Exam Entrepreneurship

In ________, a superior conditions the granting of a benefit such as a promotion or raise on the receipt of sexual favors from a subordinate.

quid pro quo

The premise behind ________ is that transforming an idea into an actual model will lead to improvements in its design.

rapid prototyping

The three "R's" of socially responsible business are "reuse," "recycle," and "________".

reduce

The majority of small companies are concentrated in the ________ and ________ industries.

retail; service

Which hemisphere of the brain processes information all at once and by relying heavily on images?

right hemisphere

The recent number of job losses in large corporations compared to the jobs created by small business has changed the perception of ________ for launching a new business.

risk

All of the following represent barriers to creativity that entrepreneurs impose upon themselves except ________.

searching for more than one answer

John has come to you for advice on starting a business venture. He wants to know the best way to gain the experience he'll need. You suggest that he ________.

seek knowledge and experience in the field he wishes to enter

The most blatant and most potentially damaging form of ________ harassment is quid pro quo.

sexual

________ entrepreneurs are finding the resources to tackle challenging problems such as habitat destruction, AIDS, hunger, and poverty

social

________ responsibility is how an organization responds to the needs of the many elements in society.

social

________ sets behavioral boundaries for decision makers

social responsibility

Copyrights protect the creator of original works such as ________.

software, choreography, and motion pictures

The various groups and individuals who affect and are affected by a business are called ________.

stakeholders

Small companies that have expanded successfully into foreign markets tend to rely on all but which of the following strategies?

Focus on many countries initially.

Which of the following is NOT one of the forces driving the entrepreneurial trend in our country?

Shift away from a service economy.

Which of the following is not an enhancement to individual creativity?

Working without breaks until the project is complete or the problem is solved.

Harvard's Ted Levitt says that creativity is ________ new things, and innovation is ________ new things.

thinking;doing

Nearly ________ of entrepreneurs start their businesses between the ages of 20 and 44 and the number of Americans in that age range currently is ________ .

three-fourths; 103 million

Employees must be given the tools and resources they need to be creative. One of the most valuable set of resources is ________.

time, support and encouragement

Any distinctive word, phrase, symbol, name, or logo a firm uses to distinguish itself or its products is called a ________.

trademark

A strong determinant of moral behavior is ________.

training

Which stage of the creative process involves viewing the similarities and differences in the information collected?

transformation

Potential drawbacks of entrepreneurship may include ________.

uncertainty of income, risk, long hours, and high stress

The ________ population is the fastest-growing sector in the United States

Hispanic

Factors that feed the economic boom behind entrepreneurship include ________.

[All of the above] -the shift to a service-based economy and international opportunities -demographic and economic factors -technology and cloud computing

Entrepreneurs who repeatedly start businesses and grow to a sustainable size before striking out again are known as ________ entrepreneurs.

Serial

________ is a written statement of the standards of behavior and ethical principles a company expects from its employees

code of ethics

________ is a statement that defines the values underlying the entire company and its ethical responsibilities to its stakeholders.

company credo

The ability to see the connections among various data and events is called ________.

convergent thinking

Entrepreneurial couples who work together as co-owners of their business are referred to as ________.

copreneurs

A ________ is an exclusive right that protects the creators of original works such as literary, dramatic, musical, and artistic works.

copyright

According to the ________, one should "treat other people the way you would like them to treat you."

golden rule

The driving force behind immoral management is ________.

greed

The demographic attributes of successful entrepreneurs are ________.

highly diverse relating to age, gender, and ethnicity

A ________ environment usually requires a pattern of offensive sexual behavior rather than a single, isolated remark or display

hostile

At which stage of the creative process does a spontaneous breakthrough occur, allowing all of the previous stages to come together to produce the "Eureka factor" or the "light bulb goes on"?

illumination

The focus of which of the following step in the creative process is to transform the idea into reality?

implementation

Companies really are not ethical or unethical; ________ are.

individuals

The ability to apply creative solutions to problems and opportunities to enhance or to enrich people's lives is called ________.

