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