Ch

Which of the following is not an advantage of the corporate form of ownership? Limited liability for the owners. It is the easiest and least expensive form of ownership to create. Easy transfer of ownership. Perpetual life.

It is the easiest and least expensive form of ownership to create

What type of thinking includes the ability to see the differences among various data and​ events? A. Bilateral B. Convergent C. Lateral D. Divergent E. Unilateral

D. Divergent

The Great Recession during which many​ businesses, both big and​ small, failed, is an example of which macro​ force? A. Sociocultural B. Political and legal C. Demographic D. Economic E. Technological

D. Economic

A study by CCH and Wolters Kluwer concluded that 49 percent of business​ start-ups fail due​ to: A. excessive fixed costs B. poor cash management C. choosing the wrong location D. starting with too little money E. prices that are too high

D. starting with too little money

Nearly​ _______ of the billionaires on the Forbes list of the 400 richest Americans are​ first-generation entrepreneurs. A. ​one-fourth B. ​one-third C. ​one-half D. ​three-fourths E. ​two-thirds

D. ​three-fourths

Entrepreneurs are calculated _____. ANSWER pessimists risk takers pragmatists owners

risk takers

According to Harvard's Ted Levitt, creativity is ___ new things and innovation is ___ new things. ANSWER marketing; producing doing; thinking thinking; doing developing; profiting from

doing; thinking

Innovation is the ability to ____ creative solutions to problems and opportunities to enhance or enrich people's lives. ANSWER profit from exploit apply benefit from

apply

A limited partnership is composed of at least one general partner and at least one ___ partner. ANSWER dormant minority silent limited

limited

In a ____, the company's debts are the owner's debts. ANSWER C corporation sole proprietorship corporation S corporation

sole proprietorship

​Women-owned companies in the United States generate sales nearly​ ______ trillion a year. A. ​$4.1 B. ​$3.2 C. ​$1.6 D. ​$5.0 E. ​$2.1

C. ​$1.6 Women own slightly more than 31 percent of privately held businesses in the United​ States, and their companies generate nearly​ $1.6 trillion in annual sales.

Which of the following is NOT a feasibility analysis component? ANSWER Industry and market feasibility Customer feasibility Product or service feasibility Financial feasibility

Customer feasibility

Business leaders should exhibit which of the following​ characteristics? A. Passionate about their businesses. B. All of these are characteristics that business leaders should exhibit. C. Committed to a bedrock of resolute values but adaptable. D. Willing to take risks. E. Being​ innovative, embracing new ideas

B. All of these are characteristics that business leaders should exhibit.

At​ top-performing companies, new products—those launched within the previous three years—account for​ _____ percent of sales. A. 57 B. 24 C. 49 D. 38 E. 14

D. 38

____ are small companies that operate globally from their inception. ANSWER Gazelles Unicorns Micromultinationals Born-again globals

Micromultinationals

_____ is the first step in the creative process. ANSWER Transformation Illumination Implementation Preparation

Preparation

___ entrepreneurs seek solutions to some of society's most vexing problems. ANSWER Corporate Leapfrogging Serial Social

Social

____ and cultural change (such as more women entering the workforce) can lead to dramatic changes that can create new industries and fundamentally transform existing industries. ANSWER Demographic Technological Economic Social

Social

Completed items ready for shipment are classified as: a. MRO inventories b. Product demand inventories c. Work-in-completion inventories d. Finished goods inventories

d. Finished goods inventorie

The six foundational macro forces are: sociocultural, technological, _____, economic, political and legal, and global. ANSWER demographic industrial competitive market

demographic

In essence, entrepreneurs are ____, upending the status quo. ANSWER supporters disrupters enablers cooperators

disrupters Entrepreneurs are catalysts who create change by upending traditional ways of doing things.

Polly Harris, who lives in Altamonte Springs, Florida invested in a partnership that is in Skokie, Illinois. She is neither active in the business nor do many people know that she is associated with the business. Polly Harris is a ___ partner. ANSWER silent general minority dormant

dormant

While traditional managers focus on managing available resources, ____ look to spot and capitalize on opportunities. ANSWER intermediaries younger managers entrepreneurs CEOs

entrepreneurs

In contrast to her brother Juan, Lupe Lamora started a business in 2013, sold it, started a second one in 2016, sold it in 2017, and started a new one again. Lupe is a(n) _____. ANSWER intrapreneur leapfrogger juggler adapter

leapfrogger

With respect to bargaining power of suppliers, an industry is more attractive when __________________________. ANSWER no substitute products are available for the items suppliers provide companies in the industry find it hard to switch from one supplier to another or to substitute products when switching costs are high many suppliers sell a commodity product to the companies in it

many suppliers sell a commodity product to the companies in it

Jeff Fuqua and Jaimie Mantle are co-owners of a business where they share the business's assets, liabilities, and profits according to previously agreed upon terms. Jeff and Jamie's form of business ownership is a ___________________. ANSWER proprietorship partnership S corporation C corporation

partnership

In launching Uber, the founders created a market-changing, disruptive breakthrough that was a result of generating something from nothing. The Uber example suggests that sometimes innovation is _____. ANSWER revolutionary methodical ordered evolutionary

revolutionary

One of the advantages of a proprietorship is that ______________________. ANSWER there is lack of continuity of the business there is limited access to capital there is the profit incentive there is unlimited personal liability

there is the profit incentive

Prior to launching her decorative mailbox business, Molly Yates spent several days driving around town and observing the competition. Molly Yates was doing "____" research. ANSWER vehicular archival drive-through windshield

windshield

​A(n) ___________ entrepreneur is someone who starts and manages several companies at the same time. A. opportunity B. necessity C. juggler D. leapfrogger E. parallel

C. juggler

In a partnership, because of ___ power, all partners must exercise good faith and reasonable care when performing their responsibilities. ANSWER exigency agency tort business

agency

Of the following, which form of ownership is a cross between a corporation and a partnership? ANSWER Limited liability company C corporation Proprietorship Not-for-profit

Limited liability company

An S corporation can have no more than​ _____ shareholders. A. 50 B. 125 C. 100 D. 35 E. 75

C. 100

Studies show that​ ____ percent of employees in North America are disengaged from their​ work, which results in higher​ turnover, accident, and absenteeism rates. A. 34 B. 9 C. 16 D. 27 E. 3

C. 16 Studies show that only 33 percent of employees in North America are fully engaged in their work and that 16 percent actually are disengaged.

Entrepreneurs who write business plans early are​ _______ times more likely to actually start their businesses than those who do not. A. 10 B. 7 C. 2.5 D. 4.5 E. 8

C. 2.5

An effective interviewer should spend about​ _____ percent of the interview talking to the job candidate. A. 55 B. 45 C. 25 D. 75 E. 5

C. 25

The Pundabis Company is a family owned corporation whose shares are held and controlled by the Pundabis family and not traded on any exchange. The Pundabis Company is a ___held corporation. ANSWER closely publicly minority majorit

closely

More often, innovation is _____, developing market-sustaining ideas that elaborate on existing products, processes, and services that result from putting old things together in new ways or from taking something away to create something simpler or better. ANSWER disruptive evolutionary fast-paced revolutionary

evolutionary

Which element lies at the center of the business model canvas and represents the collection of products​ and/or services a business will offer to meet the needs of​ customers? A. Key activities B. Key resources C. Revenue streams D. Value proposition E. Customer relationships

D. Value proposition

Which of the following questions is an illegal question to ask in an​ interview? A. Have you ever been convicted of a​ crime? B. Are you willing to travel as part of this​ job? C. Are you currently using illegal​ drugs? D. Would your religious beliefs interfere with your ability to do this​ job? E. Do you drink​ alcohol?

D. Would your religious beliefs interfere with your ability to do this​ job?

The average time required to fill a job across all industries in the United States​ is: A. 21.7 days B. 32.5 days C. 36.8 days D. 15.4 days E. 27.8 days

E. 27.8 days The average time required to fill a job across all industries in the United States is 27.8​ days, a significant increase from 15.4 days in 2009.

New​ products, those that companies have launched within the previous five​ years, account for​ ____ percent of sales at​ top-performing companies. A. 25 B. 44 C. 51 D. 16 E. 38

E. 38 Correct. New​ products, those that companies have launched within the previous five​ years, account for 38 percent of sales at​ top-performing companies. New products are crucial to​ companies' success.

Which of the following is an element of a meaningful elevator​ pitch? A. The benefit that a company and its products or services offer its customers. B. The target customers at whom a company aims its products or services. C. The​ company's point of differentiation dash- what separates it from its competitors. D. An explanation of what the company does in​ easy-to-understand terms. E. All of these are part of a meaningful elevator pitch.

E. All of these are part of a meaningful elevator pitch.

What type of thinking includes the ability to see the similarities and the connections among various and often diverse data and​ events? A. Lateral B. Bilateral C. Divergent D. Unilateral E. Convergent

E. Convergent

Which part of a feasibility analysis assesses the concept from the broadest​ "macro" level? A. Financial feasibility B. Sustainability feasibility C. ​Entrepreneur/team feasibility D. Product or service feasibility E. Industry and market feasibility

E. Industry and market feasibility

Which of the following elements is NOT part of​ Porter's Five Forces​ Model? A. The bargaining power of suppliers to the industry. B. Rivalry among companies competing in the industry. C. The bargaining power of buyers. D. Threat of substitute products or services. E. Profit potential of the industry.

E. Profit potential of the industry.

The average employee tenure at a company is about __ years. ANSWER 9.1 6 3.2 8.5

8.5

​___________, a​ creativity-enhancing technique, involves a small group of people who interact with very little structure with the goal of producing a large quantity of novel and imaginative ideas. A. Brainstorming B. TRIZ C. Rapid prototyping D. ​Mind-mapping E. ​Force-field analysis

A. Brainstorming

Which type of intellectual property protection gives the inventor of a product the exclusive right to​ make, use, or sell the invention and to prevent others from​ making, using, or selling it in the United States for 20​ years? A. Patent B. Injunction C. Service mark D. Copyright E. Trademark

A. Patent

Which of the following is not a component of the Really Big Idea Sketch​ Pad? A. Profit B. Value proposition C. Offering D. Customer E. Product or service offering

A. Profit

The​ ________ test of a business plan involves proving that a business offers a high probability of repaying its loans or an attractive rate of return to investors. A. competitive B. priority C. value D. benefit E. reality

C. value

____ is a plan under which employees can purchase shares of a company's stock at a fixed price. ANSWER Stock options Profit-sharing Open-book management Pay-for-performance

Stock options

With respect to bargaining power of buyers, which of the following factors make the industry attractive? ANSWER The number of buyers in the industry is large. Customers demand undifferentiated products. Customers find it easy to get information on suppliers' costs, prices, and product features. Customer switching costs are low.

The number of buyers in the industry is large.

Cycle counting can be described as: a. Inventory control in a motorcycle shop. b. Physically counting inventory on a periodic basis. c. The analysis performed by an ABC analysis. d. Stock counts of MRO items.

b. Physically counting inventory on a periodic basis.

