Small Business Management: Launching & Growing Entrepreneurial Ventures 19th Edition by Longenecker

 d. Tolerance of risk
 
ANSWER:  a
 
37. Which of the following is an almost certain way to fail as an entrepreneur?
 a. Overestimate what you can do.
 b. Tolerate uncertainty.
 c. Share ownership in the business in an equitable way.
 d. Focus on a niche market.
 
ANSWER:  a
 
38. Henry is well respected by his employees. He has the ability to self-motivate and team-build with a focus on honesty in business relationships. What attribute does Henry display?
 a. Determination
 b. Leadership abilities
 c. Tolerance of risk
 d. Motivation to excel
 
ANSWER:  b
 
39. Isabella overheard her customers discussing their desire for more baked treats suitable for diabetics. Immediately, she added sugar-free items to her inventory. Isabella has strong
 a. creativity.
 b. leadership abilities.
 c. opportunity obsession.
 d. tolerance of risk.
 
ANSWER:  c
 
40. Jasper is so convinced he will succeed that he has mortgaged his home, maxed out his credit cards, and borrowed from his retirement savings to finance his business. Jasper is high in
 a. commitment.
 b. leadership abilities.
 c. creativity.
 d. tolerance of risk.
 
ANSWER:  d
 
41. Kevin developed a clever marketing campaign that increased his sales by 48%. Kevin is high in
 a. commitment.
 b. leadership abilities.
 c. creativity.
 d. tolerance of risk.
 
ANSWER:  c
 
42. Lance has set for his business the goal of increasing revenues by 20% and profits by 15% by the end of the year. Lance is likely high in
 a. tolerance of risk.
 b. opportunity obsession.
 c. leadership abilities.
 d. motivation to excel.
 
ANSWER:  d
 
43. Martina expected to build her direct sales business to the point that she could quit her day job after six months. Five months later, she barely has any customers. Martina
 a. has overestimated what she can do.
 b. knows her market well.
 c. is a domineering manager.
 d. should take on a partner.
 
ANSWER:  a
 
44. Natalie enjoyed yarn crafts so she opened a yarn and craft store in her small town. Sales have been dismal; few people visit her store. Which of the following mistakes did Natalie make?
 a. She overestimated what she could do.
 b. She lacked an understanding of the market.
 c. She hired mediocre people.
 d. She failed to share ownership in the business in an equitable way.
 
ANSWER:  b
 
45. Oscar wants everything in his restaurant to be perfect so he points out every little mistake his servers make. He has high turnover among his staff. Which of the following best explains why?
 a. Oscar is a domineering manager.
 b. Oscar is not a team player.
 c. Oscar lacks tolerance of risk.
 d. Oscar lacks an understanding of his market.
 
ANSWER:  a
 
46. Which of the following is the foundation of all relationships, including those in business?
 a. Trust
 b. Tolerance
 c. Quality performance
 d. Acceptance
 
ANSWER:  a
 
47. An entrepreneur's success generally arises from all of the following EXCEPT
 a. having a desire to lead.
 b. having a clear mission.
 c. discounting ideas from others to improve products.
 d. recognizing that business success requires hard work and long hours.
 
ANSWER:  c
 
48. Raold operates a fast-food restaurant. He is under contract to the organization under whose name he does business. The contract limits what Raold can do with his business. Raold is a
 a. franchisor.
 b. franchisee.
 c. contract employee.
 d. partner in a limited liability company (LLC).
 
ANSWER:  b
 
49. Bill Gates and Steve Ballmer, founders of Microsoft, would be considered
 a. franchisors.
 b. franchisees.
 c. an entrepreneurial team.
 d. sole proprietors.