Test Bank for Essentials of Entrepreneurship and Small Business Management, 10th Edition by Norman M. Scarborough

Test Bank for
Y Y




Essentials of Entrepreneurship and
Y Y Y Y




Small Business Management
Y Y




Revised by Susan Schanne
Y Y Y




Essentials of Y Y




Entrepreneurship Y




and Small Business
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Management
Tenth Edition
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Norman M. Scarborough
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,EssentialsYofYEntrepreneurshipYandYSmallYBusinessYManagement,Y10eY(Scarborough
)YChapterY1 TheYFoundationsYofYEntrepreneurship

1) Globally,YhowYdoesYtheYUnitedYStatesYcompareYwithYotherYcountriesYinYtermsYofYentrepreneuri
alYactivity?
A) TheyYlagYbehindYotherYhigh-incomeYeconomiesYatYjustY10.8YpercentYofYnewYstartups.
B) TheyYhaveYfewer,YbutYmoreYsuccessfulYstartups.
C) TheyYareYwellYaboveYtheYglobalYaverageYofY12.9Ypercent.
D) TheyYreceivedYmoreYbackingYandYresourcesYfromYtheYgovernmen
t.YAnswer:Y C
Diff:Y1
LearningYObj.:Y1.1YDefineYtheYroleYofYtheYentrepreneurYinYbusinessYinYtheYUnitedYStatesYan
dYaroundYtheYworld.
AACSB: ReflectiveYThinking

2) AccordingYtoYtheYKauffmanYFoundation,YaboutYhowYmanyYentrepreneursYinYtheYUnitedYStat
esYstartYbusinessesYofYtheirYownYbecauseYtheyYcannotYfindYjobsYelsewhere?
A) 7Ypercent
B) 19Ypercent
C) 32Ypercent
D) 43Ypercen
tYAnswer:Y BY
Diff:Y2
LearningYObj.:Y1.1YDefineYtheYroleYofYtheYentrepreneurYinYbusinessYinYtheYUnitedYStatesYan
dYaroundYtheYworld.
AACSB: ReflectiveYThinking

3) HowYhasYtheYdownsizingYtrendYamongYlargeYcompaniesYimpactedYbusinessYinYtheYUnit
edYStates?
A) TheYrateYofYtechnologicalYadvancementYhasYslowed.
B) LargeYfirmsYtakeYadvantageYofYtheirYhierarchicalYstructureYtoYexploitYnewYmarkets.
C) LargeYfirmsYhaveYbetterYtechnologyYthatYleadsYtoYcompetitiveYadvantage.
D) Small,YnimbleYcompetitorsYareYbetterYableYtoYexploitYnicheYmarket
s.YAnswer:Y D
Diff:Y2
LearningYObj.:Y1.1YDefineYtheYroleYofYtheYentrepreneurYinYbusinessYinYtheYUnitedYStatesYan
dYaroundYtheYworld.
AACSB: AnalyticalYThinking




1
CopyrightY©Y2026YPearsonYEducation,YIn
c.

,4) Today,YwhatYmattersYmostYinYtheYeconomicYstructureYinfluencingYtheYUnitedYStates?
A) TheYgrowthYofYsmallYbusinesses
B) Long-termYprofitability
C) FactorsYofYproduction
D) KnowledgeYandYinformatio
nYAnswer:Y D
Diff:Y2
LearningYObj.:Y1.1YDefineYtheYroleYofYtheYentrepreneurYinYbusinessYinYtheYUnitedYStatesYan
dYaroundYtheYworld.
AACSB: AnalyticalYThinking

5) TheYgigYeconomyYmakesYupY58YpercentYofYtheYU.S.Yworkforc
e.YAnswer:Y FALSE
Diff:Y1
LearningYObj.:Y1.1YDefineYtheYroleYofYtheYentrepreneurYinYbusinessYinYtheYUnitedYStatesYan
dYaroundYtheYworld.
AACSB: ApplicationYofYKnowledge

