The most pro-active position for a corporation to take in regard to social responsibility
would be termed
a. social obligation.
b. social intensity.
c. social responsiveness.
d. social decisiveness.
If you agree that the real value of a business venture is its potential earning power,
which valuation method, more than the others, would best determine its true value?
a. adjusted tangible book value
b. price/earnings ration
c. discounted earnings method
d. either a or b
In the strategy matrix model, innovation is defined as
a. an invention.
b. something new and different.
c. copying and improving on competitor’s products.
d. using practical milestones.
Break-even analysis is used to assess
a. expected capital expenditures.
b. revenue.
c. expected product profitability.
d. future sales.
One researcher established a framework that classified social actions of corporations
into distinct categories that included
a. social obligation.
b. social responsiveness.
c. social action.
d. a and b only.
Which of the following would be considered fatal mistakes in strategic planning,
according to researcher Michael E. Porter?
a. no real competitive advantage
b. pursuing a solid competitive position
c. compromising strategy for growth
d. a and c only
Which of the following is not one of the steps in reading a business plan discussed in
the text?
a. the establishment of the unique feature in this venture.
b. the reading of the latest balance sheet.
c. the thorough reading of each section.
d. the brief review the history of the company.
Blueprints, sketches, drawings, and models are often important features to be placed in
what section of the business plan?
a. research, design and development
b. marketing
c. manufacturing
d. critical risks
How can entrepreneurs best orient their plans toward the future?
a. by informing investors of how wealthy they will be in five years.
b. by developing trends and forecasts that describe what the venture intends to do.
c. by identifying opportunities are for future investment
d. by planning 20 years ahead.
Which of the following is critical to a product’s success?
a. timing
b. marketing approach
c. objectivity
d. all of the above
The first source of succession often is
a. nonfamily outsiders.
b. professional managers.
c. family and in-house personnel.
d. friends of the family.
What is a rollup?
a. the acquisition and merging of small companies in the same market
b. of a dissolution of a partnership
c. a product-line acquisition
d. the amount of risk involved in an acquisition
The financial/capital entrepreneurial school of thought focuses on the potential profit of
the business idea.
Which of the following is not a method of collecting primary data?
a. review of government publications
b. telephone
c. mail survey
d. observation
Which of the following is a question that can be sidestepped when buying a business?
a. Where should the business be located?
b. What types of customers does this store attract?
c. What pricing strategy should the firm use?
d. All can be sidestepped.
Which is not perceived as a difficulty in long-range planning?
a. arranging vacation time
b. inadequately defined objectives
c. poor planning climate
d. inexperienced managers
Which of the following statements is not true about financial assumptions?
a. They explain how the numbers are derived.
b. They should be clear and precise.
c. They are the most integral part of the financial segment.
d. They do not necessarily correlate with information from other parts of the business.
Should a business plan/venture be turned down the first time, the entrepreneur should
a. feel defeated.
b. revise, rework, and improve the plan.
c. take it personally.
d. change careers.
The advantages of franchising include:
a. training and guidance.
b. brand-name appeal.
c. proven track record.
d. all of the above.
Which of the following statements is true?
a. Entrepreneurship is the ability to create and build a vision from practically nothing.
b. Entrepreneurship is pure luck.
c. Entrepreneurship is simply obtaining financing and starting a business.
d. Entrepreneurship has nothing to do with creating incremental wealth.
Which of the following is a type of equity financing?
a. convertible debentures
b. common stock
c. loan with warrants
d. loan without warrants
Market feasibility analysis relies on
a. organizational competence
b. the entrepreneur’s vision
c. venture capital
d. general economic trends and competitor data
The macro view can be broken down into which three areas?
a. environmental, financial, and displacement
b. financial/capital, strategic, and opportunity
c. displacement, trait, and financial
d. entrepreneurial trait, opportunity, and strategic
The first step in marketing research is to gather primary data.
Pricing becomes less of a concern when customers become aware of a product’s unique
characteristics that are superior to the competition.
The macro view of entrepreneurship includes external processes that are sometimes
beyond the control of the entrepreneur.
List and categorize the schools of entrepreneurial thought.
List and describe the sources an entrepreneur should examine to find available business
buying opportunities.
The Franchise Disclosure Document (FDD) is a legally required disclosure document
that must be presented to potential franchisees during presale discussions.
International alliances rarely require the exchange of proprietary knowledge.