innovation

Which stage of the creative process requires one to develop a solid understanding of the problem or decision?

investigation

The right brain is guided by ________.

kaleidoscopic, lateral thinking

The ________ is the narrowest level of ethical standards

law

The ________ merely establishes the minimum standard of behavior

law

Which hemisphere of the brain is responsible for language, logic, and symbols?

left hemisphere

Which hemisphere of the brain processes information in a step-by-step fashion?

left hemisphere

All of the following are enhancements to individual creativity except ________.

limiting your reading sources

The left brain is guided by ________.

linear, vertical thinking

The United States is moving toward a "minority ________."

majority

In addition to the opportunity to create their own destiny and enjoy what they do, entrepreneurs also benefit from the ability to ________.

make a difference in an area important to them and be recognized for those efforts

The primary cause of small business failures is ________.

management mistakes

Small companies that operate globally from their inception are referred to as ________.

micromultinationals

________ is a graphical technique that encourages thinking on both sides of the brain, visually displays the various relationships among the ideas, and improves the ability to view a problem from many sides.

mind mapping

________ may be the result of failing to realize that an ethical dilemma exists, or it may arise from a variety of mental defense mechanisms.

moral blindness

Most startup companies can expect to need ________ capital than they anticipate.

more

The majority of new business owners work ________.

more than 40 hours per week

Entrepreneurs who start businesses because they cannot find work any other way are ________.

necessity entrepreneurs

International opportunities are ________.

now within the reach of entrepreneurial businesses and may present significant opportunities

Earning a profit may not be a company's ________ responsibility.

only

Entrepreneurs tend to be overly ________ and commonly misjudge the ________ requirements of going into business.

optimistic; financial

The ________ environment has an impact on the level of people's creativity.

physical

Which stage of the creative process includes on-the-job training?

preparation

Research into the operation of the human brain shows that each hemisphere of the brain ________.

processes information differently

The three parts of the triple bottom line are ________.

profit, people, and planet

Most entrepreneurs believe that ________ is what matters most, but ________ is the most important financial resource for a small business owner.

profit; cash

The young, job-creating small companies are known as ________.

"gazelles"

Ethical behavior is doing what is ________

"right"

Research shows that the top-performing ________ percent of small companies create 67 percent of the net new jobs in the economy.

5

According to the U.S. Small Business Administration, a common delineation of a small business is one that employs fewer than ________ people.

100

Small companies are incubators of new sales ideas, products and services and create ________ times more patents per employee than large companies

16

Approximately ________ percent of corporate managers who are "cast off" as companies downsize become entrepreneurs.

20

By ________, the majority of the workforce in the United States will be a member of a minority.

2039

Only ________ percent of small companies offer employee-assistance programs (EAPs).

21

It is estimated that ________ percent of new businesses fail within two years, while ________ percent fail within five years.

21; 51

Drug and alcohol abuse by employees results in reduced productivity that is estimated at ________ billion dollars per year.

262.8

There are ________ levels of ethical standards.

3

Currently, minority workers make up more than ________ percent of the workforce

33

The average age of the first-time entrepreneurs in the United States is nearly ________.

44 Years old

Currently, women make up ________ percent of the U.S. workforce

46

In 2020, members of ________ different generations will be working side by side in the United States.

5

Within five years, ________ percent of new businesses will fail.

51%

More than ________ percent of those holding patents win their infringement suits.

66

________ percent of all drug abusers are employed

66

According to the KPMG's Integrity Survey, ________ percent of workers say that they observed ethical lapses in their companies within the last year.

73

________ of all alcohol abusers are employed.

77

Experts estimate that ________ percent of companies worldwide engage in some type of socially responsible activity.

80

________ percent of all U.S. businesses are family-owned and managed.

90

In a recent survey, ________ percent of consumers say that given the opportunity, they would buy products with a social and/or environmental benefit.

92

Of the 28 million businesses in the United States, more than ________ percent are considered small.

99

Which of the following is not a characteristic of a successful working relationship between copreneurs?

A clear definition of one partner as "boss" and the other as "subordinate".

