Entrepreneurship Exam Solutions
Course Introduction
Entrepreneurship explores the process of identifying, evaluating, and developing new business opportunities. This course covers the fundamentals of launching and managing start-ups, including idea generation, market analysis, business planning, financing, and growth strategies. Students will gain insights into the challenges and rewards of entrepreneurial ventures, develop practical skills through real-world case studies, and learn how to assess risk, innovate, and create value in dynamic business environments. The course aims to inspire creative thinking and equip future entrepreneurs with the tools and mindset required to succeed in the rapidly evolving marketplace.
Recommended Textbook
Entrepreneurship 11th Edition by
Robert D Hisrich
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15 Chapters
1225 Verified Questions
1225 Flashcards
Source URL: https://quizplus.com/study-set/2356
Page 2
Chapter 1: The Entrepreneurial Mind-Set
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52 Verified Questions
52 Flashcards
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Sample Questions
Q1) When entrepreneurs make do by applying combinations of the resources at hand to new problems and opportunities,this is known as:
A) sustainable entrepreneurship
B) perceived desirability
C) entrepreneurial intentions
D) bricolage
Answer: D
Q2) Entrepreneurial Opportunities are defined as:
A) new market entry through entrepreneur action.
B) the entrepreneur's mental processes in deciding whether or not to act on a potential opportunity.
C) a feasibility assessment.
D) situations in which new goods, services, raw materials and organizing methods can be sold at greater than their production cost.
Answer: D
Q3) In a social network there are two major properties,density and centrality.
A)True
B)False
Answer: True
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Page 3
Chapter 2: Corporate Entrepreneurship
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54 Verified Questions
54 Flashcards
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Sample Questions
Q1) Most managers in a corporation are capable of being successful corporate entrepreneurs with the correct training.
A)True
B)False
Answer: False
Q2) Traditionally managed firms typically punish failure.
A)True
B)False
Answer: True
Q3) Entrepreneurial activities tend to immediately affect the bottom line,and hence are seldom overlooked and receive extensive funding and support.
A)True
B)False
Answer: False
Q4) Generally,independent,venture-capital-based start-ups by entrepreneurs tend to outperform corporate start-ups significantly.
A)True
B)False
Answer: True
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Chapter 3: Generating and Exploiting New Entries
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97 Verified Questions
97 Flashcards
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Sample Questions
Q1) Emerging industries are industries that have been around for years but are just starting to experience explosive growth.
A)True
B)False
Answer: False
Q2) When conducting research on a new entry:
A) the more information the entrepreneur has, the more difficult it is to focus on the consumer.
B) the entrepreneur must rely upon surveys more that market knowledge.
C) extensive research is expensive in terms of time and money.
D) lesser prior knowledge is advantageous since it minimizes the risk of entrepreneurial bias.
Answer: C
Q3) Entrepreneurs that delay entry have the advantage of more information about market demand.
A)True
B)False
Answer: True
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Chapter 4: Creativity and the Business Idea
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77 Verified Questions
77 Flashcards
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Sample Questions
Q1) The product Spanx is an example of an ordinary innovation.
A)True
B)False
Q2) Which of the following was not discussed in the text as a breakthrough innovation
A) The airplane
B) The Internet
C) Spanx
D) Penicillin
Q3) In the checklist method,a new idea is developed through a list of related issues or suggestions.
A)True
B)False
Q4) Discuss both the Gordon method and Forced Relationship creative problem solving techniques.
Q5) In parameter analysis a new idea is developed through a list of related issues or suggestions.
A)True
B)False
Q6) Identify and describe the three major types of innovation.
Page 6
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Chapter 5: Identifying and Analyzing Domestic and International Opportunities
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73 Verified Questions
73 Flashcards
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Sample Questions
Q1) Discuss government stability and political risk when applied to international versus domestic business.Identify and briefly describe the three major types of political risk.
Q2) The General Agreement on Tariffs and Trade is an attempt to impose significant tariffs on business between nations.
