ENT-340 Final Exam Review

Which of the following is not a common myth about entrepreneurs? a.) Entrepreneurs are academic and social misfits b.) Entrepreneurs are doers, not thinkers c.) Entrepreneurs today are considered heroes d.) All you need to be an entrepreneur is money

Entrepreneurs today are considered heroes

In order to obtain a patent, an application should be filed with the a.) Office of Government Publications b.) Patent and Trademark Office of the Department of Commerce c.) Government Accounting Office d.) United States Small Business Association.

Patent and Trademark Office of the Department of Commerce

_______ is one of the disadvantages of going public a.) Value b.) Form 8-K c.) Shareholder pressure d.) Liquidity

Shareholder pressure

Entrepreneurs can best orient their plans toward the future by a.) informing investors of how wealthy they will be in five years b.) developing trends and forecasts that describe what the venture intends to do c.) identifying opportunities for future investment d.) planning 20 years ahead

developing trends and forecasts that describe what the venture intends to do

Entrepreneurs always a.) start their business at a young age b.) quit school and devote themselves to being an entrepreneur c.) use credit cards to start their own businesses d.) generate ideas and plan for their implementation

generate ideas and plan for their implementation

From an entrepreneur's standpoint, financial statement analysis is useful because it a.) is a way to anticipate conditions b.) only displays a series of various ratios c.) is good for predicting the future d.) is helpful in creating the R&D budget

is a way to anticipate conditions

A new business faces two great dangers: the possibility that it will not find a market for its goods or services and the chance that a.) it will not be able to control its costs b.) the profits of the business and losses are too great to survive c.) it will not be able to retain great employees d.) the entrepreneur will lose his or her passion for the business

it will not be able to control its costs

The ________ approach indicates the importance of people's awareness of their daily lives for developing new business ideas. a.) new-new b.) old-old c.) old-new d.) new-old

new-new

Which of the following helps an entrepreneur avoid the pitfall of not having realistic goals? a.) identifying a niche market b.) setting up a timetable of specific steps c.) following up on professional appointments d.) developing employee zeal

setting up a timetable of specific steps

A drawback to the price/earnings ratio method is that a.) the stock of a private company is publicly traded b.) the stated net income of a private company may not truly reflect its actual earning power c.) it is relatively easy to find a truly comparable publicly held company, even in the same industry d.) it distorts profits earned

the stated net income of a private company may not truly reflect its actual earning power

Which of the following is not a disadvantage of a major franchise? a.) franchise fees b.) control exercised by the franchisor c.) track record of the franchisor d.) awareness of unfilled promises from franchisors

track record of the franchisor

Which of the following is a psychological characteristic of consumers? a.) social class b.) aspiration c.) family influence d.) income

aspiration

The second step in planning a strategy of entrepreneurship for the enterprise is a.) identifying specific objectives b.) sharing the vision of innovation c.) applying the exact tools of the entrepreneur d.) developing and encouraging innovation

developing and encouraging innovation

Which of the following is not a twenty-first century trend in entrepreneurship? a.) Venture capital has declined, and angel financing is scarce throughout the world b.) There has been an enormous growth of interest in entrepreneurship around the world c.) Entrepreneurial education has slowed as a topic of study d.) Corporate entrepreneurship has had unprecedented popularity among the new generation of entrepreneurs

There has been an enormous growth of interest in entrepreneurship around the world

Which of the following statements about entrepreneurs is false? a.) They burn with the competitive desire to excel b.) They see the cup half full rather than half empty c.) They do not use failure as a tool for learning d.) They are achievers

They do not use failure as a tool for learning

The "dark side" of entrepreneurship refers to a.) a destructive force within the energetic drive of entrepreneurs b.) the part of entrepreneurship that is most exciting c.) a misunderstanding about the results of entrepreneurship d.) another myth of entrepreneurship.

a destructive force within the energetic drive of entrepreneurs

A common pitfall in selecting a new venture is a.) poor financial understanding b.) proper objective evaluation c.) real insight into the market d.) having a good idea

poor financial understanding

Problems associated with the managerial team include a.) being high-risk takers b.) poor relationships with parent companies c.) verbal agreements made to venture capitalists d.) filing lawsuits

poor relationships with parent companies

Which of the following costs do not add to the cost of franchising? a.) insurance b.) prepaid utility bills c.) legal and professional fees d.) opening product inventory

prepaid utility bills

All of the following are important characteristics for establishing an intrapreneurial climate except a.) the presence of explicit goals b.) feedback c.) positive reinforcement d.) punishment of mistakes

punishment of mistakes

Which of the following is not a method of collecting primary data? a.) review of government publications b.) telephone c.) mail survey d.) observation

review of government publications