A legal “artificial” entity that is formed by filing specific documents with a state
government is called a _____.
A. sole proprietorship
B. partnership
C. corporation
D. general partnership
A _____ displays characteristics related to the nature of a product or service itself.
A. value benefit
B. cost benefit
C. scale saving
D. cause and effect diagram
According to the SCAMPER tool, a feature that allows customers to order directly from
a Web site rather than visiting a store is an example of:
A. elimination.
B. adaptation.
C. magnification.
D. substitution.
If entrepreneurs realize that all the traditional applications for their products have
disappeared and that they have surplus products, which of the following elements of the
SCAMPER tool are they most likely to employ?
A. Sectionalize
B. Put to other uses
C. Eliminate
D. Restitute
The first step in LaRue Hosmer’s model for ethical decision making is:
A. choosing an ethical philosophy to help make choices.
B. defining the moral dimensions of a problem.
C. generating a variety of alternatives to handle a problem.
D. creating a feedback loop to check the progress of a solution.
Which of the following statements is true about me-too products?
A. For me-too products, steps in new product development process should never be
skipped.
B. The vast majority of new ideas for small businesses will be me-too products.
C. Idea generation is the longest stage in the development of me-too products.
D. Testing a me-too product’s differential advantage over competition is a wasted effort.
In the BRIE model, a business name or government registration, a phone or e-mail
address dedicated to the business, or a specific location for the firm in a home,
commercial space, or on the Internet represents:
A. exchange.
B. resource.
C. boundary.
D. intention.
_____ is a form of communication, such as coupon or contests, which encourages the
customer to take immediate action.
A. Buzz marketing
B. Sales promotion
C. Viral marketing
D. Public relations
Which of the following is an example of a cash equivalent?
A. Currency
B. Commercial paper
C. Demand deposit
D. Traveler’s check
Identify the simplest form of discrimination with regard to women and minority
entrepreneurs within the U.S. population.
A. Certification
B. Role conflict
C. Access
D. Collusion
Danielle, a graduate in fashion technology, always found it tough to find clothes for her
as she belonged to the category of plus-size. Hence, she launched her clothing brand
“Taurus Trends” that catered to the needs of plus-size and extremely tall women. If
Danielle had to collect data already existing on the Internet, such as the number of
stores catering to the clothing needs of plus-size women and their pricing, it would
typically be a(n) _____ research.
A. focus group
B. survey
C. ethnographic
D. secondary
Which of the following management philosophies refers to selecting and promoting
people based on family ties?
A. Nepotism
B. Capitalism
C. Meritocracy
D. Democracy
Which of the following would be a plus point for starting a new business?
A. Initial name recognition
B. Clean slate to begin
C. “Legacy” locations, buildings, and equipment
D. Accessibility to experienced managers and workers
Which of the following is true of the ADA Technical Assistance Program?
A. It provides specific advice to a business concerning how to comply with the
pertinent requirements.
B. It provides inspection of the workplace to determine compliance.
C. It provides affirmation services to all businesses.
D. It provides its services only to large businesses that have more than 500 employees.
Which of the following is true of the debt-to-equity ratio?
A. It measures the relative risk that a business setback could cause bankruptcy.
B. It is calculated using the formula: Total Liabilities/Total Assets.
C. If the ratio is lower, it indicates lesser solvency.
D. If the ratio is greater, it indicates increased business risk.
The problem behavior of trying the same action repeatedly without learning is called
_____.
A. perseveration
B. prevention focus
C. effectuation
D. critical observation