An RFID system consists of: a. The standards, the equipment, the software, and the printer. b. The tag, reader, communication network, and software. c. The code, band, writer, and reader. d. The header, manager, object, and serial number.

b. The tag, reader, communication network, and software

After evaluating the broad macro environment, the entrepreneur changes focus to the immediate competitive environment. A useful tool for analyzing a specific industry's attractiveness within the competitive environment is the Five Forces Model developed by Harvard Business School's Michael Porter. According to the Five Forces Model, these forces interact with one another to determine the setting in which companies compete and hence the attractiveness of the industry. Which of all the following is NOT one of the five forces? a not selected option a threat of new entrants b not selected option b bargaining power of buyers c not selected option c the rivalry among noncompeting firms d not selected option d bargaining power of suppliers e not selected option e threat of substitute products or services

c the rivalry among noncompeting firms

Too much inventory creates: a. Excess setup cost. b. Excess ordering cost. c. Excess carrying cost. d. Excess stockout cost

c. Excess carrying cost

Ian and Liz Walters, a husband and wife team, launched an app-based start-up in 2016 and have run it together ever since. Ian and Liz Walters are called ____. ANSWER multitaskers jugglers adapters copreneurs

copreneurs

According to Joseph Schumpeter, _____ is when people rethink conventional assumptions and discard those that are no longer useful. ANSWER incremental innovation creative destruction design thinking focused thinking

creative destruction

A company's ___ is the distinctive, unwritten, informal code of conduct that governs an organization's behavior, attitudes, relationships, and style. ANSWER culture formalization code of ethics hierarchy

culture

When Juan Sanchez got a job driving a truck for the Peppers Bread Company, he got a sheet of paper from his employer that told him what his duties and responsibilities were, how he should perform his job, and who he would report to. What Juan Sanchez received was a job ___. ANSWER sheet order analysis description

description

Entrepreneurs have the ability to focus intently on achieving a singular, long-term goal. This characteristic is called ____. ANSWER disruptability imutability determination adaptability

determination

When Suresh Kumar was applying for accounting positions, he found that, unlike other companies, Duke Construction allowed accountants to not only make ledger entries but also prepare financial statements and help operating managers in decision making by providing relevant accounting information. Duke Construction made the accounting job attractive via job ____. ANSWER specialization simplification rotation enrichment

enrichment

_____ is the ability to apply creative solutions to problems and opportunities to enhance or enrich people's lives. ANSWER Innovation Creativity Marketing Planning

innovation

Unlike corporations which can operate "for perpetuity," LLCs have ______. ANSWER limited life spans long life spans unlimited life to be wound up in five years

limited life spans

Generally, a(n) ___ strategy is a good way for a new business to enter the market. ANSWER product niche international functional

niche

Entrepreneurs are accustomed to being clever without ____. ANSWER ideas encouragement resources discouragement

resources

For The New York Times (printed newspaper), the iPad is a _____________. ANSWER substitute buyer new entrant supplier

substitute

Most patents are commonly granted for ___ patents. ANSWER general design plant utility

utility

_______ are positive internal factors that a company can draw on to accomplish its​ mission, goals, and objectives. A. Strengths B. Key success factors C. Weaknesses D. Opportunities E. Threats

A. Strengths

In the United​ States, ____ percent of adults have confidence in small​ businesses, compared to just 21 percent who have confidence in big businesses and 8 percent who have confidence in Congress. A. 67 B. 28 C. 51 D. 87 E. 72

A. 67 In the United​ States, 67 percent of adults have confidence in small​ businesses, compared to just 21 percent who have confidence in big businesses and 8 percent who have confidence in Congress.

Members of which minority group are most likely to be​ entrepreneurs? A. Hispanic B. Asian C. ​African-American D. Native American E. Pacific Islanders

A. Hispanic Members of the Hispanic population represent the largest and​ fastest-growing segment of​ minority-owned businesses in the United States.

Which form of ownership is the simplest and least costly to​ form? A. Sole proprietorship B. S corporation C. Limited partnership D. Corporation E. Limited liability company

A. Sole proprietorship

The​ _________ stage of the creative process includes both convergent and divergent thinking to move from unfocused knowledge and information to a purposeful idea. A. transformation B. illumination C. preparation D. investigation E. verification

A. transformation

The typical entrepreneur in the United States launches a business with an average​ of: A. ​$30,000 B. ​$50,000 C. ​$1,000 D. ​$100,000 E. ​$15,00

A. ​$30,000

What type of organizational structure best supports and nourishes​ creativity? A. ​Spaghetti-style B. Flat pyramid C. Traditional pyramid D. Hexagonal E. Linear

A. ​Spaghetti-style

Which of the following symbols can a business that has registered its trademark with the U.S. Patent and Trademark Office​ (USPTO) use? A. ​® B. SM C. ​© D. Pending E. TM

A. ​®

Which of the following statements about small​ businesses' contribution is false​? A. Small businesses employ 48 percent of the private sector workforce. B. Small businesses pay 43 percent of the private sector payroll. C. Small businesses produce 23 percent of the U.S. gross domestic product​ (GDP). D. Small businesses create 63 percent of the net new jobs in the U.S. economy. E. Small businesses account for 47 percent of business sales.

C. Small businesses produce 23 percent of the U.S. gross domestic product​ (GDP).

Alicia founded her business 29 years ago and has decided that she is ready to​ retire, but none of her children are interested in taking over her successful company. Alicia wants to step down from her company to retire immediately. Which of the following exit strategies should she​ use? A. Leveraged buyout B. Employee stock ownership plan C. Straight sale D. ​Buy-sell agreement E. Estate freeze

C. Straight sale A straight sale allows an entrepreneur to walk away from his or her business and turn over the reins to someone else immediately.

When Avishai Abrahami started​ Wix, the company used Flash to help owners of small businesses create stunning websites.​ However, as customers began switching to mobile devices to access the​ Internet, Flash became impractical as a​ website-building tool. Abrahami shifted the focus of his company to an​ all-inclusive platform that allows small companies to create and manage their entire online presence without having any programming or coding skills.​ Abrahami's change to the business was an example of​ a: A. segment B. lean​ start-up C. product pivot D. minimum viable product E. business prototype

C. product pivot

The average cost for a company to fill an open position is​ about: A. ​$7,100 B. ​$6,100 C. ​$4,100 D. ​$9,100 E. ​$5,100

C. ​$4,100

The average business owner works​ _____ hours per​ week, compared to the 40.2 hours per week the typical U.S. production employee works. A. 40 B. 36 C. 24 D. 51 E. 45

D. 51

Which type of market research involves gathering and analyzing data that has already been compiled and is​ available, often at a reasonable cost or sometimes even​ free? A. Symbiotic B. Principal C. Primary D. Secondary E. Subliminal

D. Secondary

In the United​ States, entrepreneurs launch​ ________ million businesses annually. A. 1.2 B. 4.8 C. 2.6 D. 8.4 E. 6.6

E. 6.6

Between 1993 and​ 2013, small businesses created​ _____ percent of the net new jobs in the U.S. economy. A. 83 B. 93 C. 23 D. 43 E. 63

E. 63 During that​ time, small businesses created 63 percent of the net new jobs in the U.S. economy.

Within ten years of​ start-up, ____ percent of small businesses will have shut down. A. 75 B. 51 C. 22 D. 34 E. 66

E. 66 Within ten years of​ start-up, 66 percent of small businesses will have shut down.

Which of the following statements best describes the difference between leadership and​ management? A. Leadership focuses on doing things​ right; management deals with doing the right things. B. Management deals with examining the paradigms on which a business​ operates; leadership operates within those paradigms. C. Leadership deals with​ things; management deals with people. D. Leaders are the builders of a​ business; managers are the architects. E. Leadership deals with setting a​ vision; management deals with the logistics of achieving that vision.

E. Leadership deals with setting a​ vision; management deals with the logistics of achieving that vision..

Creative thinkers tend​ to: A. see problems as springboards for new ideas. B. ask​ "Is there a better​ way?" C. play mental​ games, trying to see an issue from different perspectives. D. challenge​ custom, routine, and tradition. E. all of these are correct.

E. all of these are correct.

A corporation whose shares of ownership are controlled by a relatively small number of​ people, often family​ members, friends, or​ employees, is called​ a(n) ___________ corporation. A. limited liability B. S C. C D. publicly held E. closely held

E. closely held

The voluntary turnover rate for employees is nearly​ _____ percent, which means that the average​ employee's tenure at a company is about​ ______ years. A. ​18; 5.5 B. ​5; 20 C. ​22; 4.5 D. ​9; 11 E. ​12; 8.5

E. ​12; 8.5

Of the nearly 29 million businesses in the United​ States, what percentage are considered​ "small"? A. ​50.2% B. ​75.6% C. ​25.5% D. ​87.5% E. ​99.7%

E. ​99.7% About 99.7 percent of all businesses in the United States are considered small.

The categories of inventory are raw materials, work-in-process, finished goods and _______. a. Operating items b. Anticipation inventories c. Maintenance, repair and operating supplies d. In-transit inventories

c. Maintenance, repair and operating supplies

To create a productive and fun workplace that enables the employees and the company to excel, important factors include having a sense of purpose, having a sense of fun, and ____. ANSWER a sense of profit orientation homogeneity engagement awareness of the competition

engagement

Apple, Inc., Mary Kay Cosmetics, and Hershey, Inc. have one thing in common. They all started as ____ businesses. ANSWER venture capital-backed micromultinational born-global home-based

home-based

Leadership gets a small business going; _____ keeps it going. ANSWER markets compeititors management the government

management

In a partnership, partners are bound by the law of ______________. ANSWER exigency agency mutual benefit torts

agency

after conducting the idea assessment, an entrepreneur scrutinizes the idea further through a feasibility analysis. Which of the following four interrelated components is NOT part of a feasibility analysis? a not selected option a financial b not selected option b entrepreneur c not selected option c product or service d not selected option d operations e not selected option e industry or market

d operations

The median salary for entrepreneurs is​ _______ than that of employed​ workers; the variability of​ entrepreneurs' incomes is​ _______ than that of employed workers. A. 3 times​ higher; higher B. 5 times​ higher; lower C. 45 percent​ higher; higher D. 18 percent​ higher; higher E. 10 percent​ lower; lower

D. 18 percent​ higher; higher

Which of the following elements of a financial feasibility analysis involves estimating the amount of money an entrepreneur will need to start his or her​ business? A. Payback period B. Time out of cash C. Return on investment D. Capital requirement E. Estimated earnings

D. Capital requirement

A limited liability​ company's ________ is similar to a​ corporation's bylaws and outlines the way the LLC will conduct business. A. articles of organization B. founding contract C. annual report D. operating agreement E. charter

D. operating agreement

Which industry sector dominates the U.S.​ economy? A. Manufacturing B. Retail C. Insurance and financial services D. Construction E. Services

E. Services The service sector accounts for 82.5 percent of the jobs and 80.1 percent of the private sector GDP in the United States.

Most ____ do not become successful businesses. ANSWER companies firms organizations ideas

ideas

What percentage of all privately held businesses in the United States are owned by​ women? A. 31.1 percent B. 40 percent C. 16 percent D. 52 percent E. 24.5 percen

A. 31.1 percent

Which of the following is NOT a reason why home-based businesses are booming? A home-based business can easily attract funding. Technology allows entrepreneurs to run a wide variety of businesses from their homes. Home-based businesses allow owners to maintain flexible life and work styles. Operating a business from home keeps start-up and operating costs to a minimum.

A home-based business can easily attract funding

In the United​ States, _____ percent of adults are actively engaged in launching a business. A. 2.4 B. 12.6 C. 5.7 D. 8.3 E. 18.2

B. 12.6

Immigrants to the United States are​ ______ times as likely to start businesses as​ native-born citizens. A. ​one-fourth B. 2 C. 4 D. ​one-half E. 1.1

B. 2

​_________ thinking is the ability to see the differences among various data and events. A. Divergent B. Bilateral C. Lateral D. Unilateral E. Convergent

A. Divergent The ability to see the differences among various data and events is divergent thinking.

The ability to develop new ideas and to discover new ways of looking at problems and opportunities​ is: A. creativity B. entrepreneurship C. innovation D. divergent thinking E. intrapreneurship

A. creativity

A(n) ________ is the simplest version of a product or service of a product or service with which an entrepreneur can create a sustainable business. A. inferior good B. minimum viable product C. normal good D. pivot E. Giffen good

B. minimum viable product

The constant​ "churn" of businesses in the U.S. economy in which new businesses and new ideas make existing ones​ obsolete: A. has a negative impact on entrepreneurial activity. B. reflects a healthy entrepreneurial environment. C. is an indication of an imminent recession. D. leads to high levels of unemployment and inflation. E. results in fewer innovations in the economy.

B. reflects a healthy entrepreneurial environment. Joseph Schumpeter calls this process​ "creative destruction," the result of a healthy entrepreneurial economy in which entrepreneurs serve as important change agents in society.

