Question 1

Which of the following statements is true about entrepreneurs?

Accepted Answer

A)  They are typically angel investors. 
B)  They essentially start new businesses. 
C)  They essentially hire professional managers. 
D)  They essentially manage businesses of other individuals. 
E)  They are essentially employees of a corporation. 
A)  They are typically angel investors. 
B)  They essentially start new businesses. 
C)  They essentially hire professional managers. 
D)  They essentially manage businesses of other individuals. 
E)  They are essentially employees of a corporation.

Question 2

____ are a group of small investors seeking to make profits on companies with rapid growth potential.

Accepted Answer

A)  Intrapreneurs 
B)  Hierarchical allies 
C)  Strategic allies 
D)  Venture capitalists 
E)  Banks 
A)  Intrapreneurs 
B)  Hierarchical allies 
C)  Strategic allies 
D)  Venture capitalists 
E)  Banks

Question 3

Match the following numbered items with the most correct response.
A response may be used once, more than once, or not at all.
-Established relationships with the community

Accepted Answer

A) Starting a business from scratch 
B) Buying an existing business 
C) Buying a franchise 
A) Starting a business from scratch 
B) Buying an existing business 
C) Buying a franchise

Question 4

Service businesses:

Accepted Answer

A)  comprise about 4.2 percent of all firms with fewer than 20 employees. 
B)  require high investment costs. 
C)  appeal to the talent for innovation typified by many small enterprises. 
D)  provide little scope for the development of niche strategies. 
E)  are involved in selling products manufactured by other businesses. 
A)  comprise about 4.2 percent of all firms with fewer than 20 employees. 
B)  require high investment costs. 
C)  appeal to the talent for innovation typified by many small enterprises. 
D)  provide little scope for the development of niche strategies. 
E)  are involved in selling products manufactured by other businesses.

Question 5

Which of the following is an example of a company that has identified a new market?

Accepted Answer

A)  Delta Inc. is offering discounts on its vacuum cleaners. 
B)  NutriMax has introduced its low-fat cookies in Asia. 
C)  Omega Corp. has modified the packaging of all its products. 
D)  Beta Inc. has acquired Venus LLC. 
E)  Redd Inc. has changed its company logo. 
A)  Delta Inc. is offering discounts on its vacuum cleaners. 
B)  NutriMax has introduced its low-fat cookies in Asia. 
C)  Omega Corp. has modified the packaging of all its products. 
D)  Beta Inc. has acquired Venus LLC. 
E)  Redd Inc. has changed its company logo.

Question 6

A good deal of money is usually needed to start a(n) _____ business because of the investment normally required in equipment, energy, and raw materials.

Accepted Answer

A)  retail 
B)  wholesaling 
C)  manufacturing 
D)  services 
E)  insurance 
A)  retail 
B)  wholesaling 
C)  manufacturing 
D)  services 
E)  insurance

Question 7

Small businesses:

Accepted Answer

A)  dominate industries that require more resources. 
B)  are the last to lay off workers during economic downswings. 
C)  provide fewer innovations than large companies. 
D)  hire at a lower rate than large employees. 
E)  provide big businesses with many of the services they need. 
A)  dominate industries that require more resources. 
B)  are the last to lay off workers during economic downswings. 
C)  provide fewer innovations than large companies. 
D)  hire at a lower rate than large employees. 
E)  provide big businesses with many of the services they need.

Question 8

A(n) _____ is any advantage that comes to a firm because it exploits an opportunity before any other firm does.

Accepted Answer

A)  comparative advantage 
B)  first-mover advantage 
C)  economic moat 
D)  absolute advantage 
E)  core competency 
A)  comparative advantage 
B)  first-mover advantage 
C)  economic moat 
D)  absolute advantage 
E)  core competency

Question 9

Which of the following is the the most important source of money for individuals starting up new businesses?

Accepted Answer

A)  Strategic alliances 
B)  Government loans 
C)  Personal resources 
D)  Banks and private investors 
E)  Venture capital companies 
A)  Strategic alliances 
B)  Government loans 
C)  Personal resources 
D)  Banks and private investors 
E)  Venture capital companies

Question 10

Which of the following is a disadvantage of franchising agreements?

Accepted Answer

A)  The franchisee cannot use the trademarks and business plans. 
B)  The franchisee loses some independence in running the venture. 
C)  The franchiser does not get any investment from the franchisee. 
D)  The franchisee must establish management and operation processes from scratch. 
E)  The franchiser has no control over what products the franchisee sells. 
A)  The franchisee cannot use the trademarks and business plans. 
B)  The franchisee loses some independence in running the venture. 
C)  The franchiser does not get any investment from the franchisee. 
D)  The franchisee must establish management and operation processes from scratch. 
E)  The franchiser has no control over what products the franchisee sells.

