Entrepreneurship Exam Practice Tests
Course Introduction
Entrepreneurship explores the process of identifying, evaluating, and pursuing opportunities to create new ventures or innovate within existing organizations. The course covers essential topics such as idea generation, market analysis, business planning, financing, and growth strategies, while highlighting the challenges and rewards faced by entrepreneurs. Through case studies, practical exercises, and real-world examples, students gain the skills and mindset needed to launch and manage successful entrepreneurial initiatives in a dynamic and competitive marketplace.
Recommended Textbook
Essentials of Entrepreneurship and Small Business Management 9th Edition by Norman M. Scarborough
Available Study Resources on Quizplus
17 Chapters
1957 Verified Questions
1957 Flashcards
Source URL: https://quizplus.com/study-set/2272
Page 2
Chapter 1: The Foundations of Entrepreneurship
Available Study Resources on Quizplus for this Chatper
117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/45125
Sample Questions
Q1) What steps should Bill take to avoid the pitfalls common to a small business?
Answer: Generally, it appears that Bill has a good chance of becoming a success if he can overcome the weaknesses mentioned above. The established business-and its reputation-that Bill is purchasing are important benefits.
Q2) Expanding a business usually requires no significant changes in structure or business practices.
A)True
B)False
Answer: False
Q3) Small companies have created at least two-thirds of the net new jobs in the U.S. economy.
A)True
B)False Answer: True
Q4) The majority of new business owners work fewer than 40 hours per week.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Ethics and Social Responsibility: Doing the Right Thing
Available Study Resources on Quizplus for this Chatper
109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/45124
Sample Questions
Q1) The law is the narrowest level of ethical standards.
A)True
B)False Answer: True
Q2) A company's strategic plan defines the values underlying the entire company and its ethical responsibilities to its stakeholders.
A)True
B)False Answer: False
Q3) One of the most important group of stakeholders that a business must satisfy is its ________.
A)customers
B)employees
C)investors
D)banks
Answer: A
Q4) Sexual harassment is a violation of Title VII of the Civil Rights Act of 1964.
A)True
B)False Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Creativity and Innovation: Keys to Entrepreneurial Success
Available Study Resources on Quizplus for this Chatper
118 Verified Questions
118 Flashcards
Source URL: https://quizplus.com/quiz/45126
Sample Questions
Q1) The U.S. Copyright Office does not require registering creative work because registering it does not give creators greater protection over their work.
A)True
B)False
Answer: False
Q2) Steps in the patent process include ________.
A)establishing whether it is a novelty
B)documenting and verifying the date the idea was first conceived
C)searching existing patents
D)All of the above
Answer: D
Q3) Employees must be given the tools and resources they need to be creative. One of the most valuable set of resources is ________.
A)setting limits and providing challenges
B)establishing rules and guidelines
C)time, support and encouragement
D)reinforce traditional problem solving methods
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Conducting a Feasibility Analysis and Designing a Business Model
Available Study Resources on Quizplus for this Chatper
112 Verified Questions
112 Flashcards
Source URL: https://quizplus.com/quiz/45128
Sample Questions
Q1) The financial feasibility analysis takes these aspects into consideration: ________.
A)capital requirements, human resources, and return on investment
B)capital requirements, estimated earnings, and return on investment
C)capital requirements, estimated earnings, and return on sales
D)capital requirements, estimated earnings, and return on owner's equity
Q2) Generation Y and Generation Z are examples of ________ changes.
A)economic
B)demographic
C)technological
D)sociocultural
Q3) Changing demographics create opportunities for entrepreneurs.
A)True
B)False
Q4) The primary purpose of the five forces matrix is to ________.
A)assign values to each of the five elements
B)provide a graphic
C)list the five forces in rank order
D)assess the five forces as compared to a standard value
Q5) What are the parameters used in an idea sketch pad?
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Crafting a Business Plan and Building a Solid Strategic Plan
Available Study Resources on Quizplus for this Chatper
129 Verified Questions
129 Flashcards
Source URL: https://quizplus.com/quiz/45129
Sample Questions
Q1) After a company's strengths and weaknesses are assessed, the strategic planning process should identify opportunities and threats facing the company and should isolate the key factors for success in business.
A)True
B)False
Q2) Which of the following is not a characteristic of the strategic management procedure for a small company?
A)It should use a relatively short planning horizon (i.e., two years or less, typically).
B)It should begin with an extensive objective-setting session.
C)It should encourage the participation of employees and even outsiders to improve the reliability and creativity of the resulting plan.
D)It should allow for flexibility and not be overly structured.
Q3) What is a competitive advantage? Does Cherry Lane have one? If so, what is it?
Q4) As Ed and Yolanda begin the strategic planning process, what steps should they take?
Q5) Why is covering the company's business model one of the basic areas in a business plan presentation?
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Forms of Business Ownership
Available Study Resources on Quizplus for this Chatper
83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/45130
Sample Questions
Q1) Which form of ownership generally has the least ability to accumulate capital?
