Solution and Answer Guide: Greene, Entrepreneurship: Ideas in Action, 7th Edition CY 2025, Core ISBN 9798214068992; Chapter 1: Should You Become an
Entrepreneur?
Solution and Answer Guide
GREENE, ENTREPRENEURSHIP : IDEAS IN ACTION, 7TH EDITION CY 2025, C ORE ISBN
9798214068992; C HAPTER 1: SHOULD YOU BECOME AN ENTREPRENEUR ?
TABLE OF CONTENTS
Lesson Review...............................................................................................................1
Lesson 1.1 All About Entrepreneurship.....................................................................................................1
Lesson 1.2 Entrepreneurship and You....................................................................................................... 2
Lesson 1.3 Explore Ideas and Opportunities............................................................................................. 3
Lesson 1.4 Problem Solving for Entrepreneurs.........................................................................................3
End of Chapter Review.................................................................................................4
LESSON REVIEW
LESSON 1.1 ALL ABOUT ENTREPRENEURSHIP
Check Your Understanding
1. What is the outcome when entrepreneurs conduct ethical business practices? (1.1.1)
Answer: The highest standards of conduct in areas such as actions, values, methods, measures, principles,
expectations, and outcomes, are ensured.
2. How does the Small Business Administration define a small business? (1.1.2)
Answer: A small business as defined by the Small Business Administration is an independent company
employing fewer than 500 people.
3. Why is an owner’s business experience a factor that contributes to the likelihood of success? (1.1.3)
Answer: A lack of business experience is a major factor in a business’s failure. Experienced
businesspeople understand how to operate a business. An entrepreneur may have a good idea but see their
business fail because they had little business experience and lacked the necessary business skills.
Apply Your Understanding
1. Types of businesses include manufacturing, wholesaling, retailing, service, agricultural, and mining and
extracting. Make a list of specific companies that belong to each category of business. Share your results in
class. (1.1.1)
Answer: Lists should include the categories in Table 1-1 in Lesson 1.1. Specific companies listed will
vary.
2. Other than the entrepreneurs described in the lesson, think of another entrepreneur who changed America.
Describe this person. What new business opportunity did they recognize? (1.1.2)
Answer: A short description of the person along with the business opportunity they addressed is
sufficient. Tell the students to keep their responses for possible use in future exercises.
3. Think of a new business that has opened in your area. What factors may contribute to its success or failure?
(1.1.3)
© 2025 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 1
accessible website, in whole or in part.
,Solution and Answer Guide: Greene, Entrepreneurship: Ideas in Action, 7th Edition CY 2025, Core ISBN 9798214068992; Chapter 1: Should You Become an
Entrepreneur?
Answer: Answers will vary but should include having adequate capital, the owner’s education level, and
the owner’s experience.
LESSON 1.2 ENTREPRENEURSHIP AND YOU
Check Your Understanding
1. Why do entrepreneurs need to possess a strong work ethic? (1.2.1)
Answer: A strong work ethic is a requirement for most entrepreneurs because they must be willing to
work long and flexible hours.
2. What traits do good team members have? Select one trait and explain why it is important. (1.2.2)
Answer: To be effective the team members should display the following traits: commitment, competency,
communication, cooperation, and creativity. Students will select one of these and explain why it is
important.
3. To determine if entrepreneurship is right for you, it helps to conduct a self- assessment. Name the ways in
which you can do this. (1.2.3)
Answer: Ways to determine if entrepreneurship is the right choice includes assessing one’s interests and
aptitudes as well as the advantages and disadvantages of entrepreneurship.
Apply Your Understanding
1. Reread the characteristics that distinguish a successful entrepreneur. Which of the characteristics do you
believe are your strongest? Rank them with one being the strongest. How might you improve your weakest
characteristics? (1.2.1)
Answer: Answers will vary, but students should rank all eight characteristics. Look for students to point
to education and experience as ways to improve their weakest characteristics.
2. Reread the traits of a good team member. How do these correlate to the characteristics of a successful
entrepreneur? If you were building a team, which of these traits would you look for? Would you look for
traits that are complementary to yours and other team members or would you look for people with the same
traits you have? Explain your answer. (1.2.2)
Answer: Answers will vary. Expect some students to ask the size of the team they are building. If it is
small, they may look for more complementary traits. If it is a larger team expect a mixture of team
members who complement them and those who possess similar traits. When explaining their answers some
students may suggest someone with complementary characteristics is needed because the student is weak in
that area. Employees with the same or similar traits may be chosen to make a certain aspect of the business
stronger or more efficient or to free the owner up for another task.
