Enterprise Development
Solved Exam Questions
Course Introduction
Enterprise Development explores the process of creating, growing, and sustaining successful business ventures. This course covers foundational concepts such as opportunity recognition, business model generation, and entrepreneurial strategy, while addressing key elements like funding, market analysis, innovation, and risk management. Students will develop practical skills in business planning, leadership, and resource allocation, and will engage in case studies and project work to understand real-world challenges faced by entrepreneurs. The course is designed to equip future business leaders and founders with the knowledge and tools necessary to transform innovative ideas into viable enterprises.
Recommended Textbook
Essentials of Entrepreneurship and Small Business Management 9th Edition by Norman M. Scarborough
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17 Chapters
1957 Verified Questions
1957 Flashcards
Source URL: https://quizplus.com/study-set/2272
Page 2
Chapter 1: The Foundations of Entrepreneurship
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117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/45125
Sample Questions
Q1) Women play a minor role in the entrepreneurial arena.
A)True
B)False
Answer: False
Q2) A major advantage of launching a business part-time is the lower risk it offers in case the business fails.
A)True
B)False
Answer: True
Q3) The opportunity to reap impressive profits is the primary motivation for most entrepreneurs.
A)True
B)False Answer: False
Q4) Entrepreneurs realize that failure is a possibility, but are not paralyzed by that fear.
A)True
B)False
Answer: True
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Page 3
Chapter 2: Ethics and Social Responsibility: Doing the Right Thing
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109 Verified Questions
109 Flashcards
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Sample Questions
Q1) According to the KPMG's Integrity Survey, ________ percent of workers say that they observed ethical lapses in their companies within the last year.
A)28
B)57
C)73
D)81 Answer: C
Q2) Kant's categorical imperative states that one should act in such a way that the action taken under the circumstances could be a universal law or rule of behavior.
A)True
B)False
Answer: True
Q3) In 2020, members of three different generations will be working side-by-side in the United States.
A)True
B)False
Answer: False
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Page 4
Chapter 3: Creativity and Innovation: Keys to Entrepreneurial Success
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118 Verified Questions
118 Flashcards
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Sample Questions
Q1) Entrepreneurs must embrace traditional assumptions and perspectives about how things ought to be because they support creativity.
A)True
B)False
Answer: False
Q2) Force-field analysis is a useful technique for evaluating the forces that support and oppose a proposed change.
A)True
B)False
Answer: True
Q3) When "brainstorming," individuals should be encouraged to use "idea hitchhiking," or building new ideas on those already suggested.
A)True
B)False
Answer: True
Q4) Creative people see problems as roadblocks.
A)True
B)False
Answer: False
Page 5
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Chapter 4: Conducting a Feasibility Analysis and Designing a Business Model
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) Which of the following is a danger of using a niche strategy?
A)Niches change.
B)Niches can go away.
C)Entering a niche requires adaptability in your initial plan.
D)All of the above
Q2) The weakest of the five forces in most industries is the rivalry that exists among the businesses competing in a particular market.
A)True
B)False
Q3) According to the five forces model, Delta Airlines is a substitute for United Airlines. A)True
B)False
Q4) Conducting primary research involves collecting data firsthand and analyzing it. A)True B)False
Q5) How does a company such as Under Armour control the bargaining power of its suppliers?
Page 6
Q6) What are the four major elements to be included in a financial feasibility analysis?
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Chapter 5: Crafting a Business Plan and Building a Solid Strategic Plan
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129 Verified Questions
129 Flashcards
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Sample Questions
Q1) Which of the following statements is true?
A)Overall, Competitor 2 is the strongest of these three companies.
B)Your company's most serious weakness is its poor quality.
C)Your company's most vulnerable point against these two competitors is in the area of on-time delivery.
D)The most important of the key success factors is location.
Q2) To get external financing, an entrepreneur's business plan must pass the reality test, the competitive test, and the value test with potential lenders and investors.
A)True
B)False
Q3) The real value in preparing a business plan is not so much in the plan itself as it is in the process the entrepreneur goes through to create the plan.
A)True
B)False
Q4) The ideal strategic planning procedure for a small company should be formal and highly structured.
A)True
B)False
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Chapter 6: Forms of Business Ownership
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83 Verified Questions
83 Flashcards
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Sample Questions
Q1) A common denominator in many partnership disputes is the lack of a written agreement clearly spelling out the roles, rights, and responsibilities of each partner.
A)True
B)False
Q2) In a general partnership, ________.