Which of the following statements concerning small businesses and international markets is false?

Because exporting is so complex and requires a company to have so many international experts on staff, exporting is not feasible for small businesses

________ consists of the fundamental moral values and behavioral standards that form the foundation for the people of an organization as they make decisions and interact with stakeholders.

Business ethics

Consumer rights are governed by the ________.

Consumer Bill of Rights

________ thinking is the ability to see similarities and ________ thinking is the ability to see differences among various data and events.

Convergent; divergent

Which of the following was not identified as one of the suggestions for small business success?

Develop a business plan as you grow your business.

Which of the following is not an example of what creates a hostile work environment?

Dispensing assignments based on merit.

During the incubation phase of the creative process, the entrepreneur might do all of the following except which of the following to let ideas "marinate" in his mind?

Don't allow one's self to daydream.

________ are company-provided benefits designed to help reduce workplace problems such as alcoholism, drug addiction, gambling habits, and other conflicts and to deal with them when they arise.

Employee-assistance programs

________ cannot monitor personal email accounts.

Employers

The only people who ________ are those who never do anything or never attempt anything new

Fail

Which of the following is not something that a small business owner should do to manage a culturally diverse workforce successfully?

Learn to recognize and correct other's biases and stereotypes.

________ vertical thinking is narrowly focused and systematic, proceeding in a highly logical fashion from one point to the next.

Left-brain

Which hemisphere of the brain is responsible for the body's emotional, intuitive, and spatial functions?

Right hemisphere

Which of the following is a consumer right per the Consumer Bill of Rights?

Right to Know

________ lateral thinking is somewhat unconventional and unstructured.

Right-brain

________ entrepreneurs are business builders who seek innovative solutions to some of society's most vexing problems.

Social

The "theory of inventive problem solving" is a left-brained, scientific, systematic process based on innovative patents and is referred to as ________.

TRIZ

To which governmental office must applications for patents be submitted?

The U.S. Patent and Trademark Office

Which of the following statements about women-owned businesses is false?

The number of women-owned businesses is growing slower than the national average

Which of the following is not one of the ways entrepreneurs can stimulate their own creativity and encourage it among their workers?

View challenges as problems.

Which of the following question(s) should you consider before entering a lawsuit to protect intellectual property?

[All of the above] -Can the opponent afford to pay if you win? -Can you afford the loss of time, money, and privacy the lawsuit will bring? -Do you expect to get enough from the suit to pay for the costs of hiring an attorney?

Which of the following is/are true regarding business plans?

[All of the above] -Create a benchmark against which entrepreneurs can measure actual company performance. -Provide a pathway to success. -Allow entrepreneurs to replace faulty assumptions with facts before making the decision to go into business.

Which of the following is not a stakeholder for an organization?

[All of the above] -Creditors -Suppliers -Employees

Which of the following is a characteristic of copreneurs?

[All of the above] -Mutual respect -A clear division of roles and authority -Complementary business skills

Which of the following technological forces is driving the entrepreneurial trend in our nation?

[All of the above] -The Internet. -Mobile marketing. -Cloud computing.

Which of the following is a benefit of entrepreneurship?

[All of the above] -The opportunity to gain control over your own destiny -The opportunity to reach your full potential. -The opportunity to do what you enjoy.

Which of the following sets of experiences may enhance individual creativity?

[All of the above] -Travel and recognize the creative power of mistakes and accidents. -Journal and listen to people and customers. -Notice what is missing.

The nation's small businesses ________.

[All of the above] -account for 47 percent of business sales -create more jobs than do big businesses -employ more than 49 percent of the nation's private sector workforce

Hiring a diverse workforce ________.

[All of the above] -brings in people from different backgrounds, with different cultural experiences, hobbies, and interests -helps in cultivating organizational creativity -allows for different ideas and varying methods of problem solving

Steps in the patent process include ________.

[All of the above] -establishing whether it is a novelty -searching existing patents -documenting and verifying the date the idea was first conceived

Entrepreneurs are characterized by ________.

