Entrepreneurship
Exam Answer Key
Course Introduction
Entrepreneurship is a dynamic course that explores the processes and challenges involved in developing, launching, and managing new business ventures. Students will investigate the fundamentals of identifying opportunities, creating business plans, securing financing, and navigating legal and ethical considerations. The course emphasizes innovative thinking, risk assessment, and strategic decision-making, equipping learners with practical skills to start and sustain successful enterprises in diverse industries. Through case studies, interactive projects, and real-world examples, students gain insights into the mindset and competencies required to thrive as entrepreneurs in today's competitive market.
Recommended Textbook
Entrepreneurship 9th Edition by
Robert D Hisrich
Available Study Resources on Quizplus
15 Chapters
1225 Verified Questions
1225 Flashcards
Source URL: https://quizplus.com/study-set/3098
Page 2
Chapter 1: Entrepreneurship and the Entrepreneurial
Mind-Set
Available Study Resources on Quizplus for this Chatper
49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/61403
Sample Questions
Q1) In the causal process of thinking:
A)starts with a desired outcome and focuses on a means to generate that outcome.
B)starts with what one has and selects among possible outcomes.
C)involves bricolage.
D)starts with brainstorming by meeting with industry professionals.
Answer: D
Q2) As the venture becomes established and starts growing,which of the following types of experience becomes increasingly important?
A)Technical
B)Financing
C)Managerial
D)Marketing
Answer: C
Q3) Structural similarities exist when the underlying mechanisms of the technology resemble,or match,the underlying mechanisms of the market.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Entrepreneurial Intentions and Corporate Entrepreneurship
Available Study Resources on Quizplus for this Chatper
48 Verified Questions
48 Flashcards
Source URL: https://quizplus.com/quiz/61402
Sample Questions
Q1) In encouraging a culture for corporate entrepreneurship,using older,proven,technology is recommended in order to increase stability in the organization.
A)True
B)False
Answer: False
Q2) Corporate venturing consists of creating something new of value either by redefining the company's current products or services,developing new markets,or forming more formally autonomous or semiautonomous units or firms.
A)True
B)False Answer: True
Q3) Robert Mondavi Winery was the first Californian to produce and market premium wines that were expected to compete with European wines.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Entrepreneurial Strategy: Generating and Exploiting New Entries
Available Study Resources on Quizplus for this Chatper
93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/61401
Sample Questions
Q1) Customers always embrace change in products and services.
A)True
B)False Answer: False
Q2) Adaptations necessary to meet changes in market demand are difficult because an organization resists change.
A)True
B)False Answer: True
Q3) Which among the following is not a key stage of the entrepreneurial strategy?
A)Market research to identify a new entry opportunity.
B)Generation of a new entry opportunity.
C)Exploitation of a new entry opportunity.
D)A feedback loop from the culmination of a new entry generation and exploitation back to generation of a new opportunity.
Answer: A
Q4) A narrow scope strategy reduces the risks associated with competition.
A)True
B)False Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Creativity and the Business Idea
Available Study Resources on Quizplus for this Chatper
87 Verified Questions
87 Flashcards
Source URL: https://quizplus.com/quiz/61400
Sample Questions
Q1) The _______ is defined as the stages each product goes through from introduction to decline.
A)entrepreneurial decision making process
B)test marketing process
C)product planning and development process
D)product life cycle
Q2) Which area of e-commerce experienced the largest increase in sales from 2010-2011?
A)Digital content and subscriptions
B)Events tickets
C)Consumer Electronics
D)Jewelry and watches
Q3) One evaluation method successfully used in the concept stage is the systematic market evaluation checklist.
A)True
B)False
Q4) When evaluating new product development,the criteria should be exclusive and subjective.
A)True
B)False
Page 6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Identifying and Analyzing Domestic and International Opportunities
Available Study Resources on Quizplus for this Chatper
73 Verified Questions
73 Flashcards
Source URL: https://quizplus.com/quiz/61399
Sample Questions
Q1) Which of the following is not an aspect of nonverbal or hidden language?
A)Energy
B)Business relationships
C)Space
D)Time
Q2) If the legal system of the country the global entrepreneur is dealing with does not have a good track record,it is not possible for the contract to contain any agreement that contract disputes will be heard in the courts of a different country or home country.
A)True
B)False
Q3) Which of the following statement is (are)true?
A)Most countries have laws and court procedures protecting intellectual property such as those in the United States.
