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Sole proprietorships, partnerships, S-corporations, and limited liability companies all
permit pass-through earnings and losses, but S-corporations and LLCs offer more
protection from liability.
a. True
b. False
A/an ____ is an advocate, but a/an ____ is bound by rules and ethics that do not permit
advocacy.
a. insurance agent / banker
b. banker / insurance agent
c. consultant / government agency
d. lawyer / accountant
e. accountant / lawyer
Ethical issues are the same for managers and leaders regardless of the size of the
company.
a. True
b. False
____ serve as gateways to other networks, exerting influence between groups or
networks rather than within groups.
a. Network brokers
b. Angel investors
c. Gateways
d. Opinion leaders
e. All of these choices
____ innovations can find no identifiable market in the earliest stages of development.
a. Technology
b. Emergent
c. Most
d. Disruptive
e. Incremental
All of entrepreneurship can be reduced to:
a. wealth
b. independence
c. growth
d. people
e. partnership
Whenever there is competitive rivalry, prices tend to be ____.
a. the same
b. slightly higher
c. lower
d. 50 percent higher
e. None of these choices
Pricing is not designed to cover total costs but to maximize total contribution - that is,
unit price minus unit variable costs.
a. True
b. False
Entrepreneurs should keep in mind that the purpose for doing a/an ____ is to sell the
business.
a. prototype
b. executive summary
c. feasibility analysis
d. business plan
e. None of these choices
During the product development process, tradeoffs may have to be made between all of
these factors except:
a. Product features
b. Cost
c. Capital expenditures
d. Stakeholders
e. All of these choices are correct
If a firm has a trade secret, and the principals of the firm discuss it in a public elevator:
a. The protection is lost
b. The protection is heightened
c. The protection remains the same
d. None of these is correct
e. The protection remains the same if those on the elevator are sworn to secrecy
The micro strategy process repeats itself over and over again and with each successful
outcome, the new business is moved toward a complete ____.
a. prototype
b. proof of concept
c. business plan
d. feasibility test
e. executive summary
An informal panel of experts and other people who are interested in seeing the new
venture succeed is a/an ____.
a. mentor board
b. startup team
c. virtual team
d. advisory board
e. consulting firm
____ change is found in industries where resources turn over frequently and must
continually be replaced.
a. Progressive
b. Intermediating
c. Radical
d. Creative
e. None of these choices
By focusing on what the entrepreneur does best, and letting others do the rest, the
_____ strategy helps the business grow more rapidly, keeps unit costs down, and turns
out products more quickly.
a. Vertical integration
b. Alliance
c. Horizontal integration
d. Diagonal leverage
e. Circular integration
Which of the following are not "backend" costs for an entrepreneur seeking capital by
selling securities (shares of stock in the corporation)?
a. Prospectus printing costs
b. Investment banking fees
c. Legal fees
d. Marketing costs
e. Brokerage fees
What services can a founder with banking experience offer the team?
What are the steps to increasing success as an entrepreneur?
Briefly discuss the elements of the entrepreneur's extended networks.
What are the disadvantages of a limited liability company (LLC)?
Discuss the characteristics that are part of an effective code of ethics.
Discuss the home-based entrepreneur.
Briefly discuss the significant changes in entrepreneurship from the 1960s to the 1990s.
What pricing strategies are most common for startups?
