ENT-2113-002 Exam 1

When was the initial development of the large industrial base of the United States?

1880s

What are included in the first column of the chart used in the gap analysis? (Check all that apply.) Multiple select question. A brief explanation of the idea An estimation of personal resources The business idea The category used to analyze the idea

A brief explanation of the idea The business idea

_____ is a managerial theory that believes individuals act to maximize their own benefit.

Agency theory

Which of the following are typical triggers for starting a business? (Check all that apply.) Multiple select question. Being approached by friends or family with a new business idea Being laid off from a job Reaching a point financially where the risk-return level of a proposed new business is tolerable Having a lot to lose financially by a failure

Being approached by friends or family with a new business idea Being laid off from a job Reaching a point financially where the risk-return level of a proposed new business is tolerable

Which of the following are typical triggers for starting a business? (Check all that apply.) Multiple select question. Being laid off from a job Being approached by friends or family with a new business idea Having a lot to lose financially by a failure Reaching a point financially where the risk-return level of a proposed new business is tolerable

Being laid off from a job Being approached by friends or family with a new business idea Reaching a point financially where the risk-return level of a proposed new business is tolerable

What is included in the second column of the chart used in the gap analysis?

Categories of analysis

The underlying philosophy of the ______ test is that people are a result of all the experiences of their life. Multiple choice question.

Enneagram

Which of the following statements make interviewing key successful entrepreneurs an attractive way to identify opportunities or gaps? (Check all that apply.) Multiple select question. Entrepreneurs have a keen eye for what businesses are needed in an area. Most successful entrepreneurs have great ideas. Most successful entrepreneurs are too busy with their own business to pursue new ventures. Most entrepreneurs are not willing to advise new entrepreneurs.

Entrepreneurs have a keen eye for what businesses are needed in an area. Most successful entrepreneurs have great ideas. Most successful entrepreneurs are too busy with their own business to pursue new ventures.

Which of the following statements regarding personal motivations are correct? (Check all that apply.) Multiple select question. Entrepreneurs who are driven by personal motivators more relentlessly pursue their goals. Entrepreneurs who are driven by personal motivators often make career and life-altering changes regardless of practical advice. Entrepreneurs who are driven by personal motivators often take advantage of a sudden change in the business environment. Entrepreneurs who are driven by personal motivators are often more proactive.

Entrepreneurs who are driven by personal motivators more relentlessly pursue their goals. Entrepreneurs who are driven by personal motivators often make career and life-altering changes regardless of practical advice. Entrepreneurs who are driven by personal motivators are often more proactive.

Which of the following are pairs of variables in the Myers-Briggs test? (Check all that apply.) Multiple select question. Judgment-perception Risk-experience Extroversion-introversion Sensing-intuiting

Extroversion-introversion Judgment-perception Sensing-intuiting

Which of the following sources of skills for a new business is often the most overlooked? Multiple choice question.

Family experiences

Which of the following are supports that entrepreneurs rely on? (Check all that apply.) Multiple select question. Financial resources Social networks Family Current boss

Financial resources Social networks Family

Which periodical is published annually and documents the 500 largest corporations by sales in the United States?

Fortune

The___________ refers to the fact that women and minorities may be hired by large firms but they experience limits placed on their advancement within the firm.

Glass Ceiling

According to the World Bank, the presence of entrepreneurial small- and medium-sized enterprises is one of the strongest factors in the growth of any nation's ______.

Gross National Product

The Enneagram's nine personality types include which of the following? (Check all that apply.) Multiple select question. Helper Businessman Reformer Achiever

Helper Reformer Achiever

The greater the debt an entrepreneur is willing to take on to start the business, the__________ his or her risk tolerance.

Higher

Which of the following contribute to personal skill sets? (Check all that apply.) Multiple select question. Hobbies Current work experience Past work experience Family history Cultural background

Hobbies Current work experience Past work experience Family history

Identify a finding of the federal General Accounting Office's (GAO's) analysis of the impact of the closure of military bases.

