Paper 1

P22- Evaluation of the entrepreneurial potential

1. An entrepreneur :

a. has the final say in business decisions

b. may not employ anyone else
c. is responsible for the success or failure of his or her business
d. all of the above

2. Which of the following is not a risk for an entrepreneur?

a. potential business failure

b. financial stability
c. financial insecurity
d. long hours and hard work

3. How many business owners have home-based businesses?

a. about 75 percent
b. about 50 percent
c. about 25 percent
d. fewer than 10 percent

4. A natural ability to do a particular type of work or activity well is called :

a. a skill
b. an attitude
c. an aptitude
d. self-esteem

5. When a business encourages employees to be creative within the company, the practice is called :

a. entrepreneurship
b. creating a vision
c. implementing a mission
d. intrapreneurship

6. What is a dot-com company?

a. a small company
b. a company that runs most or all of its business from the Internet
c. a company that adopts business practices aimed at protecting or improving the environment
d. a foreign company
Paper 1
7. What is possibly the biggest reward of becoming an entrepreneur?

a. empowerment
b. fame
c. money
d. none of the above

8. A common standard that defines a non-manufacturing business as small is :

a. having fewer than 500 employees

b. having fewer than 250 employees
c. having fewer than 100 employees
d. having fewer than 50 employees

9. As an entrepreneur, the amount of money you receive from your company

a. is constant, like a paycheck for any other employee

b. is typically less than for an employee
c. is typically more than for an employee
d. may go up or down, depending on the business

10. As an entrepreneur, the amount of time you spend working is typically

a. constant—35 to 40 hours a week, just like an employee

b. a little less than for an employee
c. more than for an employee, particularly during initial startup
d. significantly less than for an employee— around 20 hours a week

11. What percentage of business owners use their own money to start the business?

a. more than 75 percent

b. more than 60 percent but less than 75 percent
c. more than 40 percent but less than 60 percent
d. less than 40 percent

12. An experienced person who volunteers to provide free guidance, tutoring, and suggestions to younger
individuals is called a(n)

a. mentor
b. intrapreneur
c. entrepreneur
d. employee