Entrepreneurial Management
Final Test Solutions
Course Introduction
Entrepreneurial Management is a dynamic course that explores the principles, strategies, and challenges involved in launching and managing new ventures. Students will learn to identify promising opportunities, marshal resources, develop business models, and create value in uncertain environments. Emphasizing both theory and real-world application, the course covers topics such as innovation, risk assessment, team building, financing, and growth management. Through case studies, interactive projects, and experiential learning, participants gain the practical skills needed to think entrepreneurially and drive business success in startups and established companies alike.
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) In the evolutionary process of economic growth, _________ plays the crucial and indispensable role of providing the "social glue" that binds together both high-tech and "Main Street" activities.
A) entrepreneurship
B) supply and demand
C) the Internet
D) management
Answer: A
Q2) ______________ is the economic basis for all entrepreneurial activity.
A) Individuality
B) Capitalism
C) Voodoo economics
D) Free enterprise
Answer: D
Q3) New and smaller firms are responsible for 95 percent of all radical innovations.
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 Verified Questions
97 Flashcards
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Sample Questions
Q1) Entrepreneurs typically have enough confidence to believe that they can make a difference in the final outcome of their ventures.
A)True
B)False
Answer: True
Q2) Name five entrepreneurial characteristics that you feel are important.
Answer: Characteristics that are important to one individual may not be the same characteristics that are important to another. One characteristic that undoubtedly is important to all is the drive to achieve.
Q3) Successful entrepreneurs fear failure the same way all people do.
A)True
B)False
Answer: False
Q4) Which of the following is not a way to combat stress?
A) acknowledging its existence
B) ignoring coping mechanisms
C) probing personal unacknowledged needs
D) taking a few days off
Answer: B
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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) In following the rules for innovation, a manager should do all of the following except
A) encourage action.
B) use formal meetings whenever possible.
C) punish failure.
D) reward performance.
Answer: C
Q2) The person who has the opportunity to lead and "run" with an idea would be coined which of the following:
A) Department Manager
B) Manager
C) Champion
D) Visionary
Answer: C
Q3) Another common name for an I-Team is an intrapreneurial team.
A)True
B)False
Answer: False
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Page 5
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) An account framework that goes beyond the traditional measures of profit, return on investment,and shareholder value to include environmental and social dimensions is called
A) the shared bottom line
B) the value proposition
C) the triple bottom line
D) the twin bottom line
Q2) Ecopreneurship is a combination of ecologically and economically sustainable development.
A)True
B)False
Q3) In the context of benefit corporations, what does transparency refer to?
Q4) Examples of social enterprise obligations to the environment include all of the following except
A) pollution control
B) restoration of the environment
C) recycling efforts
D) support for minority-own businesses
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) Creativity is most likely to occur when the "climate" is right. What is a characteristic of that climate in the workplace?
A) willingness to avoid change
B) employees with similar work habits
C) trustful management that does not exert strict control over employees
D) strict management rules
Q2) Which of the following mental habits inhibit creativity and innovation?
A) either/or thinking, stereotyping
B) functional perspective, mind-sets
C) security hunting, risks
D) stereotyping, incubation
Q3) Creativity cannot be developed or improved.
A)True
B)False
Q4) Which of the following statements is not True?
A) Creative ideas never come out of the blue.
B) Ideas often emerge during activities unrelated to the enterprise.
C) Answers usually come to an individual incrementally.
D) Creative individuals allow their subconscious to mull over information.
Q5) Describe the innovation process.
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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) There is a great abundance of reliable data concerning the start-up, performance, and failure of new ventures.
A)True
B)False
Q2) Two important factors classified as managerial that could be a cause for failure include human resource problems and the concept of the team approach.
A)True
B)False
Q3) Market feasibility analysis relies on
A) organizational competence
B) the entrepreneur's vision
C) venture capital
D) general economic trends and competitor data
Q4) Which of the following as a factor contributing to new-venture failure?
A) product/market problems.
B) family issues.
C) personality clashes.
D) good management/poor product.
Q5) List and describe three pitfalls in selecting a new venture.
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Chapter 7: Pathways to Entrepreneurial Ventures
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75 Verified Questions
75 Flashcards
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Sample Questions
Q1) When should a potential franchisee receive the FDD (Franchise Disclosure Document)?
A) two days before signing a contract or paying any money
B) at least ten days before signing a contract or paying any money
C) two days before signing a contract
D) at least ten days before paying any money
Q2) The sources of new business ideas among men and women are identical in type and proportion.
A)True
B)False
Q3) Which of the following is not currently cited as a trend creating business opportunities?
A) green products
B) breakfast cereals
C) health care
D) concierge services
Q4) In purchasing an existing business the first question should be: "Why are you selling?"
A)True
B)False
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Chapter 8: Sources of Capital for Entrepreneurs
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86 Flashcards
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Sample Questions
Q1) When accounts receivable are bought from a company for capital funding it is called
A) trade credit.
B) financing.
C) leasing.
D) factoring.
Q2) Should entrepreneurs accept proposals from the first venture capitalist that offers?
Q3) The average size of a social loan is around $7,000.
A)True
B)False
Q4) SEC stands for the
A) Stock Exchange Corporation.
B) Securities and Exchange Commission.
C) Standard Equity Commission.
D) Source of Equity Company.