In cities with base closings, several new businesses rose up to fill the economic gap that had resulted from the closings.

A business__________ is a facility that houses new businesses and provides many critical services.

Incubator

Why are hobbies a good skill source? (Check all that apply.) Multiple select question. Hobbies tend to be tied to formal education. Individuals are passionate about their hobbies. All hobbies are business opportunities. Hobbies require the development of specific skills.

Individuals are passionate about their hobbies. Hobbies require the development of specific skills.

Which of the following is a principal cause of new business failure?

Insufficient financial resources at founding

Identify a true statement about organizational slack.

It provides large organizations with flexibility that is unavailable to the typical entrepreneurial venture.

Identify the characteristics of a gap analysis for a new venture using a chart. (Check all that apply.) Multiple select question. It determines if the business can be profitable in the long term. It requires minimal or no research. It is a reasonably quick analysis. It is a quantitative analysis.

It requires minimal or no research. It is a reasonably quick analysis.

Which of the following are correct regarding the characteristics of large businesses? (Check all that apply.) Multiple select question. Knowledge is widely dispersed throughout the business. They do not typically hire outside experts due to their size. No one person is critical to the business's survival. They have greater excess resources.

Knowledge is widely dispersed throughout the business. No one person is critical to the business's survival. They have greater excess resources.

If one has a low risk tolerance, one is likely to spend ____ and save ____. Multiple choice question.

Less; More

Which of the following steps are important to the development of a quality business idea? (Check all that apply.) List and evaluate one's personal skill sets. Analyze the market and look for a gap or need not being met effectively. Compare one's ability to fill the gaps with the opportunity available. Complete a comprehensive financial analysis to determine feasibility. List and assess one's assets and resources.

List and evaluate one's personal skill sets. Analyze the market and look for a gap or need not being met effectively. Compare one's ability to fill the gaps with the opportunity available.

Which of the following steps are important to the development of a quality business idea? (Check all that apply.) Multiple select questions. List and assess one's assets and resources. List and evaluate one's personal skill sets. Analyze the market and look for a gap or need not being met effectively. Compare one's ability to fill the gaps with the opportunity available. Complete a comprehensive financial analysis to determine feasibility.

List and evaluate one's personal skill sets. Analyze the market and look for a gap or need not being met effectively. Compare one's ability to fill the gaps with the opportunity available.

Which of the following is NOT one of the three types of specific risks?

Network

Which of the following businesses could be most likely pursued by individuals who do NOT prefer to work with people? (Check all that apply.) Multiple select question. Order fulfillment Internet-based businesses Retail business Bookkeeping

Order fulfillment Internet-based businesses Bookkeeping

Excess resources in an organization that allow for redundancy and the quick deployment of personnel in crisis are referred to as ______ ______ . (Enter one word in each blank.)

Organizational Slack

_________Motivation comes from the individuals themselves

Personal

__________ motivations come from the individuals themselves.

Personal or Self

The third element of entrepreneurial orientation is an examination of your own: Multiple choice question.

Personality

In the context of nonfinancial resources, which of the following are to be considered in a gap analysis for a new business? (Check all that apply.) Multiple select question. Estimates of retirement accounts Physical location of the business Cost of renovation and equipment Special contacts with customers Special contacts with suppliers

Physical location of the business Special contacts with customers Special contacts with suppliers

The triggers for starting a business can come from either__________ or negative stimuli that occur in the individual's life.

Positive

Which of the following are components of the entrepreneurial orientation concept? (Check all that apply.) Multiple select question. Financial expertise Prior experience Risk tolerance Personality orientation

Prior experience Risk tolerance Personality orientation

Which of the following support the rationale for starting a business idea generation process by analyzing the skill sets of the potential founders? (Check all that apply.) Multiple select questions. There are only a few opportunities in a wide variety of fields. Pursuing opportunities without the requisite skill set wastes time. There are literally millions of opportunities. Pursuing opportunities without the requisite skill set wastes money.

