Family Business Management
Exam Materials
Course Introduction
Family Business Management explores the unique dynamics, challenges, and opportunities inherent in family-owned and operated enterprises. This course covers essential concepts such as governance structures, succession planning, conflict resolution, and strategic decision-making within the family business context. Students will examine real-world case studies to understand issues related to maintaining family harmony, professionalizing management, and balancing business growth with family values. By the end of the course, participants will gain the skills and frameworks necessary to contribute effectively to sustainable family business leadership and legacy development.
Recommended Textbook
Entrepreneurship Theory Process and Practice 10th Editionby Donald F. Kuratko
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15 Chapters
444 Verified Questions
444 Flashcards
Source URL: https://quizplus.com/study-set/1416
Page 2
Chapter 1: Entrepreneurship: Evolutionary
Development-Revolutionary Impact
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28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/28106
Sample Questions
Q1) Entrepreneurs are aggressive catalysts for change within the marketplace.
A)True
B)False
Answer: True
Q2) The macro view can be broken down into which three areas?
A)environmental, financial, and displacement
B)financial/capital, strategic, and opportunity
C)displacement, trait, and financial
D)entrepreneurial trait, opportunity, and strategic
Answer: A
Q3) Michael Gerber,the author of The E-Myth,explains that the failure of most small businesses is due to:
A)owners being more technical rather than entrepreneurial
B)owners being more managerial rather than technical
C)owners being more entrepreneurial rather than managerial
D)owners being more entrepreneurial rather than technical
Answer: A
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Page 3
Chapter 2: The Entrepreneurial Mind-Set in Individuals:
Cognition and Ethics
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28107
Sample Questions
Q1) A decision to sell toys that pass minimum safety standards but can often result in minor accidents to children is an example of a(n)
A)illegal and ethical decision.
B)legal and unethical decision.
C)illegal and unethical decision.
D)legal and ethical decision.
Answer: B
Q2) A __________ is a statement of ethical practices or guidelines to which an enterprise adheres.
A)code of conduct
B)code of ethics
C)code of honor
D)code of silence
Answer: B
Q3) There is a certain psychic risk involved with entrepreneurship.
A)True
B)False
Answer: True
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Chapter 3: The Entrepreneurial Mind-Set in Organizations: Corporate Entrepreneurship
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28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/28108
Sample Questions
Q1) Secretly working on new ideas on company time as well as on personal time is referred to as
A)skunk works.
B)champion.
C)bootlegging.
D)interactive learning.
Answer: C
Q2) The second step in planning a strategy of entrepreneurship for the enterprise is
A)identifying specific objectives.
B)sharing the vision of innovation.
C)applying the exact tools of the entrepreneur.
D)developing and encouraging innovation.
Answer: D
Q3) Individuals may avoid corporate entrepreneurial behavior due to the impact of traditional management techniques.
A)True
B)False
Answer: True
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Chapter 4: Social Entrepreneurship and the Global
Environment for Entrepreneurship
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28109
Sample Questions
Q1) Successful global start-ups,or entrepreneurial businesses that are "born global," surprisingly often lack internationally experienced management.
A)True
B)False
Q2) Purpose,accountability,and transparency are characteristics associated with socially sustainable enterprises.
A)True
B)False
Q3) Bottom-line measures of economic performance include all of the following except:
A)global competition
B)personal income
C)cost of underemployment
D)job growth
Q4) Social responsibility consists of those obligations that society has to businesses.
A)True
B)False
Q5) Why is global thinking important to today's entrepreneurs?
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Chapter 5: Innovation: the Creative Pursuit of Ideas
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28110
Sample Questions
Q1) Which of the following mental habits inhibit creativity and innovation?
A)either/or thinking, stereotyping
B)functional perspective, mind-sets
C)security hunting, risks
D)stereotyping, incubation
Q2) Which of the following are sources of innovation?
A)unexpected occurrences and incongruities
B)duplication and processes
C)synthesis and technology
D)industry changes and extension
Q3) Creative talents can be improved through practice and awareness of habits that can cause problems. However,there are ways to increase creativity; one area is to recognize relationships. Explain what is meant by this.
