BA109 Module 6 Exam (Chapters 1-5) with complete
solution
Which of the following statements about women-owned businesses is false?
The survival rate of women-owned businesses is much lower than that of U.S.
businesses overall.
T/F About 75 percent of the businesses in the U.S. can be considered "small"
businesses.
False
Entrepreneurs who start businesses because they cannot find work any other
way are:
necessity entrepreneurs.
Entrepreneurs typically possess:
a high level of commitment, have a tolerance for ambiguity, are flexible and tenacious.
Which of the following is NOT one of the forces driving the entrepreneurial trend
in our country?
Shift away from a service economy
T/F Small businesses actually create more jobs than the number of jobs big
businesses create.
True
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.
risk
T/F David Birch considers "gazelles" those businesses that grow at 20 percent or
more per year and gross at least $100,000 in annual sales.
True
T/F The 21st century has seen record numbers of entrepreneurs launching
businesses on a global basis.
True
T/F Increasing numbers of women are discovering that the best way to break the
"glass ceiling" that prevents them from rising to the top of many organizations is
to start their own companies.
True
T/F Diversity may be considered a characteristic of entrepreneurs, as they don't
fit any statistical norm.
True
Which of the following is/are true regarding business plans?
All of these
The nation's small businesses:
All of these
T/F There is concern over the future of entrepreneurship because so few high
school and college students want to start their own companies.
False
T/F Increased entrepreneurial activity is a phenomenon unique to the U.S.
,False
Small companies that have expanded successfully into foreign markets tend to
rely on all but which of the following strategies?
Focus on many countries initially.
The majority of small companies are concentrated in the ________ and ________
industries.
retail; service
Entrepreneurs that use their skills to create a profitable business that is designed
to achieve social and environmental goals for the common good are known as:
social entrepreneurs.
Approximately ________ percent of corporate managers who are "cast off" as
companies downsize become entrepreneurs.
20
T/F Surveys show that small business owners believe that, as entrepreneurs, they
work harder, earn more money, and are happier than if they worked for a large
company.
True
The only people who ________ are those who never do anything or never attempt
anything new.
fail
Which of the following statements is not true regarding the diversity of
entrepreneurs?
Minority-owned businesses now account for approximately 22 percent of all businesses
in the U.S.
T/F Small companies have created at least two-thirds of the net new jobs in the
U.S. economy.
True
All of the following are characteristics of the typical entrepreneur except:
value of money over achievement.
Which of the following statements concerning small businesses and international
markets is false?
Because exporting is so complex and requires a company to have so many international
experts on staff, exporting is not feasible for small businesses.
Entrepreneurs can increase their chances for success if they:
All of these
T/F Entrepreneurs are not willing to give up a steady paycheck.
False
T/F 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..
True
T/F 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.
False
Entrepreneurial couples who work together as co-owners of their business are
referred to as:
,copreneurs.
T/F The opportunity to reap impressive profits is the primary motivation for most
entrepreneurs
False
According to the U.S. Small Business Administration, a common delineation of a
small business is one that employs fewer than:
100 people.
David Birch, president of the research firm Cognetics, suggests that three
percent of small businesses create approximately ________ percent of new jobs.
70
One of the most significant economic developments in recent business history
relates to the:
entrepreneurial spirit.
Which of the following was not identified as one of the suggestions for small
business success?
Develop a business plan as you grow your business.
Entrepreneurs who repeatedly start businesses and grow to a sustainable size
before striking out again are known as ________ entrepreneurs.
serial
An entrepreneur is one who:
creates a new business concept for the purpose of achieving profit and growth by
assembling the necessary resources to capitalize on identified opportunities.
It is estimated that ________ percent of new businesses fail within two years,
while ________ percent fail within five years.
31; 51
T/F Most entrepreneurs have invested the time to develop a sound business plan.
False
T/F Large companies create significantly more patents and other forms of
innovations per research and development dollars spent than small firms.
False
T/F About 20 percent of downsized corporate managers have become
entrepreneurs.
True
Small companies that operate globally from their inception are referred to as:
micromultinationals.
