Introduction to Entrepreneurship Test Bank
Course Introduction
Introduction to Entrepreneurship explores the fundamental concepts and practical skills necessary for identifying, evaluating, and developing new business opportunities. The course covers the process of creating a startup, from idea generation and market research to business planning, financing, and innovation. Students will examine case studies, engage in hands-on activities, and learn about the mindset and characteristics of successful entrepreneurs. By the end of the course, learners will gain a solid understanding of how to transform creative ideas into viable businesses while navigating common challenges faced by entrepreneurs.
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) In order to understand entrepreneurship as a process,it is essential to consider which of the following factors?
A) The economic, technological, and social conditions from which opportunities rise.
B) The people who recognize technological, economic, and social conditions from which opportunities rise
C) The business techniques and legal structures used to develop opportunities.
D) The economic and social effects produced by the realization of opportunities.
E) All of the above.
Answer: A
Q2) Over a certain period of time,an entrepreneur changes the price of a specific product and tries to carefully measure what effect that change alone has on the number of that product that is sold. This process is known as
A) reflection.
B) theorizing.
C) top down analysis.
D) systematic observation.
E) qualifying common sense.
Answer: D
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) Which of the following are the three attributes of demand conditions that enhance new firm formation?
A) Market size, market amortization, market growth.
B) Market growth, market amortization, market complexity.
C) Market complexity, market segmentation, fixed costs.
D) Market size, market growth, market segmentation.
E) Market amortization, market complexity, market segmentation.
Answer: D
Q2) Which of the following is NOT one of the three major sources of opportunity?
A) Technological change.
B) Political and regulatory change.
C) Social and demographic change.
D) None of the mentioned are sources of opportunity.
E) A,B, and C are sources of opportunity.
Answer: E
Q3) Success at entrepreneurial activity requires the entrepreneur to develop a business idea that can defend against competition
A)True
B)False
Answer: True
Page 4
To view all questions and flashcards with answers, click on the resource link above.
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) The process through which individuals conclude that they have identified the potential to create something new that has the capacity to generate economic value is called
A) idea generation.
B) creativity.
C) human cognition.
D) opportunity recognition.
E) none of the above.
Answer: D
Q2) Research shows that people generally cannot be taught to be better able to recognize opportunities.
A)True
B)False
Answer: False
Q3) Many entrepreneurs get their start by noticing a need that is not now being met for some people or businesses,and then filling that need - hopefully better than anyone else can.
A)True
B)False
Answer: True
Page 5
To view all questions and flashcards with answers, click on the resource link above.
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 goal of the HubZone program is to
A) pump new life into economically disadvantaged areas.
B) provide a safe and healthy work environment.
C) help minority-owned businesses enter the economic mainstream.
D) prohibit discrimination against persons with disabilities.
E) Both C and D
Q2) Marketing research is
A) more creativity than logic.
B) more logic than creativity.
C) more art than science.
D) more science than art.
E) B and D.
Q3) In which type of corporation do profits and losses flow through to the shareholders,and they pay any taxes due as individuals,according to their own tax bracket?
A) Subchapter S corporation.
B) Subchapter XY corporation.
C) Regular C corporation.
D) Standardized S corporation.
E) Monitored K corporation.
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) Similarities that allow coworkers to feel more comfortable with each other include A) values.
B) age.
C) gender.
D) ethnic background.
E) all of the above.
Q2) A board of directors is not usually legally required for a new business that is not incorporated. Is it a good idea for an entrepreneur to have a board of advisers even if not legally required?
Q3) An entrepreneur knows someone who is in the banking business,someone in manufacturing,a professor at a local university,and the president of the Chamber of Commerce. From the entrepreneur's perspective,this refers to A) distributive justice..
B) social network.
C) social perception.
D) agreeableness.
E) the Big Five.
Q4) What is the "Big Five?"
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 6: Financial Resources For New Ventures: How To
Get 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) 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.
Q2) Which of the following are needed to calculate breakeven?
A) Determine the sales price of the product.
B) Estimate the variable cost of the product.
C) Estimate the business' fixed costs.
D) Divide the fixed costs by the contribution margin percentage to calculate the breakeven sales volume.
E) All of the above.
Q3) In general,the introduction of the entrepreneur to the investor does not take place until the middle of the financing process.
A)True
B)False
Q4) Due diligence typically includes an investigation of A) the business model.
B) the market.
C) the legal entity.
D) the financial records.
E) all of the above.
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) Why is break-even analysis important in the business plan?
Q2) Which of the following is not an important part of presenting a business plan?
