ENT 2113 FINAL QUESTIONS AND ANSWERS
_____ leads to a condition where a single firm making 100% of the product is the most
efficient - Answers :Economies of scale
In the context of a harvest plan, which of the following is the deciding metric in a
potential public offering of a business - Answers :size
Characteristics of an entrepreneurial startup include all except - Answers :having over
100 employees
Which of the following is a huge advantage for small business owners to start a
business - Answers :desire to be ones own boss
The development and implementation of a new business is part ____, and part ___ -
Answers :art, science
Harvest plan for a small business means the owner is - Answers :planning to exit a
small business
Identify a true statement about entrepreneurial firms - Answers :The number of
employees in such businesses is not expected to grow to more than 50 to 100
Which of the following is a defining characteristic of venture capital start-ups - Answers
:The businesses are well-funded by angel-investment
In the context of entrepreneurship around the world, identify a true statement about
microloans - Answers :The success of such loans have been sustain, with great strides
being made in many desperately poor nations
All of these are harvest plan strategies except - Answers :Franchising
T or F: Heather Schuck, owner of Glamajama, is an example of how women can
concentrate on more than one facet of life - Answers :true
T or F: Today many of the multinational firms in the United States are technology firms
that
began in the late 1970s and early 1980s - Answers :true
T or F: Entrepreneurial businesses have the ability to make greater profits in markets
that have been ignored by larger corporations - Answers :true
T or F: Online chat rooms are often a potential source of funding for an entrepreneurial
business - Answers :true
,T or F: The reason a business is called a family business is that the owner's family plays
a critical
role in the success of the business - Answers :true
T or F: The owner must be aware of his or her own tolerance of risk and establish a
business that is consistent with that tolerance - Answers :true
Ray a manger in Fir Tree inc a large and established firm, must rabel to attend an
annual
conference. He books the most convenient flight and a room in a luxurious hotel right
next to the venue. Ray justifies these decisions by saying they are time saving
measures. These decisions can be best explained by - Answers :agency theory
_____ states that individuals make decisions that maximize their own individual benefits
- Answers :agency theory
All of these are potential issues for an owner in a family business except - Answers :All
of these choices are correct (Reprimanding a family member, firing a family member,
promoting a family member)
Why can a small business owner make decisions quicker than a big business - Answers
:Because the decision maker is both the owner and manager of the business
In the context of the entrepreneurial orientation, the presence of ____ often leads young
people to be pioneers in an area, as they are less bound by the restrictions of the past -
Answers :bounded rationality
Which personality test indicates the different ways individuals deal with other people
and
their environments - Answers :Myers-Briggs
The Small Business Administration has set up which of these to advise individuals
wanting to start a new business - Answers :Small Business Assistance Centers
When should a new business owner ensure there are sufficient financial resources to
operate the business? - Answers :prior to the start
Anya is an entrepreneur. To understand her own strengths and weaknesses better, she
takes a personality test. The test analyzes various factors, such as wether she focuses
more on the outward world or her internal world and whether she gathers information
through observation or intuition. Based on these variables, the test shows Anya how
she tends to deal with other people and her environment. The test that Anya took is
most likely the - Answers :Myers-Briggs test
Which of the following is not a personal motivation for an individual to start a business -
Answers :taking a defensive position
, T or F: A business owner must have the necessary skills to operate a business, and he
or she must
also clearly understand the marketplace - Answers :true
T or F: A good way to generate new business ideas is to think about the things that
frustrate you or cause you problems and then identify solutions - Answers :true
T or F: In brainstorming, the true potential for each idea is often fully evaluated before
the
process moves onto generating the next one - Answers :false
Threats to ____ are threats to the success of a new business related to its ability to
establish and maintain a high-margin product or service - Answers :profit margins
_____ is used to describe the process of systematically examining the difference
between
what is expected and what occurs - Answers :GAP analysis
Which of the following is not included in the second column of the labeled categories in
a gap analysis - Answers :inventory resources
While developing a quality business idea, what should potential business founders
ideally
do after evaluating their personal skill sets - Answers :Carefully analyze the market and
look for a gap
Identify a true statement about the process of generating new business ideas - Answers
:As a business idea evolves, an entrepreneur must be willing to develop a new set
of skills to make it successful
A small business owner must possess all of the following except - Answers :a
sequential formula
In the context of generating new ideas, which of the following is an example of a
personal hobby developed into a business venture - Answers :A sports cards collector
becomes a dealer who specialized in the trade of rare and
valuable trading cards
Which of the following can be a threat to operational financing - Answers :swift
expansion plans
Rita conducted a gap analysis and came up which several ideas for starting a new
business. The next step requires her to set apart one business idea which she can
execute a - Answers :due diligence analysis
