Question 1

What is the most common source of funds for entrepreneurs?

Accepted Answer

A) Bank loans 
B) Money from venture capitalists 
C) Personal financial resources 
D) Issuing stock in the business 
E) Forming strategic alliances 
A) Bank loans 
B) Money from venture capitalists 
C) Personal financial resources 
D) Issuing stock in the business 
E) Forming strategic alliances

Question 2

Minorities and women are starting ____________________ small businesses than in the past.

Accepted Answer

The answer of Minorities and women are starting ____________________ small...

Question 3

Which of the following is NOT a source of management advice for an entrepreneur?

Accepted Answer

A) Federal Trade Commission (FT
C)  
B) Small Business Administration (SB
A)  
C) Service Corps of Retired Executives (SCOR
E)  
D) Active Corps of Executives (AC
E)  
E) Small Business Institute (SBI) 
A) Federal Trade Commission (FT
C)  
B) Small Business Administration (SB
A)  
C) Service Corps of Retired Executives (SCOR
E)  
D) Active Corps of Executives (AC
E)  
E) Small Business Institute (SBI)

Question 4

Under the guidance of the ____,veteran business professors and students seeking advanced degrees work with small business owners to help solve specific problems like shoplifting and ineffectual advertising.

Accepted Answer

A) Active Corps of Executives (AC
E)  
B) National Federation of Independent Businesses (NFI
B)  
C) Small Business Development Center (SBD
C)  
D) Small Business Institute (SBI) 
E) Service Corps of Retired Executives (SCOR
E)  
A) Active Corps of Executives (AC
E)  
B) National Federation of Independent Businesses (NFI
B)  
C) Small Business Development Center (SBD
C)  
D) Small Business Institute (SBI) 
E) Service Corps of Retired Executives (SCOR
E)

Question 5

Four general factors contribute to the success rate of small businesses.Which of the following is NOT one of those factors?

Accepted Answer

A) Managerial competence 
B) Luck 
C) Hard work, drive, and dedication 
D) Empathy with customers 
E) Careful analysis of market conditions 
A) Managerial competence 
B) Luck 
C) Hard work, drive, and dedication 
D) Empathy with customers 
E) Careful analysis of market conditions

Question 6

The ____ tells how much money is needed to operate a new business.

Accepted Answer

A) income statement 
B) profit and loss statement 
C) cash budget 
D) t-account 
E) balance sheet 
A) income statement 
B) profit and loss statement 
C) cash budget 
D) t-account 
E) balance sheet

Question 7

Teresa Walsh and Bonnie Kelly started Silpada Designs,jewelry sold through home parties.They are best classified as

Accepted Answer

A) intrapreneurs. 
B) franchisers. 
C) venture capitalists. 
D) entrepreneurs. 
E) franchisees. 
A) intrapreneurs. 
B) franchisers. 
C) venture capitalists. 
D) entrepreneurs. 
E) franchisees.

Question 8

____________________ systems are needed to keep a business on track and to help alert entrepreneurs to potential trouble.

Accepted Answer

The answer of ____________________ systems are needed to keep a...

Question 9

After watching the royal wedding,Susan wants to start her own hat making company in the United States.To help her determine whether this is a good idea,she needs to find the answers to which of the following questions?

Accepted Answer

A) Who are my customers, and where are they? 
B) Who are my competitors, and where are they? 
C) How can I differentiate my product from that of my competitors? 
D) In what quantities and at what price will my customers buy my service? 
E) All of these choices 
A) Who are my customers, and where are they? 
B) Who are my competitors, and where are they? 
C) How can I differentiate my product from that of my competitors? 
D) In what quantities and at what price will my customers buy my service? 
E) All of these choices

Question 10

Professional managers,whose job is running someone else's business,are entrepreneurs.

Accepted Answer

A) True 
 B)False

Question 11

How has e-commerce affected entrepreneurship?

Accepted Answer

E-commerce has had a profound impact on

Question 12

An entrepreneur looking to enter the manufacturing industry is more likely to fail due to

Accepted Answer

A) size of initial capital investment. 
B) economies of scale. 
C) labor requirements. 
D) market saturation. 
E) all of these choices. 
A) size of initial capital investment. 
B) economies of scale. 
C) labor requirements. 
D) market saturation. 
E) all of these choices.

Question 13

The most significant disadvantage to franchising as a means of acquiring a business is

Accepted Answer

A) the amount of paperwork. 
B) the absence of economies of scale. 
C) high start-up costs. 
D) government regulation. 
E) low break-even points. 
A) the amount of paperwork. 
B) the absence of economies of scale. 
C) high start-up costs. 
D) government regulation. 
E) low break-even points.

