Test bank 1 part 2

According to the textbook, there are three types of startup firms: ________.

• lifestyle firms, general firms, and entrepreneurial firms

• standard-of-living firms, statutory firms, and general firms

• entrepreneurial firms, standard-of-living firms, and statutory firms

• lifestyle firms, salary-substitute firms, and entrepreneurial firms

• innovative firms, entrepreneurial firms, and standard firms

Colorado Sandwich, Soup and Salad is a casual dining restaurant that has been owned by
Stephanie Peterson for the past 14 years. The restaurant offers a menu that is typical for casual
dining restaurants and affords Stephanie a level of income that is similar to what she would earn
in a conventional job. According to the textbook, Colorado Sandwich, Soup and Salad is an
example of a(n) ________ firm.

• salary-substitute

• entrepreneurial

• quality-of-life

• lifestyle

• industry-standard

Montana Sky Trails leads multiday outdoor adventure trips for private groups and corporate
clients to various locations across Montana. The company was started by Justin Smith, an
individual that gave up a prestigious job in banking because Montana Sky Trails better
accommodates his personal lifestyle. Montana Sky Trails is an example of a(n) ________ firm.

• entrepreneurial

• salary-substitute

• standard-of-living

• statutory

• lifestyle

Entrepreneurial firms ________.

• are small firms that yield a level of income for their owner(s) that is similar to what they would earn when working for an employer

• bring to market new products and services that are not particularly innovative

• offer to customers common products that are not particularly innovative, and provide their owner(s) the opportunity to pursue a particular lifestyle and earn a living while doing so

• provide their owner(s) the opportunity to pursue a particular lifestyle and earn a living while doing so

• bring new products and services to market by creating and seizing opportunities

According to the textbook, Dropbox, Facebook, and Uber are examples of ________ firms.

• lifestyle

• salary-substitute

• industry-standard

• entrepreneurial

• standard-of-living

According to the feature, which of the following is NOT a characteristic that such programs typically look for in student hires?

• Have upbeat personalities

• Are effective communicators

• Have a wide network of friends

• Have effective marketing skills

• Have in-depth knowledge and love for the product

In terms of the 'types' of startup firms, entrepreneurial firms bring new products and services to market.

• TRUE

• FALSE

Identify the three types of startup firms, and discuss how they differ. Provide examples of each type of firm.

Which of the following statements is NOT true about women-owned businesses in the United States?

• The number of women-owned businesses is decreasing.

• A total of 44 percent of women-owned businesses are owned by minorities.

• In some industries, women own a significant share of the business.

• The number of groups that support and advocate for women-owned businesses continues to increase.

• Over the past nine years, the number of women-owned businesses has grown at a rate five times faster than the national average.

There has been ________ in the number of minority entrepreneurs in the United States over the past several years.

• a moderate increase

• a substantial decrease

• no meaningful change

• a substantial increase

• a moderate decrease