New Venture Creation Question Bank
Course Introduction
New Venture Creation provides students with the knowledge and practical skills needed to identify, evaluate, and launch new business opportunities. The course covers key concepts such as entrepreneurship, idea generation, opportunity assessment, business model development, resource acquisition, and early-stage financing. Through case studies, hands-on projects, and interactions with entrepreneurs, students learn to develop and present comprehensive business plans while navigating the challenges and uncertainties inherent in starting a new venture. By the end of the course, participants will have a foundational understanding of how to transform innovative ideas into viable businesses.
Recommended Textbook
New Venture Creation Entrepreneurship for the 21st Century 9th Edition by Stephen Spinelli
Available Study Resources on Quizplus
19 Chapters
689 Verified Questions
689 Flashcards
Source URL: https://quizplus.com/study-set/3272 Page 2
Chapter 1: The Global Entrepreneurial Revolution for a Flatter World
Available Study Resources on Quizplus for this Chatper
26 Verified Questions
26 Flashcards
Source URL: https://quizplus.com/quiz/64966
Sample Questions
Q1) When successful entrepreneurs get involved with non-profits directly by offering strategic assistance (like long-term planning,board and executive recruitment,coaching,and leveraging relationships to identify additional resources and facilitate partnerships),this is referred to as ________ philanthropy.
Answer: high engagement
Q2) While various surveys of high school seniors indicate a strong interest in entrepreneurship,a 2004 Gallup Poll showed that a large percentage of American parents would still prefer that their children pursue a less risky career.
A)True
B)False
Answer: False
Q3) What should always be done following an interview with an entrepreneur?
Answer: Write a thank you note
Q4) While the U.S.investment and capital markets have been an integral part of the entrepreneurial revolution in the U.S. ,it is more important to recognize the long-term ________ of the system.
Answer: resilience
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: The Entrepreneurial Mind: Crafting a Personal
Entrepreneurial
Strategy
Available Study Resources on Quizplus for this Chatper
41 Verified Questions
41 Flashcards
Source URL: https://quizplus.com/quiz/64965
Sample Questions
Q1) Successful entrepreneurs possess a well-developed capacity to exert influence without formal power.
A)True
B)False
Answer: True
Q2) In general,how long will venture capitalists work with a start-up before declaring the company a 'lemon'?
A) Up to a year
B) About two and half years
C) At least three years
D) Three to five years
Answer: B
Q3) What plays a significant role in influencing an entrepreneur's values,motivations,attitudes,and behaviors?
Answer: Personal history
Q4) The ________ is the need to excel and for measurable personal accomplishment. Answer: need for achievement
Q5) Entrepreneurs can recognize the difference between a good idea and a viable
Answer: opportunity
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: The Entrepreneurial Process
Available Study Resources on Quizplus for this Chatper
37 Verified Questions
37 Flashcards
Source URL: https://quizplus.com/quiz/64964
Sample Questions
Q1) "Durability" of an opportunity relates to:
A) Return on Investment
B) Market demand
C) Barriers to entry
D) All of the above
Answer: A
Q2) It is appropriate for an entrepreneur to 'think money first' with opportunities that will require venture funding at the seed stage.
A)True
B)False Answer: False
Q3) The Threshold Concept proposes that the odds of success change as a venture reaches a critical mass of over $8 million in sales and 50 employees.
A)True
B)False
Answer: False
Q4) Entrepreneurs with a desire to be with and work with their family may lead them to develop a ________ business.
Answer: lifestyle
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Clean Commerce Is an Opportunity Sea Change
Available Study Resources on Quizplus for this Chatper
41 Verified Questions
41 Flashcards
Source URL: https://quizplus.com/quiz/64963
Sample Questions
Q1) Define sustainability.
Q2) In what mature industry did the entrepreneurial firm Method manage to change the rules?
A) Garden products
B) Consumer packaged goods
C) Home Furnishings
D) Retailing
Q3) Increasingly business strategy and viability demand that we think of and look at our immediate environment in the context of the larger ________.
Q4) What is green chemistry?
Q5) Define "green chemistry" and explain how it relates to molecular thinking.
Q6) Sustainability concepts are incompatible with growth and profits.
A)True
B)False
Q7) Government procurement and business buyers increasingly use environmental performance measures when making their purchasing decisions.