_____ leads to a condition where a single firm making 100% of the product is the most
efficient - Answers :Economies of scale
In the context of a harvest plan, which of the following is the deciding metric in a
potential public offering of a business - Answers :size
Characteristics of an entrepreneurial startup include all except - Answers :having over
100 employees
Which of the following is a huge advantage for small business owners to start a
business - Answers :desire to be ones own boss
The development and implementation of a new business is part ____, and part ___ -
Answers :art, science
Harvest plan for a small business means the owner is - Answers :planning to exit a
small business
Identify a true statement about entrepreneurial firms - Answers :The number of
employees in such businesses is not expected to grow to more than 50 to 100
Which of the following is a defining characteristic of venture capital start-ups - Answers
:The businesses are well-funded by angel-investment
In the context of entrepreneurship around the world, identify a true statement about
microloans - Answers :The success of such loans have been sustain, with great strides
being made in many desperately poor nations
All of these are harvest plan strategies except - Answers :Franchising
T or F: Heather Schuck, owner of Glamajama, is an example of how women can
concentrate on more than one facet of life - Answers :true
T or F: Today many of the multinational firms in the United States are technology firms
that
began in the late 1970s and early 1980s - Answers :true
T or F: Entrepreneurial businesses have the ability to make greater profits in markets
that have been ignored by larger corporations - Answers :true
T or F: Online chat rooms are often a potential source of funding for an entrepreneurial
business - Answers :true
,T or F: The reason a business is called a family business is that the owner's family plays
a critical
role in the success of the business - Answers :true
T or F: The owner must be aware of his or her own tolerance of risk and establish a
business that is consistent with that tolerance - Answers :true
Ray a manger in Fir Tree inc a large and established firm, must rabel to attend an
annual
conference. He books the most convenient flight and a room in a luxurious hotel right
next to the venue. Ray justifies these decisions by saying they are time saving
measures. These decisions can be best explained by - Answers :agency theory
_____ states that individuals make decisions that maximize their own individual benefits
- Answers :agency theory
All of these are potential issues for an owner in a family business except - Answers :All
of these choices are correct (Reprimanding a family member, firing a family member,
promoting a family member)
Why can a small business owner make decisions quicker than a big business - Answers
:Because the decision maker is both the owner and manager of the business
In the context of the entrepreneurial orientation, the presence of ____ often leads young
people to be pioneers in an area, as they are less bound by the restrictions of the past -
Answers :bounded rationality
Which personality test indicates the different ways individuals deal with other people
and
their environments - Answers :Myers-Briggs
The Small Business Administration has set up which of these to advise individuals
wanting to start a new business - Answers :Small Business Assistance Centers
When should a new business owner ensure there are sufficient financial resources to
operate the business? - Answers :prior to the start
Anya is an entrepreneur. To understand her own strengths and weaknesses better, she
takes a personality test. The test analyzes various factors, such as wether she focuses
more on the outward world or her internal world and whether she gathers information
through observation or intuition. Based on these variables, the test shows Anya how
she tends to deal with other people and her environment. The test that Anya took is
most likely the - Answers :Myers-Briggs test
Which of the following is not a personal motivation for an individual to start a business -
Answers :taking a defensive position
, T or F: A business owner must have the necessary skills to operate a business, and he
or she must
also clearly understand the marketplace - Answers :true
T or F: A good way to generate new business ideas is to think about the things that
frustrate you or cause you problems and then identify solutions - Answers :true
T or F: In brainstorming, the true potential for each idea is often fully evaluated before
the
process moves onto generating the next one - Answers :false
Threats to ____ are threats to the success of a new business related to its ability to
establish and maintain a high-margin product or service - Answers :profit margins
_____ is used to describe the process of systematically examining the difference
between
what is expected and what occurs - Answers :GAP analysis
Which of the following is not included in the second column of the labeled categories in
a gap analysis - Answers :inventory resources
While developing a quality business idea, what should potential business founders
ideally
do after evaluating their personal skill sets - Answers :Carefully analyze the market and
look for a gap
Identify a true statement about the process of generating new business ideas - Answers
:As a business idea evolves, an entrepreneur must be willing to develop a new set
of skills to make it successful
A small business owner must possess all of the following except - Answers :a
sequential formula
In the context of generating new ideas, which of the following is an example of a
personal hobby developed into a business venture - Answers :A sports cards collector
becomes a dealer who specialized in the trade of rare and
valuable trading cards
Which of the following can be a threat to operational financing - Answers :swift
expansion plans
Rita conducted a gap analysis and came up which several ideas for starting a new
business. The next step requires her to set apart one business idea which she can
execute a - Answers :due diligence analysis
