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Chapter 01 1 All of the following are characteristics of the typical entrepreneur except
Copyright © 2014 Pearson Education, Inc. Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough) Chapter 1 The Foundations of Entrepreneurship 1) One of the most significant economic developments in recent business history relates to the: A) growth of blue-chip […]
Chapter 01 2 Increased entrepreneurial activity is a phenomenon unique to the U.S
Copyright © 2014 Pearson Education, Inc. 58) Increased entrepreneurial activity is a phenomenon unique to the U.S. Answer: FALSE Diff: 1 Page Ref: 3 AACSB: Analytic Skills Learning Obj.: 1 59) One study conducted by the Global Entrepreneurship Monitor (GEM) […]
Chapter 02 1 When developing creative solutions to modern problems, entrepreneurs must
Copyright © 2014 Pearson Education, Inc. Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough) Chapter 2 Inside the Entrepreneurial Mind: From Ideas to Reality 1) The ability to develop new ideas and to discover new ways of looking at […]
Chapter 02 2 The right brain takes care of the body’s emotional, intuitive, and spatial functions
Copyright © 2014 Pearson Education, Inc. 66) Entrepreneurs must embrace traditional assumptions and perspectives about how things ought to be because they support creativity. Answer: FALSE Diff: 2 Page Ref: 42 AACSB: Reflective Thinking Learning Obj.: 2 67) Creative thinking […]
Chapter 03 1 Which of the following is not one of the three components of intellectual capital
Copyright © 2014 Pearson Education, Inc. Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough) Chapter 3 Designing a Competitive Business Model and Building a Solid Strategic Plan 1) Which of the following is not one of the three components […]
Chapter 03 2 A strategy is a road map of action for fulfilling a firm’s mission
Copyright © 2014 Pearson Education, Inc. 63) The ideal strategic planning procedure for a small company should be formal and highly structured. Answer: FALSE Diff: 2 Page Ref: 92 AACSB: Analytic Skills Learning Obj.: 3 64) The most effective way […]
Chapter 04 1 Porter’s five forces model assesses industry attractiveness by surveying these five factors
Copyright © 2014 Pearson Education, Inc. Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough) Chapter 4 Conducting a Feasibility Analysis and Crafting a Winning Business Plan 1) The process of determining whether an entrepreneur’s idea is a viable foundation […]
Chapter 04 2 The executive summary serves as the thesis statement for the entire business plan
Copyright © 2014 Pearson Education, Inc. 82) The value test that a business must pass in order to attract financing from lenders and investors involves proving to them that the venture offers a high probability of repayment or an attractive […]
Chapter 05 1 The most common form of business ownership that is also the simplest to create is the
Copyright © 2014 Pearson Education, Inc. Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough) Chapter 5 Forms of Business Ownership 1) The key to choosing the right form of ownership is: A) envisioning where your business will be in […]
Chapter 05 2 The partnership, like the proprietorship, avoids the disadvantage of double taxation.
Copyright © 2014 Pearson Education, Inc. 56) There is no limit to the number of general partners a partnership may have, but it must have at least one general partner. Answer: TRUE Diff: 2 Page Ref: 173 AACSB: Analytic Skills […]
Chapter 06 1 Which of the following is not a potential disadvantage of a franchise
Answer: C Diff: 3 Page Ref: 195 AACSB: Analytic Skills Learning Obj.: 1 Copyright © 2014 Pearson Education, Inc. 1 Answer: C Diff: 3 Page Ref: 196-197 AACSB: Analytic Skills Learning Obj.: 1 Essentials of Entrepreneurship & Small Business Mgmt., […]
Chapter 07 1 The due diligence process of analyzing and evaluating an existing business
Copyright © 2014 Pearson Education, Inc. Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough) Chapter 7 Buying an Existing Business 1) The due diligence process of analyzing and evaluating an existing business: A) may be just as time consuming […]
Chapter 07 2 The practice of taking money from sales without reporting it as income is called sliding
Copyright © 2014 Pearson Education, Inc. 83) Ralph buys a software business from Waldo in Columbus, Ohio. As part of the deal, Waldo signs a covenant not to compete by opening another software business anywhere in Ohio for the rest […]
Chapter 08 1 The focus of a small company’s marketing plan should be on
Copyright © 2014 Pearson Education, Inc. Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough) Chapter 8 Building a Powerful Marketing Plan 1) ________ is the process of creating and delivering desired goods and services to customers and involves all […]
Chapter 08 2 A critical marketing step is to clearly define their target market
Copyright © 2014 Pearson Education, Inc. 59) Time compression management (TCM) involves: A) speeding new products to market. B) reducing the administrative time required to fill an order. C) shortening customer response time in manufacturing and delivery. D) All of […]
Chapter 09 1 One of the most valuable attributes of the Web is the ability to
Copyright © 2014 Pearson Education, Inc. Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough) Chapter 9 E-Commerce and the Entrepreneur 1) One of the most valuable attributes of the Web is the ability to: A) provide companies with instantaneous […]
Chapter 09 2 The Web typically lacks the ability to lower the cost of doing business
Copyright © 2014 Pearson Education, Inc. 65) A valuable method of preventing online fraud is to: A) ask customers for their card verification value. B) not accept credit cards. C) run background checks on customers. D) All of the above […]
Chapter 10 1 The top business challenge that drives pricing decisions is the
