MGMT 3850 CHAPTER 1 HOMEWORK QUESTIONS AND ANSWERS

MGMT 3850 CHAPTER 1 HOMEWORK QUESTIONS AND ANSWERS 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. 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 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 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. 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. 6) Entrepreneurs are characterized by: A) skill at organizing. B) desire for immediate feedback. C) high energy levels. D) All of the above 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 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. 9) Entrepreneurs who start businesses because they cannot find work any other way are: A) necessity entrepreneurs. B) serial entrepreneurs. C) opportunity entrepreneurs. D) corporate cast-offs. 10) In addition to the opportunity to create their own destiny and enjoy what they do, entrepreneurs also benefit from the ability to: A) earn tremendous wealth without risk and uncertainty. B) make a difference in an area important to them and be recognized for those efforts. C) create wealth without providing true value. D) exploit the opportunities that the free enterprise system offers. 11) In a large organization, an individual may be stifled and limited by a wide variety of factors. However, by owning one's own business, the only limiAts are one's own creativity, talent, and determination. In this sense, small business ownership offers the advantage of the: A) opportunity to reach one's full potential. B) opportunity to reap unlimited profits. C) chance to learn from other's mistakes. D) ability to accumulate certain wealth. 12) Which of the following is a benefit of entrepreneurship? A) The opportunity to gain control over your own destiny. B) The opportunity to reach your full potential. C) The opportunity to do what you enjoy. D) All of the above