Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
True / False
1. Formal processes are independent and improve the functions of a department.
a.
True
b.
False
2. There is probably no single best organizational structure for all types of ventures in all situations.
a.
True
b.
False
3. An economic base is the region from which the entrepreneur expects to draw customers.
a.
True
b.
False
4. The United States is divided into Standard Metropolitan Statistical Areas (SMSAs), which are geographic areas that
include a major metropolitan area.
a.
True
b.
False
5. Risk management is a set of policies and decision-making processes that reduce or eliminate risks associated with
having employees.
a.
True
b.
False
6. The economic base of a region or community is simply the major source of income for the area.
a.
True
b.
False
7. The Family and Medical Leave Act provides for up to 12 weeks of paid leave for employees who are dealing with
family issues.
a.
True
b.
False
8. Today it is much easier than it used to be for a new venture to achieve total in-house control of its value chain.
a.
True
b.
False
9. Founder's stock at issuance is probably valued at the lowest level it will ever be, relative to an investor's stock value.
a.
True
b.
False
10. The number of shares authorized when a corporation is formed is purely arbitrary.
a.
True
b.
False
Multiple Choice
11. Entrepreneurs must find the best organizational structure considering all of these factors except:
a.
Existing contextual factors
b.
Design factors
c.
Structural factors
d.
All of the above factors should be considered
e.
Only A and B should be considered
12. Informal networks are:
a.
The same as formal networks, but conducted through social media
b.
The skeleton of the body of the organization
c.
The established policies of the organization
d.
The real power base in the organization
e.
None of these
13. ____ is fundamentally the personality of the organization - the reflection of the company's vision and goals.
a.
Culture
b.
Process
c.
The founder
d.
Mission
e.
Organizational design
14. To the new venture, teams of businesses in its network are also known as:
a.
A sharing co-op
b.
A trade area
c.
Strategic Alliances
d.
True partnerships with written agreements
e.
None of these choices
15. Distributed companies may use websites providing all of the following services except:
a.
Management
b.
Marketing
c.
Supply chain management
d.
Virtual meetings
e.
Distributed companies may use all of these choices
16. Companies are typically distributed in all of the following ways except ____.
a.
geographically
b.
centrally
c.
organizationally
d.
temporally
e.
by stakeholder groups
17. ____ outsource everything except their core-management function.
a.
Virtual organizations
b.
Most startups
c.
Regional organizations
d.
Manufacturing organizations
e.
None of these choices
18. Locating a site for a new business normally begins with identifying the ____ that seems best suited to the type of
business being started.
a.
area of the country
b.
state
c.
community
d.
demographic
e.
None of these choices
19. When entrepreneurs develop job descriptions, they should focus on the duties and responsibilities of a particular job as
well as the ____.
a.
legal requirements
b.
organizational chart
c.
behavioral profile
d.
process map
e.
job candidate
20. The ____ is fundamentally the personality of the organization and forms the basis for all the activities that the
company undertakes.
a.
process
b.
founder
c.
vision
d.
culture
e.
structure
21. Which of the following is not a component of the entrepreneurial organization?
a.
Formal processes
b.
People
c.
Location
d.
Culture
e.
None of these choices; all of these are components of the entrepreneurial organization.
22. A way in which virtual companies become more flexible and responsive is by forming ____, or teams of businesses to
share resources and reduce costs.
a.
virtual partners
b.
strategic alliances
c.
R&D teams
d.
temporary networks
e.
None of these choices
23. The three key factors for determining value in real estate are ____.
a.
location, location, and location
b.
economic base, financial incentives, and demographics
c.
trade area, competition, and demographics
d.
accessibility, cost of labor, and technology
e.
location, competition, and cost
24. The region from which the entrepreneur expects to draw customers is called the ____.
a.
economic base
b.
SMSA
c.
community development
d.
trade area
e.
market
25. Enterprise zones are common locations for ____.
a.
manufacturing
b.
distributing
c.
retail
d.
wholesaling
e.
restaurants
26. Which of the following is not a formal process?
a.
Planning systems
b.
Control mechanisms
c.
Compensation
d.
Team building
e.
Reward policies
27. All of the following are alternatives to conventional facilities except ____.
a.
incubators
b.
shared space
c.
leasing a building
d.
temporary tenant agreements
e.
mobile locations
28. People in ____ networks tend to gravitate toward each other in an effort to accomplish tasks in a more efficient and
effective manner than may be dictated by the organizational chart.
a.
virtual
b.
formal
c.
informal
d.
communication
e.
grapevine
29. ____ are distinct from other plans in that they are subject to the ERISA rules for employee retirement programs.
a.
Stock options
b.
Profit-sharing plans
c.
Bonus plans
d.
Capital appreciation incentives
e.
None of these choices
30. During the interview process for new hires, it is recommended that entrepreneurs ask ____.
a.
the age of the candidate
b.
open-ended questions
c.
lifestyle questions
d.
questions about personal beliefs
e.
None of these choices
31. The Age Discrimination in Employment Act applies to all companies with ____ or more employees.
a.
20
b.
50
c.
70
d.
100
e.
300
32. The most successful new ventures adopt a team-based approach with a/an ____ structure.
a.
flatter
b.
open
c.
interactive
d.
virtual
e.
All of these choices
33. The first and best places for an entrepreneur to look for an employee include all of the following except ____.
a.
the company's current employees
b.
online job search sites
c.
subcontractors
d.
professional advisors
e.
referrals from people the entrepreneur trusts
34. The professional employer organization (PEO) is used for ____.
a.
employee leasing
b.
enforcing laws by the EEOC
c.
interviews
d.
drug screening
e.
risk management
35. Using a/an ____ agreement is one way to make sure that only stock that has been earned will be distributed.
a.
employee stock ownership
b.
shareholder
c.
stock-vesting
d.
minority ownership
e.
preferred stock
36. Stock issued to the first shareholders of the corporation or assigned to key management as part of a compensation
package is ____.
a.
preferred stock
b.
founder's stock
c.
stock-vesting
d.
dilution
e.
profit sharing
37. A basic ownership interest in the company whereby holders share in both the successes and the failures of the business
and benefit through dividends is ____.
a.
common stock
b.
founder's stock
c.
preferred stock
d.
retained earnings
e.
None of these choices
38. When an entrepreneur specifies that rewards and bonuses be linked to profits and performance of both the individual
and the company, a/an ____ is in place.
a.
annual bonus
b.
deferred compensation plan
c.
profit sharing plan
d.
common stock plan
e.
capital appreciation plan
39. When a series of goals are set by the company with input from the employee, and the employee receives payment as
each goal is reached, this is called a ____.
a.
deferred compensation plan
b.
profit sharing plan
c.
capital appreciation plan
d.
bonus plan
e.
personal incentive plan
40. Employees have the right to participate in the profits of the company at a specified percentage, while not being full
shareholders with voting rights, if they have ____.
a.
an annual bonus
b.
a piece-rate plan
c.
capital appreciation rights
d.
a profit-sharing plan
e.
a deferred compensation plan
Subjective Short Answer
41. Define company culture. Why is it important?
42. What factors are important to consider when choosing a business site?
43. There are three specific considerations for choosing a retail site. What are they?
44. Under the law administered by the Equal Employment Opportunity Commission (EEOC), before the point of hire you
may not ask about what aspects of an applicant's life?
45. Define virtual enterprise.
46. Define incubators.
47. Discuss the advantages of human resource leasing.
48. Define risk management.
49. Briefly discuss the Civil Rights Act and Title VII of the Civil Rights Act.
50. Briefly discuss founder's stock.
