Entrepreneurship

Question 1

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 is called:

franchising.
an intrapreneurial venture.
outsourcing.
conglomerate diversification.
bootlegging.

Answer 1

franchising.

Question 2

A(n) _____ differs from an entrepreneurial venture in that it is not managed aggressively, and its owners expect normal, moderate levels of
sales, profits, and growth.

intrapreneurial team
small business
speculative venture
Internet start-up
global venture

Answer 2

small business

Question 3

When an enterprising individual pursues a lucrative opportunity, it is known as:

entrepreneurship.
franchising.
bootlegging.
speculation.
horse trading.

Answer 3

entrepreneurship.

Question 4

Which of the following is a formal planning step that focuses on an entire venture and describes all the elements involved in starting it?

An organizational assessment
An opportunity analysis
A contingency plan
A venture capital agreement
A business plan

Answer 4

A business plan

Question 5

One of the five key factors that entrepreneurs are required to have thought through is _____.

place
packaging
policy
promotion
people

Answer 5

people

Question 6

Legitimacy increases the probability of success of a new business by:

• helping to revise rules and expectations of society.
• helping a firm acquire resources such as top managers and good employees.
• eliminating risk from the business plan.
• weakening the competition and its ability to operate in the future.
• reducing the number of resources necessary to start the firm, such as office space, loans, and supplies.

Answer 6

helping a firm acquire resources such as top managers and good employees.

Question 7

The primary objective of an entrepreneurial venture is to:

increase the social capital.
reduce the amount of dividends paid.
provide non-profit services.
acquire growth and high profitability.
create a long term relationship with an investment banking firm.

Answer 7

acquire growth and high profitability.

Question 8

Which of the following models brings buyers and sellers together and charges a commission for each sale?

The intermediary model
The conglomerate model
The subscription model
The affiliate model
The transaction fee model

Answer 8

The intermediary model

Question 9

Which of the following provides a way to raise capital through federally registered and underwritten sales of shares in the company?

Commodity sale
Future stock sale
Initial public offering
Stock option
First bond option

Answer 9

Initial public offering

Question 10

Intrapreneurs are otherwise known as:

knowledge workers.
corporate entrepreneurs.
bootleggers.
social entrepreneurs.
horse traders.

Answer 10

corporate entrepreneurs.

Question 11

Which of the following is true of the role of the economic environment in the success of entrepreneurial ventures?

• The economic environment affects the success of entrepreneurial ventures by affecting the supply of capital and prospective opportunities.
• Downturns in the economic environment offer no opportunity for entrepreneurial success.
• A robust economy and the resulting conditions in credit and demand increase the rate of new business formation, but a troubled
  economy has no effect on new ventures.
• Entrepreneurial success is affected only by the talent and behavior of individuals, not by the economic environment.
• Entrepreneurial success is not affected by the economic environment as a good idea will prevail in all external conditions.

Answer 11

The economic environment affects the success of entrepreneurial ventures by affecting the supply of capital and prospective opportunities.

Question 12

A competitive advantage in the form of relationships an entrepreneur has with other people and the image other people have of the
entrepreneur is known as:

legitimacy.
corporate advantage.
social capital.
groupthink.
emotional intelligence.

Answer 12

social capital.

Question 13

Which of the following refers to project teams designated to produce a new product?

Bootleggers
Skunkworks
Horse traders
Social entrepreneurs
Knowledge workers

Answer 13

Skunkworks

Question 14

A(n) _____ is a formal planning step that focuses on an entire venture and describes all the elements involved in starting it.

operational plan
opportunity analysis
business plan
strategic plan
trend analysis

Answer 14

business plan

Question 15

Which of the following is the fundamental reason for creating an opportunity analysis?

• To excite potential customers
• To analyze whether or not to proceed
• To work out the details of marketing, finance, and manufacturing
• To obtain financing
• To negotiate agreements with suppliers

Answer 15

To analyze whether or not to proceed

Question 16

Which of the following is a key difference between an entrepreneur and an intrapreneur?

• An entrepreneur receives no corporate support, whereas an intrapreneur has the benefit of corporate support.
• An entrepreneur has more knowledge of business, whereas an intrapreneur lacks business knowledge.
• An entrepreneur has less knowledge of business, whereas an intrapreneur is more knowledgeable.
• An entrepreneur works longer and harder, whereas an intrapreneur is laid back and easy going.
• An entrepreneur makes use of corporate resources, whereas an intrapreneur does not.

Answer 16

An entrepreneur receives no corporate support, whereas an intrapreneur has the benefit of corporate support.

Question 17

Which of the following refers to the tendency of an organization to engage in activities designed to identify and capitalize successfully on
opportunities to launch new ventures by entering new or established markets with new or existing goods or services?

Bootlegging
Horse trading
Strategic concentration
Entrepreneurial orientation
Vertical integration

Answer 17

Entrepreneurial orientation

Question 18

Which of the following entrepreneurial businesses is an example of high innovation and high risk?

A new restaurant
An online retail shop
A new hardware store
A new dog-walking service
A new drug

Answer 18

A new drug

Question 19

The role of a business incubator is to:

• provide a protected environment for new, small businesses.
• provide large business employees enhanced wellness benefits.
• provide new, small businesses access to competition.
• protect consumers from fraud.
• provide opportunities for exponential growth without competition.

Answer 19

provide a protected environment for new, small businesses.

Question 20

Which of the following key planning elements should provide a competitive advantage that can be defended?

Competition
People
Context
Opportunity
Risk and reward

Answer 20

Opportunity