3. Interview an entrepreneur about the personality traits that have been most beneficial to their success. As an
alternative, read an article about a successful entrepreneur. Write a one-page paper comparing your
personality traits to the entrepreneur’s. Conclude the paper by describing whether you are suited for
entrepreneurship. (1.2.3)
Answer: Answers will vary, but the student should address each of the characteristics described in the
text.
LESSON 1.3 EXPLORE IDEAS AND OPPORTUNITIES
Check Your Understanding
1. Business opportunities may arise from inventing something. What would an inventor do to pursue their
invention as a business opportunity? (1.3.1)
© 2025 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 2
accessible website, in whole or in part.
,Solution and Answer Guide: Greene, Entrepreneurship: Ideas in Action, 7th Edition CY 2025, Core ISBN 9798214068992; Chapter 1: Should You Become an
Entrepreneur?
Answer: To determine if an invention presents a business opportunity, the inventor should research and
find out if the invention can be patented, who the competition is, its manufacturing process, and target
market.
2. Name several sources of information for conducting research about business opportunities. (1.3.2)
Answer: To investigate information for a business opportunity, entrepreneurs can search the internet.
They also can use books and magazines on entrepreneurship, trade magazines, government publications,
the Small Business Administration, as well as industry trade magazines and trade shows.
3. The “S” in SMART goals stands for “Specific.” What three questions must a goal answer in order to be
specific? (1.3.3)
Answer: To see if a SMART goal is specific, an entrepreneur should ask and answer the questions, What?
Why? and How?
Apply Your Understanding
1. Make a list of your hobbies and interests. For each one, think of one or more business opportunities it
offers. (1.3.1)
Answer: Answers will vary. You may encourage students to share their business ideas with other students
with similar ideas.
2. Choose the business opportunity you cited in the question above that most appeals to you. Conduct research
about this opportunity using one or more of the sources described in section 1.3.2. (1.3.2)
Answer: Answers will vary. Consider asking students who have come up with the same or similar
business opportunities to share in the research.
3. In terms of annual income, what financial goals have you set for yourself for five years after you graduate?
What nonfinancial goals have you set that you could fulfill by becoming an entrepreneur? Which type of
goals, financial or nonfinancial, are more important to you? Explain your answer. (1.3.3)
Answer: Answers will vary but should be realistic and achievable in the time frame given.
LESSON 1.4 PROBLEM SOLVING FOR ENTREPRENEURS
Check Your Understanding
1. Step 1 of the problem-solving model is “define the problem.” Why is it helpful to quantify the problem in
defining it? (1.4.1)
Answer: Quantifying the problem helps you determine how much it is worth to you to solve it.
2. Describe brainstorming and explain why it is a helpful problem-solving technique. (1.4.2)
Answer: Brainstorming is a creative technique used in problem-solving to generate a large number of
fresh ideas that can then be used to determine the best alternatives.
Apply Your Understanding
1. You own a successful shop that buys, sells, and services bicycles. The owner of the building you now lease
tells you they plan to sell the property in six months, meaning you may have to move your business.
Brainstorm a list of solutions to this problem. (1.4.2)
Answer: Lists of solutions will vary. Encourage students to think of and write down as many ideas as
possible without evaluating them.
2. Considering the same scenario in Question 1 above, use the six-step problem-solving model to develop a
plan for how to proceed. (1.4.1)
Answer: Answers will vary. Be sure students follow all six steps in the problem-solving method in
developing their plan.
© 2025 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 3
accessible website, in whole or in part.
, Solution and Answer Guide: Greene, Entrepreneurship: Ideas in Action, 7th Edition CY 2025, Core ISBN 9798214068992; Chapter 1: Should You Become an
Entrepreneur?
END OF CHAPTER REVIEW
Check Your Knowledge
1. Explain the difference between an entrepreneur and an employee (1.1.1)
Answer: The difference between and entrepreneur and an employee are that an entrepreneur, by owning
and operating a business venture, assumes the risk of the business venture and is directly affected by the
consequences of the business decisions, while an employee is less directly affected by the decisions.
2. What role do small businesses play in the economic recovery process? (1.1.2)
Answer: Small businesses often are nimbler than larger enterprises and are more willing and able to make
changes quickly. This allows them to take more risks than large companies so that during economic
downturns they are more likely to experiment and innovate. This can lead to technological change and
increased productivity, making small businesses a significant part of the economic recovery process.
3. What are the major factors that contribute to a business’s success and to its failure? (1.1.3)
Answer: The major factors in a new business’s success are having adequate capital, being large enough to
have employees, the reason for starting the business, and the entrepreneur’s education level and experience.
