ENT-2113 Set Exam Tested
Questions & Reviewed Correct
Detailed Answers With Rationales
New Update Study Material!!
1. Which of the following is a difference between large organizations and
entrepreneurial businesses?
A. Unlike entrepreneurial businesses, large organizations have a better
understanding of the local community in which they conduct business.
B. Unlike entrepreneurial businesses, large organizations will regularly ignore
business opportunities if they fail to believe the results will generate high profits.
C. Unlike large organizations, entrepreneurial businesses do things more
efficiently because they are easily able to achieve economies of scale.
D. Unlike large organizations, entrepreneurial businesses are burdened by
policies, procedures, corporate layers of management, and public stockholders. -
ANSWER B. Unlike entrepreneurial businesses, large organizations will
regularly ignore business opportunities if they fail to believe the results will
generate high profits.
2. Identify a true statement about entrepreneurial firms.
A. Such businesses tend to develop operations in multiple locations very shortly
after the initial investment.
B. Such businesses generally hire an experienced president to grow the company.
,C. The number of employees in such businesses is not expected to grow to more
than 50 to 100.
D. The organizational structure in such businesses is often well-developed -
ANSWER C. The number of employees in such businesses is not expected to
grow to more than 50 to 100.
3. Which one of the following is a huge advantage for small business owners to
start a business?
. benefit the stakeholders
. desire to work for others
. desire to be efficient and productive
. desire to be one's own boss - ANSWER desire to be one's own boss
4. Family members are in a unique position to keep an individual focused on
pursuing the wrong approach to an issue. T/F - ANSWER False
. Family members are in a unique position to provide you with key insights when
you may be pursuing the wrong approach to an issue.
5. A Myers-Briggs test analyzes four pairs of variables to indicate the different
ways in which individuals deal with other people and their environment. T/F -
ANSWER True
6. Business incubators work best with small manufacturing-based firms. T/F -
ANSWER True
Business incubators work best with office-based service firms, scientific-based
firms requiring lab space, or small, clean manufacturing firms.
,8. According to the agency theory, a manager at a large firm is more likely to
exploit organizational resources for his or her own benefit than the owner of a
small firm. T/F - ANSWER True
According to the agency theory, a manager at a large firm is more likely to exploit
organizational resources for his or her own benefit than the owner of a small firm.
The theory argues that individuals act to maximize their own benefit.
9. Two triggers for staring a new business are talking to successful entrepreneurs
and being laid off from your job. T/F - ANSWER True
Being laid off from established employment and being spurred to action by
attending a seminar, reading a book, or talking with successful entrepreneurs are
triggers for starting a business.
10. Which of the following is not a personal motivation for an individual to start a
business?
A. willing to make career-changing moves
B. being proactive
C. feeling driven to achieve goals
D. taking a defensive position - ANSWER D. taking a defensive position
11. ________ states that individuals make decisions that maximize their own
individual benefits.
A. Agency theory
B. Self-fulfilling prophesy
C. Individual benefit theory
, D. Organizational benefit theory - ANSWER A. Agency theory
12. ________ occur(s) in large companies that have excess resources such as
equipment and employees.
A. Limited boundaries
B. Organizational slack
C. Organizational resources
D. Unlimited boundaries - ANSWER B. Organizational slack
13. When should a new business owner ensure there are sufficient financial
resources to operate the business?
A. after six-month review
B. opening day
C. first payroll
D. prior to the start - ANSWER D. prior to the start
t is simply good business practice to ensure that sufficient financial resources are
available prior to the start of that business.
14. The Small Business Administration has set up which of these to advise
individuals wanting to start a new business?
A. Minority Enterprise Development Program
B. Service Corps of Retired Executives
C. Small Business Assistance Centers
D. Community Incubator Program - ANSWER C. Small Business Assistance
Centers
Questions & Reviewed Correct
Detailed Answers With Rationales
New Update Study Material!!
1. Which of the following is a difference between large organizations and
entrepreneurial businesses?
A. Unlike entrepreneurial businesses, large organizations have a better
understanding of the local community in which they conduct business.
B. Unlike entrepreneurial businesses, large organizations will regularly ignore
business opportunities if they fail to believe the results will generate high profits.
C. Unlike large organizations, entrepreneurial businesses do things more
efficiently because they are easily able to achieve economies of scale.
D. Unlike large organizations, entrepreneurial businesses are burdened by
policies, procedures, corporate layers of management, and public stockholders. -
ANSWER B. Unlike entrepreneurial businesses, large organizations will
regularly ignore business opportunities if they fail to believe the results will
generate high profits.
2. Identify a true statement about entrepreneurial firms.
A. Such businesses tend to develop operations in multiple locations very shortly
after the initial investment.
B. Such businesses generally hire an experienced president to grow the company.
,C. The number of employees in such businesses is not expected to grow to more
than 50 to 100.
D. The organizational structure in such businesses is often well-developed -
ANSWER C. The number of employees in such businesses is not expected to
grow to more than 50 to 100.
3. Which one of the following is a huge advantage for small business owners to
start a business?
. benefit the stakeholders
. desire to work for others
. desire to be efficient and productive
. desire to be one's own boss - ANSWER desire to be one's own boss
4. Family members are in a unique position to keep an individual focused on
pursuing the wrong approach to an issue. T/F - ANSWER False
. Family members are in a unique position to provide you with key insights when
you may be pursuing the wrong approach to an issue.
5. A Myers-Briggs test analyzes four pairs of variables to indicate the different
ways in which individuals deal with other people and their environment. T/F -
ANSWER True
6. Business incubators work best with small manufacturing-based firms. T/F -
ANSWER True
Business incubators work best with office-based service firms, scientific-based
firms requiring lab space, or small, clean manufacturing firms.
,8. According to the agency theory, a manager at a large firm is more likely to
exploit organizational resources for his or her own benefit than the owner of a
small firm. T/F - ANSWER True
According to the agency theory, a manager at a large firm is more likely to exploit
organizational resources for his or her own benefit than the owner of a small firm.
The theory argues that individuals act to maximize their own benefit.
9. Two triggers for staring a new business are talking to successful entrepreneurs
and being laid off from your job. T/F - ANSWER True
Being laid off from established employment and being spurred to action by
attending a seminar, reading a book, or talking with successful entrepreneurs are
triggers for starting a business.
10. Which of the following is not a personal motivation for an individual to start a
business?
A. willing to make career-changing moves
B. being proactive
C. feeling driven to achieve goals
D. taking a defensive position - ANSWER D. taking a defensive position
11. ________ states that individuals make decisions that maximize their own
individual benefits.
A. Agency theory
B. Self-fulfilling prophesy
C. Individual benefit theory
, D. Organizational benefit theory - ANSWER A. Agency theory
12. ________ occur(s) in large companies that have excess resources such as
equipment and employees.
A. Limited boundaries
B. Organizational slack
C. Organizational resources
D. Unlimited boundaries - ANSWER B. Organizational slack
13. When should a new business owner ensure there are sufficient financial
resources to operate the business?
A. after six-month review
B. opening day
C. first payroll
D. prior to the start - ANSWER D. prior to the start
t is simply good business practice to ensure that sufficient financial resources are
available prior to the start of that business.
14. The Small Business Administration has set up which of these to advise
individuals wanting to start a new business?
A. Minority Enterprise Development Program
B. Service Corps of Retired Executives
C. Small Business Assistance Centers
D. Community Incubator Program - ANSWER C. Small Business Assistance
Centers
