The person who sells the franchise is usually required to do all of the following except:
a. pay a fee.
b. provide professional management training to the unit’s staff.
c. help out with financial assistance.
d. provide continuing aid and a guidance to the person buying the franchise.
Which of the following terms refers the inaugural breakthroughs launched from
experimentation and determined vision?
a. radical innovation
b. incremental innovation
c. collective entrepreneurship
d. strategic management
Which of the following is not one of the phases in the creative process?
a. background or knowledge accumulation
b. evaluation and implementation
c. the incubation process
d. preliminary investigation
A variable cost
a. changes in the same direction and in inverse proportion to changes in operating
activity.
b. changes in the opposite direction and in direct proportion to changes in operating
activity.
c. changes in the same direction and in direct proportion to changes in operation
activity.
d. is synonymous with labor costs
If an entrepreneur concludes that an innovation will withstand any legal challenge, a
patent should be
a. dropped.
b. pursued.
c. integrated.
d. obfuscated
One of the advantages of public offerings is
a. liquidity.
b. disclosure.
c. requirements.
d. cost.
Which of the following statements is true?
a. Successful innovations are clear and focused.
b. Successful innovations are directed toward unclear applications.
c. Most successful innovations are detailed and ambiguous.
d. Successful innovations are profit motivated.
Which of the following was one of the factors Drucker mentions to explain the
development of the entrepreneurial economy?
a. the rapid evolution of technology and knowledge
b. demographic trends
c. government regulation
d. a robust venture capital market
Entrepreneurs with a drive to achieve want to
a. compete.
b. watch others succeed.
c. take great risks.
d. control and dominate.
Market segmentation is
a. the process of categorizing products into different segments
b. the process of identifying a specific set of characteristics that differentiate one group
of consumers from the rest
c. the process of segmenting the sales force
d. heavily psychographic in nature
Which of the following statements is true?
a. The right brain helps people analyze and verbalize.
b. The right brain helps people understand analogies and imagine things.
c. The left brain helps people understand analogies and imagine things.
d. Right and left brain concepts are meaningless.
One of the easiest capital budgeting methods to understand is
a. net present value.
b. the internal rate of return.
c. the payback method.
d. the strategic analysis approach.
In shaping the ultimate success or failure of a new venture, which of the following
statements is applicable?
a. A single strategic variable is usually responsible.
b. A single strategic variable is seldom responsible.
c. A single strategic variable that frequently changes is responsible.
d. A single strategic variable that influences the entire outcome is responsible.
The idea experience phase of creativity is also referred to as
a. the eureka factor
b. the big bang theory
c. the wow theory
d. the light bulb going on
A type of successor who is interested in efficiency, internal control, and effective use of
resources would be considered a(n)
a. managerial successor.
b. entrepreneurial successor.
c. opportunistic successor.
d. family successor.
How many people in America have net worth in excess of $1 million?
a. less than 100,000
b. about 200,000
c. about 500,000
d. more than l,000,000
Characteristics often attributed to the entrepreneur include:
a. Commitment, determination, and perseverance
b. Prefers to be a loner
c. Power hungry
d. Ability to be indecisive
Which of the following is an indicator that an entrepreneur’s business is failing?
a. other firms selling advanced products
b. retailer overstocked
c. liquidation
d. R&D budget proportionally less than competition
Long-term debt is used for
a. start-up capital.
b. purchase of property or equipment.
c. payment of payroll.
d. both a and b.
The entrepreneurial motivations of individuals relate to the entrepreneur, the
environment, and the venture.
A gross margin ratio of 38 percent means that for every $1 of sales, a firm produces 62
cents of gross margin.
Depending on the situation, some qualities or characteristics a successor should possess
are more important than others.
Only major strategic decisions need to be supported through marketing research.
Lack of any time frame to accomplish things is an indicator of the pitfall known as no
realistic goals.
Entrepreneurs are not heroes in today’s marketplace.
Public offering is a term used to refer to corporations taking public donations to raise
capital.
Generally, the larger and more successful the franchisor, the greater the franchise fee
that is charged.
The manufacturing segment of the business plan should identify key personnel, their
responsibilities and their positions, and career experience that qualifies them for those
particular roles.