The major factor for failure is the entrepreneur’s lack of business knowledge and skill.
4. Name and describe the characteristics that distinguish a successful entrepreneur. (1.2.1)
Answer: Independence. They want to make their own decisions and do something they enjoy.
Self-confidence. Entrepreneurs make all of the decisions. They must have the confidence to make choices
alone and bounce back from a poorly made decision. They are not afraid to make quick decisions when
necessary, which helps them beat their competitors.
Determination and perseverance. Entrepreneurs persist through hard times until goals are met. Many
entrepreneurs experience failure long before they are successful. They must be willing to keep trying.
Goal-oriented. They know what they want, and they are able to focus on achieving it. They are motivated
by setting and achieving challenging goals.
Creative. They think of new ways to market their businesses and are always looking for new solutions to
problems.
Strong work ethic. Being a business owner is hard work. Entrepreneurs must be willing to work beyond the
traditional 40-hour work week. They may have to work flexible hours to accommodate customers or
suppliers and to get the job done. Entrepreneurs must also continue to learn about their fields and stay on
top of trends to keep their businesses operating successfully. Learning does not end when school does.
Master networker. By attending conferences, seminars, and workshops, entrepreneurs can network, or meet
others who can be valuable resources. These contacts may offer their business expertise or potentially
become customers.
Technologically up to date. New technologies emerge that can help with many business activities. To run
their businesses efficiently, entrepreneurs should always be on the lookout for new technology they can
apply to their businesses.
5. Explain how good team members exhibit the trait of cooperation. (1.2.2)
Answer: Good team members exhibit cooperation by working well with others and understanding that
they will not always get their way. They are willing to accept their group’s decisions.
6. Identify and explain the advantages and disadvantages of entrepreneurship. (1.2.3)
Answer: Advantages of entrepreneurship include that entrepreneurs can choose a business that interests
them and be their own boss. This allows them to be creative and, if successful, can lead to earning large
sums of money.
The disadvantages of entrepreneurship include that they can expect to work long hours. Another is that
unless the entrepreneur has partners, he or she is responsible for all business decisions. It is also risky, with
the chance of facing uncertain and irregular incomes along with the chance of losing money and business
failure.
7. Explain the differences between an opportunity and an idea. (1.3.1)
© 2025 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 4
accessible website, in whole or in part.
Entrepreneur?
Solution and Answer Guide
GREENE, ENTREPRENEURSHIP : IDEAS IN ACTION, 7TH EDITION CY 2025, C ORE ISBN
9798214068992; C HAPTER 1: SHOULD YOU BECOME AN ENTREPRENEUR ?
TABLE OF CONTENTS
Lesson Review...............................................................................................................1
Lesson 1.1 All About Entrepreneurship.....................................................................................................1
Lesson 1.2 Entrepreneurship and You....................................................................................................... 2
Lesson 1.3 Explore Ideas and Opportunities............................................................................................. 3
Lesson 1.4 Problem Solving for Entrepreneurs.........................................................................................3
End of Chapter Review.................................................................................................4
LESSON REVIEW
LESSON 1.1 ALL ABOUT ENTREPRENEURSHIP
Check Your Understanding
1. What is the outcome when entrepreneurs conduct ethical business practices? (1.1.1)
Answer: The highest standards of conduct in areas such as actions, values, methods, measures, principles,
expectations, and outcomes, are ensured.
2. How does the Small Business Administration define a small business? (1.1.2)
Answer: A small business as defined by the Small Business Administration is an independent company
employing fewer than 500 people.
3. Why is an owner’s business experience a factor that contributes to the likelihood of success? (1.1.3)
Answer: A lack of business experience is a major factor in a business’s failure. Experienced
businesspeople understand how to operate a business. An entrepreneur may have a good idea but see their
business fail because they had little business experience and lacked the necessary business skills.
Apply Your Understanding
1. Types of businesses include manufacturing, wholesaling, retailing, service, agricultural, and mining and
extracting. Make a list of specific companies that belong to each category of business. Share your results in
class. (1.1.1)
Answer: Lists should include the categories in Table 1-1 in Lesson 1.1. Specific companies listed will
vary.
2. Other than the entrepreneurs described in the lesson, think of another entrepreneur who changed America.
Describe this person. What new business opportunity did they recognize? (1.1.2)
Answer: A short description of the person along with the business opportunity they addressed is
sufficient. Tell the students to keep their responses for possible use in future exercises.
