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An entrepreneurial opportunity exists when one discovers a desirable and timely innovation that creates value for interested buyers. a. True b. False 2. All successful small businesses are started because of disappointing experiences entrepreneurs had as employees. a. True b. False 3. Globalization and e-commerce are two forces that have little impact on today's business community. a. True b. False 4. Small business has been the principal source of new jobs in the country as we enter the 21st century. a. True b. False 5. A small business is usually defined as having fewer than 50 employees. a. True b. False 6. Many entrepreneurs have started their own businesses to achieve more independence in their professional lives. a. True b. False 7. A foreign refugee is a person of foreign ancestry who starts a business. a. True b. False 8. All small businesses have the potential to reap tremendous profits for the entrepreneur. a. True b. False 9. Small firms are better suited to providing superior customer service than large firms.

a. True b. False 10. Most entrepreneurs fit a stereotype of characteristics that cannot be varied. a. True b. False 11. The term entrepreneur a. refers to founders only. b. includes all managers of large companies. c. includes founders, administrative managers, and franchisees. d. only includes the inventor of a business product. 12. Which of the following is a reward for entrepreneurship? a. less work b. independence c. financial risk d. dealing with dissatisfied customers 13. What type of refugee senses alienation from the prevailing culture and starts a business that seeks to improve the culture? a. foreign b. societal c. parental d. corporate 14. Which of the following produces the best potential for growth and profits? a. microbusinesses b. attractive small firms c. gazelles d. franchises 15. What type of entrepreneur is reluctant to delegate authority? a. opportunistic b. artisan

c. general manager d. franchisee 16. Which group of people has shown a dramatic increase in number of businesses started in the last decade? a. Native Americans b. foreign refugees c. Hispanics d. women 17. Which is NOT a competitive advantage for an entrepreneurial firm? a. customer service b. innovation c. large minimum customer base d. integrity 18. Most entrepreneurs have this characteristic in common: a. external locus of control b. avoidance of risk c. extreme self-confidence d. passion for the business 19. What should be considered if a 19-year old wishes to start a business? a. lack of financial resources b. employment seniority c. family responsibilities d. financial commitments 20. A precipitating event is: a. an increase in precipitation. b. one which motivates a person to become an entrepreneur. c. not an important factor for entrepreneurship. d. a competition for young entrepreneurs.
Your Answer Correct? Correct Answer Description

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yes no no no yes no yes no no no no no no no no yes no b b b b c b d c d b b b b

True False False False True False True False independence societal gazelles artisan women large minimum customer base passion for the business lack of financial resources one which motivates a person to become an entrepreneur.