Question 1

Research has uncovered several important differences between managers and entrepreneurs. One of these differences is that

Accepted Answer

A)  managers possess a greater need for autonomy than entrepreneurs do. 
B)  entrepreneurs tend to be more agreeable than managers. 
C)  managers tend to have a stronger internal locus of control than managers do. 
D)  managers are more motivated by promotions and organizational perks than entrepreneurs are. 
E)  managers are generally more innovative and creative than entrepreneurs. 
A)  managers possess a greater need for autonomy than entrepreneurs do. 
B)  entrepreneurs tend to be more agreeable than managers. 
C)  managers tend to have a stronger internal locus of control than managers do. 
D)  managers are more motivated by promotions and organizational perks than entrepreneurs are. 
E)  managers are generally more innovative and creative than entrepreneurs. D

Question 2

We Are the World is an importing company that specializes in importing hand-made arts and crafts from crafters and artisans around the world. The company has about $4 million worth of stock outstanding. Due to its desire to avoid double taxation, it is structured so that its individual shareholders pay taxes on all of the company's income. The shareholders report the flow-through of income and losses on their personal tax returns and are assessed at their individual tax rates. We Are the World is a(n)

Accepted Answer

A)  C corporation. 
B)  G corporation. 
C)  S corporation. 
D)  limited liability company (LL
C) . 
E)  investment trust. 
A)  C corporation. 
B)  G corporation. 
C)  S corporation. 
D)  limited liability company (LL
C) . 
E)  investment trust. C

Question 3

A ________ is a legal structure that can sell rights of ownership in the form of stocks or shares.

Accepted Answer

A)  sole proprietorship 
B)  general partnership 
C)  corporation 
D)  limited liability company (LL
C)  
E)  limited partnership 
A)  sole proprietorship 
B)  general partnership 
C)  corporation 
D)  limited liability company (LL
C)  
E)  limited partnership C

Question 4

Which example best fits the definition and expectations of a start-up company?

Accepted Answer

A)  NoConcussion, a company that manufactures equipment to be placed inside football players' helmets to prevent concussions 
B)  MeID, a company that uses sophisticated blockchain technology to provide ID verification for all human beings based on their individual physiological (biometric) characteristics, such as fingerprints and eyeball scans 
C)  A New Leash on Life, which creates and sells diamond-studded leashes for dogs owned by the world's wealthiest people 
D)  Live or Die, a vacation company that specializes in dropping people off in remote locations with no supplies, and forcing them to life off the land or die trying 
E)  Umbi, a small company that offers a kit that allows new parents to preserve their babies' umbilical cords for life 
A)  NoConcussion, a company that manufactures equipment to be placed inside football players' helmets to prevent concussions 
B)  MeID, a company that uses sophisticated blockchain technology to provide ID verification for all human beings based on their individual physiological (biometric) characteristics, such as fingerprints and eyeball scans 
C)  A New Leash on Life, which creates and sells diamond-studded leashes for dogs owned by the world's wealthiest people 
D)  Live or Die, a vacation company that specializes in dropping people off in remote locations with no supplies, and forcing them to life off the land or die trying 
E)  Umbi, a small company that offers a kit that allows new parents to preserve their babies' umbilical cords for life

Question 5

The following is an excerpt from a business plan:
Cake Walk is an upscale new bakery whose baked goods reflect what's happening in the news today. For example, during Oscar week, our windows will show cakes of the nominees for Best Actor and Best Actress. During Super Bowl week, we'll offer baked football-oriented treats, such as football-shaped cookies and cupcakes, and we'll offer edible cake jerseys of the competing teams. The principals of Cake Walk will be Francesca Miller, who has run a successful New York City bakery for more than ten years, and her business partner Daryce Livingston, a Wharton-educated MBA who has worked at a major Manhattan investment firm since 2004. The firm is organized as a partnership between Miller and Livingston.
 \[\begin{array} { | l | l | } 
\hline
\text { Strengths } & \text { Weaknesses } \
\text { - Excellent location } & -\text { Product prices will be higher than } \
\text { - Superb product by a well-known } & \text { those of similar products sold at } \
\text { baker } & \text { supermarkets. } \
\text { - Strong media presence by the } & -\text { High rent required for downtown } \
\text { principals }&\text { location creates large overhead. }\
\hline
Opportunities&Threats\
- \text{There is no other bakery within a five-mile radius.}&- \text{Cakes and other confections are a}\
- \text{National market trends show a consistent  10 \%}& \text{luxury good; possible downturns in the}\
 \text{increase yearly in consumers choosing} &\text{economy mean that consumers may give}\
\text{to purchase from a bakery rather than a mass}&\text{up freshly baked cakes before they give}\
 \text{producer such as a supermarket.}&\text{up other items.}\
&- \text{The success of Cake Walk may}\
& \text{quickly cause other competitors to open}\
& \text{up shops in the same vicinity.}\
\hline
\end{array}\] In which section of Cake Walk's business plan would this information be found? Explain.

