ENT Exam 2 and Exam 1
What percentage of states has an unemployment compensation law? 100 50 75 25
100
A firm sets up a low level of salary but offers to share a percentage of its profits at the end of the year. What is this called? Profit sharing Salary Bonus Hourly wages
A
All of these are potential issues for an owner in a family business except: All of these choices are correct Promoting a family member Firing a family member Reprimanding a family member
A
Before establishing a new business, the first thing founders should do is list their personal skills sets hire a lawyer analyze the market obtain financial support
A
Characteristics of an entrepreneurial firm start-up include all except having over 100 employees being designed to take advantage of the skills of the founder being self funded being oriented around positive cash flow
A
Small companies have flourished in the United States because they respond more quickly to their customers' needs employ more skilled people than larger businesses often expand easily in mature industries have better organizational policies and procedures
A
Which of the following statements is true of a performance review in an entrepreneurial business? The formal conversation with a worker is doing a good job and appreciating his or her work is a form of compensation A complex form should be followed of all performance reviews that are given in writing to assure its validity If a worker is not performing as expected, then the employer should give only positive feedback to boost the worker's morale A new firm should wait for a year to give feedback, and newer generations of employees are looking for such feedback
A
In general, the greater the debt a business owner is willing to take on, the ______ the risk tolerance. Higher Less Predictable More Predictable Lower
A.
A small business owner must possess all of the following except necessary skills to run the business a sequential formula an in-depth understanding of the market passion for starting a business
B
A type of gap analysis that compares the possibilities in the marketplace with an individuals competence to address those gaps is called Market Analysis Opportunity Analysis Predictive analysis Descriptive Analysis
B.
identify a true statement about gap analysis One should ignore the financial requirements and the non financial resources that a business needs when doing a gap analysis A gap analysis should be completed in a short period of time A gap analysis requires extensive research The first column in a gap an analysis includes a realistic estimation of an individuals personal resources
B.
All of the following are benefits of a subchapter C Corporation EXCEPT owners being treated as employees of the company health benefits paid by the corporation fringe benefits being treated as income no limit to number of shareholders
C
When a small business owner is advertising for a job, the company needs to attract _________ pool of applicants to choose from The smallest The rarest The largest The most educated
C
When conducting a gap analysis, the first column should include the_______ resources resources required business ideas categories
C
Which kind of business is not likely to be eligible for a micro loan program Washing clothes Meals Delivery Telecommunication center Weaving Baskests
C
Which of the following personality tests is based on the philosophy of Carl Jung? Enneagram Insights Myers Briggs Big Five
C
Which of the following statements is true of the Civil Rights Act? It ensures that all individuals are judged according to the discretion of an entrepreneur It provides that each and every business must provide unfettered access to all disabled people. It currently applies to all firms with more than 25 employees. It allows for the promotion of the differently abled employees irrespective of their performance.
C
Which of the following statements is true of the commission compensation system? It creates a rigid compensation system where abuse is minimal and it removes the frustration for the employees and the entrepreneur It creates an overall healthy environment within a firm when the salespeople are very focused on their commission It creates frustration when a firm either does or does not change a commission program to reflect the growth of the firm It creates a uniform system in a firm where every employee is paid the same amount as commission, and it is independent of their performance
C
Brainstorming works well in ______ groups formal advisory informal technical
C.
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 family support organizational slack bounded rationality introversion
C.
In the context of legal forms of business, identify a benefit of a Subchapter S corporation over a Subchapter C Corporation A Subchapter S Corporation can have a larger number of investors than a Subchapter C Corporation. A Subchapter S Corporation has more potential for future expansion than a Subchapter C Corporation. A Subchapter S Corporation has no limitations in the number and type of shareholders unlike a Subchapter C Corporation. A Subchapter S corporation pays for fringe benefits of the owners at its own expense unlike a Subchapter C Corporation
C.
What is the percentage of self-employed people in the workforce 30 10 40 20
D
When a small business owner pays a commission in addition to a basic salary it is called_________ An hourly wage A benefit A tax A hybrid compensation system
D
Which personality test believes that a person is the result of all experiences in his or her lifetime Myers briggs Insights Big Five Enneagram
D
In the context of legal forms of business, a Subchapter S Corporation Treats the owners of the firm as advisory members with little say in the operations of the firm Treats the owners of the firm and the firm itself as the same entity Gives the owners of the firm virtually unlimited liability for its debts and liabilities Allows the owners to treat the income of the firm as part of their personal incomes.
