question

Approximately 600,000 new businesses are launched in the U.S. each year by entrepreneurs.

answer

True

question

The process of initiating a business venture, gathering and organizing the appropriate resources, and assuming the associated risks and rewards refers to entrepreneurship.

answer

True

question

Sole proprietorships are one of the fastest growing segment of small business.

answer

True

question

Entrepreneurs in the sustainer category are rewarded by the personal satisfaction of being business owners.

answer

False

question

Entrepreneurs in the sustainer category alike the chance to balance work and personal life and often don't want the business to grow too large.

answer

True

question

Entrepreneurs in the optimizer category are rewarded by the personal satisfaction of being business owners.

answer

True

question

Optimizers are rewarded by chance to work on something new and creative.

answer

False

question

During turbulent times, small business formation is the primary process by which an economy recreates and reinvents itself.

answer

True

question

China is the most entrepreneurial country, with 24 percent of individuals age 18 to 64 starting a new business.

answer

True

question

Small businesses, according to the Small Business Administration, employ more than 90 percent of the private workforce in the United States.

answer

False

question

Entrepreneurship and small business in the United States is an engine for job creation and innovation.

answer

True

question

Women and minorities who have found their opportunities limited in the corporate world are seeing intrapreneurship as the only way to go.

answer

False

question

Immigrants are more likely to start small businesses than native-born Americans.

answer

True

question

Minorities show a high rate of entrepreneurship in the United States, owning 5.8 million firms in 2007 that generated $1 trillion in revenues.

answer

True

question

Particularly in a turbulent environment, the three most important traits of successful entrepreneurs are realism, flexibility, and passion.

answer

True

question

The psychological characteristic that allows a person to be untroubled by disorder and uncertainty is called tolerance for ambiguity.

answer

True

question

A need to achieve is a psychological characteristic that means people are motivated to excell and pick situations in which success is likely.

answer

True

question

Entrepreneurs are able to deal easily with delays and exhibit high levels of patience, knowing that the results will be worth the wait.

answer

False

question

Social entrepreneurs have a primary goal of improving society rather than maximizing profits.

answer

True

question

Social entrepreneurs are leaders who are committed to both good business and ensuring high profitability.

answer

False

question

Social entrepreneurship combines the creativity, business smarts, passion, and hard work of the traditional entrepreneur with a mission to change the world for the better.

answer

True

question

The first step in pursuing an entrepreneurial dream is to come up with a viable idea.

answer

True

question

The most common source of new business ideas comes from in-depth understanding of an industry or profession.

answer

True

question

A document specifying the business details prepared by an entrepreneur prior to opening a new business is known as a business plan.

answer

True

question

A business plan for a small business should be detailed, encompassing at least 100 pages.

answer

False

question

Since a corporation is a legal structure reserved for large firms, small businesses have two basic choices for legal structure of their company: proprietorship and partnership.

answer

False

question

A sole proprietorship an unincorporated business owned by two or more people.

answer

False

question

The drawbacks of proprietorship include unlimited liability and difficulty in obtaining financing.

answer

True

question

Two principle advantages of forming a corporation are continuity and limits on the owners' liability.

answer

True

question

Setting standards too high is a common pitfall for keeping a small business running successfully.

answer

False

question

The failure rate for high-tech business is lower than the failure rate for conventional businesses.

answer

False

question

Borrowing from family and friends is a common source of debt financing for a start-up business.

answer

True

question

The Small Business Administration (SBA) can provide loan financing for small business start-up.

answer

True

question

Equity financing is when funds are invested in exchange for ownership in the company.

answer

True

question

A venture capital firm is a group of companies or individuals that invests money in new or expanding businesses for ownership and potential profits.

answer

True

question

The advantage of buying an existing business is the ability to develop and design the business in the entrepreneur's own way.

answer

False

question

An attractive innovation for entrepreneurs who want to start a business from scratch is to join a business incubator.

answer

True

question

To succeed in the competitive online market, aspiring entrepreneurs need to identify a market niche that isn't being served by other companies.

answer

True

question

Entrepreneurs see themselves as being less in control of their environment, generally speaking, and can be expected to have an external locus of control.

answer

False

question

The first stage of growth for an entrepreneurial company is the investment stage.

answer

False

question

At the success stage, the company's substantial financial gains may come at the cost of losing its advantages of small size.

answer

False

question

At the success stage of growth, a company's substantial financial gains may come at the cost of losing its advantages of small size, including flexibility and the entrepreneurial spirit.

answer

False

question

At Stage 3 of growth for an entrepreneurial firm, managers often are hired to take over duties performed by the owner.

answer

True

question

The takeoff stage is the last of the five stages of growth for an entrepreneurial company.

answer

False

question

In the start-up stage of an entrepreneurial business, formal planning tends to be nonexistent except for the business plan.

answer

True

question

The owner should start implementing more structured control systems by Stage 3 of growth for an entrepreneurial firm.

answer

True

question

A domain name gives a company an address on the Web and a unique identity.

answer

True

BMGT 364, Chapter 6, True or False – Flashcards

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