Small Business Management: Launching & Growing Entrepreneurial Ventures 19th Edition by Longenecker
1. The universally accepted definition of the term small business is based on the number of people employed by the firm.
a. True
b. False
ANSWER: False
2. There is no single definition of entrepreneurship.
a. True
b. False
ANSWER: True
3. An entrepreneur who bootstraps would resort to bartering or using a personal credit card.
a. True
b. False
ANSWER: True
4. Entrepreneurs should avoid hiring mediocre people.
a. True
b. False
ANSWER: True
5. Research departments of big businesses tend to focus on innovating and creating new products.
a. True
b. False
ANSWER: False
6. Managers who buy out founders of existing firms may be classified as entrepreneurs.
a. True
b. False
ANSWER: True
7. Franchisees have limited power because they have a contract and relationship with a franchising organization.
a. True
b. False
ANSWER: True
8. An entrepreneurial team consists of the owner, the financier, and one key employee.
a. True
b. False
ANSWER: False
9. The mission of XYZ Company is to reduce landfill waste by recycling plastic containers into other useful products. XYZ Company is a social entrepreneur.
a. True
b. False
ANSWER: True
10. The starting point of any competitive advantage is having a commitment to integrity.
a. True
b. False
ANSWER: True
11. Josie's position was eliminated when the company moved its operations to another state, so she started her own business. Josie is a reluctant entrepreneur.
a. True
b. False
ANSWER: True
12. One of the richest rewards of owning a small business comes from offering goods or services that improve the lives of customers.
a. True
b. False
ANSWER: True
13. Xavier had many ideas about new products, but no one in his corporation seemed interested. So Xavier left and founded his own company to create these new products. Xavier is a corporate refugee.
a. True
b. False
ANSWER: True
14. The primary motivation for owning your own business should be to make as much money as possible.
a. True
b. False
ANSWER: False
15. Most entrepreneurs work shorter hours in their own businesses than they did when working for someone else because they have no boss to report to.
a. True
b. False
ANSWER: False
16. Self-employed individuals are less likely to create greater personal wealth than persons who work for others.
a. True
b. False
ANSWER: False
17. According to Stephen Covey, if we want to make important changes in our lives, we need to change from the inside-out.
a. True
b. False
ANSWER: True
18. The entrepreneur personality examines why a business does what it does.
a. True
b. False
ANSWER: False
19. Small businesses have a greater potential to provide good customer service than larger firms do.
a. True
b. False
ANSWER: True
20. An entrepreneurial legacy is limited to the tangible assets of the business.
a. True
b. False
ANSWER: False
21. Small enterprises hire 43 percent of all _____ employees.
a. high-tech
b. male
c. medical
d. female
ANSWER: a
22. Which of the following types of small businesses makes up the largest sector of the U.S. economy?
a. High-potential ventures
b. Gazelles
c. Lifestyle businesses
d. Attractive small firms
ANSWER: c
a. True
b. False
ANSWER: False
2. There is no single definition of entrepreneurship.
a. True
b. False
ANSWER: True
3. An entrepreneur who bootstraps would resort to bartering or using a personal credit card.
a. True
b. False
ANSWER: True
4. Entrepreneurs should avoid hiring mediocre people.
a. True
b. False
ANSWER: True
5. Research departments of big businesses tend to focus on innovating and creating new products.
a. True
b. False
ANSWER: False
6. Managers who buy out founders of existing firms may be classified as entrepreneurs.
a. True
b. False
ANSWER: True
7. Franchisees have limited power because they have a contract and relationship with a franchising organization.
a. True
b. False
ANSWER: True
8. An entrepreneurial team consists of the owner, the financier, and one key employee.
a. True
b. False
ANSWER: False
9. The mission of XYZ Company is to reduce landfill waste by recycling plastic containers into other useful products. XYZ Company is a social entrepreneur.
a. True
b. False
ANSWER: True
10. The starting point of any competitive advantage is having a commitment to integrity.
a. True
b. False
ANSWER: True
11. Josie's position was eliminated when the company moved its operations to another state, so she started her own business. Josie is a reluctant entrepreneur.
a. True
b. False
ANSWER: True
12. One of the richest rewards of owning a small business comes from offering goods or services that improve the lives of customers.
a. True
b. False
ANSWER: True
13. Xavier had many ideas about new products, but no one in his corporation seemed interested. So Xavier left and founded his own company to create these new products. Xavier is a corporate refugee.
a. True
b. False
ANSWER: True
14. The primary motivation for owning your own business should be to make as much money as possible.
a. True
b. False
ANSWER: False
15. Most entrepreneurs work shorter hours in their own businesses than they did when working for someone else because they have no boss to report to.
a. True
b. False
ANSWER: False
16. Self-employed individuals are less likely to create greater personal wealth than persons who work for others.
a. True
b. False
ANSWER: False
17. According to Stephen Covey, if we want to make important changes in our lives, we need to change from the inside-out.
a. True
b. False
ANSWER: True
18. The entrepreneur personality examines why a business does what it does.
a. True
b. False
ANSWER: False
19. Small businesses have a greater potential to provide good customer service than larger firms do.
a. True
b. False
ANSWER: True
20. An entrepreneurial legacy is limited to the tangible assets of the business.
a. True
b. False
ANSWER: False
21. Small enterprises hire 43 percent of all _____ employees.
a. high-tech
b. male
c. medical
d. female
ANSWER: a
22. Which of the following types of small businesses makes up the largest sector of the U.S. economy?
a. High-potential ventures
b. Gazelles
c. Lifestyle businesses
d. Attractive small firms
ANSWER: c