Deck 17: Appendix: Entrepreneurship Module

Question 1

An entrepreneurial venture is much more likely to change an industry than a small business.

Answer 1

True

Question 2

An entrepreneurial venture that sees its competitive advantage in cost efficiency would tend to adopt an organic style organizational structure.

Answer 2

False

Question 3

If the legal structure of an entrepreneurial venture does not turn out to be ideal, it can always be changed easily once the organization is up and running.

Answer 3

False

Question 4

The classic "entrepreneurial personality" is a person who is high in self-confidence, motivation, and energy.

Question 5

You would expect an entrepreneur who has a grand vision for the future to be more of a risk taker than an entrepreneur who is using his or her venture simply as a source of income.

Question 6

An entrepreneurial venture's advertising strategy would be included in the description of the business section of a full business plan.

Question 7

The two primary factors that affect the legal structure of an entrepreneurial organization are taxes and legal liability.

Question 8

When hiring, entrepreneurs typically are much less concerned with matching a candidate's values to the organization's organizational culture than traditional HRM managers.

Question 9

Most entrepreneurial ventures are successful.

Question 10

A context analysis sizes up the target market and evaluates possible competitors to the company.

Question 11

One of the first things an entrepreneur does is look for potential opportunities in the marketplace.

Question 12

When they first start out, most small entrepreneurial ventures have a very informal organizational structure.

Question 13

People with proactive personalities tend to react to their environment more than trying to change their environment.

Question 14

Entrepreneurship is the process of starting a new business to respond to an opportunity in the market.

Question 15

Since it is impossible to predict the future, projected income estimates are not part of a good business plan.

Question 16

An entrepreneurial venture is the same as a small business.

Question 17

Legal issues for an entrepreneurial organization typically are addressed after the organization is up and running.

Question 18

Since they are often overwhelmed by the pressure of decisions, one chore that most entrepreneurs never hesitate to delegate is decision making.

Question 19

An executive summary is the most complete kind of business plan.

Question 20

Once the entrepreneurial organization is up and running, the entrepreneur becomes a manager.

Question 21

A good way to ease into employee empowerment is to let employees share in decision making.

Question 22

An entrepreneurial venture and a small business ________.

A)are superficially similar
B)are identical
C)have nothing in common
D)are impossible to tell apart

Question 23

One of the keys that distinguishes an entrepreneurial organization from a conventional organization is the concerted emphasis on growth.

Question 24

A command-and-control leadership style works best with an entrepreneurial organization that is organized in teams.

Question 25

Saving money by avoiding the expense of professional legal and accounting advice is often a mistake for entrepreneurs.

Question 26

Because entrepreneurship is so time-consuming and energy-consuming, many entrepreneurs have trouble in their personal lives.

Question 27

One key difference between an entrepreneurial venture and a small business is that the entrepreneurial venture focuses on ________.

A)productivity
B)efficiency
C)quality
D)innovation

Question 28

The more proactive you are, the more likely you are to be an entrepreneur.

Question 29

Employee empowerment has little effect on an organization's profits or productivity.

Question 30

Nonvisionary entrepreneurial leaders usually outperform visionary entrepreneurial leaders.

Question 31

When it was first starting out, the Viking Range company qualified as an entrepreneurial organization because its products were ________.

A)high in quality
B)expensive
C)innovative and different
D)loved by serious cooks

Question 32

It is a good idea for an entrepreneur to develop a network of trusted friends and advisors to help with problems and decisions.

Question 33

The leader of an entrepreneurial organization is like a jazz band leader because he or she controls every note that his or her "musicians" play.

Question 34

The first step in managing a downturn in an entrepreneurial business is to recognize that things are not going well.

Question 35

Identifying opportunity is not a trait of a person with a proactive personality.

Question 36

An "accidental entrepreneur" is someone who became an entrepreneur because he or she ________.

