Entrepreneurship Starting and Operating A Small Business, 5th edition BY Steve Mariotti
Email: richard@qwconsultancy.com
Entrepreneurship: Starting and Operating a Small Business, 5e (Glackin/NFTE) Chapter 1 Entrepreneurs and Entrepreneurship 1) Products are tangible, meaning ________. A) you can't actually touch them B) you can sell them C) you can touch them D) you can see them Answer: C Diff: 1 Learning Objective: 1.1 Summarize what entrepreneurship is and what entrepreneurs do. AACSB: Reflective Thinking 2) Entrepreneurs are often both owners and ________. A) creditors B) employees C) customers D) suppliers Answer: B Diff: 2 Learning Objective: 1.1 Summarize what entrepreneurship is and what entrepreneurs do. AACSB: Reflective Thinking 3) A necessity-based entrepreneur starts a business to exploit a perceived opportunity or to pursue one that they created. Answer: FALSE Diff: 1 Learning Objective: 1.1 Summarize what entrepreneurship is and what entrepreneurs do. AACSB: Reflective Thinking 4) Explain how entrepreneurs can add value to scarce resources, and what signal they use to determine whether or not they are succeeding in doing so. Answer: A scarce resource is something of value that can be used to make something else or to fill a need. The French economist Jean Baptiste Say wrote at the turn of the 19th century: "The entrepreneur shifts economic resources [like wood or coal] out of an area of lower and into an area of higher productivity and greater yield." By doing this, Say argued that entrepreneurs "added value to scarce resources". Diff: 3 Learning Objective: 1.1 Summarize what entrepreneurship is and what entrepreneurs do. AACSB: Analytical Thinking
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5) The economy of the United States is a ________ system. A) free-enterprise B) controlled C) closed D) centralized Answer: A Diff: 1 Learning Objective: 1.2 Examine how free-enterprise economies work and how entrepreneurs fit into them. AACSB: Analytical Thinking 6) A(n) ________ is the wealth and resources of a country or region, including its financial structure. A) economy B) government C) justice system D) free enterprise Answer: A Diff: 2 Learning Objective: 1.2 Examine how free-enterprise economies work and how entrepreneurs fit into them. AACSB: Reflective Thinking 7) Entrepreneurs have more control over more aspects of their working lives than employees. Of which aspect of their working lives do employees have more control? A) Financial uncertainty B) Working conditions C) Time D) Encroachment on personal time Answer: A Diff: 2 Learning Objective: 1.2 Examine how free-enterprise economies work and how entrepreneurs fit into them. AACSB: Reflective Thinking 8) Cash or goods invested to generate income and wealth is called ________. A) profit B) capital C) debt D) liability Answer: B Diff: 1 Learning Objective: 1.2 Examine how free-enterprise economies work and how entrepreneurs fit into them. AACSB: Reflective Thinking
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9) The U.S. economy is a free enterprise system. It is also referred to as a "free trade system" because it is based on ________. A) voluntary exchange B) gambling and chance C) involuntary exchange D) government cooperation Answer: A Diff: 1 Learning Objective: 1.2 Examine how free-enterprise economies work and how entrepreneurs fit into them. AACSB: Analytical Thinking 10) Entrepreneurship can be very challenging. Which is not a typical challenge of being an entrepreneur? A) Loneliness B) Financial reward C) Long hours D) Financial insecurity Answer: B Diff: 2 Learning Objective: 1.2 Examine how free-enterprise economies work and how entrepreneurs fit into them. AACSB: Reflective Thinking 11) Which of the following is not a characteristic of the free-market system? A) Individuals and companies may compete for their own economic gains. B) Private wealth and property ownership are permissible. C) Prices are determined by a central authority. D) Free-market forces primarily determine prices. Answer: C Diff: 3 Learning Objective: 1.2 Examine how free-enterprise economies work and how entrepreneurs fit into them. AACSB: Analytical Thinking 12) The free-market system is also called ________. A) volunteerism B) socialism C) capitalism D) dogmatism Answer: C Diff: 1 Learning Objective: 1.2 Examine how free-enterprise economies work and how entrepreneurs fit into them. AACSB: Reflective Thinking
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13) Benefits of becoming an entrepreneur include independence, satisfaction, financial reward, self-esteem, and contributions to society. Answer: TRUE Diff: 2 Learning Objective: 1.2 Examine how free-enterprise economies work and how entrepreneurs fit into them. AACSB: Analytical Thinking 14) The economy of the United States is a free-enterprise system. Answer: TRUE Diff: 1 Learning Objective: 1.2 Examine how free-enterprise economies work and how entrepreneurs fit into them. AACSB: Analytical Thinking 15) Most of the world's businesses are ________ businesses. A) small B) medium-sized C) large D) family-owned Answer: A Diff: 1 Learning Objective: 1.3 Describe small business. AACSB: Analytical Thinking 16) A company that has more than ________ employees and sales of more than $________ million per year is considered to be a "big" business. A) 100; 5 B) 100; 10 C) 500; 5 D) 500; 10 Answer: C Diff: 2 Learning Objective: 1.3 Describe small business. AACSB: Analytical Thinking 17) Some of the world's greatest entrepreneurs have overcome challenges from their childhood and youth, including all of these except ________. A) learning disabilities B) abuse C) extreme poverty D) financial prosperity Answer: D Diff: 3 Learning Objective: 1.3 Describe small business. AACSB: Reflective Thinking 4 .