Business Development Test Questions
Course Introduction
Business Development explores the strategies, processes, and skills necessary to identify and capitalize on growth opportunities within organizations. The course covers key concepts such as market analysis, strategic partnerships, customer acquisition, and innovative approaches to expand business operations. Students will learn to assess competitive landscapes, develop business plans, and create value propositions tailored to target markets. Through practical case studies and collaborative projects, participants will gain hands-on experience in negotiating deals, building relationships, and driving sustainable growth in various industries. By the end of the course, students will be equipped to contribute effectively to a firm's expansion and long-term success.
Recommended Textbook
Entrepreneurship Theory Process and Practice 9th Edition by Donald F. Kuratko
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15 Chapters
1181 Verified Questions
1181 Flashcards
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Chapter 1: Entrepreneurship: Evolutionary
Development-Revolutionary Impact
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95 Verified Questions
95 Flashcards
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Sample Questions
Q1) Recognition of entrepreneurs dates back to the French economist Richard Cantillon.
A)True
B)False
Answer: True
Q2) Robert C. Ronstadt put together a summary definition of entrepreneur that included which of the following key phrases?
A) the acceptance of risk of failure
B) the dynamic process of creating incremental wealth
C) the advantage of economic endowments
D) the phenomenon of leadership
Answer: B
Q3) The displacement school of thought focuses on the negative side of group phenomena.
A)True
B)False
Answer: True
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Chapter 2: The Entrepreneurial Mind-Set in Individuals: Cognition and Ethics
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97 Flashcards
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Sample Questions
Q1) Firms need to be public about their ethical values and expectations.
A)True
B)False
Answer: True
Q2) If an entrepreneur believes in himself/herself and that their accomplishments and setbacks are within their own control, they possess a (n) _____.
A) confidence level higher than most entrepreneurs
B) internal locus of control
C) cockiness level too high to be an entrepreneur
D) high energy level
Answer: B
Q3) A good trait for an entrepreneur is to be a calculated risk taker.
A)True
B)False
Answer: True
Q4) Most successful entrepreneurs have failed at one time or another.
A)True
B)False
Answer: True
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Chapter 3: The Entrepreneurial Mind-Set in Organizations: Corporate Entrepreneurship
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85 Verified Questions
85 Flashcards
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Sample Questions
Q1) Bureaucrats in an organization must
A) standardize procedures
B) engage in horizontal management
C) learn to give way to intrapreneurs
D) avoid risky moves
Answer: C
Q2) The major thrust of corporate entrepreneurship is to
A) encourage greater risk taking.
B) raise profitability.
C) encourage innovation.
D) increase morale.
Answer: C
Q3) I-Teams are rarely seen in corporate entrepreneurial environments.
A)True
B)False
Answer: False
Q4) Corporate entrepreneurs generally are power oriented or power hungry.
A)True
B)False
Answer: False
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Chapter 4: Social Entrepreneurship and the Global
Environment for Entrepreneurship
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50 Verified Questions
50 Flashcards
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Sample Questions
Q1) Purpose, accountability, and transparency are characteristics associated with socially sustainable enterprises.
A)True
B)False
Q2) Social obligation, social responsibility, and social responsiveness are all ways firms view their interactions with society.
A)True
B)False
Q3) Bottom-line measures of economic performance include all of the following except:
A) global competition
B) personal income
C) cost of underemployment
D) job growth
Q4) During the 1990s, which new issue emerged as affecting entrepreneurs and ethics?
A) misleading advertising
B) misleading financial reporting.
C) favoritism in promotions.
D) the environment.
Q5) Why is global thinking important to today's entrepreneurs?
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Chapter 5: Innovation: The Creative Pursuit of Ideas
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95 Verified Questions
95 Flashcards
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Sample Questions
Q1) The idea experience phase of the creative process is often the least interesting part of the process.
A)True
B)False
Q2) Creativity cannot be developed or improved.
A)True
B)False
Q3) Successful entrepreneurs are able to identify and implement
A) those ideas that are workable and that they have the skills to implement.
B) those ideas that will make money.
C) those ideas that are least feasible.
D) those ideas that will win instant approval from customers.
Q4) Which of the following is considered a myth of innovation?
A) Creativity relies on blue sky ideas.
B) Small projects develop into successful innovations.
C) Innovations are unpredictable.
D) Creativity can be learned.
Q5) List and briefly explain each of the phases in the creative process.
Q6) Identity and describe two arenas of creativity, as proposed by researcher William Miller.
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Chapter 6: Assessment of Entrepreneurial Opportunities
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82 Verified Questions
82 Flashcards
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Sample Questions
Q1) Which of the following are questions an entrepreneur can ask to gain insight into the viability of a venture?
A) Is it proprietary?
B) Are the initial production costs realistic?
C) Is the potential market large?
D) All of the above are correct.
Q2) In a lifestyle venture, independence, autonomy, and control are the primary driving forces.
A)True
B)False
Q3) Timing is especially critical in which area?
A) the new venture profitability method
B) marketing
C) accounting
D) the economy
Q4) Most entrepreneurs are well schooled in the technology associated with their ventures.
A)True
B)False
Q5) What are three critical factors in a new venture assessment?
Page 8
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Chapter 7: Pathways to Entrepreneurial Ventures
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Sample Questions
Q1) The Franchise Disclosure Document (FDD) is a legally required disclosure document that must be presented to potential franchisees during presale discussions.
A)True
B)False
Q2) When purchasing an existing business, the prospective owner should conduct an assessment of the business's current group of employees.
A)True
B)False
Q3) The advantages of franchising include:
A) training and guidance.
B) brand-name appeal.
C) proven track record.
D) all of the above.
Q4) In purchasing an existing business the first question should be: "Why are you selling?"
