Chapter 6 Unit Test - Entrepreneurship

After starting a web design company while still in college, Ricardo sold the company after graduation. He then opened a computer repair shop; and most recently, he has started a marketing firm that specializes in social media. Ricardo is an example of a(n):

• serial entrepreneur.

• social entrepreneur.

• lifestyle entrepreneur.

• classic entrepreneur.

An entrepreneur:

• is a risk taker in the private enterprise system.

• is a gambler in the private enterprise system.

• does not tolerate ambiguity.

• does not tolerate failures.

Harold is opening his own bakery. Harold is most likely to be categorized as a(n)

• manager

• entrepreneur

• angel broker

• venture capitalist

The primary reasons people become entrepreneurs include all of the following reasons EXCEPT:

• to be one’s own boss.

• to achieve financial success.

• to avoid taking risks.

• to create one’s own job security.

Who is most likely to succeed as an entrepreneur?

• Someone who is scared of failures.

• Someone who hates to take a risk.

• Someone who blames others for failures.

• Someone who is driven by the need to excel.

Sam is opening a home health care business that he knows will do well in his community. He makes this assumption based on prior research. Although he must repay borrowed funds, Sam chooses _____ to maintain complete control over the business without having to answer to investors or partners.

• debt financing

• funding from venture capitalists

• funding from angel investors

• equity financing

Business organizations or groups of private individuals who invest in early-stage, high-potential growth companies are _______

• Share Brokers

• Intrapreneurs

• Venture Capitalist

• Franchisee

Unlike small-business owners, one of the major goals of entrepreneurs is:

• the desire to succeed.

• to possess creative energy.

• expansion and growth.

• to seek a profitable opportunity.

Stephen is the CEO of a not-for-profit organization. He runs the organization to provide quality education for the underprivileged children. Stephen is most likely to be categorized as a:

• serial entrepreneur.

• social entrepreneur.

• lifestyle entrepreneur.

• classic entrepreneur.

Concerning education and entrepreneurs, all of the following statements are correct EXCEPT:

• today, many U.S. universities offer full-fledged majors in entrepreneurship.

• a number of schools offer opportunities to intern with a start-up.

• one has to major in business to become an entrepreneur.

• some colleges and universities offer entrepreneurship courses outside the usual business curriculum.