Introduction to Entrepreneurship
Exam Materials
Course Introduction
Introduction to Entrepreneurship provides students with foundational knowledge and practical skills for identifying, evaluating, and pursuing entrepreneurial opportunities. The course covers the characteristics of successful entrepreneurs, the process of developing innovative ideas, market research and validation, business model creation, and resource acquisition, including financing options. Students will engage in case studies, discussions, and hands-on activities to develop their entrepreneurial mindset, understand the challenges and rewards of starting a new venture, and gain tools to turn an idea into a viable business.
Recommended Textbook
Essentials of Entrepreneurship and Small Business Management 9th Edition by Norman
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17 Chapters
1957 Verified Questions
1957 Flashcards
Source URL: https://quizplus.com/study-set/2272
Page 2
M. Scarborough
Chapter 1: The Foundations of Entrepreneurship
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117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/45125
Sample Questions
Q1) Which of the following is/are true regarding business plans?
A)Provide a pathway to success.
B)Allow entrepreneurs to replace faulty assumptions with facts before making the decision to go into business.
C)Create a benchmark against which entrepreneurs can measure actual company performance.
D)All of the above
Answer: D
Q2) Increased entrepreneurial activity is a phenomenon unique to the U.S.
A)True
B)False
Answer: False
Q3) Which of the following is not a characteristic of a successful working relationship between copreneurs?
A)A clear definition of one partner as "boss" and the other as "subordinate."
B)Compatible business and life goals.
C)Complementary business skills.
D)A clear division of roles and authority based on each partner's skills and abilities.
Answer: A
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Page 3
Chapter 2: Ethics and Social Responsibility: Doing the Right Thing
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109 Verified Questions
109 Flashcards
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Sample Questions
Q1) In general, stakeholders have consistent demands.
A)True
B)False
Answer: False
Q2) In ________, a superior conditions the granting of a benefit such as a promotion or raise on the receipt of sexual favors from a subordinate.
A)pro tem
B)pro bono
C)quid pro quo
D)carpe diem
Answer: C
Q3) ________ sets behavioral boundaries for decision makers.
A)The strategic plan
B)Strategy
C)Ethics
D)The financial plan
Answer: C
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Page 4
Chapter 3: Creativity and Innovation: Keys to Entrepreneurial Success
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118 Verified Questions
118 Flashcards
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Sample Questions
Q1) "Convergent thinking" is the ability to see the differences among data and events.
A)True
B)False
Answer: False
Q2) The "theory of inventive problem solving" is a left-brained, scientific, systematic process based on innovative patents and is referred to as ________.
A)JIT
B)RP
C)TQM
D)TRIZ
Answer: D
Q3) Entrepreneurship is a constant process that relies on ________.
A)creativity, innovation, and profit
B)the ability to win over the consumer
C)creativity, innovation, and application in the marketplace
D)intellectual property rights
Answer: C
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Page 5
Chapter 4: Conducting a Feasibility Analysis and Designing a Business Model
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) Generally, an industry is more attractive when competitors are not similar in size or capability.
A)True
B)False
Q2) The Business Model Canvas has ________ elements.
A)3
B)5
C)9
D)6
Q3) Products or services that may be sought as alternative solutions (e.g., purchasing tax planning software rather than paying a CPA to assist with preparing your taxes)are referred to as ________.
A)buyers products
B)rivalry products
C)substitute products
D)competitive alternatives
Q4) The growth in the number of women entering the workforce is an example of a sociocultural change.
A)True
B)False
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Chapter 5: Crafting a Business Plan and Building a Solid Strategic Plan
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129 Verified Questions
129 Flashcards
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Sample Questions
Q1) ________ are the broad, long-range attributes the small business seeks to accomplish; ________ are the more specific targets for performance.
A)Goals; objectives
B)Goals; strategies
C)Objectives; goals
D)Strategies; goals
Q2) Assume you own a small camera shop that sells and repairs cameras and equipment. Discuss some of the methods you might select to allow you to successfully compete against the many large retailers that are nearby.
Q3) Why is covering the company's business model one of the basic areas in a business plan presentation?
Q4) Explain at least two functions or purposes of preparing a business plan.
Q5) Which key success factor does the entrepreneur who built this table believe is most important?
A)Quality
B)Service and on-time delivery
C)Convenience
D)Location
Q6) What is "collateral" and why is it one of the "Cs" of credit?
