Ratio analysis can be applied from which of the following directions?
a. vertical only
b. vertical and horizontal
c. horizontal only
d. external and internal
Which of the following are suggestions to minimize legal costs?
a. visit the lawyer during normal hours of operation
b. have the lawyer custom design forms specifically for you
c. always handle matters personally
d. try to avoid hiring a lawyer if and until an emergency requires it
Design patent protection lasts for _____ years.
a. 10
b. 12
c. 14
d. 20
Research shows that many privately held firms go out of business within
a. one year.
b. 25 years.
c. two years.
d. 10 years.
Which of the following would be most commonly used for long-term financing?
a. insurance companies
b. trade credit
c. finance companies
d. leasing companies
Business-related reasons for selling do not include which of the following?
a. The owner may be in trouble with suppliers.
b. Changes in leasehold conditions.
c. Changes in the product supply chain.
d. Changes in zoning which affect the business.
The traditional accounting equation that verifies the accuracy of the entrepreneur’s
balance sheet is
a. assets = liabilities + owners’ equity.
b. assets + liabilities = owner’s equity.
c. assets + owner’s equity = liabilities.
d. assets = liabilities – owner’s equity.
The first step in planning a strategy of entrepreneurship for enterprise is
a. identifying specific objectives.
b. sharing the vision of innovation.
c. applying the exact tools of the entrepreneur.
d. developing radical innovation.
Which of the following are not trademarks?
a. symbols
b. mottos
c. names
d. generic words
Which of the following is not a key question a prospective buyer needs to ask in buying
a business?
a. Why is the owner selling?
b. What is the owner’s personal net worth?
c. How many of the personnel will remain with the firm?
d. What type of competition exists?
For entrepreneurs, vision describes
a. where the entrepreneur wants to go.
b. eyesight.
c. people.
d. the future.
The innovation process involves only the development of a good idea.
Which of the following is not a shortcoming that many closely held ventures possess?
a. insufficient controls
b. lack of management depth
c. high equity and low debt
d. divergent goals
An advantage to buying an on-going business is
a. reduced concern over future operations.
b. time and effort are reduced
c. it may be purchased at a bargain price.
d. all of the above.
Which of the following can help entrepreneurs carry out the evaluation and
implementation stage?
a. increasing energy level
b. hide your ideas from knowledgeable people
c. avoid advice from others
d. ignore hunches and feelings
Which is a true statement about entrepreneurs?
a. Entrepreneurs are doers and thinkers.
b. All you need is money to be an entrepreneur.
c. Ignorance is bliss for an entrepreneur.
d. Inheriting a business is the best way to become an entrepreneur.
The ‘dark side’ of entrepreneurship refers to
a. a destructive force within the energetic drive of entrepreneurs.
b. the part of entrepreneurship that is most exciting.
c. a misunderstanding about the results of entrepreneurship.
d. another myth of entrepreneurship.
Inhibitors to marketing research include all of the following except:
a. cost
b. irrelevancy
c. complexity
d. distribution
When one discusses upside gain and downside loss, one is talking about
a. inventory turnover.
b. risk versus reward.
c. asset pricing.
d. liquidation pricing
Which of the following is not a contextual aspect to be considered in an effective
succession plan?
a. time
b. managerial ability
c. entrepreneurial vision
d. cost
An indicator of the planning pitfall of ‘no commitment or dedication’ is
a. no experience in the business.
b. excessive procrastination.
c. no recognition of future problems.
d. lack of understanding about the industry.
Which is an influencing factor in succession?
a. family and business cultural issues
b. government regulation
c. current economic conditions
d. the competition
The owner of a copyright may do all of the following except
a. reproduce the work.
b. deduct the intrinsic value of the rights from one’s taxes
c. perform the work publicly.
d. display the work publicly.
Michael Gerber, the author of The E-Myth, contends:
a. the entire field of study in entrepreneurship is a myth
b. there is no such thing as entrepreneurship
c. today’s business owners are not true entrepreneurs
d. everybody in business is an entrepreneur
All of the following are reasons for the growth of corporate entrepreneurship except
a. a desire to dramatically increase profitability.
b. a rapidly growing number of new and sophisticated competitors.
c. a sense of distrust in the traditional methods of corporate management.
d. an exodus of some of the best people out of corporations.
Understanding the entrepreneur is only part of understanding the entrepreneurial
process.
Sophisticated investors are wealthy individuals who invest more or less regularly in
new and/or early- and late-stage ventures.
The four major dimensions considered in the dynamic states approach are the
individual, the environment, the organization, and the process.
A budget is one of the most powerful tools that an entrepreneur can use in planning
business operations.
Very large corporations, such as 3M, have really struggled with corporate
entrepreneurship ventures.