A)always had a dream to start a company
B)lost his or her job
C)identified a great opportunity
D)quit his or her job

Question 37

In the wake of the recent economic downturn, statistics show that entrepreneurship is ________.

A)low
B)high
C)falling
D)neither rising nor falling

Question 38

Selling an entrepreneurial venture is always a sign of failure.

Question 39

Employee empowerment increases productivity but decreases employee motivation.

Question 40

Besides being innovative in some way, a second defining characteristic of an entrepreneurial venture is that it is ________.

A)small in size
B)focused on growth
C)dedicated to quality
D)original and creative

Question 41

In most cases, the first step in the initial (pre-planning)phase of the entrepreneurial process is this.

A)pinpointing potential competitive advantages
B)identifying potential opportunities
C)exploring finance options
D) researching the venture's feasibility

Question 42

During the first step of the planning and organizing phase of an entrepreneurial venture, this is accomplished.

A)selecting a legal business organization form
B)stating a mission
C)selecting an organizational design
D)creating a business plan

Question 43

Once an entrepreneurial venture is actually up and running, the entrepreneur switches to a ________ role.

A)managerial
B)ceremonial figurehead
C)background
D)subordinating

Question 44

This section of a full business plan would include a description of the demographics of the target market for the organization.

A)description of the business
B)financial data and projections
C)executive summary
D)analysis of opportunity

Question 45

The mission statement of an entrepreneurial venture would be included in this section of a full business plan.

A)analysis of opportunity
B)description of the business
C)executive summary
D)analysis of the context

Question 46

Identification of the organization's key personnel would be included in this section of a full business plan.

A)analysis of the context
B)analysis of opportunity
C)description of the business
D)executive summary

Question 47

This section of a full business plan would include an assessment of the industry of the venture and how it fits into the overall economic climate.

A)analysis of context
B)description of the business
C)financial data and projections
D)analysis of opportunity

Question 48

The third step in the initial (pre-planning)phase of the entrepreneurial process is ________.

A)exploring finance options
B)pinpointing potential competitive advantages
C)researching the venture's feasibility
D)identifying potential opportunities

Question 49

This type of business plan is a step down from the most complete type of business plan.

A)summary business plan
B)full business plan
C)executive summary
D)synopsis-type plan

Question 50

During the third step of the planning and organizing phase of an entrepreneurial venture, an entrepreneur ________.

A)selects an organizational design
B)creates a business plan
C)states a mission
D)selects a legal business organization form

Question 51

After four years, ________ business.

A)56 percent of entrepreneurial ventures are out of
B)56 percent of entrepreneurial ventures are still in
C)31 percent of entrepreneurial ventures are out of
D)two-thirds of entrepreneurial ventures are out of

Question 52

This type of business plan is a step up from the simplest type of business plan.

A)summary business plan
B)executive summary
C)synopsis-type plan
D)full business plan

Question 53

The fourth step in the initial (pre-planning)phase of the entrepreneurial process is ________.

A)exploring finance options
B)researching the venture's feasibility
C)pinpointing potential competitive advantages
D)identifying potential opportunities

Question 54

This section of a full business plan would include possible income statements for the next three years.

A)financial data and projections
B)executive summary
C)analysis of opportunity
D)description of the business

Question 55

During the fourth and final step of the planning and organizing phase of an entrepreneurial venture, this is accomplished.

A)selecting a legal business organization form
B)stating a mission
C)selecting an organizational design
D)creating a business plan

Question 56

Survival rates of entrepreneurial ventures that started in a recession are ________ those that started in an expansion.

A)somewhat greater than
B)less than
C)the same as
D)much greater than

Question 57

This is the the most complete and comprehensive type of business plan.

A)executive summary
B)full business plan
C)summary business plan
D)synopsis-type plan

Question 58

This is the simplest and briefest type of business plan.

A)synopsis-type plan
B)full business plan
C)summary business plan
D)executive summary

Question 59

This is typically the second step in the initial (pre-planning)phase of the entrepreneurial process.

