Question 1

1.

Nearly all entrepreneurs talk about three universally mentioned rewards:

flexibility, fame, and fortune.
True
False

Question 2
1.

More than 75 percent of the millionaires in the United States are entrepreneurs.
True
False

Question 3
1.

Some of the problems faced by people who are thinking about starting small
businesses are: (1) there is not enough financing to start businesses, and (2)
they must make something to make money.

True
False

Question 4
1.

In order to start a business, you need four elements to come together: boundary,
reason, idea, and exchange.
True
False

Question 5
1.

In the BRIE model, exchange refers to moving resources, products, or services

to others in exchange for money or other resources.
True
False

Question 6
1.

The BRIE model can help individuals with one of the biggest hurdles of starting a
business, which are resources.

True
False

Question 7
1.

All of the following are the popular reward types for small business owners
EXCEPT
A.

flexibility

B.

power

C.

income

D.

growth

Question 8
1.

. _____ rewards are what people get from facing and beating or learning from
challenges.
A.

Recognition

B.

Flexibility

C.

Income

D.

Growth

Question 9
1.

Which of the following is NOT a myth about small businesses?

A. There is not enough financing to start businesses.

B. You need to make something if you are going to make money.

C. You can never try again if you fail once.

D. There is no flexibility when you own your own business.

Question 10
1.

According to the BRIE model, in order to start a business, you need all of these elements to come
together EXCEPT

A.

boundary.

B.

resources.

C.

intention.

D.

experience.

Question 11
1.

A business name or government registration, a phone or e-mail address

dedicated to the business, or a specific location for the firm in a home,
commercial space, or on the Internet are examples of a(n)
A.

exchange.

B.

resource.

C.

boundary.

D.

intention.

Question 12
1.

Scenario:
Jamie Johnson and "For Kidz"
Taking classes at a local university, Jamie heard a consistent theme from many professors,
students, and parents in the community: "There is nothing for children in this rural area." Jamie
always liked children and thought of starting a business "For Kidz" targeting children 12 and
under.

Jamie should be aware that all of the following are myths about a small business
EXCEPT
A. there
B. you

is not enough financing to start businesses.

need to make something if you are going to make money.

C
.

you can never try again if you fail.

D
.

the biggest hurdle facing an individual considering a business opportunity is

inaction.

Question 13
1.

Scenario: Jamie Johnson and "For Kidz"

Taking classes at a local university, Jamie heard a consistent theme from many professors,
students, and parents in the community: "There is nothing for children in this rural area." Jamie
always liked children and thought of starting a business "For Kidz" targeting children 12 and
under.

In order to start "For Kidz" successfully, Jamie needs all of the following elements
to come together EXCEPT
A.

boundary.

B.

recruitment.

C.

intention.

D.

exchange.

Question 14
1.

Where can Jamie go to get some help with his business idea?
A.

Small Business Development Center

B.

U.S. Department of Commerce office

C.

U.S. Chamber of Commerce

D.

Small Business Administration Center

Question 15
1.

The general environment is a part of the external environment made up of those

components that the firm deals with directly such as customers, suppliers,
consultants, media, interest groups, and the like.

True
False

Question 16
1.

Often ethical dilemmas crop up in business because the answer sought by the
other person would cost your business money.
True

False

Question 17
1.

The _____ of a firm consists of those people inside the boundarythe owner,
any employees, and any other owners or board members of the firm.
A.

macroenvironment

B.

external environment

C.

operating environment

D.

internal environment

Question 18
1.

Those parts of the environment that directly and consistently touch on the firm are called the

A.

task environment.

B.

internal environment.

C.

macroenvironment.

D.

general environment.

Question 19
1.

. _____ means that a firm is worthy of consideration or doing business with because of the
impressions or opinions of customers, suppliers, investors, or competitors.

A.

Visibility

B.

Flexibility

C.

Legitimacy

D.

Modeling

Question 20
1.

Achieving _____ means building trust among customers and other key groups.

A.

modeling

B.

legitimacy

C.

visibility

D.

flexibility

Question 21
1.

The three general forms of legitimacy that you can develop are based on

A.

products, people, and organization.

B.

individuals, teams, and industry views.

C.

universalism, utilitarianism, and the Golden Rule.

D.

integration, distribution, and universalism.

Question 22
1.

