Deck 11: Designing an Entrepreneurial Organization

Question 1

____ outsource everything except their core-management function. ​

A)Virtual organizations
B)Most startups
C)Regional organizations
D)Manufacturing organizations
E)None of these choices

Answer 1

A

Question 2

The United States is divided into Standard Metropolitan Statistical Areas (SMSAs), which are geographic areas that include a major metropolitan area. ​

Answer 2

True

Question 3

There is probably no single best organizational structure for all types of ventures in all situations. ​

Answer 3

True

Question 4

The ____ is fundamentally the personality of the organization and forms the basis for all the activities that the company undertakes. ​

A)process
B)founder
C)vision
D)culture
E)structure

Question 5

Risk management is a set of policies and decision-making processes that reduce or eliminate risks associated with having employees. ​

Question 6

Informal networks are:

A)The same as formal networks, but conducted through social media
B)The skeleton of the body of the organization
C)The established policies of the organization
D)The real power base in the organization
E)None of these

Question 7

The Family and Medical Leave Act provides for up to 12 weeks of paid leave for employees who are dealing with family issues. ​

Question 8

Formal processes are independent and improve the functions of a department. ​

Question 9

The number of shares authorized when a corporation is formed is purely arbitrary. ​

Question 10

To the new venture, teams of businesses in its network are also known as: ​

A)A sharing co-op
B)A trade area
C)Strategic Alliances
D)True partnerships with written agreements
E)None of these choices

Question 11

Distributed companies may use websites providing all of the following services except: ​

A)Management
B)Marketing
C)Supply chain management
D)Virtual meetings
E)Distributed companies may use all of these choices

Question 12

Locating a site for a new business normally begins with identifying the ____ that seems best suited to the type of business being started. ​

A)area of the country
B)state
C)community
D)demographic
E)None of these choices

Question 13

Entrepreneurs must find the best organizational structure considering all of these factors except: ​

A)Existing contextual factors
B)Design factors
C)Structural factors
D)All of the above factors should be considered
E)Only A and B should be considered

Question 14

Companies are typically distributed in all of the following ways except ____. ​

A)geographically
B)centrally
C)organizationally
D)temporally
E)by stakeholder groups

Question 15

The economic base of a region or community is simply the major source of income for the area. ​

Question 16

When entrepreneurs develop job descriptions, they should focus on the duties and responsibilities of a particular job as well as the ____. ​

A)legal requirements
B)organizational chart
C)behavioral profile
D)process map
E)job candidate

Question 17

Today it is much easier than it used to be for a new venture to achieve total in-house control of its value chain. ​

Question 18

An economic base is the region from which the entrepreneur expects to draw customers. ​

Question 19

____ is fundamentally the personality of the organization - the reflection of the company's vision and goals. ​

A)Culture
B)Process
C)The founder
D)Mission
E)Organizational design

Question 20

Founder's stock at issuance is probably valued at the lowest level it will ever be, relative to an investor's stock value. ​

Question 21

Employees have the right to participate in the profits of the company at a specified percentage, while not being full shareholders with voting rights, if they have ____. ​

A)an annual bonus
B)a piece-rate plan
C)capital appreciation rights
D)a profit-sharing plan
E)a deferred compensation plan

Question 22

The most successful new ventures adopt a team-based approach with a/an ____ structure.

A)flatter
B)open
C)interactive
D)virtual
E)All of these choices

Question 23

Which of the following is not a formal process? ​

A)Planning systems
B)Control mechanisms
C)Compensation
D)Team building
E)Reward policies

Question 24

The Age Discrimination in Employment Act applies to all companies with ____ or more employees. ​

A)​20
B)​50
C)​70
D)​100
E)​300

Question 25

The region from which the entrepreneur expects to draw customers is called the ____. ​

A)economic base
B)SMSA
C)community development
D)trade area
E)market

Question 26

A way in which virtual companies become more flexible and responsive is by forming ____, or teams of businesses to share resources and reduce costs. ​

A)virtual partners
B)strategic alliances
C)R&D teams
D)temporary networks
E)None of these choices

Question 27

Using a/an ____ agreement is one way to make sure that only stock that has been earned will be distributed. ​

A)employee stock ownership
B)shareholder
C)stock-vesting
D)minority ownership
E)preferred stock

Question 28

During the interview process for new hires, it is recommended that entrepreneurs ask ____. ​

A)the age of the candidate
B)open-ended questions
C)lifestyle questions
D)questions about personal beliefs
E)None of these choices

Question 29

Which of the following is not a component of the entrepreneurial organization? ​

A)Formal processes
B)People
C)Location
D)Culture
E)None of these choices; all of these are components of the entrepreneurial organization.

Question 30

The first and best places for an entrepreneur to look for an employee include all of the following except ____. ​

A)the company's current employees
B)online job search sites
C)subcontractors
D)professional advisors
E)referrals from people the entrepreneur trusts

Question 31

Stock issued to the first shareholders of the corporation or assigned to key management as part of a compensation package is ____. ​

A)preferred stock
B)founder's stock
C)stock-vesting
D)dilution
E)profit sharing

Question 32

A basic ownership interest in the company whereby holders share in both the successes and the failures of the business and benefit through dividends is ____. ​

A)common stock
B)founder's stock
C)preferred stock
D)retained earnings
E)None of these choices

Question 33

The three key factors for determining value in real estate are ____. ​

A)location, location, and location
B)economic base, financial incentives, and demographics
C)trade area, competition, and demographics
D)accessibility, cost of labor, and technology
E)location, competition, and cost

Question 34

When an entrepreneur specifies that rewards and bonuses be linked to profits and performance of both the individual and the company, a/an ____ is in place. ​

A)annual bonus
B)deferred compensation plan
C)profit sharing plan
D)common stock plan
E)capital appreciation plan

Question 35

____ are distinct from other plans in that they are subject to the ERISA rules for employee retirement programs. ​

A)Stock options
B)Profit-sharing plans
C)Bonus plans
D)Capital appreciation incentives
E)None of these choices

Question 36

Enterprise zones are common locations for ____. ​

A)manufacturing
B)distributing
C)retail
D)wholesaling
E)restaurants

Question 37

All of the following are alternatives to conventional facilities except ____. ​

A)incubators
B)shared space
C)leasing a building
D)temporary tenant agreements
E)mobile locations

Question 38

When a series of goals are set by the company with input from the employee, and the employee receives payment as each goal is reached, this is called a ____. ​

A)deferred compensation plan
B)profit sharing plan
C)capital appreciation plan
D)bonus plan
E)personal incentive plan

Question 39

The professional employer organization (PEO)is used for ____.

A)employee leasing
B)enforcing laws by the EEOC
C)interviews
D)drug screening
E)risk management

Question 40

People in ____ networks tend to gravitate toward each other in an effort to accomplish tasks in a more efficient and effective manner than may be dictated by the organizational chart. ​

A)virtual
B)formal
C)informal
D)communication
E)grapevine

Question 41

Briefly discuss founder's stock. ​

Question 42

Discuss the advantages of human resource leasing. ​

Question 43

Define virtual enterprise. ​

Question 44

Define incubators. ​

Question 45

Briefly discuss the Civil Rights Act and Title VII of the Civil Rights Act. ​

Question 46

Define company culture. Why is it important? ​

Question 47

There are three specific considerations for choosing a retail site. What are they? ​

Question 48

Define risk management. ?

Question 49

What factors are important to consider when choosing a business site? ​

Question 50

Under the law administered by the Equal Employment Opportunity Commission (EEOC), before the point of hire you may not ask about what aspects of an applicant's life? ​