Accepted Answer

This information would be found in the B

Question 6

Explain the difference between an entrepreneur and an intrapreneur. Name at least one successful entrepreneur and the company he or she founded.

Accepted Answer

An entrepreneur is someone who organizes

Question 7

Many companies start with the founder's ________. For example, Jeff Bezos, the founder of Amazon.com and the world's wealthiest man, has said that he intends for Amazon to be "Earth's most customer-centric company" and to be "a place where people can come to find and discover anything they might want to buy online."

Accepted Answer

A)  desire to work for a large corporation 
B)  vision and goals 
C)  academic background 
D)  family wealth 
E)  ethical framework 
A)  desire to work for a large corporation 
B)  vision and goals 
C)  academic background 
D)  family wealth 
E)  ethical framework

Question 8

If you were giving an aspiring entrepreneur advice, which statement would you avoid?

Accepted Answer

A)  "Identify a need for an opportunity, and then fill that need." 
B)  "Avoid risk, don't rock the boat, and think conservatively." 
C)  "Study customer complaints, and a find a way to solve to them." 
D)  "Identify a problem or frustration, and then develop a solution." 
E)  "Identify your skills, talents, or passions, and use them as the basis for your business." 
A)  "Identify a need for an opportunity, and then fill that need." 
B)  "Avoid risk, don't rock the boat, and think conservatively." 
C)  "Study customer complaints, and a find a way to solve to them." 
D)  "Identify a problem or frustration, and then develop a solution." 
E)  "Identify your skills, talents, or passions, and use them as the basis for your business."

Question 9

Who is least likely to describe himself or herself as self-employed and most likely to self-identify as an entrepreneur?

Accepted Answer

A)  a freelance editor who sells his services to various publishing companies 
B)  a scientist who has developed a process for converting the garbage in landfills into useful energy, thereby decreasing pollution and reducing society's reliance on fossil fuels 
C)  an electrician who owns his own business and who specializes in outdoor lighting 
D)  an accountant who goes to people's homes to help them prepare their income tax returns 
E)  a hair stylist who rents a chair at a salon and sees about 20 clients per week, who pay her directly 
A)  a freelance editor who sells his services to various publishing companies 
B)  a scientist who has developed a process for converting the garbage in landfills into useful energy, thereby decreasing pollution and reducing society's reliance on fossil fuels 
C)  an electrician who owns his own business and who specializes in outdoor lighting 
D)  an accountant who goes to people's homes to help them prepare their income tax returns 
E)  a hair stylist who rents a chair at a salon and sees about 20 clients per week, who pay her directly

Question 10

A business plan will likely not answer this question.

Accepted Answer

A)  "How will I fund my business?" 
B)  "What opportunities will my business take advantage of?" 
C)  "What is my vision?" 
D)  "What resources does my business require?" 
E)  "What types of office supplies (staples, paper clips) will I use in my office?" 
A)  "How will I fund my business?" 
B)  "What opportunities will my business take advantage of?" 
C)  "What is my vision?" 
D)  "What resources does my business require?" 
E)  "What types of office supplies (staples, paper clips) will I use in my office?"

Question 11

How does organizational culture and design develop in a start-up company?

Accepted Answer

A)  The founders of start-up companies typically spell out a plan for their organizational culture and design in their initial business plan. 
B)  Once a start-up has received funding, its investors typically dictate the type of organizational culture and design that they require. 
C)  In the early days of the business, the owners hire people they like and trust, but as the business grows, they hire outside people and need to develop a more explicit organizational culture and design. 
D)  Because most start-up companies are sole proprietorships and partnerships, most new companies have no need to identify a mission or to create an organizational culture because the owners are synonymous with the company's goals and mission. 
E)  Most new companies begin operations with a strong sense of their organizational culture and design, but as the company grows, these guiding principles are no longer needed and are therefore abandoned in the quest for profit. 
A)  The founders of start-up companies typically spell out a plan for their organizational culture and design in their initial business plan. 
B)  Once a start-up has received funding, its investors typically dictate the type of organizational culture and design that they require. 
C)  In the early days of the business, the owners hire people they like and trust, but as the business grows, they hire outside people and need to develop a more explicit organizational culture and design. 
D)  Because most start-up companies are sole proprietorships and partnerships, most new companies have no need to identify a mission or to create an organizational culture because the owners are synonymous with the company's goals and mission. 
E)  Most new companies begin operations with a strong sense of their organizational culture and design, but as the company grows, these guiding principles are no longer needed and are therefore abandoned in the quest for profit.