3. Think of a new business that has opened in your area. What factors may contribute to its success or failure?
(1.1.3)
© 2025 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 1
accessible website, in whole or in part.
,Solution and Answer Guide: Greene, Entrepreneurship: Ideas in Action, 7th Edition CY 2025, Core ISBN 9798214068992; Chapter 1: Should You Become an
Entrepreneur?
Answer: Answers will vary but should include having adequate capital, the owner’s education level, and
the owner’s experience.
LESSON 1.2 ENTREPRENEURSHIP AND YOU
Check Your Understanding
1. Why do entrepreneurs need to possess a strong work ethic? (1.2.1)
Answer: A strong work ethic is a requirement for most entrepreneurs because they must be willing to
work long and flexible hours.
2. What traits do good team members have? Select one trait and explain why it is important. (1.2.2)
Answer: To be effective the team members should display the following traits: commitment, competency,
communication, cooperation, and creativity. Students will select one of these and explain why it is
important.
3. To determine if entrepreneurship is right for you, it helps to conduct a self- assessment. Name the ways in
which you can do this. (1.2.3)
Answer: Ways to determine if entrepreneurship is the right choice includes assessing one’s interests and
aptitudes as well as the advantages and disadvantages of entrepreneurship.
Apply Your Understanding
1. Reread the characteristics that distinguish a successful entrepreneur. Which of the characteristics do you
believe are your strongest? Rank them with one being the strongest. How might you improve your weakest
characteristics? (1.2.1)
Answer: Answers will vary, but students should rank all eight characteristics. Look for students to point
to education and experience as ways to improve their weakest characteristics.
2. Reread the traits of a good team member. How do these correlate to the characteristics of a successful
entrepreneur? If you were building a team, which of these traits would you look for? Would you look for
traits that are complementary to yours and other team members or would you look for people with the same
traits you have? Explain your answer. (1.2.2)
Answer: Answers will vary. Expect some students to ask the size of the team they are building. If it is
small, they may look for more complementary traits. If it is a larger team expect a mixture of team
members who complement them and those who possess similar traits. When explaining their answers some
students may suggest someone with complementary characteristics is needed because the student is weak in
that area. Employees with the same or similar traits may be chosen to make a certain aspect of the business
stronger or more efficient or to free the owner up for another task.
3. Interview an entrepreneur about the personality traits that have been most beneficial to their success. As an
alternative, read an article about a successful entrepreneur. Write a one-page paper comparing your
personality traits to the entrepreneur’s. Conclude the paper by describing whether you are suited for
entrepreneurship. (1.2.3)
Answer: Answers will vary, but the student should address each of the characteristics described in the
text.
LESSON 1.3 EXPLORE IDEAS AND OPPORTUNITIES
Check Your Understanding
1. Business opportunities may arise from inventing something. What would an inventor do to pursue their
invention as a business opportunity? (1.3.1)
© 2025 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 2
accessible website, in whole or in part.
,Solution and Answer Guide: Greene, Entrepreneurship: Ideas in Action, 7th Edition CY 2025, Core ISBN 9798214068992; Chapter 1: Should You Become an
Entrepreneur?
Answer: To determine if an invention presents a business opportunity, the inventor should research and
find out if the invention can be patented, who the competition is, its manufacturing process, and target
market.
2. Name several sources of information for conducting research about business opportunities. (1.3.2)
Answer: To investigate information for a business opportunity, entrepreneurs can search the internet.
They also can use books and magazines on entrepreneurship, trade magazines, government publications,
the Small Business Administration, as well as industry trade magazines and trade shows.
3. The “S” in SMART goals stands for “Specific.” What three questions must a goal answer in order to be
specific? (1.3.3)
Answer: To see if a SMART goal is specific, an entrepreneur should ask and answer the questions, What?
Why? and How?
Apply Your Understanding
1. Make a list of your hobbies and interests. For each one, think of one or more business opportunities it
offers. (1.3.1)
Answer: Answers will vary. You may encourage students to share their business ideas with other students
with similar ideas.
2. Choose the business opportunity you cited in the question above that most appeals to you. Conduct research
about this opportunity using one or more of the sources described in section 1.3.2. (1.3.2)
Answer: Answers will vary. Consider asking students who have come up with the same or similar
business opportunities to share in the research.
3. In terms of annual income, what financial goals have you set for yourself for five years after you graduate?
What nonfinancial goals have you set that you could fulfill by becoming an entrepreneur? Which type of
goals, financial or nonfinancial, are more important to you? Explain your answer. (1.3.3)
Answer: Answers will vary but should be realistic and achievable in the time frame given.