Pursuing opportunities without the requisite skill set wastes time. There are literally millions of opportunities. Pursuing opportunities without the requisite skill set wastes money.

The process of business development from scratch and the process followed by established businesses are ______.

Quiet Different

The process of business development from scratch and the process followed by established businesses are ______.

Quite Different

Identify the typical triggers for starting a business. (Check all that apply.)

Receiving evidence that an idea is not only doable, but improve on a given problem Experiencing the inability to climb the corporate ladder due to circumstances Being spurred to action by attending a seminar, reading a book, or talking with successful entrepreneurs

All new businesses have an inherent amount of____________ associated with the starting and operation of the business.

Risk

Potential entrepreneurs must understand their level of tolerance to___________

Risk

Potential entrepreneurs must understand their level of tolerance to____________

Risk

Who is associated not only with the success of the industrial base but also with the great abuses in business?

Robber Barons

Who is associated not only with the success of the industrial base but also with the great abuses in business?

Robber barons

Large firms can obtain economies of ________ in some industries because of their ability to operate on a larger scale than can a small firm.

Scale

Large firms can obtain economies of__________ in some industries because of their ability to operate on a larger scale than can a small firm.

Scale

An individual's work experience builds___________ sets that can have direct applicability to the pursuit of a new business.

Skill

Without the needed _____, the founders would be faced with not holding any advantage over the competitors who have the necessary depth in the area.

Skill

According to the 2019 statistics from the United States Small Business Administration, 99.9 percent of all businesses in the United States are:

Small

In the context of businesses listed in Fortune 500, Henry Ford (Ford Motor Company), Steve Jobs (Apple), Ralph Lauren (fashion), and Sam Walton (Walmart) all started out as _____.

Small Business Owners

Entrepreneurs should work with family members for their advice, potential funding, reality check, and__________ ________.

Support Structure

What is the connection between the entrepreneur's skills, understanding of an industry, and the ability to create a competitive advantage such that the sum of the parts of the new business is greater than the individual parts alone?

Synergy

Which of the following statements is directly associated with the circumstantial motivators for starting a business?

The staying power of an opportunistic start-up is mainly determined by other competing opportunities

Which of the following statements regarding entrepreneurial businesses are correct? (Check all that apply.)

They have limited flexibility in responding to emergency issues such as the need to hire replacements if the company loses key individuals. They are generally dependent on a single person or a few individuals.

Which category of the gap analysis is typically grossly underestimated by entrepreneurs?

Time

When starting a business, one must understand the relationship between _____ and the expected return. Multiple choice question.

Time Commitment

Starting a business is often the result of an event or condition within an individual's environment called a(n)_________

Trigger

True or false: An entrepreneur's risk tolerance, prior experience, and personality orientation shape their analysis of a business idea's potential.

True

True or false: Family experiences are an often overlooked source of skills for a new venture.

True

True or false: It is likely for an entrepreneur to spend more time starting and running the business than doing anything else in life.

True

True or false: Small businesses have greater flexibility in responding to changes that take place in their external environment.

True

True or false: The Myers-Briggs test is one of the most widely used personality tests.

True

True or false: The high level of family commitment is a key reason why family businesses are able to survive and prosper.

True

True or false: The one-page pitch created by a new entrepreneur while developing a business plan should offer an effective starting point for every potential supplier, employee, or investor.

True

An entrepreneur's support and resources are typically_________ to the individual and the location.

Unique or Specific

Which of the following are questions an entrepreneur should address regarding education? (Check all that apply.) Multiple select question. What courses taken were particularly enjoyable? Have you attended any unusual education programs? Was the education administered by a formal institution? Have you taken specialized training in any specific area?

What courses taken were particularly enjoyable? Have you attended any unusual education programs? Have you taken specialized training in any specific area?

Identify the questions that should be considered by an entrepreneur when analyzing the nonfinancial resources category of a gap analysis for a new business. (Check all that apply.) Multiple select question. What peculiar capabilities offer the entrepreneur a competitive advantage? What level of risk to personal reputation is the entrepreneur willing to live with? What are the limiting factors in the growth of the new business? What unique skills will be needed to run the business?