Question 12

Sequoia Capital is a venture capital firm that invests in promising new start-ups that have a high potential for strong profitability over a fairly short period of time. In one day, Sequoia's management team hears presentations from five businesspeople who are looking for a $5 million investment for their new firm. Based on Dr. Lakshmi Balachandra's research, ________ is mostly likely to receive the $5 million funding from Sequoia.

Accepted Answer

A)  Amy, who is a very genuine person who demonstrates great sensitivity and warmth as she makes her presentation, 
B)  Balki, whose two fraternity brothers, Biff and Chip, are on the board of directors at Sequoia Capital, 
C)  Craig, who wants to start a clown college, who dresses up in an elaborate costume and sprays seltzer in the faces of Sequoia's management team during his presentation, 
D)  Danielle, who has run a successful business in the past but who has been called out on social media for possible ethical breaches, 
E)  Eriq, who makes a solid presentation but whom the management team finds lacking in humor, 
A)  Amy, who is a very genuine person who demonstrates great sensitivity and warmth as she makes her presentation, 
B)  Balki, whose two fraternity brothers, Biff and Chip, are on the board of directors at Sequoia Capital, 
C)  Craig, who wants to start a clown college, who dresses up in an elaborate costume and sprays seltzer in the faces of Sequoia's management team during his presentation, 
D)  Danielle, who has run a successful business in the past but who has been called out on social media for possible ethical breaches, 
E)  Eriq, who makes a solid presentation but whom the management team finds lacking in humor,

Question 13

Although estimates vary widely, it seems reasonable to suggest that start-up costs for the average business are approximately

Accepted Answer

A)  $10,000-$80,000. 
B)  $25,000-$100,000. 
C)  $250,000. 
D)  $300,000-$500,000. 
E)  over $1 million. 
A)  $10,000-$80,000. 
B)  $25,000-$100,000. 
C)  $250,000. 
D)  $300,000-$500,000. 
E)  over $1 million.

Question 14

Your name is Joanne Warren, and you are writing a business plan for a coffee house that you plan to open in the downtown district of your city. Your business will be called A Cup of Joanne, and you plan to distinguish yourself from your competitors by offering blends from all around the world. You will also sponsor international coffee tastings and sell one-pound bags of freshly ground fair-trade coffee. The bank from which you are seeking to borrow $20,000 has asked you for a full business plan. ________ is/are not required in your business plan.

Accepted Answer

A)  A market analysis 
B)  Interior decoration plans and merchandising 
C)  Sales strategies 
D)  Funding requirements and financial projections 
E)  A business description and organization 
A)  A market analysis 
B)  Interior decoration plans and merchandising 
C)  Sales strategies 
D)  Funding requirements and financial projections 
E)  A business description and organization

Question 15

Think about a company or a business that you might like to start. You need not have a grand idea for a multinational corporation; you might decide, for example, that you want to start a company in which you mow people's lawns in the summer and shovel their sidewalks after snowstorms. Or you might decide to learn how to be a tattoo artist and then become a "mobile" tattoo artist who goes to people's homes to give them tattoos. For your chosen business, explain how you would follow the advice given by the authors:
1. Identify your motives.
2. Build clients.
3. Practice humility. (This is more about self-development. Explain how you would practice humility).
4. Surround yourself with the right people.
5. Learn the basics of accounting.
If you cannot think of a business you would like to start, use the lawn mowing/snow shoveling business to answer this question.

Accepted Answer

1. My motive is to earn enough money dur

Question 16

List and explain at least four possible sources of funding for start-ups.

Accepted Answer

The following are six common sources of

Question 17

________ is the level of necessaries, comforts, and luxuries that a person is accustomed to enjoying.

Accepted Answer

A)  Economic development 
B)  HDI (human development index) 
C)  GDP (gross domestic product) 
D)  Capital accumulation 
E)  Standard of living 
A)  Economic development 
B)  HDI (human development index) 
C)  GDP (gross domestic product) 
D)  Capital accumulation 
E)  Standard of living

Question 18

The following is an excerpt from a business plan: "To open our new upscale toy store, We R Toys, we require a total of $225,000. The owners will be providing $100,000 of this amount from their own savings, and their friends and families have promised an additional $25,000. Therefore, We R Toys requires a bank loan of $100,000." In which section of We R Toys' business plan would this information be found?

Accepted Answer

A)  Executive Summary 
B)  Funding Requirements 
C)  Market Analysis 
D)  Sales Strategies 
E)  Financial Projections 
A)  Executive Summary 
B)  Funding Requirements 
C)  Market Analysis 
D)  Sales Strategies 
E)  Financial Projections

Question 19

Identify and explain at least three ways in which self-employment differs from entrepreneurship. How might self-employment be the first step on the road to entrepreneurship?

