ETR-Chapter 3 - MC, ETR-Chapter 4-MC, ETR-Chapter 5 - MC, ETR-Chapter 6 - MC
C
21. (p. 80) Which of the following refers to searching and capturing new ideas that lead to business opportunities? A. Innovation B. Entrepreneurial alertness C. Opportunity recognition D. Technology transfer
A
22. (p. 80) Researchers in the field of entrepreneurship and small business believe that _____ behavior is the most basic and important entrepreneurial behavior. A. opportunity recognition B. idea networking C. observational D. question-seeking
D
23. (p. 81) A special set of observational and thinking skills that help entrepreneurs identify good opportunities refers to A. innovation. B. opportunity recognition. C. technology transfer. D. entrepreneurial alertness.
D
24. (p. 81) All of the following pertain to entrepreneurial alertness EXCEPT A. entrepreneurs have a special set of observational skills. B. entrepreneurs have thinking skills that help them identify opportunities. C. it is the ability to notice things that have been overlooked. D. it involves launching a formal search for opportunities.
D
25. (p. 81) If an owner of a fast-food restaurant notices that customers are asking for substitutions of healthier ingredients to food items, she may be motivated to contact her suppliers to ask about getting new ingredients, changing the menu, and increasing the healthy offerings on the menu to keep customers satisfied. This is an example of A. creativity. B. technology transfer. C. innovation. D. entrepreneurial alertness.
A
26. (p. 81) According to the PSED, a majority of entrepreneurs indicated that A. the decision to start a business came first. B. the business idea came first. C. both idea and decision were simultaneous. D. they have no recollection of what happened with business start-up.
C
27. (p. 81) Working for a very large organization in the tractor manufacturing industry, John always heard complaints from customers about the parts and service aspect of the business. Taking an early retirement, John started his small business to address the customer complaints he had been hearing. Which of the following best describes the factor that led John to this business idea? A. A similar business B. Chance C. Work experience D. Family and friends
C
28. (p. 81) You might see a business in an area that intrigues you because you learn that there is a growing market for this business and you think of a way to expand on the opportunity. Which of the following factors is considered the business idea behind this? A. Serendipity B. Personal interest C. A similar business D. Work experience
B
29. (p. 81-82) According to the text, all of the following factors lead business owners to their business ideas EXCEPT A. work experience. B. government regulation. C. serendipity. D. family and friends.
D
30. (p. 82) When people find a way to turn their hobbies into successful businesses, which of the following factors is considered as leading them to their business idea? A. Family and friends B. Education and expertise C. Serendipity D. Personal interest
C
31. (p. 82) When you happen to be at the right place at the right time resulting in a successful business idea, which of the following factors can be said to be responsible? A. Family and friends B. Education and expertise C. Serendipity D. Personal interest
C
32. (p. 83) Many owners of consulting companies took their own skills and launched businesses by selling those skills to other companies who needed them. This is an example of which of the following factors leading to business ideas? A. Family and friends B. Serendipity C. Education and expertise D. Personal interest
D
33. (p. 83) According to the entrepreneurs studied in PSED, which of the following factors was the most frequently mentioned source that led to their business idea? A. Discussion with potential investors B. Education and expertise C. Family and friends D. Work experience
D
34. (p. 83) One powerful but rarely used source of ideas is A. family and friends. B. work experiences. C. existing customers. D. government agencies.
D
35. (p. 83) A _____ is a legal agreement granting you rights to use a particular piece of intellectual property. A. caveat emptor B. franchise C. set-aside D. license
B
36. (p. 84) The firm that obtains the rights to use a particular piece of intellectual property is the A. licensor. B. licensee. C. obligor. D. assignor.
C
37. (p. 84) The person or organization which is offering the rights to use a particular piece of intellectual property is the A. consignee. B. assignee. C. licensor. D. licensee.
C
38. (p. 84) _____ is a payment to a licensor based on the number or value of licensed items sold. A. Milestone payment B. Lump sum payment C. Royalty D. An exclusive right
C
39. (p. 84) Which of the following best describes a licensee? A. It is a person or organization offering the rights to use a particular piece of intellectual property. B. It is a legal agreement granting rights to use a particular piece of intellectual property. C. It is a person or firm obtaining the rights to use a particular piece of intellectual property. D. It is a person or organization offering the rights to use any piece of intellectual property.
B
40. (p. 84) In a typical I 2 P analysis, this is a nontechnical description of the concept simple enough for everyone to understand it. A. What is the market and its size? B. What is your product or idea? C. Why will customers buy your product? D. Who are the people behind the idea?
A
41. (p. 84) "Why might a cell phone that can play music MP3s be a better approach than a dedicated MP3 player?" pertains to which of the following questions? A. Is your product or idea innovative? B. Why will customers buy your product? C. Is your underlying technology unique? D. Who are the people behind the idea?
