,Appendix A—Managing Small Business Start-Ups
TRUE/FALSE
1. Sole proprietorships are the fastest growing segment of small business in both the U.S. and Canada.
ANS: T PTS: 1 DIF: 1 REF: 600
NAT: AACSB Analytic | Creation of Value TYP: F
2. The fastest growing segment of small business in both the U.S. and Canada is partnerships.
ANS: F PTS: 1 DIF: 1 REF: 600
NAT: AACSB Analytic | Creation of Value TYP: F
3. The process of initiating a business venture, gathering and organizing the appropriate resources,
and assuming the associated risks and rewards refers to Entrepreneurship.
ANS: T PTS: 1 DIF: 1 REF: 600
NAT: AACSB Analytic | Creation of Value TYP: F
4. Sole proprietorships are the fastest growing segment of small business.
ANS: T PTS: 1 DIF: 1 REF: 600
NAT: AACSB Analytic | Strategy TYP: F
5. Entrepreneurs in the sustainer category are rewarded by the personal satisfaction of being business
owners.
ANS: F PTS: 1 DIF: 2 REF: 600
NAT: AACSB Analytic | Creation of Value TYP: F
6. 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.
ANS: T PTS: 1 DIF: 2 REF: 600
NAT: AACSB Analytic | Creation of Value TYP: F
7. Entrepreneurs in the optimizer category are rewarded by the personal satisfaction of being business
owners.
ANS: T PTS: 1 DIF: 2 REF: 600
NAT: AACSB Analytic | Creation of Value TYP: F
8. Hard workers, who thrive on the challenge of building a larger more profitable business, consist of
20% of small business owners.
ANS: T PTS: 1 DIF: 3 REF: 601
NAT: AACSB Analytic | Individual Dynamics TYP: F
590
, 591 Appendix A/Managing Small Business Start-Ups
9. Idealists, who are rewarded by chance to work on something new and creative, consist of 15% of
small business owners.
ANS: F PTS: 1 DIF: 3 REF: 601
NAT: AACSB Analytic | Creation of Value TYP: F
10. Small businesses represent 68 percent of all firms and employ about three quarters of all private
sector employees.
ANS: F PTS: 1 DIF: 3 REF: 601
NAT: AACSB Analytic | Creation of Value TYP: F
11. The primary focus of most entrepreneurs is retail, manufacturing and/or service type of businesses.
ANS: T PTS: 1 DIF: 1 REF: 602
NAT: AACSB Analytic | Creation of Value TYP: F
12. Hong Kong is the most entrepreneurial country, with 47.4 percent of individuals age 18 to 64
starting a new business.
ANS: F PTS: 1 DIF: 3 REF: 602
NAT: AACSB Analytic | Creation of Value TYP: F
13. Small businesses, according to the Small Business Administration, employ more than 90 percent of
the private workforce in the United States and are responsible for 85 percent of all business
innovations.
ANS: F PTS: 1 DIF: 3 REF: 603
NAT: AACSB Analytic | Creation of Value TYP: F
14. Entrepreneurship and small business in the United States is an engine for job creation and
innovation.
ANS: T PTS: 1 DIF: 1 REF: 603
NAT: AACSB Analytic | Creation of Value TYP: F
15. Women and minorities who have found their opportunities limited in the corporate world are
seeing intrapreneurship as the only way to go.
ANS: F PTS: 1 DIF: 2 REF: 604
NAT: AACSB Analytic | Individual Dynamics TYP: F
16. Immigrants are more likely to start small businesses than native-born Americans.
ANS: T PTS: 1 DIF: 1 REF: 604
NAT: AACSB Analytic | Creation of Value TYP: F
, Appendix A/Managing Small Business Start-Ups 592
17. Entrepreneurs are in more control of their environment, generally speaking, and can be expected to
have an external locus of control.
ANS: F PTS: 1 DIF: 2 REF: 605
NAT: AACSB Analytic | Creation of Value TYP: F
18. According to a survey, majority of entrepreneurs work approximately 80 hours or more per week.
ANS: F PTS: 1 DIF: 2 REF: 605
NAT: AACSB Analytic | Creation of Value TYP: F
19. People who have high achievement needs like to set their own goals, which are moderately
difficult.
ANS: T PTS: 1 DIF: 2 REF: 605
NAT: AACSB Analytic | Creation of Value TYP: F
20. Every time Tina Faye does poorly on an exam and blames some outside factor, she can be
described as having an external locus of control.
ANS: T PTS: 1 DIF: 2 REF: 605
NAT: AACSB Analytic | Individual Dynamics TYP: A
21. The psychological characteristic that allows a person to be untroubled by disorder and uncertainty
is called tolerance for ambiguity.
ANS: T PTS: 1 DIF: 1 REF: 606
NAT: AACSB Analytic | Individual Dynamics TYP: F
22. A tolerance for ambiguity is a psychological characteristic that enables a person to accept the threat
of competition and potential risk.
ANS: F PTS: 1 DIF: 2 REF: 606
NAT: AACSB Analytic | Individual Dynamics TYP: F
23. Entrepreneurs are able to deal easily with delays and exhibit high levels of patience, knowing that
the results will be worth the wait.
ANS: F PTS: 1 DIF: 2 REF: 606
NAT: AACSB Analytic | Individual Dynamics TYP: F
24. Social entrepreneurs have a primary goal of improving society rather than maximizing profits.
ANS: T PTS: 1 DIF: 2 REF: 607
NAT: AACSB Analytic | Ethical Responsibilities TYP: F
25. 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.