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Chapter 6: Forms of Business Ownership
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83 Verified Questions
83 Flashcards
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Sample Questions
Q1) Some forms of ownership are much more costly and involved to create.
A)True
B)False
Q2) A ________ partner is a person who makes financial investments in a partnership, does not take an active role in managing the business, and whose liability for the partnerships' debts is limited to the amount they have invested.
A)limited
B)master
C)dormant
D)silent
Q3) If a limited partner withdraws, sells his ownership in the partnership, or dies, the partnership is not forced into dissolution.
A)True
B)False
Q4) Which of the following is required to form a partnership?
A)A general partner
B)A limited partner
C)A secret partner
D)A silent partner
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Chapter 7: Buying an Existing Business
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80 Verified Questions
80 Flashcards
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Sample Questions
Q1) ________ is the difference between an established, successful business and one that has yet to prove itself.
A)Net worth
B)Equity
C)Multiple
D)Goodwill
Q2) Transition is the final step in acquiring a business.
A)True
B)False
Q3) With an existing business, the new owner can depend on employees to help him make money while he is learning the business.
A)True
B)False
Q4) Value is determined in the market, not on a balance sheet.
A)True
B)False
Q5) An entrepreneur should never purchase a business that is losing money.
A)True
B)False
Q6) What is the market approach to business valuation?
Page 9
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Chapter 8: Franchising and the Entrepreneur
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69 Verified Questions
69 Flashcards
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Sample Questions
Q1) Which of the following is not a potential advantage of franchising for the franchisee?
A)Management training and assistance
B)National advertising program
C)Centralized buying power
D)Limited product line
Q2) A recent study reports that the success rate of franchisees increases when a franchise system ________.
A)requires franchisees to have prior industry experience
B)requires franchisees to actively manage their operations
C)has built a strong brand name with training programs to improve knowledge and skills
D)All of the above increase the rate of success.
Q3) Most franchisees are better educated, more sophisticated, have more business acumen, and are more financially secure than those of just 20 years ago.
A)True
B)False
Q4) Help Ralph make a decision by outlining the advantages and the disadvantages of a franchise arrangement.
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10
Chapter 9: Building a Powerful Bootstrap Marketing Plan
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117 Verified Questions
117 Flashcards
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Sample Questions
Q1) ________ pay the bills: without them, you have no business.
A)Accountants
B)Employers
C)Employees
D)Customers
Q2) Which of the following is a way to improve customer service?
A)Encourage customers to complain.
B)Ask employees for feedback on improving customer service.
C)Develop a service theme that communicates the importance of customer service in the company.
D)All of the above
Q3) Why is it important for small business owners to track demographic trends? How can small companies become effective trend trackers?
Q4) A common mistake entrepreneurs make is ________.
A)assuming that a market exists for their product or service
B)taking too much time to conduct planning and research
C)conducting informal research
D)conducting online research, which is too impersonal and does not yield accurate information
Q5) How can Marvin develop "stellar" customer service?
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Chapter 10: E-Commerce and the Entrepreneur
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142 Verified Questions
142 Flashcards
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Sample Questions
Q1) Identify and briefly explain five of the design characteristics that contribute to a successful Web site.
Q2) A company that pays a search engine for the right to submit either selected pages or the entire content of the Web site is referred to as ________.
A)click fraud
B)web analytics
C)paid or sponsored listings
D)Really Simple Syndication (RSS)
Q3) Approximately ________ percent of Web users speak English.
A)38
B)26
C)37
D)29
Q4) Social media is sales media.
A)True
B)False
Q5) Making money on the Web is easy.
A)True
B)False
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Chapter 11: Pricing and Credit Strategies
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114 Verified Questions
114 Flashcards
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Sample Questions
Q1) An MP3 player is sold at a price close to the break-even point, but the accessories for the product are priced at a premium, offering impressive contribution margins. This is an example of ________.
A)byproduct pricing
B)bundling
C)captive-product pricing
D)multiple-unit pricing
Q2) Dynamic pricing may raise ethical questions.
A)True
B)False
Q3) The manufacturer's suggested price takes into account the small firm's cost structure and its competitive situation.
A)True
B)False
Q4) The most common pricing mistake small business owners make is setting the price for the products and services they sell too high.
A)True
B)False
Q5) If Miller desires a profit of $120,000, what price should she set?
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Chapter 12: Creating a Successful Financial Plan
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140 Verified Questions
140 Flashcards
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Sample Questions
Q1) On a projected income statement, a business owner's target income is the sum of a reasonable salary for the time spent running the business and a normal return on the amount the owner has invested in it.
