Entrepreneurship Exam 1

Which of the following is an important driver of the economic success of a community?

New business development

Which of the following are characteristics of venture capital-backed firms?

They have a developed organizational structure, are formed with a harvest plan in place, either start or grow quickly to employ a relatively large number of employees

Which of the following statements are true regarding robber Barons

They were responsible for some of the great abuses in business They dominated the industrial sectors They took advantage of the economies of scale

Economies of scale is the condition that allows the long-run average cost to continue ------- as production -------

downward, increases

Large firms can obtain -------- -- ----- in some industries because of their ability to operate on a large scale then can a small farm

economies of scale

Which of the following advantages that small, new businesses have?

Fill niches that large firms simply cannot afford to fill Owned and run by the same person(s) Can respond quickly to opportunities or threats as they arise

Which of the following groups might be included in an entrepreneur's key support network?

Friends from school Former Employers

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

A(n) ------- plan is a plan to exit the business that allows investors to take advantage of growth

Harvest

Which of the following are questions an entrepreneur should address regarding education?

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

------ are often for only a few dollars each and are made directly to entrepreneurs to encourage self development in developing nations

Microloans

Unlike the business plan of a venture capital-backed business, the entrepreneurial business plan is developed as a

guide for running the business

A business ------ is a facility that houses new businesses and provides many critical services

incubator

An excess of resources in an organization that allows for redundancy and the quick deployment of personnel is referred to as

organizational slack

----- motivations come from the individuals themselves.

personal

The business plan for a new entrepreneurial business is developed to serve as a guide to manage the business, to provide potential investors with information to evaluate the business, and to

provide a self-evaluation

Individuals or other organizations that may impact the success of a business and depend on the success of the business for their own livelihood are known as

stakeholders

The first category of start-up businesses are those formed as high-growth, often high-tech, ventures and are referred to as

venture capital-backed firms

Which of the following about agency theory are correct?

Managers are considered agents Owners always maximize the value of the business Agents often maximize their own benefits

A gap ----- is the relatively simple process of systematically examining the difference between what is expected and what occurs

Analysis

Which of the following need to be evaluated in order to provide potential investors with the critical information required when developing a business plan for a new entrepreneurial business

Cash flow Management team Competitive advantage

Which category on the gap analysis chart would examine companies doing the same thing as the new potential business?

Competitors

Along with being properly financed and developing sustainable profit margins, in order to successful, entrepreneurs must:

Develop an effective sales generation model

Which of the following are ways entrepreneurial businesses can act as catalysts for societal change

Entrepreneurial businesses are willing to pursue smaller market ignored by large corporations Entrepreneurial businesses have an understanding of a local community

Which of the following are reasons why entrepreneurial businesses are successful

Fewer layers of management Free to place energy into satisfying the needs of the customer Tend to be more focused than large corporations

The process of ------, -----, ------ have a new business is unique and has developed into a popular area of study at colleges around the globe

Initiating Developing Running

Which of the following statements are true regarding education as it relates to skill sets?

Knowledge gained from formal education provides a skill set Technology skills acquired through education can be particulary valuable An opportunity that uses your education is another source of business

The Fortune 500 is published annually by Fortune magazine and documents the 500 largest corporations by ----- in the United States

Sales

Include key suppliers, customers, and, employees. These individuals are critical to the success of the business

Stakeholders

Which of the following descriptions are characteristics of entrepreneurial firms?

The number of employees will not be expected to grow beyond 100, the start-up is self-funded or closely funded, the operation is designed in the image of the founder

Which of the following statements regarding entrepreneurial businesses are correct?

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

Which of the following are examples of family experiences that build knowledge and can grow into a new business opportunity?

Tracing the family history Working on the home Maintaining the family property Cooking with family

Which of the following questions should be addressed by an entrepreneur when reflecting on family experience?

What skill sets exist within your family? Are there unique things your family does that others are interested in? What is your family history with new business ventures?

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

Work experience

The practice, example, and the skill of the founder is the ___ part of entrepreneurial business development

art

The process involved in gap analysis is more --- than ----

art; science

New business owners need to be sure that the level of risk is consistent with their...

background values family situation

---- ---- is rational decision making that is constrained by the background and history of the person making the decision

bounded rationality

When a firm reaches its break-even point, the revenues are ----- its expenses

equal to

Large businesses often have

extensive written procedures

Entrepreneurs need to ensure they have sufficient ------ resources prior to starting a business

financial

Small Business Development Assistance Centers provide...

free advice to new businesses

The United States Small business Administration was organized to

provide info at all levels of org provide assistance at all levels of management aid, counsel, and protect the interests of small business

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

trigger