Question 11

Begun in 1976, _____ are designed to consolidate information from various disciplines and institutions, including technical and professional schools.

Accepted Answer

A)  Small Business Development Centers 
B)  Small Business Angel Investors 
C)  Service Corps of Retired Executives 
D)  Active Corps of Executives 
E)  Small Business Colleges 
A)  Small Business Development Centers 
B)  Small Business Angel Investors 
C)  Service Corps of Retired Executives 
D)  Active Corps of Executives 
E)  Small Business Colleges

Question 12

Which of the following is an advantage of a franchising agreement?

Accepted Answer

A)  The franchisee is not required to pay a start-cost. 
B)  The franchisee can easily establish a business with reduced risks. 
C)  The franchisee enjoys maximum independence in running the venture. 
D)  The franchisee gets to modify the franchiser's products. 
E)  The franchisee can create an individual identity in the community. 
A)  The franchisee is not required to pay a start-cost. 
B)  The franchisee can easily establish a business with reduced risks. 
C)  The franchisee enjoys maximum independence in running the venture. 
D)  The franchisee gets to modify the franchiser's products. 
E)  The franchisee can create an individual identity in the community.

Question 13

Entrepreneurs:

Accepted Answer

A)  generally choose manufacturing over retailing. 
B)  use economies of scale as a competitive advantage to compete with large businesses. 
C)  typically do well in manufacturing rather than service businesses. 
D)  generally dominate industries that require more resources and high investment costs. 
E)  are usually better at discovering new markets than are larger, more mature organizations. 
A)  generally choose manufacturing over retailing. 
B)  use economies of scale as a competitive advantage to compete with large businesses. 
C)  typically do well in manufacturing rather than service businesses. 
D)  generally dominate industries that require more resources and high investment costs. 
E)  are usually better at discovering new markets than are larger, more mature organizations.

Question 14

One disadvantage of hiring management consultants to solve problems in business is that:

Accepted Answer

A)  management consultants are expensive and charge high fees for their services. 
B)  most management consultants do not provide objective opinions. 
C)  managment consultants can be of little help to businesses in the manufacturing industry. 
D)  management consultants can only provide suggestions for general administrative issues. 
E)  it is very difficult to find consultants who specialize in one area. 
A)  management consultants are expensive and charge high fees for their services. 
B)  most management consultants do not provide objective opinions. 
C)  managment consultants can be of little help to businesses in the manufacturing industry. 
D)  management consultants can only provide suggestions for general administrative issues. 
E)  it is very difficult to find consultants who specialize in one area.

Question 15

Jason has started a restaurant of his own. He makes all the major operational decisions and is completely liable for the profits and losses the restaurant makes. Jason is most likely to be a(n):

Accepted Answer

A)  SCORE volunteer. 
B)  first-line manager. 
C)  angel investor. 
D)  venture capitalist. 
E)  entrepreneur. 
A)  SCORE volunteer. 
B)  first-line manager. 
C)  angel investor. 
D)  venture capitalist. 
E)  entrepreneur.

Question 16

The most significant disadvantage of a franchising agreement is that:

Accepted Answer

A)  the franchisee is required to create an operations process from scratch. 
B)  the risks involved in franchising are higher compared to starting a business from scratch. 
C)  the franchisee may have to pay a high start-up cost. 
D)  the franchisee will have to set up the business from scratch. 
E)  the franchisee does not receive any management consultation. 
A)  the franchisee is required to create an operations process from scratch. 
B)  the risks involved in franchising are higher compared to starting a business from scratch. 
C)  the franchisee may have to pay a high start-up cost. 
D)  the franchisee will have to set up the business from scratch. 
E)  the franchisee does not receive any management consultation.

Question 17

Explain the first mover advantage and how it differs for small businesses and large organizations.

Accepted Answer

A first-mover advantage is any advantage

Question 18

A group of small investors seeking to make profits on companies with rapid growth potential is called a(n) _____.

Accepted Answer

venture capital company
Ventur

Question 19

_____ are federally licensed to borrow money from the Small Business Administration and to invest it in or lend it to small businesses.

Accepted Answer

A)  Small business investment companies 
B)  Small business angel investors 
C)  Venture capitalists 
D)  Small business management consultants 
E)  Regulatory agencies 
A)  Small business investment companies 
B)  Small business angel investors 
C)  Venture capitalists 
D)  Small business management consultants 
E)  Regulatory agencies

Question 20

Which of the following is true of small businesses?