According to the text, what is the most important part of social networking that would make a
difference in how you would conduct business every day?

A.

Asking for help when you need it

B.

Respecting the other person's time

C.

Respecting the other person's expertise

D.

Being willing to reciprocate if asked

Question 23
1.

Which of the following is a three-step process that helps people make better and more ethical
decisions?

A.

First principles

B.

Golden rules

C.

Ethical decision-making

D.

Mutuality development process

Question 24
1.

The first step of ethical decision-making is

A.

creating options for action.

B.

defining the moral problem.

C.

conducting ethical tests.

D.

obtaining employee approval on planning.

Question 25
1.

Which of the following is NOT a question in step one of ethical decision-making?

A.

Who will be hurt, and how badly?

B.

What do others owe you, if anything?

C.

What regulations get broken, and how badly?

D.

Who will benefit, and how much?

Question 26
1.

. _____ refers to the extent to which a firm meets or exceeds the standard business practices of
its industry.

A.

Standard operating procedure

B.

Organizational commitment

C.

Professionalization

D.

Intention

Question 27
1.

According to the text, there are three levels of professionalization. These are

A.

low, medium, and high.

B.

company, industry, and global.

C.

personal, team, and organizational.

D.

expert, specialized, and minimalized.

Question 28
1.

Which of the following relates to expert businesses?

A. The entrepreneur does nearly everything in the simplest way possible.

B. All the major functions of the firm follow standard business practices of the industry.

C. The founders are passionate about one or two of the key business functions.

D. They are satisfied if other activities are no worse than other businesses in their market.

Question 29
1.

_____ businesses have founders or owners who are passionate about one or
two of the key business functions, such as sales or operations.
A.
Expert
B.

Specialized

C.

Minimalized

D.

Global

Question 30
1.

The middle level of professionalization is called _____, where as opposed to a "best" restaurant,
there is probably a restaurant you know of with great food but so-so service.

A.

specialized

B.

minimalized

C.

expertise

D.

standard

Question 31
1.

Which of the following does NOT hold true of the minimalized level of
professionalization?
A. The

entrepreneur does nearly everything in the simplest way possible.

B. Usually,
C. Record

there is no systematic accounting.

keeping will vary between nonexistent and haphazard.

D. Inspires

the highest levels of trust among customers.

Question 32
1.

When woman or minority-owned businesses are simply excluded from the

opportunities offered to firms owned by white males, it is called the challenge of
A.
consistency.
B.

access.

C.

flexibility.

D.

mutuality.

Question 33
1.

Research suggests that the first good idea entrepreneurs come up with is always
the best.
True
False

Question 34
1.

With the many sales and service businesses built using the Internet, a low-cost,
low-risk approach for testing feasibility exists using the concept of a pilot test.
True
False

Question 35
1.

All of the following pertain to entrepreneurial alertness EXCEPT

A. entrepreneurs have a special set of observational skills.

B. entrepreneurs have thinking skills that help them identify opportunities.

C. it is the ability to notice things that have been overlooked.

D. it involves launching a formal search for opportunities.

Question 36
1.

Working for a very large organization in the tractor manufacturing industry, John always heard
complaints from customers about the parts and service aspect of the business. Taking an early
retirement, John started his small business to address the customer complaints he had been
hearing. Which of the following best describes the factor that led John to this business idea?

A.

A similar business

B.

Chance

C.

Work experience

D.

Family and friends

Question 37
1.

"S" in the creativity tool SCAMPER stands for

A.

strategize.

B.

substitute.

C.

submit.

D.

solicit.

Question 38
1.

Which of the following is an idea trigger for the "substitute" cue in SCAMPER?

A.

What opportunities can you think of that come as a result of replacing something that
already exists?

B.

What separate products, services, or whole businesses can you put together to create
another distinct business?

C
.

D
.

What could you adapt from other industries or fields to your business?

What could I make more noticeable or dramatic, or different in some way from my
competitors?

Question 39
1.

When a bookstore starts to sell videos, music, and coffee as well, they are using which element
of SCAMPER?

A.

Rearrange

B.

Eliminate

C.

Combine

D.

Substitute

Question 40
1.

"What if people didn't have to leave their houses to go grocery shopping?" refers to which cue?

A.

Minimize

B.

Reverse

C.

Eliminate

D.

Substitute