Entrepreneurship Test Bank
Course Introduction
Entrepreneurship is a course designed to introduce students to the principles and practices of starting and managing new ventures. The course covers the entrepreneurial process, from idea generation and opportunity recognition to business planning, financing, and growth strategies. Students will explore the characteristics and mindset of successful entrepreneurs, examine real-world case studies, and develop practical skills in innovation, risk assessment, and resource management. Through hands-on projects and collaborative activities, students will learn how to create and pitch business plans, navigate legal and ethical challenges, and apply critical thinking to solve problems faced by startups and small businesses.
Recommended Textbook
Understanding Business 12th Edition by William G Nickels
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24 Chapters
7272 Verified Questions
7272 Flashcards
Source URL: https://quizplus.com/study-set/2303 Page 2
Chapter 1: Taking Risks and Making Profits Within the Dynamic Business Environment
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315 Verified Questions
315 Flashcards
Source URL: https://quizplus.com/quiz/167428
Sample Questions
Q1) Casey is looking into opening a day care in her community. She is aware of many single-parent families that need a place for their children to stay while they work, but she is concerned about the long-term prospects for such a business. Casey thinks the future of her day care will depend on whether birth rates and the number of single-parent families keep growing. These concerns illustrate how businesses can be affected by ________ trends.
A) econometric
B) demographic
C) holographic
D) psychometric
Answer: B
Q2) Michael James owns a small manufacturing company that makes ventilation systems used in the construction of buildings. As the U.S. continues to be involved in wars around the globe, Michael may notice that his business will be growing more slowly in the future as more money continues to be put into the war effort.
A)True
B)False
Answer: True
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Chapter 2: Understanding Economics and How It Affects Business
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305 Verified Questions
305 Flashcards
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Sample Questions
Q1) The size of the national debt increases when the federal government runs a deficit. A)True
B)False
Answer: True
Q2) An incredibly rare stone known as Diamontite is used in many consumer products, including watch faces, smartphones, computer monitors, and tablets. In one year, the price of Diamontite has gone from $8/lb. to $107/lb. Under these circumstances and the fact that more companies are looking to use Diamontite in their products, a graph of the supply and demand for this product would show
A) the current price of Diamontite to be below the equilibrium price for this rare gem.
B) the price of Diamontite to be above the equilibrium price for this rare gem.
C) the price of Diamontite to reflect the adjustment of quantity demanded and quantity supplied.
D) consumer demand for any products using Diamontite to shift to the right indicating the desire to purchase the rare gem at any price.
Answer: B
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Chapter 3: Doing Business in Global Markets
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346 Verified Questions
346 Flashcards
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Sample Questions
Q1) Explain and provide at least one example of how sociocultural differences can create trade difficulties in world markets.
Answer: Examples will vary. Cultural differences clearly exist among nations. Americans have often been guilty of not recognizing these differences by being ethnocentric. In other words, we believe our culture is superior to all others. Religion is a part of culture and can have important impact on a firm's business operations. Work behaviors and attendance on the job can be specifically affected by religion. Cultural differences can also have an impact on such important business functions as human resource management. Workers' attitudes toward work and managers can be a reflection of culture. Marketing strategies also have to carefully take culture into consideration. Attitudes toward factors such as time, change, competition, natural resources, achievement, even work itself can be definitively influenced by a person's culture.
Q2) While Asia represents an important source of U.S. imports, few export opportunities exist for U.S. firms to sell goods and services to Asian consumers.
A)True
B)False
Answer: False
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Page 5
Chapter 4: Demanding Ethical and Socially Responsible Behavior
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257 Verified Questions
257 Flashcards
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Sample Questions
Q1) Customers learn to trust companies that consistently demonstrate good behavior. Those same companies can lose this position with one socially irresponsible activity.
A)True
B)False
Q2) We describe charitable donations by corporations to nonprofit organizations as ________.
A) corporate philanthropy
B) corporate responsibility
C) corporate strategy
D) structural commitment
Q3) Opponents of corporate social responsibility argue that when companies use their profits to promote social causes, they are not being fair to investors who provided the funds for the purpose of financial gain.
