Effective Small Business Management, 10e (Scarborough)
Chapter 1 Entrepreneurs: The Driving Force Behind Small Business
1) The nation is rapidly moving from:
A) industrial to capitalism.
B) capitalism to industrial.
C) industrial to knowledge-based.
D) None of the above
Answer: C
Page Ref: 4
Topic: Introduction
AACSB: Communication
2) Which of the following corporate trends have contributed to the growth of
entrepreneurship?
A) The acquisition and merging of mega corporations
B) The idea that "small is beautiful" in large companies, resulting in less hierarchy and
layers of management
C) The flood of venture capital being made available to small businesses
D) The downturn in international markets forcing a focus on the domestic market
Answer: B
Page Ref: 3
Topic: Introduction
AACSB: Communication
3) Entrepreneurial education:
,A) has become extremely popular.
B) universities are not able to meet the demand.
C) more courses are being offered in entrepreneurship.
D) All of the above
Answer: D
Page Ref: 16
Topic: Why the Boom: The Fuel Feeding the Entrepreneurial Fire
AACSB: Communication
4) Researchers who study entrepreneurs have discovered that:
A) successful entrepreneurs start with an idea, resources, and a small management team.
B) there is one key set of traits that mark a successful entrepreneur.
C) entrepreneurs desire responsibility and are willing to take moderate risks.
D) the most successful entrepreneurs are willing to take extreme risks and bet the farm in
order to succeed.
Answer: C
Page Ref: 5
Topic: What is an Entrepreneur?
AACSB: Multicultural and Diversity
,5) Dirk wants to be in control. He's tired of taking orders from others and wants to feel a
sense of accountability for the outcome of his work. Dirk displays the entrepreneurial
characteristic of:
A) the desire for immediate feedback.
B) a desire for responsibility.
C) confidence in his ability to succeed.
D) a high energy level.
Answer: A
Page Ref: 6
Topic: What is an Entrepreneur?
AACSB: Analytic Skills
6) Entrepreneurs seem to be characterized by:
A) a desire for money.
B) an inability to organize but strong conceptual skills.
C) a desire to work alone because of weak management skills and a need for control.
D) a high energy level.
Answer: D
Page Ref: 6
Topic: What is an Entrepreneur?
AACSB: Reflective Thinking
7) Juan is able to work well in a constantly changing atmosphere and has little concern
for what tomorrow will bring. Juan demonstrates which of the following characteristics
of a typical entrepreneur?
A) The willingness to take extreme risks
B) A desire for immediate feedback
C) A tolerance for ambiguity
, D) A future orientation
Answer: C
Page Ref: 7
Topic: What is an Entrepreneur?
AACSB: Analytic Skills
8) Entrepreneurs start businesses for a number of reasons including:
A) an opportunity to make a difference.
B) having to deal with less government regulation than as an executive of a large
company.
C) a much lower risk of career failure due to layoff or acquisition than working for a
large company.
D) the opportunity to get rich much quicker than if they work for a large company.
Answer: A
Page Ref: 12
Topic: The Benefits of Owning a Small Business
AACSB: Reflective Thinking
Chapter 1 Entrepreneurs: The Driving Force Behind Small Business
1) The nation is rapidly moving from:
A) industrial to capitalism.
B) capitalism to industrial.
C) industrial to knowledge-based.
D) None of the above
Answer: C
Page Ref: 4
Topic: Introduction
AACSB: Communication
2) Which of the following corporate trends have contributed to the growth of
entrepreneurship?
A) The acquisition and merging of mega corporations
B) The idea that "small is beautiful" in large companies, resulting in less hierarchy and
layers of management
C) The flood of venture capital being made available to small businesses
D) The downturn in international markets forcing a focus on the domestic market
Answer: B
Page Ref: 3
Topic: Introduction
AACSB: Communication
3) Entrepreneurial education:
,A) has become extremely popular.
B) universities are not able to meet the demand.
C) more courses are being offered in entrepreneurship.
D) All of the above
Answer: D
Page Ref: 16
Topic: Why the Boom: The Fuel Feeding the Entrepreneurial Fire
AACSB: Communication
4) Researchers who study entrepreneurs have discovered that:
A) successful entrepreneurs start with an idea, resources, and a small management team.
B) there is one key set of traits that mark a successful entrepreneur.
C) entrepreneurs desire responsibility and are willing to take moderate risks.
D) the most successful entrepreneurs are willing to take extreme risks and bet the farm in
order to succeed.
Answer: C
Page Ref: 5
Topic: What is an Entrepreneur?
AACSB: Multicultural and Diversity
,5) Dirk wants to be in control. He's tired of taking orders from others and wants to feel a
sense of accountability for the outcome of his work. Dirk displays the entrepreneurial
characteristic of:
A) the desire for immediate feedback.
B) a desire for responsibility.
C) confidence in his ability to succeed.
D) a high energy level.
Answer: A
Page Ref: 6
Topic: What is an Entrepreneur?
AACSB: Analytic Skills
6) Entrepreneurs seem to be characterized by:
A) a desire for money.
B) an inability to organize but strong conceptual skills.
C) a desire to work alone because of weak management skills and a need for control.
D) a high energy level.
Answer: D
Page Ref: 6
Topic: What is an Entrepreneur?
AACSB: Reflective Thinking
7) Juan is able to work well in a constantly changing atmosphere and has little concern
for what tomorrow will bring. Juan demonstrates which of the following characteristics
of a typical entrepreneur?
A) The willingness to take extreme risks
B) A desire for immediate feedback
C) A tolerance for ambiguity
, D) A future orientation
Answer: C
Page Ref: 7
Topic: What is an Entrepreneur?
AACSB: Analytic Skills
8) Entrepreneurs start businesses for a number of reasons including:
A) an opportunity to make a difference.
B) having to deal with less government regulation than as an executive of a large
company.
C) a much lower risk of career failure due to layoff or acquisition than working for a
large company.
D) the opportunity to get rich much quicker than if they work for a large company.
Answer: A
Page Ref: 12
Topic: The Benefits of Owning a Small Business
AACSB: Reflective Thinking