Feasibility analysis comes after ____________. ANSWER idea assessment self-evaluation going to market fund raising

idea assessment

​Globally, the highest rates of entrepreneurial activity are among​ people: A. between the ages of 25 and 34 B. between the ages of 45 and 54 C. more than 55 years of age D. between the ages of 18 and 24 E. between the ages of 35 and 44

A. between the ages of 25 and 34

Which type of job interview produces the worst hiring​ results? A. Panel interview B. Unstructured C. Offsite interview D. Puzzle interview E. Structured

B. Unstructured

The goal of which of the following is to create an open, uninhibited atmosphere that allows members of the group to "freewheel" ideas? ANSWER Brainstorming TRIZ Rapid prototyping Mind mapping

Brainstorming

In starting her entrepreneurial venture, Shauna Porter found that while it was great to be the boss, she often had to make decisions on issues about which she was not really knowledgeable. Which of the following captures accurately the drawback of entrepreneurship that Shauna faces? ANSWER Uncertainty of income Complete responsibility Lower quality of life Discouragement

Complete responsibility

____ upset the traditional way of doing things by creating new ways to do them. ANSWER Correct Marketers Industrialists Disrupters Economists

Disrupters

_____ is the ability of a person to create a multitude of original, diverse ideas. ANSWER Divergent reasoning Freebasing Thinking Brainstorming

Divergent reasoning

Which of the following is NOT an element in a financial feasibility analysis? ANSWER Dividend policy Estimated earnings Time out of cash Capital requirements

Dividend policy

Which of the following is a distinct disadvantage of the C corporation form of ownership? ANSWER Double taxation Limited liability Ownership transferability Corporate veil

Double taxation

Which of the following statements about the typical entrepreneur is true​? A. The typical entrepreneur becomes​ super-rich from the profits of their businesses. B. The typical entrepreneur has few opportunities to be recognized for his or her contributions to society and the local community. C. The typical entrepreneur finds his or her work​ boring, unchallenging, and unexciting. D. The typical entrepreneur tends to be very dissatisfied in his or her business and eagerly anticipates retirement. E. The typical entrepreneur starts his or her business because he or she has an interest in that particular field and enjoys that type of work

E. The typical entrepreneur starts his or her business because he or she has an interest in that particular field and enjoys that type of work

Which of the following is NOT a characteristic exhibited by entrepreneurs? ANSWER High degree of commitment Flexibility Intolerance for ambiguity Creativity

Intolerance for ambiguity

_____ are people who start a company, manage its growth until they get bored, and then sell it to start another. ANSWER Correct Intrapreneurs Leapfroggers Jugglers Adapters

Leapfroggers

Which of the following refers to a sale situation where managers and/or employees borrow money from a financial institution to purchase a business and then use the money from the company's operations to pay off the debt? ANSWER Employee stock option plan Private equity sale Leveraged buyout Equity carve out

Leveraged buyout

___ entrepreneurs are those who start businesses because they cannot find work any other way. ANSWER Necessity Serial Family Opportunity

Necessity

According to Porter's Five Forces Model, a substitute for Coca-Cola (the product) is ____________. ANSWER Nestle Pure Life bottled water Store brand cola RC Cola Pepsi

Nestle Pure Life bottled water

Which of the following is NOT a parameter in the idea sketch pad? ANSWER Profit potential People Core competencies Customers

Profit potential

Which of the following is the first step in a management succession plan? ANSWER Select the successor. Cope with the financial realities of estate and gift taxes. Create a survival kit for the successor. Groom the successor.

Select the successor.

____ entrepreneurs are those who repeatedly start businesses and grow them to a sustainable size before striking out again, pushing this characteristic to the maximum. ANSWER Social Serial Failed Corporate

Serial

____ leadership is a leadership style in which a leader takes on the role of servant first and leader second. ANSWER Absentee Country club Ad-hoc Servant

Servant

Which of the following is the fastest-growing form of business ownership? ANSWER The S corporation Proprietorships The LLC Partnerships

The LLC

Which of the following best conveys the meaning of convergent reasoning? ANSWER The ability to apply logic to developing a financial reason for an option. The ability to create a multitude of original ideas. The ability to evaluate multiple ideas and choose the best solution to a given problem. The ability to brainstorm and identify various options.

The ability to evaluate multiple ideas and choose the best solution to a given problem.

A small​ company's "hedgehog": A. is a specific performance goal it must hit​ year-in and​ year-out to be successful. B. is the intersection of its​ passion, its distinctive​ competence, and its economic engine. C. involves defining the​ company's "BHAG," also known as the​ "big, hairy, audacious​ goal." D. involves​ "shooting bullets" in​ low-cost tests to figure out what works before unleashing the full power. E. involves making the best of the​ luck, both good and​ bad, that a company encounters along its journey.

The intersection of a​ company' passion, its distinctive​ competence, and its economic engine​ (what it can make money at​ doing) is its​ "hedgehog," the target on which a company must constantly focus.

Which best describes the concept of "creative destruction"? ANSWER A type of thinking that destroys creativity because it is narrowly focuses and limited by the status quo. When people rethink conventional assumptions and discard those that are no longer useful. Setting aside practicality to consider taking knowledge or a concept from one area and placing it in a totally different application. When you consider at least two different, often contradictory, notions at the same time.

When people rethink conventional assumptions and discard those that are no longer useful.

Which of the following is NOT a quality that should be exhibited by business leaders? ANSWER Innovative Passionate Willing to be risk-averse Adaptable

Willing to be risk-averse

The first step in assessing industry attractiveness is to paint a picture of the industry at the macro level. Market research firms, like MELT, can help develop effective business research and offer strategies for conducting it. Which of the following is NOT one of the six foundational macro forces that create change in industries and the markets they serve? a not selected option a sociopolitical b not selected option b technological c not selected option c economic d not selected option d demographic e not selected option e global

a sociopolitica

The two types of RFID tag are: a. Active and passive. b. Line of sight and radio signal. c. EPC and ISO. d. Bar code and writeable.

a. Active and passive.

When General Motors purchases tires for their automobiles, this can be classified as: a. Dependent demand b. Customer demand c. Continuous demand d. Independent demand

a. Dependent demand

Over the last 20​ years, which age group in the United States has the highest level of entrepreneurial​ activity? A. 55 to 64 B. 45 to 54 C. 35 to 44 D. 65 and above E. 20 to 34

A. 55 to 64

Comparing​ entrepreneurs' income to that of paid​ employees, which of the following is true​? A. ​Entrepreneurs' average income is much higher than that of paid employees and the variability of​ entrepreneurs' income is much lower. B. ​Entrepreneurs' average income is much lower than that of paid employees. C. ​Entrepreneurs' average income is much higher than that of paid employees but so is the variability of​ entrepreneurs' income. D. The variability of​ entrepreneurs' income is much lower than that of paid employees. E. ​Entrepreneur's average income is much lower than that of paid employees and so is the variability of​ entrepreneurs' income.

C. ​Entrepreneurs' average income is much higher than that of paid employees but so is the variability of​ entrepreneurs' income Both the mean and median incomes of entrepreneurs are higher than those of paid​ employees, but so is the variability of their income.

​_____ percent of small business owners in the United States say that they can find few or no qualified applicants for job openings. A. 90 B. 10 C. 25 D. 45 E. 75

D. 45

What percentage of employees in North America are fully engaged in their​ work? A. 43 B. 23 C. 53 D. 63 E. 33

E. 33

Research shows that 95 percent of employees rate compensation as either important or very important to their job satisfaction. What percentage of employees are satisfied with their level of​ compensation? A. 75 percent B. 45 percent C. 55 percent D. 35 percent E. 65 percent

E. 65 percent Research shows that 95 percent of employees rate compensation as either important or very important to their job​ satisfaction; however, only 65 percent of employees are satisfied with their level of compensation.

In​ a(n) ________​ corporation, shares of ownership are controlled by a relatively small number of​ people, often family​ members, friends, or employees. A. limited B. C C. S D. publicly held E. closely held

E. closely held A closely held corporation is one whose shares of ownership are controlled by a relatively small number of​ people, often family​ members, friends, or employees. Next Question

Time pressures and pessimistic coworkers are potential ___ creativity. ANSWER Correct enablers of barriers to paths to supporters of

barriers to

Successful entrepreneurship requires ________. ANSWER both divergent and convergent reasoning divergent reasoning convergent reasoning either divergent or convergent reasoning

both divergent and convergent reasoning

Jamie's Bakery, a small chain of eight bakeries in Altamonte Springs, Florida has recorded sales growth of 30 percent or more per year ever since it was started in 2010, and in 2017 had revenues of $229,000. Jamie's Bakery is a(n) _____. ANSWER tiger gazelle unicorn jaguar

gazelle Gazelles, fast growing companies, create 70 percent of new jobs in the economy.

Successful entrepreneurs understand the process of going from ideas to the launch of a new business venture ____________. ANSWER is routine is like a funnel is easy can be done quickl

is like a funnel

Juan Lamora started four entrepreneurial ventures between 2014 and 2016, and in 2017 he was managing all four ventures at once. In the language of entrepreneurship, Juan is a(n) ____. ANSWER social entepreneur leapfrogger intrapreneur juggler

juggler

What matters more in today's business is not so much the traditional factors of production but ______. ANSWER marketing and sales knowledge and information finances inexpensive labor

knowledge and information

During the incubation phase it may appear that the creative person is _____________. ANSWER active loafing implementing busy

loafing

Which of the following is NOT an "R" in rapid prototyping? ANSWER Rough Right Rapid Refined

refined Refined is the opposite of what rapid prototyping is all about. In rapid prototyping, models do not have to be perfect.

Entrepreneurs are accustomed to being clever without ____. ANSWER discouragement resources ideas encouragement

resources Entrepreneurs do not feel constrained from pursuing opportunities because they lack resources. In fact, they are accustomed to operating without a lot of resources.

A corporation receives its charter from the ________. federal government state board of directors stockholders

state

In the idea sketch pad, ______ asks the question: how does the product or service address the need customers currently have that is not being met? ANSWER offering people value proposition core competencies

value proposition

______ are conformists, who abide by traditional rules, and thrive in a traditional corporate environment. ANSWER Sole proprietors Adapters Entrepreneurs Disrupters

Adapters

_____ percent of all businesses are​ home-based. A. 63 B. 74 C. 23 D. 38 E. 52

E. 52 Fifty-two percent of all businesses are​ home-based.

What kind of work schedule strategy reduces employee turnover? ANSWER Flexible Fixed Occasional Yearly

Flexible

Which of the following is NOT one of the components of creativity, according to creativity expert Teresa Amabile? ANSWER Focus Motivation Creative thinking skills Expertise

Focus

The Business Model Canvas was developed by _____________________. ANSWER Evers and Chance Tinker and Evers Osterwalder and Pigneur Preminger and Wagenbusch

Osterwalder and Pigneur

____ partners are not active in a business but generally are known to be members of the partnership. ANSWER General Active Limited Silent

Silent

Of the following, which form of ownership has the lowest cost of formation? ANSWER Sole proprietorship General partnership Limited partnership C corporation

Sole proprietorship

Which is the simplest and most popular form of ownership? ANSWER C corporation Partnership S corporation Sole proprietorship

Sole proprietorship

Which of the following is NOT an advantage of a proprietorship? ANSWER Sure incorrect Profit incentive No special legal restrictions Unlimited personal liability Simple to create

Unlimited personal liability

Each unit produced contains $1.25 in materials. This is an example of: a. Direct cost b. Carrying cost c. Processing cost d. Setup cost

a. Direct cost

If the EOQ assumptions hold, and if a firm orders the EOQ, the average inventory level over time should be a. Half the EOQ. b. Twice the EOQ. c. Equal to the lead time quantity. d. The square root of the EOQ.

a. Half the EOQ.

Question Help ​______ percent of employee turnover is caused by poor hiring decisions. A. 60 B. 80 C. 20 D. 50 E. 40

B. 80

About 30 percent of family businesses survive into the second generation.​ ____ percent of those make it to the third​ generation, and​ _____ percent of those make it to the fourth generation and beyond. A. ​42; 9 B. ​12; 3 C. ​60; 14 D. ​21; 6 E. ​6; 1

B. ​12; 3

After 5​ years, _____ percent of new businesses will have failed. A. 66 B. 19 C. 34 D. 52 E. 90

D. 52

____ are accustomed to making do without resources. ANSWER Financiers Marketers Entrepreneurs Industrialists

Entrepreneurs

The quantity discount model is used when: a. The purchase price varies. b. The purchase lead time varies. c. Demand varies over time. d. The EOQ is discounted.

a. The purchase price varies

​__________ is a market research techniques that involves enlisting a small number of potential​ customers, typically 8 to​ 12, to provide feedback about a product or service. A. A focus group B. An​ in-home trial C. A prototype D. Secondary research E. Windshield research

A. A focus group

Creative thinkers tend to exhibit which of the following​ characteristics? A. Ask​ "What if..." often. B. Challenge​ custom, routine, and tradition. C. Relate seemingly unrelated ideas to a problem to generate potential solutions. D. See problems as springboards for new ideas. E. All of these are correct.

