Question 1

Social capital refers to being part of a social network and having a good reputation.

Accepted Answer

A) True 
 B)False  True

Question 2

Guaranteeing a project's technical and political feasibility, often with a formal presentation to higher management, refers to which of the following stages for building support for an idea?

Accepted Answer

A)   making cheerleaders
B)   bootlegging
C)   horse trading
D)   clearing the investment
E)   getting the blessingF) A) and C)
G) D) and E)

Question 3

Which of the following is a benefit of business incubators?

Accepted Answer

A)   information silo
B)   high security
C)   provision of venture capital
D)   access to shared services
E)   guaranteed profitabilityF) A) and D)
G) All of the above

Question 4

What is the role of the economic environment in the success of entrepreneurial ventures?

Accepted Answer

A)   Increases in the money supply and the supply of bank loans lead to improved prospects and increased sources of capital.
B)   Entrepreneurial success is not affected by the economic environment; a good idea will prevail in all external conditions.
C)   Entrepreneurial success is affected only by the talent and behavior of individuals, not by the economic environment.
D)   Downturns in the economic environment offer no opportunity for entrepreneurial success.
E)   A robust economy and the resulting increase in credit and demand boost the rate of new business formation, but a troubled economy has little effect on new ventures.F) None of the above
G) C) and D)

Question 5

Compare and contrast entrepreneurs and intrapreneurs.

Accepted Answer

Independent entrepreneurs are individual...

Question 6

Observers say that in contemplating one's business, one must start with

Accepted Answer

A)   a great idea.
B)   financial capital.
C)   a good location.
D)   family support.
E)   investors.F) All of the above
G) A) and B)

Question 7

______ is an entrepreneurial alliance between an innovator who has created at least one successful store and wants to grow and a partner who manages a new store of the same type in a new location.

Accepted Answer

A)   Franchising
B)   An initial public offering
C)   Bootlegging
D)   The subscription model
E)   The affiliate modelF) C) and D)
G) B) and C)

Question 8

Holmes Clinic is an example of a business that was created as a result of

Accepted Answer

A)   technological discoveries.
B)   demographic changes.
C)   economic dislocations.
D)   calamities.
E)   government initiatives and rule changes.F) All of the above
G) D) and E) B

Question 9

When you can offer promises of payoffs from the project in return for support, time, money, and other resources that peers and others contribute, you are participating in

Accepted Answer

A)   clearing the investment.
B)   horse trading.
C)   making cheerleaders.
D)   getting the blessing.
E)   persistence and logic.F) C) and D)
G) A) and B)

Question 10

All of the following steps are needed to build support for a project except

Accepted Answer

A)   horse trading.
B)   making cheerleaders.
C)   clearing the investment.
D)   innovativeness.
E)   getting a blessing.F) C) and D)
G) All of the above

Question 11

Enrique decides to embark on an entrepreneurial venture. He is cautious because the risk is high and his idea is fairly common. Which of the following might he choose?

Accepted Answer

A)   the first old age home in a region with a predominantly aging population
B)   a business selling a vaccine to combat zika
C)   the only gas station in town
D)   a Mexican restaurant serving street tacos and fajitas
E)   a business selling high-speed InternetF) A) and B)
G) D) and E)

Question 12

CEOs play a crucial role in promoting entrepreneurship within large corporations.

Accepted Answer

A) True 
 B)False

Question 13

In order for family-managed businesses to survive and prosper, management guru Peter Drucker advised them to

Accepted Answer

A)   refrain from having someone outside the family help plan succession.
B)   discontinue hiring outsiders as they are more objective.
C)   fill at least one key position with a nonfamily member.
D)   offer initial public stock offerings as soon as possible.
E)   tolerate mediocre performance by family members.F) A) and B)
G) A) and C)

Question 14

_____ involves creating new systems, resources, or processes to produce new goods or services and/or serve new markets.

Accepted Answer

A)   Advertising
B)   Micropayment
C)   Entrepreneurship
D)   Profiteering
E)   TransportingF) C) and E)
G) A) and E)

Question 15

What is the role of business incubators?