A)Partnership
B)Sole proprietorship
C)Corporation
D)S corporation
Q2) When filing the corporate charter, a corporation must file in the state in which its headquarters are located.
A)True
B)False
Q3) Which of the following is not true of a limited liability partnership?
A)All partners are limited partners.
B)Most states restrict this form of ownership to certain types of professions such as attorneys, physicians, dentists, accountants, etc.
C)Although LLPs have many of the characteristics of partnerships, they are taxed as a corporation.
D)It must involve a general partner, a limited partner, a silent partner, and a dormant partner.
Q4) Would a limited liability corporation be any better for Duke? Why or why not?
Q5) Should Duke incorporate or should he remain a proprietorship? Why?
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Buying an Existing Business
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/45131
Sample Questions
Q1) An entrepreneur should never purchase a business that is losing money.
A)True
B)False
Q2) Your friend Susan is considering purchasing an existing business. How would you explain to her what due diligence is, why it is important, and the critical areas of it?
Q3) Discounted future earnings is the most common business valuation method.
A)True B)False
Q4) When evaluating the assets of an existing business, the inventory ________.
A)is always current and salable
B)usually appreciates over time, making the business a bargain
C)should be judged on the basis of its market value, not its book value
D)is usually stated honestly and does not need an independent audit
Q5) Value is determined in the market, not on a balance sheet. A)True B)False
Q6) Book value is the same as market value.
A)True
B)False
9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Franchising and the Entrepreneur
Available Study Resources on Quizplus for this Chatper
69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/45132
Sample Questions
Q1) Franchisees in fast-growing systems reap the benefits of the franchisor's expanding reach, but they also may encounter the downside of a franchisor's aggressive growth strategy - market saturation.
A)True
B)False
Q2) In a ________ franchise, a franchisee has the right to create a semi-independent organization in a particular territory to recruit, sell, and support other franchisees.
A)multiple-unit
B)master
C)conversion
D)cobranding
Q3) Some franchisors offer ________ to give existing franchisees the right to exclusive distribution of brand name goods or services within a particular geographic area.
A)territorial protection
B)exclusive rights
C)guaranteed protection
D)exclusivity
Q4) Outline the recommended procedure for buying a franchise.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Building a Powerful Bootstrap Marketing Plan
Available Study Resources on Quizplus for this Chatper
117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/45133
Sample Questions
Q1) Describe what is meant by bootstrap marketing. What objectives should a bootstrap marketing plan accomplish? List at least five bootstrap marketing tactics your small business might be able to use successfully.
Q2) Secondary research data is less time consuming and less costly to gather than primary research data.
A)True
B)False
Q3) Companies with strong reputations for quality follow certain guidelines, such as
A)establishing long-term relationships with suppliers
B)fostering individual effort and pride of workmanship
C)securing employees' commitment to the quality philosophy; it is not important to secure top management's full support, as the employees are the ones who work more closely with the products and the customers
D)All of the above
Q4) A critical marketing step is to clearly define their target market.
A)True
B)False
Q5) How can Marvin develop "stellar" customer service?
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: E-Commerce and the Entrepreneur
Available Study Resources on Quizplus for this Chatper
142 Verified Questions
142 Flashcards
Source URL: https://quizplus.com/quiz/45134
Sample Questions
Q1) Visitors begin to evaluate the credibility of a Web site as soon as they arrive. Which of the following does not help develop a site's credibility?
A)Posting a privacy policy.
B)Citing reference sources.
C)Presenting fair and objective information.
D)Avoiding the promotion of brand names.
Q2) A measurement of the cost a company incurs to generate each purchase or customer registration is the ________.
A)cost per acquisition (CPA)
B)bounce rate
C)conversion ratio
D)browser-to-buy ratio
Q3) E-commerce is replacing traditional retailing.
A)True
B)False
Q4) Web-based companies should not be concerned with supply-chain management, warehouses, or typical customer service policies.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Pricing and Credit Strategies
Available Study Resources on Quizplus for this Chatper
114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/45127
Sample Questions
Q1) For setting prices, full absorption financial statements are much more useful to the small business owner than are direct cost statements.
A)True
B)False
Q2) An entrepreneurial company can differentiate itself by creating a distinctive image in customers' minds or by offering ________.
A)superior service and quality
B)exceptional design and convenience
C)speed and performance
D)All the above
Q3) A technique that greatly simplifies the pricing function by pricing different products in a product line at different price points, depending on their quality, features and cost, is referred to as odd pricing.
A)True
B)False
Q4) What is Miller Manufacturing's break-even price?
Q5) Describe two situations - one where you consider dynamic pricing is ethical and the other where dynamic pricing is unethical.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Creating a Successful Financial Plan
Available Study Resources on Quizplus for this Chatper
140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/45135
Sample Questions
Q1) Cash requirements can be determined by dividing cash expenses by ________.
