Test Bank - Essentials of Entrepreneurship and Small Business Management, 10th Edition – Norman M. Scarborough – ISBN 9780138340421 (Chapters 1–17)

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Essentials of Entrepreneurship
and Small Business
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Management 10th Edition
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TEST BANK
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Norman M. Scarborough
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Comprehensive Test Bank for Instructors
and Students
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© Norman M. Scarborough. All rights reserved.
Reproduction or distribution without permission is
prohibited.
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9780138340421




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— Essentials of Entrepreneurship and Small Business
Management, 10th Edition — Norman M. Scarborough



TABLE OF CONTENTS
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SECTION I: THE CHALLENGE OF ENTREPRENEURSHIP
Chapter 1: The Foundations of Entrepreneurship
Chapter 2: Ethics and Social Responsibility: Doing the Right Thing
Chapter 3: Creativity and Innovation: Keys to Entrepreneurial Success
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SECTION II: THE ENTREPRENEURIAL JOURNEY BEGINS
Chapter 4: Conducting a Feasibility Analysis and Designing a Business Model
Chapter 5: Crafting a Business Plan and Building a Solid Strategic Plan
Chapter 6: Forms of Business Ownership
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Chapter 7: Buying an Existing Business
Chapter 8: Franchising and the Entrepreneur
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SECTION III: LAUNCHING THE BUSINESS
Chapter 9: Building a Powerful Bootstrap Marketing Plan
Chapter 10: E-Commerce and the Entrepreneur
Chapter 11: Pricing and Credit Strategies
Chapter 12: Creating a Successful Financial Plan
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Chapter 13: Managing Cash Flow
Chapter 14: Choosing the Right Location and Layout

SECTION IV: PUTTING THE BUSINESS PLAN TO WORK: SOURCES
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OF FUNDS
Chapter 15: Sources of Financing: Equity and Debt
Chapter 16: Global Aspects of Entrepreneurship
Chapter 17: Building a New Venture Team and Planning for the Next
Generation
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© MEDCONNOISSEUR

, Essentials of Entrepreneurship and Small Business Management, 10e (Scarborough)
Chapter 1 The Foundations of Entrepreneurship

1) Globally, how does the United States compare with other countries in terms of entrepreneurial
activity?
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A) They lag behind other high-income economies at just 10.8 percent of new startups.
B) They have fewer, but more successful startups.
C) They are well above the global average of 12.9 percent.
D) They received more backing and resources from the government.
Answer: C
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Diff: 1
Learning Obj.: 1.1 Define the role of the entrepreneur in business in the United States and
around the world.
AACSB: Reflective Thinking

2) According to the Kauffman Foundation, about how many entrepreneurs in the United States
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start businesses of their own because they cannot find jobs elsewhere?
A) 7 percent
B) 19 percent
C) 32 percent
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D) 43 percent
Answer: B
Diff: 2
Learning Obj.: 1.1 Define the role of the entrepreneur in business in the United States and
around the world.
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AACSB: Reflective Thinking

3) How has the downsizing trend among large companies impacted business in the United
States?
A) The rate of technological advancement has slowed.
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B) Large firms take advantage of their hierarchical structure to exploit new markets.
C) Large firms have better technology that leads to competitive advantage.
D) Small, nimble competitors are better able to exploit niche markets.
Answer: D
Diff: 2
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Learning Obj.: 1.1 Define the role of the entrepreneur in business in the United States and
around the world.
AACSB: Analytical Thinking
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Copyright © 2026 Pearson Education, Inc.

, 4) Today, what matters most in the economic structure influencing the United States?
A) The growth of small businesses
B) Long-term profitability
C) Factors of production
D) Knowledge and information
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Answer: D
Diff: 2
Learning Obj.: 1.1 Define the role of the entrepreneur in business in the United States and
around the world.
AACSB: Analytical Thinking
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5) The gig economy makes up 58 percent of the U.S. workforce.
Answer: FALSE
Diff: 1
Learning Obj.: 1.1 Define the role of the entrepreneur in business in the United States and
around the world.
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AACSB: Application of Knowledge

6) One study conducted by the Global Entrepreneurship Monitor (GEM) reports that nearly one
in five people in the United States is working to start a business.
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Answer: TRUE
Diff: 2
Learning Obj.: 1.1 Define the role of the entrepreneur in business in the United States and
around the world.
AACSB: Application of Knowledge
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7) According to Gallup's Builder Profile assessment, how do successful entrepreneurs manage
risk?
A) They understand that the nature of entrepreneurship is based on risk.
B) They will take risks only to increase their probability of success.
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C) They are willing to take higher risks for higher rewards.
D) They systematically work to eliminate it.
Answer: D
Diff: 2
Learning Obj.: 1.2 Describe the entrepreneurial profile.
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AACSB: Application of Knowledge
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Copyright © 2026 Pearson Education, Inc.