Fundamentals of Management, 10e (Robbins)
Chapter 15a Entrepreneurship Module
1) An entrepreneurial venture and a small business ________.
A) are superficially similar
B) are identical
C) have nothing in common
D) are impossible to tell apart
2) One key difference between an entrepreneurial venture and a small business is that the
entrepreneurial venture focuses on ________.
A) productivity
B) efficiency
C) quality
D) innovation
3) When it was first starting out, the Viking Range company qualified as an entrepreneurial
organization because its products were ________.
A) high in quality
B) expensive
C) innovative and different
D) loved by serious cooks
4) Besides being innovative in some way, a second defining characteristic of an entrepreneurial
venture is that it is ________.
A) small in size
B) focused on growth
C) dedicated to quality
D) original and creative
5) An “accidental entrepreneur” is someone who became an entrepreneur because he or she
________.
A) always had a dream to start a company
B) lost his or her job
C) identified a great opportunity
D) quit his or her job
6) In the wake of high unemployment, statistics show that entrepreneurship is ________.
A) low
B) high
C) falling
D) neither rising nor falling
7) After four years, ________ business.
A) 56 percent of entrepreneurial ventures are out of
B) 56 percent of entrepreneurial ventures are still in
C) 31 percent of entrepreneurial ventures are out of
D) two-thirds of entrepreneurial ventures are out of
8) Survival rates of entrepreneurial ventures that started in a recession are ________ those that
started in an expansion.
A) somewhat greater than
B) less than
C) about the same as
D) much greater than
9) In most cases, the first step in the initial (pre-planning) phase of the entrepreneurial process is
this.
A) planning the venture
B) identifying potential opportunities
C) exploring finance options
D) researching the venture’s feasibility
10) Which of the following is typically involved in exploring the entrepreneurial context of a
new venture?
A) researching the venture’s feasibility
B) uncovering business ideas
C) exploring finance options
D) pinpointing potential competitive advantages
11) Uncovering business ideas, looking at competitors, and exploring financing options are part
of this phase of the entrepreneurial process.
A) identifying competitive advantage
B) exploring business forms
C) researching the venture’s feasibility
D) identifying potential opportunities
12) This is an important part of researching a firm’s feasibility.
A) exploring finance options
B) researching the legal business forms
C) pinpointing potential competitive advantages
D) identifying potential opportunities
13) During the first step of the planning phase of an entrepreneurial venture, this is
accomplished.
A) selecting a legal business organization form
B) stating a mission
C) selecting an organizational design
D) performing a copyright search
14) During the organizing phase of an entrepreneurial venture, an entrepreneur ________.
A) states a mission
B) selects a legal business organization form
C) creates a business plan
D) selects an organizational design
15) After the startup has been planned and organized, the next step is ________.
A) prototyping the product or service
B) creating a top management team
C) financing the venture
D) launching the venture
16) During the launching of a venture, which of the following is accomplished?
A) creating a top management team
B) establishing a mission
C) setting goals and strategy
D) patenting the product or service
17) Once an entrepreneurial venture is actually up and running, the entrepreneur switches to a
________ role.
A) managerial
B) ceremonial figurehead
C) background
D) subordinating
18) This is the simplest and briefest type of business plan.
A) synopsis-type plan
B) full business plan
C) summary business plan
D) executive summary
19) This type of business plan is a step up from the simplest type of business plan.
A) summary business plan
B) executive summary
C) synopsis-type plan
D) full business plan
20) This type of business plan is a step down from the most complete type of business plan.
A) summary business plan
B) full business plan
C) executive summary
D) synopsis-type plan
21) This is the most complete and comprehensive type of business plan.
A) executive summary
B) full business plan
C) summary business plan
D) synopsis-type plan
22) A brief mission statement of an entrepreneurial venture would be included in this section of a
full business plan.
