Question 1

New small business startups often fail because of:

Accepted Answer

A)  lack of business expertise. 
B)  strict financial controls. 
C)  high ethical standards. 
D)  slow growth. 
E)  strategic leadership. 
A)  lack of business expertise. 
B)  strict financial controls. 
C)  high ethical standards. 
D)  slow growth. 
E)  strategic leadership.

Question 2

Small businesses have a high success rate.

Accepted Answer

A) True 
 B)False

Question 3

Colin and Becky started a garbage disposal and recycling program called "No More Trash" in their city, which has seen enormous growth in the last few years. The public waste management system has proved to be a failure as the authorities are overwhelmed by the influx of people from all parts of the country. Which of the following kinds of entrepreneurship is "No More Trash" an example of?

Accepted Answer

A)  Serial entrepreneurship 
B)  Necessity-based entrepreneurship 
C)  Intrapreneurship 
D)  Internet entrepreneurship 
E)  Social entrepreneurship 
A)  Serial entrepreneurship 
B)  Necessity-based entrepreneurship 
C)  Intrapreneurship 
D)  Internet entrepreneurship 
E)  Social entrepreneurship

Question 4

Igor needed financing for his budding business but was rejected by many financing companies. Finally, one of his uncle's friends, a wealthy man, got interested in the business and gave Igor a substantial amount for a share in the venture. Which of the following best represents Igor's source of finance?

Accepted Answer

A)  Initial public offering 
B)  Revolving credit 
C)  Debt financing 
D)  Angel investor 
E)  Loan shark 
A)  Initial public offering 
B)  Revolving credit 
C)  Debt financing 
D)  Angel investor 
E)  Loan shark

Question 5

Toby and William are both general managers at Alton & Sons, their father's business. After a heart attack, their father decides to retire. He is faced with the challenge of choosing between one of his two equally capable sons to replace him in the business. Which type of problem related to family businesses is the father facing?

Accepted Answer

A)  Family business integration 
B)  Succession problem 
C)  Family disagreement 
D)  Role confusion 
E)  Family business feud 
A)  Family business integration 
B)  Succession problem 
C)  Family disagreement 
D)  Role confusion 
E)  Family business feud

Question 6

_____ facilitate making large investments in new ventures in return for an equity stake in the business.

Accepted Answer

A)  State-directed financing 
B)  Entrepreneurial capitalism 
C)  Venture capitalists 
D)  Debt financing 
E)  Oligarchic capitalism 
A)  State-directed financing 
B)  Entrepreneurial capitalism 
C)  Venture capitalists 
D)  Debt financing 
E)  Oligarchic capitalism

Question 7

The life cycle of an entrepreneurial firm begins with the breakthrough stage.

Accepted Answer

A) True 
 B)False

Question 8

_____ leadership manages and leads the venture into maturity as an ever-evolving and still-growing enterprise.

Accepted Answer

A)  Strategic 
B)  Entrepreneurial 
C)  Bureaucratic 
D)  Transformational 
E)  Democratic 
A)  Strategic 
B)  Entrepreneurial 
C)  Bureaucratic 
D)  Transformational 
E)  Democratic

Question 9

Yvette has recently lost her job and has not been able to find employment elsewhere. She has to support her children, and take care of her mortgage. She realizes a niche for chemical-free house cleaning services. Eventually she opens her own house cleaning service. This is an example of _____.

Accepted Answer

A)  classic entrepreneurship 
B)  serial entrepreneurship 
C)  intrapreneurship 
D)  necessity-based entrepreneurship 
E)  social entrepreneurship 
A)  classic entrepreneurship 
B)  serial entrepreneurship 
C)  intrapreneurship 
D)  necessity-based entrepreneurship 
E)  social entrepreneurship

Question 10

The goal of business incubators is to:

Accepted Answer

A)  ensure that established businesses retain their competitive advantage. 
B)  aid third generation family businesses resolve family business feuds. 
C)  formulate a succession plan for established family businesses. 
D)  increase the survival rates for new startups. 
E)  establish social enterprises. 
A)  ensure that established businesses retain their competitive advantage. 
B)  aid third generation family businesses resolve family business feuds. 
C)  formulate a succession plan for established family businesses. 
D)  increase the survival rates for new startups. 
E)  establish social enterprises.

Question 11

Entrepreneurs' belief that they are in control of their own destiny shows that they have an internal locus of control.

Accepted Answer

A) True 
 B)False

Question 12

Daphne decided to open her first store in Dallas. Over time, she did not address new challenges to her business such as having to add 15 employees unexpectedly due to customer demand or the changing needs of her customers. After several bad decisions, she finally had to shut her business down. What was most likely the main reason for the failure of Daphne's business?

Accepted Answer

A)  Lack of experience 
B)  Insufficient financing 
C)  Lack of commitment 
D)  Ethical failure 
E)  Growing too fast 
A)  Lack of experience 
B)  Insufficient financing 
C)  Lack of commitment 
D)  Ethical failure 
E)  Growing too fast

Question 13

Which of the following is true about a franchise?

