Essentials of Entrepreneurship and Small Business Management, 8e (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
AACSB: Reflective Thinking
Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States
and around the world.
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
AACSB: Reflective Thinking
Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States
and around the world.
,3) Globally, one in eight adults is actively engaged in launching a business.
Answer: TRUE
Diff: 1
AACSB: Analytical Thinking
Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States
and around the world.
4) 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.
Answer: FALSE
Diff: 1
AACSB: Analytical Thinking
Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States
and around the world.
,5) Increased entrepreneurial activity is a phenomenon unique to the U.S.
Answer: FALSE
Diff: 1
AACSB: Analytical Thinking
Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States
and around the world.
6) 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.
Answer: TRUE
Diff: 2
AACSB: Analytical Thinking
Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States
and around the world.
7) 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
AACSB: Reflective Thinking
Learning Obj: 1-2 Describe the entrepreneurial profile.
8) 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
AACSB: Analytical Thinking
Learning Obj: 1-2 Describe the entrepreneurial profile.
9) 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
AACSB: Reflective Thinking
Learning Obj: 1-2 Describe the entrepreneurial profile.
10) Entrepreneurs are characterized by ________.
A) skill at organizing
B) desire for immediate feedback
C) high energy levels
D) All of the above
Answer: D
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
AACSB: Reflective Thinking
Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States
and around the world.
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
AACSB: Reflective Thinking
Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States
and around the world.
,3) Globally, one in eight adults is actively engaged in launching a business.
Answer: TRUE
Diff: 1
AACSB: Analytical Thinking
Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States
and around the world.
4) 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.
Answer: FALSE
Diff: 1
AACSB: Analytical Thinking
Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States
and around the world.
,5) Increased entrepreneurial activity is a phenomenon unique to the U.S.
Answer: FALSE
Diff: 1
AACSB: Analytical Thinking
Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States
and around the world.
6) 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.
Answer: TRUE
Diff: 2
AACSB: Analytical Thinking
Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States
and around the world.
7) 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
AACSB: Reflective Thinking
Learning Obj: 1-2 Describe the entrepreneurial profile.
8) 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
AACSB: Analytical Thinking
Learning Obj: 1-2 Describe the entrepreneurial profile.
9) 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
AACSB: Reflective Thinking
Learning Obj: 1-2 Describe the entrepreneurial profile.
10) Entrepreneurs are characterized by ________.
A) skill at organizing
B) desire for immediate feedback
C) high energy levels
D) All of the above
Answer: D