T/F Most family businesses survive to the fourth generation.
False
T/F Research has isolated a set of characteristics that can predict who will
succeed as an entrepreneur.
False
Melinda and John Perez, both corporate attorneys in New York City, have grown
tired of their lengthy daily commute, the stress of their jobs, and the overbearing
policies of their employers. They have decided to leave their six-figure jobs and
together open a guide service in Wyoming. Melinda and John are examples of:
corporate castoffs and corporate dropouts.
, T/F Because of their size and limited resources, small businesses rarely create
innovations that are important to the U.S. economy.
False
Within five years, ________ percent of new businesses will fail.
51
T/F Ninety-percent of businesses in the United States are family-owned and
managed and account for 62 percent of total U.S. employment.
True
T/F Family-owned and managed businesses account for 78 percent of all new
jobs.
True
The profile of an entrepreneur includes:
All of these
The demographic attributes of successful entrepreneurs are:
highly diverse relating to age, gender, and ethnicity.
T/F Corporate downsizing has spawned a generation of entrepreneurs known as
"corporate castoffs."
True
T/F Successful "copreneurs" create a division of labor based on expertise.
True
T/F One advantage of being your own boss and owning a small business is that
work hours are very flexible and leisure time is abundant.
False
T/F Starting a part-time business is a popular gateway to entrepreneurship.
True
The opportunity to reap impressive profits is the primary motivation for most
entrepreneurs.
False
Factors that feed the economic boom behind entrepreneurship include:
All of these
T/F Serial entrepreneurs repeatedly start businesses and grow them to a
sustainable size before striking out again.
True
Small companies:
are the leaders in offering training and advancement opportunities to workers
The majority of new business owners work:
more than 40 hours per week.
T/F Minority-owned businesses have come a long way in the past decade, and
their success rate is climbing.
True
Entrepreneurs may find benefit from the Internet due to its potential:
as a relatively low-cost solution to expand its revenue-generating abilities.
Which of the following is a benefit of entrepreneurship?
The opportunity to gain control over your own destiny, The opportunity to reach your full
potential, The opportunity to do what you enjoy.
solution
Which of the following statements about women-owned businesses is false?
The survival rate of women-owned businesses is much lower than that of U.S.
businesses overall.
T/F About 75 percent of the businesses in the U.S. can be considered "small"
businesses.
False
Entrepreneurs who start businesses because they cannot find work any other
way are:
necessity entrepreneurs.
Entrepreneurs typically possess:
a high level of commitment, have a tolerance for ambiguity, are flexible and tenacious.
Which of the following is NOT one of the forces driving the entrepreneurial trend
in our country?
Shift away from a service economy
T/F Small businesses actually create more jobs than the number of jobs big
businesses create.
True
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.
risk
T/F David Birch considers "gazelles" those businesses that grow at 20 percent or
more per year and gross at least $100,000 in annual sales.
True
T/F The 21st century has seen record numbers of entrepreneurs launching
businesses on a global basis.
True
T/F Increasing numbers of women are discovering that the best way to break the
"glass ceiling" that prevents them from rising to the top of many organizations is
to start their own companies.
True
T/F Diversity may be considered a characteristic of entrepreneurs, as they don't
fit any statistical norm.
True
Which of the following is/are true regarding business plans?
All of these
The nation's small businesses:
All of these
T/F There is concern over the future of entrepreneurship because so few high
school and college students want to start their own companies.
False
T/F Increased entrepreneurial activity is a phenomenon unique to the U.S.
,False
Small companies that have expanded successfully into foreign markets tend to
rely on all but which of the following strategies?
Focus on many countries initially.
The majority of small companies are concentrated in the ________ and ________
industries.
retail; service
Entrepreneurs that use their skills to create a profitable business that is designed
to achieve social and environmental goals for the common good are known as:
social entrepreneurs.
Approximately ________ percent of corporate managers who are "cast off" as
companies downsize become entrepreneurs.
20
T/F Surveys show that small business owners believe that, as entrepreneurs, they
work harder, earn more money, and are happier than if they worked for a large
company.
