Sbm Test One

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Chapter 1—The Entrepreneurial Life

TRUE/FALSE

1.An entrepreneurial career can provide an exciting life and substantial personal rewards while also contributing to the welfare of society.

ANS:TPTS:1REF:p. 4OBJ:1-1 TYPE: C

2.Winning a table decoration competition was the precipitating event for launching Table Occasions.

ANS:TPTS:1REF:p. 7OBJ:1-2 TYPE: A

3.Although Life is Good owners John and Bert Jacobs’ line of merchandise is related to leisure pursuits, they cannot partake of them because of the constraints of their fast-growing business.

ANS:FPTS:1REF:p. 8OBJ:1-2 TYPE: A

4.Chris Mittelsdaedt states that “a healthy dose of worst-case-scenario thinking” helps his business succeed.

ANS:TPTS:1REF:p. 9OBJ:1-2 TYPE: C

5.The term entrepreneur is understood in this text to refer only to founders of small businesses.

ANS:F
According to the text, entrepreneur refers to founders, franchisees, second-generation members of family-owned firms, and owner-managers who buy out the founders of existing firms.

PTS:1REF:p. 4OBJ:1-1 TYPE: D

6.Researchers at Case Western Reserve University found a strong connection between entrepreneurship and a cavalier, happy-go-lucky attitude toward life and business.

ANS:F
The researchers found a connection between entrepreneurs and genetics.

PTS:1REF:p. 9OBJ:1-2 TYPE: C

7.An owner-manager is a person who founds a new business.

ANS:F
An owner-manager may be an individual who bought out the founder(s) of an existing firm (or later owners) and thus is not necessarily the one who started the firm.

PTS:1REF:p. 14OBJ:1-4 TYPE: D

8.According to the definition of entrepreneur given in Chapter 1, owner-managers who buy out founders of existing firms may be classified as entrepreneurs.

ANS:TPTS:1REF:p. 4OBJ:1-1 TYPE: D

9.The universally accepted definition of the term small business is based on the number of people employed by the firm.

ANS:F
There have been a number of attempts to define the term small business, using such criteria as the number of employees, sales volume, and value of assets, but there is no universally accepted definition.

PTS:1REF:p. 5OBJ:1-1 TYPE: D

10.Three primary rewards of entrepreneurship are thought to be profit, independence, and personal fulfillment.

ANS:TPTS:1REF:p. 11OBJ:1-3 TYPE: C

11.Some estimate that self-employed people are four times more likely to be millionaires than are those who work for others.

ANS:TPTS:1REF:p. 11OBJ:1-3 TYPE: C

12.A reasonable goal of an entrepreneur would be to “get rich slowly”.

ANS:TPTS:1REF:p. 12OBJ:1-3 TYPE: C

13.A large percentage of small business owners cite their desire to be their own boss as the main reason they left their previous employers.

ANS:TPTS:1REF:p. 12OBJ:1-3 TYPE: C

14.Persons who leave their leave an undesirable work situation and go into business for themselves in a new country would be described as entrepreneurial refugees.

ANS:TPTS:1REF:p. 12OBJ:1-3 TYPE: D

15.A refugee is a person who tried entrepreneurship, failed, and sought refuge in corporate employment.

ANS:F
A refugee is an individual who has left an undesirable environment by going into business for him/herself.

PTS:1REF:p. 12OBJ:1-3 TYPE: D

16.One survey found that 91 percent of small business owners give back to their communities each year through volunteering, in-kind contributions and/or direct cash donations.

ANS:TPTS:1REF:p. 13OBJ:1-3 TYPE: A

17.“Second-stage” entrepreneurs are entrepreneurs who take over the operations of a successful ongoing business from its founder.

ANS:TPTS:1REF:p. 14OBJ:1-4 TYPE: D

18.Entrepreneurial teams are formed by bringing together two or more persons together who function in the capacity of entrepreneurs.

ANS:TPTS:1REF:p. 16OBJ:1-4 TYPE: D...
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