A)True
B)False
Q4) Legal behavior and ethical behavior are basically the same.
A)True
B)False
Page 6
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Chapter 5: How to Form a Business
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342 Verified Questions
342 Flashcards
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Sample Questions
Q1) Huang has agreed to become a partner in his cousin's waste management business. Since he provided 30 percent of the money to start the company and built an air-conditioned garage, he is entitled to 30 percent of any profits the company earns during its first year of operation.
A)True
B)False
Q2) Franchisors give franchisees the right to use their name and product, with the understanding that franchisees obtain all financing and develop all marketing strategies on their own.
A)True
B)False
Q3) Any debts or damages incurred by a firm organized as a sole proprietorship are
A) the responsibility of the owner.
B) limited to the amount the owner has invested in the firm.
C) paid for out of a reserve contingency fund that sole proprietors are required by law to set up.
D) normally covered by liability insurance.
Q4) To change ownership in a corporation you simply sell your stock to someone else.
A)True
B)False
Page 7
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Chapter 6: Entrepreneurship and Starting a Small Business
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303 Verified Questions
303 Flashcards
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Sample Questions
Q1) Large organizations encourage intrapreneurship as a strategy to improve their profitability through new products.
A)True
B)False
Q2) Due in part to government support, the majority of U.S. small businesses are involved in exporting.
A)True
B)False
Q3) Small Business Administration microloans are based on the borrowers' integrity rather than collateral and credit history.
A)True
B)False
Q4) Small businesses lack the resources to compete directly with big businesses. A)True
B)False
Q5) The easiest businesses to start are those that offer the greatest profit potential. A)True B)False
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Chapter 7: Management and Leadership
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281 Verified Questions
281 Flashcards
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Sample Questions
Q1) Managers in progressive firms of all kinds tend to be friendly, and treat employees as partners.
A)True
B)False
Q2) Lauzy seems to prefer a(n) ________ style of leadership.
A) autocratic
B) participative
C) PMI
D) altruistic
Q3) The question of how to implement change within an organization is the responsibility of the firm's CEO.
A)True
B)False
Q4) ________ are specific, short-term, measurable results an organization wants to achieve in order to fulfill its long-term goals.
A) Directives
B) Opportunity targets
C) Objectives
D) Mission complements
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Chapter 8: Structuring Organizations for Todays
Challenges
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364 Verified Questions
364 Flashcards
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Sample Questions
Q1) Businesses seldom create separate departments to serve customers with different needs.
A)True
B)False
Q2) Max Weber's organizational theories require an educated workforce to operate efficiently.
A)True
B)False
Q3) A matrix team for an aerospace company may consist of a project manager, a finance expert, a marketing specialist, a member of production, and two design engineers.
A)True
B)False
Q4) The traditional way to departmentalize an organization is by geographical area served.
A)True
B)False
Q5) What is a matrix organization? What advantages and disadvantages are associated with this type of organization?
Q6) Discuss Max Weber's views on organization theory. Page 10
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Chapter 9: Production and Operations Management
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321 Verified Questions
321 Flashcards
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Sample Questions
Q1) The first step in the development of a PERT chart is
A) assigning an estimated cost to each task.
B) analyzing the tasks and determining the sequence in which they must be performed.
C) estimating the time needed to complete each task.
D) identifying the probabilities that each step in the project can be successfully completed without exceeding the estimated cost.
Q2) Mass customization is a strategy of convincing customers to choose from a relatively small number of alternatives in order to achieve the efficiencies of mass production.
A)True
B)False
Q3) KTG Computers is looking to set up a planning system that will integrate its production and operations system with those of its suppliers. As its operations management consultant, you explain that it needs a material requirement planning (MRP) system.
A)True
B)False
Q4) What are the ISO 9001 and ISO 14001 standards? Why are they important?
Q5) How are MRP and ERP similar? How do they differ?