Q4) Creativity,in the entrepreneurial context,is the generation of ideas that result in the improved efficiency or effectiveness of a system.
A)True
B)False
Q5) Identity and describe two arenas of creativity.
Q6) Describe the innovation process.
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Chapter 6: Assessment of Entrepreneurial Opportunities
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) Surprisingly,growth of sales is generally not considered a critical factor in assessing new ventures.
A)True
B)False
Q2) Rapid technological advances in many industries cause a concern for in new venture development.
A)faulty product performance
B)rapid product obsolescence
C)inadequate awareness of competitive pressures
D)undercapitalization
Q3) What are the five specific feasibility phases that a new venture will go through?
Q4) Which of the following is a major reason for the failure of a new venture?
A)inadequate market knowledge
B)good product performance
C)opening in the wrong location
D)good product/poor marketing
Q5) What sorts of legal issues can be overlooked when assessing an entrepreneurial opportunity?
Q6) List and describe three pitfalls in selecting a new venture.
Page 8
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Chapter 7: Pathways to Entrepreneurial Ventures
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28 Verified Questions
28 Flashcards
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Sample Questions
Q1) Why did the Federal Trade Commission enact the Franchise Rule?
Q2) The prospective investor should get as much information as possible on the franchisor.
A)True
B)False
Q3) The terms upside gain and downside loss refer to the profits the business can make and the losses it can suffer.
A)True
B)False
Q4) Perhaps the greatest advantage of buying a franchise,as compared to starting a new business or buying an existing one,is that the franchisor will usually provide both training and guidance to the franchisee.
A)True
B)False
Q5) The elimination of time and effort associated with starting a company is an advantage of acquiring an ongoing venture.
A)True B)False
Q6) Briefly explain the new-old approach to creating new ventures.
Page 9
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Chapter 8: Sources of Capital for Entrepreneurs
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) Venture capitalists,surprisingly,require little information before they make an investment.
A)True
B)False
Q2) The most common source of debt financing is
A)trade credit.
B)factoring.
C)commercial banks.
D)finance companies.
Q3) The main objective of Regulation D is to
A)increase investment in private placement.
B)regulate new small-business investment.
C)make it easier and less expensive for small ventures to sell stock.
D)reduce debt financing by small enterprises.
Q4) Private placement is a method of raising capital through the private placement of securities.
A)True
B)False
Q5) Are formal firms the only source of venture capital?
Q6) What are the major types and uses of debt financing?
Page 10
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Chapter 9: Legal Challenges of Entrepreneurial Ventures
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) From where does an S corporation take its name? corporation takes its name from
A)Subchapter S of the Internal Revenue Code
B)state law
C)S Lab
D)Uniform Commercial Code
Q2) Chapter 7,Chapter 9,and Chapter 11 are the most common forms of bankruptcy.
A)True
B)False
Q3) The registration of a trademark last for 40 years,with continuous renewal every 10 years.
A)True
B)False
Q4) A copyright provides exclusive rights to creative individuals for the protection of their artistic productions.
A)True
B)False
Q5) Identify the three major sections of the Bankruptcy Act.
Q6) Define a patent and describe its limitations.
Q7) What does a copyright protect?
Q8) What are the uses of trademarks and how can they be invalidated?
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Chapter 10: Marketing Challenges for Entrepreneurial Ventures
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28115
Sample Questions
Q1) What is meant by pricing for the life cycle?
A)that pricing needs to be adjusted at each stage in a product's life cycle
B)that pricing needs to be increased at each stage in a product's life cycle
C)that pricing of new products needs to start out low and end high
D)that pricing of new products needs to start out high and end low
Q2) Only major strategic decisions need to be supported through marketing research.
A)True
B)False
Q3) In the marketing shift from the 4Ps to the 4Cs,price shifts to choice and promotion shifts to communities.
A)True
B)False
Q4) It is usually more expensive to gather secondary data than primary data.
