Chapter 1 Review

An entrepreneur is someone

• Who has an idea for a business.

• Who starts a business.

• Who works for him or herself and has no employees.

• Who has started a company and has 3 employees.

Entrepreneurs are people who

• Want to take control of a situation.

• Are not willing to take advice from other people.

• Are only thinking of their own welfare.

• Are willing to work all hours to please a client.

All entrepreneurs want to grow their businesses into large companies.

(a)  

• True
• False

The Small Business Administration (SBA) considers a small business to be a company with

• Fewer than 10 employees.

• Less than 100 employees.

• 100 or more employees.

• Any number of employees.

Getting a steady paycheck and working a set number of hours a week is a benefit of being

• An employee.

• An entrepreneur.

• Both employees and entrepreneurs.

• Neither employees nor entrepreneurs.

Entrepreneurs start one company and stay with it their entire working career.

• True

• False

Generally, entrepreneurs are willing to take risks

• In almost every situation, no matter what the cost.

• In situations where the reward outweighs the risk.

• Rarely or only when the business is faced with disaster.

• Never.

Entrepreneurs can start businesses in almost any type of industry and provide either services, products, or both.

• True

• False

There are a number of rewards associated with being an entrepreneur. Which of the following is most important?

• Financial security.

• Not having to make the rules or take responsibility.

• Doing something you love.

• Working as much or as little as you want to in order to make a living.

For long-term success, entrepreneurs should

• Pay attention to new technology and take advantage of it, if possible.

• Be aware of what's going on in the world in terms of social, business, political, and environmental trends

• Pick a business that they enjoy.

• Have strict rules on what can and cannot be done.