Question 14

Which of the following is NOT an example of an entrepreneur?

Accepted Answer

A) Madeline runs a neighborhood lemonade stand by herself. 
B) Diane Molberg started By Request, a successful home bakery business that guarantees that any item it sells is no more than 24 hours old. 
C) Elmer Olsen created the successful Bayfield Apple Jam Company using a recipe from his wife and some investment capital. 
D) Cindy has a yard sale once a year. 
E) Donna Cook wanted to start a little home business 10 years ago; now she has a company that produces and markets more than 150 dry cooking mixes. 
A) Madeline runs a neighborhood lemonade stand by herself. 
B) Diane Molberg started By Request, a successful home bakery business that guarantees that any item it sells is no more than 24 hours old. 
C) Elmer Olsen created the successful Bayfield Apple Jam Company using a recipe from his wife and some investment capital. 
D) Cindy has a yard sale once a year. 
E) Donna Cook wanted to start a little home business 10 years ago; now she has a company that produces and markets more than 150 dry cooking mixes.

Question 15

According to the Small Business Administration,small businesses account for a small percentage of all U.S.exports.

Accepted Answer

A) True 
 B)False

Question 16

The strong presence of small businesses in the United States is typical of the rest of the mature economies.

Accepted Answer

A) True 
 B)False

Question 17

Special Exercises
Jennifer Laurash was a middle manager in corporate America.She switched to work as a full time mother when her children were young.Then she started the Tiny Little T-shirt Company in her basement.Her clothing line is now international.
Match the following.You may use a response once,more than once,or not at all.

Accepted Answer

The answer of Special Exercises
Jennifer Laurash was a middle manager...

Question 18

A new business can be started either from scratch or by buying an existing business.Which method seems best to you? Explain your answer.

Accepted Answer

There is no one-size-fits-all answer to

Question 19

A first-mover enters a segment of a market that offers a new opportunity because it is not currently being satisfied.

Accepted Answer

A) True 
 B)False

Question 20

____________________ are people who engage in planning,organizing,operations,and assuming risk in a business venture.

Accepted Answer

The answer of ____________________ are people who engage in planning,organizing,operations,and...

Exam 10: Managing New Venture Formation and Entrepreneurship

What is the most common source of funds for entrepreneurs?

Minorities and women are starting ____________________ small businesses than in the past.

Which of the following is NOT a source of management advice for an entrepreneur?

Under the guidance of the ____,veteran business professors and students seeking advanced degrees work with small business owners to help solve specific problems like shoplifting and ineffectual advertising.

Four general factors contribute to the success rate of small businesses.Which of the following is NOT one of those factors?

The ____ tells how much money is needed to operate a new business.

Teresa Walsh and Bonnie Kelly started Silpada Designs,jewelry sold through home parties.They are best classified as

____________________ systems are needed to keep a business on track and to help alert entrepreneurs to potential trouble.

After watching the royal wedding,Susan wants to start her own hat making company in the United States.To help her determine whether this is a good idea,she needs to find the answers to which of the following questions?

Professional managers,whose job is running someone else's business,are entrepreneurs.

How has e-commerce affected entrepreneurship?

An entrepreneur looking to enter the manufacturing industry is more likely to fail due to

The most significant disadvantage to franchising as a means of acquiring a business is

Which of the following is NOT an example of an entrepreneur?

According to the Small Business Administration,small businesses account for a small percentage of all U.S.exports.

The strong presence of small businesses in the United States is typical of the rest of the mature economies.

A new business can be started either from scratch or by buying an existing business.Which method seems best to you? Explain your answer.

A first-mover enters a segment of a market that offers a new opportunity because it is not currently being satisfied.

____________________ are people who engage in planning,organizing,operations,and assuming risk in a business venture.

Managing and the Managers Job

Traditional and Contemporary Issues and Challenges

The Environment and Culture of Organizations

The Ethical and Social Environment

The Global Environment

The Multicultural Environment

Basic Elements of Planning and Decision Making

Managing Strategy and Strategic Planning

Managing Decision Making and Problem Solving

Basic Elements of Organizing

Managing Organization Design

Managing Organization Change and Innovation

Managing Human Resources in Organizations

Basic Elements of Individual Behavior in Organizations

Managing Employee Motivation and Performance

Managing Leadership and Influence Processes

Managing Interpersonal Relations and Communication

Managing Work Groups and Teams

Basic Elements of Control

Managing Operations, Quality, and Productivity

Managing Information and Information Technology

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