A)True
B)False
Q3) ________ is a nonprofit organization that provides free online and in-person assistance to entrepreneurs in the form of training,consulting and mentoring provided mainly by retired executives and entrepreneurs.
A) CSBC
B) NAICS
C) SCORE
D) SIC
Q4) List the seven various aspects of culture.
Q5) Nonequity arrangements discussed by the text include licensing,management projects and exporting.
A)True
B)False
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Chapter 6: Protecting the Idea and Other Legal Issues for the Entrepreneur
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76 Verified Questions
76 Flashcards
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Sample Questions
Q1) The term of a copyright is the author's life plus:
A) 20 years.
B) 30 years.
C) 50 years.
D) 70 years.
Q2) Once accepted,the trademark is published in the Trademark Official Gazette to allow any party 90 days to oppose or request an extension to oppose.
A)True
B)False
Q3) Which of the following is true regarding the Sarbanes-Oxley Act
A) It only applies to companies that make over $10 million in gross revenue.
B) Private companies are not included in this act.
C) The act does not cover fraud via TV or radio.
D) The act only covers a narrow range of corporate governance activity.
Q4) One benefit of having a registered trademark is that it provides a basis for filing trademark application in foreign countries.
A)True
B)False
Q5) Explain what makes a contract legally enforceable.
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Chapter 7: The Business Plan: Creating and Starting the Venture
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87 Verified Questions
87 Flashcards
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Sample Questions
Q1) Before beginning the business plan,the entrepreneur should define the venture's goals and objectives.These goals should be:
A) general and broad.
B) feasible.
C) guaranteed.
D) unique.
Q2) The four Cs of credit are computers,capital,compromise,and collateral.
A)True
B)False
Q3) In building a marketing plan,the entrepreneur should use a process designed as a pyramid,starting with narrow data and working down to broader-based information.
A)True
B)False
Q4) The Internet is a useful tool to access information but is generally not a good vehicle for marketing goods and services.
A)True
B)False
Q5) List some of the advantages of using the Internet as a resource tool.
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Chapter 8: The Marketing Plan
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89 Verified Questions
89 Flashcards
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Sample Questions
Q1) Marketing information that already exists is called secondary data.
A)True
B)False
Q2) The ________ is the specific group of potential customers toward which a venture aims its marketing plan.
A) target market
B) external environmental factor
C) channel of distribution
D) consumer market
Q3) The ________ element of the marketing mix involves decisions as to what is the most appropriate channel.
A) product
B) price
C) distribution
D) promotion
Q4) Networking can be used as an informal method of gathering primary data.
A)True
B)False
Q5) Describe the steps in the marketing plan flowchart.
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Chapter 9: The Organizational Plan
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91 Verified Questions
91 Flashcards
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Sample Questions
Q1) In a partnership,the death of a general partner generally does not result in termination of the partnership.
A)True
B)False
Q2) Our text tells us that much of an entrepreneur's time during start-up is spent:
A) putting out fires.
B) negotiating.
C) delegating.
D) allocating resources.
Q3) The corporation can be created only by statute.
A)True
B)False
Q4) When hiring employees for the venture,the entrepreneur should consider the candidate's skills and abilities and avoid considering the individual's personality.
A)True
B)False
Q5) The only source of capital for a corporation is the sale of shares of stock.
A)True
B)False
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Chapter 10: The Financial Plan
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89 Verified Questions
89 Flashcards
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Sample Questions
Q1) In projecting the operating expenses for the second and third year,it is helpful to first look at those expenses that will likely change over time.
A)True
B)False
Q2) Which of the following is likely to be a fixed cost
A) Materials
B) Commissions
C) Depreciation
D) Direct labor
Q3) Fixed expenses are incurred regardless of sales volume.
A)True
B)False
Q4) A ________ summarizes all the projected sources and applications of funds available to the venture and how these funds will be disbursed.
A) pro forma income statement
B) pro forma sources and applications of funds statement
C) break-even analysis
D) cash flow statement
Q5) Explain negative cash flow.How can a profitable firm have negative cash flow
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Chapter 11: Sources of Capital
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93 Verified Questions
93 Flashcards
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Sample Questions
Q1) When a company receives an SBIR grant,any patent rights and software generated belong to:
A) the Federal Government.
