Chapter 01
The Twenty-First-Century Entrepreneur
True / False Questions
1. Entrepreneurial business is not important to the U.S. economy.
True False
2. Approximately 66 percent of all net new jobs are added by small businesses.
True False
3. The small business sector in the United States occupies 25 percent of all commercial space.
True False
4. Small businesses added 8 million new jobs to the economy.
True False
5. Corporate United States employs more people now than it did 10 years ago.
True False
6. Small companies can take advantage of economies of scale better than large firms.
True False
7. The rate of small business failure has declined.
True False
8. Alexis de Tocqueville, the French statesman, stated, "United States was not so much a nation
with ventures … but instead a nation of innumerable small ventures."
True False
9. Charles Wilson, secretary of defense for President Eisenhower, stated, "What is good for
General Motors is good for the nation."
True False
,10. In the late 1970s and 1980s the United States occupied the dominant economic position in
the world.
True False
11. One of the huge advantages of starting one's own business is that someone else can be the
boss. Small business owners are motivated by two areas to start a business: the desire to be
their own bosses and to set their own working hours.
True False
12. A customer of a small business could be considered an important stakeholder to the success
of a company.
True False
13. According to Thomas Stanley and William Donko in their book The Millionaire Next Door, 50
percent of the millionaires in the United States are self-employed.
True False
14. Self-employed people make up less than 20 percent of the workers in the United States.
True False
15. The profile of a millionaire is to have a high-technology company and a high-profile type of
business.
True False
16. Entrepreneurial businesses have the ability to make greater profits in markets that have been
ignored by larger corporations.
True False
17. Large companies understand their customers more in the local area compared to a small
firm.
True False
18. In 2001, the General Accounting Office discovered that in the areas where military bases
closed, the unemployment rate was less than the national average. This is because of the
start-up of new small businesses in the areas.
True False
,19. Heather Schuck, owner of Glamajama, is an example of how women can concentrate on
more than one facet of life.
True False
20. Small business growth is important in the United States and the world.
True False
21. There are widespread efforts worldwide to encourage the development of small and medium
entrepreneurs.
True False
22. The largest percent of recipients of microloans are Hispanics.
True False
23. Microloans are available to different sizes of businesses in the United States, but are not yet
available in other countries.
True False
24. According to the U.S. government, a small business is classified as any business with fewer
than 500 employees.
True False
25. A small business's harvest plan is to put the profits back into the company.
True False
26. Venture capitalists are a specialized type of investor; they typically do not invest their millions
and expect extraordinary returns.
True False
27. When using a harvest plan, small companies are organized to grow rapidly and they have no
debt.
True False
28. A small business start-up is typically self-funded or closely funded by the founder.
True False
, 29. A small business start-up should be designed to take advantages of the skills of the founder
or founders.
True False
30. A small business start-up is typically oriented toward the personal goals of venture
capitalists.
True False
31. Facebook and LinkedIn were founded as entrepreneurial businesses, but they are more
accurately described as venture capital-backed businesses.
True False
32. An entrepreneurial business's resources are less constrained than those of venture capital-
backed business.
True False
33. A business plan allows the owner to put information down in writing allowing for evaluation
and honest analysis.
True False
34. Each business plan, like every business, should have its own voice, feel, and style.
True False
35. A business plan should be a tool to think through a wide range of issues related to starting
and growing a business.
True False
36. The business time line demonstrates both constants and natural evolution in the development
of the United States.
True False
Multiple Choice Questions
The Twenty-First-Century Entrepreneur
True / False Questions
1. Entrepreneurial business is not important to the U.S. economy.
True False
2. Approximately 66 percent of all net new jobs are added by small businesses.
True False
3. The small business sector in the United States occupies 25 percent of all commercial space.
True False
4. Small businesses added 8 million new jobs to the economy.
True False
5. Corporate United States employs more people now than it did 10 years ago.
True False
6. Small companies can take advantage of economies of scale better than large firms.
True False
7. The rate of small business failure has declined.
True False
8. Alexis de Tocqueville, the French statesman, stated, "United States was not so much a nation
with ventures … but instead a nation of innumerable small ventures."
True False
9. Charles Wilson, secretary of defense for President Eisenhower, stated, "What is good for
General Motors is good for the nation."
True False
,10. In the late 1970s and 1980s the United States occupied the dominant economic position in
the world.
True False
11. One of the huge advantages of starting one's own business is that someone else can be the
boss. Small business owners are motivated by two areas to start a business: the desire to be
their own bosses and to set their own working hours.
True False
12. A customer of a small business could be considered an important stakeholder to the success
of a company.
True False
13. According to Thomas Stanley and William Donko in their book The Millionaire Next Door, 50
percent of the millionaires in the United States are self-employed.
True False
14. Self-employed people make up less than 20 percent of the workers in the United States.
True False
15. The profile of a millionaire is to have a high-technology company and a high-profile type of
business.
True False
16. Entrepreneurial businesses have the ability to make greater profits in markets that have been
ignored by larger corporations.
True False
17. Large companies understand their customers more in the local area compared to a small
firm.
True False
18. In 2001, the General Accounting Office discovered that in the areas where military bases
closed, the unemployment rate was less than the national average. This is because of the
start-up of new small businesses in the areas.
True False
,19. Heather Schuck, owner of Glamajama, is an example of how women can concentrate on
more than one facet of life.
True False
20. Small business growth is important in the United States and the world.
True False
21. There are widespread efforts worldwide to encourage the development of small and medium
entrepreneurs.
True False
22. The largest percent of recipients of microloans are Hispanics.
True False
23. Microloans are available to different sizes of businesses in the United States, but are not yet
available in other countries.
True False
24. According to the U.S. government, a small business is classified as any business with fewer
than 500 employees.
True False
25. A small business's harvest plan is to put the profits back into the company.
True False
26. Venture capitalists are a specialized type of investor; they typically do not invest their millions
and expect extraordinary returns.
True False
27. When using a harvest plan, small companies are organized to grow rapidly and they have no
debt.
True False
28. A small business start-up is typically self-funded or closely funded by the founder.
True False
, 29. A small business start-up should be designed to take advantages of the skills of the founder
or founders.
True False
30. A small business start-up is typically oriented toward the personal goals of venture
capitalists.
True False
31. Facebook and LinkedIn were founded as entrepreneurial businesses, but they are more
accurately described as venture capital-backed businesses.
True False
32. An entrepreneurial business's resources are less constrained than those of venture capital-
backed business.
True False
33. A business plan allows the owner to put information down in writing allowing for evaluation
and honest analysis.
True False
34. Each business plan, like every business, should have its own voice, feel, and style.
True False
35. A business plan should be a tool to think through a wide range of issues related to starting
and growing a business.
True False
36. The business time line demonstrates both constants and natural evolution in the development
of the United States.
True False
Multiple Choice Questions