ANS: T PTS: 1 DIF: 2 REF: 607
NAT: AACSB Analytic | Ethical Responsibilities TYP: F
TRUE/FALSE
1. Sole proprietorships are the fastest growing segment of small business in both the U.S. and Canada.
ANS: T PTS: 1 DIF: 1 REF: 600
NAT: AACSB Analytic | Creation of Value TYP: F
2. The fastest growing segment of small business in both the U.S. and Canada is partnerships.
ANS: F PTS: 1 DIF: 1 REF: 600
NAT: AACSB Analytic | Creation of Value TYP: F
3. The process of initiating a business venture, gathering and organizing the appropriate resources,
and assuming the associated risks and rewards refers to Entrepreneurship.
ANS: T PTS: 1 DIF: 1 REF: 600
NAT: AACSB Analytic | Creation of Value TYP: F
4. Sole proprietorships are the fastest growing segment of small business.
ANS: T PTS: 1 DIF: 1 REF: 600
NAT: AACSB Analytic | Strategy TYP: F
5. Entrepreneurs in the sustainer category are rewarded by the personal satisfaction of being business
owners.
ANS: F PTS: 1 DIF: 2 REF: 600
NAT: AACSB Analytic | Creation of Value TYP: F
6. 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.
ANS: T PTS: 1 DIF: 2 REF: 600
NAT: AACSB Analytic | Creation of Value TYP: F
7. Entrepreneurs in the optimizer category are rewarded by the personal satisfaction of being business
owners.
ANS: T PTS: 1 DIF: 2 REF: 600
NAT: AACSB Analytic | Creation of Value TYP: F
8. Hard workers, who thrive on the challenge of building a larger more profitable business, consist of
20% of small business owners.
ANS: T PTS: 1 DIF: 3 REF: 601
NAT: AACSB Analytic | Individual Dynamics TYP: F
590
, 591 Appendix A/Managing Small Business Start-Ups
9. Idealists, who are rewarded by chance to work on something new and creative, consist of 15% of
small business owners.
ANS: F PTS: 1 DIF: 3 REF: 601
NAT: AACSB Analytic | Creation of Value TYP: F
10. Small businesses represent 68 percent of all firms and employ about three quarters of all private
sector employees.
ANS: F PTS: 1 DIF: 3 REF: 601
NAT: AACSB Analytic | Creation of Value TYP: F
11. The primary focus of most entrepreneurs is retail, manufacturing and/or service type of businesses.
ANS: T PTS: 1 DIF: 1 REF: 602
NAT: AACSB Analytic | Creation of Value TYP: F
12. Hong Kong is the most entrepreneurial country, with 47.4 percent of individuals age 18 to 64
starting a new business.
ANS: F PTS: 1 DIF: 3 REF: 602
NAT: AACSB Analytic | Creation of Value TYP: F
13. Small businesses, according to the Small Business Administration, employ more than 90 percent of
the private workforce in the United States and are responsible for 85 percent of all business
innovations.
ANS: F PTS: 1 DIF: 3 REF: 603
NAT: AACSB Analytic | Creation of Value TYP: F
14. Entrepreneurship and small business in the United States is an engine for job creation and
innovation.
ANS: T PTS: 1 DIF: 1 REF: 603
NAT: AACSB Analytic | Creation of Value TYP: F
15. Women and minorities who have found their opportunities limited in the corporate world are
seeing intrapreneurship as the only way to go.
ANS: F PTS: 1 DIF: 2 REF: 604
NAT: AACSB Analytic | Individual Dynamics TYP: F
16. Immigrants are more likely to start small businesses than native-born Americans.
ANS: T PTS: 1 DIF: 1 REF: 604
NAT: AACSB Analytic | Creation of Value TYP: F
, Appendix A/Managing Small Business Start-Ups 592
17. Entrepreneurs are in more control of their environment, generally speaking, and can be expected to
have an external locus of control.
ANS: F PTS: 1 DIF: 2 REF: 605
NAT: AACSB Analytic | Creation of Value TYP: F
18. According to a survey, majority of entrepreneurs work approximately 80 hours or more per week.
ANS: F PTS: 1 DIF: 2 REF: 605
NAT: AACSB Analytic | Creation of Value TYP: F
19. People who have high achievement needs like to set their own goals, which are moderately
difficult.
ANS: T PTS: 1 DIF: 2 REF: 605
NAT: AACSB Analytic | Creation of Value TYP: F
20. Every time Tina Faye does poorly on an exam and blames some outside factor, she can be
described as having an external locus of control.
ANS: T PTS: 1 DIF: 2 REF: 605
NAT: AACSB Analytic | Individual Dynamics TYP: A
21. The psychological characteristic that allows a person to be untroubled by disorder and uncertainty
is called tolerance for ambiguity.
ANS: T PTS: 1 DIF: 1 REF: 606
NAT: AACSB Analytic | Individual Dynamics TYP: F
22. A tolerance for ambiguity is a psychological characteristic that enables a person to accept the threat
of competition and potential risk.
ANS: F PTS: 1 DIF: 2 REF: 606
NAT: AACSB Analytic | Individual Dynamics TYP: F
23. Entrepreneurs are able to deal easily with delays and exhibit high levels of patience, knowing that
the results will be worth the wait.
ANS: F PTS: 1 DIF: 2 REF: 606
NAT: AACSB Analytic | Individual Dynamics TYP: F
24. Social entrepreneurs have a primary goal of improving society rather than maximizing profits.
ANS: T PTS: 1 DIF: 2 REF: 607
NAT: AACSB Analytic | Ethical Responsibilities TYP: F
25. 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.
ANS: T PTS: 1 DIF: 2 REF: 607
NAT: AACSB Analytic | Ethical Responsibilities TYP: F
