Entrepreneurship and Innovation Test #1

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

New business development

Recent trends indicate that larger corporations have been ______, while entrepreneurial businesses have been __________ rapidly.

down

Large firms can obtain ___________________________ in some industries because of their ability to operate on a larger scale than can a small firm.

economies of scale

The fact that Walmart can buy its advertising much cheaper on a per-unit basis than a small retailer is an example of __________.

economies of scale

Which of the following are goals of the business plan for a new entrepreneurial business plan?

-to be a guide to managing the business - to provide self evaluation - to provide investors with necessary information

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 (GNP)

An___________ plan is a plan to exit the business that allows the investors to take advantage of growth

harvest

Which of the following are reasons why entrepreneurial businesses are successful?

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

What are characteristics of venture- capital backed firms?

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

Which of the following statements are true regarding robber barons?

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

Silicon Valley and Boston's 128 corridor are well known for

- generating new employment with entrepreneurial ventures - providing a growing tax revenue base - providing a basis to the area's economic vitality.

The United States Small Business Administration was organized to

- provide information at all levels of organizational development for entrepreneurial businesses - aid, counsel and protect the interests of small businesses -provide assistance at all levels of management for entrepreneurial businesses

Which of the following statements are true regarding the closure of military bases in the united states?

-Cities with base closings experienced higher income growth - tax breaks and programs to support new business development -Increases in new businesses.

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?

Competitive advantage, management team and cash flow

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

Develop an effective sales generation model

What program is growing across the United States to help start new entrepreneurial businesses in an area?

Economic gardening

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

Entrepreneurial businesses have na understanding of the local community and are willing to pursue smaller markets ignored by large corporations.

T or F: Every business in the Fortune 500 started out as a large corporation

False

Which of the following statements is true regarding the Great Depression of the 1930s ?

It encouraged industrial concentration

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

Stakeholders

What is the most important single factor in the businesses success?

The business owner

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.

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

downward, increases

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

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

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

What are reasons for the recent growth in the number of women starting new businesses?

Frustration with glass ceiling and greater control of work life balance

The process of forming and managing a new entrepreneurial business in a clear, sequential manner that is rich in practical application and grounded in research is the ________ part of entrepreneurial business development.

science

In their book entitled "The Millionaire Next Door," Thomas Stanley and William Danko point out that almost 2/3rd of US millionaires are_______.

self employed