Accepted Answer

A)  It is one of the least common ways to get involved in a business. 
B)  It runs under the franchisee's name and guidance. 
C)  The franchise parent receives a specified share of income or a flat fee from the franchisee. 
D)  It makes use of things like opensource software, while containing costs, staying small, and keeping operations as simple as possible. 
E)  It refers to a business in which material or goods are given to another person, but ownership is retained until the goods are sold. 
A)  It is one of the least common ways to get involved in a business. 
B)  It runs under the franchisee's name and guidance. 
C)  The franchise parent receives a specified share of income or a flat fee from the franchisee. 
D)  It makes use of things like opensource software, while containing costs, staying small, and keeping operations as simple as possible. 
E)  It refers to a business in which material or goods are given to another person, but ownership is retained until the goods are sold.

Question 14

A(n) ____ entrepreneur is someone willing to pursue opportunities in situations others view as problems or threats.

Accepted Answer

The answer of A(n) ____ entrepreneur is someone willing to...

Question 15

A family business feud is the issue of who will run the business when the current head leaves.

Accepted Answer

A) True 
 B)False

Question 16

Money is the key to entrepreneurial success.

Accepted Answer

A) True 
 B)False

Question 17

A _____ entrepreneur is a risk-taking individual who takes action to pursue opportunities others fail to recognize, or even view as problems or threats.

Accepted Answer

A)  serial 
B)  classic 
C)  follow-through 
D)  sustainer 
E)  social 
A)  serial 
B)  classic 
C)  follow-through 
D)  sustainer 
E)  social

Question 18

A limited ____ corporation is a hybrid business form combining the advantages of the sole proprietorship, partnership, and corporation.

Accepted Answer

The answer of A limited ____ corporation is a hybrid...

Question 19

Business incubators aid in the development of startups.

Accepted Answer

A) True 
 B)False

Question 20

A(n) _____ plan describes the direction for a new business and the financing needed to operate it.

Accepted Answer

A)  succession 
B)  business 
C)  structural 
D)  operational 
E)  feasibility 
A)  succession 
B)  business 
C)  structural 
D)  operational 
E)  feasibility

New small business startups often fail because of:

Small businesses have a high success rate.

_____ facilitate making large investments in new ventures in return for an equity stake in the business.

The life cycle of an entrepreneurial firm begins with the breakthrough stage.

_____ leadership manages and leads the venture into maturity as an ever-evolving and still-growing enterprise.

Yvette has recently lost her job and has not been able to find employment elsewhere. She has to support her children, and take care of her mortgage. She realizes a niche for chemical-free house cleaning services. Eventually she opens her own house cleaning service. This is an example of _____.

The goal of business incubators is to:

Entrepreneurs' belief that they are in control of their own destiny shows that they have an internal locus of control.

Which of the following is true about a franchise?

A(n) ____ entrepreneur is someone willing to pursue opportunities in situations others view as problems or threats.

A family business feud is the issue of who will run the business when the current head leaves.

Money is the key to entrepreneurial success.

A _____ entrepreneur is a risk-taking individual who takes action to pursue opportunities others fail to recognize, or even view as problems or threats.

A limited ____ corporation is a hybrid business form combining the advantages of the sole proprietorship, partnership, and corporation.

Business incubators aid in the development of startups.

A(n) _____ plan describes the direction for a new business and the financing needed to operate it.

Management, Managers, and Careers

Management Learning Past to Present

Ethics and Social Responsibility

Environment, Technology, and Sustainability

Global Management and Cultural Diversity

Data and Decision Making

Planning Processes and Techniques

Control Processes and Systems

Strategy and Strategic Management

Organization Structures

Organizational Culture and Change

Human Resource Management

Leading and Leadership Development

Individual Behavior

Motivation Theory and Practice

Teams and Teamwork

Communication and Collaboration

Filters

Exam 6: Entrepreneurship and New Ventures

New small business startups often fail because of:

Small businesses have a high success rate.

_____ facilitate making large investments in new ventures in return for an equity stake in the business.

The life cycle of an entrepreneurial firm begins with the breakthrough stage.

_____ leadership manages and leads the venture into maturity as an ever-evolving and still-growing enterprise.

Yvette has recently lost her job and has not been able to find employment elsewhere. She has to support her children, and take care of her mortgage. She realizes a niche for chemical-free house cleaning services. Eventually she opens her own house cleaning service. This is an example of _____.

The goal of business incubators is to:

Entrepreneurs' belief that they are in control of their own destiny shows that they have an internal locus of control.

Which of the following is true about a franchise?

A(n) ____ entrepreneur is someone willing to pursue opportunities in situations others view as problems or threats.

A family business feud is the issue of who will run the business when the current head leaves.

Money is the key to entrepreneurial success.

A _____ entrepreneur is a risk-taking individual who takes action to pursue opportunities others fail to recognize, or even view as problems or threats.

A limited ____ corporation is a hybrid business form combining the advantages of the sole proprietorship, partnership, and corporation.

Business incubators aid in the development of startups.

A(n) _____ plan describes the direction for a new business and the financing needed to operate it.

Management, Managers, and Careers

Management Learning Past to Present

Ethics and Social Responsibility

Environment, Technology, and Sustainability

Global Management and Cultural Diversity

Data and Decision Making

Planning Processes and Techniques

Control Processes and Systems

Strategy and Strategic Management

Organization Structures

Organizational Culture and Change

Human Resource Management

Leading and Leadership Development

Individual Behavior

Motivation Theory and Practice

Teams and Teamwork

Communication and Collaboration

Filters