Copyright © 2014 Pearson Education, Inc. Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough) Chapter 10 Pricing Strategies 1) Setting prices for products and services requires entrepreneurs to balance a multitude of complex forces as entrepreneurs determine prices for […]
Chapter 10 2 The prices a small business charges influence its image in the marketplace
Copyright © 2014 Pearson Education, Inc. 53) The prices a small business charges influence its image in the marketplace. Answer: TRUE Diff: 1 Page Ref: 358-359 AACSB: Analytic Skills Learning Obj.: 1 54) The desired image for the business, the […]
Chapter 11 1 Cost of goods sold is located on which financial statement
Copyright © 2014 Pearson Education, Inc. Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough) Chapter 11 Creating a Successful Financial Plan 1) In order to reach profit objectives, entrepreneurs must be aware of their firms’: A) current ratio and […]
Chapter 11 2 Pro forma financial statements show a company’s most recent financial position
Copyright © 2014 Pearson Education, Inc. 74) To determine net profit, the owner records sales revenue for the year and subtracts liabilities. Answer: FALSE Diff: 1 Page Ref: 393-394 AACSB: Analytic Skills Learning Obj.: 2 75) Service companies spend the […]
Chapter 11 3 What are the advantages and the disadvantages of using break-even analysis
Copyright © 2014 Pearson Education, Inc. 126) What are the advantages and the disadvantages of using break-even analysis? 35 Answer: As a key component in a sound financial plan, the advantages of break-even analysis include its ability to analyze costs […]
Chapter 12 1 When estimating the firm’s end-of-month cash balance, the owner should first
Copyright © 2014 Pearson Education, Inc. Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough) Chapter 12 Managing Cash Flow 1) Solid cash management enables a business owner to: A) adequately meet the cash demands of the business. B) avoid […]
Chapter 12 2 Communication in a timely and professional manner is key to effective collection activities
Copyright © 2014 Pearson Education, Inc. 89) Seasonal sales patterns cause cash balances to fluctuate dramatically, creating the need for cash forecasts. Answer: TRUE Diff: 2 Page Ref: 450 AACSB: Communication Learning Obj.: 4 90) To manage cash efficiently, business […]
Chapter 13 1 The primary disadvantage of equity capital is that the entrepreneur
Copyright © 2014 Pearson Education, Inc. Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough) Chapter 13 Sources of Financing: Debt and Equity 1) Entrepreneurs needing between $100,000 and $3 million in the current financial environment will likely find acquiring […]
Chapter 13 2 Selling the small company’s accounts receivable outright to another business is called
Copyright © 2014 Pearson Education, Inc. 80) The ________ provides loans to entrepreneurs in economically challenged communities and viewed as high-risk borrowers. A) Certified Development Company Program B) Patriot Express Program C) Community Express Program D) 7(A) Loan Guarantee Program […]
Chapter 13 3 The majority of the loans a commercial finance company makes are unsecured by collateral.
Copyright © 2014 Pearson Education, Inc. 159) Typically, a lender is willing to lend a small business owner 100 percent of the value of accounts receivable pledged as collateral. Answer: FALSE Diff: 1 Page Ref: 496 AACSB: Analytic Skills Learning […]
Chapter 14 1 The location has far-reaching ramifications, such as high-tech companies that need
Copyright © 2014 Pearson Education, Inc. Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough) Chapter 14 Choosing the Right Location and Layout 1) The first phase of determining where to locate a business is: A) choosing a state in […]
Chapter 14 2 Which of the following sections of a retail store would be most valuable
Copyright © 2014 Pearson Education, Inc. 77) A bakery is an example of a business that may benefit from intentional use of ________ within the space. A) color B) music C) smell D) lighting Answer: C Diff: 1 Page Ref: […]
Chapter 14 3 sound and scent are unimportant attributes to most retail stores
37 171) Attributes such as lighting, sound and scent are unimportant attributes to most retail stores. Answer: FALSE Diff: 1 Page Ref: 553-554 AACSB: Communication Learning Obj.: 5 172) When designing the layout of a store, office, or plant, a […]
Chapter 15 1 Before going global, entrepreneurs should ask themselves questions regarding
Copyright © 2014 Pearson Education, Inc. Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough) Chapter 15 Global Opportunities 1) Becoming a global entrepreneur requires: A) constant innovation. B) maintaining a high level of quality and constantly improving it. C) […]
Chapter 15 2 from many domestic companies and then sell them in foreign markets
Copyright © 2014 Pearson Education, Inc. 70) Export trading companies are government-owned operations established in countries around the world (including the United States) for the purpose of buying goods there. Answer: FALSE Diff: 1 Page Ref: 576 AACSB: Analytic Skills […]
Chapter 16 1 One of the best sources for prospects for new positions may come from
Copyright © 2014 Pearson Education, Inc. Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough) Chapter 16 Building a Team and Management Succession 1) ________ is the process of influencing and inspiring others to work to achieve a common goal […]
Chapter 16 2 Small business owners should take the time to check every candidate’s references
Copyright © 2014 Pearson Education, Inc. 85) Every new employee a business owner hires determines the heights to which the company can climb or the depths to which it will plunge. Answer: TRUE Diff: 1 Page Ref: 616 AACSB: Communication […]
Chapter 16 3 What advice would you offer her about a management succession plan
Copyright © 2014 Pearson Education, Inc. 152) Assume the role of a consultant to a small business owner who is about to conduct a job interview for the first time. Identify the guidelines that will help him develop interview questions. […]