D.
In the context of the entrepreneurial businesses, which of the following is an advantage that small businesses have over big businesses A diverse pool of workers Ability to be financially flexible Large Scale manufacturing Ability to produce small niche products
D.
Incubators for small businesses include all of the following EXCEPT: common receptionist legal expertise space financial loans
D.
James and Mary own a business. When they pay themselves an advance in salary or a bonus, it is called a(n) ________. Draw Expected Outlay Payout Cash out
Draw
Carla and John enter into a partnership and form a business. Under the partnership agreement, Carla is directly responsible for the management of the firm and its liabilities. John has a minor financial stake in the firm and works there, but he is not held responsible for the taxes and debts owed by the firm. In the context of the legal forms of business, Carla and John have formed a _____, sole proprietorship Subchapter C Corporation General Partnership Limited Liability Partnership
LLP
A copyright is good for the life of author plus 70 years. T/F
True
The success of entrepreneurial firms pursuing new opportunities requires a number of deliberate actions by the business founder concerning Human Resources issues. T/F
True
In the context of business designs, one of the advantages of a corporation is that when it suffers losses, the founders will Lose only their investment in the business rather than their life's savings Be absolved of responsibility for the debts of the company Surrender control of the company to investors Be expected to pool their personal finances to rescue the business.
A
In the context of equity funding, identify a characteristic of venture capital funds They tend to invest in high-growth business that can cash out by being bought out by a larger company within a set period of time They seek to make small investments in numerous small-sized businesses and start ups to improve the possibility of consistent returns They raise capital for small businesses by sourcing small investments from multiple individuals They invest in large and established businesses that have slow and steady growth rates
A
In the context of risks to new businesses, identify a true statement about risk tolerance. What constitutes a risk is determined by an entrepreneur by observing his or her own tolerances In new markets, entrepreneurs must be willing to put up with risks that outweigh their personal risk tolerance Risks must be determined by entrepreneurs based on the finding of focus groups with other entrepreneurs in the same industry Entrepreneurs can avoid a majority of the risks associated with new start-ups by allowing competitors to invest in their new businesses
A
Which of the following personality tests was developed by two independent research teams who analyzed data collected from thousands of people? The Big Five test The DISC assessment The Enneagram test The Myers Briggs test
A
______ occur (s) in large companies that have excess resources such as equipment and employees Organizational slack Organizational resources Limited boundaries Unlimited boundaries
A
Identify a true statement about the potential founder of a new business The founder of a new business needs to be intimately involved in its designing, funding, and running An individual who wishes to start a new business should not confine himself or herself to generating ideas based on skills he or she already has An entrepreneur must avoid involving his or her family in a new venture, because such a partnership has a negative impact on running the business An entrepreneur must quickly act on any opportunity he or she identifies to maximize profits
A.
In the context of business risks, how can an entrepreneur identify competitors to a new potential business By observing what potential customers do to satisfy their current needs or wants By observing the market and identifying companies that have seen the maximum growth in the past quarters By conducting a brainstorming session with other entrepreneurs By performing a gap analysis evaluation to identify potential competitors.
A.
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 because the supply structures of established businesses are resistant to incorporating new supply sources because small businesses are typically family-run establishments, making them unreliable in the long run because it is more profitable for established businesses to fulfill any requirements through resources already present within their organizational structures.
A.
Which of the following experiences can entrepreneurs evaluate when generating business ideas based on their education the courses they took that were particularly enjoyable the classmates who made their experience enjoyable the most difficult material in the courses they took the professors whose teaching they enjoyed the most
A.
Which of the following is not included in the second column of labeled categories in a gap analysis? Inventory resources time non financial resources finances
A.
Which of the following laws established a minimum wage for workers The Fair Labor Standards Act The Sherman's Antitrust Act The Civil Rights Act The Americans with Disabilities Act
A.
Which of the following represents the impact of a poor employee on the functioning of a small business? All answers are correct The problems may bleed over to other employees The owner's time is lost The organization does not fully benefit from the employee
A.
