Management, 14e (Robbins/Coulter)
Chapter 10 Entrepreneurial Ventures
1) Arthur has an idea. After performing a SWOT, he has identified a market that is not being
served so he is planning to start a new business and introduce a new product. Arthur is a(n)
________.
A) strategist
B) dreamer
C) entrepreneur
D) independent business developer
2) People who engage in ________ take advantage of opportunities to create new products or
services, or change existing ones.
A) social responsibility
B) social engineering
C) venture capitalism
D) entrepreneurship
3) Annabel operates a local hardware store that she inherited from her parents. When she took
over, she updated the point-of-sale equipment and installed a customer database. Annabel is a(n)
________
A) entrepreneur
B) opportunist
C) venture capitalist
D) small business owner
4) Rob is a CPA who works out of an office in his home. His business is named “Friendly
Accounting Services.” Eventually Rob would like to grow his business to include partners and
bookkeepers. We would classify Rob as ________.
A) self-employed
B) an entrepreneur
C) an employee
D) a franchisee
5) ________ is a process of changing, experimenting, transforming, and revolutionizing.
A) Developing
B) Research
C) Innovating
D) Inventing
6) Brandon is examining the state of the economy, the regulatory situation, social trends, and the
local labor supply. This would indicate Brandon is ________.
A) performing a SWOT analysis
B) exploring the entrepreneurial context
C) self-employed
D) a small business owner
7) The purpose of examining the state of the economy, the regulatory situation, social trends, and
the local labor supply is to ________.
A) identify possible customers and employees
B) locate resources for use in the new business
C) determine who are the major players in the market
D) identify opportunities and possible competitive advantages
8) Belinda has found a business opportunity she believes will be successful, but there are already
a couple companies in that market. To be successful, Belinda will need to ________.
A) pinpoint a competitive advantage
B) patent her idea
C) pursue a joint venture with them
D) write her mission statement
9) To demonstrate social responsibility, entrepreneurs are encouraged to ________.
A) consider community goals in their business plans
B) use recycled materials in their production processes
C) participate in community organizations such as Kiwanis and Rotary
D) sponsor youth sports teams
10) If Camden wants his new business to be a good corporate citizen, he should ________.
A) hire only union labor
B) minimize the risks his business takes
C) consider community goals in his business plan
D) observe all the local ordinances and employment laws
11) Small businesses are the same as entrepreneurial ventures.
12) The main difference between an entrepreneurial venture and a small business is size.
13) Entrepreneurship is important to every industry sector in the United States.
14) Entrepreneurship’s importance can be shown mostly in three geographic areas in the United
States: the Northeast, the South, and the Southwest.
15) Innovation is a key aspect of entrepreneurship.
16) Entrepreneurships are more likely than large businesses to generate patentable ideas.
17) Despite their overall importance to the economy, small businesses account for fewer new
jobs than large corporations.
18) Nearly half of all workers in the U.S. are employed by small businesses.
19) Entrepreneurship is important to a nation’s economic development.
20) Exploring the entrepreneurial context includes scanning the economic, political/legal, social,
and work environment.
21) Among the more important pre-launch activities the entrepreneur must perform is the
creation of a business plan.
22) Organizing an entrepreneurial venture involves, among other activities, choosing a legal
form of business organization.
23) After the venture is launched, the entrepreneur continues with the same activities as before
the launch.
24) Explain the differences between an entrepreneurial venture and a small business.
25) Compare and contrast self-employment and entrepreneurship.
26) Arthur Fry thought his glue was a failure because it didn’t stick permanently, but when
applied to small squares of paper, it became the popular Post-It ® note. Arthur Fry took
advantage of ________.
A) a process need
B) the unexpected
C) a market structure
D) changes in perception
27) “Put a motor on a bicycle? You must be crazy!” Yet that is exactly what William Harley and
Walter Davidson did. These two founders of the best-known American motorcycle company saw
opportunity in ________.
A) the incongruous
B) the unexpected
C) demographics
D) changes in perception
28) In the days before sterile adhesives, bandages were tied onto the patient. Next came adhesive
tape with small squares of gauze attached, but making these in the doctors’ office was tedious
and time consuming. Finally Earle Dickson invented the Band-Aid for his wife, who needed a
bandage she could apply to herself for small kitchen burns. Dickson saw ________.