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Chapter 10: Motivating Employees
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357 Flashcards
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Sample Questions
Q1) Which of the following problems would indicate that a manager failed to apply the basic concepts of expectancy theory?
A) Employees are frustrated because they have no say in their organization's goals and objectives.
B) Some of the organization's employees reduce their effort because they feel that they are being treated unfairly compared to other employees.
C) Employees are unwilling to work toward achieving an important goal because they believe the reward offered is not sufficient to justify the effort.
D) Employees are confused and frustrated because managers do not provide them with adequate feedback about their job performance.
Q2) According to expectancy theory, the amount of effort employees exert on a specific task depends on their
A) expectations of the outcome.
B) manager's expectations of their performance.
C) perception of the importance of the task.
D) level of needs that are not yet satisfied.
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Chapter 11: Human Resource Management: Finding and
Keeping the Best Employees
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423 Verified Questions
423 Flashcards
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Sample Questions
Q1) Title VII of the Civil Rights Act of 1964 prohibits discrimination in hiring, firing, or compensation, based on race, religion, creed, sex, or national origin.
A)True
B)False
Q2) According to U.S. business law, accommodation means
A) treating all employees fairly.
B) making certain that if one employee gets medical leave during a fiscal year, that all other employees get an equal amount of leave during the year.
C) careful consideration before firing someone and hiring two younger persons to replace him/her.
D) providing services for employees according to their specific needs.
Q3) Antonia is interested in transferring to a new position recently opened in her company. But first, she wants to find out more about the type of work and responsibilities involved in the job. A document that would have the information she wants is the job specification.
A)True
B)False
Q4) Identify and describe three common methods of training and developing employees.
Page 14
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Chapter 12: Dealing With Employeemanagement Issues
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297 Flashcards
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Sample Questions
Q1) The Knights of Labor and the American Federation of Labor were actually very similar in their aims, tactics, and membership. The only major difference was in the effectiveness of their leaders.
A)True
B)False
Q2) The NLRB oversees the decertification of unions. Company owners can petition and seek the signatures of 30% of the employees in order to decertify the union; in other words, officially, the union could no longer represent the employees in any bargaining negotiations.
A)True
B)False
Q3) After gaining union representation, any workers with complaints regarding promotions, layoffs, and job assignments will file a(n) ________ with their shop steward.
A) grievance
B) arbitration request
C) injunction
D) yellow-dog contract
Q4) Identify and discuss three controversial employee-management issues.
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Chapter 13: Marketing: Helping Buyers Buy
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250 Verified Questions
250 Flashcards
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Sample Questions
Q1) Which of the following is the best example of cognitive dissonance?
A) Phillip has been shopping for a new flat screen, but has not yet made a purchase because he is having trouble deciding which brand to buy.
B) Lorelai decided to eat at a restaurant she previously avoided after learning several celebrities endorse the restaurant.
C) Braylon is torn between going to the movies with friends or staying home and studying for an exam tomorrow.
D) Drake just bought an expensive tablet and is already worried that he could have found a better deal if he had shopped more carefully.
Q2) Sarah found success as an entrepreneur by employing a relationship marketing strategy. The goal of this strategy is to
A) use radio and television advertising to attract new customers.
B) work closely with existing customers to better satisfy their wants and needs.
C) target large market segments of potential customers by working closely with a variety of suppliers.
D) communicate to buyers the advantages offered by your firm's low prices and standardized products.
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Page 16
Chapter 14: Developing and Pricing Goods and Services
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356 Verified Questions
356 Flashcards
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Sample Questions
Q1) Price leadership occurs when one or more dominant firms set pricing practices that other firms in the market follow.
A)True
B)False
Q2) Newspapers are sold daily in a wide variety of locations. This widespread distribution suggests that newspapers are classified as convenience goods.
A)True
B)False
Q3) Miller Light Beer, Maxwell House Coffee, Jell-O brand gelatin, Kraft mayonnaise, and Marlboro Cigarettes were all at one time products of the Philip Morris Company. These products represented a part of the product line Philip Morris offered.