B)Civil laws tend to be relatively nonspecific.
C)Laws of a country regulate the manner in which business transactions are executed.
D)Global entrepreneurs cannot specify in the contract that any contract disputes will be heard in the courts of another country.
To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 6: Intellectual Property and Other Legal Issues for the Entrepreneur
Available Study Resources on Quizplus for this Chatper
76 Verified Questions
76 Flashcards
Source URL: https://quizplus.com/quiz/61398
Sample Questions
Q1) List the four requirements of filing for a trademark.
Q2) What type of insurance would cover fire or burglary damage?
A)Property
B)Bonding
C)Life
D)Workers' Compensation
Q3) Authors or publishers of software are protected under:
A)copyrights.
B)trademarks.
C)utility patents.
D)trade secrets.
Q4) An example of a business method patent is Amazon.com's single clicking feature used by a buyer to order products.
A)True
B)False
Q5) Licensing represents opportunities for:
A)expanding into new markets.
B)reach more customers in existing target markets.
C)an entrepreneur to profit with less risk and costly start-up investment.
D)an entrepreneur to gain access to others' copyrights,trademarks and patents.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: The Business Plan: Creating and Starting the Venture
Available Study Resources on Quizplus for this Chatper
89 Verified Questions
89 Flashcards
Source URL: https://quizplus.com/quiz/61397
Sample Questions
Q1) Groups of Internet visitors who share opinions and have similar interests are called:
A)page groups.
B)newsgroups.
C)library sources.
D)news homes.
Q2) _______ identifies potential hazards and alternative strategies to meet business plan goals and objectives.
A)Assessment of risk
B)Financial planning
C)Alternative planning analysis
D)The financial plan
Q3) While preparing the first draft of the business plan,the entrepreneur should not:
A)prepare it from his or her personal viewpoint.
B)take into consideration the constituencies that will ultimately read and evaluate the plan's feasibility.
C)prepare it with an aim to identify possible barriers to success.
D)try to define the goals and objectives of the venture.
Q4) Draw the Upside-Down Pyramid Approach to Gathering Market Information.
Page 9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: The Marketing Plan
Available Study Resources on Quizplus for this Chatper
89 Verified Questions
89 Flashcards
Source URL: https://quizplus.com/quiz/61396
Sample Questions
Q1) Business-to-business marketing involves:
A)sales to households for personal consumption.
B)a more direct channel of distribution than consumer markets.
C)selling products such as household furniture.
D)selling products and services through certified representatives.
Q2) A focus group should consist of:
A)6-8 potential customers
B)10-12 potential customers
C)14-16 potential customers
D)18-20 potential customers
Q3) The first step in conducting a competitive analysis is to document the pricing strategy of each competitor.
A)True
B)False
Q4) Which of the following is (are)not a key element in the pricing strategy?
A)Cost
B)Margin or markup
C)Competition
D)Distribution
Q5) Identify and explain the three basic questions a marketing plan should answer.
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: The Organizational Plan
Available Study Resources on Quizplus for this Chatper
91 Verified Questions
91 Flashcards
Source URL: https://quizplus.com/quiz/61395
Sample Questions
Q1) The board of directors should be an even number of members.
A)True
B)False
Q2) To build a successful organization culture the entrepreneur:
A)should focus and not try out different things.
B)needs to remember that it is easier to change a person's attitude than it is to change the person's behavior.
C)should spend extra time in the hiring process.
D)must create a workplace where communication from the top down is encourageD.
Q3) In the partnership,profit and loss distribution is determined by the partnership agreement.
A)True
B)False
Q4) Discuss the main advantages of an LLC over an S-Corp.
Q5) According to Cynthia Kocialski an advisory board should have:
A)2 members.
B)4 members.
C)6 members.
D)8 members.
Q6) Discuss the six main functions of a board of directors.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: The Financial Plan
Available Study Resources on Quizplus for this Chatper
88 Verified Questions
88 Flashcards
Source URL: https://quizplus.com/quiz/61394
Sample Questions
Q1) In an Internet start-up,advertising costs will be extensive to create awareness of the website.
A)True
B)False
Q2) Financial projections to assess the impact of different scenarios are calculated using:
A)a spreadsheet program.
B)an inventory management program.
C)the Internet.
D)a graphics program.
Q3) An entrepreneur focuses on the operating costs before completion of the sales budget.
