Entrepreneurship Final T/F Section
The extent and timing of funds needed to move through the venture process is not a critical issue and has little to do with the success or failure of a new venture.
False
The macro view of entrepreneurship can be broken down into three areas: the entrepreneurial trait, venture opportunity, and strategic formulation.
False
The sole proprietorship is the simplest, least expensive form of ownership to begin and the owner and the business are entirely separate.
False
Typically, and entrepreneur is not faced with with many ethical decisions, especially during the early stages of their new venture.
False
Under debt financing an entrepreneur must consciously decide to give up part of the ownership in the venture in return for the funding.
False
Ethics represents a set of principles prescribing a behavioral code that explains what is good and right or bad and wrong; ethics may, in addition, outline moral duty and obligations.
True
Generally, anything that makes an individual company unique and has value to a competitor could be a trade secret.
True
"Monkey Marketing" is a strategy that relies on unconventional, low-cost, and creative techniques so small companies can bring as much more "bang" from their marketing bucks.
False
* The term opportunity pressure describes an ethical lapse that occurs when competition is so intense that a company's survival is threatened an a manager begins to view what once was an unacceptable option as acceptable.
False
A business plan is developed through an intuitive process by which the entrepreneur records his/her plans for the business in the future.
False
A limited liability company does not offer the limited liability like a C corporation.
False
A nascent entrepreneur is an individual who has several years of experience operating as a business owner.
False
A novice entrepreneur is an individual who retains an original business and builds a collection of additional businesses through inheriting, establishing, or purchasing them.
False
A serial entrepreneur becomes a business owner by either inheriting a business or by being given a stake in a family owned business.
False
A trademark provides the owner with the exclusive rights to hold, transfer, and license the production and sale of a product or process.
False
An entrepreneur is considered to have a high tolerance for ambiguity when the entrepreneur cannot deal with the various setbacks and changes that constantly confront them.
False
Because of the fair use doctrine, when designing a website or social media page for a new business, an entrepreneur can use any content, pictures, music, ect. found on the internet and not worry about violating anyone's copyright interest.
False
Each and every person in a communist economic system has the potential and free choice to pursue a career as an entrepreneur.
False
In innovation through duplication, the entrepreneur simply copies someone else's business idea
False
Innovation through perceptual changes is caused by continual shifts in the market due to changes in consumer attitudes, advancements in technology, and industry growth.
False
Large businesses are the common form of business establishment.
False
Obtaining a business license is the same as forming a legal entity for a business
False
Only 20% of all businesses employ fewer than 20 people.
False
Operating expenses are expenditures incurred after the decision has been made to establish a particular business but before business operations begin.
False
Seldom do entrepreneurs get the idea for their new business through prior experiences or while working for companies in the same industries.
False
The common sources of equity financing are commercial banks.
False
The corporation, like the proprietorship, avoids the "double taxation" disadvantage associated with the partnership form of ownership.
False
Whereas investors are generally more interested in security and payback; finance companies, as partial owners of the companies they lend to, are more concerned with the return on the investment.
False
Works created and copyrighted after January 1, 1978, are protected for an unlimited duration.
False
* Pro forma statements are a firm's financial position over a future period (pro forma income statement) and on a future date (pro forma balance sheet).
True
* The business plan presentation should be slow, methodical, and detailed to show the depth of understanding and preparation the entrepreneur has gone to prepare it.
True
* The small business manager should employ the different advertising media than competitors to increase the likelihood of advertising success.
True
* Under a cash system of accounting, revenue and expenses are recorded when received and paid, respectively, without regard for the period to which they apply.
True
A SWOT analysis is used to access an organization's strengths, weaknesses, opportunities, and threats.
True
A gazelle is defined as a business establishment with at least 20% sales growth every year, for over five years, starting with a base of at least $100,000
True
A limited liability company formed and chartered in VA is considered a foreign corporation when doing business in MD.
True
A major source of information about the entrepreneurial perspective is compendiums about entrepreneurs.