[All of the above] -high energy levels -desire for immediate feedback -skill at organizing

Entrepreneurs can increase their chances for success if they ________.

[All of the above] -know their business in depth and develop a solid business plan -learn to manage people and keep in touch with how they react to stress and balance their health needs with the needs of the business -manage their financial resources and understand financial statements

Research shows that anyone can learn to be creative. The problem is ________.

[All of the above] -most people have never been taught to be creative -most people never tap into their pools of innate creativity -many organizations fail to foster an environment that encourages creativity

Creativity often involves creating something from nothing. However, it is more likely to result in ________.

[All of the above] -taking something away to create something simpler or better -putting old things together in new ways -elaborating on the present

"Verification" refers to ________.

[All of the above] -validating the idea as accurate and useful -possibly asking questions such as "will it work?" and "is it really a better solution?" -possibly conducting experiments, running simulations, and test marketing a product or service

The profile of an entrepreneur includes ________.

[All the above] -confidence in the ability to succeed and determination -a desire for responsibility and moderate risk -a high level of energy, a desire for immediate feedback and a future orientation

Entrepreneurs typically possess ________.

a high level of commitment, have a tolerance for ambiguity, are flexible and tenacious

Effective brainstorming involves all of the following except ________.

an effective method to evaluate ideas

An entrepreneurial "secret" for creating value in the marketplace is ________.

applying creativity and innovation to solve problems

Small companies ________.

are the leaders in offering training and advancement opportunities to workers

Entrepreneurs may find benefit from the Internet due to its potential ________.

as a relatively low-cost solution to expand its revenue-generating abilities

Which one of the following is not a simple way by which small businesses can be socially responsible?

encourage reinventing

________ is a process in which a small group of people interacts to produce a large quantity of imaginative ideas.

brainstorming

"Copreneurs" are defined as ________.

entrepreneurial couples that work together as co-owners of their business

Melinda and John Perez, both corporate attorneys in New York City, have grown tired of their lengthy daily commute, the stress of their jobs, and the overbearing policies of their employers. They have decided to leave their six-figure jobs and together open a guide service in Wyoming. Melinda and John are examples of ________.

corporate dropouts and copreneurs

An entrepreneur is one who ________.

creates a new business concept for the purpose of achieving profit and growth by assembling the necessary resources to capitalize on identified opportunities

The ability to develop new ideas and to discover new ways of looking at problems and opportunities is called ________.

creativity

________ is necessary for building a competitive advantage and for business survival

creativity

Entrepreneurship is a constant process that relies on ________.

creativity, innovation, and application in the marketplace

One of the most important group of stakeholders that a business must satisfy is its ________.

customers

When developing creative solutions to modern problems, entrepreneurs must ________.

go beyond merely using whatever has worked in the past

To protect patent claims, an inventor should be able to verify and document the ________.

date on which the idea was first conceived

The three principles (three Rs) of rapid prototyping are ________.

develop a rough model, rapidly, and for the right problem

Women in business still experience ________ as they attempt to break the "glass ceiling."

discrimination

One of the most significant economic developments in recent business history relates to the ________.

entrepreneurial spirit

Actions that are legal, however, may not be ________.

ethical

The ________ sets behavioral boundaries for decision makers.

ethics

________ is a branch of philosophy that studies and creates theories about the basic nature of right and wrong, duty, obligation, and virtue.

ethics

Entrepreneurs can stimulate their own creativity and encourage it among workers by ________.

expecting and tolerating failure

One hallmark of successful entrepreneurs is the ability to ________.

fail intelligently

Earning a profit may be a company's ________ responsibility.

first

The technique of ________ uses three columns that allow the entrepreneur to weigh both the advantages and the disadvantages of a particular decision and work to maximize the variables that support it while minimizing those that work against it.

force-field analysis

Mind mapping is a useful tool for jump-starting creativity. It includes all of the following except ________.

forcing creativity when ideas start to trickle

According to the ________, one should "choose the option that offers the greatest good for the greatest number of people."

utilitarian principle

All of the following are characteristics of the typical entrepreneur except ________.

value of money over achievement