Colorado Sandwich, Soup and Salad is a casual dining restaurant that has been owned by Stephanie Peterson for the past 14 years. The restaurant offers a menu that is typical for casual dining restaurants and affords Stephanie a level of income that is similar to what she would earn in a

conventional

job. According to the textbook, Colorado Sandwich, Soup and Salad is an example of a(n) ________ firm.

Question options:

  

   

a) 

salary-substitute

 
   

b) 

entrepreneurial

 
   

c) 

quality-of-life

 
   

d) 

lifestyle

 

Question 2

5 / 5 points

       

Montana Sky Trails leads multiday outdoor adventure trips for private groups and corporate clients to various locations across Montana. The company was started by Justin Smith, an individual that gave up a prestigious job in banking because Montana Sky Trails better accommodates his personal lifestyle. Montana Sky Trails is an example of a(n) ________ firm.

Question options:
  
   
a) 
entrepreneurial
 
   
b) 
salary-substitute
 
   
c) 

standard-of-living

 
   
d) 
lifestyle
 

Question 3

5 / 5 points
       

The number one characteristic shared by successful entrepreneurs is:

Question options:
  
   
a) 

a desire to achieve financial     rewards.

 
   
b) 

a passion for the business.

 
   
c) 

a desire to employ other people.

 
   
d) 

a desire to fulfill a lifetime     dream.

 

Question 4

5 / 5 points
       

Casey Griggs is a very capable computer engineer. Recently, he noticed a problem that computer engineers have and thought of a solution to the problem that might represent an

opportunity

for a new software product. Casey’s

idea

for a new software product is an example of a ________ discovery.

Question options:
  
   
a) 

chance

 
   
b) 

serendipitous

 
   
c) 

traditional

 
   
d) 
conventional
 

Question 5

5 / 5 points
       

Which of the following statements regarding survival rates of entrepreneurial firms in the United States is correct?

Question options:
  
   
a) 

As high as 50 percent after four     years

 
   
b) 

As high as 60 percent after four     years

 
   
c) 

As high as 70 percent after four     years

 
   
d) 

As high as 80 percent after four     years

 

Question 6

5 / 5 points
       

A(n) ________ is a favorable set of circumstances that creates a need for a new product, service, or business.

Question options:
  
   
a) 
idea
 
   
b) 
opportunity
 
   
c) 

design

 
   
d) 

proposal

 

Question 7

5 / 5 points
       

A common way that gaps in the marketplace are recognized is:

Question options:
  
   
a) 

by observing changing     environmental trends.

 
   
b) 

by recognizing problems that     need to be solved.

 
   
c) 

via studying industry reports.

 
   
d) 

when people become frustrated     because they can’t find a product or service that they need and recognize     that other people feel the same way.

 

Question 8

5 / 5 points
       

An opportunity has which four essential qualities?

Question options:
  
   
a) 

attractive; timely; durable; and     anchored in a product, service, or business that creates or adds value for     its buyer or end user

 
   
b) 

practical; opportune;     appropriate; and anchored in a product, service, or business that is     efficient and effective

 
   
c) 

realistic; striking; timely; and     anchored in a product, service, or business that is timely

 
   
d) 

attention-getting; attractive;     timely; and anchored in a product, service, or business that creates or     adds value for its buyer or end user

 

Question 9

5 / 5 points
       

Economic forces impact the opportunities available to entrepreneurs. Which of the following alternatives reflects a set of economic forces that would be of interest to entrepreneurs?

Question options:
  
   
a) 

Level of disposable income, new     uses of old technologies, and new laws and regulations

 
   
b) 

New technologies, consumer     spending patterns, and new laws

 
   
c) 

Interest rates, consumer spending     patterns, and level of disposable income

 
   
d) 

Social and cultural trends,     level of interest rates, and what people think is “in”

 

Question 10

5 / 5 points
       

Which of the following is NOT an example of a social force?

Question options:
  
   
a) 

Changes in interest rates

 
   
b) 

Increasing participation in     social networks

 
   
c) 

Increasing diversity of the workplace

 
   
d) 

Aging of the population

 

Question 11

5 / 5 points
       

The three ways to identify an opportunity include:

Question options:
  
   
a) 

observing trends, solving a     problem, and finding gaps in the marketplace.