A)True
B)False
Q2) A business should provide the owner with a reasonable rate of return based upon ________.
A)the time and money invested in the business
B)industry averages
C)the capital borrowed from the bank
D)an acceptable annual salary
Q3) The net profit to asset ratio measures ________.
A)the owner's rate of return on investment
B)how much profit a company generates for each dollar of assets that it owns
C)a company's profit per dollar of sales
D)a company's ability to generate sales in relation to its asset base
Q4) A high current ratio guarantees that the small firm's assets are being used in the most profitable manner.
A)True
B)False
Page 14
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Chapter 13: Managing Cash Flow
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144 Verified Questions
144 Flashcards
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Sample Questions
Q1) An entrepreneur can potentially improve collections by ________.
A)contacting the customer once the bill becomes past due to verify they have received the bill and that it is accurate
B)negotiate payment if the customer is unable to pay the full amount on time
C)developing a rapport with the customer that will lead to prompt payment
D)All the above
Q2) It is likely that young companies and rapidly growing companies will experience cash flow difficulties.
A)True
B)False
Q3) Difficulty in collecting accounts receivable is the primary cause of cash flow problems, according to small business owners.
A)True
B)False
Q4) Small business owners should not press customers for payment of their past due accounts for fear of losing them as customers altogether.
A)True
B)False
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Chapter 14: Choosing the Right Location and Layout
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114 Verified Questions
114 Flashcards
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Sample Questions
Q1) The index of retail saturation for site #2 is $________.
A)164.27
B)140.83
C)170.64
D)146.30
Q2) Retail compatibility describes the benefits a company receives by locating near other businesses selling complementary products and services.
A)True
B)False
Q3) When the cost of transporting finished goods to market is high relative to their value, the key location criterion is ________.
A)low rental or lease rates
B)proximity to raw materials
C)proximity to markets
D)zoning regulations
Q4) Choosing a location in which many other businesses have failed can create a negative image, even for a "new" business.
A)True
B)False
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Chapter 15: Sources of Financing: Equity and Debt
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117 Verified Questions
117 Flashcards
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Sample Questions
Q1) The document outlining the details of the agreement between the entrepreneur and the stock underwriter is called ________.
A)Regulation D
B)a "blue sky" agreement
C)the letter of intent
D)the registration statement
Q2) The single most important ingredient in making a successful initial public offering is selecting a capable underwriter to manage the process.
A)True
B)False
Q3) Crowd funding is a process in which entrepreneurs tap their personal savings and use creative, low-cost start-up methods to launch their businesses.
A)True
B)False
Q4) A small company needs fixed capital to purchase its permanent assets.
A)True
B)False
Q5) What other sources of capital would you suggest that Christine explore?
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Chapter 16: Global Aspects of Entrepreneurship
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133 Verified Questions
133 Flashcards
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Sample Questions
Q1) One of the biggest barriers to small business exports is lack of ________.
A)access to adequate financing
B)attractive countries that are not already saturated by franchising efforts
C)effective distribution strategies
D)information to make informed decisions about franchising
Q2) Although franchise outlets operate throughout the world, the primary market for U.S. franchisers is Europe.
A)True
B)False
Q3) Most small businesses begin their global ventures by establishing international locations.
A)True
B)False
Q4) The biggest barrier facing companies that have never exported is not knowing where or how to start.
A)True
B)False
Q5) How should Martha proceed to determine the best way to export her new grass seed?
Q6) Identify and discuss the international barriers to trade.
Page 18
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Chapter 17: Building a New Venture Team and Planning for the Next Generation
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119 Verified Questions
119 Flashcards
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Sample Questions
Q1) If their companies are to grow and reach their potential, entrepreneurs must learn to be effective leaders.
A)True
B)False
Q2) List and briefly identify the five estate planning tools the owners of a family business should consider.
Q3) The advantages of job rotation include ________.
A)the ability to move from one job to others
B)a greater number and variety of tasks
C)additional flexibility for the company
D)All of the above
Q4) Companies desiring to improve their recruitment efforts are finding that the Internet offers tremendous reach at a relatively low cost and is very effective.
A)True
B)False
Q5) What tools would you suggest to Carol to minimize the estate taxes involved in passing the business on to Ralph and Cooper? Explain the advantages and disadvantages of at least three choices and explain why you make the final recommendation that you do.
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