Family Business Management Review
Questions
Course Introduction
Family Business Management explores the unique dynamics, challenges, and opportunities present in family-owned enterprises. This course covers topics such as succession planning, governance structures, conflict resolution, generational differences, and the integration of family and business systems. Students will examine best practices for sustaining and growing a family business, balancing family values with business strategy, and managing relationships among family members and non-family stakeholders. Case studies, practical frameworks, and interactive discussions provide learners with the skills and insights necessary to lead or advise family businesses successfully.
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
Source URL: https://quizplus.com/quiz/46831
Sample Questions
Q1) The casual process of thinking starts with what one has and selects among possible outcomes.
A)True
B)False
Answer: False
Q2) Previous start-up experience is a good predictor of starting subsequent businesses.
A)True
B)False
Answer: True
Q3) An entrepreneur considering if what they are doing makes sense is an example of:
A) a strategic question
B) a connection task
C) a reflection task
D) a comprehension question
Answer: C
Q4) In a social network there are two major properties,density and centrality.
A)True
B)False
Answer: True
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Chapter 2: Corporate Entrepreneurship
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54 Verified Questions
54 Flashcards
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Sample Questions
Q1) 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
Q2) It is important for an entrepreneur to understand all aspects of the environment.Part of this ability is reflected in the individual's level of creativity,which generally increases with age and education in most individuals.
A)True
B)False
Answer: False
Q3) When establishing corporate entrepreneurship in an organization rewards should:
A) be tied to the department in which the idea originated
B) be tied to the parent company's stock performance
C) be tied to the performance of the entrepreneurial unit created from the idea
D) not be changed from whatever current system is being used so that risk is encouraged
Answer: C
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4
Chapter 3: Generating and Exploiting New Entries
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97 Verified Questions
97 Flashcards
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Sample Questions
Q1) Franchising is an example of a new entry strategy that increases the risk of downside loss for the franchisees.
A)True
B)False
Answer: False
Q2) A disadvantage of being a first mover is:
A) environmental instability.
B) cost disadvantages.
C) long lead time to gain knowledge.
D) a limited market.
Answer: A
Q3) The decision to exploit or not to exploit a new entry opportunity depends on whether the entrepreneur has sufficient information,and on whether the window of opportunity is still open.
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) Entrepreneurs are unable to carefully assess each and every innovative idea and opportunity.
A)True
B)False
Q2) Trends often provide one of the greatest opportunities for starting a new venture.
A)True
B)False
Q3) Forced relationships is a method of forcing confrontations in focus groups.
A)True
B)False
Q4) How many stages are in the product planning and development process
A) Two
B) Three
C) Four
D) Five
Q5) Brainwriting is a written form of brainstorming.
A)True
B)False
Q6) List,in order,the stages of the product planning and development process.
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) For a global entrepreneur,technological environment variations are minimal since firms produce mostly standardized,relatively uniform products that can be sorted to meet industry standards.
A)True
B)False
Q2) Which of the following statements is not true
A) Technology, like social factors, varies significantly across countries.
B) Major events often are the beginning of slow shifts in public opinion or buying habits.
C) Cultural ethics deals with the values and morals of a society and how they translate to societal acceptance.
D) Psychographics exist within demographics.
Q3) Concerns regarding roads,electricity,banking facilities,communication,and educational systems have to do with a country's:
A) infrastructure.
B) balance of payments.
C) political climate.
D) economics.
Q4) List the seven various aspects of culture.
Page 7
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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) Trade secrets are protected:
A) by the General Agreement on Tariffs and Trade.
B) by federal law.
C) by state law.
D) by the Library of Congress.
Q2) The section of the patent application that includes engineering specifications,materials and components is the:
A) background and advantage section.
B) description of invention.
C) claims section.
D) executive summary.
Q3) Getting a trademark typically takes 2 years.
A)True
B)False
Q4) The courts consider oral agreements under $500 binding if:
A) the agreement is for less than one year.
B) the parties have previously done business together.
C) the transaction is for services rendered.
D) the new venture is incorporated.
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) Which of the following documents is not usually included in the Financial Plan
A) Statement of cash flows
B) Income statement
C) Price lists from suppliers
D) Projected balance sheet
Q2) All of the following are reasons to enact a contingency plan,except:
A) changes in fashion.
B) changes in regulations.
C) a technology breach.
D) a tornado or hurricane.
Q3) A quick feasibility study should be conducted before preparing the business plan to uncover possible barriers to success.
A)True
B)False
Q4) Standard & Poor's and the U.S.government are good sources of industry and market data.
A)True
B)False
Page 9
Q5) List some of the advantages of using the Internet as a resource tool.
Q6) Identify the most common reasons why business plans fail.
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Page 10
Chapter 8: The Marketing Plan
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89 Verified Questions
89 Flashcards
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Sample Questions
Q1) The target market is not important in a social media strategy because the information is online for all to see.
