  entrepreneur
C)  entrepreneurial legacy
D)  entrepreneiurial team
E)  franchiseeF) gazelleG) lifestyle businessH) mentorI) microloansJ) paradigm shiftK) small businessL) technician personalityM) A) and J)
N) E) and L)

Question 12

Many small business owners fail to identify and capture new opportunities to grow their businesses.

Accepted Answer

A) True 
 B)False

Question 13

Small businesses that have great prospects for growth are called:

Accepted Answer

A)   gorillas.
B)   antelopes.
C)   jaguars.
D)   gazelles.E) All of the above
F) B) and D)

Question 14

The primary motivation for starting a new business should be to make as much money as possible.

Accepted Answer

A) True 
 B)False

Question 15

Good customer service can be provided by a business of any size but small entrepreneurial companies do it better.

Accepted Answer

A) True 
 B)False

Question 16

Xavier had many ideas about new products but no one in his corporation seemed interested. So Xavier left and founded his own company to create these new products. Xavier is a corporate refugee.

Accepted Answer

A) True 
 B)False

Question 17

Match the term with its definition.
-A small firm that has great prospects for growth

Accepted Answer

A)  attractive small firm
B)  corporate refugee
C)  entrepreneur personality
D)  entrepreneurial opportunity
E)  founderF) high-potential ventureG) manager personalityH) microbusinessI) niche marketJ) reluctant entrepreneurK) social entrepreneurshipL) technician personalityM) C) and J)
N) E) and F)

Question 18

According to the text, managers who buy out founders of existing firms may be classified as entrepreneurs.

Accepted Answer

A) True 
 B)False

Question 19

Valerie has been described as a "free spirit." She has tolerated bu seldom appreciated parental, academic, or even job authority. The factor most likely to lure her to entrepreneurship is

Accepted Answer

A)   profit opportunities.
B)   freedom to operate independently.
C)   enjoyment of doing what she likes to do.
D)   satisfaction in serving the community through the business.E) All of the above
F) B) and D)

Question 20

An entrepreneurial team consists of the owner, the financier, and one key employee.

Accepted Answer

A) True 
 B)False

Exam 1: The Entrepreneurial Life

An entrepreneurial team consists of the owner, the financier, and one key employee.

Correct AnswerverifiedShow Answer

According to the text, managers who buy out founders of existing firms may be classified as entrepreneurs.

Correct AnswerverifiedShow Answer

Match the term with its definition. -A small firm that has great prospects for growth

Correct AnswerverifiedShow Answer

Valerie has been described as a "free spirit." She has tolerated bu seldom appreciated parental, academic, or even job authority. The factor most likely to lure her to entrepreneurship is

Correct AnswerverifiedShow Answer

Walter wanted to be able to make decisions about issues that directly affected his department but in his corporation, the managers made all the decisions. So Walter left the corporation and started his own firm. Walter was looking for:

Correct AnswerverifiedShow Answer

The primary motivation for starting a new business should be to make as much money as possible.

Correct AnswerverifiedShow Answer

Match the term with its definition. -A knowledgeable person who can offer guidance based on experience in a given field

Correct AnswerverifiedShow Answer

Small businesses that have great prospects for growth are called:

Correct AnswerverifiedShow Answer

Natalie enjoyed yarn crafts so she opened a yarn and craft store in her small town. Sales have been dismal; few people visit her store. What mistake did Natalie make?

Correct AnswerverifiedShow Answer

Match the term with its definition. -A person who becomes an entrepreneur to escape an undesirable job situation

Correct AnswerverifiedShow Answer

Franchisees are not really entrepreneurs because they have a contract with a franchising organization.

Correct AnswerverifiedShow Answer

Xavier had many ideas about new products but no one in his corporation seemed interested. So Xavier left and founded his own company to create these new products. Xavier is a corporate refugee.

Correct AnswerverifiedShow Answer

Sally,, a single mother, opened a florist shop to support her family after losing her job in a corporate layoff. She is a(n)

Correct AnswerverifiedShow Answer

Tatiana was laid off from her manufacturing job and in desperation launched a business providing transportation services for the non-drivers in her community. We would classify Tatiana as:

Correct AnswerverifiedShow Answer

Most entrepreneurs work shorter hours in their own businesses than they did when working for someone else because they have no boss to report to.

Correct AnswerverifiedShow Answer

Good customer service can be provided by a business of any size but small entrepreneurial companies do it better.

Correct AnswerverifiedShow Answer

Explain the difference between personal fulfillment and personal satisfaction as an entrepreneurial motivation.

Correct AnswerverifiedPersonal fulfillment refers to helping o...View AnswerShow Answer

Which of the following best fits the definition of a small business?

Correct AnswerverifiedShow Answer

Many small business owners fail to identify and capture new opportunities to grow their businesses.

Correct AnswerverifiedShow Answer

After identifying the five rewards for entrepreneurs, relate each to an example either discussed in the book, in class, or from the community.

Correct AnswerverifiedProfit: The desire to make money is a fa...View AnswerShow Answer

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Personal fulfillment refers to helping o...
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Profit: The desire to make money is a fa...
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