A) analysis of opportunity
B) description of the business
C) executive summary
D) analysis of the context
23) This section of a full business plan would include possible income statements for the next
three years.
A) financial data and projections
B) executive summary
C) analysis of opportunity
D) description of the business
24) Identification of the organization’s key personnel would be included in this section of a full
business plan.
A) analysis of the context
B) analysis of opportunity
C) description of the business
D) executive summary
25) This section of a full business plan would include a description of the demographics of the
target market for the organization.
A) description of the business
B) financial data and projections
C) executive summary
D) analysis of opportunity
26) This section of a full business plan would include an assessment of the industry of the
venture and how it fits into the overall economic climate.
A) analysis of context
B) description of the business
C) financial data and projections
D) analysis of opportunity
27) The form of legal ownership that an entrepreneur chooses for a venture primarily affects
these concerns.
A) profit and productivity
B) taxes and liability
C) liability and planning
D) taxes and revenue
28) Entrepreneurs should take great care when choosing a form of legal ownership because once
one form is chosen, it is ________ to change it to another form.
A) impossible
B) very difficult
C) easy
D) rather embarrassing
29) Which of the following is NOT a way to organize an entrepreneurial venture?
A) partnership
B) corporation
C) cooperative association
D) sole proprietorship
30) Many small entrepreneurial firms don’t have a deliberately planned organizational structure
because ________.
A) they are inefficient
B) small firms never need structure
C) the IRS prevents them from having a structure
D) one person does “everything”
31) In general, an entrepreneurial venture that sees ________ as its competitive advantage would
tend to be ________ in structure.
A) efficiency; organic
B) efficiency; mechanistic
C) innovation; mechanistic
D) innovation; formal
32) In general, an entrepreneurial venture that sees ________ as its competitive advantage would
tend to be ________ in structure.
A) efficiency; organic
B) efficiency; informal
C) innovation; mechanistic
D) innovation; informal
33) An entrepreneurial venture that manufactures low-cost generic pills would be likely to be
________.
A) very organic in structure
B) very innovative
C) fairly mechanistic in structure
D) very informal in structure
34) An entrepreneurial venture whose goal is to create humorous video games would be likely to
be ________.
A) very organic in structure
B) highly centralized
C) fairly mechanistic in structure
D) very mechanist in structure
35) When hiring, entrepreneurs are more likely to make sure that these two elements are a good
match than traditional HRM managers.
A) job skills and organizational needs
B) job qualifications and organizational requirements
C) formal job training and organizational requirements
D) values and organizational culture
36) At an entrepreneurial organization, job candidates are more likely to hear about ________
than they will at conventional organizations.
A) benefits
B) monetary compensation
C) advancement through the ranks
D) learning opportunities
37) Which of the following statements regarding an “entrepreneurial personality” is true?
A) Finding a set of personality traits for an entrepreneurial personality is much easier than for
leaders.
B) Finding a set of personality traits for an entrepreneurial personality is more difficult than for
leaders.
C) There is no specific set of personality traits that all entrepreneurs share.
D) There has been research on this topic as to date.
38) Which of the following terms does not fit the classic profile of the successful entrepreneur?
A) high energy
B) reflective
C) persistent
D) resourceful
39) In general, entrepreneurs tend to ________ more than the average person.
A) cut corners
B) take risks
C) avoid risks
D) avoid cutting corners
40) A person with a proactive personality is someone who ________.
A) takes action
B) avoids taking action
C) is entrepreneurial
D) is not entrepreneurial
41) People who become entrepreneurs often have ________.
A) family money
B) no family money
C) family members who are entrepreneurs
D) no family members who are entrepreneurs
42) Perhaps the best predictor of whether or not a person will become an entrepreneur is how
________ she is.
A) proactive
B) talented
C) likeable
D) desperate
43) The key to the proactive personality is that a proactive person feels that he or she can
________ any environment.
A) adapt to
B) change
C) be successful in
D) be well liked in