Question 1

A majority of companies require at least $100,000 to begin operations.

Accepted Answer

A) True 
 B)False

Question 2

Commonly outsourced responsibilities include all of the following except:

Accepted Answer

A)  Payroll 
B)  Accounting 
C)  Legal work 
D)  Customer service 
E)  Janitorial Services 
A)  Payroll 
B)  Accounting 
C)  Legal work 
D)  Customer service 
E)  Janitorial Services

Question 3

It is usually more efficient to do everything in-house instead of subcontracting certain jobs to other companies.

Accepted Answer

A) True 
 B)False

Question 4

One of the biggest misconceptions about an idea for a new business is that ______

Accepted Answer

A)  It must be technology related 
B)  It must be unique 
C)  It must be patentable 
D)  None of the above 
A)  It must be technology related 
B)  It must be unique 
C)  It must be patentable 
D)  None of the above

Question 5

To reduce the cost of office space you may be able to convince a landlord to…

Accepted Answer

A)  Reduce rent 
B)  Defer rent payments for a period of time 
C)  Allow subletting of unused space 
D)  B and C 
E)  A and B 
A)  Reduce rent 
B)  Defer rent payments for a period of time 
C)  Allow subletting of unused space 
D)  B and C 
E)  A and B

Question 6

Access to entrepreneurial role models can be a significant factor in determining whether or not someone will become an entrepreneur.

Accepted Answer

A) True 
 B)False

Question 7

Entrepreneurs should always seek to own the resources that they utilize while building a company.

Accepted Answer

A) True 
 B)False

Question 8

Investors typically expect an annual rate of return in the range of _______, from a growing startup:

Accepted Answer

A)  -20% to 0% 
B)  0% to 10% 
C)  5% to 25% 
D)  40% to 60% 
E)  80% to 120% 
A)  -20% to 0% 
B)  0% to 10% 
C)  5% to 25% 
D)  40% to 60% 
E)  80% to 120%

Question 9

Which of the following is not one of the Nine Fs of Entrepreneurial Success?

Accepted Answer

A)  Focused 
B)  Frugal 
C)  Flexible 
D)  Frenetic 
E)  Fun 
A)  Focused 
B)  Frugal 
C)  Flexible 
D)  Frenetic 
E)  Fun

Question 10

Raising venture capital is a critical step for most successful ventures.

Accepted Answer

A) True 
 B)False

Question 11

Whether a company is successful is largely a matter of luck.

Accepted Answer

A) True 
 B)False

Question 12

The 8 year survival rate for new businesses is:

Accepted Answer

A)  1% 
B)  12% 
C)  25% 
D)  50% 
E)  73% 
A)  1% 
B)  12% 
C)  25% 
D)  50% 
E)  73%

Question 13

The Small Business Administration's Service Core of Retired Executives provides paid assistance to entrepreneurs.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not cited by the chapter as a primary reason that entrepreneurs choose to go into business for themselves?

Accepted Answer

A)  Fame 
B)  Innovation 
C)  Financial success 
D)  Independence 
E)  Self-realization 
A)  Fame 
B)  Innovation 
C)  Financial success 
D)  Independence 
E)  Self-realization

Question 15

The situation that arises when an entrepreneur is reliant on his or her company for a salary and has most of his or her personal net worth tied up in the company is called:

Accepted Answer

A)  Sweat equity 
B)  Venture capital 
C)  Double jeopardy 
D)  Factoring 
E)  Locus of control 
A)  Sweat equity 
B)  Venture capital 
C)  Double jeopardy 
D)  Factoring 
E)  Locus of control

Question 16

For a company that goes public, the founding entrepreneur typically owns a majority of the shares of the corporation.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not one of the global conditions increasing the rate of change in business?

Accepted Answer

A)  Managerial specialization and layering. 
B)  The industrial sector's reliance on advanced knowledge. 
C)  Advancements in communications. 
D)  Changes in government regulations. 
E)  All of the above 
A)  Managerial specialization and layering. 
B)  The industrial sector's reliance on advanced knowledge. 
C)  Advancements in communications. 
D)  Changes in government regulations. 
E)  All of the above

Question 18

A $150,000 dollar investment in a company that yielded a $30,000 dividend in the first year would have achieved which of the following returns on investment?