True
A new venture will not survive unless there is a market that exists for its products or services.
True
A restrictive covenant is a clause in a contract which prohibits an employee form competing with his ex-employer for a certain period or within a certain geographic area after the employee has left the business
True
Although there is no single definition of an entrepreneur, there are common themes found in defining entrepreneurship.
True
An entrepreneur must be willing to risk their own personal funds in a business venture first, in order for other potential investors and lenders to provide capital for it.
True
Characteristics of successful entrepreneurs can be taught and learned by those who are willing to study them.
True
Depreciation is a financial term used to describe the lost usefulness; expired utility; the diminution of services yield from a fixed asset to fixed asset group that cannot or will not be restored by repairs or by replacement of parts.
True
Economic displacement is concerned with the economic variations of recession and depression - job loss and simple "bad times" can create the foundation for entrepreneurial pursuits.
True
Entrepreneurs can identify viable business opportunities by observing trends, solving problems, or finding gaps in the marketplace.
True
Entrepreneurs who do not prepare a business plan are less likely to get the money they need from a lender or investor.
True
Globalization of business has intertwined what once were distinct cultures; companies have discovered that there is no single standard of ethical behavior applying to all business decisions in the international area.
True
If the partners fail to create an agreement, the UPA (Uniform Partnership Agreement) says that the partners share equally in the partnership's profits, even if their original capital contributions are unequal.
True
In a limited partnership, the liability of each partner is limited to the amount of capital he or she has invested in the partnership
True
In most cases, lenders and investors look for key people, promising opportunity, business context, and risk and rewards in a business plan.
True
Informal risk capitalist often referred to as "business angels" are those who have already made their money and are available to help new ventures.
True
It is wise for an entrepreneur when selecting a business name to search the internet, state corporations commission, and the US Patent and Trademark office to determine its availability.
True
Marketing research involves the gathering of information about a particular market, followed by analysis of the information.
True
Nearly 80% of would-be entrepreneurs in the US are between the ages of 18 and 34.
True
Proper financial management requires more than gathering financial data and organizing it into financial statements; the entrepreneur must analyze those statements and use that information to make better business decisions.
True
Several highly successful brands eventually failed because of poor quality, management, and locations.
True
Some of the reasons why many entrepreneurs fail to engage in marketing research are cost, complexity, irrelevancy, and lack of need in making strategic decisions.
True
Techniques for generating ideas may include having brainstorming sessions, hosting focus groups, conducting surveys, and establishing customer advisory boards.
True
The ecology pertains to such issues as pollution and waste disposal, recycling of usable materials, protection of wildlife preserve areas, workplace safety and hazards, and the general quality of life.
True
The entrepreneurial ego may be manifested if the entrepreneur has an overriding desire for success and an overbearing need for control.
True
The four main areas of environmental assessment include the societal environment, the specific industry environment, the community perspective, and the venture organization.
True
The four phases of the creative process are knowledge accumulation, incubation, idea experience, and implementation/evaluation.
True
The utilitarian principle evaluates ethical behavior based on choosing the option that offers the greatest good for the greatest number of people.
True
To draw customers to a new venture, an entrepreneur should provide performance or services that are superior to competitive offerings.
True
Trends signal shifts in the current paradigm (or thinking) of the major population. Observing trends closely will grant an entrepreneur the ability to recognize a potential opportunity.
True
Unlike a limited partnership, which prohibits limited partners from participating in the day-to-day management of the business, an LLC does not restrict its members' ability to become involved in managing the company.
True
When a "bad barrel" ethical lapse occurs, the company culture has been poisoned with an unethical overtone and unethical behavior is rewarded.
True
When examining a community's economic base, it is wise to examine any community dependence on one large firm or industry or how a community may be impacted by seasonal or cyclical fluctuation.
True
When preparing the business plan, the entrepreneur should not assume that the investor understands the business the entrepreneur is starting.
True
When selecting a location for a new business venture, it is important to examine population trends in order to identify expanding communities as opposed to long-term declining or static populations.
True