C
42. (p. 84) This question looks at the specific individuals, groups, or organizations you would approach first to buy your product or service. A. Who are the people behind the idea? B. Describe how you create value for your customers. C. How would you define the best initial set of customers? D. What marketplace need does your product address better than any other option?
D
43. (p. 84) Which of the following looks like the simplest question but is actually the hardest one? A. Is your underlying technology unique? B. Who will buy your product? C. What is your product or idea? D. What is the market and its size?
A
44. (p. 84-85) Which of the following is NOT a focus while answering the eight questions in a typical I 2 P analysis? A. People B. Product C. Market D. Intellectual property protection
B
45. (p. 85-86) "Beyond the start-up dollars that will be needed to buy any raw materials to make the product or develop the service, what information, relationships, and degree of effort will be needed to turn the idea into reality?" pertains to which of the following? A. Is your product or idea innovative? B. What resources are needed to take the idea and sell it to the customer? C. Describe how you create value for your customers. D. What marketplace need does your product address better than any other option?
B
46. (p. 87) "S" in the creativity tool SCAMPER stands for A. strategize. B. substitute. C. submit. D. solicit.
D
47. (p. 87) A feature that allows your customers to order directly from a Web site rather than visiting your store is an example of A. elimination. B. adaptation. C. magnification. D. substitution.
A
48. (p. 87) Which of the following is an idea trigger for the "substitute" cue in SCAMPER? A. What opportunities can you think of that come as a result of replacing something that already exists? B. What separate products, services, or whole businesses can you put together to create another distinct business? C. What could you adapt from other industries or fields to your business? D. What could I make more noticeable or dramatic, or different in some way from my competitors?
D
49. (p. 87) The idea trigger "What separate products, services, or whole businesses can you put together to create another distinct business?" pertains to which cue in SCAMPER? A. Substitute B. Magnify C. Adapt D. Combine
B
50. (p. 87) _____ is a process of producing an idea or opportunity that is novel and useful, frequently delivered from making connections among distinct ideas or opportunities. A. Ethics B. Creativity C. Imitation D. Flexibility
b
A loner, often socially isolated, a hard worker, a fast learner, and a risk taker seeking wealth represents the profile of a(n) A. idea person. B. classic entrepreneur. C. managerial entrepreneur. D. small business owner.
b
A(n) _____ entrepreneur's typical end-game strategy involves scaling down the business. A. occasional B. helical C. harvest D. growth
b
Access problems for women- and minority-owned small businesses crop up most often as A. differences in labeling. B. discrimination in financing. C. problems involved in business contacts. D. the presence and absence of certain skills.
d
According to the text, there are three levels of professionalization. These are A. low, medium, and high. B. company, industry, and global. C. personal, team, and organizational. D. expert, specialized, and minimalized.
a
All of the following are characteristics of a family-owned business EXCEPT A. they are the only group that faces the challenge of access. B. they are a major source of funds and personnel for new small businesses. C. they are a self-perpetuating source for future small businesses. D. a strong family bond can become a strong business culture.
b
All of the following observations are true of growth entrepreneurs EXCEPT A. their goal is to achieve major success. B. they are interested in giving their firms strong balance sheets. C. they are lifetime owners. D. when they retire, they tend to want to micromanage their successors.
d
All of the following observations are true of the salesperson type of entrepreneur EXCEPT A. they work hard. B. they are very socially driven. C. they use their networks to minimize risk. D. they are most concerned with their wealth.
c
All of the following observations pertain to set-asides EXCEPT A. they are government contracting funds. B. they are earmarked for particular types of firms. C. they focus on extra efforts to network. D. they are a solution for access-based challenges.
a
As they age, these entrepreneurs' unspoken exit strategy is to let the time between deals drag out. A. Harvest entrepreneurs B. Helical entrepreneurs C. Occasional entrepreneurs D. Growth entrepreneurs
c
At which of these levels of professionalization does the entrepreneur do nearly everything in the simplest way possible? A. Expert B. Specialized C. Minimalized D. Global
b
B&B Music can be described as a(n) A. minority business. B. entrepreneurial team. C. second-career entrepreneurship. D. expert business.
a
Bart appears to express an interest in which of the following careers? A. Habitual B. Harvest C. Spiral D. Occasional
c
Being a contemporary classic entrepreneur, Brad would exhibit all of the following traits EXCEPT being A. a hard worker. B. socially isolated. C. an average income seeker. D. a fast learner.
a
Being an idea person, Bart would not be driven by A. great wealth. B. hard work. C. fame. D. fast learning.
c
Being asked if you want to supersize your order at a fast-food restaurant is an example of A. a key business function. B. a resource competency. C. a standard business practice. D. industry-specific knowledge.
