Entrepreneurship Fundamentals
Pre-Test Questions
Course Introduction
Entrepreneurship Fundamentals introduces students to the core concepts and processes involved in launching and managing new ventures. The course covers topics such as opportunity recognition, business model development, resource acquisition, financial planning, and risk management. Students will explore the mindset and skills required to succeed as an entrepreneur, analyze real-world case studies, and learn how to create compelling business plans. Through interactive discussions and practical assignments, learners will develop the foundational knowledge and tools necessary to navigate the challenges and opportunities in the entrepreneurial landscape.
Recommended Textbook
Entrepreneurship A Process Perspective 2nd Edition by Robert A. Baron
Available Study Resources on Quizplus
13 Chapters
745 Verified Questions
745 Flashcards
Source URL: https://quizplus.com/study-set/637
Page 2
Chapter 1: Entrepreneurship:: A Field, an Activity - and a Way of Life
Available Study Resources on Quizplus for this Chatper
55 Verified Questions
55 Flashcards
Source URL: https://quizplus.com/quiz/12071
Sample Questions
Q1) The process of entrepreneurship involves a chain of events and activities that takes place over a period of time.
A)True
B)False
Answer: True
Q2) Companies like Expedia.com probably could not have been started ten or more years ago because the technological,economic,and social forces were not right to present the opportunity to start such a company.
A)True
B)False
Answer: True
Q3) A person is conducting research concerning a certain theory about entrepreneurship. The findings of the research contradict the theory. This proves the theory to be false.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Entrepreneurial Opportunities: Their
Forms, and Suitability For New Ventures
Available Study Resources on Quizplus for this Chatper
61 Verified Questions
61 Flashcards
Source URL: https://quizplus.com/quiz/12072
Sample Questions
Q1) Explain why the concept of a dominant design is important to entrepreneurship.
Answer: The concept refers to a common approach or standard to make a product. It is important because new firms usually do better when they can adopt their own. Before a dominant design is established,entrepreneurs can adopt any design that they feel is best for their new service or product. When a dominant design already exists,not only does the firm have to use a design that the established firms have more experience with,but when a dominant design had been established,the basis of competition within an industry changes. Firms must now compete to see who can make the standard design the most efficiently.
Q2) Which of the following conditions would be most favorable to an entrepreneurial company?
A) Low intensity of R&D.
B) High intensity of R&D.
C) Locus of innovation is with large companies.
D) High fixed costs to start a company.
E) An industry that is in the mature stage of the life cycle.
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Cognitive Foundations of Entrepreneurship:
Creativity and Opportunity Recognition
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/12073
Sample Questions
Q1) Discuss the idea of prototypes and explain how prototypes could help or hinder creativity.
Answer: A prototype is an abstract,idealized mental representation that captures the essence of a category of objects. Sometimes,a prototype is taken a step further in that a "sample,or example" product has been created. A prototype can help or hinder creativity and opportunity recognition. An existing prototype for a product can interfere with creativity because people may well think of the product in terms of the prototype. Truly different aspects of the product are probably "driven out" because a person thinks of the product as looking like,and probably operating like,the prototype. On the other hand,prototypes can be helpful by providing a framework for interpreting new information and eliminating design flaws.
Q2) Planning fallacy is one common form of
A) confirmation bias.
B) illusion of control.
C) predictability bias.
D) optimistic bias.
E) control bias.
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: What Entrepreneurs Need to Know Before They
Start: Acquiring and Interpreting Information About Markets
Competitors and Government
Available Study Resources on Quizplus for this Chatper
59 Verified Questions
59 Flashcards
Source URL: https://quizplus.com/quiz/12074
Sample Questions
Q1) The higher the marginal tax rate in the United States,the lower the rate of self-employment.
A)True
B)False
Q2) Smart entrepreneurs will always be able to anticipate which new products or services will be adopted by customers.
A)True
B)False
Q3) Discuss several government organizations designed to assist entrepreneurs. What is the goal of each?.
