ENT 2113 Set Exam Tested
Questions & Reviewed Correct
Detailed Answers
New Update Study Material!!
1. The break-even point is defined as
a. the time when a business must liquidate its holdings and declare bankruptcy
b. the level where a firm starts to profit from the revenue it makes from its
products
c. the level where revenue coming into the firm is sufficient to cover expenses
d. the time when a firm experiences steady losses during its initial stages of
operation - ANSWER c. the level where revenue coming into the firm is
sufficient to cover expenses
2. In general, the greater the debt a business owner is willing to take on, the
________ the risk tolerance.
a. higher
b. more predictable
c. lower
d. less predictable - ANSWER a. higher
3. Established businesses are often ________ to buy from a start-up small
business.
a. determined
,b. quick
c. hesitant
d. sure - ANSWER c. hesitant
4. What does a potential entrepreneur need to consider when starting a new
business?
a. prior experience
b. risk tolerance
c. personality orientation
d. all of these choices are correct - ANSWER d. all of these choices are correct
5. In the context of evaluating entrepreneurial orientation, which of the following
personality tests has a bias that adults will not change their personality over time
and instead hold on to the personality they develop during childhood?
a. the Big Five test
b. the Myers-Briggs test
c. the Rorschach test
d. the Enneagram test - ANSWER d. the Enneagram test
6. The potential entrepreneur needs to consider ________ when starting a new
business.
a. capital
b. education
c. rationality
d. prior experience - ANSWER d. prior experience
,7. Which of the following types of firms do business incubators work best with?
a. scientific firms
b. tobacco products
c. restaurants
d. retail stores - ANSWER a. scientific firms
8. Identify a true statement about a large firm that has organizational slack.
a. each employee is crucial to the survival of the firm
b. the firm's knowledge is concentrated around a few key personnel
c. the loss of an employee barely affects the abilities of its workforce
d. the firm enjoys extreme financial flexibility and can survive huge annual losses
if necessary - ANSWER c. the loss of an employee barely affects the abilities
of its workforce
9. Which of the following is not a personality dimension of the Big Five test?
a. individualist
b agreeableness
c. conscientiousness
d. extroversion - ANSWER a. individualist
10. Which of the following is an advantage that family businesses enjoy over
nonfamily-owned businesses?
a. Family businesses are able to respond quickly to change around them, whereas
nonfamily-owned businesses are often slow to react to changes.
, b. Family businesses have the ability to cheaply produce large numbers of a
product, whereas nonfamily-owned businesses can only produce small volumes of
a product.
c. Individuals in family businesses are often willing to work at times and in
conditions that employees in nonfamily-owned businesses would not accept.
d. Family businesses can afford to fill niches within markets that nonfamily-owned
businesses cannot afford to fill. - ANSWER c. Individuals in family businesses
are often willing to work at times and in conditions that employees in nonfamily-
owned businesses would not accept.
11. While developing a quality business idea, what should potential business
founders ideally do after evaluating their personal skill sets?
a. brainstorm for potential business ideas with family
b. interview successful entrepreneurs to generate business ideas
c. carefully analyze the market and look for a gap
d. propose a business idea to potential investors - ANSWER c. carefully
analyze the market and look for a gap
12. Potential owners should examine all of these specific areas before choosing a
business idea except
a. education
b. family history
c. work experience
d. financial history - ANSWER d. financial history
13. Which of the following can be a threat to operational financing?
a. a team with a high asset base
Questions & Reviewed Correct
Detailed Answers
New Update Study Material!!
1. The break-even point is defined as
a. the time when a business must liquidate its holdings and declare bankruptcy
b. the level where a firm starts to profit from the revenue it makes from its
products
c. the level where revenue coming into the firm is sufficient to cover expenses
d. the time when a firm experiences steady losses during its initial stages of
operation - ANSWER c. the level where revenue coming into the firm is
sufficient to cover expenses
2. In general, the greater the debt a business owner is willing to take on, the
________ the risk tolerance.
a. higher
b. more predictable
c. lower
d. less predictable - ANSWER a. higher
3. Established businesses are often ________ to buy from a start-up small
business.
a. determined
,b. quick
c. hesitant
d. sure - ANSWER c. hesitant
4. What does a potential entrepreneur need to consider when starting a new
business?
a. prior experience
b. risk tolerance
c. personality orientation
d. all of these choices are correct - ANSWER d. all of these choices are correct
5. In the context of evaluating entrepreneurial orientation, which of the following
personality tests has a bias that adults will not change their personality over time
and instead hold on to the personality they develop during childhood?
a. the Big Five test
b. the Myers-Briggs test
c. the Rorschach test
d. the Enneagram test - ANSWER d. the Enneagram test
6. The potential entrepreneur needs to consider ________ when starting a new
business.
a. capital
b. education
c. rationality
d. prior experience - ANSWER d. prior experience
,7. Which of the following types of firms do business incubators work best with?
a. scientific firms
b. tobacco products
c. restaurants
d. retail stores - ANSWER a. scientific firms
8. Identify a true statement about a large firm that has organizational slack.
a. each employee is crucial to the survival of the firm
b. the firm's knowledge is concentrated around a few key personnel
c. the loss of an employee barely affects the abilities of its workforce
d. the firm enjoys extreme financial flexibility and can survive huge annual losses
if necessary - ANSWER c. the loss of an employee barely affects the abilities
of its workforce
9. Which of the following is not a personality dimension of the Big Five test?
a. individualist
b agreeableness
c. conscientiousness
d. extroversion - ANSWER a. individualist
10. Which of the following is an advantage that family businesses enjoy over
nonfamily-owned businesses?
a. Family businesses are able to respond quickly to change around them, whereas
nonfamily-owned businesses are often slow to react to changes.
, b. Family businesses have the ability to cheaply produce large numbers of a
product, whereas nonfamily-owned businesses can only produce small volumes of
a product.
c. Individuals in family businesses are often willing to work at times and in
conditions that employees in nonfamily-owned businesses would not accept.
d. Family businesses can afford to fill niches within markets that nonfamily-owned
businesses cannot afford to fill. - ANSWER c. Individuals in family businesses
are often willing to work at times and in conditions that employees in nonfamily-
owned businesses would not accept.
11. While developing a quality business idea, what should potential business
founders ideally do after evaluating their personal skill sets?
a. brainstorm for potential business ideas with family
b. interview successful entrepreneurs to generate business ideas
c. carefully analyze the market and look for a gap
d. propose a business idea to potential investors - ANSWER c. carefully
analyze the market and look for a gap
12. Potential owners should examine all of these specific areas before choosing a
business idea except
a. education
b. family history
c. work experience
d. financial history - ANSWER d. financial history
13. Which of the following can be a threat to operational financing?
a. a team with a high asset base