b
Brad appears to be leaning toward which of the following careers? A. Habitual B. Harvest C. Spiral D. Occasional
a
Doing work on a seasonal basis such as doing taxes or making Christmas wreaths is an example of A. occasional entrepreneurship. B. spiral entrepreneurship. C. growth entrepreneurship. D. habitual entrepreneurship.
d
Expert businesses A. are those which have owners who are passionate about one key business function. B. are those where the entrepreneur does nearly everything in the simplest way possible. C. usually lack good business procedures. D. are those in which you notice everything seems to be done in the best way possible.
c
Family owned and managed small businesses represent what percent of American businesses? A. 58 B. 25 C. 39 D. 72
b
Following certain "best practices" are typical of these types of businesses. A. Specialized businesses B. Expert businesses C. Minimalized businesses D. Factor businesses
d
For family business, the most effective approach for avoiding role conflict is A. time management. B. to avoid schedule overload. C. to try and make decisions based on family necessities. D. to keep family issues out of the business.
d
For those businesses that do get started, the amount of _____ is what distinguishes the more successful from the less successful firms. A. effort B. opportunities C. subordination D. expertise
b
Getting organized and registered—which creates a boundary—is an example of a(n) A. financial activity. B. operations activity. C. human resources activity. D. management activity.
a
Harvest entrepreneurs A. are often wealthy, but largely unknown. B. alternate periods of growth and stability which are determined by personal needs. C. may scale down their ventures as they get older, but continue to work in their business. D. are people who generally have another job that is their primary one.
c
Idea people are not particularly driven by _____, but they are driven by _____. A. greatness; great wealth B. hard work; risk taking C. great wealth; having their idea achieve greatness D. fame; socialization
a
Identify the simplest form of discrimination. A. Access B. Role conflict C. Set-asides D. Collusion
a
Identify the strategy where the idea is to slow down when children are young and push for growth when the children are older. A. Spiral B. Harvest C. Growth D. Habitual
d
Identify the trait which all entrepreneurial personality types have in common. A. Loneliness B. Social isolation C. Risk taking D. Hard work
b
Key business functions and industry-specific knowledge are parts of _____ competency. A. resource B. basic business C. determination D. opportunity
a
Like classic entrepreneurs, small business owners are all of the following EXCEPT A. risk takers. B. socially isolated. C. often alone. D. hard workers.
d
Only _____ of family-owned businesses survive beyond the first generation. A. three-quarters B. one-half C. one-fourth D. one-third
c
People who begin their business after having retired or resigned from work in corporations at the age of 50 or later are called _____ entrepreneurs. A. harvest B. helical or spiral C. late career D. growth
c
The ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business such as time, information, location, financing, raw materials, and expertise is called A. basic business competencies. B. opportunity competencies. C. resource competencies. D. determination competencies.
d
The career goal of which entrepreneur is personal satisfaction first, income second? A. Growth entrepreneurs B. Harvest entrepreneurs C. Occasional entrepreneurs D. Habitual entrepreneurs
d
The competency suggested by _____ relates to the organizational and business processes of a firm. A. intention B. resource C. exchange D. boundary
a
The energy and focus needed to bring a business into existence relates to which of the following competencies? A. Determination B. Resource C. Opportunity D. Basic business
a
The forms of business-related expertise are called A. competencies. B. core processes. C. personalities. D. ethics.
d
The intention component of the BRIE model reflects _____ competencies. A. basic business B. opportunity C. resource D. determination
c
The key for managing the demanding life of the entrepreneur is to A. list all your responsibilities as soon as you get them. B. prioritize your tasks based on their importance to your business and their due date. C. get advice from people in your line of business about the basic activities of the small business. D. perform all the business functions including sales, operations, accounting, finance, and human resources yourself.
a
The middle level of professionalization is called _____, where as opposed to a "best" restaurant, there is probably a restaurant you know of with great food but so-so service. A. specialized B. minimalized C. expertise D. standard
a
The two fastest growing minority groups represent the largest segments of minority business owners. These are A. Hispanics and Asians. B. Hispanics and Africans. C. Asians and Africans. D. Asians and Pacific Islanders.
d
There are certain fundamental activities that all businesses must perform, which are called A. engineering business functions. B. basic business functions. C. business accreditations. D. key business functions.
d
These entrepreneurs are the classic part-time entrepreneurs, who might work on a seasonal basis. A. Habitual B. Spiral C. Growth D. Occasional
d
Two challenges typical to family businesses are A. motivation and nepotism. B. leadership and finances. C. succession and access. D. role conflict and succession.
