Chapter 1 –
Entrepreneurs: The Driving Force Behind Small Businesses
Multiple Choice Questions
1. The nation is rapidly moving from:
a) Industrial to capitalism.
b) Capitalism to industrial.
c) Industrial to knowledge-based.
d) None of the above.
Answer c (Introduction Page 3)
2. Which of the following corporate trends have contributed to the growth of
entrepreneurship?
a) The acquisition and merging of mega corporations
b) The idea that “small is beautiful” in large companies, resulting in less hierarchy and
layers of management
c) The flood of venture capital being made available to small businesses
d) The downturn in international markets forcing a focus on the domestic market
Answer b (Introduction Page 3)
3. Entrepreneurial education:
a) Has become extremely popular.
b) Universities are not able to meet the demand.
c) More courses are being offered in entrepreneurship.
d) All of the above.
Answer d (Why the Boom: The Fuel Feeding the Entrepreneurial Fire Pages 18)
, 4. Researchers who study entrepreneurs have discovered that:
a) successful entrepreneurs start with an idea, resources, and a small management team.
b) there is one key set of traits that mark a successful entrepreneur.
c) entrepreneurs desire responsibility and are willing to take moderate risks.
d) the most successful entrepreneurs are willing to take extreme risks and bet the farm in
order to succeed.
Answer c (What is an Entrepreneur? Page 6)
5. Dirk wants to be in control. He’s tired of taking orders from others and wants to feel a
sense of accountability for the outcome of his work. Dirk displays the entrepreneurial
characteristic of:
a) the desire for immediate feedback.
b) a desire for responsibility.
c) confidence in his ability to succeed.
d) a high energy level.
Answer a (What is an Entrepreneur? Page 7)
6. Entrepreneurs seem to be characterized by:
a) a desire for money.
b) an inability to organize but strong conceptual skills.
c) a desire to work alone because of weak management skills and a need for control.
d) a high energy level.
Answer d (What is an Entrepreneur? Page 7)
7. Juan is able to work well in a constantly changing atmosphere and has little concern for
what tomorrow will bring. Juan demonstrates which of the following characteristics of a
typical entrepreneur?
a) The willingness to take extreme risks
b) A desire for immediate feedback
, c) A tolerance for ambiguity
d) A future orientation
Answer c (What is an Entrepreneur? Page 8)
8. Entrepreneurs start businesses for a number of reasons including:
a) an opportunity to make a difference.
b) having to deal with less government regulation than as an executive of a large company.
c) a much lower risk of career failure due to layoff or acquisition than working for a large
company.
d) the opportunity to get rich much quicker than if they work for a large company.
Answer a (The Benefits of Owning a Small Business Page 13)
9. Surveys show that owners of small businesses believe that:
a) they work harder on their own than if they worked for someone else.
b) they earn less than if they worked for someone else.
c) they are less satisfied than if they worked for someone else.
d) venture capital is relatively easy to raise.
Answer a (The Benefits of Owning a Small Business Page 13)
10. A significant benefit of starting your own company is:
a) more leisure time because there is less of a need to punch a time clock.
b) contributing to society and being recognized for your efforts.
c) to be able to choose who you work with or don't work with.
d) more job security than working for a large corporation.
Answer b (The Benefits of Owning a Small Business Page 13)
11. Kyoto has started an interior decoration business. Everything about the business, from its
name to the color schemes used in the corporate letterhead, is an expression of her
, personality. She sees this business as her greatest personal achievement. Kyoto is
experiencing the opportunity _____________ of small business ownership.
a) to reap unlimited profits
b) to contribute to society
c) to make a difference
d) to reach her full potential
Answer d (The Benefits of Owning a Small Business Page 13)
12. Mary and Ted are discussing starting a new business and are asking themselves a series of
questions like; “What is the worst that could happen if we fail?” “How likely is that to
happen?” They are assessing which potential drawback of small business ownership?
a) The long hours and hard work involved
b) The risk of losing their entire investment
c) The lower quality of life they’ll experience
d) The uncertainty of their income
Answer b (The Potential Drawback of Entrepreneurship Page 15)
13. Potential drawbacks of small business ownership include:
a) a relatively low guaranteed income.
b) a significantly freer personal schedule but less personal income and assets with which to
enjoy the more relaxed schedule.
c) a high likelihood of a lower quality of life while starting and establishing the small
business.
d) relatively limited potential for further personal development.
