ENT 2113 EVALUATIONS EXAM 2025/2026 QUESTIONS
AND SOLUTION RATED A+
✔✔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. -
✔✔True
✔✔When should a new business owner ensure there are sufficient financial resources
to operate the business? - ✔✔prior to the start
✔✔The break-even point is defined as - ✔✔the level where revenue coming into the
firm is sufficient to cover expenses.
✔✔Which of the following personality tests is based on the philosophy of Carl Jung? -
✔✔Myers-Briggs
✔✔Some communities offer facilities that house new businesses and provide resources
for them. These are called ________. - ✔✔Incubators
✔✔In general, the greater the debt a business owner is willing to take on, the ________
the risk tolerance. - ✔✔Higher
✔✔What does a potential entrepreneur need to consider when starting a new business?
- ✔✔risk tolerance
prior experience
personality orientation
✔✔Which of the following is an advantage that small firms have over large businesses?
- ✔✔the ability to respond quickly to changes
✔✔All of these are potential issues for an owner in a family business except -
✔✔reprimanding a family member.
promoting a family member.
firing a family member.
✔✔In the context of entrepreneurial orientation, the presence of ________ often leads
young people to be pioneers in an area, as they are not limited by the restrictions of the
past. - ✔✔bounded rationality
✔✔In the context of supports for new businesses, why are established businesses often
hesitant to buy from a start-up business? - ✔✔because it is not clear if the new
business will be able to fulfill an order or service a product in the future.
, ✔✔Which of the following types of firms do business incubators work best with? -
✔✔scientific firms
✔✔Identify a true statement about a large firm that has organizational slack. - ✔✔The
loss of an employee barely affects the abilities of its workforce.
✔✔A person who is passionate about a hobby might be able to turn that hobby into a
successful business. - ✔✔True
✔✔The first column in a gap analysis is devoted to various business ideas. - ✔✔True
✔✔The second column in a gap analysis is devoted to listing the market need. -
✔✔False
✔✔When a potential business owner has several ideas for a business, he or she needs
to identify one on which to perform a due diligence analysis. - ✔✔True
✔✔A rule of thumb in the founding of businesses has always been that an owner whose
business is both a vocation and an avocation is difficult to beat. - ✔✔True
✔✔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. - ✔✔Profit Margins
✔✔A type of gap analysis that compares the possibilities in the marketplace with an
individual's competence to address those gaps is called - ✔✔Opportunity Analysis
✔✔A small business owner must possess all of the following except - ✔✔a sequential
formula.
✔✔The founders of a small business need to be involved in which of the following tasks
when starting the new business? - ✔✔design
funding
operating
✔✔Which of the following experiences can entrepreneurs evaluate when generating
business ideas based on their education? - ✔✔The courses they took that were
particularly enjoyable
✔✔Successful new business ideas can come from - ✔✔books and magazines.
an individual's background.
hobbies.
AND SOLUTION RATED A+
✔✔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. -
✔✔True
✔✔When should a new business owner ensure there are sufficient financial resources
to operate the business? - ✔✔prior to the start
✔✔The break-even point is defined as - ✔✔the level where revenue coming into the
firm is sufficient to cover expenses.
✔✔Which of the following personality tests is based on the philosophy of Carl Jung? -
✔✔Myers-Briggs
✔✔Some communities offer facilities that house new businesses and provide resources
for them. These are called ________. - ✔✔Incubators
✔✔In general, the greater the debt a business owner is willing to take on, the ________
the risk tolerance. - ✔✔Higher
✔✔What does a potential entrepreneur need to consider when starting a new business?
- ✔✔risk tolerance
prior experience
personality orientation
✔✔Which of the following is an advantage that small firms have over large businesses?
- ✔✔the ability to respond quickly to changes
✔✔All of these are potential issues for an owner in a family business except -
✔✔reprimanding a family member.
promoting a family member.
firing a family member.
✔✔In the context of entrepreneurial orientation, the presence of ________ often leads
young people to be pioneers in an area, as they are not limited by the restrictions of the
past. - ✔✔bounded rationality
✔✔In the context of supports for new businesses, why are established businesses often
hesitant to buy from a start-up business? - ✔✔because it is not clear if the new
business will be able to fulfill an order or service a product in the future.
, ✔✔Which of the following types of firms do business incubators work best with? -
✔✔scientific firms
✔✔Identify a true statement about a large firm that has organizational slack. - ✔✔The
loss of an employee barely affects the abilities of its workforce.
✔✔A person who is passionate about a hobby might be able to turn that hobby into a
successful business. - ✔✔True
✔✔The first column in a gap analysis is devoted to various business ideas. - ✔✔True
✔✔The second column in a gap analysis is devoted to listing the market need. -
✔✔False
✔✔When a potential business owner has several ideas for a business, he or she needs
to identify one on which to perform a due diligence analysis. - ✔✔True
✔✔A rule of thumb in the founding of businesses has always been that an owner whose
business is both a vocation and an avocation is difficult to beat. - ✔✔True
✔✔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. - ✔✔Profit Margins
✔✔A type of gap analysis that compares the possibilities in the marketplace with an
individual's competence to address those gaps is called - ✔✔Opportunity Analysis
✔✔A small business owner must possess all of the following except - ✔✔a sequential
formula.
✔✔The founders of a small business need to be involved in which of the following tasks
when starting the new business? - ✔✔design
funding
operating
✔✔Which of the following experiences can entrepreneurs evaluate when generating
business ideas based on their education? - ✔✔The courses they took that were
particularly enjoyable
✔✔Successful new business ideas can come from - ✔✔books and magazines.
an individual's background.
hobbies.