A)True
B)False
Q8) What drives Method's capacity to remain on the competitive edge? Page 6
To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 5: The Opportunity:
Available Study Resources on Quizplus for this Chatper
64 Verified Questions
64 Flashcards
Source URL: https://quizplus.com/quiz/64962
Sample Questions
Q1) When searching for a major opportunity,the best management teams stay away from fragmented industries that have a craft or mom-and-pop character.
A)True
B)False
Q2) The impact on firm performance of industry structure is strongly mitigated by controllable factors such as the strategy selected for entry.
A)True
B)False
Q3) Which of the following is not a reality of new ventures?
A) It's best to avoid large solo projects
B) The key to success is failing quickly
C) Luck is involved
D) All are new venture realities
Q4) In order for an entrepreneur to estimate and communicate sustainable value to potential stakeholders,an opportunity should have a minimum market size of
Q5) What minimum level of gross margin is characteristic of a superior opportunity?
Q6) In general,when do business plans become obsolete?
Q7) If an idea is not an opportunity,what is an opportunity?
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 6: Screening Venture Opportunities
Available Study Resources on Quizplus for this Chatper
14 Verified Questions
14 Flashcards
Source URL: https://quizplus.com/quiz/64961
Sample Questions
Q1) The single largest factor contributing to stillborn ventures and to those who will ripen as lemons is lack of focus on profitability and cash flow.
A)True
B)False
Q2) The opportunity must be placed in the context of both a competitive environment and an existing ________ that the entrepreneur believes can be improved upon and altered in a way that creates value.
Q3) When researching an opportunity,it is essential to communicate with ________ and document their responses.
Q4) The venture opportunity screening exercise creates the foundation for the development of ________.
Q5) Completing the Venture Opportunity Screening Exercise is designed to clear up the uncertainties and risks associated with that venture concept.
A)True
B)False
Q6) Name three sources of information that entrepreneurs can use to develop their venture opportunity profile.
To view all questions and flashcards with answers, click on the resource link above.
Page 9
Chapter 7: Opportunities for Social Entrepreneurship
Available Study Resources on Quizplus for this Chatper
35 Verified Questions
35 Flashcards
Source URL: https://quizplus.com/quiz/64960
Sample Questions
Q1) ________ provides value-added funding for nonprofit organizations to increase their potential for social impact.
Q2) Why is access to capital an increasing challenge to social entrepreneurs?
A) Investors prefer more traditional venture models.
B) Scalability issues.
C) Competition from other social ventures.
D) All of the above.
Q3) Enterprising nonprofits always strive for which of the following?
A) Scalability
B) Sustainability
C) Revenue
D) All of the above
Q4) In the early 1970s the notion of wicked problems emerged out of the complexity of resolving issues related to what?
A) Inflation
B) Oil shortages
C) Urban and governmental planning
D) All of the above
Q5) What are the two types of enterprising nonprofits and how do they differ?
Q6) How do social and enterprising nonprofits differ from hybrid models?
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: The Business Plan
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/64959
Sample Questions
Q1) The entrepreneurial team should tailor their business plan to the likes and dislikes of the target investor group.
A)True B)False
Q2) It is acceptable to have unnamed management team members in your business plan as long as you can demonstrate they are critical to the operation.
A)True B)False
Q3) The right investor can make the difference between an average and a good or great venture.
A)True B)False
Q4) When presenting a plan for a business that involves highly technical material,investors will expect a full description of those applications and processes within the plan.
A)True B)False
Q5) Describe how listening and asking questions is an important aspect of the business plan presentation.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 9: The Entrepreneurial Leader and the Team
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/64958
Sample Questions
Q1) At what stage of entrepreneurial transition do conflicts between founders most often arise?
A) Planning
B) Doing
C) Leading
D) Leading Managers
Q2) The _________ stage is by far the most perilous stage and is characterized by the direct and exhaustive drive,energy,and entrepreneurial talent of a lead entrepreneur and a key team member or two.
Q3) The ever-expanding number of devices designed to exploit Internet accessibility is having a profound impact on _______.
Q4) In rapid-growth firms,power and control are delegated and leadership is shared.
A)True
B)False
Q5) What are the most challenging times for the founding entrepreneur?
