Question 1

_____ is a competitive advantage in the form of relationships with other people and the image other people have of an entrepreneur.

Accepted Answer

A)   Social capital
B)   Community standing
C)   Legitimacy
D)   Quality of life
E)   Opportunity analysisF) C) and D)
G) B) and E)

Question 2

An)  _____ describes all the elements involved in starting a new venture.

Accepted Answer

A)   business plan
B)   control system
C)   value chain
D)   initial public stock offering
E)   organization chartF) C) and E)
G) B) and E)

Question 3

If, after the current assessment, Frank still believes in the potential of the venture, he should now proceed with which step of the planning process?

Accepted Answer

A)   an environmental analysis
B)   a SWOT analysis
C)   a promotional plan
D)   an opportunity analysis
E)   a business planF) A) and B)
G) B) and C)

Question 4

Jonah has a new idea to revamp the mail processing at his large company. His boss tells him to go for it and report back on the barriers and efficiencies of his idea. This approach is called

Accepted Answer

A)   job sharing.
B)   spinoff.
C)   skunk works.
D)   job shadowing.
E)   benchmarking.F) C) and D)
G) A) and E)

Question 5

_____ play a crucial role in promoting entrepreneurship within large corporations.

Accepted Answer

A)   CEOs
B)   Managers
C)   Employees
D)   Entrepreneurs
E)   ConsumersF) C) and D)
G) None of the above

Question 6

_____ is the process by which enterprising individuals initiate, manage, and assume the risks and rewards associated with a business.

Accepted Answer

A)   A start-up
B)   A partnership
C)   An incubator
D)   Entrepreneurship
E)   Joint ventureF) A) and B)
G) B) and E)

Question 7

Which of the following devotes too much attention to financial projections while neglecting other important information that is important to investors?

Accepted Answer

A)   a business audit
B)   an accounting analysis
C)   a business plan
D)   a value chain
E)   a business incubatorF) B) and D)
G) A) and B)

Question 8

In the context of the opportunity for starting a business, what are some of the possibilities that entrepreneurs can exploit?

Accepted Answer

To spot opportunities, one mus...

Question 9

According to the entrepreneurial strategy matrix, Oliver's scenario can be described as

Accepted Answer

A)   low innovation/high risk.
B)   low innovation/low risk.
C)   high innovation/low risk.
D)   high innovation/high risk.
E)   high innovation/no risk.F) B) and D)
G) C) and D)

Question 10

Which of the following is true of entrepreneurial ventures?

Accepted Answer

A)   Companies offering mundane products cannot hope to gain competitive advantage.
B)   For start-ups, failure is an exception rather than the rule.
C)   Successful companies do not always require a cutting-edge technology or an exciting new product.
D)   Acquiring venture capital is essential to the success of all start-up businesses.
E)   The odds of survival of an entrepreneurial venture worsen if it grows to at least 10 or 20 people.F) A) and B)
G) A) and C)

Question 11

As her roommate, you ask her what she will be creating or producing because that is a part of

Accepted Answer

A)   advertising.
B)   micropayment.
C)   entreprenurship.
D)   profiteering.
E)   planning.F) B) and C)
G) None of the above

Question 12

_____ use networks of contacts more than formal authority.

Accepted Answer

A)   Managers
B)   Entrepreneurs
C)   Small businesses
D)   Franchisees
E)   FranchisorsF) B) and E)
G) All of the above

Question 13

A small business is often defined as having fewer than _____ employees, as well as being independently owned and operated.

Accepted Answer

A)   500
B)   400
C)   300
D)   200
E)   100F) B) and D)
G) All of the above

Question 14

Frank left his current job to try out this venture. His boss allowed him to take this leave. This is called

Accepted Answer

A)   bootlegging.
B)   skunk works.
C)   innovation.
D)   horse trading.
E)   brainstorming.F) A) and E)
G) A) and D)

Question 15

Entrepreneurs, in part because they are very busy, often fail to use _____, resulting in inadequate margins to support growth.

Accepted Answer

A)   formal control systems
B)   a forward-thinking orientation
C)   an opportunity analysis
D)   venture capital
E)   total quality management systemsF) C) and D)
G) A) and E)

Question 16

Most small business ventures are located in the _____ quadrant of the entrepreneurial strategy matrix.