A. Ask​ "What if..." often. B. Challenge​ custom, routine, and tradition. C. Relate seemingly unrelated ideas to a problem to generate potential solutions. D. See problems as springboards for new ideas. All of these are correct.

Myopic​ thinking, thinking that is narrowly focused and limited by the status​ quo, is a symptom of which of the ten mental locks to​ creativity? A. Becoming overly specialized B. Believing that​ "I'm not​ creative" C. Viewing play as frivolous D. Searching for the one​ "right" answer E. Avoiding ambiguity

A. Becoming overly specialized

Which one of the​ "five Cs of​ credit" includes the​ owners' investment in the​ start-up company? A. Capital B. Capacity C. Collateral D. Character E. Conditions

A. Capital

Which part of the business model canvas illustrates how a company will make money and forms the basis for making detailed financial forecasts that the entrepreneur develops later in the business​ plan? A. Revenue streams B. Key resources C. Key partners D. Customer relationships E. Value proposition

A. Revenue streams

Education is an important part of the entrepreneurial process.​ _____ percent of employed adults who want to start their own businesses say that not knowing where to start the process is a major barrier to achieving their entrepreneurial dreams. A. 54 B. 34 C. 64 D. 44 E. 74

B. 34

​_______ percent of entrepreneurs say that they have gone without a paycheck to help their businesses to survive. A. 24 B. 54 C. 36 D. 67 E. 47

B. 54

Finding qualified workers is a challenge for small business owners. What percentage of small business owners admit to hiring a candidate who is not as qualified as he or she should be because they are desperate to fill a​ position? A. 76 percent B. 56 percent C. 36 percent D. 46 percent E. 66 percent

B. 56 percent 56 percent of small business owners admit to hiring a candidate who is not as qualified as he or she should be because they are desperate to fill a position. The result is almost always an expensive hiring mistake for the company.

​________ percent of business owners say that they do not plan to retire from their businesses unless they are forced to for health reasons. A. 40 B. 60 C. 80 D. 20

B. 60

A​ ____________ is the value proposition that sets a small business apart from its competitors and gives it a unique position in the market that is superior to its rivals. A. mission B. competitive advantage C. strength D. vision E. core competency

B. competitive advantage

According to economist Joseph​ Schumpeter: A. high levels of entrepreneurial activity in an economy diminish its strength and flexibility because of the high failure rate associated with entrepreneurship. B. entrepreneurs are more than just business​ creators; they are change agents in society. C. the process of creative destruction for which entrepreneurs are responsible has a negative impact on a​ nation's economy. D. entrepreneurs have a negative impact on society and a​ nation's economy. E. because​ entrepreneurs' failure rate is so​ high, society should discourage entrepreneurship.

B. entrepreneurs are more than just business​ creators; they are change agents in society.

What happens to buyer power when the number of buyers in the industry is large? ANSWER Buyer power is high. Buyer power is low. Buyer power increases. Buyer power is unaffected.

Buyer power is low.

About​ ____ percent of​ first-generation businesses survive into the second generation. A. 70 B. 10 C. 30 D. 90 E. 50

C. 30 Only about 30 percent of​ first-generation businesses survive into the second​ generation; 12 percent make it to the third​ generation, and 3 percent make it to the fourth generation and beyond.

What percentage of business owners have created management succession​ plans? A. 27 percent B. 37 percent C. 57 percent D. 67 percent E. 47 percent

C. 57 percent

Experts estimate that entrepreneurs lose about​ ____ hours of sleep in the year they launch their​ businesses, about the same amount of sleep that a parent loses in the first year of a​ baby's life. A. 200 hours B. 400 hours C. 700 hours D. 300 hours E. 500 hours

C. 700 hours Entrepreneurs lose about 700 hours of sleep in the year they launch their​ businesses, about the same amount of sleep that a parent loses in the first year of a​ baby's life

More than​ ____ percent of the​ world's billionaires made their fortunes by disrupting highly competitive markets with established​ players, such as consumer​ products, retail,​ technology, and business services. A. 50 B. 60 C. 80 D. 20 E. 40

C. 80 More than 80 percent of the​ world's billionaires made their fortunes by disrupting highly competitive markets with established​ players, such as consumer​ products, retail,​ technology, and business services.

What percentage of companies use social media to recruit new​ employees? A. 24 percent B. 54 percent C. 84 percent D. 44 percent E. 64 percent

C. 84 percent

When a leader sets a​ tangible, challenging, and highly focused​ long-term goal that is linked to the​ company's core values and that people can understand immediately with little or no​ explanation, he or she has created​ a(n): A. Level 5 leadership challenge B. economic engine C. BHAG D. hedgehog E. ​20-mile march

C. BHAG

Retail giant​ Walmart's ability to negotiate price concessions from its vendors and suppliers illustrates which of the forces in​ Porter's Five Forces​ model? A. Threat of substitute products and services B. Threat of new entrants C. Bargaining power of buyers D. Bargaining power of suppliers E. Rivalry among companies competing in the industry

C. Bargaining power of buyers

Which of the following components of the Really Big Idea Sketch Pad addresses the unique features of a​ start-up company's product or service that will differentiate it from those of​ competitors? A. Customers B. Value proposition C. Core competencies D. People E. Offering

C. Core competencies

​_________ is the ability to apply creative solutions to problems and opportunities to enhance or enrich​ people's lives. A. Entrepreneurship B. Intrapreneurship C. Innovation D. Creativity E. Divergent thinking

C. Innovation Correct. Innovation is the ability to apply creative solutions to problems and opportunities to enhance or enrich​ people's lives.

Which job design strategy involves building motivators into a job by increasing the​ planning, decision-making,​ organizing, and controlling functions that workers​ perform? A. Job rotation B. Job enlargement C. Job enrichment D. Job simplification E. Flextime

C. Job enrichment

Which of the following is not a suggestion for enhancing organizational​ creativity? A. Include creativity as a core company value. B. Expect failure and learn from it. C. Limit the diversity of the​ company's workforce. D. Expect employees to be creative. E. Incorporate fun into the workplace.

C. Limit the diversity of the​ company's workforce.

The most common social media tool that employers use to recruit employees​ is: A. Facebook B. Snapchat C. LinkedIn D. Twitter E. Instagram

C. LinkedIn

Which of the following is not part of the brainstorming​ process? A. Use a​ U-shaped, circular, or similar type of seating pattern that encourages participation and interaction among participants. B. Provide the group with a​ well-defined problem. C. Make sure that the group is​ large, preferably no fewer than 25 people. D. Limit the brainstorming session to 40 to 60 minutes. E. Make the group as diverse as possible.

C. Make sure that the group is​ large, preferably no fewer than 25 people.

Which of the following is NOT a characteristic of an effective brainstorming​ session? A. Make the group of participants as diverse as possible. B. Limit the brainstorming session to 40 to 60 minutes. C. Make the group as large as possible. D. Encourage all ideas from the​ group, including those that are wild and extreme. E. Ignore company rank and department affiliation so that every member of the brainstorming team is on equal ground

C. Make the group as large as possible. Effective brainstorming groups follow the​ "two-pizza rule," which says that if a brainstorming group can eat two​ pizzas, it is too large. Next Question

Creating an​ original, functional model of a new product that entrepreneurs put into potential​ customers' hands so that they can test and use it involves which market research​ technique? A. Windshield research B. Secondary research C. Prototype D. Focus group E. ​In-home trial

C. Prototype

Which of the following factors do the CEOs of Inc. 500 companies cite as the most important contributor to their​ company's ability to​ innovate? A. Collaborating with the right business partners B. Investing in research C. Recruiting great talent D. Creating an environment in which failure is acceptable E. Developing new business processes

C. Recruiting great talent

Which type of corporation is taxed like a​ partnership? A. C B. Closely held C. S D. General E. Publicly held

C. S

Which of the following statements about a business plan is​ false? A. A business plan should include a table of contents with page numbers so that readers can navigate it with ease. B. An ideal business plan is​ "crisp," long enough to say what it should but not so long that it is a chore to read. C. The appearance and the presentation of the plan really do not matter as long as its content is suitable. D. A good business plan tells an interesting story in addition to providing details about the business opportunity and how an entrepreneur intends to capitalize on it. E. A business plan should include cash flow projections because lenders and investors know that to​ succeed, a company must have adequate cash flow.

C. The appearance and the presentation of the plan really do not matter as long as its content is suitable.

Which of the following is not an​ "enabler" of small business​ innovation? A. ​Entrepreneurs' willingness to experiment and improvise and to tolerate failures along the way. B. ​Entrepreneurs' close connection to their​ customers, which provides them with meaningful feedback and ideas for products and services. C. The bountiful resources entrepreneurs have that fuel their ability to create innovations and new products and services. D. ​Entrepreneurs' passion for the ideas on which they base their businesses. E. ​Entrepreneurs' ability to adapt and adjust to changing customer demands and market conditions.

C. The bountiful resources entrepreneurs have that fuel their ability to create innovations and new products and services.

Which of the following statements about family businesses is false​? A. ​Family-owned businesses account for 62 percent of total private sector employment. B. About 33 percent of Fortune 500 companies are family businesses. C. The lifespan of the typical​ family-owned business is 10 years. D. About 90 percent of the businesses in the United States are family owned and managed. E. Only 30 percent of family businesses survive to the second generation of family ownership.

C. The lifespan of the typical​ family-owned business is 10 years.

Which of the following factors makes an industry more​ attractive? A. Quality substitute products are readily available. B. Competitors are of similar size and capability. C. The opportunity to sell a differentiated product exists. D. The prices of substitute products are significantly lower than those of the​ industry's products. E. The items that companies sell account for a large portion of the cost of their​ customers' finished products.

C. The opportunity to sell a differentiated product exists.

The​ __________ portion of the business model canvas identifies how a company intends to promote itself to potential​ customers, communicate with customers who purchase its products or​ services, and how it plans to distribute its products or services to customers. A. key resources B. customer relationships C. channels D. revenue streams E. key activities

C. channels

When creating a workspace that encourages​ creativity, entrepreneurs should NOT​: A. add splashes of color B. incorporate live plants C. create offices so that employees can work in isolation and concentrate on the tasks they must perform D. include funny​ posters, photographs, and murals E. cover bland walls with artwork

C. create offices so that employees can work in isolation and concentrate on the tasks they must perform To enhance​ creativity, a workspace must foster employee​ interaction, especially informal interaction. A space in which employees work in isolation does nothing to encourage creativity. Next Question

Leona operates The Honest Bakery in an urban area where she sells a variety of​ fresh-baked products, including homemade​ breads, muffins,​ rolls, doughnuts,​ croissants, and other delectable items. Leona makes her baked items from​ all-natural ingredients, and she sells a line of​ gluten-free products. Several blocks away is another​ bakery, The Bake​ Shop, that sells most of the same products that Leona sells but does not carry any​ gluten-free products. To​ Leona, The Bake Shop is a​ ____________ competitor. A. moderate B. miniscule C. direct D. indirect E. significant

C. direct

Time out of cash refers​ to: A. the rate of return on investment that an entrepreneur expects the business to generate. B. how long it will take the business to repay the cash it borrows from banks and other lenders. C. how long a business can survive until it runs out of cash. Your answer is correct. D. the amount of capital an entrepreneur needs to start the business. E. the estimated earnings an entrepreneur expects the business to generate.

