Sbm Test One
Chapter 1—The Entrepreneurial Life
TRUE/FALSE
1. An entrepreneurial career can provide an exciting life and substantial personal rewards while also contributing to the welfare of society.
ANS: T PTS: 1 REF: p. 4 OBJ: 1-1 TYPE: C
2. Winning a table decoration competition was the precipitating event for launching Table Occasions.
ANS: T PTS: 1 REF: p. 7 OBJ: 1-2 TYPE: A
3. Although Life is Good owners John and Bert Jacobs’ line of merchandise is related to leisure pursuits, they cannot partake of them because of the constraints of their fast-growing business.
ANS: F PTS: 1 REF: p. 8 OBJ: 1-2 TYPE: A
4. Chris Mittelsdaedt states that “a healthy dose of worst-case-scenario thinking” helps his business succeed.
ANS: T PTS: 1 REF: p. 9 OBJ: 1-2 TYPE: C
5. The term entrepreneur is understood in this text to refer only to founders of small businesses.
ANS: F
According to the text, entrepreneur refers to founders, franchisees, second-generation members of family-owned firms, and owner-managers who buy out the founders of existing firms.
PTS: 1 REF: p. 4 OBJ: 1-1 TYPE: D
6. Researchers at Case Western Reserve University found a strong connection between entrepreneurship and a cavalier, happy-go-lucky attitude toward life and business.
ANS: F
The researchers found a connection between entrepreneurs and genetics.
PTS: 1 REF: p. 9 OBJ: 1-2 TYPE: C
7. An owner-manager is a person who founds a new business.
ANS: F
An owner-manager may be an individual who bought out the founder(s) of an existing firm (or later owners) and thus is not necessarily the one who started the firm.
PTS: 1 REF: p. 14 OBJ: 1-4 TYPE: D
8. According to the definition of entrepreneur given in Chapter 1, owner-managers who buy out founders of existing firms may be classified as entrepreneurs.
ANS: T PTS: 1 REF: p. 4 OBJ: 1-1 TYPE: D
9. The universally accepted definition of the term small business is based on the number of people
TRUE/FALSE
1. An entrepreneurial career can provide an exciting life and substantial personal rewards while also contributing to the welfare of society.
ANS: T PTS: 1 REF: p. 4 OBJ: 1-1 TYPE: C
2. Winning a table decoration competition was the precipitating event for launching Table Occasions.
ANS: T PTS: 1 REF: p. 7 OBJ: 1-2 TYPE: A
3. Although Life is Good owners John and Bert Jacobs’ line of merchandise is related to leisure pursuits, they cannot partake of them because of the constraints of their fast-growing business.
ANS: F PTS: 1 REF: p. 8 OBJ: 1-2 TYPE: A
4. Chris Mittelsdaedt states that “a healthy dose of worst-case-scenario thinking” helps his business succeed.
ANS: T PTS: 1 REF: p. 9 OBJ: 1-2 TYPE: C
5. The term entrepreneur is understood in this text to refer only to founders of small businesses.
ANS: F
According to the text, entrepreneur refers to founders, franchisees, second-generation members of family-owned firms, and owner-managers who buy out the founders of existing firms.
PTS: 1 REF: p. 4 OBJ: 1-1 TYPE: D
6. Researchers at Case Western Reserve University found a strong connection between entrepreneurship and a cavalier, happy-go-lucky attitude toward life and business.
ANS: F
The researchers found a connection between entrepreneurs and genetics.
PTS: 1 REF: p. 9 OBJ: 1-2 TYPE: C
7. An owner-manager is a person who founds a new business.
ANS: F
An owner-manager may be an individual who bought out the founder(s) of an existing firm (or later owners) and thus is not necessarily the one who started the firm.
PTS: 1 REF: p. 14 OBJ: 1-4 TYPE: D
8. According to the definition of entrepreneur given in Chapter 1, owner-managers who buy out founders of existing firms may be classified as entrepreneurs.
ANS: T PTS: 1 REF: p. 4 OBJ: 1-1 TYPE: D
9. The universally accepted definition of the term small business is based on the number of people