A)True
B)False
Q4) Demand-based pricing is another name for cost-based pricing.
A)True
B)False
Q5) Discuss the role of packaging in a firm's total product offer.
Q6) What is a brand? What is a brand name? What is meant by brand equity?
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Chapter 15: Distributing Products
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314 Verified Questions
314 Flashcards
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Sample Questions
Q1) Marketing intermediaries must charge a price for the functions they perform. Thus, a surefire way to reduce distribution costs is to eliminate marketing intermediaries from the channel of distribution.
A)True
B)False
Q2) A key distinction between agents and brokers is that agents tend to maintain long-term relationships with the people they represent whereas brokers are hired on a temporary basis.
A)True
B)False
Q3) In order to succeed in today's market, all retailers must compete with low prices.
A)True
B)False
Q4) Unlike merchant wholesalers, ________ never actually own the goods they help to distribute.
A) rack jobbers
B) retailers
C) cash-and-carry wholesalers
D) agents and brokers
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Chapter 16: Using Effective Promotions
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262 Verified Questions
262 Flashcards
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Sample Questions
Q1) Creating a unified positive image of a company in the public's mind is the end result of effective integrated marketing communication.
A)True
B)False
Q2) Which of the following statements is most accurate?
A) Sales promotions are targeted both internally and externally.
B) Sales promotion efforts are directed at nonprofit organizations.
C) Dealers are inappropriate targets of sales promotion activities.
D) The goal of sales promotion activities is to create consumer awareness.
Q3) The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities, such as trade shows, event sponsorships, and contests, is known as
A) publicity.
B) public relations.
C) every day low prices.
D) sales promotion.
Q4) After-sale follow-up is an important but often neglected step in B2C sales.
A)True
B)False
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Chapter 17: Understanding Accounting and Financial Information
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362 Verified Questions
362 Flashcards
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Sample Questions
Q1) The company controller asked Jade to determine if it could borrow more money for an expansion project. When she calculated a leverage ratio, she determined that the company already had 1.5 times as much debt as equity. Do you agree with her assessment that the company should back off with borrowing more funds at this time?
A) Yes, but if the company would increase sales, it could go ahead with borrowing more funds.
B) Not necessarily. She should investigate the debt to equity ratios of other firms in the same industry.
C) Yes, but the firm should pursue equity investment until the ratio equals 1:1.
D) Not necessarily. In poor economic times, it is good financial strategy for a firm to be highly leveraged.
Q2) Expenses a firm incurs for insurance, office salaries, and rent are classified as
A) selling expenses on an income statement.
B) general expenses on an income statement.
C) current liabilities on a balance sheet.
D) general expenses on a cash flow statement.
Q3) What is ratio analysis? Explain the four different types of ratios and how each is used.
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Page 20
Chapter 18: Financial Management
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Sample Questions
Q1) If a buyer is offered the terms of sale of "3/10, net 30" this means that the buyer can receive a 10 percent discount by making full payment within 30 days of the billing date.
A)True
B)False
Q2) Corporations that issue debenture bonds are required to provide collateral. A)True
B)False
Q3) Offering cash discounts to customers who pay their bills by a certain date represents an effective technique to manage accounts receivable.
A)True
B)False
Q4) A capital budget highlights a firm's spending plans for major assets, such as property, buildings, and equipment.
A)True
B)False
Q5) Financial managers are responsible for controlling cash flows. A)True B)False
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Chapter 19: Using Securities Markets for Financing and Investing Opportunities
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397 Verified Questions
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Sample Questions
Q1) Therese prefers corporate bonds as an investment option because investors always receive the face value of the bond whenever it is sold.
A)True
B)False
Q2) Preferred stockholders receive dividend payments before common stockholders are paid any dividends.
A)True
B)False
Q3) Issuing bonds is considered debt financing.
A)True
B)False
Q4) As interest rates increase, bond prices fall.
A)True
B)False
Q5) The initial cost of investing in mutual funds depends in part on
A) whether the fund is a load or no-load fund.