Accepted Answer

A)   They provide new and small businesses with information silos.
B)   They protect consumers from fraud.
C)   They provide enhanced wellness benefits to employees of large businesses.
D)   They provide a protected environment for new and small businesses.
E)   They provide opportunities for exponential growth without competition.F) A) and B)
G) C) and D)

Question 16

Montgomery Donuts has made the decision to sell shares of stock publicly. This is called

Accepted Answer

A)   futures exchange.
B)   add-on sale.
C)   initial public offering.
D)   trade sale.
E)   profit sharing.F) D) and E)
G) None of the above

Question 17

Orson Inc., an entrepreneurial venture, does not have any distinctive services when compared with the well-established competitors in the same field, and the business will require a sizable investment. In which quadrant of the entrepreneurial strategy matrix will the venture be placed?

Accepted Answer

A)   high innovation/low risk
B)   high innovation/high risk
C)   low innovation/low risk
D)   low innovation/high risk
E)   medium innovation/low riskF) A) and E)
G) B) and D)

Question 18

An organization that resists entrepreneurial initiative

Accepted Answer

A)   faces the risk of overrelying on a single project.
B)   may lose its ability to adapt when conditions dictate change.
C)   spreads intrapreneurial efforts over many small scale projects.
D)   represents the process of changing the status quo.
E)   may fail while awaiting the completion of one large, innovative project.F) A) and E)
G) B) and E)

Question 19

Edgar was a manager at a company that produced household appliances. He had many innovative ideas to increase profits. However, his ideas were not received well by the company. So, he left the company to pursue his own business. His new business is known as an)

Accepted Answer

A)   entrepreneurial venture.
B)   spin-off.
C)   franchise
D)   merger
E)   angel investment.F) All of the above
G) B) and E)

Question 20

An)  _____ is a new business having growth and high profitability as primary objectives.

Accepted Answer

A)   angel-funded-start-up
B)   junior enterprise
C)   merger
D)   entrepreneurial venture
E)   greenfield ventureF) D) and E)
G) A) and B) D

Exam 6: Entrepreneurship

Social capital refers to being part of a social network and having a good reputation.

Correct AnswerverifiedTrue

Guaranteeing a project's technical and political feasibility, often with a formal presentation to higher management, refers to which of the following stages for building support for an idea?

Correct AnswerverifiedShow Answer

Which of the following is a benefit of business incubators?

Correct AnswerverifiedShow Answer

What is the role of the economic environment in the success of entrepreneurial ventures?

Correct AnswerverifiedShow Answer

Compare and contrast entrepreneurs and intrapreneurs.

Correct AnswerverifiedIndependent entrepreneurs are individual...View AnswerShow Answer

Observers say that in contemplating one's business, one must start with

Correct AnswerverifiedShow Answer

______ is an entrepreneurial alliance between an innovator who has created at least one successful store and wants to grow and a partner who manages a new store of the same type in a new location.

Correct AnswerverifiedShow Answer

Holmes Clinic is an example of a business that was created as a result of

Correct AnswerverifiedB

When you can offer promises of payoffs from the project in return for support, time, money, and other resources that peers and others contribute, you are participating in

Correct AnswerverifiedShow Answer

All of the following steps are needed to build support for a project except

Correct AnswerverifiedShow Answer

Enrique decides to embark on an entrepreneurial venture. He is cautious because the risk is high and his idea is fairly common. Which of the following might he choose?

Correct AnswerverifiedShow Answer

CEOs play a crucial role in promoting entrepreneurship within large corporations.

Correct AnswerverifiedShow Answer

In order for family-managed businesses to survive and prosper, management guru Peter Drucker advised them to

Correct AnswerverifiedShow Answer

_____ involves creating new systems, resources, or processes to produce new goods or services and/or serve new markets.

Correct AnswerverifiedShow Answer

What is the role of business incubators?

Correct AnswerverifiedShow Answer

Montgomery Donuts has made the decision to sell shares of stock publicly. This is called

Correct AnswerverifiedShow Answer

Orson Inc., an entrepreneurial venture, does not have any distinctive services when compared with the well-established competitors in the same field, and the business will require a sizable investment. In which quadrant of the entrepreneurial strategy matrix will the venture be placed?

Correct AnswerverifiedShow Answer

An organization that resists entrepreneurial initiative

Correct AnswerverifiedShow Answer

Edgar was a manager at a company that produced household appliances. He had many innovative ideas to increase profits. However, his ideas were not received well by the company. So, he left the company to pursue his own business. His new business is known as an)

Correct AnswerverifiedShow Answer

An) _____ is a new business having growth and high profitability as primary objectives.

Correct AnswerverifiedD

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Independent entrepreneurs are individual...
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