QUESTION What is the term for a person who works within an organization to develop an opportunity for a new product or service? A) opportunity entrepreneur B) classic entrepreneur C) necessity entrepreneur D) intrapreneur E) resident entrepreneur ANSWER Answer: D Explanation: D) An intrapreneur mobilizes the organization’s resources to realize an opportunity for a […]
QUESTION Johnetta was laid off from her job as a receptionist two years ago. After applying unsuccessfully for hundreds of jobs, she decided to take a chance selling her berry pies. She earns a good living and is quite happy with her little slice of the American dream. Which term best describes Johnetta? A) classic […]
QUESTION Nathan has been working with eight other colleagues on a special project to develop a groundbreaking product for consumer medical technology. The employees were selected by the company’s CEO and have been given a secure floor in the facility and a hefty R&D budget. What term best describes this group? A) opportunity entrepreneurs B) […]
QUESTION Sandra owns an educational technology company. She feels the field is getting crowded and wants to develop an innovative software product that will help the company stay ahead of the pack. What is her best strategy to accomplish this goal? A) Hire a group of new employees as an entrepreneurial team. B) Hire a […]
QUESTION Which of the following terms is best associated with being an entrepreneur? A) safety B) certainty C) predictability D) ambiguity E) reliability ANSWER Answer: D Explanation: D) The business world is filled with change and risk; entrepreneurs must have a high tolerance for ambiguity.
QUESTION A venture capitalist receives an ownership stake in a new business in return for its investment. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Venture capitalists are generally companies, not individuals. They provide little financing for small businesses, focusing on larger enterprises in several industry sectors.
QUESTION Which of the following is NOT a common psychological characteristic of entrepreneurs? A) high energy level B) high need for achievement C) high need for delegating control D) high tolerance for ambiguity E) high self-confidence ANSWER Answer: C Explanation: C) Entrepreneurs tend to have a high need for personal control over their own […]
QUESTION The Small Business Administration offers a variety of direct loans to help new businesses get started. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: The SBA does not make direct loans; it guarantees business loans made by banks.
QUESTION Which of the following operates in “crisis mode” when starting an enterprise? A) intrapreneur B) necessity entrepreneur C) opportunity entrepreneur D) classic entrepreneur E) entrepreneurial team ANSWER Answer: B Explanation: B) Necessity entrepreneurs are people who suddenly must earn a living and are trying to replace lost income.
QUESTION Big businesses are more likely to fail than small businesses. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: For reasons ranging from lack of financial support to aggressive competition, small businesses are more apt to fail than big businesses are.