A)liabilities
B)accounts receivables
C)total assets
D)the average inventory turnover
Q2) Slow accounts receivable are a real danger to a small business because they often lead to cash crises.
A)True
B)False
Q3) Which of the following combinations of ratios would indicate that a company is financially mismanaged and is not a good credit risk?
A)High liquidity; high leverage
B)Low liquidity; high leverage
C)High liquidity; low leverage
D)Low liquidity; low leverage
Q4) The small business with a high debt-to-net worth ratio has more borrowing capacity than a firm with a low ratio.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Managing Cash Flow
Available Study Resources on Quizplus for this Chatper
144 Verified Questions
144 Flashcards
Source URL: https://quizplus.com/quiz/45136
Sample Questions
Q1) By planning cash needs ahead of time, a small business is able to achieve all but which of the following?
A)Make the most efficient use of available cash.
B)Provide the opportunity to forgo quantity and cash discounts.
C)Finance seasonal business needs.
D)Provide funds for expansion.
Q2) The cash budget is nothing more than a forecast of the firm's cash inflows and outflows for a specific time period, and it will never be completely accurate.
A)True
B)False
Q3) Why is cash a unique asset? What are the advantages of efficient cash management?
Q4) Typically, small business owners should prepare a projected weekly cash budget for at least six months and quarterly estimates for the remainder of the year, being careful to cover all seasonal sales fluctuations.
A)True
B)False
Q5) What steps can a small business owner take to minimize bad debt losses?
Q6) What steps can a small business owner take to avoid the cash "crunch"?
Page 15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Choosing the Right Location and Layout
Available Study Resources on Quizplus for this Chatper
114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/45137
Sample Questions
Q1) To calculate the IRS, a retailer needs to know the number of customers in the area, the retail expenditures for her/his product, and the total square feet of space allocated to selling her/his kind of product in the trading area.
A)True
B)False
Q2) Clothing is one of the most popular items sold in regional shopping malls.
A)True
B)False
Q3) For some retailers, locating near competitors makes sense because similar businesses located near one another can increase traffic flow to all.
A)True
B)False
Q4) What site analysis criteria are relevant to Terry and Judy's evaluation of the restaurant's location?
Q5) The customer group that spends the most time in shopping malls is teenagers between the ages of 14 and 17.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Sources of Financing: Equity and Debt
Available Study Resources on Quizplus for this Chatper
117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/45138
Sample Questions
Q1) Loans made under the SBA's Disaster Loan Program carry below-market interest rates and are designed to provide assistance to small businesses that have been the victims of a variety of disasters, such as hurricanes, floods, earthquakes, and tornadoes.
A)True
B)False
Q2) The primary disadvantage of equity capital is that the entrepreneur ________. A)must repay it at some point with interest B)must give up some (perhaps most)of the ownership in the business to outsiders C)experiences the disadvantage of the risk/return tradeoff in the form of higher interest rates
D)B and C above
Q3) While equity capital represents the personal investment of the owner(s)of a business and does not have to be repaid, debt capital is a liability that must be repaid with interest in the future.
A)True
B)False
Q4) Explain the difference between equity and debt capital. What advantages and disadvantages characterize each?
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Global Aspects of Entrepreneurship
Available Study Resources on Quizplus for this Chatper
133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/45139
Sample Questions
Q1) As the trend toward increased globalization continues, successful companies must consider themselves businesses without borders.
A)True
B)False
Q2) A tariff is a limit on the amount of a product imported into a country.
A)True
B)False
Q3) A letter of credit is an agreement between an exporter's bank and a foreign buyer's bank that guarantees payment to the exporter for a specific shipment of goods.
A)True
B)False
Q4) The Foreign Corrupt Practice Act, passed in 1977, considers bribing foreign officials to be a criminal act.
A)True
B)False
Q5) Describe the other barriers to trade, including political, business, and cultural.
Q6) Identify and discuss the domestic barriers to trade.
Q7) Identify and discuss the international barriers to trade.
Page 18
To view all questions and flashcards with answers, click on the resource link above.
Chapter 17: Building a New Venture Team and Planning for the Next Generation
Available Study Resources on Quizplus for this Chatper
119 Verified Questions
119 Flashcards
Source URL: https://quizplus.com/quiz/45140
Sample Questions
Q1) The majority of first-generation family businesses do not survive into the second generation.
A)True
B)False
Q2) List at least ten of the seventeen behaviors that effective leaders exhibit.
Q3) Develop a list of interview questions to help Wallace select the right person for the following jobs:
Head chef
Wait staff
Dishwasher
Host/Hostess
Q4) In job enrichment, ________ is the degree to which a job allows a worker to complete a whole or identifiable piece of work.
A)skill variety
B)task identity
C)task significance
D)autonomy
Q5) Is Norm Schultz correct in his attitude about workers not wanting recognition?
Q7) Has Wallace waited too long to begin searching for employees? Page 19
Q6) What do you think about Norm Schultz's attitudes toward employees?
To view all questions and flashcards with answers, click on the resource link above.
Page 20