Evaluating franchise opportunities include finding out more about which of the
following?
a. the franchisor
b. the franchise
c. the franchisee
d. all of the above
The discounted earnings method of valuation establishes
a. potential earning power.
b. an appropriate rate for replacement.
c. expectancy of the business expenses.
d. future profits.
When Facebook went public in May of 2012, what was its starting valuation?
a. more than $10 billion but less than $50 billion
b. more than $50 billion but less than $100 billion
c. more the $100 billion but less than $150 billion
d. more than $150 billion
The entrepreneur is one who
a. dreams all day.
b. manages.
c. oversees manufacturing.
d. invents new products.
Criteria that venture capitalists use in evaluating new venture proposals include:
a. the entrepreneur’s education.
b. the entrepreneur’s travel expenses.
c. the characteristics of the product or service.
d. when they will be paid back in full.
Which of the following is not an important aspect of an entrepreneurial venture?
a. current status
b. expected needs
c. family support
d. marketing
Which of the following concepts is entrepreneurship considered synonymous with?
a. free enterprise
b. socialism
c. multimillion dollar enterprises
d. partnership
Entrepreneurs now view social/environmental issues as
a. global competition.
b. part of the future of business.
c. a minor concern.
d. affecting only certain industries.
One step an organization can take to make its corporate environment more innovative is
to
a. gain top management support of an entrepreneuring program.
b. fire top management and hire young executives.
c. change the dress code to ‘casual attire.’
d. give across-the-board raises.
Which of the following statements is not true?
a. Creative ideas never come out of the blue.
b. Ideas often emerge during activities unrelated to the enterprise.
c. Answers usually come to an individual incrementally.
d. Creative individuals allow their subconscious to mull over information.
In determining the potential market, one should look _____ into the future.
a. one year
b. three to five years
c. ten years
d. three months
Which of the following influences the choice of marketing philosophy?
a. competitive pressure
b. economic outlook
c. Dow Jones Industrial averages
d. cost of living index
Potential earning power, which determines the true value of the firm, is best calculated
using
a. the price/earnings ratio method.
b. the adjusted tangible book value method.
c. the discounted earnings method.
d. the adjusted tangible book value method.
A person who loses an infringement battle in court may have to pay
a. extra legal fees.
b. damages of up to five times the actual amount.
c. higher profits due to the infringement.
d. the taxpayers back.
Collective entrepreneurship, as a concept, refers to
a. the collective spirit of innovation that resides in the firm’s founder
b. the joint recognition of the CEO and CFO as champions of innovation
c. entrepreneurial thinking that is diffused throughout the company
d. socialist enterprising
The Regulation D exemptions include all of the following except:
a. placements of up to $5 million.
b. placements of less than $500,000.
c. placements in excess of $5 million.
d. placements in excess of $l0 million.
One reason to keep projections in perspective is
a. long histories.
b. fluctuating markets.
c. certain environments.
d. both a and b.
Regulation D defines separate exemptions that are based on the amount of money being
raised. Which is not a rule that accompanies these exemptions?
a. rule 503
b. rule 504
c. rule 505
d. rule 506
Entrepreneurs usually have an internal locus of control.
Surprisingly, growth of sales is generally not considered a critical factor in assessing
new ventures.
Entrepreneurs are always looking for unique opportunities to fill needs or wants.
Replacement value of a business is based upon the value of each asset if it had to be
replaced at a certain cost.
The cognitive ability of entrepreneurs to acquire and transform information has yet to
be studied.
Most entrepreneurs are well schooled in the technology associated with their ventures.