Exam 2: The Entrepreneurial Process

Entrepreneurship reduces the overall health of an economy by destroying jobs in traditional industries. (not in this chapter)

Generally speaking, entrepreneurs have a stronger need to be in control of their own fate.

Marginal cost is a term that refers to expenses that are difficult to justify in an entrepreneurial environment.

On average, US companies make about 11% net income.

What ratio best reflects the number of companies that begin with venture capital in hand?

Often start-ups can reduce overhead by using outside firms for…

When determining how to allocate scarce resources, an entrepreneur should:

Which of the following is not a critical component for a successful new business?

Which of the following would be the best explanation for the lack of minority owned businesses in the United States?

Having multiple layers of management is the best way to ensure that a startup is flexible and quick to react to changes.

The majority of entrepreneurs' business ideas come from area outside of their present line of employment or experience.

The two types of startup capital are debt and equity.

To determine the amount of capital that your company needs, crucial resources must be assessed first.

Secrecy about one's idea is more likely to hurt the development of the business than help it.

Approximately 50% of Inc. 500 companies make a net profit margin of …

One difference between having an idea vs. an opportunity is the ability to list potential customers by name.

The most costly expense that seed-stage biotechnology companies face in their early years is the initial expenditure on manufacturing equipment.

In entrepreneurship, luck is where ______________ and opportunity meet.

Anyone who wishes to pursue an entrepreneurial venture would be wise to take at least three of the widely distributed entrepreneur-attribute tests beforehand.

A majority of the businesses started each year will eventually go bankrupt.