C. how long a business can survive until it runs out of cash. Your answer is correct.

The most popular form of ownership​ (percentage of​ businesses) in the United States is​ the: A. partnership B. limited liability company C. sole proprietorship D. limited partnership E. ​S-corporation

C. sole proprietorship

Small businesses make up nearly​ _____ percent of all businesses that export and account for​ _____ percent of U.S. export sales. A. ​50; 50 B. ​14; 91 C. ​98; 34 D. ​76; 50 E. ​24; 74

C. ​98; 34

A limited liability​ company's ________ is similar to a​ corporation's bylaws and outlines the way the LLC will conduct business. A. articles of organization B. charter C. founding contract D. operating agreement E. ​founder's agreement

D. operating agreement

____ percent of hiring professionals have detected false information or exaggerations on​ candidates' resumes. A. 57 B. 67 C. 27 D. 37 E. 77

E. 77

​Family-owned businesses make up​ ___ percent of all businesses in the United States. A. 60 B. 70 C. 50 D. 40 E. 90

E. 90

How is a sole proprietorship​ taxed? A. A sole proprietorship is taxed at the same rate at which corporations are taxed. B. A sole proprietorship is taxed at a rate that is​ one-half of the rate at which partnerships are taxed. C. A sole proprietorship is taxed at a special sole proprietorship rate. D. Most sole proprietorships are so small that they pay no taxes. E. A sole proprietor reports the income from his or her sole proprietorship on his or her personal income tax​ return, and the amount is taxed at the​ entrepreneur's personal tax rate.

E. A sole proprietor reports the income from his or her sole proprietorship on his or her personal income tax​ return, and the amount is taxed at the​ entrepreneur's personal tax rate.

​________ is a job design strategy that involves cross training employees so that they can move from one job in a company to​ another, giving them a greater number and variety of tasks to perform. A. Job enlargement B. Flextime C. Job enrichment D. Job simplification E. Job rotation

E. Job rotation Job rotation is a job design strategy that involves​ cross-training employees so that they can move from one job in the company to​ another, giving them a greater number and variety of tasks to perform.

_____ thinking can restrict creativity. ANSWER Logical Irrational Disorderly Illogical

Logical Logic often works against intuition and intuition is a necessary part of creativity. previous

Economies of scale is relevant to which of the five forces? ANSWER Threat of new entrants to the industry Threat of substitute products or services Bargaining power of buyers Bargaining power of suppliers to the industry

Threat of new entrants to the industry

Which of the following is not a dependent demand item? a. Retail goods at a department store b. Raw materials at a manufacturer c. Service parts at an auto repair shop d. Hamburger buns at McDonalds

a. Retail goods at a department store

Forming an LLC requires the entrepreneur to create two documents:the ______ and the operating agreement. ANSWER articles of profit sharing partner profit sharing agreement articles of organization partnership agreement

articles of organization

In a ____ partnership, all partners are limited partners. ANSWER silent general limited liability dormant

limited liability

Entrepreneurs systematically remove as many _____ to the successful launch of their ventures as possible. ANSWER obstacles goals enablers people

obstacles

An S corporation cannot have more than ___ shareholders. ANSWER 3 10 5 100

100

Which of the following is NOT a reason why home-based businesses are booming? ANSWER Home-based businesses allow owners to maintain flexible life and work styles. Operating a business from home keeps start-up and operating costs to a minimum. Technology allows entrepreneurs to run a wide variety of businesses from their homes. A home-based business can easily attract funding.

A home-based business can easily attract funding

Which of the following is a TRUE statement? ANSWER An export-based economy favors small businesses. An import-based economy favors small businesses. A production-based economy favors small businesses. A knowledge-based economy favors small businesses.

A knowledge-based economy favors small businesses

Which form of ownership accounts for the greatest percentage of sales revenue and profits in the United​ States? A. C corporation B. Sole proprietorship C. Limited partnership D. Limited liability company E. Partnership

A. C Corportation Although C corporations make up only 5 percent of all​ businesses, they account for about 62 percent of all business sales and more than 43 percent of all business profits.

The total cost of making a bad hire is​ ____ times the​ employee's salary. A. 2 to 3 B. 8 C. 1.5 to 2 D. 3 to 4 E. 4 to 5

A. 2 to 3

Nearly half of all entrepreneurs globally are between the ages​ of: A. 25 to 44 B. 45 to 54 C. 55 and 64 D. 18 to 25 E. older than 65

A. 25 to 44 Nearly half of all entrepreneurs globally are between the ages of 25 and 44.

Two years after​ startup, approximately​ ____ percent of small businesses will have failed. A. 34 B. 6 C. 18 D. 42 E. 24

A. 34 Two years after​ startup, approximately 34 percent of small businesses will have failed.

Many employers review job​ candidates' social networking sites. What percentage of employers say that they have discovered items there that caused them to reject a​ candidate? A. 49 percent B. 39 percent C. 29 percent D. 59 percent E. 19 percent

A. 49 percent

What percentage of small businesses have Web​ sites? A. 54 B. 75 C. 45 D. 90 E. 30

A. 54

​____ percent of employers who conduct background checks have discovered problems with candidates that they would not have been able to detect otherwise. A. 84 B. 64 C. 54 D. 44 E. 34

A. 84 84 percent of employers who conduct background checks have discovered problems with candidates that they would not have been able to detect otherwise.

Laura, who is considering launching a new fitness​ center, gathers a group of 10 potential customers to provide feedback about the services she plans to​ offer, the clothing lines she plans to​ sell, and the nutritional products she plans to offer. Which research technique is Laura​ using? A. Focus group B. Windshield research C. Prototype D. Secondary research E. ​In-home trial

A. Focus group

Which type of physical layout encourages creativity in an​ organization? A. One that encourages interaction among employees and includes features such as splashes of​ color, live​ plants, and artwork. B. One that is relatively bland with neutral colors and minimal​ décor to avoid interfering with​ employees' ability to concentrate on being creative. C. One that features minimal​ light, soft​ music, and dark colors to allow employees to focus on the task of creativity. D. One in which employees work alone in their own offices so that they can concentrate on developing new ideas. E. One that features all of the latest​ technology, which is the principal driver of employee creativity

A. One that encourages interaction among employees and includes features such as splashes of​ color, live​ plants, and artwork.

Question Help The average student who has completed four years of college has taken more than​ 2,600 tests. Educational systems contribute to which of the following of the 10 mental locks to​ creativity? A. Searching for the one​ "right" answer B. Focusing on​ "being logical" C. Avoiding ambiguity D. Viewing play as frivolous E. Constantly being practical

A. Searching for the one​ "right" answer

Which of the following statements about partnerships is false​? A. The Uniform Partnership Act requires every partnership to file a partnership agreement with the appropriate state​ office, usually the Secretary of State. B. In a​ partnership, a general partner has unlimited liability for the​ partnership's debts and usually take an active role in managing the business. C. A limited partnership is composed of at least one general partner and at least one limited partner. D. If the partners in a partnership fail to create a partnership​ agreement, the Revised Uniform Partnership Act states that the partners share equally in the​ partnership's profits, even if their capital contributions were unequal. E. The three key elements of a partnership are common ownership interest in the​ business, agreement on how the​ business's profits and losses will be​ shared, and the right to participate in managing the operation of the partnership

A. The Uniform Partnership Act requires every partnership to file a partnership agreement with the appropriate state​ office, usually the Secretary of State.

Which of the following statements about writing a mission statement is false​? A. The best way to create a mission statement is for the entrepreneur to delegate the task to a team of employees. B. The best mission statements do not include fancy​ jargon; instead, they use​ simple, meaningful words. C. Once you create a mission statement for your​ company, use it. D. The best mission statements are relatively​ short, which allows people to remember them more easily. E. Keep the tone of the mission statement positive and upbeat.

A. The best way to create a mission statement is for the entrepreneur to delegate the task to a team of employees

What is the maximum number of partners in a​ partnership? A. There is no limit on the number of partners in a partnership. B. 10 C. 25 D. 75 E. 125

A. There is no limit on the number of partners in a partnership

E-mail has given companies and individuals the ability to send documents as attachments instantly to recipients around the world rather than sending them through a package delivery services such as​ FedEx, UPS,​ DHL, and others. For these package delivery​ services, e-mail represents which of the following forces in​ Porter's Five Forces​ Model? A. Threat of substitute products and services B. Rivalry among companies competing in the industry C. Threat of new entrants D. Bargaining power of buyers E. Bargaining power of suppliers

A. Threat of substitute products and services

Question Help Justin wants to open a restaurant that serves the best hot dogs in town. He decides to name his business​ "Award Wieners." Which type of intellectual property protection should Justin use to protect his​ company's unique​ name? A. Trademark B. Patent C. Copyright D. Service mark E. Injunction

A. Trademark

According to the Global Entrepreneurship Development Index​ (GEDI), an index that ranks the quality of the entrepreneurial environment using a variety of​ factors, which country provides the highest quality entrepreneurial​ environment? A. United States B. Denmark C. United Kingdom D. Madagascar E. Switzerland

A. United States

Workers who are hired as a result of employee​ referrals: A. are a better fit with a​ company's culture and values. B. cost less to hire than employees from other sources. C. have higher retention rates than those hired through job Web sites and job boards. D. are the source of only 7 percent of applicants but account for 40 percent of those hired. E. All of these are correct.

A. are a better fit with a​ company's culture and values. B. cost less to hire than employees from other sources. C. have higher retention rates than those hired through job Web sites and job boards. D. are the source of only 7 percent of applicants but account for 40 percent of those hired.

The primary motivating force for entrepreneurs​ is: A. autonomy B. variety C. altruism D. power and influence E. financial gain

A. autonomy Research by the Harvard Business School shows that the primary motivator for entrepreneurs of both genders and across the age spectrum is autonomy dash- the desire to​ "be their own​ bosses."

The most common exaggeration employers find on job​ candidates' résumés​ is: A. embellished skills B. embellished job duties C. academic degrees D. job titles E. dates of employment

A. embellished skills The most common exaggeration employers find on job​ candidates' résumés is embellished skills.

In a​ partnership, a​ __________ partner has unlimited liability for the debts of the business and usually takes an active role in managing the business. A. general B. transient C. dormant D. silent E. limited

A. general

A small​ company's "hedgehog" A. is the intersection of its​ passion, its distinctive​ competence, and its economic engine​ (what it can make money at​ doing). B. is a specific performance goal it must hit​ year-in and​ year-out to be successful. C. involves making the best of the​ luck, both good and​ bad, that a company encounters along its journey. D. involves defining the​ company's "BHAG," its​ "big, hairy, audacious​ goal." E. involves​ "shooting bullets" in​ low-cost tests to figure out what works before unleashing the full power of the​ organization's resources on an initiative​ ("firing a​ cannonball").

A. is the intersection of its​ passion, its distinctive​ competence, and its economic engine​ (what it can make money at​ doing).

In their roles as leaders of​ companies, today's successful entrepreneurs are most like​ the: A. leader of a jazz band. B. pilot of an airplane. C. conductor of an orchestra. D. engineer of a train. E. director of a play.

A. leader of a jazz band.

In a​ partnership, a​ __________ partner is treated as an investor in the​ business, has limited liability for the​ business's debts, and cannot take an active role in managing the business. A. limited B. dormant C. transient D. silent E. general

A. limited

In​ a(n) ________​ interview, interviewers ask candidates offbeat​ questions, such​ as, "How many golf balls will fit inside a school​ bus?" in an attempt to discern a​ candidate's creativity and capacity for abstract thinking. A. puzzle interview B. structured C. panel interview D. offsite interview E. unstructured

A. puzzle interview In a puzzle​ interview, interviewers ask candidates offbeat​ questions, such​ as, "How many golf balls will fit inside a school​ bus?" in an attempt to discern a​ candidate's creativity and capacity for abstract thinking. Next Question

Small businesses produce​ ____ as many patents per employee as large companies. A. sixteen times B. ​one-fourth C. ​one-half D. six times E. ten times

A. sixteen times

In the United​ States, small businesses make up​ ____ percent of all businesses engaged in​ exporting, and they account for​ ____ percent of U.S. export sales. A. ​98; 34 B. ​39; 84 C. ​18; 27 D. ​75; 12 E. ​50; 50

A. ​98; 34 In the United​ States, small businesses make up 98 percent of all businesses engaged in​ exporting, and they account for 34 percent of U.S. export sales.

​Top-performing companies in innovation generate on average​ ____ percentage points more profit on new products and services than their less innovative peers. A. 13 B. 10 C. 5 D. 7 E. 2

A.13

Which of the following statements about business plans is false​? A. One important function of a business plan is to attract lenders and investors by showing how the company will provide a high probability of repaying loans or producing an attractive rate of return. B. A collection of figures scribbled on a notepad that show potential lenders or investors a​ company's most likely financial performance is sufficient in the search for capital. C. A business plan is written proof that an entrepreneur has performed the necessary​ research, has studied the business opportunity​ adequately, and is prepared to capitalize on it with a sound business model. D. A business plan is a written summary of an​ entrepreneur's proposed​ venture, its operational and financial​ details, its marketing opportunities and​ strategy, and its​ managers' skills and abilities. E. All of these statements are false

B. A collection of figures scribbled on a notepad that show potential lenders or investors a​ company's most likely financial performance is sufficient in the search for capital.