Accepted Answer

The following are some key differences b

Question 20

Accel, Greylock Partners, Sequoia Capital, Benchmark, and Andreessen Horowitz are all in the business of providing funds to new businesses in exchange for an ownership share in the company. These companies are all seeking a high return on their investment, and they tend to be drawn to technology and biotechnology companies. Accel, Greylock, Sequoia, Benchmark, and Andreessen are all

Accepted Answer

A)  business incubators. 
B)  for-profit arms of the SBA. 
C)  commercial banking organizations. 
D)  C corporations. 
E)  venture capital firms. 
A)  business incubators. 
B)  for-profit arms of the SBA. 
C)  commercial banking organizations. 
D)  C corporations. 
E)  venture capital firms.

Research has uncovered several important differences between managers and entrepreneurs. One of these differences is that

A ________ is a legal structure that can sell rights of ownership in the form of stocks or shares.

Which example best fits the definition and expectations of a start-up company?

Explain the difference between an entrepreneur and an intrapreneur. Name at least one successful entrepreneur and the company he or she founded.

If you were giving an aspiring entrepreneur advice, which statement would you avoid?

Who is least likely to describe himself or herself as self-employed and most likely to self-identify as an entrepreneur?

A business plan will likely not answer this question.

How does organizational culture and design develop in a start-up company?

Although estimates vary widely, it seems reasonable to suggest that start-up costs for the average business are approximately

List and explain at least four possible sources of funding for start-ups.

________ is the level of necessaries, comforts, and luxuries that a person is accustomed to enjoying.

Identify and explain at least three ways in which self-employment differs from entrepreneurship. How might self-employment be the first step on the road to entrepreneurship?

The Exceptional Manager: What You Do, How You Do It

Management Theory: Essential Background for the Successful Manager

The Managers Changing Work Environment and Ethical Responsibilities: Doing the Right Thing

Global Management Managing Across Borders

Planning: the Foundation of Successful Management

Strategic Management: How Exceptional Managers Realize a Grand Design

Individual and Group Decision Making: How Managers Make Things Happen

Organizational Culture, Structure, and Design: Building Blocks of the Organization

Human Resource Management: Getting the Right People

Organizational Change and Innovation: Lifelong Challenges

Managing Individual Differences and Behaviour: Supervising People As People

Motivating Employees: Achieving Superior Performance in the Workplace

Groups and Teams: Increasing Cooperation, Reducing Conflict

Power, Influence, and Leadership: From Becoming a Manager to Becoming a Leader

Interpersonal and Organizational Communication: Mastering the Exchange of Information

Control Systems and Quality Management: Techniques for Enhancing Organizational Effectiveness

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Exam 17: Entrepreneurship

Research has uncovered several important differences between managers and entrepreneurs. One of these differences is that

A ________ is a legal structure that can sell rights of ownership in the form of stocks or shares.

Which example best fits the definition and expectations of a start-up company?

Explain the difference between an entrepreneur and an intrapreneur. Name at least one successful entrepreneur and the company he or she founded.

If you were giving an aspiring entrepreneur advice, which statement would you avoid?

Who is least likely to describe himself or herself as self-employed and most likely to self-identify as an entrepreneur?

A business plan will likely not answer this question.

How does organizational culture and design develop in a start-up company?

Although estimates vary widely, it seems reasonable to suggest that start-up costs for the average business are approximately

List and explain at least four possible sources of funding for start-ups.

________ is the level of necessaries, comforts, and luxuries that a person is accustomed to enjoying.

Identify and explain at least three ways in which self-employment differs from entrepreneurship. How might self-employment be the first step on the road to entrepreneurship?

The Exceptional Manager: What You Do, How You Do It

Management Theory: Essential Background for the Successful Manager

The Managers Changing Work Environment and Ethical Responsibilities: Doing the Right Thing

Global Management Managing Across Borders

Planning: the Foundation of Successful Management

Strategic Management: How Exceptional Managers Realize a Grand Design

Individual and Group Decision Making: How Managers Make Things Happen

Organizational Culture, Structure, and Design: Building Blocks of the Organization

Human Resource Management: Getting the Right People

Organizational Change and Innovation: Lifelong Challenges

Managing Individual Differences and Behaviour: Supervising People As People

Motivating Employees: Achieving Superior Performance in the Workplace

Groups and Teams: Increasing Cooperation, Reducing Conflict

Power, Influence, and Leadership: From Becoming a Manager to Becoming a Leader

Interpersonal and Organizational Communication: Mastering the Exchange of Information

Control Systems and Quality Management: Techniques for Enhancing Organizational Effectiveness

Filters