d
Unlike _____, _____ are actually risk-averse. A. idea persons; classic entrepreneurs B. managerial entrepreneurs; classic entrepreneurs C. sales entrepreneurs; idea persons D. classic entrepreneurs; small business owners
a
What best describes the problem that arises when people have multiple responsibilities and each makes different demands on them? A. Role conflict B. Succession C. Leadership D. Role ambiguity
b
What is the goal of growth entrepreneurs? A. Personal satisfaction B. Major success C. Income D. Work first in order to play later
c
What is the key difference between a family council and a board of directors? A. The board is focused on business-family relationships. B. The board includes significant family membership. C. The function of the family council is to keep the family involved. D. Family councils should get professional advice at the start.
b
When woman or minority-owned businesses are simply excluded from the opportunities offered to firms owned by white males, it is called the challenge of A. consistency. B. access. C. flexibility. D. mutuality.
b
Which of the following are owners with an exit plan? A. Growth entrepreneurs B. Harvest entrepreneurs C. Occasional entrepreneurs D. Habitual entrepreneurs
b
Which of the following deals with the actual process of exploring an opportunity for profit? A. Resource B. Exchange C. Intention D. Boundary
d
Which of the following does NOT hold true of the minimalized level of professionalization? A. The entrepreneur does nearly everything in the simplest way possible. B. Usually, there is no systematic accounting. C. Record keeping will vary between nonexistent and haphazard. D. Inspires the highest levels of trust among customers.
d
Which of the following does not pertain to role conflict? A. It describes the kind of problem that arises when people have multiple responsibilities B. It is at its worst when people fail to recognize it C. It causes a shortage of time D. It is the process of intergenerational transfer of a business
c
Which of the following entrepreneurs employ about 58 percent of America's total workforce? A. Women entrepreneurs B. Second career entrepreneurs C. Family business owners D. Minority entrepreneurs
b
Which of the following holds true of habitual entrepreneurs? A. Their goal is to work first in order to play later B. Usually they have no succession plan C. When they do retire, they tend to want to micromanage their successors D. They work on a seasonal basis
d
Which of the following is NOT a challenge faced by second career entrepreneurs? A. Adjusting to the entrepreneurial life B. Reestablishing self-confidence C. Keeping personal finances out of the business D. Deciding whether to return to work
c
Which of the following is NOT a typical career path for entrepreneurs? A. Habitual entrepreneurship B. Harvest entrepreneurship C. Mature entrepreneurship D. Spiral entrepreneurship
a
Which of the following personality types is more concerned with their social standing and acceptance than their personal wealth? A. Salesperson entrepreneur B. Managerial entrepreneur C. Classic entrepreneur D. Idea person
c
Which of the following personality types is often very risk-averse, preferring to build wealth through careful planning and action? A. Idea person B. Small business owner C. Managerial entrepreneur D. Classic entrepreneur
b
Which of the following relates to expert businesses? A. The entrepreneur does nearly everything in the simplest way possible. B. All the major functions of the firm follow standard business practices of the industry. C. The founders are passionate about one or two of the key business functions. D. They are satisfied if other activities are no worse than other businesses in their market.
d
Which of the following relates to the skills necessary to identify and exploit elements of the business environment that can lead to profitable and sustainable business? A. Determination competencies B. Basic business competencies C. Resource competencies D. Opportunity competencies
b
Which of the following statements about a family council is false? A. One way to maximize communication in the succession process is to create a family council. B. The main function of the family council is to be focused on running the business. C. A family council includes family members with immediate interests in the business. D. The meetings can be a good forum for grappling with issues like role expectations.
b
Which of the following statements about certification for women- and minority-owned small businesses is false? A. Certification consists of an examination based acknowledgement that the firm is owned and operated as specified. B. Certification is for every women- or minority-owned small business. C. For those businesses that qualify, certification provides a ready means of access to opportunity and to networks of businesses and government agencies. D. For corporations, certification is handled by organizations that are not affiliated with the government or big business, such as the National Minority Supply and Diversity Council.
a
Which of the following statements about entrepreneurial teams is false? A. Most teams are nonfamily related B. The majority of new businesses have a team of two or more co-owners C. The trend is toward even more businesses being developed by teams of entrepreneurs D. When family members start a business, they start with already knowing and trusting each other
b
_____ businesses have founders or owners who are passionate about one or two of the key business functions, such as sales or operations. A. Expert B. Specialized C. Minimalized D. Global
c
_____ entrepreneurs alternate periods of growth and stability which are determined by personal or family needs. A. Occasional B. Harvest C. Spiral D. Growth
a
_____ entrepreneurs are owners for a lifetime, sometimes in one business, and sometimes across several firms. A. Habitual B. Harvest C. Growth D. Spiral
b
_____ entrepreneurs are people who generally have another job that is their primary one. A. Harvest B. Occasional C. Helical D. Spiral
c
_____ refers to the extent to which a firm meets or exceeds the standard business practices of its industry. A. Standard operating procedure B. Organizational commitment C. Professionalization D. Intention
b
_____ refers to the process of intergenerational transfer of business. A. Role conflict B. Succession C. Leadership D. Access