Which of the following is not a characteristic of a​ "results-only work​ environment" (ROWE)? A. Objective conversations B. A focus on schedules and time off C. A culture of opportunity D. ​Team/organization focus E. Accountability first

B. A focus on schedules and time off

Which of the following statements about an S corporation is false​? A. An S corporation can have no more than 100 shareholders. B. An S corporation pays taxes at a special S corporation tax rate. C. An S corporation must be a domestic corporation. D. An S corporation provides its owners with limited personal liability for the​ business's debts. E. An S corporation is no different from any other corporation in terms of its legal characteristics.

B. An S corporation pays taxes at a special S corporation tax rate. An S corporation does not pay taxes according to the corporate tax rate​ schedule; instead, its income is passed through to its​ owners, who pay taxes on their shares if they net income according to the personal income tax rate schedule. Next Question

Which​ creativity-enhancing technique reflects the nonlinear way in which the​ brain, which jumps from one idea to​ another, actually works and uses a graphical method to display visually the various relationships among the ideas​ generated? A. Rapid prototyping B. Brainstorming C. ​Mind-mapping D. TRIZ E. ​Force-field analysis

B. Brainstorming Mind-mapping is a​ creativity-enhancing technique that reflects the nonlinear way in which the​ brain, which jumps from one idea to​ another, actually works and uses a graphical method to display visually the various relationships among the ideas generated

Which part of the new business planning process is a visual process that examines how all of the​ "moving parts" of a business must work together to build a successful business​ venture? A. Idea assessment B. Business model C. Five forces assessment D. Feasibility analysis E. Strategic plan

B. Business model

If an entrepreneur intends to make an initial public offering at some point in the future to raise money to fuel the growth of her​ company, which form of ownership should she​ use? A. Limited liability company B. C corporation C. S corporation D. Limited partnership E. Sole proprietorship

B. C corporation

​________, one of the​ "five Cs of​ credit," is a synonym for cash flow. A. Collateral B. Capacity C. Capital D. Character E. Conditions

B. Capacity

Which of the following factors makes an industry more ​attractive? A. Few suppliers serve the industry. B. Competitors in an industry come in a variety of​ sizes, from small to large. C. Quality substitute products for companies selling in the industry are readily available to customers. D. Customers to whom companies sell have easy access to information on​ companies' costs,​ prices, and product features. E. There is no opportunity to sell a differentiated product or service present.

B. Competitors in an industry come in a variety of​ sizes, from small to large.

Entrepreneurs in the restaurant industry periodically face rapidly rising prices for some of the ingredients in the dishes they serve.​ Recently, for​ instance, the prices of avocadoes doubled in just one​ year, reaching the highest point in 19​ years, causing heartburn for many restauranteurs. This incident is an example of which macro environment​ force? A. Political and legal B. Economic C. Demographic D. Sociocultural E. Technological

B. Economic Most​ businesses' financial fortunes are tied to the performance of the overall economy. If prices rise on certain​ products, this will affect some entrepreneurs.

Which exit strategy involves an arrangement in which the employees​ and/or managers of a company contribute a portion of their salaries and wages over time toward purchasing shares of a​ company's stock from the founder until they own the company​ outright? A. Straight sale B. Employee stock ownership plan C. Estate freeze D. ​Buy-sell agreement E. Leveraged buyout

B. Employee stock ownership plan An employee stock ownership plan is an arrangement in which the employees​ and/or managers of a company contribute a portion of their salaries and wages over time toward purchasing shares of a​ company's stock from the founder until they own the company outright.

Which stage of the creative process requires a person to develop a solid understanding of the​ problem, situation, or decision at hand and involves making careful observations of the world and how things​ work? A. Illumination B. Investigation C. Preparation D. Incubation E. Transformatio

B. Investigation

__________ are the criteria that determine a​ company's ability to compete successfully in an industry. A. Weaknesses B. Key success factors C. Strengths D. Opportunities E. Threats

B. Key success factors

Enrique has built a prototype of a new product that he created and put it into the hands of several potential​ customers, who have agreed to use it and provide him with feedback. What type of market research is Enrique​ using? A. Secondary B. Primary C. Principal D. Subliminal E. Symbiotic

B. Primary

A few weeks​ ago, Alexandro came up with the idea for a new product. He immediately went to work building several sample products so that he could get them into the hands of potential customers and get feedback from them. So​ far, user feedback has been​ positive, and several people have offered Alexandro suggestions for improving on his product idea. Which research technique is Alexandro​ using? A. Secondary research B. Prototype C. Focus group D. ​In-home trial E. Windshield research

B. Prototype

​___________ research involves collecting data that has already been compiled and is​ available, often at a reasonable​ cost, or sometimes even free. A. Primary B. Secondary C. Abated D. Tertiary E. Symbiotic

B. Secondary

The influx of women into the U.S. workforce in the 1970s and 1980s and the sweeping changes that this event created in both society and the economy is an example of which macro​ force? A. Political and legal B. Sociocultural C. Demographic D. Technological E. Economic

B. Sociocultural

Which of the following is the greatest disadvantage of the sole​ proprietorship? A. The tax treatment of the net income from a sole proprietorship. B. The unlimited personal liability that the sole proprietor has for the​ business's debts. C. The cost associated with forming a sole proprietorship. D. The limited access to capital that this form of ownership provides. E. The feeling of isolation the owner experiences as the sole owner of the business

B. The unlimited personal liability that the sole proprietor has for the​ business's debts.

Scott Frank is passionate about using technology to drive positive environmental and social changes. Working with Catlin​ Powers, he​ co-founded One Earth​ Designs, a company that sells a​ solar-powered cooker that also produces heat and electricity and can purify water to organizations that serve villages in rural western China. The​ company's goal is to provide clean energy and to eliminate the​ 500,000 deaths that occur each year in rural China from indoor air pollution and carbon monoxide poisoning. What is the primary source of One Earth​ Designs' competitive​ advantage? A. The profits the company earns. B. The values to which its founders and employees are committed. C. The prices it offers. D. The customer service the company offers. E. The way in which the company sells its products and services.

B. The values to which its founders and employees are committed.

​A(n) ________________ is the process of determining whether an​ entrepreneur's idea is a viable foundation for creating a successful business. A. strategic plan B. feasibility analysis C. five forces assessment D. idea assessment E. business model

B. feasibility analysis

The ability to apply creative solutions to problems and opportunities to enhance or enrich​ people's lives​ is: A. entrepreneurship B. innovation C. creativity D. intrapreneurship E. divergent thinking

B. innovation

The owners of a limited liability company are​ called: A. investors B. members C. stockholders D. limited partners E. partners

B. members

Social​ entrepreneurs: A. create only​ non-profit companies because they do not believe that​ profit-seeking businesses serve the interests of society as a whole. B. use their entrepreneurial skills not only to create profitable business ventures but also to achieve social and environmental goals for society as a whole. C. focus more of an abnormally large percentage of their time promoting their businesses on social media. D. are entrepreneurs who build their businesses around social media applications. E. give away all of the profits that their businesses earn in the interest of income equality.

B. use their entrepreneurial skills not only to create profitable business ventures but also to achieve social and environmental goals for society as a whole.

​____ percent of the nearly 29 million businesses in the United States are considered​ "small." A. ​50.0% B. ​99.7% C. ​75.4% D. ​66.3% E. ​87.5%

B. ​99.7%

Andy is the owner of a successful bakery with four locations in a major metropolitan area. His company employs 48 people. Every​ quarter, Andy shares his​ company's financial statements with all of his employees and has invested time and money training employees to understand how their jobs affect the​ company's financial results. Andy is​ practicing: A. job enlargement B. ​open-book management C. job sharing D. job enrichment E. stock options

B. ​open-book management

A S corporation retains the legal characteristics of a_______ but has the advantage of being taxed as a partnership if it meets certain criteria. ANSWER LLP proprietorship C corporation non-profit

C corporation

Lana recently launched a company as a sole proprietorship. What is the greatest threat of this form of ownership to​ Lana? A. The tax treatment of the net income from a sole proprietorship. B. The feeling of isolation she experiences as the sole owner of the business. C. The unlimited personal liability that Lana has for the​ business's debts. D. The cost associated with forming a sole proprietorship. E. The limited access to capital that this form of ownership provides

C. The unlimited personal liability that Lana has for the​ business's debts. As a sole​ proprietor, Lana is personally liable for all of the​ business's debts, which puts her personal assets at risk​ if, for some​ reason, the business cannot pay its debts.

Which part of the Really Big Idea Sketch Pad involves explaining why an​ entrepreneur's product or service will matter to customers and the benefit that it will provide​ them? A. Customers B. People C. Value proposition D. Core competencies E. Offering

C. Value proposition

A business owner asks a team of employees to work with her to develop a new product and encourages team members to consider what type of product Wile E. Coyote​ (who is always in pursuit of the​ Roadrunner), Kramer from Seinfeld​, or Uncle Si on Duck Dynasty might suggest is trying to avoid which of the 10 mental locks to​ creativity? A. Becoming overly specialized B. Avoiding ambiguity C. Viewing play as frivolous D. Believing that​ "I'm not​ creative" E. Searching for the one​ "right" answer

C. Viewing play as frivolous

Which product category is most affected by counterfeit​ goods? A. Handbags and wallets B. Consumer electronics C. Wearing apparel and accessories D. Watches and jewelry E. Pharmaceuticals and personal care items

C. Wearing apparel and accessories

Which of the following statements concerning a business plan presentation is false​? A. A business plan presentation should demonstrate a​ company's competitive​ edge; the combination of factors that set it apart from the competition. B. A business plan presentation should include an explanation of the​ company's business model dash- how it intends to satisfy​ customers' needs, generate​ revenue, and make a profit. C. When making a business plan​ presentation, an entrepreneur should begin with a​ thorough, detailed, and highly technical explanation of the technology on which the product or service is based. D. A business plan presentation should include an explanation of the​ customers' problem to be solved and how the company can solve it. E. ​Typically, the amount of time an entrepreneur has to present his or her plan is no more than a few minutes.

C. When making a business plan​ presentation, an entrepreneur should begin with a​ thorough, detailed, and highly technical explanation of the technology on which the product or service is based

Research suggests that the best leaders learn the most important lessons in clusters of experience. Which one is most​ important? A. Finding the right mentor B. Being involved early on in an​ organization's strategic planning process C. Working on challenging assignments D. Developing relationships E. Completing formal coursework and training

C. Working on challenging assignments Research suggests that the best leaders learn the most important lessons in three clusters of experience. The most important cluster is working on challenging assignments.

Finding talent is a challenge for companies of all sizes.​ ______ of small business owners say that they can find few or no qualified applicants for job openings. A. ​One-fifth B. ​One-third C. ​One-half D. ​Two-thirds E. ​One-fourth

C. ​One-half One-half of small business owners say that they can find few or no qualified applicants for job openings.

___ is an arrangement in which employees work 32 to 40 hours per week but concentrate those hours across 4 days rather than the typical 5 days. ANSWER Flextime Compressed workweeks Part-time On-demand

Compressed workweeks

Which of the following is not a characteristic of the typical​ entrepreneur? A. Future orientation B. ​Self-reliance. C. Desire for immediate feedback D. Confidence in their ability to succeed. E. Preference for taking extreme risks

Contrary to common​ belief, entrepreneurs exhibit a preference for moderate​ risk-taking. Successful entrepreneurs are risk eliminators.