A)True
B)False
Q2) Which of the following statements is not true
A) Primary focus of an industry analysis is to provide sufficient knowledge of the environment that can affect marketing strategy decision-making.
B) Industry analysis needs to be conducted using only primary research data.
C) Industry analysis begins with the broadest-based assessment of environmental and industry trends.
D) The information-seeking process of industry analysis is known as an upside-down pyramid.
Q3) Market conditions,product attributes,cost benefits,and venture attributes are all part of which major consideration in channel selection
A) Degree of directness
B) Number of channel members
C) Criteria in selection of channel members
D) Number of channels
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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) The board of directors:
A) lacks voting authority.
B) has responsibilities to represent all shareholders.
C) is less objective than the entrepreneur.
D) are always volunteers and need not be compensated.
Q2) In an S corporation:
A) gains or losses of the business are separate from the personal income of the shareholder.
B) shareholders retain unlimited liability.
C) only one class of stock is permitted.
D) most fringe benefits for shareholders can be deducted.
Q3) In a limited liability partnership (LLP)death or withdrawal of a partner:
A) results in automatic transfer of ownership to surviving partner(s).
B) may result in problems trying to find a market for the shares.
C) always results in termination of the partnership.
D) has no effect on the partnership.
Q4) The S corporation cannot have more than 75 shareholders.
A)True
B)False
Q5) What are the main characteristics of an LLC
Page 12
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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) Capital budgets project expenditures on:
A) new equipment.
B) future production costs.
C) advertising.
D) costs of goods sold.
Q2) The purpose of the pro forma sources and applications of funds statement is to show the amount owners have invested and/or retained from the venture operations.
A)True
B)False
Q3) Any significant capital expenditure or project requires a lengthy,and expensive,cost benefit analysis.
A)True
B)False
Q4) Cash flow is the same thing as profit.
A)True
B)False
Q5) By definition,break-even is where Total Revenue (TR)= Total Fixed Costs (TFC).
A)True
B)False
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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) In a straight commercial loan funds are typically used for what time period
A) Less than 30 days
B) 30-90 days
C) 180 days
D) Up to one year
Q2) Typically,debt financing requires:
A) an asset as collateral.
B) a degree of ownership in the firm.
C) reduction of short-term assets.
D) reduction of working capital.
Q3) Obtaining funds from private investors:
A) is inappropriate for new ventures.
B) is a public offering.
C) is covered by Regulation D.
D) involves a great deal of time and expense.
Q4) When using private placement funding the entrepreneur must disclose all information as accurately as possible.
A)True
B)False
Q5) Explain and define the four types of asset backed loans.
Page 14
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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) There is more risk involved in financing a business's early operations,therefore,higher rates of return are expected.
A)True
B)False
Q2) The present value of future cash flow method of valuation considers the firm's cash flow in relation to the time value of money.
A)True
B)False
Q3) The securities of certain smaller companies going public must also be qualified under international blue-sky laws.
A)True
B)False
Q4) The debt ratio is calculated by dividing total liabilities by total inventory.
A)True
B)False
Q5) List three reasons why an informal investor,or a business angel,may reject a proposal.
Page 15
Q6) 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) Forward integration is taking a step up on the value chain toward the raw materials.
A)True
B)False
Q2) Market development strategies involve selling the firm's existing products to a new group of customers,such as a new geographic market.
A)True
B)False
Q3) Effective time management can increase an entrepreneur's job satisfaction.
A)True
B)False
Q4) Entrepreneurs in the ________ quadrant of firm growth aspire to grow their businesses but do not possess the ability to do so.
A) constrained growth
B) unused potential for growth
C) actual growth
D) little potential
Q5) What benefits can an entrepreneur receive from better time management
Page 16
Q6) Explain the four types of entrepreneurs and firm growth.
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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) A joint venture is the purchase of an entire company,or part of a company.
A)True
B)False
Q2) The best way to "increase the size of the pie" in negotiation is to use a conflict resolution approach.
A)True
B)False
Q3) Quantitative methods of analyzing the fairness of an LBO's asking price include price-earnings ratios,present value of future earnings,and book value.
A)True
B)False
Q4) The concept that "the whole is greater than the sum of its parts" is known as:
A) the price earnings ratio.
B) synergy.
C) the bargaining zone.
D) integration.
Q5) When negotiating,the entrepreneur should make only one offer and stick to it.
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) When transferring a business to family members,list the critical factors that an effective succession plan needs to consider.
Q2) A business,when it comes to selling,will be less valuable if it is on a narrow,well-defined segment.
A)True
B)False
Q3) Which of the following is not an exit strategy
A) An IPO
B) A private sale of stock
C) Liquidation
D) Franchising
Q4) An employee stock option plan establishes a new legal entity.
A)True
B)False
Q5) It is best for the entrepreneur to have any litigation in existence transferred to the bankruptcy court.
A)True
B)False
Q6) What are some of the warning signs of bankruptcy
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