Entrepreneurs sense potential in business problems by asking
a. who is to blame for failures?
b. what about profits?
c. what if and why not?
d. farfetched, unimaginative questions
A written succession strategy
a. is part of an entrepreneur’s will.
b. prepares the entrepreneur for developing a management continuity strategy and
policy.
c. must be reviewed by the government.
d. must be reviewed by the family.
A key concept in developing an expense budget is that of
a. fixed costs.
b. labor costs.
c. taxes.
d. rent.
Evaluation of new-venture proposals includes all the following processes except
a. oral presentation
b. initial screening
c. evaluation of the business plan
d. a product prototype
The person who gets the franchise is usually required to do all of the following except:
a. invest money in the operation.
b. maintain a specified quality of performance.
c. pay a fee.
d. design a logo for the unit.
The study of entrepreneurship is
a. based on the field of management
b. based on the field of accounting
c. based on the field of sociology
d. interdisciplinary
Outside help in succession planning should be considered when
a. the entrepreneur’s ego gets in the way of a succession plan
b. the family doesn’t want the business
c. the government requires it
d. market competition is heating up
The concept of the net present value method works on the premise that
a. a dollar today is worth less than a dollar in the future.
b. a dollar today is worth the same in the future.
c. a dollar today is worth more than a dollar in the future.
d. a dollar today cannot be measured in future dollars.
Analysis of a firm’s external and internal environments provides the firm with the
information to develop
a. a degree of uncertainty
b. administrative experience
c. competitive strengths
d. strategic intent and strategic mission
Which of the following statements may be the most important in new venture creation?
a. the pro forma balance sheet
b. the income statement
c. the cash flow statement
d. the profit statement
At start-up time, forms of financing includes all but which of the following?
a. equity
b. private equity
c. equitable payback
d. bank loans
Which of the following is a true statement about team building?
a. Most successful entrepreneurs have highly qualified teams that handle everything
having to do with the development of the venture.
b. Compared to the owner, personnel are often more qualified to handle day-to-day
implementation challenges.
c. The entrepreneur has the clearest vision in the firm.
d. The entrepreneur needs a competent team to implement an idea.
The word entrepreneur is derived from the French entreprendre, which is translated as
a. to apprehend
b. to undertake
c. to compete
d. to enter and dare
From where does an S corporation take its name? corporation takes its name from
a. Subchapter S of the Internal Revenue Code
b. state law
c. S Lab
d. Uniform Commercial Code
Which of the following is (are) sources of capital for entrepreneurs?
a. equity
b. debit
c. auto leasing
d. credit cards
Which of the following is a demographic variable?
a. weight
b. hair color
c. attitude
d. income
The entrepreneur should expect to encounter a friendly and supportive audience when
presenting the business plan to potential financial sources.
In innovation through duplication, a product is simply copied.
External environmental factors do not have any effect on the succession issue.
In purchasing an existing business the first question should be: ‘Why are you selling?’
Entrepreneurs need not be concerned with establishing strategy for ethical
responsibility because they are guided by what established firms do.
A corporation can encourage entrepreneurship activities if top management sponsors
entrepreneurial projects.
With a nonroutine venture, the initial innovation will maintain the company’s
competitive advantage without new technology.
Social responsibility consists of those obligations that society has to businesses.
The four basic types of innovation are invention, extension, duplication, and synthesis.