A) Leadership transitions
B) Startup funding
C) Competitive responses
D) Going public
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 10: Ethical Decision Making and the Entrepreneur
Available Study Resources on Quizplus for this Chatper
23 Verified Questions
23 Flashcards
Source URL: https://quizplus.com/quiz/64957
Sample Questions
Q1) Entire industries have developed their own codes of ethics as a way of heading off action by Congress.
A)True
B)False
Q2) When making ethical decisions,it is best to choose an approach you feel most comfortable with and stick to those principles.
A)True
B)False
Q3) Which approach to ethics holds that the ethical person will always choose actions that will provide for the greatest good (or least bad)for the greatest number of people?
A) Utilitarianism
B) Aristotle's approach
C) Kantism
D) Deontology
Q4) How does the concept known as 'the fog of war' relate to ethical behavior and the entrepreneurial experience?
Q5) Why is it important to study and think about ethical situations in business settings?
To view all questions and flashcards with answers, click on the resource link above.
Page 13
Chapter 11: Resource Requirements
Available Study Resources on Quizplus for this Chatper
39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/64956
Sample Questions
Q1) Effective entrepreneurs set aside time for purely random activities-things done with no specific problem in mind.
A)True
B)False
Q2) Effective entrepreneurs are more likely than others to undertake actions toward increasing their network density and ________.
Q3) Other people's resources do not include which of the following?
A) Advice from friends or relatives
B) Government-funded management assistance programs
C) Free books and pamphlets
D) Material loaned or provided inexpensively or free by customers
Q4) What is the best referral system for locating consultants?
Q5) As is the case with legal and accounting professionals,the fees that consultants charge correlate closely with the quality of their services.
A)True
B)False
Q6) What is the main reason for building a brain trust for a new venture?
Q7) One price of resource ownership is an inherent ________.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Q8) How can new venture entrepreneurs without law degrees save money on legal work?
Chapter 12: Franchising
Available Study Resources on Quizplus for this Chatper
32 Verified Questions
32 Flashcards
Source URL: https://quizplus.com/quiz/64955
Sample Questions
Q1) In franchising,the ________ is the concept innovator who grows by seeking others to operate the concept in local markets.
Q2) The capital outlay requirements to become a franchisee with a dominant national player are generally less than what it costs to join a regionally successful operation.
A)True
B)False
Q3) Franchising offers a thoughtful system for reshaping and executing a delivery system designed to extract maximum ________ from the opportunity.
Q4) Research to develop a demographic profile of the customer base will not include 'non-user' profiles.
A)True
B)False
Q5) At the center of the Franchise Relationship Model is the:
A) Customer
B) Market
C) Contract
D) Financial structure
Q6) Describe the entrepreneurial nature of the franchising model.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 13: Entrepreneurial Finance
Available Study Resources on Quizplus for this Chatper
32 Verified Questions
32 Flashcards
Source URL: https://quizplus.com/quiz/64954
Sample Questions
Q1) Strategies that optimize or maximize the amount of money to be raised decrease the risk in new and emerging companies.
A)True
B)False
Q2) Transactions cash balances
Plus Accounts receivable
Plus Inventory
Plus Other operating current assets (e.g. ,prepaid expenses)
Less Accounts payable
Less Taxes payable
Less Other operating current liabilities (e.g. ,accrued expenses)
This formula is used to calculate ________.
Q3) Short-term debt is incurred in ________ months or less.
Q4) Discuss the premise behind fund-raising strategies of the successful entrepreneur.
Q5) The core concept in determining the external financing requirements of the venture is ________.
Q6) What are the three central issues in entrepreneurial finance?
Q7) Long-term borrowings mature in more than _________.
Q8) What are the three core principles of entrepreneurial finance?
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 14: Obtaining Venture and Growth Capital
Available Study Resources on Quizplus for this Chatper
41 Verified Questions
41 Flashcards
Source URL: https://quizplus.com/quiz/64953
Sample Questions
Q1) Angels or wealthy individuals are often sought because they are more easily sold than formal investors (i.e. ,venture capitalists and private placements).
A)True
B)False
Q2) Bootstrapping an early stage company is a means of retaining equity.
A)True
B)False
Q3) Discuss how timing is a critical aspect of raising risk capital.
Q4) What is the range fund size of mainstream venture capitalists?
A) $25-$50 million under management
B) $50-$100 million under management
C) $250-$499 million under management
D) Over $500 million under management
Q5) Private placements are used for firms that are not in a position to pursue an IPO.
