ENT 2113 Final
Which of the following are true about market capitalization established by a public company? (Check all that apply.)
It accounts for future earnings and all future prospects that are known today. It is the value of the business as it exists at the present time.
Which of the following statements about human resources is NOT true?
The most important role of human resources is to meet basic legal requirements.
Entrepreneurs should always ask candidates to fill out a(n) ______ for employment.
application
Suppliers will generally provide on both physical assets and the actual supplies purchased. (Enter one word in the blank.)
credit
Benefits paid for by a company, such as a vacation or vehicle, are called _____; they are often used by the company to minimize the tax owed to the government. Multiple choice question.
perquisites
In hobbies and activities, individuals develop specific ___ to the hobbies. (Please enter one word for the answer.)
skills
Which of the following are common forms of debt for a new business? (Check all that apply.)
Supplier credit Credit cards Loans
The cash flow method of ___requires that the net cash flow of the business be projected for some period of time into the future.
valuation
Along with being properly financed and developing sustainable profit margins, in order to be successful, entrepreneurs must:
develop an effective sales generation model.
What are the typical categories used to analyze a business idea? (Check all that apply.)
Finance Nonfinancial resources Competitors Time Risk
Which of the following typically issue grants? (Check all that apply.) Multiple select question.
Government Private foundations
Unlike the business plan of a venture capital-backed business, the entrepreneurial business plan is developed as a _____
guide for the running of the business
The effective application of ____ is one means to limit liability concerns of the new venture.
insurance
If one has a low risk tolerance, one is likely to spend ____ and save ____.
less; more
Which type of funding involves a contractual agreement whereby the business receives some amount of money that must be repaid over a specified period of time at a specified interest rate?
loan
The business plan for a new entrepreneurial business is developed to serve as a guide to manage the business, to provide potential investors with critical information to evaluate the business, and to:
provide a self-evaluation
The last step in the employee hiring process is ______. Multiple choice question.
job offer
People in an entrepreneur's network can help by providing ______ to a new business. Multiple choice question.
legitimacy
In the long run, the cost of capital for nonequity funding is generally ______ that of equity investment. Multiple choice question.
less than
One disadvantage of the Subchapter S Corporation is the limitation to the number of shareholders, which is currently set at a maximum of Blank______ shareholders.
100
What is the generic term used to describe any type of nonequity funding tied to the business?
Debt
Subchapter S and Subchapter C Corporations take their names from subchapters in the ______ Code
Internal Revenue
___description describes the skills and capabilities that a candidate should have.
Job
Which of the following are true regarding the process of generating ideas? (Check all that apply.)
The process typically requires iteration. The process typically requires interaction. The process typically requires consideration.
Which of the following statements regarding bonus systems are correct? (Check all that apply.)
They are based on the employee's performance. They are similar to profit sharing. They are not as well defined as profit sharing.
Which category of the gap analysis is typically grossly underestimated by entrepreneurs?
Time
The critical issues of personal liability and the desire to limit exposure to the original equity investment led to the development of corporations. A corporation addresses both drawbacks by _____. Multiple choice question.
considering the business and the individual separate entities
What are the two broad categories of partnerships? (Check all that apply.) Multiple select question.
limited and General
To fully utilize family resources, entrepreneurs should _____. (Check all that apply.)
make a list of members that they have regular contact with list the capabilities those individuals possess that might be helpful
It is important to record and balance the company account on at least a _____ basis.
monthly
A company's compensation system is _____.
of the highest importance for employees
The World Bank estimates that one of the strongest factors in the growth of any nation's GNP is the presence of entrepreneurial _____ enterprises.
small- and medium-sized
Inventory should be taken at scheduled times during the year and an exact match should be completed between: (Check all that apply.)
starting inventory units sold ending inventory
Besides banks, finance companies, and friends and family, another source of nonequity loans comes from: Multiple choice question.
the founders.
