Question 1 

 Some entrepreneurs do not find creative ways to obtain equity financing.

Answer 

True

False 

Question 2 

 The freedom to make all the decisions—being your own boss—is one of the biggest lures of entrepreneurship.

Answer 

True

False 

Question 3 

 Growth in entrepreneurship is not a worldwide phenomenon.

Answer 

True

False 

Question 4 

 Bill Gates and Paul Allen launched ________ with the vision of a computer on every desk and in every home, all running software.

Answer 

Apple

Google

Yahoo

Microsoft 

Question 5 

 Dealing with unexpected events is not the norm for most entrepreneurs.

Answer 

True

False 

Question 7 

 ________ has further transformed the business environment for entrepreneurs.

Answer 

Project management

Social networking

Commercials

Entrepreneurship 

Question 8 

 An ________ is a risk taker in the private enterprise system, a person who seeks a profitable opportunity and takes the necessary risks to set up and operate a business.

Answer 

Consumer

Entrepreneur

Executive

Employee 

Question 9 

 Growth in entrepreneurship is not a worldwide phenomenon.

Answer 

True

False 

Question 10 

 Even entrepreneurs who have not previously received funding from banks have experienced a credit crunch in recent years.

Answer 

True

False 

Question 11 

 To secure ________, entrepreneurs exchange a share of ownership in their company for money supplied by one or more investors.

Answer 

Equity financing

Quality financing

Open financing

Closed financing 

Question 12 

 ________ are wealthy individuals who invest money directly in new ventures in exchange for equity, are a larger source of investment capital for start-up firms.

Answer 

Logical investors

Angel investors

Small investors

Cooperative investors 

Question 13 

 The following can be classified as the different types of entrepreneurs, except:

Answer 

Class entrepreneurs 

Serial entrepreneurs 

Social  entrepreneurs 

Basic entrepreneurs 

Question 14 

 ________ are employees who direct the efforts of others to achieve an organization’s goals.

Answer 

Customers

Managers

Owners

Partnerships

Question 15 

 Demographic trends—including the aging of the U.S. population, the growth of ethnic groups, and the predominance of two-income families—create opportunities for entrepreneurs.

Answer 

True

False 

Question 16 

 A ________ project is initiated by an employee who conceives an idea, convinces top management of its potential, and then recruits human and other resources from within the company to turn the idea into a commercial project.

Answer 

Skunkworks

Cooperative

Open market

Innovation 

Question 17 

 ________ seems to be the key to business start-ups, especially in rapidly changing markets.

Answer 

Competitiveness

Flexibility

Financing

Capital 

Question 18 

 Entrepreneurs have an internal locus of control, which means they believe that they control their own destinies.

Answer 

True

False 

Question 19 

 Many Boomers also plan to work after retirement from traditional jobs or careers, either because they want to or in order to boost income and savings.

Answer 

True

False 

Question 20 

 Like buying an established business, buying a franchise offers a less risky way to begin a business than starting an entirely new firm.

Answer 

True

False