A)researching the venture's feasibility
B)identifying potential opportunities
C)exploring finance options
D)pinpointing potential competitive advantages

Question 60

During the second step of the planning and organizing phase of an entrepreneurial venture, an entrepreneur ________.

A)states a mission
B)selects a legal business organization form
C)creates a business plan
D)selects an organizational design

Question 61

The key to the proactive personality is that a proactive person feels that he or she can ________ any environment.

A)adapt to
B)change
C)be successful in
D)be well liked in

Question 62

An entrepreneurial venture that manufactures low-cost generic pills would be likely to be ________.

A)very organic in structure
B)very innovative
C)fairly mechanistic in structure
D)very informal in structure

Question 63

In general, an entrepreneurial venture that sees ________ as its competitive advantage would tend to be ________ in structure.

A)efficiency; organic
B)efficiency; mechanistic
C)innovation; mechanistic
D)innovation: formal

Question 64

With respect to entrepreneurship, a proactive person is best described as someone who has skill in identifying ________.

A)a problem
B)trouble
C)a good idea
D)a good opportunity

Question 65

Which of the following terms does not fit the classic profile of the successful entrepreneur?

A)high energy
B)reflective
C)persistent
D)resourceful

Question 66

At an entrepreneurial organization, job candidates are more likely to hear about ________ than they will at conventional organizations.

A)benefits
B)monetary compensation
C)advancement through the ranks
D)learning opportunities

Question 67

When hiring, entrepreneurs are more likely to make sure that these two elements are a good match than traditional HRM managers.

A)job skills and organizational needs
B)job qualifications and organizational requirements
C)formal job training and organizational requirements
D)values and organizational culture

Question 68

Many small entrepreneurial firms don't have a deliberately planned organizational structure because ________.

A)they are inefficient
B)small firms never need structure
C)the IRS prevents them from having a structure
D)one person does "everything"

Question 69

In general, entrepreneurs tend to ________ more than the average person.

A)cut corners
B)take risks
C)avoid risks
D)avoid cutting corners

Question 70

Which of the following is the best one-word definition of a successful entrepreneur?

A)aggressive
B)stubborn
C)ambitious
D)unpredictable

Question 71

Perhaps the best predictor of whether or not a person will become an entrepreneur is how ________ she is.

A)proactive
B)talented
C)likeable
D)desperate

Question 72

Which of the following is NOT a way to organize an entrepreneurial venture?

A)partnership
B)corporation
C)cooperative association
D)sole proprietorship

Question 73

In general, an entrepreneurial venture that sees ________ as its competitive advantage would tend to be ________ in structure.

A)efficiency; organic
B)efficiency; informal
C)innovation; mechanistic
D)innovation: informal

Question 74

A person with a proactive personality is someone who ________.

A)takes action
B)avoids taking action
C)is entrepreneurial
D)is not entrepreneurial

Question 75

The form of legal ownership that an entrepreneur chooses for a venture primarily affects these concerns.

A)profit and productivity
B)taxes and liability
C)liability and planning
D)taxes and revenue

Question 76

An entrepreneurial venture whose goal is to create humorous video games would be likely to be ________.

A)very organic in structure
B)highly centralized
C)fairly mechanistic in structure
D)very mechanist in structure

Question 77

Entrepreneurs should take great care when choosing a form of legal ownership because once one form is chosen, it is ________ to change it to another form.

A)impossible
B)very difficult
C)easy
D)rather embarrassing

Question 78

In general, employee empowerment ________ motivation in employees.

A)increases
B)slightly decreases
C)strongly decreases
D)has no effect on

Question 79

People who become entrepreneurs often have ________.

A)family money
B)no family money
C)family members who are entrepreneurs
D)no family members who are entrepreneurs

Question 80

A proactive person would be most likely to say this about his or her life.

A)I feel trapped.
B)If I don't like something, I fix it.
C)If I don't like something, I learn to live with it.
D)I like to leave well enough alone.