An example of a benefit a company can offer is Retirement plan plans All of the answers are correct 401 K Sick leave
B
Carla is a high-net-worth individual who was once an entrepreneur. She now financially invests in small start-ups and businesses. Though Carla funds their initial operations and advises them on the best way to develop their operations, she rarely interferes with their day-to-day operations. In the context of the various forms of equity funding, Carla is most likely an investment banker a business angel a venture capitalist an esset lender
B
During Eisenhower's presidency, who stated that "what is good for General Motors is good for the nation" FDR Charles Wilson Andrew Carnegie Henry Ford
B
In the context of legal forms of business, identify an accurate statement about a general partnership. A single partner operates as the firm's manager and is directly responsible for any debts owed by the firms Established partners can bring in new equity partners by surrendering a portion of their ownership position Owners report their shares of losses or profits independent of their interest in the firm The partner with the largest equity state makes decisions about the firm's operations
B
Several successful businesspeople establish a partnership with each other. They combine their financial resources and use the resultant pool of resources to make equity investments in various high-growth new ventures. In the context of equity funding, the partnership and the pooled resources of the businesspeople are best described as none of the answers is correct a venture capital fund an asset lease arrangement supplier credit
B
Some communities offer facilities that house new businesses and provide resources for them. These are called______ Holding facilities Incubators Small business resource centers Temporary business agencies
B
Sonor Designs is a small business that makes greeting cards. Because of the small scale of the firm's operations, it cannot afford to purchase the expensive printers it needs to make greeting cards. Instead, it rents the printers from another organization. In the context of business financing, Sonor Designs renting essential business equipment from another company is an example of micro-financing asset leasing crowdfunding factoring
B
The catalog of items maintained by a business, which lists the description, quantity, item number, unit cost, and total cost of each item the business carriers, is known as a(n) _________ Payroll record Inventory account Check register Expense account
B
Which of the following is not a factor in a small business's success Business owners have both the opportunity and the responsibility to lead. Other people's needs and wants are not as important as the small business owner's Small business owners want and need to be independent Business owners need to carefully consider the needs of stakeholders
B
Which of the following statements is true about venture capital start-ups They refrain from developing operations in multiple locations very shortly after the initial investment They are funded by angel investors who invest more than $2 million and expect extraordinary returns. They ensure that the business is oriented toward the personal goals of the founders. They have management structure designed to take advantage of the skills of the founder or founders
B
Which one of the following is a huge advantage for a small business owners to start a business? Desire to be efficient and productive Desire to be one's own boss Benefit stakeholders Desire to work for others.
B
_______ is the quantity and quality of human effort directed toward producing goods and services Human skills Human resource management Human knowledge Human power
B
________ a fund that is organized as a limited partnership Asset capital Venture capital Equity Business angel
B
Borealis Computing is a small start-up firm that needs to purchase essential equipment and supplies to begin operations. Gencent LLC, a larger firm, offers to finance Borealis Computing's purchases. Under their agreement, Borealis Computing will repay Gencent LLC overtime at a specified interest rate. In the context of non-equity funding, Gencent LLC's financing of Borealis Computing's purchases is an example of _____. factoring crowdfunding supplier credit equity investment
C
In the context of financing tools available to new businesses, identify a major disadvantage to asset leasing Any assets that are leased must be paid for upfront, making the proposition of leasing nearly as expensive as purchasing new equipment outright Equipment leasing agreements make it difficult for a small business to upgrade to newer machines when their leased machines become obsolete A new business might spend more money on leasing equipment over time if it had bought the equipment outright Major asset leasing companies are unwilling to risk leasing equipment to new businesses
C
In the context of start-ups, new businesses need to be aware of which of the following issue(s) the establishment of an accounting system Funding and funding level of the firm All of the answers are correct How information flows in the business
C
Microloans have been in existence for years; they are most commonly made directly to _____ for self-development. young adults hispanics women men
C
What % of U.S. millionaires are self-employed 25 50 66.7 33 1/3
C
Identify a true statement about a large firm that has organizational slack. The firm's knowledge is concentrated around a few key personnel Each employee is crucial to the survival of the firm The firm enjoys extreme financial flexibility and can survive huge annual losses if necessary. The loss of an employee barely affects the abilities of its workforce.
D
Identify a true statement about credit cards from the following. They have low interest rates. They do not have a set upper limit. They are usually tied to a particular asset None of the answers is correct
D
In the context of good accounting practices, the organizational fund used for expenses too small to write a check for is known as Accounts payable Venture capital An expense account. A petty cash fund.
