With psychic risk you fear
a. losing your sanity
b. failure.
c. money
d. adapting.
Sales growth is a critical factor in the
a. prestart-up phase.
b. poststart-up phase.
c. start-up phase.
d. evaluations phase.
Which of the following is not a critical factor that should be addressed in planning a
venture?
a. milestones
b. flexibility
c. specific profit goals
d. realistic goals
The macro view of entrepreneurship presents factors exhibiting a strong
a. internal locus of control
b. external locus of control
c. environmental locus of control
d. contemporary locus of control
The most common source of debt financing is
a. trade credit.
b. factoring.
c. commercial banks.
d. finance companies.
The rate used to adjust future cash flows to determine their value in present-period
terms is the
a. current interest rate.
b. cost of capital.
c. rate determined by the ratio of assets to liabilities.
d. present value.
The process of trademark registration is
a. expensive.
b. impossible.
c. one that must be handled by a lawyer.
d. inexpensive.
Which of the following costs do not add to the cost of franchising?
a. insurance
b. prepaid utility bills
c. legal and professional fees
d. opening product inventory
Which of the following is not a disadvantage of a major franchise?
a. franchise fees
b. control exercised by the franchisor
c. track record of the franchisor
d. awareness of some of the unfilled promises from franchisors
An agreement not to compete is also known as
a. a trade restriction clause.
b. a legal restraint of trade.
c. a waiver of competition clause.
d. a deferential sale of business clause.
Research on family firms demonstrates which of the following facts?
a. only 16 percent make it to a third generation
b. many family firms cease to exist after one month
c. only nine out of ten make it to a second generation
d. only 3 percent make it to the next generation
A new venture must go through _____ phases.
a. five
b. two
c. three
d. seven
Entrepreneurship within the corporate structure allows employees to develop their ideas
without
a. losing their jobs to more loyal subordinates.
b. the risk associated with leaving the company.
c. making their spouses angry that they quit their jobs.
d. fear of being promoted.
When considering financial difficulties, which of the following statements constitutes a
forcing event?
a. The business has a loss for one quarter.
b. A lender demands the removal of an owner-manager before lending the necessary
funds.
c. The business does not make a substantial profit for the first year of business.
d. The business has record losses over a holiday season.
During the prestart-up phase of a new venture, which of the following are among the
crucial five factors for success?
a. uniqueness of venture and price
b. expected growth and price
c. uniqueness of venture and expected growth
d. price and timing
An additional consideration to keep in mind when negotiating to purchase an existing
business includes requesting that the seller retain __________ in the firm.
a. a minority interest
b. a majority interest
c. either a minority or majority interest
d. none of the above
The major thrust of corporate entrepreneurship is to
a. encourage greater risk taking.
b. raise profitability.
c. encourage innovation.
d. increase morale.
An entrepreneurial successor is someone who
a. is ingenious, creative, and driven
b. is loyal
c. has a profit orientation
d. has an administrative orientation
All of the following are characteristic of entrepreneurial cultures except:
a. action orientation
b. hierarchy
c. episodic use of required resources
d. multiple informal networks
One could correlate _____ with a high energy level.
a. creativity
b. working
c. luck
d. reading
Throughout the years, many myths have arisen about entrepreneurship as a result of?
a. a lack of research about entrepreneurship
b. a lack of interest in the field
c. a total disregard for the truth
d. a destructive attitude by government
In the simple linear regression analysis equation, Y = a + bx, b represents
a. the slope of the line.
b. expected sales.
c. the constant.
d. the factor on which sales are dependent.
Which of the following is an advantage to developing an entrepreneurial environment?
a. a good benefits program.
b. retention and motivation of the best employees
c. creation of a workforce that adheres to strict rules
d. a flexible work environment regarding time off work
List some activities that have come to be associated with social entrepreneurship.
Private placement is a method of raising capital through the private placement of
securities.
Individuals may avoid corporate entrepreneurial behavior due to the impact of
traditional management techniques.
Truly creative people are always geniuses.
Adjusted tangible book value is a popular method of valuation.
The triple bottom line is an accounting framework that focuses on optimizing
short-term financial performance.