Chapter 1 Homework Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough) The Foundations of Entrepreneurship ALL ANSWERS SPRING FALL-2022 LATEST SOLUTION GUARANTEED GRADE A+

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 Page Ref: 1 AACSB: Reflective Thinking Learning Obj.: 1 2) The recent number of job losses in large corporations compared to the jobs created by small business has changed the perception of for launching a new business. A) prestige B) risk C) financing opportunities D) short-term potential Answer: B Diff: 2 Page Ref: 2 AACSB: Reflective Thinking Learning Obj.: 1 3) 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 Page Ref: 5-6 AACSB: Reflective Thinking Learning Obj.: 1 4) 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 Page Ref: 4 AACSB: Analytic Skills Learning Obj.: 2 5) 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 Page Ref: 4-7 AACSB: Reflective Thinking Learning Obj.: 2 6) 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 Page Ref: 6-7 AACSB: Reflective Thinking Learning Obj.: 2 7) 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 Page Ref: 6 AACSB: Reflective Thinking Learning Obj.: 2 8) 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 Page Ref: 6 AACSB: Reflective Thinking Learning Obj.: 2 9) 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 Page Ref: 6 AACSB: Reflective Thinking Learning Obj.: 2 10) In addition to the opportunity to create their own destiny and enjoy what they do, entrepreneurs also benefit from the ability to: A) earn tremendous wealth without risk and uncertainty. B) make a difference in an area important to them and be recognized for those efforts. C) create wealth without providing true value. D) exploit the opportunities that the free enterprise system offers. Answer: B Diff: 2 Page Ref: 9 AACSB: Reflective Thinking Learning Obj.: 3 11) In a large organization, an individual may be stifled and limited by a wide variety of factors. However, by owning one's own business, the only limits are one's own creativity, talent, and determination. In this sense, small business ownership offers the advantage of the: A) opportunity to reach one's full potential. B) opportunity to reap unlimited profits. C) chance to learn from other's mistakes. D) ability to accumulate certain wealth. Answer: A Diff: 2 Page Ref: 10-11 AACSB: Reflective Thinking Learning Obj.: 3 12) Which of the following is a benefit of entrepreneurship? A) The opportunity to gain control over your own destiny. B) The opportunity to reach your full potential. C) The opportunity to do what you enjoy. D) All of the above Answer: D Diff: 1 Page Ref: 9-11 AACSB: Reflective Thinking Learning Obj.: 3 13) Potential drawbacks of entrepreneurship may include: A) uncertainty of income, risk, long hours, and high stress. B) uncertainty of income, risk, easy hours, and frequent vacations. C) uncertainty of income, risk, long hours, and the immediate accumulation of wealth. D) certainty of income, risk, long hours, and high stress. Answer: A Diff: 2 Page Ref: 12-13 AACSB: Reflective Thinking Learning Obj.: 3 14) It is estimated that percent of new businesses fail within two years, while percent fail within five years. A) 31; 51 B) 51; 64 C) 35; 41 D) 51; 31 Answer: A Diff: 3 Page Ref: 12 AACSB: Analytic Skills Learning Obj.: 3 15) Within five years, percent of new businesses will fail. A) 31 B) 45 C) 51 D) 65 Answer: C Diff: 2 Page Ref: 12 AACSB: Analytic Skills Learning Obj.: 3