The process of ______ a new business is unique and has developed into a popular area of study at colleges around the globe. (Check all that apply.)
developing initiating running
Entrepreneurs need to ensure they have sufficient ____resources prior to starting a business.
financial
Identify the questions that should be considered by a new business owner before entering into a lease contract. (Check all that apply.)
Who is responsible for maintenance and other facilities issues? Can the business owner renew the lease after the term expires? Who has to carry the liability insurance and at what level? Who would be responsible for making improvements to the facility?
An inventory record will include: (Check all that apply.)
an item number a description of the item a unit and total cost the quantity of the item
A separate accounts ______ record should be maintained for each creditor.
payable
The ____ ceiling 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
When starting a business, one must understand the relationship between _____ and the expected return. Multiple choice question.
time commitment
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
True or false: Human resources has been defined in economics as the quantity and quality of human effort directed toward producing goods and services. True false question.
true
In which of the following business forms do the business debts flow directly to the owner(s)? (Check all that apply.) Multiple select question.
Sole Proprietorship and general partnership
Identify a characteristic of venture capital start-ups.
They are inherently risky operations whose growth is dependent on the exploitation of unknowns in the market.
Identify a true statement about the circumstantial motivators for starting a business. Multiple choice question.
They tend to result in more of a defensive positioning than do personal motivations.
Identify the true statements about workers' compensation laws in the United States. (Check all that apply.)
They provide workers' compensation insurance that is regulated by each state. They aim to provide some type of wages to employees who are disabled or injured while on the job.
Which of the following are low- or no-cost means of advertising a job opening? (Check all that apply.) Multiple select question.
Word of mouth College placement office Trade association
An employee who earns a salary is paid _____.
a set amount of money that is paid without regard to how many hours worked in a given time period
A ______ is payment based on a percentage of sales.
commision
A ______ is an agreement between two parties to perform certain activities for some consideration.
contract
The greatest advantage of an entrepreneurial business is that it is owned and run by _____. Multiple choice question.
same person
An important feature of a Subchapter C Corporation is that there are no limits to _____. Multiple choice question.
the number of shareholders that an organization can obtain
Entrepreneurs' prior experience plays a role in new business creation through _____.
their view of the world
Which of the following is the next step in the hiring process after the job description has been created? Multiple choice question.
Advertising Position
According to the 2019 statistics from the United States Small Business Administration, 99.9 percent of all businesses in the United States are
small
Which of the following statements are true regarding education as it relates to skill sets? (Check all that apply.)
An opportunity that uses your education is another source of a business. Knowledge gained from formal education provides a skill set. Technology skills acquired through education can be particularly valuable.
Which of the following are benefits of family-owned businesses? (Check all that apply.)
Family members may be willing to take only a partial or no salary during difficult times. Family members help the entrepreneur overcome many difficulties that may cause failure. Family members may be willing to work extra hours during holidays.
Which of the following are characteristics of venture capital-backed firms? (Check all that apply.)
They have a developed organizational structure. They either start or grow quickly to employ a relatively large number of employees. They are formed with a harvest plan in place.
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
Economies of scale is the condition that allows the long-run average cost to continue _______ as production _______.
downward; increases
A business plan for a small business typically runs _____ pages long. Multiple choice question.
from 15 to 25
The Fortune 500 is published annually by Fortune magazine and documents the 500 largest corporations (by ______) in the United States?
sales
True or false: The high level of family commitment is a key reason why family businesses are able to survive and prosper.
This is true. It is this level of commitment that has produced success for many immigrant families. In these settings, the reliance on family is a key reason the firms are able to survive and prosper.
Which of the following is NOT a source of nonequity capital to start a business? (Check all that apply.) Multiple choice question.
Venture capital
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 European Union considers any business with fewer than _____ employees to be a small business.
50
The U.S. government considers any business with fewer than _____ employees to be a small business.
500
Why are hobbies a good skill source? (Check all that apply.)
Hobbies require the development of specific skills. Individuals are passionate about their hobbies.
True or false: Every business in the Fortune 500 started out as a large corporation.
