Question 1

How can downturns be managed successfully?

Accepted Answer

The first step is to recognize that the business is in or heading for trouble. An entrepreneur should be alert to the warning signs of a business in trouble. These signals include inadequate or negative cash flow, excess number of employees, unnecessary and cumbersome administrative procedures, fear of conflict and taking risks, tolerance of work incompetence, lack of a clear mission or goals, and ineffective or poor communication within the organization. While entrepreneurs may be able to recognize crises, they may be less able to recognize a slowly deteriorating situation.
Next, the entrepreneur should have a plan in place to deal with a business in trouble-before it happens, much like mapping exits from a burning home before the fire starts. The plan should focus on providing specific details for controlling the most fundamental and critical aspects of running the venture-cash flow, accounts receivable, costs, and debt. Other actions would involve identifying specific strategies for cutting costs and restructuring the venture.

Question 2

Recognizing the increase in birth rates since 1946, and disliking the task of changing his grandchildren's diapers, Victor Mills began developing a disposable diaper. Pampers were introduced to consumers in 1961. Mills saw opportunity in ________.

Accepted Answer

A)   changes in demographics
B)   changes in perceptions
C)   new knowledge
D)   the incongruous A

Question 3

As a company grows, an informal, loose, and flexible atmosphere may not work well.

Accepted Answer

A) True 
 B)False  True

Question 4

In a general partnership, all partners assume full responsibility for all debts of the business.

Accepted Answer

A) True 
 B)False

Question 5

Ned has built his entrepreneurial venture into a successful business. Part of his original plan was to build the business then sell it to another company that could take it to the next level of success. In other words, Ned intends to ________ his business.

Accepted Answer

A)   harvest
B)   reap
C)   relinquish
D)   co-opt

Question 6

Arthur has an idea. After performing a SWOT, he has identified a market that is not being served so he is planning to start a new business and introduce a new product. Arthur is a(n) ________.

Accepted Answer

A)   strategist
B)   dreamer
C)   entrepreneur
D)   independent business developer

Question 7

Among the more important pre-launch activities the entrepreneur must perform is the creation of a business plan.

Accepted Answer

A) True 
 B)False

Question 8

"Put a motor on a bicycle? You must be crazy!" Yet that is exactly what William Harley and Walter Davidson did. These two founders of the best-known American motorcycle company saw opportunity in ________.

Accepted Answer

A)   the incongruous
B)   the unexpected
C)   demographics
D)   changes in perception

Question 9

Employee empowerment is an important motivational tool for entrepreneurs to use.

Accepted Answer

A) True 
 B)False

Question 10

Which one of the many personality traits of entrepreneurs appeared on two separate lists?

Accepted Answer

A)   abundance of self-confidence
B)   high energy level
C)   persistent problem solver
D)   moderate risk taker

Question 11

Ignacio knows he cannot pay what the "big boys" pay, so he decides instead to emphasize the ________ his company offers.

Accepted Answer

A)   health insurance benefits
B)   retirement savings plan
C)   learning opportunities and recognition
D)   performance incentives

Question 12

Explain why it is difficult for a young business to recruit and retain employees.

Accepted Answer

The answer of Explain why it is difficult for a...

Question 13

Innovation is a key aspect of entrepreneurship.

Accepted Answer

A) True 
 B)False

Question 14

Juanita gathers her employees to solicit their opinions regarding big issues facing the young business. After considering their input, Juanita makes the final decision. Juanita is engaging in ________.

Accepted Answer

A)   employee empowerment
B)   democratic management
C)   participative management
D)   autocratic management

Question 15

Lucien has just received an offer from a major retailer wanting to carry his products. But Lucien doesn't have enough production capacity to keep up with their demand. A question common to entrepreneurs in his situation is "________"

Accepted Answer

A)   Will my board of directors be supportive of this opportunity?
B)   Will my existing customers be hurt if I accept this offer?
C)   What are my competitors doing?
D)   Where can I get the money I need for expansion?

Question 16

Rob is a CPA who works out of an office in his home. His business is named "Friendly Accounting Services." Eventually Rob would like to grow his business to include partners and bookkeepers. We would classify Rob as ________.

Accepted Answer

A)   self-employed
B)   an entrepreneur
C)   an employee
D)   a franchisee

Question 17

Karl and his top managers set goals for the organization, then each department sets supporting goals with their employees, who then set their personal performance goals. These non-managerial employees are allowed to pursue their goals, within certain guidelines, using their best judgement, knowledge, and skills. These employees are ________.

Accepted Answer

A)   called delegates
B)   fully empowered
C)   being taken advantage of
D)   knowledge workers

Question 18

The executive summary of a business plan is constructed to remind the executive of his plan for the new business

Accepted Answer

A) True 
 B)False

Question 19

To demonstrate social responsibility, entrepreneurs are encouraged to ________.

Accepted Answer

A)   consider community goals in their business plans
B)   use recycled materials in their production processes
C)   participate in community organizations such as Kiwanis and Rotary
D)   sponsor youth sports teams

Question 20

In 1938 Dr. Roy Plunkett discovered that a certain material became very slippery when frozen, and PTFE was invented. Under the brand Teflon, PTFE coatings were applied to a wide variety of items from spacecraft to frying pans. DuPont was able to capitalize on ________.

Accepted Answer

A)   the incongruous
B)   the unexpected
C)   new knowledge
D)   process needs

Exam 10: Fostering Entrepreneurship

How can downturns be managed successfully?

Recognizing the increase in birth rates since 1946, and disliking the task of changing his grandchildren's diapers, Victor Mills began developing a disposable diaper. Pampers were introduced to consumers in 1961. Mills saw opportunity in ________.

As a company grows, an informal, loose, and flexible atmosphere may not work well.

In a general partnership, all partners assume full responsibility for all debts of the business.

Ned has built his entrepreneurial venture into a successful business. Part of his original plan was to build the business then sell it to another company that could take it to the next level of success. In other words, Ned intends to ________ his business.

Arthur has an idea. After performing a SWOT, he has identified a market that is not being served so he is planning to start a new business and introduce a new product. Arthur is a(n) ________.

Among the more important pre-launch activities the entrepreneur must perform is the creation of a business plan.

"Put a motor on a bicycle? You must be crazy!" Yet that is exactly what William Harley and Walter Davidson did. These two founders of the best-known American motorcycle company saw opportunity in ________.

Employee empowerment is an important motivational tool for entrepreneurs to use.

Which one of the many personality traits of entrepreneurs appeared on two separate lists?

Ignacio knows he cannot pay what the "big boys" pay, so he decides instead to emphasize the ________ his company offers.

Explain why it is difficult for a young business to recruit and retain employees.

Innovation is a key aspect of entrepreneurship.

Juanita gathers her employees to solicit their opinions regarding big issues facing the young business. After considering their input, Juanita makes the final decision. Juanita is engaging in ________.

Lucien has just received an offer from a major retailer wanting to carry his products. But Lucien doesn't have enough production capacity to keep up with their demand. A question common to entrepreneurs in his situation is "________"

Rob is a CPA who works out of an office in his home. His business is named "Friendly Accounting Services." Eventually Rob would like to grow his business to include partners and bookkeepers. We would classify Rob as ________.

The executive summary of a business plan is constructed to remind the executive of his plan for the new business

To demonstrate social responsibility, entrepreneurs are encouraged to ________.

In 1938 Dr. Roy Plunkett discovered that a certain material became very slippery when frozen, and PTFE was invented. Under the brand Teflon, PTFE coatings were applied to a wide variety of items from spacecraft to frying pans. DuPont was able to capitalize on ________.