Question 1

What is the role of the economic environment in the success of entrepreneurial ventures?

Accepted Answer

A)   Increases in the money supply and the supply of bank loans lead to improved prospects and increased sources of capital.
B)   Entrepreneurial success is not affected by the economic environment; a good idea will prevail in all external conditions.
C)   Entrepreneurial success is affected only by the talent and behavior of individuals, not by the economic environment.
D)   Downturns in the economic environment offer no opportunity for entrepreneurial success.
E)   A robust economy and the resulting increase in credit and demand boost the rate of new business formation, but a troubled economy has little effect on new ventures.F) B) and E)
G) C) and D)

Question 2

Describe the characteristics of a successful entrepreneur.

Accepted Answer

No single personality type predicts entr...

Question 3

A(n)  ________ often devotes too much attention to financial projections while neglecting other important information that is important to investors.

Accepted Answer

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

Question 4

According to Peter Drucker, which of the following statements is true of managing a family business?

Accepted Answer

A)   Mediocre performance by family members employed in the company may be tolerated.
B)   The business should be aggressively managed.
C)   The business should not hire outsiders as they contribute expertise the family might not have.
D)   Someone outside the family and the business should help plan succession.
E)   The business should "go public" as soon as possible.F) D) and E)
G) A) and B)

Question 5

Identify the correct statement regarding entrepreneurship.

Accepted Answer

A)   Entrepreneurs are gamblers.
B)   Entrepreneurs are their own bosses and independent.
C)   Entrepreneurs experience stress, but they also have high job satisfaction.
D)   Entrepreneurs seek power and control over others.
E)   If an entrepreneur is talented, he or she will quickly succeed.F) None of the above
G) A) and B)

Question 6

When working for a software company, and because Tomas is a(n)  ________, he created a new venture based solely on his idea while using his company's proprietary technology.

Accepted Answer

A)   intrapreneur
B)   angel investor
C)   quasi partner
D)   venture capitalist
E)   franchiseeF) A) and C)
G) A) and D)

Question 7

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 C)
G) B) and E)

Question 8

The side street effect refers to

Accepted Answer

A)   the appearance of unexpected opportunities as one follows a plan.
B)   a corporate spin-off not sanctioned by the corporation.
C)   using corporate resources to pursue entrepreneurial activities.
D)   the entrepreneurial ventures that are marginally successful but never experience significant growth.
E)   the lack of focus seen in many entrepreneurs.F) A) and D)
G) C) and D)

Question 9

"My niche is designing smartphone apps for senior citizens, a growing market due to the aging of the Baby Boomer generation," said entrepreneur programmer Rich Webb. "Examples include apps for helping a shopper find his car in a parking lot, for keeping track of medications, and for monitoring blood pressure." Rich is developing entrepreneurial opportunities based upon events and trends as they unfold-in this case, due to

Accepted Answer

A)   lifestyle and taste changes.
B)   demographic changes.
C)   economic dislocations.
D)   calamities.
E)   government initiatives and rule changes.F) A) and B)
G) B) and C)

Question 10

In order for family-managed businesses to survive and prosper, management guru Peter Drucker advised them to

Accepted Answer

A)   refrain from having someone outside the family help plan succession.
B)   discontinue hiring outsiders as they are more objective.
C)   fill at least one key position with a nonfamily member.
D)   offer initial public stock offerings as soon as possible.
E)   tolerate mediocre performance by family members.F) A) and B)
G) A) and C)

Question 11

Your roommate excitedly tells you that she has decide to become an entrepreneur. Her primary reason, she says, is that entrepreneurship is a perfect match for her because she is a gambler by nature. Unfortunately, your roommate has described one of the myths of entrepreneurship. In fact, entrepreneurs are not gamblers. They take careful, calculated ________ and are not afraid to act on their ________.

Accepted Answer

A)   positions; facts
B)   measurements, results
C)   risks; hunches
D)   risks, decisions
E)   measurements; decisionsF) C) and D)
G) A) and C) D

Question 12

A(n)  ________ is a new business having growth and high profitability as primary objectives.

Accepted Answer

A)   angel-funded-start-up
B)   junior enterprise
C)   merger
D)   entrepreneurial venture
E)   greenfield ventureF) None of the above
G) B) and E)

Question 13

Organizations that encourage ________ face an obvious risk: the effort can fail.

Accepted Answer

A)   entrepreneurship
B)   intrapreneurship
C)   bootlegging
D)   innovativeness
E)   benchmarkingF) B) and C)
G) B) and E)

Question 14

List and describe the differences between the transaction fee model and the intermediary model using examples.

Accepted Answer

The transaction fee model invo...

Question 15

In the context of the entrepreneurial strategy matrix, most small business ventures are in the lower right quadrant where innovation is low and risk is high.

Accepted Answer

A) True 
 B)False  True

Question 16

Paige independently owns and operates HiZ Inc., a company with 22 employees. She manages aggressively and expects rapid sales and profit growth. Paige's company is considered a(n)  ________ venture.

