,Entrepreneurship, 3e (Bamford)
Chapter 1 The Twenty-First-Century Entrepreneur
1) Entrepreneurial business is not important to the U.S. economy.
Answer: FALSE
Explanation: The evidence of the importance of entrepreneurial businesses to the U.S. economy
can be seen in statistics from the United States Small Business Administration (SBA).
Difficulty: 1 Easy
Topic: Why Start a Business?
Learning Objective: 01-01 Explain the rationale behind starting an entrepreneurial business.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2) The United States Small Business Administration (SBA) provides a wealth of information and
assistance at all levels of organizational development and management for new entrepreneurial
businesses.
Answer: TRUE
Explanation: The United States Small Business Administration (SBA) provides a wealth of
information and assistance at all levels of organizational development and management for new
entrepreneurial businesses. It is the agency officially organized in 1953 as a part of the Small
Business Act of July 30, 1953, to "aid, counsel, assist, and protect, insofar as is possible, the
interests of small business concerns."
Difficulty: 1 Easy
Topic: Why Start a Business?
Learning Objective: 01-01 Explain the rationale behind starting an entrepreneurial business.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
3) A critical element that an entrepreneur must solve for success is to develop the ability to
generate consistent and growing sales.
Answer: TRUE
Explanation: One of the three critical elements that an entrepreneur has to solve for success is
the ability to generate consistent and growing sales. The other critical elements are having
sustainable operating profit margins and being properly financed.
Difficulty: 1 Easy
Topic: Why Start a Business?
Learning Objective: 01-01 Explain the rationale behind starting an entrepreneurial business.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
,4) Profit margins are key to successful businesses.
Answer: TRUE
Explanation: One of the three critical elements that an entrepreneur has to solve for success is
sustainable operating profit margins. Profit margins are key to successful businesses.
Difficulty: 1 Easy
Topic: Why Start a Business?
Learning Objective: 01-01 Explain the rationale behind starting an entrepreneurial business.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
5) Corporate America employs more people now than it did 10 years ago.
Answer: FALSE
Explanation: Corporate America has been downsizing.
Difficulty: 1 Easy
Topic: Why Start a Business?
Learning Objective: 01-01 Explain the rationale behind starting an entrepreneurial business.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
6) Small companies can take advantage of economies of scale better than large firms.
Answer: FALSE
Explanation: Economies of scale is a condition that allows the long-run average cost to continue
downward as production increases. It can lead to a condition where a single firm making 100
percent of the product is the most efficient.
Difficulty: 1 Easy
Topic: Why Start a Business?
Learning Objective: 01-01 Explain the rationale behind starting an entrepreneurial business.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
7) The rate of small-business failure has declined.
, 8) Alexis de Tocqueville, the French statesman, stated, "United States was not so much a nation
with ventures … but instead a nation of innumerable small ventures."
Answer: TRUE
Explanation: Alexis de Tocqueville was a Frenchman who toured the United States in the early
1830s and wrote a famous analysis of the country. One of his observations was that the United
States was not so much a nation with ventures that were marvelous in their grandeur, but instead,
a nation of innumerable small ventures.
Difficulty: 1 Easy
Topic: A Brief History of Entrepreneurial Businesses in the United States
Learning Objective: 01-02 Discuss the history of entrepreneurship in the United States.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
9) Charles Wilson, secretary of defense for President Eisenhower, stated, "What is good for
General Motors is good for the nation."
Answer: TRUE
Explanation: After World War II, Charles Wilson, secretary of defense for President
Eisenhower, made the famous statement that "what is good for General Motors is good for the
nation." The implication was that what was good for big business would be good for all of the
people in the country.
Difficulty: 1 Easy
Topic: A Brief History of Entrepreneurial Businesses in the United States
Learning Objective: 01-02 Discuss the history of entrepreneurship in the United States.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
10) In the late 1970s and 1980s, the United States occupied the dominant economic position in
the world.
Answer: FALSE
Explanation: In the late 1970s and early 1980s, the nation was in economic turmoil as many of
the large firms that had grown to dominate the U.S. economy were having difficulty, owing to
global competition. The Japanese were in the dominant economic position in the world, and the
widely discussed fear was that the United States was in decline much as Britain had been 100
years earlier.
Difficulty: 1 Easy
Topic: A Brief History of Entrepreneurial Businesses in the United States
Learning Objective: 01-02 Discuss the history of entrepreneurship in the United States.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamsExpert. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £24.49. You're not tied to anything after your purchase.
