When considering bankruptcy, entrepreneurs as sole proprietors normally prefer
a. Chapter 5.
b. Chapter 7.
c. Chapter 11.
d. Chapter 13.
The past is the best predictor of the future, according to which mind-set?
a. the entrepreneurial mind-set
b. the managerial mind-set
c. the cognitive mind-set
d. the risk-averse mind-set
Employee perception of _____ is critical for the success of corporate entrepreneurship.
a. equality.
b. a good benefits program.
c. interactive learning.
d. an innovative environment
All of the following are identified as stages in consumer buying behavior, according to
the family life cycle, except:
a. full nest
b. courtship
c. specialty occasion
d. sole survivor
Which of the following would be most commonly used for short-term financing?
a. insurance companies
b. trade credit
c. finance companies
d. leasing companies
Price/earnings ratio is a method of valuation that is
a. most common with public corporations.
b. not affected by market conditions.
c. not sensitive to market conditions.
d. not affected by competitors.
Overnight package delivery is illustrative of which source of innovation?
a. incongruities
b. unexpected occurrences
c. process needs
d. change in perception
Reviewing personnel of the business about to be purchased is important in order to
determine
a. whether employees with key skills will stay or leave.
b. if employees are leaving, will enough remain to operate the business.
c. the cost of replacing an employee.
d. all of the above
How does death affect the duration of a corporation?
a. A corporation usually terminates on the death of a founding shareholder.
b. A corporation is unaffected by the death of a shareholder.
c. A corporation is usually unaffected by the death of a shareholder.
d. A corporation is usually unaffected by the death of a shareholder unless a general
partner dies.
To an entrepreneur, one of the benefits of a business plan is
a. the development of operating strategies for outside evaluators.
b. benchmarks for comparing forecasts with actual results.
c. both a and b.
d. neither a nor b.
Which of the following management principles does not emanate from Steve Jobs?
a. Sell dreams, not products.
b. Put a dent in the universe
c. Say no to 1,000 things.
d. Strive to reach practical milestones.
Which of the following is not a strategy for corporate entrepreneuring?
a. promote personal growth
b. use people-style management
c. decrease the use of third-party contracts
d. allow entrepreneur to develop ideas
Sometimes consumers associate a higher price with
a. higher product quality
b. supply interruptions
c. discounted cash flows
d. product complexity
The managerial successor typically is not interested in
a. efficiency.
b. internal control.
c. effective use of resources.
d. creativity.
Which is not a trait of a successful entrepreneur?
a. desire to achieve
b. initiative
c. innovation
d. trouble fitting in
Which of the following is an aspect of the ‘dark side’ of entrepreneurship?
a. a need for control
b. a sense of distrust
c. both a and b
d. bouts of euphoria
Membership in the World Trade Organization represents __________ of the world’s
population at present.
a. 85 percent
b. 92 percent
c. 95 percent
d. 97 percent
A decision to sell toys that pass minimum safety standards but can often result in minor
accidents to children is an example of a(n)
a. illegal and ethical decision.
b. legal and unethical decision.
c. illegal and unethical decision.
d. legal and ethical decision.
The comprehensive business plan should be the result of
a. reflections on the direction of the venture.
b. continuous operations of the venture.
c. investor’s promises of capital.
d. the entrepreneur’s best guesses.
Which of the following as a factor contributing to new-venture failure?
a. product/market problems.
b. family issues.
c. personality clashes.
d. good management/poor product.
Robert C. Ronstadt put together a summary definition of entrepreneur that included
which of the following key phrases?
a. the acceptance of risk of failure
b. the dynamic process of creating incremental wealth
c. the advantage of economic endowments
d. the phenomenon of leadership
Which of the following helps account for the rise of interest in corporate
entrepreneurship?
a. A decrease in the number of sophisticated competitors.
b. An increase government regulation of small entrepreneurs.
c. An increase in corporations losing some of their best people.
d. A general increase in the number of competitors.
Each of the following are nonfamily elements under pressure and interest from outside
the firm except
a. increased insurance rates.
b. the competition changing strategy.
c. regulatory agencies.
d. customers.
One factor not found in high achievers is
a. responsibility.
b. failure to listen to feedback.
c. moderate risk taking.
d. high risk taking.
List some of the questions to ask before making a potential purchase and explain why
each is important.
If the successor and the business environment have a ‘right fit,’ the successor will be
minimally effective.
What are the major types and uses of debt financing?
Researchers uniformly agree that the easiest step in the creative endeavor is the
implementation and evaluation phase.
Few firms today realize the need for corporate entrepreneurship.
Is the firm’s advertising reaching the right people?
The principal objective of capital budgeting is to maximize the value of the firm.
‘Why is the business being sold?’ is not an important question to ask when analyzing the
viability of buying a business.
The strategic formulation school of thought emphasizes the planning process in
successful venture development.