About 30 percent of​ first-generation businesses survive into the second generation. Of those that do​ survive, what percentage make it to the third​ generation? A. 15 B. 19 C. 25 D. 12 E. 6

D. 12

In​ 1992, immigrants to the United States owned 9 percent of all businesses in the United​ States; today, immigrant entrepreneurs own​ ___ percent of all businesses in the United States. A. 9 B. 5 C. 24 D. 18 E. 12

D. 18 Today, immigrant entrepreneurs own 18 percent of all businesses in the United States.

Employee referrals account for about​ ____ percent of applicants that are hired. A. 45 B. 60 C. 50 D. 40 E. 25

D. 40

Without proper estate​ planning, family members that inherit a family business could face a maximum federal tax rate​ of: A. 10 percent B. 35 percent C. 15 percent D. 40 percent E. 25 percent

D. 40 percent

In the United​ States, ____ percent of workers believe that they are creative. A. 33 B. 19 C. 59 D. 73 E. 89

D. 73

Popeye, the​ spinach-munching, crusty sailor who first appeared in a comic strip in​ 1929, is famous for​ saying, "I yam what I​ yam, and​ that's all I​ yam." Which leadership characteristic does​ Popeye's expression best​ illustrate? A. Defining and constantly reinforcing the vision for the company B. Celebrating​ employees' successes C. Respecting and supporting employees D. Authenticity E. Communicating with employees

D. Authenticity

Which macro force in an industry addresses the similarities and the differences among the various generations​ (for example, Baby​ Boomers, Generation​ X, Millennials, and Generation​ Z)? A. Economic B. Political and legal C. Technological D. Demographic E. Sociocultural

D. Demographic

Changes over time in the composition and characteristics of people create both opportunities and threats for entrepreneurs. These changes are part of which macro​ force? A. Technological B. Political and legal C. Sociocultural D. Demographic E. Economic

D. Demographic Demographic changes are those that occur in the composition and characteristics of the people in a market and can create both opportunities and threats for entrepreneurs

Which exit strategy allows the employees​ and/or managers of a company to contribute a portion of their salaries and wages over time toward purchasing shares of a​ company's stock from the founder until they own the company​ outright? A. Estate freeze B. Straight sale C. Leveraged buyout D. Employee stock ownership plan E. ​Buy-sell agreement

D. Employee stock ownership plan

Which section of the business plan is a written version of the​ entrepreneur's elevator​ pitch? A. Vision statement B. Industry profile C. Marketing strategy D. Executive summary E. Mission statement

D. Executive summary

How do successful entrepreneurs view​ failure? A. Failure is permanent. B. Failure is​ inevitable, so why fight​ it? C. Successful people do not fail. D. Failure is an important part of the creative process and provides the chance to learn how to succeed. E. The goal is to avoid failure at all costs

D. Failure is an important part of the creative process and provides the chance to learn how to succeed

In a recent study by Harvard​ University, global leaders ranked which leadership trait as most important out of 74​ traits? A. Willingness to accept new ideas B. Ability to develop future leaders C. Creates a sense of teamwork among employees D. High ethical and moral standards E. Communicates effectively

D. High ethical and moral standards

Which of the following statements about innovation is true​? A. Rewarding employees for their creativity does not lead to a more creative organization. B. The physical environment in which employees work has little impact on their creativity. C. The success rate for new products and product extensions is nearly 90 percent. D. Innovations in a​ company's business​ model, customer service​ process, distribution​ system, customer value​ stream, and internal processes produce higher rates of return than do product innovations. E. Companies that incorporate fun into the workplace have lower levels of creativity than those that do not because employee productivity declines

D. Innovations in a​ company's business​ model, customer service​ process, distribution​ system, customer value​ stream, and internal processes produce higher rates of return than do product innovations.

Which job design strategy involves adding more tasks to a job to broaden its scope and allows the employee to perform a more complete unit of​ work? A. Job rotation B. Job simplification C. Flextime D. Job enlargement E. Job enrichmen

D. Job enlargement

Which part of the business model canvas identifies the​ suppliers, investors,​ lenders, advisers,​ contacts, and other external entities that are critical to make a business model​ work? A. Customer relationships B. Revenue streams C. Key resources D. Key partners E. Value proposition

D. Key partners

​_________ entrepreneurs are serial entrepreneurs who start a​ company, manage its growth until they get​ bored, and then sell it to start another one. A. Opportunity B. Parallel C. Necessity D. Leapfrogger E. Extreme

D. Leapfrogger Leapfrogger entrepreneurs are serial entrepreneurs who start a​ company, manage its growth until they get​ bored, and then sell it to start another one.

Which form of ownership is a cross between a partnership and a corporation and offers its owners limited personal liability for the debts of the​ business, but is not subject to restrictions on the number or characteristics of its​ owners? A. C corporation B. S corporation C. Sole proprietorship D. Limited liability company E. General partnership

D. Limited liability company A limited liability company is a form of ownership that is a cross between a partnership and a corporation and offers its owners limited personal liability for the debts of the business but is not subject to restrictions on the number or characteristics of its owners

Which of the following components of the Really Big Idea Sketch Pad involves identifying the key members of the team who will launch the​ business? A. Offering B. Customers C. Core competencies D. People E. Value proposition

D. People The people component of the Really Big Idea Sketch Pad involves identifying the key people on the team who will launch the business.

What type of market research involves collecting data firsthand and analyzing​ it? A. Secondary B. Subliminal C. Symbiotic D. Primary E. Principal

D. Primary

Which of the following elements is not part of​ Porter's Five Forces​ Model? A. Rivalry among companies competing in the industry B. Bargaining power of buyers C. Threat of substitute products or services D. Profit potential of the industry E. Bargaining power of suppliers to the industry

D. Profit potential of the industry

Which of the five forces in​ Porter's Five Forces Model has the greatest impact on companies competing with one another in a given​ market? A. Threat of substitute products and services B. Bargaining power of suppliers C. Bargaining power of buyers D. Rivalry among companies competing in the industry E. Threat of new entrants

D. Rivalry among companies competing in the industry

Sonya is considering launching a daycare center in her community and uses information from the U.S. Census Bureau to determine the number of children who are less than six years​ old, the number of households with children​ present, and a breakdown of the household incomes in her community as she assesses the feasibility of her business idea. What type of market research is Sonya​ using? A. Primary B. Symbiotic C. Subliminal D. Secondary E. Principal

D. Secondary

Which governing body gives corporations the right to​ exist? A. Congress B. The U.S. Supreme Court C. The Securities and Exchange Commission D. States E. The Federal government

D. States

Which of the following is NOT a component of the Really Big Idea Sketch​ Pad? A. Value proposition B. Customer C. People D. Strategy E. Product or service offering

D. Strategy Although developing a strategy is an essential part of building a successful​ business, it is not part of the Really Big Idea Sketch​ Pad, which is a useful tool for assessing business ideas.

Which form of ownership has the greatest access to​ capital? A. The S corporation B. The limited liability company C. The partnership D. The C corporation E. The sole proprietorship

D. The C corporation The C​ corporation, which is the only form of ownership under which entrepreneurs can make initial public offerings of their​ companies' stock, offers the greatest access to capital.

The best form of ownership is​ the: A. corporation B. partnership C. sole proprietorship D. There is no​ "best" form of ownership. E. limited liability company

D. There is no​ "best" form of ownership.

​Seventy-five percent of companies report that they have made a bad​ hire, a person who has a negative impact on the​ organization's productivity,​ performance, retention, or culture. What was the primary cause of the hiring​ mistake? A. A​ poorly-planned orientation process that fails to get new employees off to a good start. B. Wages or salaries that are below the market rat C. A limited pool of qualified candidates. D. The​ company's selection and hiring process. E. Job candidates who submit fraudulent credentials and réésuméés.

D. The​ company's selection and hiring process.

Which of the following components of the Really Big Idea Sketch Pad involves explaining why a proposed product or service is valuable to customers and how it addressees an unmet​ need? A. Offering B. Core competencies C. Customers D. Value proposition E. People

D. Value proposition

Which of the following statements about​ women-owned businesses in the United States is false​? A. ​Women-owned businesses generate sales of nearly​ $1.6 trillion annually. B. Women own 11.3 million businesses in the United States. C. ​Women-owned businesses employ more than 9 million workers. D. Women own about 15 percent of all businesses in the United States. E. The number of​ women-owned companies is growing 1.5 times faster than the national average for all businesses

D. Women own about 15 percent of all businesses in the United States.

The​ _______ element of a financial feasibility analysis involves estimating the amount of​ start-up investment an entrepreneur needs to launch the business. A. return on investment B. payback period C. time out of cash D. capital requirement E. estimated earnings

D. capital requirement

The​ ________ stage of the creative process is when a person allows his or her subconscious to reflect on the information that he or she has​ collected, often while away from the problem and engaging in some other activity. A. transformation B. investigation C. illumination D. incubation E. preparation

D. incubation Correct. During the incubation stage of the creative​ process, a person reflects on the information​ collected, often while away from the situation.

The document that contains the​ duties, responsibilities, reporting​ relationships, working​ conditions, and methods and​ techniques, as well as materials and equipment used to perform a job is​ the: A. screening statement B. feasibility study C. job specification D. job description E. job analysis E. job analysis

D. job description

A corporation that has a large number of shareholders and whose stock is traded on one of the large stock exchanges is a​ (n) _____________ corporation. A. limited liability B. collective C. closely held D. publicly held E. S

D. publicly held A corporation that has a large number of shareholders and whose stock is traded on one of the large stock exchanges is a publicly held corporation.

Servant​ leaders: A. are poor leaders because they are not​ results-oriented. B. are famous for embarking on quests for personal power. C. have proved to be ineffective leaders of organizations. D. put their employees and their​ employees' needs ahead of their own. E. are more concerned about enhancing their power bases than empowering people in the organization.

D. put their employees and their​ employees' needs ahead of their own.

The CEOs of the 500​ fastest-growing private companies in the United States say that the main contributor to their​ companies' ability to innovate​ is: A. creating an environment in which failure is acceptable. B. establishing a physical layout that encourages employees to interact with one another. C. asking customers for feedback on the problems they face. D. recruiting talented workers. E. developing a system of financial rewards to encourage employee creativity.

D. recruiting talented workers.

Question Help A​ well-developed succession plan in a family business is​ like: A. a couple gracefully dancing a waltz. B. a wrestling match. C. a gardener pruning the limbs of a treasured apple tree so that it will bear more fruit. D. the​ smooth, graceful exchange of a baton between runners in a relay race. E. a family vacation at the beach

D. the​ smooth, graceful exchange of a baton between runners in a relay race

More than​ ____ percent of Web searches are conducted on mobile​ devices, but​ ____ percent of small business Web sites are not​ mobile-friendly. A. ​95; 15 B. ​20; 20 C. ​74; 16 D. ​50; 32 E. ​85; 45

D. ​50; 32

To The average student who has completed four years of college has taken an average of​ 2,600 tests. To which​ "mental lock" does standard​ test-taking contribute? A. Viewing play as frivolous B. Focusing on​ "being logical" C. Avoiding ambiguity D. Searching for the one​ "right" answer E. Constantly being practical

D. Searching for the one "right" answer Correct. The average student who completes four years of college has taken more than​ 2,600 tests and has been trained to look for the​ "right answer," which can limit creativity

Minority entrepreneurs own​ _____ percent of all businesses in the United States. A. 11.5 B. 16.5 C. 5.5 D. 30.5 E. 29.0

E. 29.0

​________ percent of small business owners work more than 40 hours per week. A. 91 B. 56 C. 28 D. 15 E. 72

E. 72

Internships offer an excellent opportunity for companies to audition prospective employees and for students to determine whether they would enjoy working for a particular company. Employers offer​ full-time jobs to​ ____ percent of their student interns. A. 35.7 B. 56.7 C. 27.7 D. 44.7 E. 72.7

E. 72.7

Generally, an industry is more attractive​ when: A. the number of competitors is​ large, or, at the other​ extreme, quite small. B. the industry is growing at a rapid rate. C. the opportunity to sell a differentiated product or service exists. D. competitors in the industry are not similar in size or capability. E. All of these are correct.

E. All of these are correct.

People who never​ "color outside the​ lines" succumb to which of the following ten mental locks to​ creativity? A. Searching for the one​ "right" answer B. Becoming overly specialized C. Viewing play as frivolous D. Avoiding ambiguity E. Blindly following the rules

E. Blindly following the rules

Which form of ownership suffers from the disadvantage of double​ taxation? A. Limited liability company B. Partnership C. S corporation D. Sole proprietorship E. C corporation

E. C corporation

Which of the following is not a suggestion for conducting an effective job​ interview? A. Arrange a​ "non-interview" setting, such as​ lunch, that allows interviewers to observe the candidate in an informal setting. B. Ask​ open-ended questions rather than questions that call for​ "yes" or​ "no" answers. C. Ask candidates to describe a recent success and a recent failure and how they dealt with them. D. Develop a series of core questions and ask them of every candidate. E. Conduct a solo interview because involving other people leads to disagreement and confusion.