Q4) Why is it important for entrepreneurs to gather marketing information before starting a new venture and what are some ways of gathering information?
Q5) People in a group are making a decision as a group. The members do not want to bring up information that they think is critical of the decision being discussed. This is known as groupthink.
A)True
B)False
Q6) Explain the "discovery test." Page 6
To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 5: Assembling the Team: Acquiring and Utilizing Essential Human Capital
Available Study Resources on Quizplus for this Chatper
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/12075
Sample Questions
Q1) Corporations are usually required by law to have a board of directors;unincorporated new businesses are required by law to have a board of advisers.
A)True
B)False
Q2) Conscientiousness,one of the "Big Five Dimensions," is
A) the extent to which individuals are hardworking, organized, dependable, and persevering versus sluggish, disorganized, and unreliable.
B) the degree to which individuals are gregarious, assertive, and sociable versus being reserved, timid, and quiet.
C) the extent to which individuals are cooperative, courteous, trusting, and agreeable versus uncooperative, disagreeable, and belligerent.
D) the degree to which individuals are insecure, anxious, depressed, and emotional versus calm, self-confident, and secure.
E) none of the above.
Q3) Explain the advantages and disadvantages of having temporary employees rather than permanent employees.
Q4) What is the "Big Five?"
Page 8
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Financial Resources For New Ventures: How To
Them, How To Manage Them
Available Study Resources on Quizplus for this Chatper
61 Verified Questions
61 Flashcards
Source URL: https://quizplus.com/quiz/12076
Sample Questions
Q1) Which one of the following types of debt is the most common for new ventures that do obtain debt financing?
A) Guaranteed by personal assets.
B) Asset-based financing.
C) Supplier credit.
D) A and B only.
E) A, B, and C.
Q2) Most new ventures require large amounts of start-up capital.
A)True
B)False
Q3) Total assets divided by total debt is called
A) the income statement ratio.
B) debt ratio.
C) operating expenses.
D) cost of sales.
E) profit margin.
Q4) Define debt and equity financing and discuss how they differ from each other.
Q5) Explain how you making a loan and then buying a car with the proceeds from the loan is the same thing as asset-based financing used by a business.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 7: Writing An Effective Business Plan: Building A
Road Map to Success
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/12077
Sample Questions
Q1) A step that will help ensure that a verbal presentation will match the high quality of a business plan is
A) to choose the content carefully.
B) to remember that you are trying to persuade, not overwhelm.
C) to show enthusiasm, but temper it with reality checks.
D) to rehearse the presentation.
E) Al of the above.
Q2) Milestones,in a business plan refer to
A) a type of product made to mark distances on interstate highways.
B) important things to be accomplished that can serve as goals and as measures of when the important things are accomplished.
C) the total amount of revenue from sales.
D) the explanation of the experiences of the key managers.
E) risk factors.
Q3) Part of the reason that it is important to have a well written,persuasive business plan is because it can usually hide from investors the fact that the business has little economic potential or is not a sound idea.
A)True
B)False
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Legal Issues Relating To New Ventures:
Protecting Your Reputation, Your Assets, And Your Ideas
Available Study Resources on Quizplus for this Chatper
55 Verified Questions
55 Flashcards
Source URL: https://quizplus.com/quiz/12078
Sample Questions
Q1) Which of the following does not pertain to limited partnerships?
A) Limited Liability Partnerships.
B) General Partners.
C) Limited Partners.
D) Limited Partnership Agreement.
E) All of the above pertain to limited partnerships.
Q2) Which of the following is a not a true statement concerning sole proprietorships?
A) Sole Proprietorships are easy to start but almost impossible to terminate.
B) The entrepreneur is personally liable for all debts incurred by the business.
C) If the entrepreneur is no longer able to operate the business, it must be terminated unless someone else is willing to operate it.
D) Sole Proprietorships amount to about 75% of all the businesses in the United States.
E) All of the above are true.
Q3) Under what conditions might a first mover strategy help protect an entrepreneur's intellectual property? Explain how these conditions might favor the first mover.
