A reason new venture managers lack knowledge in the strategic planning process is
because
a. they refuse to learn new things.
b. they have minimal exposure to the planning process.
c. they attempt to implement actions too quickly.
d. they are overconfident.
Entrepreneurial characteristics include
a. a strong drive to succeed.
b. superior intelligence.
c. high risk taking.
d. low morals.
New ventures are important to the economy in terms of
a. innovation.
b. employment.
c. both a and b.
d. continuing the American way of life.
Which is not a key question to ask when buying a business?
a. Why is the business being sold?
b. Is the building heated with gas or electricity?
c. What is the condition of the inventory?
d. How many of the employees will remain?
Unique managerial concerns of growing ventures encompass all of the following
except:
a. the one-man-band syndrome
b. community pressures
c. time-management issues
d. agency problems
The ‘corridor principle’ is best described by which of the following statements?
a. If at first you don’t succeed, try, try, again.
b. Being in the right place at the right time.
c. With every new venture launched, new and unintended opportunities arise.
d. Luck happens when preparation meets opportunity.
Which of the is not a distinct form of tolerance for failure?
a. moral failure
b. innovation failure
c. personal failure
d. uncontrollable failure
What is an often overlooked asset when acquiring a new business?
a. Records
b. Buildings
c. Equipment
d. None of the above
Internal venture capital that is set aside for special entrepreneurial projects is termed:
a. intracapital.
b. project capital.
c. intrapreneurial seed money.
d. collective capital.
The emerging body of law governing cyberspace is often referred to as:
a. netlaw.
b. cyberlaw.
c. interlaw.
d. legal web.
The contribution margin approach formula is
a. CM = SP (VC – FC) S
b. S = SP (FC – VC)
c. SP = (FC – VC) S
d. FC = (SP – VC) S
When going public with public offerings an advantage might be
a. size of the company’s capital amount.
b. the company’s size.
c. the company’s market share.
d. the product price.
All of the following are recognized as advantages of partnerships except:
a. ease of formation
b. possible tax advantages
c. direct rewards
d. lack of continuity
Which of the following is a true statement about raising capital?
a. All capital is raised through formal sources.
b. All capital is raised through debt sources.
c. Capital is easy to get.
d. It often takes a great deal of time to raise capital.
Investments in which returns are expected to extend beyond one year are referred to as
a. capital investments.
b. stocks.
c. bonds.
d. mutual funds.
The completed business plan provides the entrepreneur with
a. a tool for communicating with financial sources.
b. a sense of well-being.
c. a product-launch timetable.
d. a nicely designed booklet.
Business-related reasons for selling may include all but which of the following?
a. The owner may be in trouble with suppliers.
b. Changes in leasehold conditions.
c. Changes in zoning which affect the business.
d. All of the above.
Most innovations result from
a. the total genius of inventors.
b. a conscious and purposeful search for new opportunities.
c. lucky guesses.
d. the subconscious adaptation to reality.
3M’s Post-it notes are an example of the
a. theory of declining return
b. corridor principle
c. theory of increasing return
d. risk versus reward principle
Franchisees have the option of using the logo and symbols of the franchisor.
One of the most frequently used criterion in evaluating new ventures, is the ability of
the entrepreneur to sustain intense effort.
Why is global thinking important to today’s entrepreneurs?
Entrepreneurs are often very methodical people who plan their moves very carefully.
List and briefly explain each of the phases in the creative process.
An entrepreneur must graph at least two numbers, total sales and total expenses, when
using the graphic approach for break-even analysis.
The prospectus for an initial public offering (IPO) must disclose fully all pertinent
information about a company and must present a fair representation of the firm’s true
prospects.
The most important area to examine prior to purchasing a business is company
profitability.