People practice the creative search for background knowledge in which of the following
ways:
a. join professional groups and organizations
b. attend seminars or professional meetings
c. a and b
d. socializing at parties
It is important that an entrepreneur
a. seek the assistance of outside professionals to prepare a business plan.
b. develop an entrepreneurial team to organize the plan.
c. prepare his or her own plan.
d. do a and b only.
Which of the following is a true statement about seeking legal advice with respect to
succession planning?
a. Legal advice is seldom beneficial.
b. Legal advice from an advisor who understands succession issues is always crucial.
c. It is seldom crucial for legal advisors to design a plan for succession.
d. The more you pay, the better the advice.
Venture capitalists are experienced professionals who provide a full range of service for
new ventures including
a. supplying labor for start-up.
b. market research and strategy for pricing.
c. management consulting.
d. R & D knowledge.
A clear pattern among successful entrepreneurs is
a. setting goals that are just out of reach.
b. the fear of failure common to all people.
c. their focus on opportunity rather than resources.
d. not fitting in to traditional organizations.
A budget that is a statement of estimated income and expenses over a specified period
of time is referred to as an
a. anticipated budget.
b. operating budget.
c. entrepreneurial budget.
d. expected results budget.
Creativity is most likely to occur when the ‘climate’ is right. What is a characteristic of
that climate in the workplace?
a. willingness to avoid change
b. employees with similar work habits
c. trustful management that does not exert strict control over employees
d. strict management rules
A business plan
a. forces the venture capitalist to prepare an effective strategy to use in case of trouble.
b. provides a foolproof ‘blueprint’ for a small business.
c. may help an entrepreneur avoid a project that is ‘doomed’ from the start.
d. is a loan application.
When a customer sees a product that is superior to its competitors, ______ becomes less
important.
a. size
b. color
c. quantity
d. price
When starting a business, which of the following sources of financing are least likely to
be used?
a. trade credit
b. factors
c. leasing companies
d. insurance companies
Products or services that consumers make a special effort to find and purchase are
a. convenience goods
b. shopping goods
c. specialty goods
d. generic goods
Michael Gerber, the author of The E-Myth, explains that the failure of most small
businesses is due to:
a. owners being more technical rather than entrepreneurial
b. owners being more managerial rather than technical
c. owners being more entrepreneurial rather than managerial
d. owners being more entrepreneurial rather than technical
Timing is especially critical in which area?
a. the new venture profitability method
b. marketing
c. accounting
d. the economy
The final critical factor in the marketing-planning process is
a. analysis
b. cost projection
c. sales forecasting
d. evaluation
Lack of finished product availability can affect
a. the company’s image.
b. the success of any venture.
c. both a and b.
d. costs.
Of the following, which is not associated with entrepreneurial tactics in market
research?
a. guerrilla marketing
b. lead user research
c. in-person interviews
d. blog monitoring
Venture classifications include which of the following types of venture?
a. hobby ventures
b. smaller copycat ventures
c. high-growth ventures
d. survival ventures
An entrepreneur should include a three- to five-year financial projection so that the
financial source can adequately evaluate the venture.
Employees shouldn’t expect feedback on their entrepreneurial ideas.
Feasibility analyses include technical, market, financial, organizational, and competitive
analyses.
Perhaps the greatest advantage of buying a franchise, as compared to starting a new
business or buying an existing one, is that the franchisor will usually provide both
training and guidance to the franchisee.
Today’s entrepreneurs are faced with few ethical decisions because the legal system
imposes greater penalties on wrongdoers.
It is not necessary for the entrepreneur to seek outside advice when liquidating the firm.
The entrepreneurial spirit is unique to America and Western Europe.
Corporate entrepreneurs should be restricted to the resources of their own divisions of
the corporation.
Shopping goods are products that consumers take time to examine carefully and
compare for quality and price.