BA109 Module 6 Exam (Chapters 1-5) with complete solution

BA109 Module 6 Exam (Chapters 1-5) with complete solution @ STUVATE-STUVIA USA Which of the following statements about women-owned businesses is false? - The survival rate of women-owned businesses is much lower than that of U.S. businesses overall. T/F About 75 percent of the businesses in the U.S. can be considered "small" businesses. - False Entrepreneurs who start businesses because they cannot find work any other way are: - necessity entrepreneurs. Entrepreneurs typically possess: - a high level of commitment, have a tolerance for ambiguity, are flexible and tenacious. Which of the following is NOT one of the forces driving the entrepreneurial trend in our country? - Shift away from a service economy T/F Small businesses actually create more jobs than the number of jobs big businesses create. - True The recent number of job losses in large corporations compared to the jobs created by small business has changed the perception of ________ for launching a new business. - risk T/F David Birch considers "gazelles" those businesses that grow at 20 percent or more per year and gross at least $100,000 in annual sales. - True T/F The 21st century has seen record numbers of entrepreneurs launching businesses on a global basis. - True T/F 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. - True T/F Diversity may be considered a characteristic of entrepreneurs, as they don't fit any statistical norm. - True Which of the following is/are true regarding business plans? - All of these The nation's small businesses: - All of these T/F There is concern over the future of entrepreneurship because so few high school and college students want to start their own companies. - False T/F Increased entrepreneurial activity is a phenomenon unique to the U.S. - False Small companies that have expanded successfully into foreign markets tend to rely on all but which of the following strategies? - Focus on many countries initially. The majority of small companies are concentrated in the ________ and ________ industries. - retail; service Entrepreneurs that use their skills to create a profitable business that is designed to achieve social and environmental goals for the common good are known as: - social entrepreneurs. Approximately ________ percent of corporate managers who are "cast off" as companies downsize become entrepreneurs. - 20 T/F Surveys show that small business owners believe that, as entrepreneurs, they work harder, earn more money, and are happier than if they worked for a large company. - True The only people who ________ are those who never do anything or never attempt anything new. - fail Which of the following statements is not true regarding the diversity of entrepreneurs? - Minority-owned businesses now account for approximately 22 percent of all businesses in the U.S. T/F Small companies have created at least two-thirds of the net new jobs in the U.S. economy. - True All of the following are characteristics of the typical entrepreneur except: - value of money over achievement. Which of the following statements concerning small businesses and international markets is false? - Because exporting is so complex and requires a company to have so many international experts on staff, exporting is not feasible for small businesses. Entrepreneurs can increase their chances for success if they: - All of these T/F Entrepreneurs are not willing to give up a steady paycheck. - False T/F One study conducted by the Global Entrepreneurship Monitor (GEM) reports that nearly one in eight people in the United states is working to start a business.. - True T/F 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. - False Entrepreneurial couples who work together as co-owners of their business are referred to as: - copreneurs. T/F The opportunity to reap impressive profits is the primary motivation for most entrepreneurs - False According to the U.S. Small Business Administration, a common delineation of a small business is one that employs fewer than: - 100 people. David Birch, president of the research firm Cognetics, suggests that three percent of small businesses create approximately ________ percent of new jobs. - 70 One of the most significant economic developments in recent business history relates to the: - entrepreneurial spirit. Which of the following was not identified as one of the suggestions for small business success? - Develop a business plan as you grow your business. Entrepreneurs who repeatedly start businesses and grow to a sustainable size before striking out again are known as ________ entrepreneurs. - serial An entrepreneur is one who: - creates a new business concept for the purpose of achieving profit and growth by assembling the necessary resources to capitalize on identified opportunities. It is estimated that ________ percent of new businesses fail within two years, while ________ percent fail within five years. - 31; 51 T/F Most entrepreneurs have invested the time to develop a sound business plan. - False T/F Large companies create significantly more patents and other forms of innovations per research and development dollars spent than small firms. - False T/F About 20 percent of downsized corporate managers have become entrepreneurs. - True Small companies that operate globally from their inception are referred to as: - micromultinationals. T/F Most family businesses survive to the fourth generation. - False T/F Research has isolated a set of characteristics that can predict who will succeed as an entrepreneur. - False Melinda and John Perez, both corporate attorneys in New York City, have grown tired of their lengthy daily commute, the stress of their jobs, and the overbearing policies of their employers. They have decided to leave their six-figure jobs and together open a guide service in Wyoming. Melinda and John are examples of: - corporate castoffs and corporate dropouts. T/F Because of their size and limited resources, small businesses rarely create innovations that are important to the U.S. economy. - False Within five years, ________ percent of new businesses will fail. - 51 T/F Ninety-percent of businesses in the United States are family-owned and managed and account for 62 percent of total U.S. employment. - True T/F Family-owned and managed businesses account for 78 percent of all new jobs. - True The profile of an entrepreneur includes: - All of these The demographic attributes of successful entrepreneurs are: - highly diverse relating to age, gender, and ethnicity. T/F Corporate downsizing has spawned a generation of entrepreneurs known as "corporate castoffs." - True T/F Successful "copreneurs" create a division of labor based on expertise. - True T/F One advantage of being your own boss and owning a small business is that work hours are very flexible and leisure time is abundant. - False T/F Starting a part-time business is a popular gateway to entrepreneurship. - True The opportunity to reap impressive profits is the primary motivation for most entrepreneurs. - False Factors that feed the economic boom behind entrepreneurship include: - All of these T/F Serial entrepreneurs repeatedly start businesses and grow them to a sustainable size before striking out again. - True Small companies: - are the leaders in offering training and advancement opportunities to workers The majority of new business owners work: - more than 40 hours per week. T/F Minority-owned businesses have come a long way in the past decade, and their success rate is climbing. - True Entrepreneurs may find benefit from the Internet due to its potential: - as a relatively low-cost solution to expand its revenue-generating abilities. Which of the following is a benefit of entrepreneurship? - The opportunity to gain control over your own destiny, The opportunity to reach your full potential, The opportunity to do what you enjoy. In addition to the opportunity to create their own destiny and enjoy what they do, entrepreneurs also benefit from the ability to: - make a difference in an area important to them and be recognized for those efforts. T/F Minority-owned businesses now account for approximately 22 percent of all businesses in the U.S. - False Potential drawbacks of entrepreneurship may include: - uncertainty of income, risk, long hours, and high stress. In a large organization, an individual may be stifled and limited by a wide variety of factors. However, by owning one's own business, the only limits are one's own creativity, talent, and determination. In this sense, small business ownership offers the advantage of the: - opportunity to reach one's full potential. Most entrepreneurs believe that ________ is what matters most, but ________ is the most important financial resource for a small business owner. - profit; cash Of the 28 million businesse