Test Bank For Entrepreneurship: The Art, Science, and Process For Success
Chapter 01
1) Entrepreneurial business is not important to the U.S. economy.
⊚ true
⊚ false
2) The United States Small Business Administration (SBA) provides a wealth of information
and assistance at all levels of organizational development and management for new
entrepreneurial businesses.
⊚ true
⊚ false
3) A critical element that an entrepreneur must solve for success is to develop the ability to
generate consistent and growing sales.
⊚ true
⊚ false
4) Profit margins are key to successful businesses.
⊚ true
⊚ false
5) Every business that has been documented in the Fortune 500 list began as a new venture by a
single individual or a small group of people.
⊚ true
⊚ false
6) Small companies can take advantage of economies of scale better than large firms.
⊚ true
⊚ false
7) One of the disadvantages of an entrepreneurial business is the burden of creating and
managing organizational policies and procedures.
⊚ true
⊚ false
8) Alexis de Tocqueville, the French statesman, stated that "the United States was not so much a
nation with ventures … but instead a nation of innumerable small ventures."
⊚ true
⊚ false
1
,Test Bank For Entrepreneurship: The Art, Science, and Process For Success
Chapter 01
9) Charles Wilson, secretary of defense for President Eisenhower, stated that "what is good for
General Motors is good for the nation."
⊚ true
⊚ false
10) In the late 1970s and 1980s, the United States occupied the dominant economic position in
the world.
⊚ true
⊚ false
11) The Great Depression of the 1930s encouraged industrial concentration.
⊚ true
⊚ false
12) Today many of the multinational firms in the United States are technology firms that began
in the late 1970s and early 1980s.
⊚ true
⊚ false
13) The Great Depression of the 1930s made it difficult for entrepreneurial businesses to survive
in the United States.
⊚ true
⊚ false
14) One of the huge advantages of starting one's own business is that someone else can be the
boss. Small business owners are motivated by two areas to start a business: the desire to be
their own bosses and to set their own working hours.
⊚ true
⊚ false
15) A customer of a small business could be considered an important stakeholder to the success
of a company.
⊚ true
⊚ false
2
,Test Bank For Entrepreneurship: The Art, Science, and Process For Success
Chapter 01
16) According to Thomas Stanley and William Donko in their book The Millionaire Next Door,
50 percent of the millionaires in the United States are self-employed.
⊚ true
⊚ false
17) According to Thomas Stanley and William Danko in their book, The Millionaire Next Door,
50 percent of the millionaires in the United States are self-employed.
⊚ true
⊚ false
18) Self-employed people make up less than 20 percent of the workers in the United States.
⊚ true
⊚ false
19) The business time line demonstrates both constants and natural evolution in the development
of the United States.
⊚ true
⊚ false
20) The business timeline demonstrates both constants and natural evolution in the development
of the United States.
⊚ true
⊚ false
21) Close to 50 percent of the millionaires in the United States are entrepreneurs.
⊚ true
⊚ false
22) Entrepreneurial businesses fail to provide a means to meet the varied demands that
individuals face in a society.
⊚ true
⊚ false
23) Success in an entrepreneurial business can only be achieved with brutally hard and long
hours.
⊚ true
⊚ false
3
, Test Bank For Entrepreneurship: The Art, Science, and Process For Success
Chapter 01
24) Entrepreneurial businesses have the ability to make greater profits in markets that have been
ignored by larger corporations.
⊚ true
⊚ false
25) Large companies understand their customers more in the local area as compared to small
firms.
⊚ true
⊚ false
26) The federal General Accounting Office did an analysis of the impact of the closure of
military bases and discovered that in the areas where military bases closed, the
unemployment rate was less than the national average. This is because of the starting up of
new small businesses in the areas.
⊚ true
⊚ false
27) Heather Schuck, owner of Glamajama, is an example of how women can concentrate on
more than one facet of life.
⊚ true
⊚ false
28) There are widespread efforts worldwide to encourage the development of small and medium
enterprises.
⊚ true
⊚ false
29) The repayment rate on microloans is typically less than 50 percent, a much lesser repayment
rate than on most types of loans.
⊚ true
⊚ false
30) Venture capitalists typically do not invest more than $2 million.