LESSON 1.4 PROBLEM SOLVING FOR ENTREPRENEURS
Check Your Understanding
1. Step 1 of the problem-solving model is “define the problem.” Why is it helpful to quantify the problem in
defining it? (1.4.1)
Answer: Quantifying the problem helps you determine how much it is worth to you to solve it.
2. Describe brainstorming and explain why it is a helpful problem-solving technique. (1.4.2)
Answer: Brainstorming is a creative technique used in problem-solving to generate a large number of
fresh ideas that can then be used to determine the best alternatives.
Apply Your Understanding
1. You own a successful shop that buys, sells, and services bicycles. The owner of the building you now lease
tells you they plan to sell the property in six months, meaning you may have to move your business.
Brainstorm a list of solutions to this problem. (1.4.2)
Answer: Lists of solutions will vary. Encourage students to think of and write down as many ideas as
possible without evaluating them.
2. Considering the same scenario in Question 1 above, use the six-step problem-solving model to develop a
plan for how to proceed. (1.4.1)
Answer: Answers will vary. Be sure students follow all six steps in the problem-solving method in
developing their plan.
© 2025 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 3
accessible website, in whole or in part.
, Solution and Answer Guide: Greene, Entrepreneurship: Ideas in Action, 7th Edition CY 2025, Core ISBN 9798214068992; Chapter 1: Should You Become an
Entrepreneur?
END OF CHAPTER REVIEW
Check Your Knowledge
1. Explain the difference between an entrepreneur and an employee (1.1.1)
Answer: The difference between and entrepreneur and an employee are that an entrepreneur, by owning
and operating a business venture, assumes the risk of the business venture and is directly affected by the
consequences of the business decisions, while an employee is less directly affected by the decisions.
2. What role do small businesses play in the economic recovery process? (1.1.2)
Answer: Small businesses often are nimbler than larger enterprises and are more willing and able to make
changes quickly. This allows them to take more risks than large companies so that during economic
downturns they are more likely to experiment and innovate. This can lead to technological change and
increased productivity, making small businesses a significant part of the economic recovery process.
3. What are the major factors that contribute to a business’s success and to its failure? (1.1.3)
Answer: The major factors in a new business’s success are having adequate capital, being large enough to
have employees, the reason for starting the business, and the entrepreneur’s education level and experience.
The major factor for failure is the entrepreneur’s lack of business knowledge and skill.
4. Name and describe the characteristics that distinguish a successful entrepreneur. (1.2.1)
Answer: Independence. They want to make their own decisions and do something they enjoy.
Self-confidence. Entrepreneurs make all of the decisions. They must have the confidence to make choices
alone and bounce back from a poorly made decision. They are not afraid to make quick decisions when
necessary, which helps them beat their competitors.
Determination and perseverance. Entrepreneurs persist through hard times until goals are met. Many
entrepreneurs experience failure long before they are successful. They must be willing to keep trying.
Goal-oriented. They know what they want, and they are able to focus on achieving it. They are motivated
by setting and achieving challenging goals.
Creative. They think of new ways to market their businesses and are always looking for new solutions to
problems.
Strong work ethic. Being a business owner is hard work. Entrepreneurs must be willing to work beyond the
traditional 40-hour work week. They may have to work flexible hours to accommodate customers or
suppliers and to get the job done. Entrepreneurs must also continue to learn about their fields and stay on
top of trends to keep their businesses operating successfully. Learning does not end when school does.
Master networker. By attending conferences, seminars, and workshops, entrepreneurs can network, or meet
others who can be valuable resources. These contacts may offer their business expertise or potentially
become customers.
Technologically up to date. New technologies emerge that can help with many business activities. To run
their businesses efficiently, entrepreneurs should always be on the lookout for new technology they can
apply to their businesses.
5. Explain how good team members exhibit the trait of cooperation. (1.2.2)
Answer: Good team members exhibit cooperation by working well with others and understanding that
they will not always get their way. They are willing to accept their group’s decisions.
6. Identify and explain the advantages and disadvantages of entrepreneurship. (1.2.3)
Answer: Advantages of entrepreneurship include that entrepreneurs can choose a business that interests
them and be their own boss. This allows them to be creative and, if successful, can lead to earning large
sums of money.
The disadvantages of entrepreneurship include that they can expect to work long hours. Another is that
unless the entrepreneur has partners, he or she is responsible for all business decisions. It is also risky, with
the chance of facing uncertain and irregular incomes along with the chance of losing money and business
failure.
7. Explain the differences between an opportunity and an idea. (1.3.1)
© 2025 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 4
accessible website, in whole or in part.
