EF Final

TBL focuses on all the following except

precedence

One reason why corporate entrepreneurship has done so well is that it allows organizations to

tap the innovative talents of their people

Generally, entrepreneurial stress is due to

the discrepancy between the entrepreneur's expectations and the ability to meet demands

The major thrust of corporate entrepreneurship is to

encourage innovation

A type of successor who is high in ingenuity, creativity, and drive would be considered a(n)

entrepreneurial successor

All of the following are recognized as advantages of partnerships except

possible tax advantages

The discounted earnings method of valuation establishes

potential earning power

The text of a patent application is known as the

specification

Some buyers are willing to pay more for a business than what valuation methods determine its worth to be. What are these buyers attempting to avoid?

start-up costs

Formation of long-range plans for effective management in light of a venture's strengths and weaknesses is referred to as

strategic planning

A "SWOT" analysis refers to

strength, weaknesses, opportunities, threats

Examples of social enterprise obligations to the environment include all of the following except

support for minority-own business

Which is not an underlying issue when determining proper valuation of the venture set to be acquired?

the amount of risk involved in an acquisition

In attempting to create an entrepreneurial climate, the organization should consider that

the corporations that promote personal growth will attract the best people

Which is not a trait of a successful entrepreneur?

trouble fitting in

Which of the following is not a step in developing a succession strategy?

undertaking forcing events

Succession pressure inside the firm exists

when family members want to keep and manage the business themselves

Research shows that many privately held firms go out of business within

10 years

Design patent protection lasts for _________ years.

14

Which of the following statements is false?

Entrepreneurs are born with the skills necessary to manage a business.

Which of the following is NOT a question in the corporate entrepreneurial planning process?

Has the firm met government regulations for innovation?

Research on family firms demonstrates which of the following facts?

Only 16 percent make it to a third generation

Which of the following statements about social entrepreneurship is not true?

Social entrepreneurship is limited to the world of not-for-profit corporations

Which of the following falls under Chapter 7 bankruptcy?

The debtor is relieved of obligations

All of the following are reasons for the growth of corporate entrepreneurship except

a desire to dramatically increase profitability

The "dark side" of entrepreneurship refers to

a destructive force within the energetic drive of entrepreneurs

Corporate social responsibility refers to

actions that further some social good beyond the interests of the firm

The purpose of filing for Chapter 7 bankruptcy is

allocation changes

Entrepreneurial persistence is related to

avoiding counter influences to entrepreneurship

What kind of thinking can lead to unethical behavior in a business context?

bottom line

Which of the following is not an aspect of the "dark side" of entrepreneurship?

bouts of euphoria

Characteristics often attributed to the entrepreneur include:

commitment, determination, and perseverance

The managerial successor typically is not interested in

creativity

A harvest plan

defines when and how owners and investors will realize an actual cash return on their investment

Barriers to successful succession planning, discussed in the text, include which of the following?

dilemma of choice

If cash flow is deemed the most important consideration in buying a business, which valuation method is likely to be used?

discounted future earnings

Small business owners are often guarded about their businesses, which leads to

distrust of others when formulating a strategic plan

_______ refers to conducting a thorough analysis of every facet of an existing business.

due diligence

Which of the following should not be considered when buying a business?

employee retention

New ventures are important to the economy in terms of innovation and _____.

employment

What is the one-person-band syndrome?

failure to delegate

Bottom-line measures of economic performance include all of the following except:

global competition

All of the following are characteristics of entrepreneurial cultures except

hierarchy

Traditional valuation methods include all of the following except

high equity/low debt

Items that can qualify for patent protection include all of the following except

ideas

Emotional bias is likely to have what effect on a seller's valuation of a business?

increase the valuation

Each of the following are nonfamily elements under pressure and interest from outside the firm except

increased insurance rates

An entrepreneurial successor is someone who

is ingenious, creative, and driven

The primary advantage of the price/earnings approach to valuation is that

it is simple to use

Which is not one of the major sections of the bankruptcy act?

liquidation

An L3C is a new legal form for social enterprises known as

low-profit, limited liability companies

A patent gives the holder a temporary

monopoly

Price/earnings ratio is a method of valuation that is

mostly used with publicly held corporations

All of the following are characteristics of administrative cultures except

need to reduce risk

Which of the following would be considered a fatal mistake in strategic planning, according to researcher Michael E. Porter?

no real competitive advantage

To establish a sole proprietorship, a person needs to

obtain whatever local and state licenses are necessary

Which of the following activities does not characterize the social entrepreneur?

operating with a low sense of accountability

Copyrights may be expressed in all of the following except

records

Which of the following is an advantage to developing an entrepreneurial environment?

retention and motivation of the best employees

The first step in planning a strategy of entrepreneurship for enterprise is

sharing the vision of innovation

If we accept the argument that social entrepreneurship is a continuum, at one extreme would be social entrepreneurs driven exclusively by producing social benefits; at the other would be

social entrepreneurs motivated by profitability with social benefits being the means

The basic challenge for social enterprise is addressing the obligations of business to

society

The decision to behave entrepreneurially is the result of the interaction of

the individual's personal entrepreneurial mind-set and an opportunity

A clear pattern among successful entrepreneurs is

their focus on opportunity rather than resources

A reason new venture managers lack knowledge in the strategic planning process is because

they have minimal exposure to the planning process

Which of the following are specific factors identified by researchers, that organizations can concentrate on in structuring an entrepreneurial climate?

top management support, time, resources, rewards, and organizational boundaries

North American Free Trade Agreement (NAFTA) has developed

trade barrier reductions

The adverse impact of ______ can be so destructive that individuals within the enterprise will tend to avoid entrepreneurial behavior.

traditional management techniques

Corporate entrepreneurial strategy should be thought of as

vision directed

The textbook describes three types of leadership consequences to new ventures. What are they?

visionary, strategic, and managerial