A)True
B)False
Q6) Mezzanine is a debt instrument that does not require regular interest payments.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 15: The Deal: Valuation, structure, and Negotiation
Available Study Resources on Quizplus for this Chatper
35 Verified Questions
35 Flashcards
Source URL: https://quizplus.com/quiz/64952
Sample Questions
Q1) A cram down round is an investment round where follow-on investors are compelled by favorable conditions to accept a higher valuation than they would prefer.
A)True
B)False
Q2) Staged investments are a method used to manage risk.
A)True
B)False
Q3) Name three factors that can affect the price of an investment deal.
Q4) A company currently has 500,000 shares outstanding,which are owned by the current owners.If the venture capitalist requires a 28.5 percent ownership,what will be the total number of shares outstanding after the investment?
Q5) Strategic circumference is never an intentional outcome.
A)True
B)False
Q6) Which of the following is not an example of a valuation method?
A) Venture capital method
B) Fundamental method
C) Experimental method
D) The First Chicago method
18
To view all questions and flashcards with answers, click on the resource link above.
Chapter 16: Obtaining Debt Capital
Available Study Resources on Quizplus for this Chatper
63 Verified Questions
63 Flashcards
Source URL: https://quizplus.com/quiz/64951
Sample Questions
Q1) Because banks may earn as little as one percent ________ on total assets,they are especially sensitive to the possibility of a loss.
Q2) A ________ is a formal or informal agreement between a bank and a borrower concerning the maximum loan a bank will allow the borrower for a one-year period.
Q3) To keep trade credit open,the full balance must be periodically paid off.
A)True
B)False
Q4) Unlike equity investors,banks place very little weight on the quality of the management team.
A)True
B)False
Q5) Why do startups have a more difficult time borrowing money than existing businesses?
Q6) Leasing enables a company to conserve cash and reduce its requirements for equity capital.
A)True
B)False
Q7) Leverage improves present value,but increases ________.
Q8) With regard to personal guarantees,what is meant by 'joint and severable'?
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 17: Leading Rapid Growth, crises, and Recovery
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/64950
Sample Questions
Q1) Most causes of failure are external and out of the control of company management.
A)True
B)False
Q2) Describe the decline in morale at a troubled company.
Q3) One challenge fast-growth firms face is an over-abundance of viable opportunities.
A)True
B)False
Q4) What are the three most commonly found areas for potential cuts/improvements in a troubled company?
Q5) Explain how having a turnaround plan in place can help a troubled company.
Q6) What was the core theme of Jack Stack's management approach at Springfield Remanufacturing Corporation?
A) Education
B) Profit sharing
C) Long-term goals
D) Communication
Q7) Identify four non-quantitative signals that would indicate the possibility of trouble.
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 18: The Family As Entrepreneur
Available Study Resources on Quizplus for this Chatper
44 Verified Questions
44 Flashcards
Source URL: https://quizplus.com/quiz/64949
Sample Questions
Q1) Enterprising families focus on maintaining their local advantage,safeguarding their brands,assets,and customers,and on honing their operational efficiencies.
A)True
B)False
Q2) Discuss why a financial mindset is more effective than an operational mindset.
Q3) The family ________ category is when an existing family company or group starts new businesses.
Q4) One of the primary roles families play is to provide family ________ to family members who want to start a business.
Q5) Most of the small and mid-sized family-owned businesses in the US are modest,'mom and pop' operations.
A)True
B)False
Q6) The goal of dialogue is to find solutions that are not constrained by the boundaries of either of the original positions.
A)True
B)False
Q7) What are the six dimensions for family enterprising?
Page 21
To view all questions and flashcards with answers, click on the resource link above.
Chapter 19: The Harvest and Beyond
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/64948
Sample Questions
Q1) What is the most vital aspect of crafting a harvest strategy?
A) Capital
B) Timing
C) The Offering
D) Depends on the venture
Q2) Which of the following harvest options is most likely to produce the most cash for the founder at the time of sale?
A) IPO
B) MBO
C) Outright sale
D) Strategic alliance
Q3) In a ________,founders can attract capital,often in substantial amounts,from a large company interested in their technologies.
Q4) What is the most common challenge with a management buyout?
A) Capital
B) Expertise
C) Legal structure
D) Depends on the industry
Q5) What are the three core aspects of shaping a harvest strategy?
To view all questions and flashcards with answers, click on the resource link above. Page 22