ENT 3004 EXAM 1.

ENT 3004 EXAM 1. QUESTION 1 1. Which ethical model typically advocates seeking the greatest good for the greatest number of people? Utilitarianism Caveat empto r The Golden Rule Machiavelliani sm QUESTION 2 1. Financing a business online through the collective involvement of others who provide donations, loans, or investments is referred to as . crowdfundi ng bootstrappi ng microfinanc ing crowdsourci ng QUESTION 3 1. A situation that occurs when businesses have founders or owners who are passionate about one or two of the key business functions, such as sales, operations, accounting, finance, or human resources is known as . expert business professionalization specialized business professionalization minimized business professionalization maximized business professionalization QUESTION 4 1. According to the U.S. Small Business Administration, small businesses generate times the number of patents per employee than do big businesses. 35. 5 2.5 16. 5 50. 5 QUESTION 5 1. Which of the following characterizes a habit-based planner? They take a long-term view, develop long-range plans for all aspects of the business, are comfortable with planning, and act based on the plans they've developed. They plan around the most important aspect of the business first, act on it, and then consider if additional plans are needed. They are completely passive and generally wait for cues from the environment to determine what actions to take. They don't plan, and they don't tend to react to changes in their environments. QUESTION 6 1. Which of the following is a reward that is rarely mentioned by entrepreneurs? To have a chance to build great wealth To have greater flexibility for personal and family life To continue a family tradition To develop an idea for a product QUESTION 7 1. The product/service component of the feasibility study typically includes which of the following aspects? Stage of development Competition Market penetration Cost forecast QUESTION 8 1. Which of the following is a major economic force, employing 58 percent of America's total workforce? Public companies Government enterprises Family businesses International assignments QUESTION 9 1. Which of the following is true of a small business? Its preferred funding source is other people's money. It sells more when it is facing bankruptcy. It considers sales as more important than marketing. It focuses more on effectiveness than on efficiency. QUESTION 10 1. Which of the following challenges is typical to family businesses? Motivation and nepotism Role conflict and succession Succession and finances Leadership and finances QUESTION 11 1. A person or organization offering the rights to use a particular piece of intellectual property is referred to as the: bailor. franchis or. licensor. licensee . QUESTION 12 1. tend to level off after success defined by sales of between $100,000 and $1,000,000, depending on the industry. Lifestyle firms Traditional small businesses High-performing small businesses High-growth ventures QUESTION 13 1. According to Graham Wallas' description of the creative process, a creative thought includes a(n) stage. industry survey elimination combinatio n incubation QUESTION 14 1. Regulatory focus is a mix of focus and focus. effectuation; comprehension comprehension; prevention effectuation; promotion promotion; prevention QUESTION 15 1. Which of the following deals with the actual process of exploiting an opportunity for profit? Resour ce Exchan ge Intentio n Bounda ry QUESTION 16 1. According to a majority of entrepreneurs in the Panel Study of Entrepreneurial Dynamics (PSED), which of the following is the most frequently mentioned source of business ideas? Discussion with potential investors Education and expertise Family and friends Work experience QUESTION 17 1. Having well-known or well-regarded owners, employees, supporters, or spokespeople primarily increases a firm's legitimacy. cost-based organization- based people-based competition- based QUESTION 18 1. Which of the following is the most frequently occurring element of the BRIE model? Intentio n Bounda ry Exchan ge Resourc es QUESTION 19 1. The extent to which a firm meets or exceeds the standard business practices for its industry is known as . bootstrapping professionalization effectuation Perceived Organizational Support (POS) QUESTION 20 1. Which of the following aspects of the SCAMPER tools involves searching for opportunities that arise when a person gets rid of something or stops doing something? Adapt Eliminat e Rearran ge Modify QUESTION 21 1. A(n) focus refers to an entrepreneur's attention to minimizing losses, with a bias toward inaction or protective action to avert loss. external promotio n effectuat ion preventio n QUESTION 22 1. Which of the following is a difference between a small business and a high-growth venture? For a small business, the preferred funding source is other people's money, whereas for a high-growth venture, it is the owner's own money. For a small business, the personal control preference is to involve others, whereas a high-growth venture prefers to retain autonomy. A small business focuses on effectiveness, whereas a high-growth venture focuses on efficiency. A small business grows when necessary, whereas a high-growth venture grows when possible. QUESTION 23 1. The SCAMPER tool is based on the work of: David McClelland. Abraham Maslow. Alex Osborne. Frederick Herzberg. QUESTION 24 1. A business owned by an individual or a little group is referred to as a(n): corporate chain. conglomerate. concern. independent small business. QUESTION 25 1. Which of the following elements of the BRIE model represents the desire to start a business? Intentio n Bounda ry Exchan ge Resourc es QUESTION 26 1. entrepreneurs are people who begin their business after having retired or resigned from work in corporations at or after the age of 50. Occasio nal Helical Late career Veteran QUESTION 27 1. Erion Inc. is an e-commerce company that sells its food products under the brand name Heal Meal. Its business partners have planned to enter into a strategic alliance with a well- reputed retailer in the Asian market in order to expand its operations to the Asian continent. Which of the following is a reason for the company having a lack of organization-based legitimacy in the Asian market? The absence of a physical location to conduct business It's partnership with another well-reputed business The use of a brand name to sell products Its legal form as a partnership firm QUESTION 28 1. is an aspect of entrepreneurship which looks at a new thing or a new way of doing things. Customer- focus Innovation Creation Efficiency QUESTION 29 1. In the SCAMPER tool, "S" stands for: strategi ze. substitu te. submit. solicit. QUESTION 30 1. Which of the following is a characteristic of a traditional small business? It is often a one-site business. It follows a continuous growth curve. It defines its schedules based on the owner's needs. It generally has sales between $100,000 and $1,000,000 depending on the industry. QUESTION 31 1. A business action that has been widely adopted within an industry or occupation is known as . best