⊚ true
⊚ false
4
Chapter 01
1) Entrepreneurial business is not important to the U.S. economy.
⊚ true
⊚ false
2) The United States Small Business Administration (SBA) provides a wealth of information
and assistance at all levels of organizational development and management for new
entrepreneurial businesses.
⊚ true
⊚ false
3) A critical element that an entrepreneur must solve for success is to develop the ability to
generate consistent and growing sales.
⊚ true
⊚ false
4) Profit margins are key to successful businesses.
⊚ true
⊚ false
5) Every business that has been documented in the Fortune 500 list began as a new venture by a
single individual or a small group of people.
⊚ true
⊚ false
6) Small companies can take advantage of economies of scale better than large firms.
⊚ true
⊚ false
7) One of the disadvantages of an entrepreneurial business is the burden of creating and
managing organizational policies and procedures.
⊚ true
⊚ false
8) Alexis de Tocqueville, the French statesman, stated that "the United States was not so much a
nation with ventures … but instead a nation of innumerable small ventures."
⊚ true
⊚ false
1
,Test Bank For Entrepreneurship: The Art, Science, and Process For Success
Chapter 01
9) Charles Wilson, secretary of defense for President Eisenhower, stated that "what is good for
General Motors is good for the nation."
⊚ true
⊚ false
10) In the late 1970s and 1980s, the United States occupied the dominant economic position in
the world.
⊚ true
⊚ false
11) The Great Depression of the 1930s encouraged industrial concentration.
⊚ true
⊚ false
12) Today many of the multinational firms in the United States are technology firms that began
in the late 1970s and early 1980s.
⊚ true
⊚ false
13) The Great Depression of the 1930s made it difficult for entrepreneurial businesses to survive
in the United States.
⊚ true
⊚ false
14) One of the huge advantages of starting one's own business is that someone else can be the
boss. Small business owners are motivated by two areas to start a business: the desire to be
their own bosses and to set their own working hours.
⊚ true
⊚ false
15) A customer of a small business could be considered an important stakeholder to the success
of a company.
⊚ true
⊚ false
2
,Test Bank For Entrepreneurship: The Art, Science, and Process For Success
Chapter 01
16) According to Thomas Stanley and William Donko in their book The Millionaire Next Door,
50 percent of the millionaires in the United States are self-employed.
⊚ true
⊚ false
17) According to Thomas Stanley and William Danko in their book, The Millionaire Next Door,
50 percent of the millionaires in the United States are self-employed.
⊚ true
⊚ false
18) Self-employed people make up less than 20 percent of the workers in the United States.
⊚ true
⊚ false
19) The business time line demonstrates both constants and natural evolution in the development
of the United States.
⊚ true
⊚ false
20) The business timeline demonstrates both constants and natural evolution in the development
of the United States.
⊚ true
⊚ false
21) Close to 50 percent of the millionaires in the United States are entrepreneurs.
⊚ true
⊚ false
22) Entrepreneurial businesses fail to provide a means to meet the varied demands that
individuals face in a society.
⊚ true
⊚ false
23) Success in an entrepreneurial business can only be achieved with brutally hard and long
hours.
⊚ true
⊚ false
3
, Test Bank For Entrepreneurship: The Art, Science, and Process For Success
Chapter 01
24) Entrepreneurial businesses have the ability to make greater profits in markets that have been
ignored by larger corporations.
⊚ true
⊚ false
25) Large companies understand their customers more in the local area as compared to small
firms.
⊚ true
⊚ false
26) The federal General Accounting Office did an analysis of the impact of the closure of
military bases and discovered that in the areas where military bases closed, the
unemployment rate was less than the national average. This is because of the starting up of
new small businesses in the areas.
⊚ true
⊚ false
27) Heather Schuck, owner of Glamajama, is an example of how women can concentrate on
more than one facet of life.
⊚ true
⊚ false
28) There are widespread efforts worldwide to encourage the development of small and medium
enterprises.
⊚ true
⊚ false
29) The repayment rate on microloans is typically less than 50 percent, a much lesser repayment
rate than on most types of loans.
⊚ true
⊚ false
30) Venture capitalists typically do not invest more than $2 million.
⊚ true
⊚ false
4
