.png){kind=logo}
1 Copyright © 2015 Pearson Education, Inc.Entrepreneurship and Small Business Management, 2e (Mariotti) Chapter 1 Entrepreneurs Recognize Opportunities
1) Based on the idea of cost and benefits, which of the following activities is most beneficial?
- Playing video games
- Watching a PBS special about nature
- Seeing a speaker you admire and want to mentor you
- Going to a movie with your favorite actor/actress
- Hanging out with friends
Answer: C
Page Ref: 10
Learning Obj.: LO 2
AACSB: Analytical thinking
2) Which of the following could be considered an acquisition?
- Inheriting your father's business
- Building a new restaurant
- Inventing a new product and selling it
- Starting a recycling business
- Buying a business from a retiring owner
Answer: E
Page Ref: 20
Learning Obj.: LO 3
AACSB: Application of knowledge
3) Which is not part of Schumpeter's definition regarding the ways that entrepreneurs find opportunities to create new businesses?
- Use a new technology to produce a new product
- Use an existing technology to produce a new product
- Use an existing technology to produce an old product in a new way
- Find a new source of resources
- Find a new market for a new product
Answer: E
Page Ref: 15
Learning Obj.: LO 3
AACSB: Analytical thinking
4) Which of the following could not be considered opportunity costs?
- Time
- Energy
- Money
- Entertainment
- All of the above can be considered opportunity costs.
Answer: D
Page Ref: 11
Learning Obj.: LO 2
AACSB: Analytical thinking
(Test Bank all Chapters) 1 / 4
2 Copyright © 2015 Pearson Education, Inc.5) A(n) ________ is a legal and commercial relationship between the owner of a trademark, service mark, trade name or advertising symbol and an individual or group seeking to use that identification in a business.
- Franchise
- License
- Acquisition
- Merger
- Opportunity
Answer: A
Page Ref: 20
Learning Obj.: LO 3
AACSB: Application of knowledge
6) Gregory Dee's definition of social entrepreneurship states, "Social entrepreneurs play the role of change agents in the social sector by ________."
- Adopting a mission to create and sustain social value
- Serving a higher power
- Not being concerned with profit or sustainability
- Avoiding competition
- Being concerned with mother earth
Answer: A
Page Ref: 13
Learning Obj.: LO 2
AACSB: Analytical thinking
7) How does the public reward entrepreneurs who use resources efficiently to satisfy consumer needs?
- With profit
- With awards
- With praise
- With applause
- With a pat on the back
Answer: A
Page Ref: 23
Learning Obj.: LO 4
AACSB: Reflective thinking
8) Which of the following is not an economic question listed in the text?
- What should be produced?
- How much will it cost to be produced?
- When will it be produced?
- Who will produce it?
- Who gets to have what is produced?
Answer: B
Page Ref: 4
Learning Obj.: LO 1
AACSB: Analytical thinking 2 / 4
3 Copyright © 2015 Pearson Education, Inc.9) The text defines profit as ________.
- A positive gain from operations after all expenses are subtracted
- A positive gain from operations before all expenses are subtracted
- A positive gain from operations after fixed expenses are subtracted
- A negative loss from operations after all expenses are subtracted
- None of the above
Answer: A
Page Ref: 23
Learning Obj.: LO 3
AACSB: Application of knowledge
10) Entrepreneurship options include ________.
- Opportunities that are virtually limitless
- For-profit ventures only
- Not-for-profit organizations only
- Only green business options
- Only new technology and inventions
Answer: A
Page Ref: 13
Learning Obj.: LO 2
AACSB: Analytical thinking
11) Which of the following represents a "change" associated with the "five roots of opportunity" explored in the text?
- The invention of the cell phone
- Expanded completion within an industry
- The entry of a new competitor
- Development of the technology for social networking
- The green movement and society's new concern with recycling
Answer: E
Page Ref: 18
Learning Obj.: LO 3
AACSB: Analytical thinking
12) Which of the following is not a way to identify business opportunity as discussed in the text?
- Exploiting changes in the world
- Seeing opportunity where others see problems
- Training your mind to recognize opportunity
- Using your imagination
- Seeing what is wrong, but not a way to fix it
Answer: E
Page Ref: 15
Learning Obj.: LO 3
AACSB: Analytical thinking 3 / 4
4 Copyright © 2015 Pearson Education, Inc.13) All of the following are components of control over compensation except ________.
- Salary
- Wage
- Dividend
- Commission
- All of the above are components of control over compensation.
Answer: E
Page Ref: 7
Learning Obj.: LO 2
AACSB: Application of knowledge
14) According to the text, which of the following is not a cost of becoming an entrepreneur?
- Contribution to society
- Business failure
- Obstacles
- Loneliness
- Long Hours
Answer: A
Page Ref: 10
Learning Obj.: LO 2
AACSB: Analytical thinking
15) Management expert Peter Drucker pointed out that, for a business to be considered entrepreneurial, it should exploit changes in the world. Which of the following areas have changes that entrepreneurs could exploit?
- Technology
- Politics
- Socio-economics
- All of the above
- None of the above
Answer: D
Page Ref: 15
Learning Obj.: LO 3
AACSB: Reflective thinking
16) Jumpstarting your imagination about entrepreneurial opportunity can be done by asking yourself and others questions like ________.
- What is the one thing you would love to have more than anything else?
- What would it look like?
- What would it do?
- What problem have you encountered in everyday life and thought, "There has to be a better
- All of the above
way to do this"?
Answer: E
Page Ref: 17
Learning Obj.: LO 3
AACSB: Analytical thinking
- / 4
.png)