Entrepreneurship: The Practice and Mindset 1st Edition by Heidi M. Neck Test bank

a. cultural and social norms
b. physical infrastructure
c. entry regulation
d. commercial and legal infrastructure
Ans: A
Learning Objective: 1.5. Illustrate the global diversity of entrepreneurship and its impact.
Cognitive Domain: Comprehension
Answer Location: What Makes a Country Entrepreneurial
Difficulty Level: Medium
AACSB Standard: Contexts of organizations in a global society
 
75. Bill continues to be downsized from his employers but has good work ethics and strong marketable skills. He decides to start his own business. What type of entrepreneur is he?
a. necessity-based entrepreneur
b. nascent entrepreneur
c. established business owner
d. potential entrepreneur
Ans: A
Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today.
Cognitive Domain: Application
Answer Location: Global Entrepreneurship
Difficulty Level: Medium
AACSB Standard: Application of knowledge
 
76. Sam is tired of seeing the injustice and mistreatment of children in the inner cities and has an innovative idea to help them and help develop the self-esteem needed to succeed as adults. Sam is an example of a ______.
a. social entrepreneur
b. potential entrepreneur
c. nascent entrepreneur
d. benefit entrepreneur
Ans: A
Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today.
Cognitive Domain: Application
Answer Location: Glossary
Difficulty Level: Medium
AACSB Standard: Application of knowledge
 
 
77. Cecilia has a business that is very new, less than three months, and she has not been able to pay herself a wage or salary. At this stage, she is a ______.
a. nascent entrepreneur
b. hopeful business owner
c. person seeking advice from the Small Business Administration
d. person seeking a business loan
Ans: A
Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today.
Cognitive Domain: Application
Answer Location: Global Entrepreneurship
Difficulty Level: Medium
AACSB Standard: Application of knowledge
 
78. Sources of funding of small amounts, for a very short time,  available in developing countries are called ______.
a. charitable contributions
b. business loans
c. microloans
d. miniloans
Ans: C
Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today.
Cognitive Domain: Application
Answer Location: Entrepreneurship Requires Action and Practice
Difficulty Level: Medium
AACSB Standard: Application of knowledge
 
79. Robert has a business that he wants to pass down to others in his family to run. Robert has ______.
a. an entrepreneurship
b. a family enterprise
c. a role as a an entrepreneur inside
d. interest in a benefit corporation
Ans: B
Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today.
Cognitive Domain: Application
Answer Location: Family Enterprising
Difficulty Level: Medium
AACSB Standard: Application of knowledge
 
80. Michael is a franchise restaurant owner. He has which of the following costs?  
a. franchise fee to start plus a monthly royalty as a percentage of sales, plus other operational costs
b. a royalty to the franchisor calculated as a percentage of income plus other operational costs
c. his costs are the same as any other restaurant owner
d. his costs equal his sales, that is, the matching principle from accounting
Ans: A
Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today.
Cognitive Domain: Application
Answer Location: Buying a Franchise
Difficulty Level: Medium
AACSB Standard: Application of knowledge
 
 

True/False
 

1. Social entrepreneurship is reflected in the percentage of the population of each country between 18 and 64 who are either a nascent entrepreneur or an owner-manager of a new business.
Ans: F
Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today.
Cognitive Domain: Knowledge
Answer Location:  Social Entrepreneurship
Difficulty Level: Medium
AACSB Standard: Analytical thinking
                                               
2. Franchise is a type of license purchased by a franchisee from a franchisor to allow them to trade under the name of that business.