TEST BANK
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT
9TH EDITION
CHAPTER NO. 01: THE FOUNDATIONS OF ENTREPRENEURSHIP
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
Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States and
around the world.
AACSB: Reflective Thinking
2) The Kauffman Foundation reports that nearly one out of ________ entrepreneurs in the United
States start businesses of their own because they cannot find jobs elsewhere.
A) four
B) five
C) six
D) seven
Answer: B
Diff: 2
Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States and
around the world.
AACSB: Reflective Thinking
3) Globally, one in eight adults is actively engaged in launching a business.
,Answer: TRUE
Diff: 1
Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States and
around the world.
AACSB: Analytical Thinking
4) 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.
Answer: FALSE
Diff: 1
Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States and
around the world.
AACSB: Analytical Thinking
5) Increased entrepreneurial activity is a phenomenon unique to the U.S.
Answer: FALSE
Diff: 1
Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States and
around the world.
AACSB: Analytical Thinking
6) 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.
Answer: TRUE
Diff: 2
Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States and
around the world.
AACSB: Analytical Thinking
7) 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
Learning Obj: 1-2 Describe the entrepreneurial profile.
AACSB: Reflective Thinking
8) 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
Learning Obj: 1-2 Describe the entrepreneurial profile.
AACSB: Analytical Thinking
9) 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
Learning Obj: 1-2 Describe the entrepreneurial profile.
AACSB: Reflective Thinking
10) 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
Learning Obj: 1-2 Describe the entrepreneurial profile.
AACSB: Reflective Thinking
11) 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
Learning Obj: 1-2 Describe the entrepreneurial profile.
AACSB: Reflective Thinking
12) 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
Learning Obj: 1-2 Describe the entrepreneurial profile.
AACSB: Reflective Thinking
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT
9TH EDITION
CHAPTER NO. 01: THE FOUNDATIONS OF ENTREPRENEURSHIP
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
Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States and
around the world.
AACSB: Reflective Thinking
2) The Kauffman Foundation reports that nearly one out of ________ entrepreneurs in the United
States start businesses of their own because they cannot find jobs elsewhere.
A) four
B) five
C) six
D) seven
Answer: B
Diff: 2
Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States and
around the world.
AACSB: Reflective Thinking
3) Globally, one in eight adults is actively engaged in launching a business.
,Answer: TRUE
Diff: 1
Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States and
around the world.
AACSB: Analytical Thinking
4) 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.
Answer: FALSE
Diff: 1
Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States and
around the world.
AACSB: Analytical Thinking
5) Increased entrepreneurial activity is a phenomenon unique to the U.S.
Answer: FALSE
Diff: 1
Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States and
around the world.
AACSB: Analytical Thinking
6) 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.
Answer: TRUE
Diff: 2
Learning Obj: 1-1 Define the role of the entrepreneur in business in the United States and
around the world.
AACSB: Analytical Thinking
7) 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
Learning Obj: 1-2 Describe the entrepreneurial profile.
AACSB: Reflective Thinking
8) 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
Learning Obj: 1-2 Describe the entrepreneurial profile.
AACSB: Analytical Thinking
9) 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
Learning Obj: 1-2 Describe the entrepreneurial profile.
AACSB: Reflective Thinking
10) 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
Learning Obj: 1-2 Describe the entrepreneurial profile.
AACSB: Reflective Thinking
11) 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
Learning Obj: 1-2 Describe the entrepreneurial profile.
AACSB: Reflective Thinking
12) 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
Learning Obj: 1-2 Describe the entrepreneurial profile.
AACSB: Reflective Thinking