Answer c (The Potential Drawback of Entrepreneurship Page 17)
Entrepreneurs: The Driving Force Behind Small Businesses
Multiple Choice Questions
1. The nation is rapidly moving from:
a) Industrial to capitalism.
b) Capitalism to industrial.
c) Industrial to knowledge-based.
d) None of the above.
Answer c (Introduction Page 3)
2. Which of the following corporate trends have contributed to the growth of
entrepreneurship?
a) The acquisition and merging of mega corporations
b) The idea that “small is beautiful” in large companies, resulting in less hierarchy and
layers of management
c) The flood of venture capital being made available to small businesses
d) The downturn in international markets forcing a focus on the domestic market
Answer b (Introduction Page 3)
3. Entrepreneurial education:
a) Has become extremely popular.
b) Universities are not able to meet the demand.
c) More courses are being offered in entrepreneurship.
d) All of the above.
Answer d (Why the Boom: The Fuel Feeding the Entrepreneurial Fire Pages 18)
, 4. Researchers who study entrepreneurs have discovered that:
a) successful entrepreneurs start with an idea, resources, and a small management team.
b) there is one key set of traits that mark a successful entrepreneur.
c) entrepreneurs desire responsibility and are willing to take moderate risks.
d) the most successful entrepreneurs are willing to take extreme risks and bet the farm in
order to succeed.
Answer c (What is an Entrepreneur? Page 6)
5. Dirk wants to be in control. He’s tired of taking orders from others and wants to feel a
sense of accountability for the outcome of his work. Dirk displays the entrepreneurial
characteristic of:
a) the desire for immediate feedback.
b) a desire for responsibility.
c) confidence in his ability to succeed.
d) a high energy level.
Answer a (What is an Entrepreneur? Page 7)
6. Entrepreneurs seem to be characterized by:
a) a desire for money.
b) an inability to organize but strong conceptual skills.
c) a desire to work alone because of weak management skills and a need for control.
d) a high energy level.
Answer d (What is an Entrepreneur? Page 7)
7. Juan is able to work well in a constantly changing atmosphere and has little concern for
what tomorrow will bring. Juan demonstrates which of the following characteristics of a
typical entrepreneur?
a) The willingness to take extreme risks
b) A desire for immediate feedback
, c) A tolerance for ambiguity
d) A future orientation
Answer c (What is an Entrepreneur? Page 8)
8. Entrepreneurs start businesses for a number of reasons including:
a) an opportunity to make a difference.
b) having to deal with less government regulation than as an executive of a large company.
c) a much lower risk of career failure due to layoff or acquisition than working for a large
company.
d) the opportunity to get rich much quicker than if they work for a large company.
Answer a (The Benefits of Owning a Small Business Page 13)
9. Surveys show that owners of small businesses believe that:
a) they work harder on their own than if they worked for someone else.
b) they earn less than if they worked for someone else.
c) they are less satisfied than if they worked for someone else.
d) venture capital is relatively easy to raise.
Answer a (The Benefits of Owning a Small Business Page 13)
10. A significant benefit of starting your own company is:
a) more leisure time because there is less of a need to punch a time clock.
b) contributing to society and being recognized for your efforts.
c) to be able to choose who you work with or don't work with.
d) more job security than working for a large corporation.
Answer b (The Benefits of Owning a Small Business Page 13)
11. Kyoto has started an interior decoration business. Everything about the business, from its
name to the color schemes used in the corporate letterhead, is an expression of her
, personality. She sees this business as her greatest personal achievement. Kyoto is
experiencing the opportunity _____________ of small business ownership.
a) to reap unlimited profits
b) to contribute to society
c) to make a difference
d) to reach her full potential
Answer d (The Benefits of Owning a Small Business Page 13)
12. Mary and Ted are discussing starting a new business and are asking themselves a series of
questions like; “What is the worst that could happen if we fail?” “How likely is that to
happen?” They are assessing which potential drawback of small business ownership?
a) The long hours and hard work involved
b) The risk of losing their entire investment
c) The lower quality of life they’ll experience
d) The uncertainty of their income
Answer b (The Potential Drawback of Entrepreneurship Page 15)
13. Potential drawbacks of small business ownership include:
a) a relatively low guaranteed income.
b) a significantly freer personal schedule but less personal income and assets with which to
enjoy the more relaxed schedule.
c) a high likelihood of a lower quality of life while starting and establishing the small
business.
d) relatively limited potential for further personal development.
Answer c (The Potential Drawback of Entrepreneurship Page 17)
