ENTR Final Try2
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.
Small business owners are often guarded about their businesses, which leads to
distrust of others when formulating a strategic plan.
Financing includes all of the following except
equitable payback.
Which of the following would be most commonly used for intermediate-term financing?
finance companies
The reason many small business managers lack expertise is that they are
generalists.
Bottom-line measures of economic performance include all of the following except:
global competition.
All of the following are characteristic of entrepreneurial cultures except
hierarchy.
Emotional bias is likely to have what effect on a seller's valuation of a business?
increase the valuation
When starting a business, which of the following sources of financing are least likely to be used?
insurance companies
Which of the following would be most commonly used for long-term financing?
insurance companies
An entrepreneurial successor is someone who
is ingenious, creative, and driven.
A patent gives the holder a temporary
monopoly.
Succession pressure inside the firm exists
when family members want to keep and manage the business themselves.
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.
Formation of long-range plans for effective management in light of a venture's strengths and weaknesses is referred to as
strategic planning.
The adverse impact of can be so destructive that individuals within the enterprise will tend to avoid entrepreneurial behavior.
traditional management techniques
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
Corporate entrepreneurial strategy should be thought of as
vision directed.
The "dark side" of entrepreneurship refers to
a destructive force within the energetic drive of entrepreneurs.
Which is not perceived as a difficulty in long-range planning?
arranging vacation time
Which of the following is a type of equity financing?
common stock
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
Which of the following should not be considered when buying a business?
employee retention
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.
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.
Each of the following are nonfamily elements under pressure and interest from outside the firm except
increased insurance rates.
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
One of the advantages of public offerings is
liquidity.
An L3C is a new legal form for social enterprises known as
low-profit, limited liability companies.
Venture capitalists are experienced professionals who provide a full range of service for new ventures including
management consulting.
To establish a sole proprietorship, a person needs to
obtain whatever local and state licenses are necessary.
A clear pattern among successful entrepreneurs is
their focus on opportunity rather than resources.
Characteristics often attributed to the entrepreneur include:
Commitment, determination, and perseverance
Which of the following activities does not characterize the social entrepreneur?
operating with a low sense of accountability
All of the following are recognized as advantages of partnerships except
possible tax advantages.
The discounted earnings method of valuation establishes
potential earning power.
TBL focuses on all the following except
precedence.
Which of the following is not a question in the corporate entrepreneurial planning process?
Has the firm met government regulations for innovation?
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.
Research shows that many privately held firms go out of business within
10 years.
Design patent protection lasts for _____ years.
14
__________ refers to conducting a thorough analysis of every facet of an existing business.
Due diligence
Which of the following statements is false?
Entrepreneurs are born with the skills necessary to manage a business.
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.
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
Price/earnings ratio is a method of valuation that is
mostly used with publicly held corporations.
Many new ventures find that debt financing is
necessary.
Which of the following would be considered a fatal mistakes in strategic planning, according to researcher Michael E. Porter?
no real competitive advantage
Which of the following terms is synonymous with social lending?
peer-to-peer (P2P) lending
In attempting to create an entrepreneurial climate, the organization should consider that
the corporations that promote personal growth will attract the best people.
Generally, entrepreneurial stress is due to
the discrepancy between the entrepreneur's expectations and the ability to meet demands.
Copyrights may be expressed in all of the following except
records.
A disadvantage of debt financing is
regular interest payments.
Which of the following is an advantage to developing an entrepreneurial environment?
retention and motivation of the best employees
The basic challenge for social enterprise is addressing the obligations of business to
society.
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
Analysis of a firm's external and internal environments provides the firm with the information to develop
strategic intent and strategic mission
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 businesses.
One reason why corporate entrepreneurship has done so well is that it allows organizations to
tap the innovative talents of their people.
The decision to behave entrepreneurially is the result of the interaction of
the individual's personal entrepreneurial mind-set and an opportunity.
The past is the best predictor of the future, according to which mind-set?
the managerial mind-set
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 textbook describes three types of leadership of consequence to new ventures. What are they?
visionary, strategic, and managerial