A)each partner is held responsible for an agreement/decision made by any one of the partners
B)partners can be held responsible only for decisions they make personally
C)no partner can be held legally responsible for decisions since the partnership itself is a legal entity
D)no decision is binding unless all partners agree to it in writing
Q3) The most common form of business ownership that is also the simplest to create is the ________.
A)sole proprietorship
B)partnership
C)corporation
D)S corporation
Q4) What is a sole proprietorship? Explain the advantages and the disadvantages of a sole proprietorship.
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Chapter 7: Buying an Existing Business
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80 Verified Questions
80 Flashcards
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Sample Questions
Q1) Which of the following is a potential disadvantage of purchasing an existing business?
A)The employees inherited with the business may not be suitable.
B)The previous owner may have created ill will among the company's customers.
C)Equipment and facilities may be obsolete or inefficient.
D)All of the above
Q2) The first stage in acquiring a business is ________.
A)search
B)due diligence
C)valuation
D)negotiation
Q3) To avoid a bumpy transition, it is important to not ask the seller to remain as a consultant.
A)True
B)False
Q4) Once the deal stage is complete, the transition stage begins with the actual closing of the purchase.
A)True
B)False
Q5) What is an ESOP?
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Chapter 8: Franchising and the Entrepreneur
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69 Verified Questions
69 Flashcards
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Sample Questions
Q1) Quality is so important in franchising that most franchisors retain the right to terminate the franchise contract and to repurchase the outlet if a franchisee fails to maintain quality standards.
A)True
B)False
Q2) Absentee franchise owners are consistently successful.
A)True
B)False
Q3) A significant advantage a franchisee has over an independent business is the participation in the franchisor's ________ largely due to the ________ the franchise offers.
A)centralized buying power; buying insight
B)centralized buying power; brand protection
C)centralized buying power; economies of scale
D)economies of scale; territorial protection
Q4) Outline the benefits and drawbacks of buying a franchise.
Q5) Franchises have experienced three major growth waves since beginning that include a focus on ________.
Q6) Explain three trends that are currently shaping the franchising industry.
Q7) Outline the recommended procedure for buying a franchise.
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Chapter 9: Building a Powerful Bootstrap Marketing Plan
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117 Verified Questions
117 Flashcards
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Sample Questions
Q1) Studies of shifting patterns in age, income, education, race, and other population characteristics are the subject of ________.
A)psychographics
B)demographics
C)sociographics
D)paleontology
Q2) How could Lloyd realistically create a competitive advantage by giving customer service a focus in his business?
Q3) Unlike television ads, uploading a video to YouTube costs ________.
A)a lot
B)nothing
C)less
D)plenty
Q4) Explain the concept of total quality management. How is it different from the quality inspection of a final product just before being packaged?
Q5) The best way to find out what customers really want and value is to ask them.
A)True
B)False
Q6) What marketing potential does the Internet offer small business owners?
Page 11
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Chapter 10: E-Commerce and the Entrepreneur
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142 Verified Questions
142 Flashcards
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Sample Questions
Q1) A key aspect of an online strategy is to create it with the target audience in mind.
A)True
B)False
Q2) An effective search engine optimization (SEO)strategy can be maintained through
A)natural, or organic, listings
B)paid or sponsored listings
C)paid inclusions
D)All of the above
Q3) One of the surest ways to alienate online customers is to abuse the information collected from them by selling it to third parties or by spamming them with unwanted solicitations.
A)True
B)False
Q4) A survey reports that 84 percent of consumers trust online reviews as much as personal recommendations.
A)True
B)False
Q5) How might a Web site benefit the youth club?
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Chapter 11: Pricing and Credit Strategies
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114 Verified Questions
114 Flashcards
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Sample Questions
Q1) The manufacturer's suggested retail prices may create an undesirable image for the small firm.
A)True
B)False
Q2) Leader pricing is a technique in which a small company marks down the price of a popular item below its normal price in an attempt to increase customer traffic and to boost sales of other items.
A)True
B)False
Q3) The acceptable price range of a product or service is the area between the ________ defined by customers in the market and the ________ established by the company's cost structure.
A)price floor; price ceiling
B)image; quality
C)price ceiling; price floor
D)price floor; value
Q4) What is the minimum price that Miller Manufacturing should set for its electrical components?
Q5) What is Miller Manufacturing's break-even price?
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Chapter 12: Creating a Successful Financial Plan
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140 Verified Questions
140 Flashcards
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Sample Questions
Q1) If Jim were to reduce his fixed costs by 10 percent by reducing a middle management position, what benefit would that be to him and the company? What would his new contribution margin be?
Q2) Which of the following is an assumption of break-even analysis?
A)Fixed expenses remain constant for all levels of sales volume.