A) Avoid technical jargon.
B) Be sure that the presenter knows how to get the PowerPoint presentation working.
C) Rehearse carefully and often.
D) Choices a and c are correct.
E) Choices a, b, and c are correct.
Q3) Talented,experienced,and motivated people at the top of a new venture are very important for its success.
A)True
B)False
Q4) A plan describing how a new business will actually operate and how it will make a profit is known as
A) cash flow statement.
B) proforma income statement.
C) business model.
D) persuasion plan.
E) policy capturing.
Page 10
Q5) Explain what policy capturing is as it applies to venture capitalists.
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) Assume that one party to a contract does not complete her end of the agreement. The other person sues and is awarded money that is about equal to the damages sustained by the breach of contract. This money is known as
A) punitive damages.
B) consideration.
C) compensatory damages.
D) breach damages.
E) standardized damages.
Q2) A customer asks an entrepreneur to sponsor an upcoming community event and the entrepreneur agrees to do it with no fee,but changes his mind right before the deadline. By which basic element of a contract agreement is the entrepreneur not obligated to uphold his part of the deal?
A) Capacity
B) Agreement
C) Exchange
D) Legality
E) Consideration
Q3) Describe an S Corporation. Examine the requirements and the consequences if such requirements are not met.
11
To view all questions and flashcards with answers, click on the resource link above.
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) Making the transition from early adopters to early majority is usually called
A) walking the bridge.
B) crossing over.
C) market jump.
D) market transition.
E) crossing the chasm.
Q2) Entrepreneurs will have more success offering new products and services to existing markets using known solutions.
A)True
B)False
Q3) AT&T originally required special phone jacks to be installed in each customer's house. After the Carterfone Law was passed,all telephone companies had to use standard jacks like AT&T's. This market structure is known as
A) Technical Standard.
B) Dominant Design.
C) Standard Feature.
D) Carterfone Structure.
E) None of the Above.
Q4) 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) An entrepreneur who is in direct control of all business components,marketing,production,finance,human resource,etc.is probably using which of the following types of business mode for exploiting opportunities?
A) Hierarchical.
B) Market-based.
C) Monopoly.
D) Franchise.
E) None of the Above.
Q2) Which of the following are concerns for an entrepreneur during the pursuit of an opportunity?
A) Technical uncertainty.
B) Competitive uncertainty.
C) Market uncertainty.
D) Information asymmertry.
E) All of the above are concerns.
Q3) A business that is totally owned by an entrepreneur is known as a hierarchical mode type of business.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
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) An inventor obtained a patent on a product and licensed the right to use the knowledge related to this patent to another company. This represents a A) merger.
B) technology license.
C) merchandise license.
D) trademark.
E) internal strategy.
Q2) An entrepreneur started a management consulting company. The first several years were very challenging in finding potential clients and building relationships with them,in developing the services that the company would sell to clients,and just "getting known" as a management consulting company. These years required considerable money,but there were few sales. After several years,the company became known and now has many clients and large sales,all the while,expenses are lower than in the first years. This represents the idea of
A) a joint venture.
B) global expansion.
C) an external strategy.
D) a merger.
E) a scalable business model.
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) Which of the following candidates should be selected for the job?
A) The one who is most likely to succeed on the job.
B) The one whose knowledge, skills, and abilities are the closest match to the job requirements.
C) The most qualified one.
D) The one who is most likely to fit in with the organizational culture.
E) All of the Above.
Q2) Setting goals can be one way to increase motivation.
A)True
B)False
Q3) The authors of the textbook say that transformational leaders tend to produce effects that seem to be contradictory. Identify these contradictions and explain how they arise.
Q4) The references of a job applicant should be checked because some applicants state that they have education or experiences that they do not have.
A)True
B)False
Q5) Explain why feedback is a necessary part of goal setting in order to make goal setting a good motivational tool.
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) A limited partnership could be used to transfer a family-owned business to others in the family..
A)True
B)False
Q2) Logrolling refers to both parties maximizing joint benefits due to exploring all options possible.
A)True
B)False
Q3) An entrepreneur is preparing to sell her business and is attempting to place a value on it. In addition to everything else in the business,she has hired some of the very best people over the years and believes that these people add considerable value to the business. These valuable people are known as
A) the family trust.
B) fixed assets.
C) variable assets.
D) intangible assets.
E) prospectus.
Q4) What does "win-win" mean?
To view all questions and flashcards with answers, click on the resource link above. Page 16
Q5) Explain what is involved in an ordinary Employee Stock Ownership Plan (ESOP).