True
The only people who ________ are those who never do anything or never attempt
anything new.
fail
Which of the following statements is not true regarding the diversity of
entrepreneurs?
Minority-owned businesses now account for approximately 22 percent of all businesses
in the U.S.
T/F Small companies have created at least two-thirds of the net new jobs in the
U.S. economy.
True
All of the following are characteristics of the typical entrepreneur except:
value of money over achievement.
Which of the following statements concerning small businesses and international
markets is false?
Because exporting is so complex and requires a company to have so many international
experts on staff, exporting is not feasible for small businesses.
Entrepreneurs can increase their chances for success if they:
All of these
T/F Entrepreneurs are not willing to give up a steady paycheck.
False
T/F 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..
True
T/F 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.
False
Entrepreneurial couples who work together as co-owners of their business are
referred to as:
,copreneurs.
T/F The opportunity to reap impressive profits is the primary motivation for most
entrepreneurs
False
According to the U.S. Small Business Administration, a common delineation of a
small business is one that employs fewer than:
100 people.
David Birch, president of the research firm Cognetics, suggests that three
percent of small businesses create approximately ________ percent of new jobs.
70
One of the most significant economic developments in recent business history
relates to the:
entrepreneurial spirit.
Which of the following was not identified as one of the suggestions for small
business success?
Develop a business plan as you grow your business.
Entrepreneurs who repeatedly start businesses and grow to a sustainable size
before striking out again are known as ________ entrepreneurs.
serial
An entrepreneur is one who:
creates a new business concept for the purpose of achieving profit and growth by
assembling the necessary resources to capitalize on identified opportunities.
It is estimated that ________ percent of new businesses fail within two years,
while ________ percent fail within five years.
31; 51
T/F Most entrepreneurs have invested the time to develop a sound business plan.
False
T/F Large companies create significantly more patents and other forms of
innovations per research and development dollars spent than small firms.
False
T/F About 20 percent of downsized corporate managers have become
entrepreneurs.
True
Small companies that operate globally from their inception are referred to as:
micromultinationals.
T/F Most family businesses survive to the fourth generation.
False
T/F Research has isolated a set of characteristics that can predict who will
succeed as an entrepreneur.
False
Melinda and John Perez, both corporate attorneys in New York City, have grown
tired of their lengthy daily commute, the stress of their jobs, and the overbearing
policies of their employers. They have decided to leave their six-figure jobs and
together open a guide service in Wyoming. Melinda and John are examples of:
corporate castoffs and corporate dropouts.
, T/F Because of their size and limited resources, small businesses rarely create
innovations that are important to the U.S. economy.
False
Within five years, ________ percent of new businesses will fail.
51
T/F Ninety-percent of businesses in the United States are family-owned and
managed and account for 62 percent of total U.S. employment.
True
T/F Family-owned and managed businesses account for 78 percent of all new
jobs.
True
The profile of an entrepreneur includes:
All of these
The demographic attributes of successful entrepreneurs are:
highly diverse relating to age, gender, and ethnicity.
T/F Corporate downsizing has spawned a generation of entrepreneurs known as
"corporate castoffs."
True
T/F Successful "copreneurs" create a division of labor based on expertise.
True
T/F One advantage of being your own boss and owning a small business is that
work hours are very flexible and leisure time is abundant.
False
T/F Starting a part-time business is a popular gateway to entrepreneurship.
True
The opportunity to reap impressive profits is the primary motivation for most
entrepreneurs.
False
Factors that feed the economic boom behind entrepreneurship include:
All of these
T/F Serial entrepreneurs repeatedly start businesses and grow them to a
sustainable size before striking out again.
True
Small companies:
are the leaders in offering training and advancement opportunities to workers
The majority of new business owners work:
more than 40 hours per week.
T/F Minority-owned businesses have come a long way in the past decade, and
their success rate is climbing.
True
Entrepreneurs may find benefit from the Internet due to its potential:
as a relatively low-cost solution to expand its revenue-generating abilities.
Which of the following is a benefit of entrepreneurship?
The opportunity to gain control over your own destiny, The opportunity to reach your full
potential, The opportunity to do what you enjoy.