6) OneYstudyYconductedYbyYtheYGlobalYEntrepreneurshipYMonitorY(GEM)YreportsYthatYnearlyYo
neYinYfiveYpeopleYinYtheYUnitedYStatesYisYworkingYtoYstartYaYbusiness.
Answer:YTRUEY
Diff:Y2
LearningYObj.:Y1.1YDefineYtheYroleYofYtheYentrepreneurYinYbusinessYinYtheYUnitedYStatesYan
dYaroundYtheYworld.
AACSB: ApplicationYofYKnowledge

7) AccordingYtoYGallup'sYBuilderYProfileYassessment,YhowYdoYsuccessfulYentrepreneursYmanag
eYrisk?
A) TheyYunderstandYthatYtheYnatureYofYentrepreneurshipYisYbasedYonYrisk.
B) TheyYwillYtakeYrisksYonlyYtoYincreaseYtheirYprobabilityYofYsuccess.
C) TheyYareYwillingYtoYtakeYhigherYrisksYforYhigherYrewards.
D) TheyYsystematicallyYworkYtoYeliminateYit
.YAnswer:Y D
Diff:Y2
LearningYObj.:Y1.2YDescribeYtheYentrepreneurialYprofile.Y
AACSB: ApplicationYofYKnowledge




2
CopyrightY©Y2026YPearsonYEducation,YIn
c.

, 8) WhichYofYtheYfollowingYbestYdefinesYanYentrepreneur?
A) OneYwhoYisYwillingYtoYimplementYaYbusinessYconceptYandYthenYmoveYonYifYitYdoesYnotYm
eetYimmediateYexpectations.
B) OneYwhoYunderstandsYtheYprocessYofYdevelopingYanYideaYandYhiresYsmallYcompaniesYtoYturnYth
atYideaYintoYaYviableYbusinessYconcept.
C) OneYwhoYknowsYthatYtheYconceptYtheyYareYaboutYtoYdevelopYwillYresultYinYaYprofitableYbusiness.
D) OneYwhoYcreatesYaYnewYbusinessYinYtheYfaceYofYriskYandYuncertaintyYbyYassemblingYt
heYnecessaryYresourcesYtoYcapitalizeYonYidentifiedYopportunities.
Answer:YDYDiff
:Y 2
LearningYObj.:Y1.2YDescribeYtheYentrepreneurialYprofile.Y
AACSB: AnalyticalYThinking

9) WhichYofYfollowingYisYnotYaYcharacteristicYofYtheYtypicalYentrepreneur?
A) ConfidenceYinYtheirYabilityYtoYsucceed
B) ValueYofYmoneyYoverYachievement
C) DesireYforYimmediateYfeedback
D) AYfutureYorientatio
nYAnswer:Y B
Diff:Y1
LearningYObj.:Y1.2YDescribeYtheYentrepreneurialYprofile.Y
AACSB: ReflectiveYThinking

10) HowYdoesYtheYchurnYrateYofYnewYventuresYimpactYtheYeconomy?
A) LargeYcompaniesYwillYcontinueYtoYhaveYanYeconomicYcompetitiveYedge.
B) ItYleadsYtoYlowerYlevelsYofYnewYbusinessYformation.
C) StandardsYofYlivingYdeclineYwhenYbusinessesYfail.
D) ItYcreatesYaYhealthyYresponseYtoYtheYcompetitiveYlandscap
e.YAnswer:Y D
Diff:Y3
LearningYObj.:Y1.2YDescribeYtheYentrepreneurialYprofile.Y
AACSB: AnalyticalYThinking

11) EntrepreneursYwhoYrepeatedlyYstartYbusinessesYandYgrowYtoYaYsustainableYsizeYbeforeYstriki
ngYoutYagainYareYknownYasYwhichYtypeYofYentrepreneur?
A) Opportunistic
B) Persistent
C) Serial
D) ClassicY
Answer:YCY
Diff:Y1
LearningYObj.:Y1.2YDescribeYtheYentrepreneurialYprofile.Y
AACSB: ReflectiveYThinking




3
CopyrightY©Y2026YPearsonYEducation,YIn
c.