What peculiar capabilities offer the entrepreneur a competitive advantage? What unique skills will be needed to run the business?

Which of the following questions could be explored to identify additional skill sources? (Check all that apply.) Multiple select question. What type of magazines and books do I read? How much money do I want to make working for my own business? In what industry would I prefer to work? What skills were involved in the three greatest accomplishments of my life?

What type of magazines and books do I read? In what industry would I prefer to work? What skills were involved in the three greatest accomplishments of my life?

Which source of skills typically has direct applicability to the pursuit of a new business?

Work Experience

The nature of the effort required for an entrepreneur to carry out an effective due diligence analysis necessitates _____.

a focus on a single business idea

Without the needed skills, the founders would be faced with not holding any advantage over the _______ who have the necessary depth in the area.

competitors

Large firms can sometimes do things more efficiently because of their ability to operate on a larger scale than can a small firm. This implies that large firms obtain ______ in some industries

economies of scale

Large firms can sometimes do things more efficiently because of their ability to operate on a larger scale than can a small firm. This implies that large firms obtain ______ in some industries.

economies of scale

Large businesses often have _____.

extensive written procedures

Large businesses often have______

extensive written procedures

Entrepreneurs need to ensure they have sufficient__________ resources prior to starting a business.

financial

The success of entrepreneurial businesses occurs because they are simply more _____ than their larger corporate counterparts.

focused

Once a list of skills and abilities has been developed, the next step is to perform a _______ to examine the marketplace for an opportunity that exists between the demand for a product and the supply provided by firms in the market. Multiple choice question.

gap analysis

According to the World Bank, the presence of entrepreneurial small- and medium-sized enterprises is one of the strongest factors in the growth of any nation's ______.

gross national product

Personality tests can _____.

help one better understand one's traits and tendencies

personality tests can _____.

help one better understand one's traits and tendencies

People in an entrepreneur's network can help by providing ______ to a new business.

legitimacy

The steps in the process of generating ideas do not occur in a(n) ______ fashion but should occur in a(n) ______ manner.

linear; interactive

To fully utilize family resources, entrepreneurs should_____. (Check all that apply.) focus on members who are likely to provide funding for favorable terms make a list of members that they have regular contact with list the capabilities those individuals possess that might be helpful

make a list of members that they have regular contact with list the capabilities those individuals possess that might be helpful

Once a list of skills, abilities, and interests has been developed, the next step is to: Multiple choice question.

perform a gap analysis.

Entrepreneurs need to have a(n) ______ vision of what resources are necessary in order to be successful. Multiple choice question.

realistic

Research suggests that successful new business ideas are NOT determined by your: (Check all that apply.) Multiple select question. creativity. thoughtfulness. religion. race. gender. parents.

religion. race. gender. parents.

Threats to profit margin, threats to operational financing, and threats to sales generation schemes are three threats to business success that entrepreneurs consider when they examine and characterize business ______. Multiple choice question.

risk

A personality test can help one _____.

select the type of business to start

The World Bank estimates that one of the strongest factors in the growth of any nation's GNP is the presence of entrepreneurial _____ enterprises. Multiple choice question.

small- and medium-sized

By providing resources that new businesses cannot otherwise afford on their own, incubators can help these businesses establish _____.

some level of legitimacy

Successful business ideas are determined by the following:

the creativity of the entrepreneur.

The greatest advantage of an entrepreneurial business is that it is owned and run by _____. Multiple choice question.

the same person(s)

Entrepreneurs' prior experience plays a role in new business creation through _____.

their view of the world

Entrepreneurs can examine business risk by considering three threats to business success. Those three threats are: threats to the profit margin. threats to demographic trends. threats to sales generation schemes. threats to operational financing. threats to total quality management.

threats to the profit margin. threats to sales generation schemes. threats to operational financing

Examining ______ around the region, nation, or world that may not have reached a particular location is one way of identifying business opportunities or gaps. Multiple choice question.

trends