A)True
B)False
Q4) Which of the following would be a source of funds?
A)An equipment purchase
B)Retiring a long term liability
C)Inventory
D)Personal funds of founders
Q5) Define the contribution margin and its importance.
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Sources of Capital
Available Study Resources on Quizplus for this Chatper
97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/61393
Sample Questions
Q1) In limited partnerships:
A)the liability for any loss incurred is borne by the company.
B)the sponsoring company acts as the general partner.
C)there is no special tax benefit for partners.
D)the sponsoring company does not retain rights to use any base technology to develop other products.
Q2) In a factoring arrangement,the bank lends the business money using inventory as collateral.
A)True
B)False
Q3) The type of funds most frequently used by businesses is externally generated funds.
A)True
B)False
Q4) A "commitment fee" is used in arranging for a:
A)commercial loan.
B)character loan.
C)installment loan.
D)line of credit.
Q5) Explain the three major components of an R&D partnership.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Informal Risk Capital, venture Capital, and Going Public
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/61392
Sample Questions
Q1) After the completion of the preliminary preparation,the first public offering normally requires three to six months to prepare,print,and file the registration statement with the SEC.
A)True
B)False
Q2) Early-stage financing is usually the least costly type of financing to obtain.
A)True
B)False
Q3) The factor approach:
A)uses the net tangible asset value in valuation.
B)is used only for insurance purposes.
C)uses earnings,dividend capacity,and book value.
D)assesses the comparable publicly held companies to determine the company's worth.
Q4) With the enactment of the Sarbanes-Oxley Act in 2002,the expense and administrative responsibilities of being a public company,as well as the liability risks of officers and directors,are significantly greater.
A)True
B)False
Q5) What are the three types of risk capital markets?
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Strategies for Growth and Managing the Implication of Growth
Available Study Resources on Quizplus for this Chatper
82 Verified Questions
82 Flashcards
Source URL: https://quizplus.com/quiz/61391
Sample Questions
Q1) As a firm grows,higher volume increases production efficiency and increases its bargaining power with suppliers.
A)True
B)False
Q2) When compared to the costs of carrying excess inventory,the cost of lost sales is insignificant and should be ignored.
A)True
B)False
Q3) What benefits can an entrepreneur receive from better time management?
Q4) A market development strategy would not involve:
A)selling the existing product in new locations.
B)offering the same product to a different demographic group.
C)using customer experience to develop new uses for the existing product.
D)selling new products to consumer's purchasing the firm's existing products.
Q5) Many entrepreneurs find that as they grow they need to change their management style.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15
Q6) What are the 4 main growth strategies discussed in the text? Briefly define each.
Chapter 14: Accessing Resources for Growth From External Sources
Available Study Resources on Quizplus for this Chatper
90 Verified Questions
90 Flashcards
Source URL: https://quizplus.com/quiz/61390
Sample Questions
Q1) The bootstrap purchase of assets:
A)is a direct purchase of the entire assets of a firm.
B)means the entrepreneur purchases a small percentage of a firm for cash.
C)frequently results in a long-term capital gain to the seller.
D)results in double taxation.
Q2) The __________ is the range of outcomes between the entrepreneur's reservation price and the reservation price of the other party.
A)reservation price
B)franchise price
C)bargaining zone
D)break even price
Q3) An acquisition is the purchase of a company,or part of a company,in which the acquired company ceases to exist independently.
A)True
B)False
Q4) Franchising involves payment of royalties in exchange for exclusive distribution rights.
A)True
B)False
Chapter 15: Succession Planning and Strategies for
Harvesting and Ending the Venture
Available Study Resources on Quizplus for this Chatper
71 Verified Questions
71 Flashcards
Source URL: https://quizplus.com/quiz/61389
Sample Questions
Q1) A common reason why companies do not come out successfully from a Chapter 11 bankruptcy is because they ____.
A)are in denial.
B)don't have legal representation.
C)wait too long to file for protection.
D)do not understand the bankruptcy process.
Q2) An effective succession plan should be communicated only to top management and not all employees.
A)True
B)False
Q3) The U.S.Commerce Department indicates that about 70 percent of successful ventures never make it to the second generation of ownership.
A)True
B)False
Q4) Currently ESOPs account for ____ of the private sector workforce.
A)5%
B)10%
C)15%
D)20%
Page 17
To view all questions and flashcards with answers, click on the resource link above.