Q5) Private placement is a method of raising capital through the private placement of securities.
A)True
B)False
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Chapter 9: Legal Challenges of Entrepreneurial Ventures
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85 Verified Questions
85 Flashcards
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Sample Questions
Q1) Specific forms of partnership include which of the following?
A) limited partnerships
B) limited partnerships and limited liability partnerships
C) limited partnerships and S partnerships
D) S partnerships and limited liability companies
Q2) Anyone who violates an author's exclusive rights under a copyright is liable for infringement.
A)True
B)False
Q3) Copyrights can be placed on all of the following except
A) ideas.
B) lectures.
C) books.
D) music.
Q4) Which of the following are suggestions to minimize legal costs?
A) visit the lawyer during normal hours of operation
B) have the lawyer custom design forms specifically for you
C) always handle matters personally
D) try to avoid hiring a lawyer if and until an emergency requires it
Q5) Define a patent and describe its limitations.
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Chapter 10: Marketing Challenges for Entrepreneurial Ventures
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77 Verified Questions
77 Flashcards
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Sample Questions
Q1) Which of the following is a marketing philosophy that focuses on personal selling?
A) computer-driven philosophy
B) sales-driven philosophy
C) consumer-driven philosophy
D) cost-driven philosophy
Q2) Which of the following is not a method of collecting primary data?
A) review of government publications
B) telephone
C) mail survey
D) observation
Q3) Mobile social media applications can be differentiated based on location-sensitivity as well as on time-sensitivity.
A)True
B)False
Q4) Which of these survey methods has the lowest nonresponse rate?
A) phone interviews
B) personal interviews, door to door
C) Internet surveys
D) mail surveys
Page 12
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Chapter 11: Financial Preparation for Entrepreneurial Ventures
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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) 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.
Q2) A method that discounts future cash flows at a rate that makes the net present value of the project equal to zero is known as
A) internal rate of return.
B) net present value.
C) payback method.
D) break-even point.
Q3) The cash flow budget describes
A) cash inflows/cash outflows.
B) cash outflows/accounts receivables.
C) interest income/interest expense.
D) profits/costs.
Q4) The principal objective of capital budgeting is to maximize the value of the firm.
A)True
B)False
13
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Chapter 12: Developing an Effective Business Plan
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81 Verified Questions
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Sample Questions
Q1) One suggestion for helping to recall key examples, visual aids, and other details when presenting the business plan is to utilize key words in the outline.
A)True
B)False
Q2) The day of the presentation, the entrepreneur should arrive early to A) serve snacks to attendees.
B) arrange to have breakfast and coffee catered in.
C) read the paper to relieve nervousness.
D) set up, test any equipment, and organize notes and visual aids.
Q3) Should an entrepreneur attempt to make a business plan sound too good for an investor to turn down?
Q4) An important guideline in putting the plan together is A) to overdiversify.
B) to not highlight critical risks.
C) to identify the target market.
D) to impress with excessive detail
Q5) Every business plan should provide information about future harvest strategies. A)True B)False
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Chapter 13: Strategic Entrepreneurial Growth
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52 Verified Questions
52 Flashcards
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Sample Questions
Q1) Improved performance is often the result of better planning.
A)True
B)False
Q2) Small firm owner/managers are usually very open and trusting about their businesses and the decisions that affect them.
A)True
B)False
Q3) Small business owners are often guarded about their businesses, which leads to
A) distrust of others when formulating a strategic plan
B) a myopic viewpoint
C) misunderstanding of the economic environment
D) lack of attention to the competition
Q4) Misunderstanding industry attractiveness can be a fatal flaw in strategic planning.
A)True
B)False
Q5) Does strategic planning pay off?
Q6) Participation by subordinates in a strategic plan is never appropriate.
A)True
B)False
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Chapter 14: Valuation of Entrepreneurial Ventures
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) Tangible assets as well as intangible assets of a business need to be assessed for proper venture evaluation.
A)True
B)False
Q2) The price/earnings ratio is determined by A) patents.
B) dividing market price of common stock by earnings per share. C) goodwill.
D) deferred financing costs.
Q3) Price/earnings ratio is a method of valuation that is
A) most common with public corporations.
B) not affected by market conditions.
C) not sensitive to market conditions.
D) not affected by competitors.
Q4) The primary advantage of the price/earnings approach to valuation is that A) it reflects "top value" of the firm.
B) it pays off assets and sells liabilities.
C) it assumes business begins operations.
D) it is simple to use.
Q5) List and briefly explain the three methods utilized for business evaluation.
Page 16
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Chapter 15: Harvesting the Entrepreneurial Venture
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Sample Questions
Q1) One advantage of an early-entry strategy for the younger generation succeeding the older generation of a family business is
A) normal mistakes are viewed as incompetence.
B) perspective of the environment is broadened.
C) successor's skills are judged with more objectivity.
D) skills specifically required by the business are developed.
Q2) Which of the following is a True statement about seeking legal advice with respect to succession planning?
A) Legal advice is seldom beneficial.
B) Legal advice from an advisor who understands succession issues is always crucial.
C) It is seldom crucial for legal advisors to design a plan for succession.
D) The more you pay, the better the advice.
Q3) Harvest strategies rarely involve the complete sale of a business.
A)True
B)False
Q4) External environmental factors do not have any effect on the succession issue.
A)True
B)False
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