Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough)
Chapter 1 The Foundations of Entrepreneurship
1) One of the most significant economic developments in recent business history relates
to the:
A) growth of blue-chip corporations.
B) development of Pacific Rim countries.
C) entrepreneurial spirit.
D) additional employment opportunities offered by government institutions.
Answer: C
Diff: 1 Page Ref: 1
AACSB: Reflective Thinking
Learning Obj.: 1
2) 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.
A) prestige
B) risk
C) financing opportunities
D) short-term potential
Answer: B
Diff: 2 Page Ref: 2
AACSB: Reflective Thinking
Learning Obj.: 1
3) The profile of an entrepreneur includes:
,A) a desire for responsibility and moderate risk.
B) confidence in the ability to succeed and determination.
C) a high level of energy, a desire for immediate feedback and a future orientation.
D) All the above
Answer: D
Diff: 1 Page Ref: 5-6
AACSB: Reflective Thinking
Learning Obj.: 1
4) An entrepreneur is one who:
A) is willing to attempt to implement a business concept and then give up if it does not
meet immediate expectations.
B) understands the process of developing an idea and does not need to understand what it
means to bring that idea to a viable business concept.
C) knows that the concept they are about to develop will result in a profitable business.
D) creates a new business concept for the purpose of achieving profit and growth by
assembling the necessary resources to capitalize on identified opportunities.
Answer: D
Diff: 1 Page Ref: 4
AACSB: Analytic Skills
Learning Obj.: 2
5) All of the following are characteristics of the typical entrepreneur except:
A) confidence in his/her ability to succeed.
B) value of money over achievement.
C) desire for immediate feedback.
D) a future orientation.
,Answer: B
Diff: 1 Page Ref: 4-7
AACSB: Reflective Thinking
Learning Obj.: 2
6) Entrepreneurs are characterized by:
A) skill at organizing.
B) desire for immediate feedback.
C) high energy levels.
D) All of the above
Answer: D
Diff: 1 Page Ref: 6-7
AACSB: Reflective Thinking
Learning Obj.: 2
7) Entrepreneurs who repeatedly start businesses and grow to a sustainable size before
striking out again are known as ________ entrepreneurs.
A) opportunistic
B) persistent
C) serial
D) classic
Answer: C
Diff: 1 Page Ref: 6
AACSB: Reflective Thinking
Learning Obj.: 2
, 8) Entrepreneurs typically possess:
A) the ability to easily access capital.
B) a set of unique skills that is usually accompanied by advanced degrees in several
areas.
C) a high level of commitment, have a tolerance for ambiguity, are flexible and
tenacious.
D) specialized technical abilities.
Answer: C
Diff: 2 Page Ref: 6
AACSB: Reflective Thinking
Learning Obj.: 2
Chapter 1 The Foundations of Entrepreneurship
1) One of the most significant economic developments in recent business history relates
to the:
A) growth of blue-chip corporations.
B) development of Pacific Rim countries.
C) entrepreneurial spirit.
D) additional employment opportunities offered by government institutions.
Answer: C
Diff: 1 Page Ref: 1
AACSB: Reflective Thinking
Learning Obj.: 1
2) 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.
A) prestige
B) risk
C) financing opportunities
D) short-term potential
Answer: B
Diff: 2 Page Ref: 2
AACSB: Reflective Thinking
Learning Obj.: 1
3) The profile of an entrepreneur includes:
,A) a desire for responsibility and moderate risk.
B) confidence in the ability to succeed and determination.
C) a high level of energy, a desire for immediate feedback and a future orientation.
D) All the above
Answer: D
Diff: 1 Page Ref: 5-6
AACSB: Reflective Thinking
Learning Obj.: 1
4) An entrepreneur is one who:
A) is willing to attempt to implement a business concept and then give up if it does not
meet immediate expectations.
B) understands the process of developing an idea and does not need to understand what it
means to bring that idea to a viable business concept.
C) knows that the concept they are about to develop will result in a profitable business.
D) creates a new business concept for the purpose of achieving profit and growth by
assembling the necessary resources to capitalize on identified opportunities.
Answer: D
Diff: 1 Page Ref: 4
AACSB: Analytic Skills
Learning Obj.: 2
5) All of the following are characteristics of the typical entrepreneur except:
A) confidence in his/her ability to succeed.
B) value of money over achievement.
C) desire for immediate feedback.
D) a future orientation.
,Answer: B
Diff: 1 Page Ref: 4-7
AACSB: Reflective Thinking
Learning Obj.: 2
6) Entrepreneurs are characterized by:
A) skill at organizing.
B) desire for immediate feedback.
C) high energy levels.
D) All of the above
Answer: D
Diff: 1 Page Ref: 6-7
AACSB: Reflective Thinking
Learning Obj.: 2
7) Entrepreneurs who repeatedly start businesses and grow to a sustainable size before
striking out again are known as ________ entrepreneurs.
A) opportunistic
B) persistent
C) serial
D) classic
Answer: C
Diff: 1 Page Ref: 6
AACSB: Reflective Thinking
Learning Obj.: 2
, 8) Entrepreneurs typically possess:
A) the ability to easily access capital.
B) a set of unique skills that is usually accompanied by advanced degrees in several
areas.
C) a high level of commitment, have a tolerance for ambiguity, are flexible and
tenacious.
D) specialized technical abilities.
Answer: C
Diff: 2 Page Ref: 6
AACSB: Reflective Thinking
Learning Obj.: 2