A)True
B)False
Q5) Why did the Federal Trade Commission enact the Franchise Rule?
Q6) Briefly explain the new-old approach to creating new ventures.
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Chapter 8: Sources of Capital for Entrepreneurs
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Sample Questions
Q1) Equity capital is
A) paid back within one year.
B) paid back after five years.
C) not a loan but a form of stock.
D) loans from family.
Q2) Which of the following is a type of equity financing?
A) convertible debentures
B) common stock
C) loan with warrants
D) loan without warrants
Q3) The entrepreneur should ask the venture capitalist _____ questions.
A) at most ten
B) exactly twenty
C) an unlimited number of
D) no
Q4) Frugality is deemed a bootstrapping technique.
A)True
B)False
Q5) Should entrepreneurs accept proposals from the first venture capitalist that offers?
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Chapter 9: Legal Challenges of Entrepreneurial Ventures
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Sample Questions
Q1) That part of a patent application which identifies the features that are protected are known as the
A) specification.
B) illustration.
C) claim.
D) concept.
Q2) Copyrights may be expressed in
A) books.
B) periodicals.
C) motion pictures.
D) all of the above.
Q3) Which is not one of the major sections of the bankruptcy act?
A) straight bankruptcy
B) reorganization
C) adjustments of debts
D) liquidation
Q4) At present, it is illegal to attempt incorporation over the Internet.
A)True
B)False
Q5) What are the rules for avoiding pitfalls in selecting trademarks?
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Chapter 10: Marketing Challenges for Entrepreneurial Ventures
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Sample Questions
Q1) Pricing the social media age is sometimes based on a model that offers basic levels of service for free.
A)True
B)False
Q2) Explain the new marketing concept?
Q3) Even after marketing research is done, many entrepreneurs are unsure of how to price their products or services.
A)True
B)False
Q4) What is skimming?
A) setting price to maximize profit
B) setting price to maximize market share
C) setting price to switch customers to new product lines
D) setting price to match the competition
Q5) Most firms generally gather primary data and then see if there is secondary data to supplement it.
A)True
B)False
Q6) What is guerrilla marketing?
Q7) What is skimming and what are its effects? Page 12
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Chapter 11: Financial Preparation for Entrepreneurial Ventures
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Sample Questions
Q1) The handling questionable costs approach of break-even analysis was specifically designed for entrepreneurship firms.
A)True
B)False
Q2) After the firm has forecast its sales for the budget period
A) net income is figured.
B) expenses are estimated.
C) ending inventory is figured.
D) labor costs are estimated.
Q3) Pro forma statements show the firm's present financial position.
A)True
B)False
Q4) A budget is one of the most powerful tools that an entrepreneur can use in planning business operations.
A)True
B)False
Q5) The principal objective of capital budgeting is to maximize the value of the firm.
A)True B)False
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Chapter 12: Developing an Effective Business Plan
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Sample Questions
Q1) A business plan should be no more than l50 pages.
A)True
B)False
Q2) An indicator of the planning pitfall of "no commitment or dedication" is
A) no experience in the business.
B) excessive procrastination.
C) no recognition of future problems.
D) lack of understanding about the industry.
Q3) An indicator of the planning pitfall of "failure to anticipate roadblocks" is
A) recognition of future problems.
B) making no admission of possible flaws in the plan.
C) having a contingency or alternative plan.
D) pursuing a good work force.
Q4) A lack of demonstrated experience, no clear market niche, a failure to anticipate roadblocks, no realistic goals set, and a lack of commitment are pitfalls or common points of failure that occur before an entrepreneur ever gets a plan reviewed.
A)True
B)False
Q5) How does a business plan benefit the entrepreneur?
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Chapter 13: Strategic Entrepreneurial Growth
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Sample Questions
Q1) Which of the is not a distinct form of tolerance for failure?
A) moral failure
B) innovation failure
C) personal failure
D) uncontrollable failure
Q2) Wealth creation occurs at the intersection of entrepreneurial and strategic actions.
A)True
B)False
Q3) During the growth stage of a venture, entrepreneurs shift into a managerial style.
A)True
B)False
Q4) Which of the following would be considered fatal mistakes in strategic planning, according to researcher Michael E. Porter?
A) no real competitive advantage
B) pursuing a solid competitive position
C) compromising strategy for growth
D) a and c only
Q5) Does strategic planning pay off?
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Chapter 14: Valuation of Entrepreneurial Ventures
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Sample Questions
Q1) Which of the following methods of valuation was developed by the U.S. Treasury to determine a firm's intangible assets?
A) market value
B) replacement value
C) excess earnings
D) multiple of earnings
Q2) The discounted earnings method of valuation establishes
A) potential earning power.
B) an appropriate rate for replacement.
C) expectancy of the business expenses.
D) future profits.
Q3) One reason to keep projections in perspective is
A) long histories.
B) fluctuating markets.
C) certain environments.
D) both a and b
Q4) "Why is the business being sold?" is not an important question to ask when analyzing the viability of buying a business.
A)True
B)False
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Chapter 15: Harvesting the Entrepreneurial Venture
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Sample Questions
Q1) In some cases, entrepreneurs may be in violation of the law if they employ too many family members.
A)True
B)False
Q2) The Oakland Scavenger Company case resulted in
A) a favorable ruling by the court for the plaintiffs.
B) a favorable ruling by the court for the defendants.
C) an out-of-court settlement.
D) an appeal to the U.S. Supreme Court.
Q3) The basic rule for privately held businesses is this: The owner should develop a succession plan.
A)True
B)False
Q4) What are the four critical steps to consider in developing a succession strategy in a family business?
Q5) An important issue in the Oakland Scavenger case is that of whether nonfamily members should be allowed to be successors in family businesses.
A)True
B)False
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