B) the bank securing the loan.
C) the Small Business Administration.
D) the entrepreneur.
Q2) Debt financing requires the entrepreneur to repay the amount borrowed plus interest.
A)True
B)False
Q3) A bank may finance up to ________ of a company's accounts receivable.
A) 50 percent
B) 60 percent
C) 70 percent
D) 80 percent
Q4) Explain what problems an entrepreneur might avoid by using bootstrap financing instead of outside capital.
Q5) SBA 7(a)loans can be used for such things as equipment and land.
A)True
B)False
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Chapter 12: Informal Risk Capital, Venture Capital, and Going Public
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95 Verified Questions
95 Flashcards
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Sample Questions
Q1) In the valuation of Internet companies:
A) the book value approach is of primary importance.
B) the replacement value approach plays a significant role.
C) the qualitative portion of due diligence carries much more weight.
D) the factor approach is used the overall value.
Q2) The inventory turnover ratio measures the efficiency of the venture in managing its inventory.
A)True
B)False
Q3) The industry sector receiving the largest share of venture capital in 2017 was in: A) Internet.
B) health care.
C) computer software.
D) computer hardware.
Q4) The return on investment ratio measures the ability of the firm to repay long-term debt using current assets.
A)True
B)False
Q5) Identify the main advantages and disadvantages of going public.
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Chapter 13: Strategies for Growth and Managing the Implication of Growth
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89 Verified Questions
89 Flashcards
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Sample Questions
Q1) ________ refers to a diversification strategy that involves taking a step forward (down)on the value-added chain toward the customers.
A) Backward integration
B) Horizontal integration
C) Forward integration
D) Conglomerate integration
Q2) The most effective use of the interim ________ is to establish cost standards and compare the actual amount with the budgeted amount for that time period.
A) cash flow statement
B) inventory analysis
C) balance sheet
D) income statement
Q3) In a value-added chain,value is added only at the first stage of the chain.
A)True
B)False
Q4) Define and explain the principles of desire,effectiveness and analysis as they relate to time management.
Q5) What are the four main growth strategies discussed in the text Briefly define each.
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Chapter 14: Accessing Resources for Growth From External Sources
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94 Verified Questions
94 Flashcards
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Sample Questions
Q1) In most ________,the debt capital usually exceeds the equity by a ratio of 5:1.
A) mergers
B) leveraged buyouts
C) hostile takeovers
D) franchises
Q2) One method of expanding a business is the purchase of an entire company or part of it so that the entity is completely absorbed and no longer exists as a separate company.This is called:
A) a joint venture.
B) an acquisition.
C) a subsidiary.
D) a takeover.
Q3) In evaluating an LBO's asking price,an entrepreneur can use subjective measures such as evaluating the abilities of key personnel remaining with the firm.
A)True
B)False
Q4) Popular reasons to merge include protection,diversification,and survival.
A)True
B)False
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Chapter 15: Succession Planning and Strategies for
Harvesting and Ending the
Venture
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69 Verified Questions
69 Flashcards
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Sample Questions
Q1) It is best for the entrepreneur to have any litigation in existence transferred to the bankruptcy court.
A)True
B)False
Q2) Which of the following is not an important part of a succession plan
A) Estimate the firm's value
B) Evaluate potential successors based on how similar they are to you
C) Provide a transition period so the successor can learn the business
D) Set a date for completion of the transition and stick to it
Q3) If an entrepreneur recognizes the warning signs of bankruptcy early,he or she may be able to prevent it from occurring.
A)True
B)False
Q4) All of the following are benefits of an ESOP except:
A) the company can deduct contributions to an ESOP.
B) it offers a planned exit in writing.
C) it offers a unique incentive to employees.
D) it is relatively simple to establish.
Q6) What are some of the warning signs of bankruptcy Page 17
Q5) Explain the advantages and disadvantages of an ESOP.
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Page 18