False. Every business in the Fortune 500 started out as an entrepreneurial business
Which of the following is a human resources issue for family firms? (Check all that apply.)
Family members may make another angry, since they know that member's "hot buttons." It is more difficult to fire or discipline a family member.
What is the method used to identify an opportunity that exists between the demand for a product and the supply provided by firms in the market?
Gap Analysis
Which of the following describe the roles that human resources management plays in business? (Check all that apply.)
Hiring new employees Inspiring employees Managing employees
A(n) ______ is the amount that a business pays an employee per hour of work performed. Multiple choice question.
Hourly wage
Identify a finding of the federal General Accounting Office's (GAO's) analysis of the impact of the closure of military bases. Multiple choice question.
In cities with base closings, several new businesses rose up to fill the economic gap that had resulted from the closings.
Which of the following are correct regarding the characteristics of large businesses? (Check all that apply.)
Knowledge is widely dispersed throughout the business. No one person is critical to the business's survival. They have greater excess resources.
____insurance obtained by an entrepreneurial business primarily covers the building, fixtures, and inventory in all of the buildings in which the business has a function.
Property
Which of the following are components of the entrepreneurial orientation concept? (Check all that apply.)
Risk tolerance Prior experience Personality orientation
An advantage of the Subchapter_____ Corporation is that it allows the owners to report their income or losses on their personal income tax returns, thus avoiding double taxation.
S
What is the true value of a business?
The amount of money that a willing seller and a willing buyer agree upon for the sale of the business
What are the key financial issues involved with starting a business? (Check all that apply.) Multiple select question.
The flow of information in the new business The funding and the funding level of the firm The establishment of an accounting system
Which of the following is true of entrepreneurial firms?
The structure of management is designed to take advantage of the skills of the founder or founders of a firm.
True or false: Recruiting companies do an extremely good job recruiting and placing people with companies that have unique skill requirements. True false question.
True
Which of the following are questions an entrepreneur should address regarding education? (Check all that apply.)
What courses taken were particularly enjoyable? Have you taken specialized training in any specific area? Have you attended any unusual education programs?
The risk in starting and operating a new business is determined by:
entrepreneur
If you prefer to work extensively with people, in which of the following businesses should you probably NOT pursue a business opportunity? (Check all that apply.)
Billing Bookkeeping
What is included in the second column of the chart used in the gap analysis?
Categories of analysis
Which of the following are trademarked by most large companies? (Check all that apply.)
Company name Company symbols Company tag lines
Which of the following are ways entrepreneurial businesses can act as catalysts for societal change? (Check all that apply.)
Entrepreneurial businesses have an understanding of the local community. Entrepreneurial businesses are willing to pursue smaller markets ignored by large corporations.
Identify the findings of the federal General Accounting Office's (GAO's) analysis of the impact of the closure of military bases. (Check all that apply.)
In cities with base closings, the areas around the bases had income growth higher than the national average. Cities with base closings offered tax breaks and programs to support new business development.
Why should business owners retain employees who add value? (Check all that apply.)
It takes time to bring each new employee to an acceptable level of performance. The hiring process consumes a lot of time and money.
What method of inventory control seeks to minimize excess capital investment in inventory by having it present only shortly before it is used? Multiple choice question.
Just-in-time inventory
____include key suppliers, customers, and employees. These individuals are critical to the success of a business.
Stakeholders
Entrepreneurs should work with family members for their advice, potential funding, reality check, and ____structure.
Support
Which of the following statements is true of venture capital start-ups?
They are often formed as high-tech ventures consisting of unique characteristics.
A chart of accounts is simply a listing of each type of activity and each type of asset within the company. Rank the categories of accounts from first to last associated with a chart of accounts. Position 1 of 3 Income category correct toggle button unavailable Income category
Income Category Expense Category asset Category
Which of the following are advantages that small, new businesses have? (Check all that apply.) Multiple select question.
Small businesses fill niches that large firms simply cannot afford to fill. Small businesses are owned and run by the same person(s). Small businesses can respond quickly to opportunities or threats as they arise.
