Question 1

In a business plan outline, the operations description contains the:

Accepted Answer

A)  description of cash flow projections for one to five years, breakeven points, and phased investment capital. 
B)  details of the product characteristics, distribution, promotion, pricing, and market research. 
C)  manufacturing or service methods, supplies and suppliers, and control procedures used. 
D)  description of the management and staffing skills needed and available, compensation, and human resource systems. 
E)  overview of the business purpose and the business model for making money.

Question 2

Write a short note on the attitudes and personal interests of entrepreneurs.

Accepted Answer

The answer of Write a short note on the attitudes...

Question 3

Which of the following best describes lack of commitment?

Accepted Answer

A)  Not having enough funding to maintain operations while still building the business and gaining access to customers and markets 
B)  Not having sufficient know-how to run a business in the chosen market or geographical area 
C)  Not having expertise in the essentials of business operations, including finance, purchasing, selling, and production 
D)  Falling prey to the temptations of fraud, deception, and embezzlement 
E)  Not devoting enough time to the requirements of running a competitive business

Question 4

Wendy, a single parent of two boys, has started a small bakery in her house. She cannot work away from home because her children are very young. Which of the following kinds of entrepreneurship is this an example of?

Accepted Answer

A)  Serial entrepreneurship 
B)  Necessity-based entrepreneurship 
C)  Intrapreneurship 
D)  Internet entrepreneurship 
E)  Social entrepreneurship

Question 5

_____ entrepreneurship is a unique form of ethical entrepreneurship that seeks novel ways to solve pressing social problems.

Accepted Answer

The answer of _____ entrepreneurship is a unique form of...

Question 6

A(n) ____ proprietorship is an individual pursuing business for a profit.

Accepted Answer

The answer of A(n) ____ proprietorship is an individual pursuing...

Question 7

Stating that the failure of a small business was due to "growing too fast" implies:

Accepted Answer

A)  not having expertise in the essentials of business operations, including finance, purchasing, selling, and production. 
B)  not avoiding the temptations of fraud, deception, and embezzlement. 
C)  not keeping track of the numbers, and failure to control business finances and use existing monies to best advantage. 
D)  not taking the time to consolidate a position, fine-tune the organization, and systematically meet the challenges of growth. 
E)  not having sufficient know-how to run a business in the chosen market or geographical area.

Question 8

Social entrepreneurs:

Accepted Answer

A)  take risks and create enterprises whose missions is to help make lives better for underserved populations. 
B)  bring buyers and sellers together for online business transactions and take a percentage from the sales. 
C)  are wealthy individuals willing to invest in a new venture in return for an equity stake. 
D)  pursue innovations that can change the organization in significant ways. 
E)  start new ventures because they have few or no other employment and career options.

Question 9

When shares of stock are first sold to the public and begin trading on a stock exchange, it is referred to as _____.

Accepted Answer

A)  venture capitalism 
B)  equity financing 
C)  angel investing 
D)  an initial public offering 
E)  crowdfunding

Question 10

A limited liability corporation combines the advantages of sole proprietorship, partnership, and corporation.

Accepted Answer

A) True 
 B)False

Question 11

Arthur, a young college graduate, started a store for traditional musical instruments. He liked working independently and without being directed by others. He believed that his destiny is under his own control. Which of the following personality traits of an entrepreneur is exhibited by Arthur?

Accepted Answer

A)  Internal locus of control 
B)  High energy level 
C)  High need for achievement 
D)  Tolerance for ambiguity 
E)  Flexibility

Question 12

A succession plan describes the direction for a new business and the financing needed to operate it.

Accepted Answer

A) True 
 B)False

Question 13

You need to telecommute (work from home) but cannot find a suitable telecommuting position with an existing company. You start your own business that you run from your home. You are what kind of entrepreneur?

Accepted Answer

A)  Ethical 
B)  Necessity-based 
C)  Serial 
D)  Social

Question 14

A business model is a:

Accepted Answer

A)  plan that describes the organizational structure of the company. 
B)  plan for making a profit by generating revenues that are greater than costs. 
C)  plan to determine the strengths and viability of a company's organizational structure. 
D)  model that depicts the detail of an organization's workflow. 
E)  model that lists the details of all the employees of an organization.

Question 15

Entrepreneurs need different leadership skills in the life cycle stages of entrepreneurial companies.

Accepted Answer

A) True 
 B)False

Question 16

Describe equity financing.

Accepted Answer

The answer of Describe equity financing....

Question 17

A sole proprietorship is simple to start, run, and terminate.

Accepted Answer

A) True 
 B)False

Question 18

What is a corporation? What advantages does a corporate form offer?

Accepted Answer

The answer of What is a corporation? What advantages does...

Question 19

In a business plan, the executive summary contains the mission of the company, the details of the owners, and the legal form of the organization.

Accepted Answer

A) True 
 B)False

Question 20

"Sheng's Designs" is an architectural firm owned by four investors but Sheng is the only one who handles the day-to-day business management of the firm. They share their profits, but their losses are restricted to the amount invested by each. This is an example of a _____.

Accepted Answer

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

Exam 6: Entrepreneurship and New Ventures

In a business plan outline, the operations description contains the:

Write a short note on the attitudes and personal interests of entrepreneurs.

Which of the following best describes lack of commitment?

Wendy, a single parent of two boys, has started a small bakery in her house. She cannot work away from home because her children are very young. Which of the following kinds of entrepreneurship is this an example of?

_____ entrepreneurship is a unique form of ethical entrepreneurship that seeks novel ways to solve pressing social problems.

A(n) ____ proprietorship is an individual pursuing business for a profit.

Stating that the failure of a small business was due to "growing too fast" implies:

Social entrepreneurs:

When shares of stock are first sold to the public and begin trading on a stock exchange, it is referred to as _____.

A limited liability corporation combines the advantages of sole proprietorship, partnership, and corporation.

Arthur, a young college graduate, started a store for traditional musical instruments. He liked working independently and without being directed by others. He believed that his destiny is under his own control. Which of the following personality traits of an entrepreneur is exhibited by Arthur?

A succession plan describes the direction for a new business and the financing needed to operate it.

You need to telecommute (work from home) but cannot find a suitable telecommuting position with an existing company. You start your own business that you run from your home. You are what kind of entrepreneur?

A business model is a:

Entrepreneurs need different leadership skills in the life cycle stages of entrepreneurial companies.

Describe equity financing.

A sole proprietorship is simple to start, run, and terminate.

What is a corporation? What advantages does a corporate form offer?

In a business plan, the executive summary contains the mission of the company, the details of the owners, and the legal form of the organization.

"Sheng's Designs" is an architectural firm owned by four investors but Sheng is the only one who handles the day-to-day business management of the firm. They share their profits, but their losses are restricted to the amount invested by each. This is an example of a _____.