business practice specialized business professionalization standard business practice expert professionalization QUESTION 32 WRONG 1. Which of the following statements about entrepreneurial teams is true? Most entrepreneurial teams are family related. The majority of new businesses have an entrepreneurial team of a minimum five co-owners. The trend is toward even more businesses being developed by a solo entrepreneur. Only 10 percent of teams are spouses or life partners working together. QUESTION 33 1. Justin is a sales executive at a manufacturing company. One of his clients who purchases products from him at a higher price than that quoted by competitors is facing financial problems. Since Justin's promotion depends on his achieving the sales target, he cannot decide whether he should inform his client about the lower prices its competitors are paying. Justin is facing a situation known as . effectuation social loafing cognitive resonance ethical dilemma QUESTION 34 1. An ethical model that advocates treating others in the manner one wishes to be treated refers to . due diligence caveat emptor the Golden Rule the imitative strategy QUESTION 35 1. Adam owns a software development company. He and his team developed and licensed new software that could help many organizations strengthen their Web security. Any organization that wishes to use Adam's licensed software would most likely have to pay him in the form of a(n) . pay-off royalty lump sum payment payout QUESTION 36 1. Ivan has recently started his new business venture, and he has been busy visiting trade exhibitions, business organizations, electronic business forums, and his previous colleagues in order to build contacts. This will help him use their expertise to the benefit of his business. Ivan is typically working on building a . social network concern focus group global common QUESTION 37 1. According to Graham Wallas' description of the creative process, the stage of a creative thought involves exploring the problem or opportunity in all directions. illuminati on incubatio n preparati on verificati on QUESTION 38 WRONG 1. Roller-Tell Inc., a major supplier of components to the automobile industry, has recently confronted a crisis as one of its manufacturing units has been forcefully shut down by the local union. As a result, the company has been unable to meet the customer demands appropriately. As the owner of the business, the most appropriate way for the firm to handle this crisis is to: delegate as much as possible of the crisis management to the employees. make the process of dealing with the problem as open as possible. keep employees, customers, and suppliers isolated from the crisis. avoid admitting that there is any issue hampering production. QUESTION 39 1. One powerful but rarely used source of business ideas are: family and friends. work experiences. existing customers. government agencies. QUESTION 40 WRONG 1. Many owners of consulting companies took their own skills and launched businesses by selling those skills to other companies or individuals who needed them. This is an example of which of the following sources of business ideas? Family and friends Serendipity Education and expertise Personal interest QUESTION 41 1. Which of the following is true of corporate entrepreneurship? It involves the creation of self-sustaining charitable and civic organizations. It involves revitalizing government agencies. It is a form of entrepreneurship in which people own their own for-profit business. It involves bringing new products or services to a market. QUESTION 42 1. Which of the following is true with regard to minorities in small businesses? Minority-owned firms have not grown much in recent years and are a slow growing sector. The establishment of both public and private funding and networking initiatives has helped to level the business playing field for minority entrepreneurs. There is a phenomenal decline in the number of minority entrepreneurs despite the growth of racial and ethnic groups within the U.S. population. Minority entrepreneurs do not face the challenge of access anymore. QUESTION 43 1. Which of the following is the idea trigger for the "substitute" cue of the SCAMPER tool? The opportunities that come as a result of replacing something that already exists The separate products, services, or whole businesses that can be put together to create another distinct business The products or services that can be imitated from other industries or fields The factor that can be used to make a product different from that of competitors' products QUESTION 44 1. Sylvia had helped Jonathan, one of her previous subordinates, in establishing his business by referring him to an important venture capitalist. As an appreciation of her help, Jonathan has now agreed to hire and personally mentor her son as a trainee in his company. Both Sylvia and Jonathan are typically exhibiting . collectivis m bicamerali sm mutuality autocracy QUESTION 45 1. Martin runs a successful house painting business. He runs his business out of his garage, which he got converted into an office space. Martin, who had previously worked as a house painter in another company had good know-how of how to run a house-painting business. After a storm destroyed public properties in his neighboring town, he contracted with the mayor of that town to fulfill any painting jobs required during the town's reconstruction. In order to meet this demand and expand business, he hired more house painters. According to the BRIE model, which of the following is an example of Martin's opportunity competency? Martin hiring more house painters to meet demand Martin contracting with the mayor to help paint during reconstruction Martin setting up the business's office in his garage Martin deciding to set up his own business after quitting his previous job QUESTION 46 1. Which of the following is true of a high-growth venture? It considers sales as more important than marketing. Its metastrategy is novelty. It focuses more on efficiency than on effectiveness. It does not allow for easy delegation of work or responsibilities. QUESTION 47 1. The strategy for using the pilot test approach is: to show potential partners that the idea can generate sales. to generate IP protection for the idea. to check the number of visitors to the Web site. to circumvent government regulations. QUESTION 48 1. Those parts of the external environment that directly and consistently touch on a firm are called the: task environment. microenvironmen t. real-time environment. general environment. QUESTION 49 1. Anna helps brides-to-be choose wedding gowns that best suit their requirements and budget, and also helps them with where they can find the right dress. She has made her home her virtual office; she does not require external financing. Anna is using to run her small business. crowdfundi ng franchising bootstrappi ng crowdsourc ing QUESTION 50 1. Activities common to all businesses such as sales, operations (also called production), accounting, finance, and human resources are known as . key business functions competencies business accreditations business-related expertise