A) the unexpected
B) a new industry
C) new knowledge
D) a process need
29) Before Henry Ford and Frederick W. Taylor collaborated, automobiles were built by
craftsmen, one at a time. After the establishment of the assembly line, Ford was able to produce
automobiles faster than his competitors. but with equivalent quality. and sell them for a fraction
of the cost. Ford saw opportunity in ________.
A) industry structure
B) the unexpected
C) changing perceptions
D) demographic shifts
30) Recognizing the increase in birth rates since 1946, and disliking the task of changing his
grandchildren’s diapers, Victor Mills began developing a disposable diaper. Pampers were
introduced to consumers in 1961. Mills saw opportunity in ________.
A) changes in demographics
B) changes in perceptions
C) new knowledge
D) the incongruous
31) Decades ago only former military personnel and hoodlums sported tattoos. Today tattoos are
considered an art form, giving rise to a plethora of tattoo shops. These body artists have taken
advantage of changes in ________.
A) demographics
B) market structure
C) perception
D) processes
32) In 1938 Dr. Roy Plunkett discovered that a certain material became very slippery when
frozen, and PTFE was invented. Under the brand Teflon, PTFE coatings were applied to a wide
variety of items from spacecraft to frying pans. DuPont was able to capitalize on ________.
A) the incongruous
B) the unexpected
C) new knowledge
D) process needs
33) Which one of the following would most likely be a source for ideas for the would-be
entrepreneur?
A) manufacturing exhibitions
B) trade publications
C) personal interests and hobbies
D) pure research
34) Dharma is examining her financial position, the market for her proposed new product, the
types of ownership available to her, and the tax laws for her area to determine whether she
should go forward with her new business. Dharma is conducting a ________
A) market analysis
B) technical study
C) practicality study
D) feasibility study
35) Before launching his new venture, Doyle is studying the potential competitors for his new
product. He will want to find an answer to which one of the following questions?
A) How do they finance their operations?
B) What competitive advantage do they have?
C) Where are they located?
D) How many employees do they have?
36) The marketing plan becomes a part of the ________ section of the business plan.
A) description of the business
B) executive summary
C) analysis of the context
D) supporting documentation
37) Which one of the following items is found in the financial data section of the business plan?
A) pricing
B) economic analysis
C) sales tactics
D) pro forma cash flow analysis
38) Emily is calculating her annual revenues, balance sheets, and breakeven points so she can
write the ________ section of her business plan.
A) description of the business
B) executive summary
C) financial data and projections
D) analysis of the context
39) Farrah has created a computer-generated mockup of her new product for inclusion in the
________ section of her business plan.
A) supporting documentation
B) executive summary
C) analysis of the context
D) description of the business
40) An important difference between entrepreneurs and the rest of us is that entrepreneurs can
see opportunities the rest of us miss.
41) Competitive advantage is a necessary ingredient for an entrepreneurial venture’s long-term
success and survival.
42) The purpose of a business plan is to secure financing for the start-up.
43) The executive summary of a business plan is constructed to remind the executive of his plan
for the new business
44) In a business plan, the analysis of the context is most closely related to the environmental
scan.
45) The financial data section of the business plan should contain projections for the first five
years and a breakeven analysis.
46) Discuss three of the seven potential sources of opportunity for entrepreneurial ventures.
47) Identify at least three sources or areas where entrepreneurs can find ideas. What should
entrepreneurs look for as they explore these idea sources?
48) What kind of questions should entrepreneurs ask before embarking on a new venture?
49) Identify and describe the six sections of the business plan, including the type of information
that should appear in each section
50) The first organizing decision that an entrepreneur must make is the ________.
A) type of organizational culture
B) form of legal ownership
C) organization structure
D) assignment of duties and responsibilities
51) Fallon wants total control over the decisions related to his business but is concerned that
should the business fail, his personal assets are at risk. Fallon has chosen the ________ form of
ownership.
A) sole proprietorship
B) C corporation
C) general partnership
D) S corporation
52) In a sole proprietorship, profits are ________.
A) distributed to all partners equally
B) taxed at the prevailing business rate
C) taxed as the owner’s personal income
D) distributed to the partners according to their level of participation