Entrepreneurship I (Unit 1)

What is a trend that affects the growth of entrepreneurial ventures?

•  A rise in consumers' desire for slow-response times
• The shift to an agricultural-based society 
• A higher demand for more convenience products
• The reduced need for health care and related services

What is one of the main reasons why small businesses are strongly promoted and supported by local government?

•  They serve only their local communities. 
• They are owned by one person. 
•  They may become a big business. 
•  They are important to the economy.

Home-based businesses are attractive to many people because the businesses generally

• yield higher profit margins. 
•  provide owners a steady income. 
•  have lower start-up costs. 
•  require less technical training.

Successful entrepreneurs enjoy their work and often start their businesses so that they can share their interests and enthusiasm with others. In other words, successful entrepreneurs have __________ what they do. 

•  reservations about
•  concerns about 
•  apathy for
•  passion for

Which of the following statements is true about entrepreneurship and small business growth:

•  Trade regulations have very little effect on small-business growth.
•  Many people start entrepreneurial ventures during times of economic recession. 
•  Small business start-ups are taxed at a higher rate than multinational companies.
•  Consumer spending is a primary factor that influences entrepreneurial success.

What is a disadvantage of entrepreneurship?

• Fewer resources
• Personal satisfaction 
•  Lower taxes
•  Uncertain income

Entrepreneurs often discover business start-up ideas by looking for gaps between what is currently being done and

•  how things are being done. 
•  what was done in the past.
•  when changes were last made.
•  what needs to be done.

What behavior is exhibited when an individual recognizes the possibility of an undesirable outcome and continues to work toward a goal?

• Creativity
• Self-discipline
• Risk taking
• Flexibility

Governments can encourage entrepreneurial development by

• increasing interest rates on loans. 
• deregulating and reducing taxes. 
• establishing higher ethical standards. 
• passing more legislation with strict guidelines.

Which of the following statements is most likely to have a negative effect on domestic small-business growth: 

• Involuntary tax reductions
• Restrictive loan policies
•  Low interest rates
• Slow inflation