Accepted Answer

A)   upper left
B)   low risk
C)   upper right
D)   lower right
E)   high innovationF) D) and E)
G) B) and D)

Question 17

Which of the following is a function of a business plan?

Accepted Answer

A)   to improve the balance sheet and enhance net worth
B)   to raise capital through federally registered shares of the company
C)   to improve credibility with customers and other stakeholders
D)   to determine the viability of one's enterprise
E)   to create a long-term relationship with an investment banking firmF) C) and D)
G) A) and E)

Question 18

The tendency of an organization to act in anticipation of future problems and opportunities is

Accepted Answer

A)   competitive aggressiveness.
B)   innovativeness.
C)   proactiveness.
D)   independent action.
E)   analysis.F) A) and B)
G) A) and C)

Question 19

In the context of the given scenario, which of the following is true?

Accepted Answer

A)   She may not be successful if she starts an entrepreneurial venture based on myths.
B)   She will be successful because she accurately understands the role of entrepreneurs.
C)   She will never be successful.
D)   She will be successful because she is smart and talented.
E)   She will be successful because entrepreneurship ventures seldom fail.F) A) and D)
G) A) and C)

Question 20

According to the entrepreneurial strategy matrix, Rupert's venture can be described as

Accepted Answer

A)   low innovation/high risk.
B)   low innovation/low risk.
C)   high innovation/high risk.
D)   high innovation/low risk.
E)   high innovation/no risk.F) A) and B)
G) A) and C)

Exam 6: Entrepreneurship

Frank left his current job to try out this venture. His boss allowed him to take this leave. This is called

Correct AnswerverifiedShow Answer

Which of the following is a function of a business plan?

Correct AnswerverifiedShow Answer

According to the entrepreneurial strategy matrix, Oliver's scenario can be described as

Correct AnswerverifiedShow Answer

_____ is a competitive advantage in the form of relationships with other people and the image other people have of an entrepreneur.

Correct AnswerverifiedShow Answer

In the context of the opportunity for starting a business, what are some of the possibilities that entrepreneurs can exploit?

Correct AnswerverifiedTo spot opportunities, one mus...View AnswerShow Answer

As her roommate, you ask her what she will be creating or producing because that is a part of

Correct AnswerverifiedShow Answer

Which of the following is true of entrepreneurial ventures?

Correct AnswerverifiedShow Answer

If, after the current assessment, Frank still believes in the potential of the venture, he should now proceed with which step of the planning process?

Correct AnswerverifiedShow Answer

_____ play a crucial role in promoting entrepreneurship within large corporations.

Correct AnswerverifiedShow Answer

_____ use networks of contacts more than formal authority.

Correct AnswerverifiedShow Answer

Most small business ventures are located in the _____ quadrant of the entrepreneurial strategy matrix.

Correct AnswerverifiedShow Answer

An) _____ describes all the elements involved in starting a new venture.

Correct AnswerverifiedShow Answer

In the context of the given scenario, which of the following is true?

Correct AnswerverifiedShow Answer

Jonah has a new idea to revamp the mail processing at his large company. His boss tells him to go for it and report back on the barriers and efficiencies of his idea. This approach is called

Correct AnswerverifiedShow Answer

According to the entrepreneurial strategy matrix, Rupert's venture can be described as

Correct AnswerverifiedShow Answer

Entrepreneurs, in part because they are very busy, often fail to use _____, resulting in inadequate margins to support growth.

Correct AnswerverifiedShow Answer

A small business is often defined as having fewer than _____ employees, as well as being independently owned and operated.

Correct AnswerverifiedShow Answer

_____ is the process by which enterprising individuals initiate, manage, and assume the risks and rewards associated with a business.

Correct AnswerverifiedShow Answer

Which of the following devotes too much attention to financial projections while neglecting other important information that is important to investors?

Correct AnswerverifiedShow Answer

The tendency of an organization to act in anticipation of future problems and opportunities is

Correct AnswerverifiedShow Answer

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To spot opportunities, one mus...
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