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Essentials of Entrepreneurship
and Small Business Management,
ST
10th Edition
UV
TEST BANK
IA
?_
Norman M. Scarborough
AP
Comprehensive Test Bank for Instructors
PR
and Students
||| ||| || ||| || | || ||| | || ||| |
OV
Pearson Education
© Norman M. Scarborough. All rights reserved.
ED
Reproduction or distribution without permission is
prohibited.
??
, Test Bank for
Essentials of Entrepreneurship and
ST
Small Business Management
UV
Revised by Susan Schanne
IA
Essentials of
?_
Entrepreneurship
AP
and Small Business
Management
PR
Tenth Edition
OV
Norman M. Scarborough
ED
??
, Essentials of Entrepreneurship and Small Business Management, 10e (Scarborough)
Chapter 1 The Foundations of Entrepreneurship
1) Globally, how does the United States compare with other countries in terms of entrepreneurial
activity?
A) They lag behind other high-income economies at just 10.8 percent of new startups.
ST
B) They have fewer, but more successful startups.
C) They are well above the global average of 12.9 percent.
D) They received more backing and resources from the government.
Answer: C
UV
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
IA
2) According to the Kauffman Foundation, about how many entrepreneurs in the United States
start businesses of their own because they cannot find jobs elsewhere?
A) 7 percent
?_
B) 19 percent
C) 32 percent
D) 43 percent
Answer: B
AP
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
PR
3) How has the downsizing trend among large companies impacted business in the United
States?
A) The rate of technological advancement has slowed.
B) Large firms take advantage of their hierarchical structure to exploit new markets.
OV
C) Large firms have better technology that leads to competitive advantage.
D) Small, nimble competitors are better able to exploit niche markets.
Answer: D
Diff: 2
Learning Obj.: 1.1 Define the role of the entrepreneur in business in the United States and
around the world.
ED
AACSB: Analytical Thinking
??
1
Copyright © 2026 Pearson Education, Inc.
, 4) Today, what matters most in the economic structure influencing the United States?
A) The growth of small businesses
B) Long-term profitability
C) Factors of production
D) Knowledge and information
Answer: D
ST
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
UV
5) The gig economy makes up 58 percent of the U.S. workforce.
Answer: FALSE
Diff: 1
Learning Obj.: 1.1 Define the role of the entrepreneur in business in the United States and
IA
around the world.
AACSB: Application of Knowledge
?_
6) One study conducted by the Global Entrepreneurship Monitor (GEM) reports that nearly one
in five people in the United States is working to start a business.
Answer: TRUE
Diff: 2
AP
Learning Obj.: 1.1 Define the role of the entrepreneur in business in the United States and
around the world.
AACSB: Application of Knowledge
7) According to Gallup's Builder Profile assessment, how do successful entrepreneurs manage
PR
risk?
A) They understand that the nature of entrepreneurship is based on risk.
B) They will take risks only to increase their probability of success.
C) They are willing to take higher risks for higher rewards.
OV
D) They systematically work to eliminate it.
Answer: D
Diff: 2
Learning Obj.: 1.2 Describe the entrepreneurial profile.
AACSB: Application of Knowledge
ED
??
2
Copyright © 2026 Pearson Education, Inc.
Essentials of Entrepreneurship
and Small Business Management,
ST
10th Edition
UV
TEST BANK
IA
?_
Norman M. Scarborough
AP
Comprehensive Test Bank for Instructors
PR
and Students
||| ||| || ||| || | || ||| | || ||| |
OV
Pearson Education
© Norman M. Scarborough. All rights reserved.
ED
Reproduction or distribution without permission is
prohibited.
??
, Test Bank for
Essentials of Entrepreneurship and
ST
Small Business Management
UV
Revised by Susan Schanne
IA
Essentials of
?_
Entrepreneurship
AP
and Small Business
Management
PR
Tenth Edition
OV
Norman M. Scarborough
ED
??
, Essentials of Entrepreneurship and Small Business Management, 10e (Scarborough)
Chapter 1 The Foundations of Entrepreneurship
1) Globally, how does the United States compare with other countries in terms of entrepreneurial
activity?
A) They lag behind other high-income economies at just 10.8 percent of new startups.
ST
B) They have fewer, but more successful startups.
C) They are well above the global average of 12.9 percent.
D) They received more backing and resources from the government.
Answer: C
UV
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
IA
2) According to the Kauffman Foundation, about how many entrepreneurs in the United States
start businesses of their own because they cannot find jobs elsewhere?
A) 7 percent
?_
B) 19 percent
C) 32 percent
D) 43 percent
Answer: B
AP
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
PR
3) How has the downsizing trend among large companies impacted business in the United
States?
A) The rate of technological advancement has slowed.
B) Large firms take advantage of their hierarchical structure to exploit new markets.
OV
C) Large firms have better technology that leads to competitive advantage.
D) Small, nimble competitors are better able to exploit niche markets.
Answer: D
Diff: 2
Learning Obj.: 1.1 Define the role of the entrepreneur in business in the United States and
around the world.
ED
AACSB: Analytical Thinking
??
1
Copyright © 2026 Pearson Education, Inc.
, 4) Today, what matters most in the economic structure influencing the United States?
A) The growth of small businesses
B) Long-term profitability
C) Factors of production
D) Knowledge and information
Answer: D
ST
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
UV
5) The gig economy makes up 58 percent of the U.S. workforce.
Answer: FALSE
Diff: 1
Learning Obj.: 1.1 Define the role of the entrepreneur in business in the United States and
IA
around the world.
AACSB: Application of Knowledge
?_
6) One study conducted by the Global Entrepreneurship Monitor (GEM) reports that nearly one
in five people in the United States is working to start a business.
Answer: TRUE
Diff: 2
AP
Learning Obj.: 1.1 Define the role of the entrepreneur in business in the United States and
around the world.
AACSB: Application of Knowledge
7) According to Gallup's Builder Profile assessment, how do successful entrepreneurs manage
PR
risk?
A) They understand that the nature of entrepreneurship is based on risk.
B) They will take risks only to increase their probability of success.
C) They are willing to take higher risks for higher rewards.
OV
D) They systematically work to eliminate it.
Answer: D
Diff: 2
Learning Obj.: 1.2 Describe the entrepreneurial profile.
AACSB: Application of Knowledge
ED
??
2
Copyright © 2026 Pearson Education, Inc.