A)True
B)False
Q5) What is skimming?
A)setting price to maximize profit
B)setting price to maximize market share
Page 12
C)setting price to switch customers to new product lines
D)setting price to match the competition
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Chapter 11: Financial Preparation for Entrepreneurial Ventures
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) List the elements of a capital budget and define its main objective.
Q2) Pro forma statements show the firm's present financial position.
A)True
B)False
Q3) Break-even analysis is used to tell how many units must be sold in order to break even at a particular selling price.
A)True
B)False
Q4) Which of the following are forms of pro forma statements?
A)income statements
B)balance sheets
C)costs of goods sold
D)a and b
Q5) The concept of the net present value method works on the premise that
A)a dollar today is worth less than a dollar in the future.
B)a dollar today is worth the same in the future.
C)a dollar today is worth more than a dollar in the future.
D)a dollar today cannot be measured in future dollars.
Q6) Explain what a cash flow budget tells a manager/owner.
Q7) What is included in an operating budget and how is this helpful? Page 13
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Page 14
Chapter 12: Developing an Effective Business Plan
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28117
Sample Questions
Q1) Which of the following is a critical factor to be considered in the management segment?
A)suppliers
B)location of the plant
C)organizational structure
D)product design
Q2) An important guideline in putting the plan together is
A)to overdiversify.
B)to not highlight critical risks.
C)to identify the target market.
D)to impress with excessive detail
Q3) What is the significance of a harvest strategy segment in a business plan?
A)It is important for the entrepreneur to plan for a liquidity event as an exit strategy.
B)It is important for the entrepreneur to know how to buy up troubled companies.
C)It is important for the entrepreneur to indicate how the business will increase in value.
D)It is important for the entrepreneur to designate how the business will recruit new talent to the enterprise.
Q4) How does a business plan benefit the entrepreneur?
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Chapter 13: Strategic Entrepreneurial Growth
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28118
Sample Questions
Q1) Research has shown that there is a distinct lack of strategic planning in new ventures. Relate some of the reasons for this lack of planning.
Q2) Formation of long-range plans for effective management in light of a venture's strengths and weaknesses is referred to as
A)dimensional planning.
B)tactical planning.
C)strategic planning.
D)operational planning.
Q3) The entrepreneurial strategy matrix measures risk and innovation.
A)True
B)False
Q4) In administrative cultures,there is a need for clearly defined authority and responsibility.
A)True
B)False
Q5) A "SWOT" analysis refers to analyzing strengths,weaknesses,opportunities,and threats.
A)True
B)False
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Chapter 14: Valuation of Entrepreneurial Ventures
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28119
Sample Questions
Q1) The price/earnings ratio (multiple of earnings) method is determined by dividing the market price of common stock by retained earnings.
A)True
B)False
Q2) Traditional valuation methods includes all of the following except:
A)adjusted tangible book value
B)price/earnings ratio
C)high equity/low debt
D)discounted earnings
Q3) Sales and earnings of a venture are projected from
A)historical projections
B)historical financials
C)data on start-ups
D)property values
Q4) Business valuation is essential when attempting to buy out a partner.
A)True
B)False
Q5) Knowing a venture's pre-money valuation is not possible.
A)True
B)False
17
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Chapter 15: Harvesting the Entrepreneurial Venture
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) The Oakland Scavenger case is profound to owners of family businesses in that
A)conceivably, the owner can be sued for not giving equal treatment to a son as to a daughter.
B)conceivably, the owner can be sued by an employee of a different ethnic origin based upon not being accorded the same treatment as a son or daughter.
C)conceivably, the owner can be sued for not declaring a family member his or her successor.
D)the owner can be fined for not declaring his or her first son the heir to the business.
Q2) Which is an influencing factor in succession?
A)family and business cultural issues
B)government regulation
C)current economic conditions
D)the competition
Q3) A harvest plan
A)is similar to a will.
B)defines when and how business owners will realize a cash return on investment.
C)leaves the business to the next generation.
D)is simple to implement.
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