The ‘corridor principle’ states that entrepreneurs often get stuck on one idea.
An important guideline in putting the plan together is
a. to overdiversify.
b. to not highlight critical risks.
c. to identify the target market.
d. to impress with excessive detail
Typically, when faced with setbacks or failure, entrepreneurs
a. remain optimistic and view it as a learning experience.
b. become outraged and take a short vacation.
c. blame top management.
d. resign.
What is the largest source for new business ideas among men?
a. Chance
b. Prior job
c. Hobby
d. Education courses
Rewards should be based upon _____ to encourage the desired behavior.
a. seniority
b. results
c. attitude
d. morale
Sustaining corporate entrepreneurship requires
a. keeping up with market trends.
b. maximizing profits.
c. keeping the corporate vision strong.
d. equal pay raises.
In 2011, the largest U.S. trading partners included
a. Canada, China, and Mexico
b. China, Mexico, and Turkey
c. Canada, Mexico, and India
d. China, India, and South Korea
The specification section of a patent application should include all of the following
except
a. an introduction.
b. examples and/or experimental results.
c. a summary of invention.
d. a budget for handling infringement.
Which of the following statements is true with regards to creativity?
a. People’s approach will remain the same, but their process will change.
b. People’s process will remain the same, but their approach will change.
c. People’s approach and process will both remain the same.
d. People’s approach and process will both change.
When buying a business, competition must be investigated because
a. price competition may affect profits.
b. new competition may reduce market share.
c. competition may be spending more money on advertising than you.
d. all of the above
The second section of a business plan is
a. the summary.
b. the business description.
c. a statement of purpose and goals.
d. a statement of financing goals.
The franchisee’s responsibilities include:
a. a financial investment.
b. payment of a fee.
c. engaging in a continuous business relationship.
d. all of the above.
An informal risk capitalist is referred to as:
a. your neighbor.
b. a business angel.
c. a retiree.
d. someone with extra money to invest but who is not interested becoming an
entrepreneur.
Copyrights can be placed on all of the following except
a. ideas.
b. lectures.
c. books.
d. music.
Contained in the pro forma balance sheet is
a. the profit budget.
b. the cost budget.
c. the cash flow budget.
d. the R & D budget.
Items that can qualify for patent protection include all of the following except
a. machines.
b. products.
c. processes.
d. ideas.
What part of the marketing plan emphasizes the factors that contribute to a firm’s
competitive edge?
a. the appraisal of marketing strengths and weaknesses
b. the development of marketing strategies
c. the setting of pricing structures
d. the conducting market research
Most privately held firms
a. lack a succession plan.
b. pass the firm to a child.
c. don’t view succession as a major issue.
d. leave the succession decision to the executor of the owner’s will.
Which of the following is not a way to combat stress?
a. acknowledging its existence
b. ignoring coping mechanisms
c. probing personal unacknowledged needs
d. taking a few days off
A person can develop their own creativity by
a. quitting a boring job.
b. focusing on making money.
c. taking up a new hobby.
d. seeing new and different relationships in people, objects, and places around them.
Which of the following describes advantages of the business plan for financial sources?
a. The plan identifies critical risks.
b. The plan helps assess the entrepreneur’s family.
c. the plan identifies sources of capital.
d. all of the above.
Meeting with potential buyers
a. leads to a lower selling price.
b. helps in the negotiation of major requirements.
c. reduces buyer confidence.
d. reduces seller confidence.
Despite the drawbacks of the payback method, the entrepreneur should continue to use
it because
a. it is very simple to use in comparison with other methods.
b. projects with a faster payback period normally have more favorable long-term effects
on earnings.
c. it provides a faster return of funds over time.
d. it is inexpensive.
The idea experience phase of the creative process is often the least interesting part of
the process.
Timing has little to do with the success or failure of a new venture.
Firms need to be public about their ethical values and expectations.
A consumer driven marketing philosophy often relies on direct selling.
Most entrepreneurs hire lawyers to brief them on the legal issues surrounding a new
venture.
Increasing market share by acquiring a firm in the company’s industry is one reason for
the acquisition.
The basic rule for privately held businesses is this: The owner should develop a
succession plan.
List and describe three pitfalls in selecting a new venture.