Chapter 1 - The Entrepreneurial Life

Question 1

Small Businesses have fewer than ____ employees

Answer 1

100

Question 2

Small Businesses have _____ than 100 employees

Answer 2

fewer

Question 3

Operations of small businesses are geographically __________

Answer 3

localized

Question 4

Financing in a small business is provided by

Answer 4

no more than a few individuals

Question 5

The business may begin with a single individual but has the

Answer 5

potential to grow

Question 6

The standards of a small business

Answer 6

Fewer than 100 employees
Operations are geographically localized
Financing is provided by no more than a few individuals
Must have the potential to grow

Question 7

A small firm that has great prospects for growth

Answer 7

High potential ventures

Gazelles

Question 8

Offer substantial financial rewards for their owners

Answer 8

Attractive small firms

Question 9

Represent a major segment of small businesses

Answer 9

Attractive small firms

Question 10

Solid, healthy firms that ca provide rewarding careers and create financial wealth for the owners

Answer 10

Attractive small firms

Question 11

Least profitable type of small business

Answer 11

Microbusinesses

Question 12

Includes many service companies

Answer 12

Microbusinesses

Question 13

Provides modest return to their owners

Answer 13

Microbusinesses

Question 14

Limited ability to generate significant profits

Answer 14

Microbusinesses

Question 15

Permit an owner to follow a desired lifestyle

Answer 15

Lifestyle businesses

Question 16

Provide only a modest return to owners

Answer 16

Lifestyle businesses

Question 17

Fewer than 10 employees

Answer 17

Lifestyle businesses

Question 18

Make up the largest sector of the economy

Answer 18

Lifestyle businesses

Question 19

Very small loans, often provided to entrepreneurs in developing countries

Answer 19

Microloans

Question 20

This begins with identifying an attractive entrepreneurial opportunity

Answer 20

The Entrepreneurial process

Question 21

The entrepreneurial process begins with this

Answer 21

Identifying an attractive entrepreneurial opportunity

Question 22

An economically attractive and timely opportunity that creates value both for prospective customers and for the firms owner

Answer 22

Entrepreneurial Opportunity

Question 23

A person who relentlessly pursues an opportunity in either a new or existing enterprise, to create value while assuming both the risk and the reward for his or her efforts

Answer 23

Entrepreneur

Question 24

Favorable Qualities of an Entrepreneur

Answer 24

Commitment and Determination
Leadership
Opportunity Obsession
Tolerance of risk, ambiguity, and uncertainty
Creativity, self-reliance, adaptability
Motivation to excel

Question 25

Unfavorable Qualities of an Entrepreneur

Answer 25

``` Overestimate what you can do Lack an understanding of the market Hire mediocre people Fail to be a team player Be a domineering manager Fail to share ownership in the business in an equitable way ```

Question 26

The future belongs to

Answer 26

humble leaders

Question 27

An entrepreneur who brings a new firm into existence

Answer 27

Founder

Question 28

An entrepreneur whose power is limited by a contractual relationship with a franchising organization

Answer 28

Franchisee

Question 29

Consists of two or more individuals who combine their efforts to function in the capacity of entrepreneurs

Answer 29

Entrepreneurial teams

Question 30

Businesses are expected to help solve social problems related to

Answer 30

education, crime, poverty, and the environment

Question 31

Entrepreneurial activity whose goal is to find innovative solutions to social needs, problems, and opportunities

Answer 31

Social Entrepreneurship

Question 32

Triple Bottom Line

Answer 32

People Profits Planet

Question 33

A knowledgeable person who can offer guidance based on experience in a given field

Answer 33

Mentor

Question 34

A person who becomes an entrepreneur as a result of some severe hardship

Answer 34

Reluctant Entrepreneurs

Question 35

A person who become an entrepreneur to escape an undesirable job situation

Answer 35

Corporate Refugee

Question 36

Types of Entrepreneurial Motivation

Answer 36

Personal Fulfillment Personal Satisfaction Independence Financial Rewards

Question 37

A change in how we fundamentally see a situation

Answer 37

Paradigm Shift

Question 38

Three different kinds of Personalities

Answer 38

Technician Personality Manager Personality Entrepreneur Personality

Question 39

Steady Worker Experienced at what they do best Wants to be left alone to get the job done Lives in the moment Paternalistic Reluctant to delegate authority Defining marketing strategy in terms of price, quality, and company reputation Focusing on sales efforts that are primarily personal Short term oriented with little planning for future growth

Answer 39

The Technician Personality

Question 40

Pragmatic Assumes responsibility for the planning, order, and predictability of the business Avoids paternalism Delegates authority as necessary for growth Employ diverse marketing strategy Use different types of sales efforts Obtain original financing from more than two sources

Answer 40

Manager Personality

Question 41

Takes an idea and turns it into an opportunity Examines how the business does what it is intended to do Sees the big picture and develops strategies that will help the venture flourish See the business as a system for producing outside results Start with a picture of a well-defined future and attempt to change Develop strategies for the business by first seeing the whole picture

Answer 41

Entrepreneur Personality

Question 42

Business opportunities exist for those who can produce

Answer 42

Products and services desired by customers

Question 43

Who has a greater potential to achieve good customer service

Answer 43

Small businesses

Question 44

Quality is mostly independent of

Answer 44

firm size

Question 45

Add a solid reputation for

Answer 45

honesty and dependability to good customer service and excellent product quality

Question 46

This is the foundation of all relationship

Answer 46

Trust

Question 47

Small firms patents outperform these of larger firms

Answer 47

Growth Citation Originality

Question 48

A specific group of customers with an identifiable by narrow range of product or service interests

Answer 48

Niche Market

Question 49

Things passed on or left behind

Answer 49

Legacy

Question 50

Tangible items and intangible qualities passed on not only to heirs but to the broader society

Answer 50

Entrepreneurial Legacy

Question 51

Business accomplishments may be overshadowed by

Answer 51

neglect or sacrifice of something more important to them

Question 52

Fulfillment requires that businesses have been constructive or

Answer 52

positive in impact