Which of the following statements is false?
a. Entrepreneurs want the authority to make important decisions.
b. Management skills are not important characteristics for entrepreneurs to possess.
c. Successful entrepreneurs strive to build a successful team around them.
d. An entrepreneur can develop the vision of the company over time.
What kind of thinking can lead to unethical behavior in a business context?
a. top line
b. bottom line
c. abstract
d. critical
Small business owners are often guarded about their businesses, which leads to
a. distrust of others when formulating a strategic plan
b. a myopic viewpoint
c. misunderstanding of the economic environment
d. lack of attention to the competition
Which of the following statements is true?
a. A good innovator should be a genius.
b. Innovators rarely work in more than one field.
c. Innovators are poor workers.
d. A good innovator uses only the left side of the brain.
Which of the following is not a type of debt financing?
a. private placement
b. trade credits
c. finance companies
d. accounts receivables
The textbook recommends which of the following devices to help in the oral
presentation of a business plan?
a. mnemonics
b. index cards
c. rote memorization cues
d. keywords on an outline
Which of the following is a way in which a trademark may be invalidated?
a. cancellation proceeding
b. a competitor’s lawsuit
c. consumer loss of interest
d. once a trademark is established, no legal action can invalidate it
Security hunting is
a. looking for a safe place to sleep.
b. trying to make the right decision or take the correct action.
c. taking no action that involves risk.
d. adding a firewall to your computer system.
Benefit corporations concern themselves with
a. purpose and transparency
b. accountability
c. accountability and transparency
d. purpose, accountability, and transparency
Which of the following is not one of the most common questions typically required to
be answered by entrepreneurs seeking funding?
a. What do you plan to do with the money?
b. How much money do you need?
c. When do you need the money?
d. What exact date will you repay the money?
B corporations’ legal structure expands corporate accountability to encompass all of the
following except:
a. lower legal accountability standards
b. comprehensive and transparent environmental standards
c. comprehensive and transparent social performance standards
d. good for society
‘Harvest’ does not mean
a. family members agree about the business.
b. that any profits will be reaped.
c. that the firm continues to exist.
d. the challenges and responsibilities of the entrepreneur are over.
Three specific phases that a new venture goes through are
a. prestart-up, start-up, poststart-up.
b. start-up, poststart-up, evaluation.
c. beginning start-up, start-up, ending start-up.
d. prestart-up, start-up, evaluation.
Succession pressure inside the firm exists
a. when the founder wants to give up authority.
b. when family members want to keep and manage the business.
c. nonfamily employees don’t want the business.
d. competition-is hurting the business.
A fixed cost
a. changes in response to changes in activity for a given period of time.
b. does not change in response to changes in activity for a given period of time.
c. changes inversely to changes in activity for a given period of time.
d. does none of the above.
Works created after January 1, 1978, have a copyright for the life of the author plus
a. 70 years.
b. 50 years.
c. 14 years.
d. 10 months.
The Greek word ethos means
a. mode of conduct.
b. morale.
c. elan.
d. esprit de corps.
Who must negotiate a final deal to purchase a business?
a. A lawyer
b. A CPA
c. The potential buyer
d. All of the above
The ‘right questions’ that a prospective owner should ask about a franchise deal with
a. the franchisor.
b. the franchise.
c. the market.
d. all of the above.
That part of a patent application which identifies the features that are protected are
known as the
a. particular.
b. claim.
c. identification.
d. essence.
An indicator of the planning pitfall of ‘no realistic goals’ is
a. lack of timetable to accomplish things.
b. missed appointments.
c. excessive procrastination.
d. lack of desire to invest personal money.
The textbook recommends that social media marketers consider three aspects of social
media when using social media tools for marketing purposes. What are they?
a. cost, complexity, and relevancy
b. creating something of value, enabling customer promotion, and encouraging
participation
c. control, contribution, and distribution
d. resource management, context, and content
It takes _____ to innovate successfully.
a. work, not rest,
b. rest, not work,
c. work, not genius,
d. genius, not work,
An investment prospectus is the same as a business plan.
A potential danger of social lending is the implication that social loans may be viewed
as gifts and taxed accordingly.
Most entrepreneurs are unfamiliar with planning information sources.
The first step in creating an operating budget is to prepare the sales forecast.
Should an entrepreneur attempt to make a business plan sound too good for an investor
to turn down?
There are many risks in entrepreneurship.
The cash-flow budget provides an overview of cash inflows and outflows for the budget
period.