Chapter 6: Chapter 6: Entrepreneurship and New Ventures
I. True/False
1. Entrepreneurs start their own businesses, often in order to be their own boss or to make a special
contribution to society.
2. Success in highly competitive business environments depends on access to wealthy investors
and establishing a corporate form of ownership to minimize risk.
3. Entrepreneurship describes strategic thinking and risk-taking behavior that results in the creation
of new opportunities for individuals and/or organizations.
4. An entrepreneur is a risk-taking individual who takes action to pursue opportunities and situations
others fail to recognize, or even view as problems or threats.
5. Since founding Mary Kay Cosmetics, Mary Kay Ash’s goal has been “to help women everywhere
reach their full potential.”
6. The entrepreneur, H. Wayne Huizenga, founder of Waste Management, Inc., Auto Nation, Inc.,
the Miami Dolphins football team, and Blockbuster Video, entrepreneurial perspective can be
expressed as: “Success depends on seizing the moment and sometimes creating your own
opportunity.”
7. In describing his entrepreneurial perspective, Earl Graves says: “I feel that a large part of my role
as publisher of Black Enterprise is to be a catalyst for black economic development in this
country.”
8. Richard Branson, founder of Virgin Airlines, Virgin Records, and Virgin Cola, explains his wide-
ranging business interests as follows: “I love to learn things that I know little about.”
9. Anita Roddick, founder of The Body Shop PLC, maintains that: “If you think you’re too small to
have an impact, try going to bed with a mosquito.”
10. Entrepreneurs include people who buy a local franchise outlet, open a small retail shop, or go into
a self-employed service business.
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II. Multiple Choice
1. Success in highly competitive business environments depends on __________.
A. Entrepreneurship.
B. Venture capitalists.
C. Access to wealthy investors.
D. Establishing a corporate form of ownership.
E. Minimizing risk.
2. __________ describes strategic thinking and risk-taking behavior that results in the creation of
new opportunities for individuals and/or organizations.
A. Strategic planning.
B. Angel investing.
C. Entrepreneurship.
D. Management development.
E. Organizational development.
3. H. Wayne Huizenga believes that “An important part of __________ is a gut instinct that allows
you to believe in your heart that something will work even though everyone else says it will not.”
A. Being an entrepreneur.
B. Visioning.
C. Business venturing.
D. Strategic management.
E. Small business success.
4. __________ is a risk-taking individual who takes action to pursue opportunities and situations
others fail to recognize, or even view as problems or threats.
A. A daredevil.
B. An opportunist.
C. An intrapreneur.
D. An entrepreneur.
E. A managerial activist.
5. Which of the following is not one of the characteristics of entrepreneurs?
A. Takes calculated risks.
B. Has a high need for power.
C. Has an internal locus of control.
D. Demonstrates self-confidence.
E. Has a high tolerance for ambiguity.