Essentials of Entrepreneurship and Small Business Management, 9th Edition BY Norman M. Scarborough
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Pearson Education Limited KAO Two KAO Park Harlow CM17 9NA United Kingdom and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsonglobaleditions.com © Pearson Education Limited 2019 The rights of Norman M. Scarborough and Jeffrey R. Cornwall to be identified as the authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988. Authorized adaptation from the United States edition, entitled Essentials of Entrepreneurship and Small Business Management, 9th edition, ISBN 978-0-13-474108-6, by Norman M. Scarborough and Jeffrey R. Cornwall, published by Pearson Education © 2019. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a license permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS. All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners.
ISBN 10: 1-292-26602-3 ISBN 13: 978-1-292-26602-2 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library. 10 9 8 7 6 5 4 3 2 1 Typeset in Times LT Pro-Roman by Cenveo® Publisher Services Printed and bound by Vivar, Malaysia.
Essentials of Entrepreneurship and Small Business Management, 9e, Global Edition (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 Answer: C Diff: 1 Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States and around the world. AACSB: Reflective Thinking 2) The Kauffman Foundation reports that nearly one out of ________ entrepreneurs in the United States start businesses of their own because they cannot find jobs elsewhere. A) four B) five C) six D) seven Answer: B Diff: 2 Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States and around the world. AACSB: Reflective Thinking 3) Globally, one in eight adults is actively engaged in launching a business. Answer: TRUE Diff: 1 Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States and around the world. AACSB: Analytical Thinking 4) Current competitive conditions favor large companies over smaller ones because of their flexibility combined with their ability to use their size to achieve efficiency and economies of scale. Answer: FALSE Diff: 1 Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States and around the world. AACSB: Analytical Thinking
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5) Increased entrepreneurial activity is a phenomenon unique to the U.S. Answer: FALSE Diff: 1 Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States and around the world. AACSB: Analytical Thinking 6) One study conducted by the Global Entrepreneurship Monitor (GEM) reports that nearly one in eight people in the United States is working to start a business. Answer: TRUE Diff: 2 Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States and around the world. AACSB: Analytical Thinking 7) 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 Answer: D Diff: 1 Learning Obj: 1-2 Describe the entrepreneurial profile. AACSB: Reflective Thinking 8) 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 Answer: D Diff: 1 Learning Obj: 1-2 Describe the entrepreneurial profile. AACSB: Analytical Thinking 9) 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 Answer: B Diff: 1 Learning Obj: 1-2 Describe the entrepreneurial profile. AACSB: Reflective Thinking 2 .
10) Entrepreneurs are characterized by ________. A) skill at organizing B) desire for immediate feedback C) high energy levels D) All of the above Answer: D Diff: 1 Learning Obj: 1-2 Describe the entrepreneurial profile. AACSB: Reflective Thinking 11) 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 Answer: C Diff: 1 Learning Obj: 1-2 Describe the entrepreneurial profile. AACSB: Reflective Thinking 12) 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 Answer: C Diff: 2 Learning Obj: 1-2 Describe the entrepreneurial profile. AACSB: Reflective Thinking 13) 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 Answer: A Diff: 1 Learning Obj: 1-2 Describe the entrepreneurial profile. AACSB: Reflective Thinking
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