Question 1

Entrepreneurship reduces the overall health of an economy by destroying jobs in traditional industries. (not in this chapter)

Accepted Answer

A) True 
 B)False  False

Question 2

Generally speaking, entrepreneurs have a stronger need to be in control of their own fate.

Accepted Answer

A) True 
 B)False  True

Question 3

Marginal cost is a term that refers to expenses that are difficult to justify in an entrepreneurial environment.

Accepted Answer

A) True 
 B)False  False

Question 4

On average, US companies make about 11% net income.

Accepted Answer

A) True 
 B)False

Question 5

What ratio best reflects the number of companies that begin with venture capital in hand?

Accepted Answer

A)   1 in 2 companies
B)   1 in 20 companies
C)   1 in 500 companies
D)   1 in 2000 companies
E)   1 in 10,000 companies

Question 6

Often start-ups can reduce overhead by using outside firms for…

Accepted Answer

A)   Payroll
B)   Accounting
C)   Advertising
D)   All of the above
E)   None of the above

Question 7

When determining how to allocate scarce resources, an entrepreneur should:

Accepted Answer

A)   Focus on the company's key success factors
B)   Spread resources around to gain experience
C)   Focus exclusively on marketing
D)   Focus exclusively on technology
E)   None of the above

Question 8

Which of the following is not a critical component for a successful new business?

Accepted Answer

A)   The opportunity
B)   The management team
C)   The age of the lead entrepreneur
D)   The resources available
E)   None of the above

Question 9

Which of the following would be the best explanation for the lack of minority owned businesses in the United States?

Accepted Answer

A)   Lack of entrepreneurial role models
B)   Small market potential for minority owned businesses
C)   Lack of business ideas in this population
D)   Legal roadblocks to minority ownership
E)   Satisfaction with one's present job

Question 10

Having multiple layers of management is the best way to ensure that a startup is flexible and quick to react to changes.

Accepted Answer

A) True 
 B)False

Question 11

The majority of entrepreneurs' business ideas come from area outside of their present line of employment or experience.

Accepted Answer

A) True 
 B)False

Question 12

The two types of startup capital are debt and equity.

Accepted Answer

A) True 
 B)False

Question 13

To determine the amount of capital that your company needs, crucial resources must be assessed first.

Accepted Answer

A) True 
 B)False

Question 14

Secrecy about one's idea is more likely to hurt the development of the business than help it.

Accepted Answer

A) True 
 B)False

Question 15

Approximately 50% of Inc. 500 companies make a net profit margin of …

Accepted Answer

A)   16% or more
B)   15%
C)   5% or less
D)   13%

Question 16

One difference between having an idea vs. an opportunity is the ability to list potential customers by name.

Accepted Answer

A) True 
 B)False

Question 17

The most costly expense that seed-stage biotechnology companies face in their early years is the initial expenditure on manufacturing equipment.

Accepted Answer

A) True 
 B)False

Question 18

In entrepreneurship, luck is where ______________ and opportunity meet.

Accepted Answer

A)   Intelligence
B)   Fortune
C)   Strategy
D)   Focus
E)   Preparation

Question 19

Anyone who wishes to pursue an entrepreneurial venture would be wise to take at least three of the widely distributed entrepreneur-attribute tests beforehand.

Accepted Answer

A) True 
 B)False

Question 20

A majority of the businesses started each year will eventually go bankrupt.

Accepted Answer

A) True 
 B)False

Exam 2: The Entrepreneurial Process

Entrepreneurship reduces the overall health of an economy by destroying jobs in traditional industries. (not in this chapter)

Generally speaking, entrepreneurs have a stronger need to be in control of their own fate.

Marginal cost is a term that refers to expenses that are difficult to justify in an entrepreneurial environment.

On average, US companies make about 11% net income.

What ratio best reflects the number of companies that begin with venture capital in hand?

Often start-ups can reduce overhead by using outside firms for…

When determining how to allocate scarce resources, an entrepreneur should:

Which of the following is not a critical component for a successful new business?

Which of the following would be the best explanation for the lack of minority owned businesses in the United States?

Having multiple layers of management is the best way to ensure that a startup is flexible and quick to react to changes.

The majority of entrepreneurs' business ideas come from area outside of their present line of employment or experience.

The two types of startup capital are debt and equity.

To determine the amount of capital that your company needs, crucial resources must be assessed first.

Secrecy about one's idea is more likely to hurt the development of the business than help it.

Approximately 50% of Inc. 500 companies make a net profit margin of …

One difference between having an idea vs. an opportunity is the ability to list potential customers by name.

The most costly expense that seed-stage biotechnology companies face in their early years is the initial expenditure on manufacturing equipment.

In entrepreneurship, luck is where ______________ and opportunity meet.

Anyone who wishes to pursue an entrepreneurial venture would be wise to take at least three of the widely distributed entrepreneur-attribute tests beforehand.

A majority of the businesses started each year will eventually go bankrupt.