B) the risk tolerance of the companies in the fund.
C) the tax rate on capital gains.
D) the imposition of government tariffs.
Q6) Explain the differences between preferred stock and common stock. Page 22
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Page 23
Chapter 20: Money, Financial Institutions, and the Federal Reserve
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306 Verified Questions
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Sample Questions
Q1) Commercial banks primarily serve two types of customers-
A) depositors and borrowers.
B) commercial clients and residential clients.
C) secured creditors and unsecured creditors.
D) short-term borrowers and long-term borrowers.
Q2) The global money markets trade about $5 trillion every day.
A)True
B)False
Q3) The M-1 money supply includes money in savings accounts, mutual funds, and money market accounts.
A)True
B)False
Q4) As a relatively poor nation, Forlornia wants to obtain funds for a project to improve the availability of water and electricity. Forlornia should contact the International Monetary Fund.
A)True
B)False
Q5) Bank crises tend to correlate with economic recessions.
A)True
B)False
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Chapter 21: Appendix: Working Within the Legal Environment
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Sample Questions
Q1) Which of the following protects the original work of authors and artists (i.e., their books, photos, or cartoons)?
A) a trademark
B) a copyright
C) the Uniform Commercial Code
D) a patent
Q2) A software development firm based in California and conducting business in Wyoming is unsure about the differences in state laws regarding business transactions. What body of laws standardizes interstate business regulations?
A) Uniform Commercial Code
B) Universal Business Regulations
C) National Commercial Rules
D) Unified Commercial Regulations
Q3) The offer of a 3-year or 36,000-mile warranty by a car dealer on a new vehicle is an example of an implied warranty.
A)True
B)False
Q4) What is the Uniform Commercial Code and why is it important?
Q5) Explain the difference between statutory law, common law, and business law.
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Chapter 22: Appendix: Using Technology to Manage Information
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Sample Questions
Q1) If a business wanted to gather up-to-the-minute data on its customers, one way to do that would be
A) database management.
B) data mining.
C) social media.
D) physical-world observations.
Q2) The advantages of cloud computing are security, possible instability, and data control.
A)True
B)False
Q3) A(n) ________ is a private data network that creates secure connections over regular Internet lines.
A) extranet
B) secured common linkage network
C) virtual private network
D) monitored network system
Q4) The main purpose of an intranet is to allow a company to keep in close contact with its customers.
A)True
B)False
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Chapter 23: Appendix: Managing Risk
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Sample Questions
Q1) An insurance premium is the fee charged by the insurance company in return for their promise to pay for all or part of a loss.
A)True
B)False
Q2) A firm that chooses to self-insure and cover losses out of its budget is said to
A) fly blind.
B) roll boxcars.
C) go bare.
D) internalize risk.
Q3) Antonio is a silversmith and works with various metals. At the end of the day, he reclaims and separates each metal by using an inexpensive toxic acid though other methods are available. The risk of fire as well as health dangers to Antonio is unknown. What should Antonio do?
A) Dispose of the used acid by pouring it down the drain since the government will take care of any environmental issues that come from polluting the water.
B) Get a fire insurance policy and make sure to visit the doctor regularly.
C) Switch to another potentially less dangerous method of separating each metal.
D) Pour it out in back of the studio in the gutter.
Q4) Explain what makes the acceptance of risk possible for insurance companies.
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Chapter 24: Appendix: Managing Personal Finances
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Sample Questions
Q1) Most people find it relatively easy to live frugally.
A)True
B)False
Q2) The best strategy to follow in using credit cards is to pay only the minimum amount required each month.
A)True
B)False
Q3) Ryan is in need of advice regarding investments, taxes, and insurance for himself and his family. He would be well advised to seek the advice of an insurance salesperson.
A)True
B)False
Q4) Guaranteed replacement cost insurance coverage provides the insured with the depreciated cost of assets.
A)True
B)False
Q5) People who have health insurance seldom need disability insurance.
A)True
B)False
Q6) Describe the major steps involved in estate planning.
Page 28
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