Accepted Answer

A)  2% 
B)  5% 
C)  15% 
D)  20% 
E)  30% 
A)  2% 
B)  5% 
C)  15% 
D)  20% 
E)  30%

Question 19

The term 'free cash flow' generally refers to:

Accepted Answer

A)  Money that is raised through grants and donations 
B)  Debt that requires no initial interest payments 
C)  Cash that is generated in excess of fund required to sustain operations and purchase assets 
D)  Capital raised through an initial public offering or other equity financing 
E)  None of the above 
A)  Money that is raised through grants and donations 
B)  Debt that requires no initial interest payments 
C)  Cash that is generated in excess of fund required to sustain operations and purchase assets 
D)  Capital raised through an initial public offering or other equity financing 
E)  None of the above

Question 20

Entrepreneurial companies should consider outsourcing responsibilities and functions that are not critical to the company's success.

Accepted Answer

A) True 
 B)False

A majority of companies require at least $100,000 to begin operations.

Commonly outsourced responsibilities include all of the following except:

It is usually more efficient to do everything in-house instead of subcontracting certain jobs to other companies.

One of the biggest misconceptions about an idea for a new business is that ______

To reduce the cost of office space you may be able to convince a landlord to…

Access to entrepreneurial role models can be a significant factor in determining whether or not someone will become an entrepreneur.

Entrepreneurs should always seek to own the resources that they utilize while building a company.

Investors typically expect an annual rate of return in the range of _______, from a growing startup:

Which of the following is not one of the Nine Fs of Entrepreneurial Success?

Raising venture capital is a critical step for most successful ventures.

Whether a company is successful is largely a matter of luck.

The 8 year survival rate for new businesses is:

The Small Business Administration's Service Core of Retired Executives provides paid assistance to entrepreneurs.

Which of the following is not cited by the chapter as a primary reason that entrepreneurs choose to go into business for themselves?

The situation that arises when an entrepreneur is reliant on his or her company for a salary and has most of his or her personal net worth tied up in the company is called:

For a company that goes public, the founding entrepreneur typically owns a majority of the shares of the corporation.

Which of the following is not one of the global conditions increasing the rate of change in business?

A $150,000 dollar investment in a company that yielded a $30,000 dividend in the first year would have achieved which of the following returns on investment?

The term 'free cash flow' generally refers to:

Entrepreneurial companies should consider outsourcing responsibilities and functions that are not critical to the company's success.

The Power of Entrepreneurship

Opportunity Recognition, Shaping, and Reshaping

Prototyping Your Ideas

Understanding Your Business Model and Developing Your Strategy

Entrepreneurial Marketing

Building the Founding Team

The Business Planning Process

Building Your Pro Forma Financial Statements

Financing Entrepreneurial Ventures Worldwide

Raising Money for Starting and Growing Businesses

Debt and Other Forms of Financing

Legal and Tax Issues, Including Intellectual Property

Entrepreneurial Growth

Social Entrepreneurship

Filters

Exam 2: The Entrepreneurial Process

A majority of companies require at least $100,000 to begin operations.

Commonly outsourced responsibilities include all of the following except:

It is usually more efficient to do everything in-house instead of subcontracting certain jobs to other companies.

One of the biggest misconceptions about an idea for a new business is that ______

To reduce the cost of office space you may be able to convince a landlord to…

Access to entrepreneurial role models can be a significant factor in determining whether or not someone will become an entrepreneur.

Entrepreneurs should always seek to own the resources that they utilize while building a company.

Investors typically expect an annual rate of return in the range of _______, from a growing startup:

Which of the following is not one of the Nine Fs of Entrepreneurial Success?

Raising venture capital is a critical step for most successful ventures.

Whether a company is successful is largely a matter of luck.

The 8 year survival rate for new businesses is:

The Small Business Administration's Service Core of Retired Executives provides paid assistance to entrepreneurs.

Which of the following is not cited by the chapter as a primary reason that entrepreneurs choose to go into business for themselves?

The situation that arises when an entrepreneur is reliant on his or her company for a salary and has most of his or her personal net worth tied up in the company is called:

For a company that goes public, the founding entrepreneur typically owns a majority of the shares of the corporation.

Which of the following is not one of the global conditions increasing the rate of change in business?

A $150,000 dollar investment in a company that yielded a $30,000 dividend in the first year would have achieved which of the following returns on investment?

The term 'free cash flow' generally refers to:

Entrepreneurial companies should consider outsourcing responsibilities and functions that are not critical to the company's success.

The Power of Entrepreneurship

Opportunity Recognition, Shaping, and Reshaping

Prototyping Your Ideas

Understanding Your Business Model and Developing Your Strategy

Entrepreneurial Marketing

Building the Founding Team

The Business Planning Process

Building Your Pro Forma Financial Statements

Financing Entrepreneurial Ventures Worldwide

Raising Money for Starting and Growing Businesses

Debt and Other Forms of Financing

Legal and Tax Issues, Including Intellectual Property

Entrepreneurial Growth

Social Entrepreneurship

Filters