Question 1

Small business owners are more likely to underprice their products and services rather than overprice them.

Accepted Answer

A) True 
 B)False

Question 2

Serial entrepreneurs repeatedly start businesses and grow them to a sustainable size before striking out again.

Accepted Answer

A) True 
 B)False

Question 3

The majority of small companies are concentrated in the ________ and ________ industries.

Accepted Answer

A)  manufacturing; retail
B)  manufacturing; service
C)  retail; service
D)  wholesale; retailE) None of the above
F) C) and D)

Question 4

Which of the following is/are true regarding business plans?

Accepted Answer

A)  Provide a pathway to success.
B)  Allow entrepreneurs to replace faulty assumptions with facts before making the decision to go into business.
C)  Create a benchmark against which entrepreneurs can measure actual company performance.
D)  All of the aboveE) A) and B)
F) A) and C)

Question 5

Which of the following is NOT a characteristic of a successful working relationship between copreneurs?

Accepted Answer

A)  A clear definition of one partner as "boss" and the other as "subordinate"
B)  Compatible business and life goals
C)  Complementary business skills
D)  A clear division of roles and authority based on each partner's skills and abilitiesE) A) and B)
F) A) and C)

Question 6

Socioeconomic forces that are driving the positive entrepreneurial trend in the U.S.economy include:

Accepted Answer

A)  America's view that entrepreneurs are considered to be "heroes."
B)  entrepreneurial education has increased.
C)  the shift to a service-based economy.
D)  All of the aboveE) A) and B)
F) A) and C)

Question 7

Modern technology and office machines enable one-person,home-based businesses to look much bigger than they are to their customers.

Accepted Answer

A) True 
 B)False

Question 8

Increased entrepreneurial activity is a phenomenon unique to the U.S.

Accepted Answer

A) True 
 B)False

Question 9

The number of colleges and universities offering courses in small business management and entrepreneurship is declining.

Accepted Answer

A) True 
 B)False

Question 10

What is an entrepreneur? Give a brief profile of a typical entrepreneur.What is the primary motivation for the typical entrepreneur?

Accepted Answer

An entrepreneur is someone who creates a...

Question 11

The primary cause of small business failures is:

Accepted Answer

A)  the lack of capital.
B)  management mistakes.
C)  poor location.
D)  improper inventory control.E) None of the above
F) A) and D)

Question 12

Approximately 95 percent of the world's population lives within the borders of the U.S.

Accepted Answer

A) True 
 B)False

Question 13

Women owned businesses dominate ________ and ________ industries.

Accepted Answer

A)  manufacturing; retail
B)  services; retail
C)  services; professional
D)  retail; agriculturalE) All of the above
F) B) and C)

Question 14

Establishing prices that will generate the necessary profits means that business owners must understand how much it costs to make,market,and deliver their products and services.

Accepted Answer

A) True 
 B)False

Question 15

Increasing numbers of women are discovering that the best way to break the "glass ceiling" that prevents them from rising to the top of many organizations is to start their own companies.

Accepted Answer

A) True 
 B)False

Question 16

Within 6 years,________ percent of new businesses will fail.

Accepted Answer

A)  35
B)  50
C)  64
D)  75E) None of the above
F) A) and D)

Question 17

Most home-based businesses are simple cottage industries such as crafts or sewing.

Accepted Answer

A) True 
 B)False

Question 18

In terms of innovation and research,small businesses:

Accepted Answer

A)  create four times the innovations per research and development dollar than medium-sized firms and 24 times the innovations per research and development dollar than large companies.
B)  contribute 20 percent more innovations per employee than large companies.
C)  have created such important innovations as air conditioning,FM radio,the laser,the automatic transmission,and the personal computer.
D)  All of the aboveE) None of the above
F) C) and D)

Question 19

Although there is a trend toward younger entrepreneurs,most entrepreneurs launch their businesses between the ages of ________ and ________.

Accepted Answer

A)  20; 34
B)  25; 44
C)  30; 44
D)  35; 49E) A) and B)
F) B) and C)

Question 20

According to the NFIB Small Business Policy Guide,after 10 years in business,the percentage of small firms surviving is ________.

Accepted Answer

A)  32
B)  27
C)  25
D)  22E) B) and D)
F) A) and B)

Exam 1: The Foundations of Entrepreneurship

Approximately 95 percent of the world's population lives within the borders of the U.S.

Correct AnswerverifiedShow Answer

Small business owners are more likely to underprice their products and services rather than overprice them.

Correct AnswerverifiedShow Answer

According to the NFIB Small Business Policy Guide,after 10 years in business,the percentage of small firms surviving is ________.

Correct AnswerverifiedShow Answer

The number of colleges and universities offering courses in small business management and entrepreneurship is declining.

Correct AnswerverifiedShow Answer

Modern technology and office machines enable one-person,home-based businesses to look much bigger than they are to their customers.

Correct AnswerverifiedShow Answer

Which of the following is NOT a characteristic of a successful working relationship between copreneurs?

Correct AnswerverifiedShow Answer

Most home-based businesses are simple cottage industries such as crafts or sewing.

Correct AnswerverifiedShow Answer

Increased entrepreneurial activity is a phenomenon unique to the U.S.

Correct AnswerverifiedShow Answer

In terms of innovation and research,small businesses:

Correct AnswerverifiedShow Answer

Increasing numbers of women are discovering that the best way to break the "glass ceiling" that prevents them from rising to the top of many organizations is to start their own companies.

Correct AnswerverifiedShow Answer

Socioeconomic forces that are driving the positive entrepreneurial trend in the U.S.economy include:

Correct AnswerverifiedShow Answer

What is an entrepreneur? Give a brief profile of a typical entrepreneur.What is the primary motivation for the typical entrepreneur?

Correct AnswerverifiedAn entrepreneur is someone who creates a...View AnswerShow Answer

Serial entrepreneurs repeatedly start businesses and grow them to a sustainable size before striking out again.

Correct AnswerverifiedShow Answer

Which of the following is/are true regarding business plans?

Correct AnswerverifiedShow Answer

Women owned businesses dominate ________ and ________ industries.

Correct AnswerverifiedShow Answer

Within 6 years,________ percent of new businesses will fail.

Correct AnswerverifiedShow Answer

Although there is a trend toward younger entrepreneurs,most entrepreneurs launch their businesses between the ages of ________ and ________.

Correct AnswerverifiedShow Answer

The majority of small companies are concentrated in the ________ and ________ industries.

Correct AnswerverifiedShow Answer

Establishing prices that will generate the necessary profits means that business owners must understand how much it costs to make,market,and deliver their products and services.

Correct AnswerverifiedShow Answer

The primary cause of small business failures is:

Correct AnswerverifiedShow Answer

Correct Answer
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An entrepreneur is someone who creates a...
View Answer

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Women owned businesses dominate and industries.

Correct Answer
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Although there is a trend toward younger entrepreneurs,most entrepreneurs launch their businesses between the ages of and .

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The majority of small companies are concentrated in the and industries.

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