Which type of legal business organization is the simplest form to establish? Multiple choice question.
Sole Proprietorship
Which of the following business forms are required to hold annual board meetings and file reports to local, state, and federal authorities? (Check all that apply.)
Subchapter C Corporation Subchapter S Corporation
Which of the following items should be included on the payroll record? (Check all that apply.)
Taxes Benefit deductions Number of hours worked Base pay and overtime pay rate
identify the characteristics of credit cards as a form of nonequity investment. (Check all that apply.) Multiple select question.
They typically have a set upper limit. They are generally tied to a much higher interest rate than that of a bank loan.
The initial analysis is a process of:
moving from three to five ideas to a single idea
Which valuation is the most widely accepted method of valuation and the most insightful?
Discounted future net cash flow
Silicon Valley and Boston's 128 corridor are well known for: (Check all that apply.)
generating new employment with entrepreneurial ventures. providing a growing tax revenue base. providing a basis to the area's economic vitality.
True or false: When considering funding, a firm needs to evaluate not only the amount provided but also the sources of that funding.
This is true. Central to a financial cushion is the nature of a firm's funding. When considering funding, the firm needs to evaluate not only the amount provided but also the sources of that funding.
Along with the business idea, what else should be included in the first column of the gap analysis chart?
A brief explanation of the business idea
Match the types of accounting systems a new businessperson uses (in the left column) with their features (in the right column).
A cash-based accounting system- It recognizes expenses as they are paid and recognizes revenue as it is generated. An accrual-based accounting system- It is the more typical form of accounting used, with expenses and revenues recorded when they actually occur, regardless of when the cash is received.
Which of the following are true regarding the calculation of the premium that will be offered above the market capitalization value? (Check all that apply.)
It considers any future investment in the business. It considers how much cash will be paid versus stock transferred. It is more a matter of art than science.
A critical addition to any business plan, and certainly a necessity for any valuation analysis, is a complete set of ___used by the founders.
assumptions
In the context of standard valuation models for businesses, perquisites refer to the _____
benefits paid for by a firm
A difference between entrepreneurial businesses and venture capital-backed firms is that _
entrepreneurial businesses' resources are more constrained than those of venture capital-backed businesses
Civic leaders often look to ______ as a means to promote economic strength for a community, region, or state. Multiple choice question.
entrepreneurs
True or false: The founder should avoid personally lending money to the new business because it is an unsecured investment.
false. The debt is actually secured.
A business with employees will be required to calculate and deduct various payroll taxes for: (Check all that apply.)
federal authorities local authorities state authorities
A limited liability corporation (LLC) and a Subchapter S Corporation are similar in that they both _____.
have the limited liability feature
The founders of an entrepreneurial business and the leadership they provide play ______ of a critical role in the business's success than senior leadership does in a typical large organization.
more
Once a list of skills, abilities, and interests has been developed, the next step is to: Multiple choice question.
perform a gap analysis.
By providing resources that new businesses cannot otherwise afford on their own, incubators can help these businesses establish _____.
some level of legitimacy
An entrepreneur's support and resources are typically to the individual and the location.
unique
What are the typical categories used to analyze a business idea? (Check all that apply.)
financial, time, nonfinancial resources, risk, and competitors
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 ______.
risk
A founder or founding team must have synergy, which is a combination of:
skill set competitive advantage understanding of an industry
Which of the following are questions an entrepreneur should address regarding education? (Check all that apply.)
Have you taken specialized training in any specific area? Have you attended any unusual education programs? What courses taken were particularly enjoyable?
Identify the characteristics of a gap analysis for a new venture using a chart. (Check all that apply.)
It is a reasonably quick analysis. It requires minimal or no research.
identify the true statements about a C corporation. (Check all that apply.)
It provides protection for the owners beyond their equity investment. It does not have any limits on shareholder participation.
Which of the following businesses could be most likely pursued by individuals who do NOT prefer to work with people? (Check all that apply.)
