In order to develop an entrepreneurial environment, factors that organizations need to
be aware of include:
a. management support and rewards
b. autonomy and time
c. business plans and inventions
d. a and b should be considered
The cash flow budget describes
a. cash inflows/cash outflows.
b. cash outflows/accounts receivables.
c. interest income/interest expense.
d. profits/costs.
Which of the following statements is true?
a. The right brain is more important in the creative process than the left brain.
b. The left brain is more important in the creative process than the right brain.
c. Both sides of the brain are important to the creative process.
d. Motivation, not the brain is the key to the creative process.
When it comes to strategic planning, most small firms
a. do quite well.
b. survive and prosper.
c. realize cost savings, accurate forecasting, and increased sales.
d. really do not engage in true strategic planning.
The registration of a trademark has a lifetime of
a. 20 years plus 5-year renewable periods.
b. 25 years.
c. 10 years plus 10-year renewable periods.
d. the lifetime of the owner.
Which of the following are the two major variables needed to identify specific market
segments?
a. demographic and benefit.
b. demographic and geographic.
c. geographic and benefit.
d. economic and financial.
Methods for going international include all of the following except
a. importing
b. exporting
c. licensing
d. foreign reclamation
One of the most recent legal challenges to management succession came from the
a. Anderson Manufacturing Corporation case.
b. Johnson Brothers case.
c. Oakland Scavenger Company case.
d. Willy & Willy Inc. case.
How many months of the year should be illustrated in the first pro forma income
statement?
a. three
b. eight
c. six
d. twelve
Of the following, which is not typically identified as a bootstrapping technique?
a. sharing office space
b. hiring seasoned veterans
c. encouraging customers to pay early
d. trading equity for services
When outcomes meet or exceed expectations, _____ is positively reinforced.
a. entrepreneurial behavior
b. entrepreneurial motivation
c. desire for success
d. entrepreneurial ego
General sources for a market feasibility analysis include
a. reliability studies.
b. statistical analyses.
c. pricing data.
d. supplier data.
Which of the following would not be considered as encouraging to an entrepreneurial
environment?
a. uniform compensation
b. identifying potential entrepreneurs
c. top management sponsorship of entrepreneurship
d. promotion of entrepreneurship through experimentation
When one designs a unique good or service, the individual is said to have used a(n)
____approach to starting the business.
a. new-new
b. old-old
c. old-new
d. new-old
What hidden costs are involved when establishing the value of a firm?
a. insufficient controls and costs
b. divergent expenses
c. personal expenses
d. travel expenses
When does a business have to increase its sales annually to net as much as it did in the
previous year?
a. when profits are rising as fast as sales
b. when profits are not rising as fast as sales
c. when sales are trending upward
d. both a and c
Knowing a venture’s pre-money valuation is not possible.
High- and low-performing firms have many similarities and differences in their
long-range planning efforts.
What are the uses of trademarks and how can they be invalidated?
What are the five specific feasibility phases that a new venture will go through?
Many entrepreneurs do not understand the marketing life cycle of a new product.
‘Ethos’ means morality.
Uniqueness in a product or service can be demonstrated through a new-new approach or
a new-old approach.
The patent process is not complex; neither does it require careful planning.
A code of conduct is a statement of ethical practices or guidelines to which an
enterprise adheres.