Accepted Answer

A)   entrepreneurial
B)   intrapreneurial
C)   franchise
D)   small business
E)   dependentF) B) and D)
G) A) and B)

Question 17

The odds of survival for a new venture improve if

Accepted Answer

A)   there is an economic downturn.
B)   there is novelty.
C)   it is small.
D)   it grows to at least 10 or 20 people.
E)   it has revenues of $1 million.F) A) and D)
G) A) and B)

Question 18

Sabrina, Vice President of Development for a large automobile manufacturer, has developed a radically different marketing strategy. Before she presents the idea to the CEO, she first consults with the other vice presidents to get their input and support. This step in building support for an idea is known as

Accepted Answer

A)   horse trading.
B)   making cheerleaders.
C)   getting the blessing.
D)   clearing the investment.
E)   persistence and logic.F) B) and D)
G) B) and C) B

Question 19

An organization that resists entrepreneurial initiative

Accepted Answer

A)   faces the risk of overrelying on a single project.
B)   may lose its ability to adapt when conditions require change.
C)   spreads intrapreneurial efforts over many small-scale projects.
D)   represents the process of changing the status quo.
E)   may fail while awaiting the completion of one large, innovative project.F) B) and D)
G) A) and E)

Question 20

How are entrepreneurs and inventors different? Give an example.

Accepted Answer

Successful entrepreneurs are innovators ...

Exam 6: Entrepreneurship

What is the role of the economic environment in the success of entrepreneurial ventures?

Correct Answer
verified

Describe the characteristics of a successful entrepreneur.

Correct Answer
verified
No single personality type predicts entr...
View Answer

A(n) ________ often devotes too much attention to financial projections while neglecting other important information that is important to investors.

Correct Answer
verified

According to Peter Drucker, which of the following statements is true of managing a family business?

Correct Answer
verified

Identify the correct statement regarding entrepreneurship.

Correct Answer
verified

When working for a software company, and because Tomas is a(n) ________, he created a new venture based solely on his idea while using his company's proprietary technology.

Correct Answer
verified

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

Correct Answer
verified

The side street effect refers to

Correct Answer
verified

Correct Answer
verified

In order for family-managed businesses to survive and prosper, management guru Peter Drucker advised them to

Correct Answer
verified

Correct Answer
verified
D

A(n) ________ is a new business having growth and high profitability as primary objectives.

Correct Answer
verified

Organizations that encourage ________ face an obvious risk: the effort can fail.

Correct Answer
verified

List and describe the differences between the transaction fee model and the intermediary model using examples.

Correct Answer
verified
The transaction fee model invo...
View Answer

In the context of the entrepreneurial strategy matrix, most small business ventures are in the lower right quadrant where innovation is low and risk is high.

Correct Answer
verified
True

Paige independently owns and operates HiZ Inc., a company with 22 employees. She manages aggressively and expects rapid sales and profit growth. Paige's company is considered a(n) ________ venture.

Correct Answer
verified

The odds of survival for a new venture improve if

Correct Answer
verified

Correct Answer
verified
B

An organization that resists entrepreneurial initiative

Correct Answer
verified

How are entrepreneurs and inventors different? Give an example.

Correct Answer
verified
Successful entrepreneurs are innovators ...
View Answer

Exam 6: Entrepreneurship

What is the role of the economic environment in the success of entrepreneurial ventures?

Correct AnswerverifiedShow Answer

Describe the characteristics of a successful entrepreneur.

Correct AnswerverifiedNo single personality type predicts entr...View AnswerShow Answer

A(n) ________ often devotes too much attention to financial projections while neglecting other important information that is important to investors.

Correct AnswerverifiedShow Answer

According to Peter Drucker, which of the following statements is true of managing a family business?

Correct AnswerverifiedShow Answer

Identify the correct statement regarding entrepreneurship.

Correct AnswerverifiedShow Answer

When working for a software company, and because Tomas is a(n) ________, he created a new venture based solely on his idea while using his company's proprietary technology.

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

The side street effect refers to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In order for family-managed businesses to survive and prosper, management guru Peter Drucker advised them to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedD

A(n) ________ is a new business having growth and high profitability as primary objectives.

Correct AnswerverifiedShow Answer

Organizations that encourage ________ face an obvious risk: the effort can fail.

Correct AnswerverifiedShow Answer

List and describe the differences between the transaction fee model and the intermediary model using examples.

Correct AnswerverifiedThe transaction fee model invo...View AnswerShow Answer

In the context of the entrepreneurial strategy matrix, most small business ventures are in the lower right quadrant where innovation is low and risk is high.

Correct AnswerverifiedTrue

Paige independently owns and operates HiZ Inc., a company with 22 employees. She manages aggressively and expects rapid sales and profit growth. Paige's company is considered a(n) ________ venture.

Correct AnswerverifiedShow Answer

The odds of survival for a new venture improve if

Correct AnswerverifiedShow Answer

Correct AnswerverifiedB

An organization that resists entrepreneurial initiative

Correct AnswerverifiedShow Answer

How are entrepreneurs and inventors different? Give an example.

Correct AnswerverifiedSuccessful entrepreneurs are innovators ...View AnswerShow Answer

Correct Answer
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Correct Answer
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No single personality type predicts entr...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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D

Correct Answer
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Correct Answer
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Correct Answer
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The transaction fee model invo...
View Answer

Correct Answer
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True

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Correct Answer
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Correct Answer
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B

Correct Answer
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Correct Answer
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Successful entrepreneurs are innovators ...
View Answer