Question 1

Increasing numbers of women are discovering that the best way to break the "glass ceiling" that prevents them from rising to the top of many organizations is to start their own companies.

Accepted Answer

A) True 
 B)False

Question 2

People ________ and older have demonstrated the greatest increase in entrepreneurial activity over the last 25 years of any age group.

Accepted Answer

A)  55
B)  45
C)  35
D)  25E) A) and B)
F) A) and C)

Question 3

The majority of new business owners devote more than 40 hours per week to their companies.

Accepted Answer

A) True 
 B)False

Question 4

The faster a small company grows, the greater its appetite for cash.

Accepted Answer

A) True 
 B)False

Question 5

The profile of an entrepreneur includes ________.

Accepted Answer

A)  a desire for responsibility and moderate risk
B)  confidence in the ability to succeed and determination
C)  a high level of energy, a desire for immediate feedback and a future orientation
D)  All the aboveE) B) and C)
F) C) and D)

Question 6

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

Accepted Answer

A)  Although terrorism and global recession have slowed the growth of international trade somewhat, global opportunities for small businesses have a long-term positive outlook.
B)  Although the U.S. is an attractive market, approximately 95 percent of the world's population lives outside its borders.
C)  Because exporting is so complex and requires a company to have so many international experts on staff, exporting is not feasible for small businesses.
D)  Small companies comprise 97 percent of all businesses engaged in exporting, yet they account for only 30 percent of the nation's export sales.E) B) and D)
F) A) and B)

Question 7

International opportunities are ________.

Accepted Answer

A)  clearly out of reach for entrepreneurial businesses
B)  now within the reach of entrepreneurial businesses and may present significant opportunities
C)  highly limited for entrepreneurs
D)  risky and do not merit serious consideration by the entrepreneurE) A) and B)
F) A) and C)

Question 8

Small businesses actually create more jobs than the number of jobs big businesses create.

Accepted Answer

A) True 
 B)False

Question 9

Diversity may be considered a characteristic of entrepreneurs, as they don't fit any statistical norm.

Accepted Answer

A) True 
 B)False

Question 10

The majority of new business owners work fewer than 40 hours per week.

Accepted Answer

A) True 
 B)False

Question 11

Large companies create significantly more patents and other forms of innovations per research and development dollars spent than small firms.

Accepted Answer

A) True 
 B)False

Question 12

About 75 percent of the businesses in the U.S. can be considered "small" businesses.

Accepted Answer

A) True 
 B)False

Question 13

According to the Bureau of Labor Statistics, ________ percent of new businesses fail within two years, while ________ percent fail within five years.

Accepted Answer

A)  34; 52
B)  51; 64
C)  35; 41
D)  51; 31E) A) and B)
F) B) and C)

Question 14

All of the following are characteristics of the typical entrepreneur except ________.

Accepted Answer

A)  confidence in his/her ability to succeed
B)  value of money over achievement
C)  desire for immediate feedback
D)  a future orientationE) A) and B)
F) A) and D)

Question 15

Current competitive conditions favor large companies over smaller ones because of their flexibility combined with their ability to use their size to achieve efficiency and economies of scale.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A)  5
B)  15
C)  20
D)  45E) A) and B)
F) C) and D)

Question 17

An entrepreneur is one who ________.

Accepted Answer

A)  is willing to attempt to implement a business concept and then give up if it does not meet immediate expectations
B)  understands the process of developing an idea and does not need to understand what it means to bring that idea to a viable business concept
C)  knows that the concept they are about to develop will result in a profitable business
D)  creates a new business concept for the purpose of achieving profit and growth by assembling the necessary resources to capitalize on identified opportunitiesE) A) and B)
F) A) and C)

Question 18

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

Accepted Answer

A)  Twenty-five
B)  Fifty
C)  Seventy
D)  NinetyE) All of the above
F) A) and D)

Question 19

Entrepreneurs who start businesses because they cannot find work any other way are ________.

Accepted Answer

A)  necessity entrepreneurs
B)  serial entrepreneurs
C)  opportunity entrepreneurs
D)  corporate cast-offsE) A) and B)
F) All of the above

Question 20

The shift to a service economy has not had a significant impact on entrepreneurial opportunities.

Accepted Answer

A) True 
 B)False

Exam 1: The Foundations of Entrepreneurship

Entrepreneurs who start businesses because they cannot find work any other way are ________.

Correct AnswerverifiedShow Answer

International opportunities are ________.

Correct AnswerverifiedShow Answer

About 75 percent of the businesses in the U.S. can be considered "small" businesses.

Correct AnswerverifiedShow Answer

Small businesses actually create more jobs than the number of jobs big businesses create.

Correct AnswerverifiedShow Answer

Diversity may be considered a characteristic of entrepreneurs, as they don't fit any statistical norm.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

All of the following are characteristics of the typical entrepreneur except ________.

Correct AnswerverifiedShow Answer

Large companies create significantly more patents and other forms of innovations per research and development dollars spent than small firms.

Correct AnswerverifiedShow Answer

The shift to a service economy has not had a significant impact on entrepreneurial opportunities.

Correct AnswerverifiedShow Answer

The majority of new business owners work fewer than 40 hours per week.

Correct AnswerverifiedShow Answer

The profile of an entrepreneur includes ________.

Correct AnswerverifiedShow Answer

The majority of new business owners devote more than 40 hours per week to their companies.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Current competitive conditions favor large companies over smaller ones because of their flexibility combined with their ability to use their size to achieve efficiency and economies of scale.

Correct AnswerverifiedShow Answer

The faster a small company grows, the greater its appetite for cash.

Correct AnswerverifiedShow Answer

An entrepreneur is one who ________.

Correct AnswerverifiedShow Answer

Increasing numbers of women are discovering that the best way to break the "glass ceiling" that prevents them from rising to the top of many organizations is to start their own companies.

Correct AnswerverifiedShow Answer

People ________ and older have demonstrated the greatest increase in entrepreneurial activity over the last 25 years of any age group.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

According to the Bureau of Labor Statistics, ________ percent of new businesses fail within two years, while ________ percent fail within five years.

Correct AnswerverifiedShow Answer

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According to the Bureau of Labor Statistics, percent of new businesses fail within two years, while percent fail within five years.

Correct Answer
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