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

The chapters in this document are displayed in reversed order (Ch 17 to 1) with the last chapter
appearing first. This change ensures all chapters are included in the test bank.


All Chapters Included
Essentials of Entrepreneurship and Small Business Management, 10e (Scarborough)
Chapter 17 Building a New Venture Team and Planning for the Next Generation
1) Which of the following represents the process of influencing and inspiring others to work to
achieve a common goal and then giving them the power and the freedom to achieve it?
A) Management
B) Organizing
C) Leadership
D) Coordination
Answer: C
Diff: 1
Learning Obj.: 17-1 Explain the challenges involved in the entrepreneur's role as leader and
what it takes to be a successful leader.
AACSB: Reflective Thinking

2) Why does today's workforce expect a different, more sophisticated style of leadership than the
autocratic management style of the past?
A) They often rely on the leader to exert control of issues.
B) They prefer work environments that allow them to know what is expected each day.
C) They don't want to be responsible for tough decisions that impact the work environment.
D) They are more knowledgeable and skilled, with more options.
Answer: D
Diff: 1
Learning Obj.: 17-1 Explain the challenges involved in the entrepreneur's role as leader and
what it takes to be a successful leader.
AACSB: Reflective Thinking

3) What do today's employees look for in their work experiences and their leaders?
A) Significant rewards for accomplishing tasks and assignments
B) The ability to eliminate performance metrics and other tools of productivity
C) The freedom to use their intelligence and judgement to make decisions
D) Profit sharing and other long-term benefits that are not tied to performance
Answer: C
Diff: 2
Learning Obj.: 17-1 Explain the challenges involved in the entrepreneur's role as leader and
what it takes to be a successful leader.
AACSB: Reflective Thinking




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,4) How is technology changing leadership and the ways people work?
A) Employees are expected to be able to use research tools and respond quickly to changes in the
marketplace.
B) Information gathering by leaders take on less importance because it is outdated rapidly.
C) Various parts of the organization are interconnected and operate at faster speeds.
D) Fewer employees are specializing in a specific field, and prefer to move within areas freely.
Answer: C
Diff: 2
Learning Obj.: 17-1 Explain the challenges involved in the entrepreneur's role as leader and
what it takes to be a successful leader.
AACSB: Reflective Thinking

5) What is the role of managers in organizations today?
A) They inspire each employee to execute the vision of the company.
B) They get the business going rather than keeping it going.
C) They serve as the architect of the business.
D) They provide the necessary structure and organization.
Answer: D
Diff: 2
Learning Obj.: 17-1 Explain the challenges involved in the entrepreneur's role as leader and
what it takes to be a successful leader.
AACSB: Analytical Thinking

6) Which leadership style focuses on putting employees and their needs first rather than the
leader's personal needs?
A) Servant
B) Passive
C) Managerial
D) Visionary
Answer: A
Diff: 1
Learning Obj.: 17-1 Explain the challenges involved in the entrepreneur's role as leader and
what it takes to be a successful leader.
AACSB: Reflective Thinking

7) Why do leaders strive to encourage creativity among workers?
A) Innovative behavior is the key to future success.
B) Without innovation, work becomes dull and unexciting.
C) Innovation allows employees to define their own degree of success.
D) Without innovation, employees will not achieve their maximum performance levels.
Answer: A
Diff: 2
Learning Obj.: 17-1 Explain the challenges involved in the entrepreneur's role as leader and
what it takes to be a successful leader.
AACSB: Application of Knowledge



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,8) Both leadership and management are essential to a small company's success, but leadership
comes first.
Answer: TRUE
Diff: 1
Learning Obj.: 17-1 Explain the challenges involved in the entrepreneur's role as leader and
what it takes to be a successful leader.
AACSB: Reflective Thinking

9) Leadership deals with doing things right; management deals with doing the right things.
Answer: FALSE
Diff: 2
Learning Obj.: 17-1 Explain the challenges involved in the entrepreneur's role as leader and
what it takes to be a successful leader.
AACSB: Reflective Thinking

10) Although a small business manager must assume a wide range of ideas, tasks, and
responsibilities, none is more important than the role of leader.
Answer: TRUE
Diff: 2
Learning Obj.: 17-1 Explain the challenges involved in the entrepreneur's role as leader and
what it takes to be a successful leader.
AACSB: Reflective Thinking

11) Leadership gets a small business going; management keeps it going.
Answer: TRUE
Diff: 2
Learning Obj.: 17-1 Explain the challenges involved in the entrepreneur's role as leader and
what it takes to be a successful leader.
AACSB: Reflective Thinking

12) Effective leaders know that what they do is more important than what they say because they
set the example for their employees.
Answer: TRUE
Diff: 1
Learning Obj.: 17-1 Explain the challenges involved in the entrepreneur's role as leader and
what it takes to be a successful leader.
AACSB: Written and Oral Communication

13) Effective leaders make sure that workers have both the tangible and the intangible resources
needed to do their jobs well.
Answer: TRUE
Diff: 1
Learning Obj.: 17-1 Explain the challenges involved in the entrepreneur's role as leader and
what it takes to be a successful leader.
AACSB: Reflective Thinking



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, 14) Effective leaders recognize that money is not the only reward that motivates workers.
Answer: TRUE
Diff: 1
Learning Obj.: 17-1 Explain the challenges involved in the entrepreneur's role as leader and
what it takes to be a successful leader.
AACSB: Reflective Thinking

15) Because their companies are small, entrepreneurs need not develop the leadership skills
managers in larger companies need.
Answer: FALSE
Diff: 1
Learning Obj.: 17-1 Explain the challenges involved in the entrepreneur's role as leader and
what it takes to be a successful leader.
AACSB: Reflective Thinking

16) If their companies are to grow and reach their potential, entrepreneurs must learn to be
effective leaders.
Answer: TRUE
Diff: 1
Learning Obj.: 17-1 Explain the challenges involved in the entrepreneur's role as leader and
what it takes to be a successful leader.
AACSB: Reflective Thinking

17) What is leadership? How does leadership differ from management?
Answer: Leadership is the process of influencing and inspiring others to work to achieve a
common goal and then giving them the power and the freedom to achieve it. Management and
leadership are not the same; yet both are essential to a small company's success. Leadership
without management is unbridled; management without leadership is uninspired. Leadership gets
a small business going; management keeps it going. Leadership deals with people; management
deals with things. Leadership deals with vision; management deals with logistics toward that
vision. Leadership deals with doing the right things; management focuses on doing things right.
Leadership comes first, then management, but both are necessary.
Diff: 3
Learning Obj.: 17-1 Explain the challenges involved in the entrepreneur's role as leader and
what it takes to be a successful leader.
AACSB: Reflective Thinking




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