Question 1

Which of the following describes an entrepreneur?

Accepted Answer

A) Richard Ames, an investor in Red Raider, which is run by his two partners 
B) Chad Olsen, who hired a consulting firm to research his business idea and help him set up Help-Doc, which he now manages 
C) James Hill, who owns Midtown TV but works as a Motorola engineer 
D) Sidney Pell, who runs Midtown TV for its owner, James Hill 
E) None of these choices 
A) Richard Ames, an investor in Red Raider, which is run by his two partners 
B) Chad Olsen, who hired a consulting firm to research his business idea and help him set up Help-Doc, which he now manages 
C) James Hill, who owns Midtown TV but works as a Motorola engineer 
D) Sidney Pell, who runs Midtown TV for its owner, James Hill 
E) None of these choices

Question 2

An entrepreneur does all of the following EXCEPT

Accepted Answer

A) organize. 
B) plan. 
C) hire professional managers. 
D) assume risk. 
E) operate. 
A) organize. 
B) plan. 
C) hire professional managers. 
D) assume risk. 
E) operate.

Question 3

New businesses need six to twelve months of capital before they launch.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is an example of identifying a new niche in an established market?

Accepted Answer

A) Modifying a cell phone keyboard to alphabetical order 
B) Reducing the number of outlets that sell computers 
C) Reducing the price of a printer so that it is more affordable 
D) Introducing a new computer in an industrialized country 
E) Designing a computer that can control traffic flow on a freeway 
A) Modifying a cell phone keyboard to alphabetical order 
B) Reducing the number of outlets that sell computers 
C) Reducing the price of a printer so that it is more affordable 
D) Introducing a new computer in an industrialized country 
E) Designing a computer that can control traffic flow on a freeway

Question 5

Jane's Candy Shack was a quaint shop,in a small town,with high end items that never attracted many customers.Its failure was probably attributable to failure to

Accepted Answer

A) do market research. 
B) pay decent wages. 
C) raise enough capital. 
D) contact the SBIC. 
E) hire a consultant. 
A) do market research. 
B) pay decent wages. 
C) raise enough capital. 
D) contact the SBIC. 
E) hire a consultant.

Question 6

After watching the royal wedding,Susan wants to start her own hat making company in the United States.Where should she look first for financing?

Accepted Answer

A) Personal resources 
B) SBA 
C) Strategic alliances 
D) SBICs 
E) Venture capital companies 
A) Personal resources 
B) SBA 
C) Strategic alliances 
D) SBICs 
E) Venture capital companies

Question 7

Sara Blakely started Spanx after unsuccessfully searching for control undergarments that would not ride up while being worn.This is an example of

Accepted Answer

A) identifying a niche. 
B) a company with a first-mover advantage. 
C) a distribution company. 
D) a new market identifier. 
E) a product assimilator. 
A) identifying a niche. 
B) a company with a first-mover advantage. 
C) a distribution company. 
D) a new market identifier. 
E) a product assimilator.

Question 8

Which of the following statements is TRUE about the industries that small business owners may consider entering?

Accepted Answer

A) Small businesses dominate the construction industry. 
B) Since the deregulation of banks, the small local bank has completely disappeared. 
C) Barriers to entry are generally small. 
D) There are no small businesses in the wholesaling industry. 
E) More than any other industry, discounting lends itself to the skills of the small business owner. 
A) Small businesses dominate the construction industry. 
B) Since the deregulation of banks, the small local bank has completely disappeared. 
C) Barriers to entry are generally small. 
D) There are no small businesses in the wholesaling industry. 
E) More than any other industry, discounting lends itself to the skills of the small business owner.

Question 9

Jay wants to start a new business.With which of the following methods of starting a new business will he pay a share of the income from the business in return for the use of such things as trademarks and business formulas?

Accepted Answer

A) Venture capitalism 
B) Franchising 
C) Buying an existing business whose purchase price includes goodwill 
D) Starting a new business with loans from the SBA 
E) Industrial revenue sharing 
A) Venture capitalism 
B) Franchising 
C) Buying an existing business whose purchase price includes goodwill 
D) Starting a new business with loans from the SBA 
E) Industrial revenue sharing

Question 10

List and briefly describe the four programs available from the SBA that are designed to help small business operators gain access to management expertise.What is the SBA's other primary function?

