MAN 1107 CH 6 ENTRE

1.      The Small Business Administration defines a small business as a firm that:

• is independently owned but not dominant in its industry.
• has annual receipts of more than a specified amount depending upon the industry.
• has fewer than 100 partners.
• is dominant in its industry, but small in the number of workers it employs.

2.      Which one of the following is not a type of Entrepreneur:

• Typical Entrepreneurs
• Social Entrepreneurs
• Serial Entrepreneurs
• Lifestyle Entrepreneurs

3.      For an Entrepreneur, the main purpose of starting and operating a business is to:

• make a profit
• become famous
• provide jobs
• increase owner wealth

4.      Entrepreneurs are motivated to take risks by their:

• ability to raise funding to start their business.
• desire to gamble with their futures.
• confidence in their understanding of the business environment.
• knowing that they will work harder than anyone else.

5.      One of the challenges of running a home-based business is:

• managing the extra time on your hands.
• burdensome tax laws.
• an increase in business risk.
• keeping work and family tasks separate.

6.      All of the following are characteristics of a successful Entrepreneur except:

• Physical and Emotional Stamina
• Supportive Family
• Self-Starter
• Slow and Methodical in Making Decisions

7.      All of the following are fears that most Entrepreneurs have that they must overcome in order to turn their idea into reality except:

• Lack of Security
• Lack of Competition
• Lack of Ideas
• Lack of Money

8.      Most Entrepreneurs get their financing from:

• SBA Loans and Grants
• Bank Loans and Lines of Credit
• Venture Capitalists and Angel Investors
• Self-Financing and Loans from Family

9.      Which of the following statements is characteristic of entrepreneurs?

• They have the ability to visualize a clear path.
• They prefer to be inventive rather than worry about whether the invention solves a customer need.
• They like certainty.
• They look at problems and see opportunities.

10.  Which of the following is the highest cost and lowest risk option for Entrepreneurs?

• Buy a franchise.
• Take over a family business.
• Start a business from scratch.
• Buy an existing business.