D
In the context of managing data flow, the _____ of inventory control seeks to minimize excess capital investment in inventory. Safety-stock method Perpetual method Accrual-based method Just-in-time method
D
The success of entrepreneurial businesses occurs partially because they are _____. Characterized by corporate layers of management Responsible to public stockholders Invested heavily in policies and procedures More focused than their large corporate counterparts
D
When forming a sole proprietorship or a partnership, the business debts are Paid the first day of the month Paid by purchase order The responsibility of the firm's equity investors The responsibility of the owners
D
Which of the following questions should a new business owner examine when considering leases Who is responsible for maintenance and improvements? Is there an ability to renew the lease? What exactly is the new business owner leasing? All of the answers are correct.
D
Which of the following statements is true of worker's compensation. Once an employee accepts worker's compensation, he or she cannot sue the entrepreneur for the injury caused by unsafe working conditions It is given to an employee who qualifies for the compensation, regardless of the fault of the owner It is limited to partial wage replacement and medical bills acquired while treating the injury caused at the workplace. All of the answers are correct.
D
The process of generating ideas should occur in a(n) ______ manner and not in a(n) ______ fashion linear, interactive linear, process process, interactive interactive, linear
D.
A business that chooses to form a corporation must have a board of directors. In new small corporations, the board of directors and shareholders must be different individuals. T/F
False
A company can use personality testing, even though there is no direct link between the test and the skill set necessary for the job T/F
False
A contract must always be in written form, and it must be signed by the parties involved. T/F
False
A grant, a form of non equity funding, is expected to repaid at a predetermined interest rate once a beneficiary firms begins to profit from its operations. T/F
False
According to Thomas Stanley and William Donko in their book The Millionaire Next Door, 50 precent of the millionaires in the Untied States are self-employes. T/F
False
Entrepreneurial businesses fail to provide a means to meet the varied demands that individuals face in a society. T/F
False
Entrepreneurs must quickly react to any business opportunities they identify to maximize their gains. T/F
False
Firms that have low initial capitalization have an opportunity to grow faster. T/F
False
Human resource programs for small companies are the same and have the same effect as large businesses T/F
False
In an interview, an owner can ask an applicant if he or she has ever been arrested for a crime. T/F
False
In the context of developing a quality business idea, the first step that an entrepreneur should take is assess their ability to fill gaps in the market. T/F
False
In the late 1970s and 1980s, the United States occupied the dominant economic position in the world. T/F
False
OSHA stands for Office standards and Health Administration. T/F
False
Qualitative gap analysis charts require extensive research into markets and business practices to complete. T/F
False
Marsciva Technologies is an emerging business. The firm considers the owners to be employees of the firm and therefore pays them salaries and bonuses. To reduce corporate tax, the owners of Marsciva Technologies pay themselves nearly all the profits generated so that very little actual profits are reported by the firm. Based on these characteristics, Marsciva Technologies is most likely a Sole proprietorship Subchapter C Corporation Subchapter S Corporation Limited Partnership
Subchapter C Corporation
A difference between copyrights and patents is that copyrights apply to creative materials generated while patents cover specific innovations that are generally industrial or process based. T/F
True
A gap analysis identifies any differences between the demand by customers and the supply provided by firms currently in the market. T/F
True
A loan involves a contractual agreement where a business receives some amount of money that must be repaid over a specified period of time at a specified interest rate. T/F
True
A profit and loss statement represents your business performance over time. T/F
True
An entrepreneurial firm is typically self-funded or closely by the founder. T/F
True
Any business needs to acquire a license to do business in the county or city where the firm will be operating. T/F
True
Banks will lend money for the establishment and maintenance of inventory by arranging a revolving line of credit. T/F
True
Business incubators work best with small manufacturing-based firms. T/F
True
Having very little to lose financially by a failure could be a trigger for a new business. T/F
True
In a small family business, the most important support group is the family T/F
True
John takes out a loan for a necessary machine in his business. This type of loan would be called asset-based lending. T/F
True
Potential Entrepreneurs must determine the level of risk that they are able to tolerate. T/F
True
The federal General Accounting Office did an analysis of the impact of the closure of military bases and discovered that in the areas where military bases closed, the unemployment rate was less than the national average. This is because of the starting up of a new small businesses in the areas. T/F
True
Two triggers for starting a new business are talking to successful entrepreneurs and being laid off from your job. T/F
True
In a lease, a landowner can enter a business premises for all the following reasons EXCEPT Whenever the landowner wants to When the landowner wants to manage the rental property When the landowner wants to inspect it When checking to see if anything is illegal
Whenever the landowner wants to