B)Variable expenses change in direct proportion to changes in sales volume.
C)Changes in sales volume have no effect on unit sales price.
D)All of the above
Q3) The ________ ratio measures the percentage of total assets financed by a small company's creditors compared to its owners.
A)debt
B)times-interest-earned
C)net sales to total assets
D)total asset turnover
Q4) Concerning how much cash to have at startup, one rule of thumb is to have enough to cover operating expenses (less depreciation)for two inventory turnover periods.
A)True
B)False
Q5) Help Jim compute the break-even point for his brake service.
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Chapter 13: Managing Cash Flow
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144 Verified Questions
144 Flashcards
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Sample Questions
Q1) A small company's ideal minimum cash balance is one month's sales.
A)True
B)False
Q2) Leasing allows business owners to forecast cash flows more ________ because lease payments are ________ amounts paid over a particular time period.
A)often; fixed
B)accurately; variable
C)accurately; fixed
D)often; variable
Q3) A cash budget reveals important clues about how well a company ________.
A)balances its accounts receivable and accounts payable
B)controls inventory
C)finances its growth
D)All of the above
Q4) One effective technique for improving cash management is to establish a firm credit policy in writing and let customers know in advance what it is.
A)True
B)False
Q5) What steps can a small business owner take to minimize bad debt losses?
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Chapter 14: Choosing the Right Location and Layout
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114 Verified Questions
114 Flashcards
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Sample Questions
Q1) Shopping malls typically average ________ parking spaces per 1,000 square feet of shopping while a typical central business district offers ________ space(s)per 1,000 square feet of shopping space.
A)20; 1
B)3; 6
C)5; 3.5
D)3; 8
Q2) What is the state's overall attitude toward your kind of business? Has it passed laws that impose restrictions on the way a company can operate? Does the state offer small business support programs of financial assistance to entrepreneurs? These questions help an entrepreneur to assess the overall ________.
A)population trends
B)proximity to markets
C)labor supply
D)business climate
Q3) When conducting a regional evaluation, one of the first places an entrepreneur should turn for information is the U.S. Census Bureau.
A)True
B)False
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Page 16
Chapter 15: Sources of Financing: Equity and Debt
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117 Verified Questions
117 Flashcards
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Sample Questions
Q1) Because of the risk/return tradeoff, small businesses that borrow money repay it with interest at the ________.
A)prime interest rate
B)prime interest rate minus a few percentage points
C)prime interest rate plus a few percentage points
D)lender's cost of capital
Q2) Crowd funding is a method of raising capital that taps the power of social networking and allows entrepreneurs to post their elevator pitches and proposed investment terms on specialized Web sites and raise money from ordinary people who invest as little as $100.
A)True
B)False
Q3) Less than ________ percent of all U.S. companies are publicly-held corporations.
A)1
B)5
C)10
D)12
Q4) Your text describes a variety of common sources of equity capital. Outline and briefly describe five.
Q5) What other sources of capital would you suggest that Christine explore?
Page 17
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Chapter 16: Global Aspects of Entrepreneurship
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133 Verified Questions
133 Flashcards
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Sample Questions
Q1) Small businesses contribute ________ percent of U.S. export sales.
A)20
B)25
C)33
D)40
Q2) Describe the other barriers to trade, including political, business, and cultural.
Q3) As the trend toward increased globalization continues, successful companies must consider themselves businesses without borders.
A)True
B)False
Q4) Most export management companies (EMCs)are merchant intermediaries that work on a buy-and-sell arrangement with domestic small companies, providing small businesses with a low-cost, efficient, independent, international marketing department.
A)True
B)False
Q5) Identify and discuss the domestic barriers to trade.
Q6) Outline the eight strategies for "going global" available to the small business owner.
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Page 18
Chapter 17: Building a New Venture Team and Planning for the Next Generation
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119 Verified Questions
119 Flashcards
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Sample Questions
Q1) Both leadership and management are essential to a small company's success, but leadership comes first.
A)True
B)False
Q2) List and briefly identify the five estate planning tools the owners of a family business should consider.
Q3) Job enlargement is based on the premise that the best way to design a job is to break it down into its simplest form and to standardize each task.
A)True
B)False
Q4) What would be the most effective way to recruit personnel for this type of business?
Q5) Companies desiring to improve their recruitment efforts are finding that the Internet offers tremendous reach at a relatively low cost and is very effective.
A)True
B)False
Q6) List at least ten of the seventeen behaviors that effective leaders exhibit.
Q7) Is Norm Schultz correct in his attitude about workers not wanting recognition?
Page 19
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