,DOWNLOAD THE Test Bank for Entrepreneurship The Art Science and Proces
for Success 2nd Edition Bamford
Chapter 02
Individual Leadership and Entrepreneurial Start-Ups
True / False Questions
1. There is one crucial person in a large organization: the chief executive officer.
True False
2. Large companies have excess resources to assist them. This excess is called boundaries unlimited.
True False
3. Organizational slack allows large organizations flexibility that is not available to smaller
companies.
True False
4. A new entrepreneurial business has many formal procedures to follow.
True False
5. The most important person in an entrepreneurial business is the founder.
True False
2-1
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
mynursytest.store
,DOWNLOAD THE Test Bank for Entrepreneurship The Art Science and Proces
for Success 2nd Edition Bamford
6. In a small family business, the most important support group is the family.
True False
7. A small business has less flexibility to respond to change than a large company.
True False
8. Large firms can fill market niches that small companies cannot afford to fill.
True False
9. One advantage that a large firm has over a small firm is economies of scale.
True False
10. The unlimited theory suggests that individuals act to maximize their own individual benefit.
True False
11. The agency theory implies that a small business owner is more likely to go on the Internet to find
the cheapest travel ticket available in order to save money for the business.
True False
12. One of the greatest assets of a small business is the owner.
True False
13. Potential entrepreneurs must determine the level of risk that they are able to tolerate.
True False
2-2
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
mynursytest.store
, DOWNLOAD THE Test Bank for Entrepreneurship The Art Science and Proces
for Success 2nd Edition Bamford
14. The profit point is when a new business has reached a level where revenue coming into the firm is
sufficient to cover expenses.
True False
15. In a small business an owner needs to consider how much debt he or she wants to accumulate in
the business. The greater the debt, the lower the risk tolerance.
True False
16. There is always a certain level of risk that an owner wants to assume.
True False
17. The owner must be aware of his or her own tolerance of risk and establish a business that is
consistent with that tolerance.
True False
18. Entrepreneurial orientation relies on an owner's prior work experience.
True False
19. Bounded rationality offers the individual from outside an industry the unconstrained role of
decision making that was not previously considered.
True False
20. Future business owners need to understand how their own version of rationality affects their
decision making.
True False
2-3
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
mynursytest.store
for Success 2nd Edition Bamford
Chapter 02
Individual Leadership and Entrepreneurial Start-Ups
True / False Questions
1. There is one crucial person in a large organization: the chief executive officer.
True False
2. Large companies have excess resources to assist them. This excess is called boundaries unlimited.
True False
3. Organizational slack allows large organizations flexibility that is not available to smaller
companies.
True False
4. A new entrepreneurial business has many formal procedures to follow.
True False
5. The most important person in an entrepreneurial business is the founder.
True False
2-1
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
mynursytest.store
,DOWNLOAD THE Test Bank for Entrepreneurship The Art Science and Proces
for Success 2nd Edition Bamford
6. In a small family business, the most important support group is the family.
True False
7. A small business has less flexibility to respond to change than a large company.
True False
8. Large firms can fill market niches that small companies cannot afford to fill.
True False
9. One advantage that a large firm has over a small firm is economies of scale.
True False
10. The unlimited theory suggests that individuals act to maximize their own individual benefit.
True False
11. The agency theory implies that a small business owner is more likely to go on the Internet to find
the cheapest travel ticket available in order to save money for the business.
True False
12. One of the greatest assets of a small business is the owner.
True False
13. Potential entrepreneurs must determine the level of risk that they are able to tolerate.
True False
2-2
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
mynursytest.store
, DOWNLOAD THE Test Bank for Entrepreneurship The Art Science and Proces
for Success 2nd Edition Bamford
14. The profit point is when a new business has reached a level where revenue coming into the firm is
sufficient to cover expenses.
True False
15. In a small business an owner needs to consider how much debt he or she wants to accumulate in
the business. The greater the debt, the lower the risk tolerance.
True False
16. There is always a certain level of risk that an owner wants to assume.
True False
17. The owner must be aware of his or her own tolerance of risk and establish a business that is
consistent with that tolerance.
True False
18. Entrepreneurial orientation relies on an owner's prior work experience.
True False
19. Bounded rationality offers the individual from outside an industry the unconstrained role of
decision making that was not previously considered.
True False
20. Future business owners need to understand how their own version of rationality affects their
decision making.
True False
2-3
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
mynursytest.store
