Question 1

External locus of control is a deep-seated sense that the individual is personally responsible for what happens in his or her life.

Accepted Answer

False

Question 2

The U.S Small Business Administration (SBA) microloan program lends an average of $50,000 to start-up businesses through community nonprofit organizations.

Accepted Answer

False

Question 3

Mauve starts a business that specializes in procuring and selling antique items. Her business caters specifically to individuals who have high-income jobs and who like collecting unique artifacts. Mauve does not have much competition and can decide the prices of her products without any external influence. The opportunity of _____ is highlighted in the given scenario.

Accepted Answer

B

Question 4

The U.S. Small Business Administration (SBA) gives free money to start-up businesses, grants interest-free loans, and fully guarantees loans from local commercial lenders.

Accepted Answer

The answer of The U.S. Small Business Administration (SBA) gives...

Question 5

James is always keen on putting his ideas into action regardless of the outcome. He perfects his craft by trying out different possibilities. If he is dissatisfied with the result, he tries out a different method but does not give up. Which entrepreneurial characteristic is highlighted in the given scenario?

Accepted Answer

The answer of James is always keen on putting his...

Question 6

In the event that a large company has to downsize, the middle-aged workers who are laid off find it difficult to find new jobs. When such workers decide to start their own businesses, they:

Accepted Answer

The answer of In the event that a large company...

Question 7

People with an external locus of control:

Accepted Answer

The answer of People with an external locus of control:
...

Question 8

The primary reason people choose to become entrepreneurs is to:

Accepted Answer

The answer of The primary reason people choose to become...

Question 9

Felix lost his job at an investment firm because of downsizing during a period of recession. To keep himself financially stable, he opened a food truck that became a huge success. Which of the following advantages of entrepreneurship initially motivated Felix to start the food truck?

Accepted Answer

The answer of Felix lost his job at an investment...

Question 10

For entrepreneurs, there is no correlation between dollars earned and hours worked.

Accepted Answer

The answer of For entrepreneurs, there is no correlation between...

Question 11

Xavi develops a cell phone battery that can be charged by a solar panel and can run efficiently for up to three hours. His friends point out that it would be difficult to get cell phone manufacturers to adopt this new technology and that it could take a long time for people to start relying on it. However, Xavi is convinced that he can make his idea popular and successful. He plans to start a new company called EnerMob Inc. that would promote and sell the cell phone battery to the public. In this scenario, which of the following entrepreneurial characteristics is Xavi demonstrating?

Accepted Answer

The answer of Xavi develops a cell phone battery that...

Question 12

Jenifer owns a bakery that specializes in preparing extravagant wedding cakes. She is a sought-after baker because of the quality and finesse of her products. Jenifer believes that the pressure of living up to the expectations of her customers and delivering quality products always keeps her on the edge and helps her to deliver her best. Which of the following advantages of entrepreneurship is highlighted in the given scenario?

Accepted Answer

The answer of Jenifer owns a bakery that specializes in...

Question 13

Ted's new company is experiencing a steady decline in profit. He needs external financing to prevent his company's profits from declining further. Considering the fact that he wants to exercise sole ownership and control over the firm for as long as possible, Ted is likely to find angel investors who are interested in helping him meet his financial needs.

Accepted Answer

The answer of Ted's new company is experiencing a steady...

Question 14

__________are local offices-affiliated with the U.S Small Business Administration-that provide comprehensive management assistance to current and prospective small business owners.

Accepted Answer

The answer of __________are local offices-affiliated with the U.S Small...

Question 15

Dominic feels that an incredible string of bad luck has affected his personal life. He also feels that his boss is subjecting him to unfair treatment at work for no fault of his. Dominic's perceptions suggest that he has an internal locus of control.

Accepted Answer

The answer of Dominic feels that an incredible string of...

Question 16

Which of the following statements is true of necessity entrepreneurship in high-income countries?

Accepted Answer

The answer of Which of the following statements is true...

Question 17

Rudy owns a small metal fabrication business that employs 23 workers. As the owner of a small business, one of the major advantages that Rudy enjoys while competing with larger firms is reduced burden of complying with government regulations.

Accepted Answer

The answer of Rudy owns a small metal fabrication business...

Question 18

Loren LLC is a small bicycle store that competes effectively with much larger companies as its focus lies exclusively on selling bicycles for senior citizens and patients with orthopedic ailments. The company has been successful as it has:

Accepted Answer

The answer of Loren LLC is a small bicycle store...

Question 19

The Global Entrepreneurship Monitor (GEM) shows that people living in high-income countries tend to be much more willing to start their own businesses than people living low-income countries.

Accepted Answer

The answer of The Global Entrepreneurship Monitor (GEM) shows that...

Question 20

Small businesses often have an advantage in foreign markets where customers want to deal directly with a company's top management.

Accepted Answer

The answer of Small businesses often have an advantage in...

Quiz 7: Small Business and Entrepreneurship: Economic Rocket Fuel