Order fulfillment Bookkeeping Internet-based businesses
What is the initial value at which the firm's shares are offered?
Par value
Which of the following are likely to affect a small business when an employee becomes a problem?
The problem may cause other employees to have problems. The organization does not fully benefit from the unhappy employee. The owner loses time dealing with the situation.
True or false: The Myers-Briggs test is one of the most widely used personality tests.
True. This test is used a great deal in business.
A(n) ______ is simply money designed to help the new business begin operations with no expectation of repayment. Multiple choice question.
grant
Personality tests can _____.
help one better understand one's traits and tendencies
A ______ is where a sales commission is paid in addition to a basic salary.
hybrid compensation system
General and limited are two broad categories of
partnership
Which of the following groups might be included in an entrepreneur's key support network? (Check all that apply.)
Former employers Friends from school
Which of the following is NOT one of the three basic types of legal business organization?
Franchise
Which of the following are reasons why entrepreneurial businesses are successful? (Check all that apply.)
Free to place energy into satisfying the needs of customers Fewer layers of management Tend to be more focused than large corporations
Which of the following are true regarding the accounts payable? (Check all that apply.) Multiple select question.
All invoices received should be recorded. The record should include date paid, amount paid, and check number or tracking number. A record of payment toward each invoice should be included.
Which of the following statements regarding equity theory are correct? (Check all that apply.) Multiple select question.
Employees will accept that someone who has been with the company longer may earn more. Employees need a clear understanding of how their compensation compares to peers'. Employees judge the fairness of their compensation based on another's in a similar situation.
_____ theory argues that people judge how they are treated relative to how they see others being treated.
Equity
Which of the following funding options traditionally involves selling a percentage of the business to an outside party? Multiple choice question.
Equity investment
Identify the typical triggers for starting a business. (Check all that apply.)
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 Receiving evidence that an idea is not only doable, but there is a concrete way to improve on a given problem
Which of the following descriptions are characteristics of entrepreneurial firms? (Check all that apply.) Multiple select question.
The start-up is self-funded or closely funded. The number of employees will not be expected to grow beyond 100. The operation is designed in the image of the founder.
Which of the following are reasons for developing an exit or harvest strategy at the beginning of a business start-up? (Check all that apply.)
There is a need to develop it early before personality clashes arise. Developing it early provides peace of mind to the family and the investors.
True or false: A partnership will be governed by either the Uniform Partnership Act or the Revised Uniform Partnership Act if the partnership agreement is not developed and signed.
This is true. A partnership will be governed by either the Uniform Partnership Act or the Revised Uniform Partnership Act if the partnership agreement is not developed and signed. These partnership laws were developed as suggested formats and adopted by each state.
Which of the following are required in the initial analysis of a business opportunity? (Check all that apply.)
Time Financial investments Focus
Starting a business is often the result of an event or condition within an individual's environment called a___
Trigger
The third element of entrepreneurial orientation is an examination of your own:
personality
When was the initial development of the large industrial base of the United States?
1880s
The Enneagram's nine personality types include which of the following? (Check all that apply.)
Achiever Reformer Helper
_____ is a managerial theory that believes individuals act to maximize their own benefit. Multiple choice question.
Agency Theory
Which of the following contribute to personal skill sets? (Check all that apply.)
Current work experience Past work experience Hobbies Family history
Which of the following are true with regard to managing the flow of data in the context of businesses? (Check all that apply.)
Data are tied to the strategic needs of the business. Data are obtained in a timely manner.
Which of the following elements is NOT required when forming a Subchapter C or Subchapter S Corporation?
Details of the social responsibility policy
True or false: Robber barons were responsible for the collapse of small businesses in the 1880s.
False. Small businesses continued to thrive as they served the needs of the large industrial sector.
True or false: There is no need to treat a loan from family as a contractual agreement.
False. The new business owner should view the loan from family in the same way as a bank loan.
What are the typical requirements for a new business to obtain a city or county business license? (Check all that apply.) Multiple select question.