Q4) Compare and contrast a sole proprietorship and a franchise.
Q5) Explain "consideration" as a basic element of a contract.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 9: Marketing in a New Venture
Available Study Resources on Quizplus for this Chatper
56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/12079
Sample Questions
Q1) According to the authors of the textbook,which of the following is the first thing an entrepreneur needs to do when deciding to start a new business?
A) Design the package for the new product.
B) Make sure there is a real need for the new product.
C) Start advertising before the product is designed.
D) Decide the salary to be paid to people in the business.
E) Decide how many people to hire for the business.
Q2) It is easier to gather information from customers in a new target market than it is from well-established target markets.
A)True
B)False
Q3) If an entrepreneurial firm gets its product to be accepted as the dominant design,that means its product is the very best one on the market. A)True
B)False
Q4) What are three reasons why entrepreneurs fail to obtain information from customers?
Q5) Identify and explain an example using the product development S-curve?
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 10: Strategy: Planning For Competitive Advantage
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/12080
Sample Questions
Q1) Which of the following is least likely to be related to a hierarchical mode of market exploitation?
A) Hold-up of outlet operators.
B) Disclosure of knowledge.
C) Tacit business idea.
D) Adverse selection of potential employees.
E) None of the Above.
Q2) A chemist developed a way to mix three chemicals together in such a way that they result in a very strong,yet flexible glue. Only the chemist knows how to do this. It is known as a/an
A) arrow's paradox.
B) trade secret.
C) government permit.
D) franchise effect.
E) self-efficacy.
Q3) Adverse selection occurs when people take actions that benefit themselves at the expense of others.
A)True
B)False
Q4) Explain technical uncertainty.
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Preparing For And Attaining Growth: Strategies
For Building Lasting Success
Available Study Resources on Quizplus for this Chatper
54 Verified Questions
54 Flashcards
Source URL: https://quizplus.com/quiz/12081
Sample Questions
Q1) High-growth companies are more likely to get involved in relationships with other companies than are low-growth companies.
A)True
B)False
Q2) Research shows that growth of a new business is always related to long-term financial success.
A)True
B)False
Q3) An acquisition occurs when two companies join together by mutual agreement.
A)True
B)False
Q4) Developing a new product is an example of which of the following strategies?
A) Advertising.
B) Internal.
C) Low-growth.
D) External.
E) Managerial capacity.
Q5) Acquisition is defined as one company purchasing another. A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 12: Managing New Ventures For Growth
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/12082
Sample Questions
Q1) An entrepreneur believes that her employees will act in the ways they promised because they know they will be punished if they do not,the manager is relying upon
A) identification-based trust.
B) calculus-based trust.
C) justice-based trust.
D) personal-based trust.
E) None of the above are true.
Q2) Define transformational leadership. Identify and explain the characteristics that are associated with transformational leadership.
Q3) It is common for an entrepreneurship to have more detailed job descriptions and job analyses than larger companies because smaller businesses tend to not have all the formal training and therefore rely more on the paperwork.
A)True
B)False
Q4) After the hiring process,the next important thing is to make sure that trained employees stay with the company.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 13: Exit Strategies For Entrepreneurs: The
Concluding Act
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/12083
Sample Questions
Q1) When negotiating,it is best to "win at all costs."
A)True
B)False
Q2) Which of the following is an example of an intangible asset?
A) Money.
B) Office chair.
C) Outstanding employee.
D) Lost inventory.
E) Sales revenues.
Q3) Explain what is involved in an ordinary Employee Stock Ownership Plan (ESOP).
Q4) Which of the following is associated most directly with the time value of money?
A) Book value of assets.
B) Discounted future earnings.
C) Net worth.
D) Sales revenue for last month.
E) Initial public offering.
Q5) What does "win-win" mean?
Q7) Explain what leveraged buyout means. Page 16
Q6) Why do entrepreneurs typically use the exit strategy of handing down the business to a family member?
To view all questions and flashcards with answers, click on the resource link above.
Page 17