 
   
b) 

studying industry trade     journals, talking to consumers, and solving a problem.

 
   
c) 

observing trends, conducting     brainstorming sessions, and studying industry trade journals.

 
   
d) 

observing trends, talking to     consumers, and finding gaps in the marketplace.

 

Question 12

5 / 5 points
       

A(n) ________ is a favorable set of circumstances that creates the need for a new product, service, or business. A(n) ________ is a thought, an impression, or a notion.

Question options:
  
   
a) 

scheme; notion

 
   
b) 

opportunity; idea

 
   
c) 

idea; design

 
   
d) 

idea; opportunity

 

Question 13

5 / 5 points
       

In 2000, TishCirovolo realized that there were no guitars on the market made specifically for women. As a result, she started Daisy Rock Guitars, a company that makes guitars just for women. Daisy Rock Guitars are stylish and come in feminine colors, and incorporate design features that accommodate a woman’s smaller hand and build. The best way to describe how Cirovolo’s business idea was recognized is:

Question options:
  
   
a) 

brainstorming.

 
   
b) 

talking to consumers.

 
   
c) 

finding a gap in the     marketplace.

 
   
d) 

observing trends.

 

Question 14

5 / 5 points
       

Google is a firm that is proactive, innovative and risk-taking. From this description, we can most accurately conclude that Google has a high level of:

Question options:
  
   
a) 

enterprise focus.

 
   
b) 

innovative intensity.

 
   
c) 

entrepreneurial intensity.

 
   
d) 

creative intensity.

 

Question 15

5 / 5 points
       

Stacey Wills, who is at heart a craftsperson, recently started a firm to manufacture a new innovative food blender. Stacey’s desire is to sell her food blender to as many people as possible because she firmly believes in the merits of her product. Stacey’s story best illustrates which of the following characteristics, or attributes, of a successful entrepreneur?

Question options:
  
   
a) 

Product/customer focus

 
   
b) 

Execution intelligence

 
   
c) 

Tenacity despite failure

 
   
d) 

A desire to please consumers

 

Question 16

5 / 5 points
       

Brad Johnson is starting an upscale men’s clothing store in a mall near Seattle. He wants to open his store during the time period in which a business like his can realistically enter the new market. Brad is trying to open his business while the ________ is open.

Question options:
  
   
a) 

safe harbor

 
   
b) 

window of opportunity

 
   
c) 

portal of entry

 
   
d) 

doorway of opportunity

 

Question 17

5 / 5 points
       

________ is the process of creating something new, which is central to the entrepreneurial process.

Question options:
  
   
a) 

Creative destruction

 
   
b) 

Modernism

 
   
c) 

Innovation

 
   
d) 

Creativity

 

Question 18

5 / 5 points
       

An event that prompts an individual to become an entrepreneur, such as losing a job, inheriting money, or accommodating a certain lifestyle, is referred to as a(n):

Question options:
  
   
a) 

prompting event.

 
   
b) 

entrepreneurial prompt.

 
   
c) 

initiating event.

 
   
d) 

triggering event.

 

Question 19

5 / 5 points
       

According to the Global Entrepreneurship Monitor (GEM) 2013 survey, about ________ percent of adults in the United States are either starting a business or are running a business that has been in existence for less than 3 1/2 years.

Question options:
  
   
a) 

12.7

 
   
b) 

5.5

 
   
c) 

9.0

 
   
d) 

7.6

 

Question 20

5 / 5 points
       

Jessica Smith is thinking about starting a chain of fitness centers for young adults ages 18-30. Which of the following is NOT an appropriate criterion for Jessica to test her idea against?

Question options:
  
   
a) 

Determine whether the     “window of opportunity” is open.

 
   
b) 

Determine whether a fitness     center for young adults ages 18-30 meets the threshold of being a good     idea.

 
   
c) 

Determine the extent to which     the notion takes advantage of an environmental trend, solves a problem, or     fills a gap in the marketplace.

 
   
d) 

Determine whether opening a     fitness center for young adults ages 18-30 is timely.