Accepted Answer

A)  Small business hire a minimum of 200 employees. 
B)  Small firms constitute 2 percent of all businesses in the United States. 
C)  Small businesses have a strong presence in the economy of the United States. 
D)  Small businesses have no presence in the technology sector. 
E)  Small businesses hire at a much slower rate than big businesses during economic recovery. 
A)  Small business hire a minimum of 200 employees. 
B)  Small firms constitute 2 percent of all businesses in the United States. 
C)  Small businesses have a strong presence in the economy of the United States. 
D)  Small businesses have no presence in the technology sector. 
E)  Small businesses hire at a much slower rate than big businesses during economic recovery.

Which of the following statements is true about entrepreneurs?

____ are a group of small investors seeking to make profits on companies with rapid growth potential.

Match the following numbered items with the most correct response. A response may be used once, more than once, or not at all. -Established relationships with the community

Service businesses:

Which of the following is an example of a company that has identified a new market?

A good deal of money is usually needed to start a(n) _____ business because of the investment normally required in equipment, energy, and raw materials.

Small businesses:

A(n) _____ is any advantage that comes to a firm because it exploits an opportunity before any other firm does.

Which of the following is the the most important source of money for individuals starting up new businesses?

Which of the following is a disadvantage of franchising agreements?

Begun in 1976, _____ are designed to consolidate information from various disciplines and institutions, including technical and professional schools.

Which of the following is an advantage of a franchising agreement?

Entrepreneurs:

One disadvantage of hiring management consultants to solve problems in business is that:

Jason has started a restaurant of his own. He makes all the major operational decisions and is completely liable for the profits and losses the restaurant makes. Jason is most likely to be a(n):

The most significant disadvantage of a franchising agreement is that:

Explain the first mover advantage and how it differs for small businesses and large organizations.

A group of small investors seeking to make profits on companies with rapid growth potential is called a(n) _____.

_____ are federally licensed to borrow money from the Small Business Administration and to invest it in or lend it to small businesses.

Which of the following is true of small businesses?

Understanding the Managers Job

The Environment of Organizations and Managers

Planning and Strategic Management

Managing Decision Making

Organization Structure and Design

Organization Change and Innovation

Managing Human Resources in Organizations

Basic Elements of Individual Behavior in Organizations

Managing Employee Motivation and Performance

Leadership and Influence Processes

Communication in Organizations

Managing Work Groups and Teams

Basic Elements of Control

Managing Operations, Quality, and Productivity

Filters

Exam 5: Entrepreneurship and New Venture Management

Which of the following statements is true about entrepreneurs?

____ are a group of small investors seeking to make profits on companies with rapid growth potential.

Match the following numbered items with the most correct response. A response may be used once, more than once, or not at all. -Established relationships with the community

Service businesses:

Which of the following is an example of a company that has identified a new market?

A good deal of money is usually needed to start a(n) _____ business because of the investment normally required in equipment, energy, and raw materials.

Small businesses:

A(n) _____ is any advantage that comes to a firm because it exploits an opportunity before any other firm does.

Which of the following is the the most important source of money for individuals starting up new businesses?

Which of the following is a disadvantage of franchising agreements?

Begun in 1976, _____ are designed to consolidate information from various disciplines and institutions, including technical and professional schools.

Which of the following is an advantage of a franchising agreement?

Entrepreneurs:

One disadvantage of hiring management consultants to solve problems in business is that:

Jason has started a restaurant of his own. He makes all the major operational decisions and is completely liable for the profits and losses the restaurant makes. Jason is most likely to be a(n):

The most significant disadvantage of a franchising agreement is that:

Explain the first mover advantage and how it differs for small businesses and large organizations.

A group of small investors seeking to make profits on companies with rapid growth potential is called a(n) _____.

_____ are federally licensed to borrow money from the Small Business Administration and to invest it in or lend it to small businesses.

Which of the following is true of small businesses?

Understanding the Managers Job

The Environment of Organizations and Managers

Planning and Strategic Management

Managing Decision Making

Organization Structure and Design

Organization Change and Innovation

Managing Human Resources in Organizations

Basic Elements of Individual Behavior in Organizations

Managing Employee Motivation and Performance

Leadership and Influence Processes

Communication in Organizations

Managing Work Groups and Teams

Basic Elements of Control

Managing Operations, Quality, and Productivity

Filters