It should pay a set fee, which is usually less than $100. It should agree to report basic information about its performance on a set schedule.
Which accounting record tracks time for hourly workers and attendance for salaried employees?
Pay roll
_____motivations come from the individuals themselves.
Personal
Which account should be used when there is an expense too small to write a check for or when a check is simply inappropriate?
Petty cash register
Potential entrepreneurs must understand their level of tolerance to ___.
Risk
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
What are the critical elements that an entrepreneur must solve for success? (Check all that apply.)
Sustainable operating profit margin Develop an ability to generate consistent and growing sales Sufficient resources to get the business to a point where it is self-funding
True or false: A C corporation treats fringe benefits that are paid out as income for its employees.
This is false. A C corporation has the advantage that fringe benefits that are paid out are not treated as income for employees. Thus, owners can have their health insurance and other benefits paid by the corporation, which then expenses each of these as a cost of business.
True or false: Unlike entrepreneurial businesses, large organizations will regularly pursue smaller markets even if they do not believe the results will generate profits.
This is false. Large organizations will regularly ignore business opportunities if they do not believe the results will generate profits. Entrepreneurial businesses are more flexible and willing to pursue a wider range of opportunities.
Which of the following questions should NOT be explored to identify additional skill sources? (Check all that apply.)
What are my worst accomplishments in life?
When someone provides funding in return for some ownership in the new business, it is referred to as a(n) _____.
equity investment
Banks have traditionally been a major source of funds for:
established firms
Personality tests should help you better understand yourself and your strengths and not be used as a guide for your___
Career
True or false: Workers' compensation laws in the United States require the rates of workers' compensation insurance to be the same in all states. True false question.
This is false. Workers' compensation insurance is regulated by each state, with some states running their own insurance funds, whereas others use private firms. The rates of the insurance can differ widely in the various states, depending on the regulations and generosity of the state legislature.
Which of the following statements about agency theory are correct? (Check all that apply.)
Managers are considered agents. Agents often maximize their own benefit. Owners always act to maximize the value of the business.
Which of the following is NOT one of the three types of specific risks?
Network. Financial, strategic, and market retaliation ARE correct
True or false: An entrepreneur's prior experience places boundaries on what he or she will consider when making decisions.
This is true. An element of entrepreneurial orientation is prior experience. Every individual brings to a new business his or her own view of the world. This view of the world places boundaries on what a decision maker will consider as he or she makes decisions. These boundaries are set by experiences, history, culture, and family values, among other things.
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 false question.
This is true. The one-page pitch created by a new entrepreneur while developing a business plan should provide crucial information about the new business idea and offer an effective starting point for every potential supplier, employee, or investor.
True or false: It is advisable for an entrepreneur to ensure that sufficient financial resources are available prior to the start of a business.
True. It is simply good business practice to ensure that sufficient financial resources are available prior to the start of a business. It may be a waste of effort to go forward if the goals of an individual are widely divergent from the financial resources that are available.
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.)
What peculiar capabilities offer the entrepreneur a competitive advantage? What unique skills will be needed to run the business?
A board of _____ is required of corporations, but a board of ______ is optional regardless of the legal form.
directors; advisors
The success of entrepreneurial businesses occurs because they are simply more _____ than their larger corporate counterparts.
focused
Which form of business involves two or more individuals sharing unlimited liability in a business venture?
general partnership
It is perfectly acceptable for companies to test their job candidates _____.
if there is a direct link between performance on the test and the skills required for success on the job
Which funding tool involves the leasing of equipment from manufacturers or a third-party reseller?
Asset lease
Which of the following are considered sources of debt for starting a new business? (Check all that apply.) Multiple select question.
Banks Credit cards Suppliers
A copyright can be claimed on creative materials generated. Identify the examples of such materials. (Check all that apply.)
Books and magazines Advertising copy
Which of the following forms of incorporation is required to pay income tax, which results in double taxation?
C Corporation
Excess resources in an organization that allow for redundancy and the quick deployment of personnel in crisis are referred to as ____ _____
Organizational slack