Accepted Answer

The Small Business Administration (SBA)

Question 11

More than any other industry,manufacturing lends itself to small business.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) Insufficient capital 
B) Managerial incompetence or inexperience 
C) Low start-up costs 
D) Weak control systems 
E) Owner neglect 
A) Insufficient capital 
B) Managerial incompetence or inexperience 
C) Low start-up costs 
D) Weak control systems 
E) Owner neglect

Question 13

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

Accepted Answer

A) Management consultants 
B) Small Business Administration (SB
A)  
C) Networking 
D) Advisory boards 
E) Securities and Exchange Commission (SE
C)  
A) Management consultants 
B) Small Business Administration (SB
A)  
C) Networking 
D) Advisory boards 
E) Securities and Exchange Commission (SE
C)

Question 14

Most experts say that anyone opening a new business should be financially strong enough to operate without business income for

Accepted Answer

A) 1-3 months. 
B) 3-6 months. 
C) 6-12 months. 
D) 1-3 years. 
E) 2-5 years. 
A) 1-3 months. 
B) 3-6 months. 
C) 6-12 months. 
D) 1-3 years. 
E) 2-5 years.

Question 15

Women tend to start their own businesses because they really like being their own bosses.

Accepted Answer

A) True 
 B)False

Question 16

You have a great idea for a new children's toy.Describe your financing options.

Accepted Answer

There are several financing options avai

Question 17

Kristen owns and operates a photography studio.She has no employees.She is a(n)

Accepted Answer

A) small business owner. 
B) intrapreneur. 
C) venture capitalist. 
D) networker. 
E) leaseholder. 
A) small business owner. 
B) intrapreneur. 
C) venture capitalist. 
D) networker. 
E) leaseholder.

Question 18

Large businesses are more likely to succeed in the manufacturing industry than small businesses due to

Accepted Answer

A) the principle of synergy. 
B) economies of scale. 
C) divesting. 
D) the need for minimal start-up resources. 
E) proven business plans. 
A) the principle of synergy. 
B) economies of scale. 
C) divesting. 
D) the need for minimal start-up resources. 
E) proven business plans.

Question 19

The media often portray big business as crushing small business.In fact,what is the relationship between big and small business more likely to be like?

Accepted Answer

The relationship between big and small b

Question 20

The Internet has virtually rewritten all of the rules for starting and operating a small business.

Accepted Answer

A) True 
 B)False

Exam 10: Managing New Venture Formation and Entrepreneurship

Which of the following describes an entrepreneur?

An entrepreneur does all of the following EXCEPT

New businesses need six to twelve months of capital before they launch.

Which of the following is an example of identifying a new niche in an established market?

Jane's Candy Shack was a quaint shop,in a small town,with high end items that never attracted many customers.Its failure was probably attributable to failure to

After watching the royal wedding,Susan wants to start her own hat making company in the United States.Where should she look first for financing?

Sara Blakely started Spanx after unsuccessfully searching for control undergarments that would not ride up while being worn.This is an example of

Which of the following statements is TRUE about the industries that small business owners may consider entering?

Jay wants to start a new business.With which of the following methods of starting a new business will he pay a share of the income from the business in return for the use of such things as trademarks and business formulas?

List and briefly describe the four programs available from the SBA that are designed to help small business operators gain access to management expertise.What is the SBA's other primary function?

More than any other industry,manufacturing lends itself to small business.

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

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

Most experts say that anyone opening a new business should be financially strong enough to operate without business income for

Women tend to start their own businesses because they really like being their own bosses.

You have a great idea for a new children's toy.Describe your financing options.

Kristen owns and operates a photography studio.She has no employees.She is a(n)

Large businesses are more likely to succeed in the manufacturing industry than small businesses due to

The media often portray big business as crushing small business.In fact,what is the relationship between big and small business more likely to be like?

The Internet has virtually rewritten all of the rules for starting and operating a small business.

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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