E. Conduct a solo interview because involving other people leads to disagreement and confusion.

Marta, the owner of a Greek​ restaurant, writes a cookbook that includes some of her​ family's famous recipes. Which intellectual property tool can Marta use to protect her​ cookbook? A. Patent B. Injunction C. Service mark D. Trademark E. Copyright

E. Copyright Correct. A copyright is an exclusive right that protects the creators of original works of​ authorship, such as a​ cookbook, and is designated by the symbol​ ©

Which of the following statements about a business plan presentation is false​? A. Close the presentation by reinforcing the potential of the business opportunity. B. Follow up with potential lenders and investors after making a presentation rather than wait for them to contact you. C. Explain how the​ company's products or services serve a problem that customers face and emphasize the factors that make the company unique. D. Avoid using technical terms that are above most of the​ audience's understanding. E. Explain the business opportunity and​ company's business model in great detail at the outset.

E. Explain the business opportunity and​ company's business model in great detail at the outset.

​_______________ is the process of examining a need in the​ market, developing a solution for that​ need, and determining an​ entrepreneur's ability to successfully turn the idea into a viable business. A. Idea generation B. Business model canvassing C. Feasibility analysis D. Business model generation E. Idea assessment

E. Idea assessment Idea assessment is the process of examining a need in the​ market, developing a solution for that​ need, and determining an​ entrepreneur's ability to successfully turn the idea into a viable business.

​________ is a document that provides a written statement of the​ duties, responsibilities, reporting​ relationships, working​ conditions, and methods and techniques as well as materials and equipment used to perform a job. A. Screening statement B. Availability analysis C. Job specification D. Job analysis E. Job description

E. Job description A job description is a written statement of the​ duties, responsibilities, reporting​ relationships, working​ conditions, and methods and techniques as well as materials and equipment used to perform a job.

Which form of ownership is least popular in the United​ States? A. C corporation B. S corporation C. Limited liability company D. Sole proprietorship E. Limited partnership

E. Limited partnership

Jose invents a new​ Wi-Fi router that relies on a​ brand-new technology. Which intellectual property protection tool can Jose use to protect his​ invention? A. Injunction B. Copyright C. Trademark D. Service mark E. Patent

E. Patent Correct. A patent gives the inventor of a product the exclusive right to​ make, use, or sell the invention and to prevent others from​ making, using, or selling it in the United States for 20 years from the date of filing the patent application.

Which of the following is not a characteristic of the entrepreneurial​ profile? A. Desire for immediate feedback. B. Value achievement over money. C. Future oriented. D. Confident in their ability to succeed. E. Preference for taking high risks like a riverboat gambler

E. Preference for taking high risks like a riverboat gambler

Which stage of the creative process includes getting an​ education, acquiring work​ experience, engaging in​ on-the-job training, and similar​ activities? A. Investigation B. Illumination C. Transformation D. Incubation E. Preparation

E. Preparation

Thula is working on the marketing strategy section of the business plan for her​ start-up company. Which of the following is least likely to impress potential lenders and investors about her target​ market? A. Facts concerning the size of the​ company's target market. B. Results of market surveys. C. Demographic profiles of her​ company's target customers. D. Results from​ questionnaires, focus​ groups, and other feedback from potential customers. E. Statements such as​ "This market is so huge that if we capture just one percent of​ it, our sales will be​ $100 million."

E. Statements such as​ "This market is so huge that if we capture just one percent of​ it, our sales will be​ $100 million."

Dominique​ Ansel, owner of the Dominique Ansel Bakery in New York​ City, created a baked product that is a cross between a croissant and a doughnut for which customers wait in line to purchase. He named it the Cronut. Which intellectual property tool can Ansel use to protect the name​ "Cronut"? A. Service mark B. Injunction C. Patent D. Copyright E. Trademark

E. Trademark Correct. A trademark is any distinctive​ word, phrase,​ symbol, design,​ name, logo,​ slogan, or trade dress that a company uses to identify the origin of a product or to distinguish it from other goods on the market.

The document that contains qualifications and characteristics needed for a job stated in terms such as​ education, skills, and experience and provides a​ "success profile" of the ideal employee is​ the: A. job description B. screening statement C. feasibility study D. job analysis E. job specification

E. job specification

Teresa, owner of a​ start-up company, divides the earnings that she has forecasted for her business by the amount of capital she has invested in the business. She has calculated her​ company's: A. capital requirement B. breakeven point C. time out of cash D. payback period E. return on investment

E. return on investment

A person who believes that creativity belongs only to the​ Einsteins, Beethovens, and Da Vincis of the world has succumbed to which of the ten​ "mental locks" to​ creativity? A. Viewing play as frivolous B. Searching for the one​ "right" answer C. Avoiding ambiguity D. Becoming overly specialized E. Believing that​ "I'm not​ creative"

E. Believing that "I'm not creative" Correct. Believing that only certain people have the capacity for creativity is a symptom of believing that​ "I am not​ creative." In​ reality, everyone has creativity capacity.

Roger von Oech identified a variety of mental locks that limit individual creativity. Which of the following is NOT one of them? ANSWER Focusing on being "illogical." Constantly being practical. Searching for the one "right" answer. Blindly following the rules.

Focusing on being "illogical." Being "illogical" spurs creativity; being "logical" does not.

____ are small companies that are growing at 20 percent or more per year with at least $100,000 in annual sales. ANSWER Gazelles Tigers Unicorns Jaguars I DON'T KNOW YET

Gazelles

___ is the process of influencing and inspiring others to work to achieve a common goal and then giving them the power and the freedom to achieve it. ANSWER Organizing Leadership Directing Planning

Leadership

Amy Dash, the founder of an apparel company called Dashin' Good, puts her employees and their needs first. She believes in empowering them and not enhancing her own power. What type of leadership is Amy Dash exhibiting? ANSWER Hands-off leadership Absentee leadership Servant leadership Team-based leadership

Servant leadership

As part of the interview process for their customer service position that requires trouble shooting and dealing with irate and difficult customers, The Acme Company plays actual customer calls to interviewees and evaluates how they respond to them. What is the type of interview that The Acme Company uses called? ANSWER Job-focused interview Realistic interview Situational interview On-field interview

Situational interview

In the 1970s and 1980s, women began entering the workforce at much higher rates than had been the case previously. Which of the six foundational macro forces should we include in this trend? ANSWER Sociocultural Demographic Political and legal Economic

Sociocultural

Which best describes the concept of "creative destruction"? ANSWER Setting aside practicality to consider taking knowledge or a concept from one area and placing it in a totally different application. When people rethink conventional assumptions and discard those that are no longer useful. When you consider at least two different, often contradictory, notions at the same time. A type of thinking that destroys creativity because it is narrowly focuses and limited by the status quo

When people rethink conventional assumptions and discard those that are no longer useful.

Job ______ is the process by which a firm determines the duties and nature of the jobs to be filled, along with the skills and experience required of the people who are to fill them. ANSWER analysis description enrichment specification

analysis

1) Unlimited personal liability is when the owner is personally liable for all of the business's debts. Hence, the owner is the business. The owner owns all of the business's assets, and if the business fails, creditors can force the sale of these assets to cover its debs. If unpaid business debts remain, creditors can also force the sale of the owner's personal assets to cover its debts. In short, the company's debts are the owner's debt. Unlimited personal liability is probably the greatest disadvantage of the ___________ form of business ownership. a option a limited liability corporation b option b sole proprietorship c option c partnership d option d subchapter S corporation e option e limited liability partnership

b option b sole proprietorship

he four major elements to be included in a financial feasibility analysis include the following: the initial capital requirements, estimated earnings, time out of cash, and resulting return on investment. The aspect of financial feasibility that is generally of most concern to investors is ____________. a not selected option a capital requirements b not selected option b benchmarking c not selected option c estimated earnings d not selected option d time out of cash e not selected option e return investment

b benchmarking

the product or service feasibility analysis addresses the question, "Are customers willing to purchase our goods and services?" Entrepreneurs need feedback from primary and secondary research from potential customers or market research firms like MELT to successfully answer this question. Secondary research involves gathering data that has already been compiled and is available at a reasonable cost or sometimes even free. Which of the following is NOT a source of secondary research? a not selected option a market research b not selected option b census data c not selected option c trade associations and business directories d not selected option d demographic data e not selected option e industry databases

b census data

If annual demand = 2000, order cost = $50, annual holding cost rate = 15%, and the purchase price = $25 for orders of less than 1000 units, or $15 for orders of 1000 units or more, should you take the discount? Also, what is the minimum total cost? a. No -- $43,280 b. Yes -- $31,225 c. Yes -- $38,477 d. No -- $50,867

b. Yes -- $31,225

If the cost of an item is $500, the carrying cost rate is 20%, the order cost is $75, annual demand is for 1,000 units, calculate the economic order quantity. Round off to the next highest unit. a. 26 b. 52 c. 39 d. 15

c. 39

When using the ABC Inventory Classification, A items typically account for about: a. 80% of the items. b. 20% of the annual dollar usage. c. 15% of the overstocked items. d. 80% of the annual dollar usage.

d. 80% of the annual dollar usage.

Which of the following is not an assumption of the basic economic order quantity model? a. Order lead time is known and constant b. Price is constant c. Demand is known and constant d. Replenishments take place at the proper time

d. Replenishments take place at the proper time

More often, innovation is _____, developing market-sustaining ideas that elaborate on existing products, processes, and services that result from putting old things together in new ways or from taking something away to create something simpler or better. ANSWER revolutionary disruptive fast-paced evolutionary

evolutionary Evolutionary denotes that new things are built by adapting old things and not by starting over.

When Billie Andrews's child was old enough to go to preschool, she looked for a job where she could work 40 hours a week but work when her son was in preschool or when he was home asleep. In other words, what Billie Andrews was looking for was ____. ANSWER flextime an irregular job an easy job a temporary job

flextime

Sam Ephraim works for a large company as a research scientist. When he developed a new adhesive substance, his company financially supported the new product development knowing that this new product would benefit the company. Sam Ephraim is a(n) _______________________. ANSWER shareholder intrapreneur manager marketer

intrapreneur

____ thinking destroys creativity because it is narrowly focused and limited by the status quo. ANSWER Myopic Divergent Non-specialized Broad

myopic

Which of the following is NOT a potential barrier to creativity? ANSWER Optimistic coworkers Unsupportive management Time pressures Overly rigid company policies

optimistic coworkers Pessimistic coworkers can be a potential barrier to creativity.

To find out the market potential for her home cleaning product, Marge McDaniels spent several days at her local mall talking to customers, after which she analyzed all the data she gathered. Marge McDaniels was conducting ___ research. ANSWER primary library secondary archival

primary

Creativity is the ability to develop new ideas and to discover new ways of looking at _____ and ______. ANSWER problems; opportunities prices; promotion products; processes people; profits

problems; opportunities

As part of the interview process for field service technicians at McBundy Appliances, the interviewer will occasionally throw in a question such as: What is the average height of a Dutch male? This type of an interview that features both job-related and offbeat questions is called a(n) ___ interview. ANSWER unfocused offbeat irregular puzzle

puzzle

Enormous quantities of used K-cups (used in Keurig coffee machines) are thrown away, and since they don't degrade quickly, they have an adverse effect on the environment. Jaimie Murray started a business to recycle used K-cups. Jaime is a ____entrepreneur. ANSWER serial social bootstrapping charitable

social Social entrepreneurs seek solutions for society's most vexing problems.

Julie Mack, a human resources employee at Karmack Trucking was entrusted with the job of preparing a written statement of the qualifications and charactertistics, including education, skills, and experience required for four different positions in the company. In other words, Julie Mack was tasked with preparing job ____. ANSWER specifications descriptions analyses orders

specifications

The strongest of the five forces in most industries is ________________. ANSWER the threat of new entrants the bargaining power of buyers the rivalry among competing firms the threat of substitute products or services

the rivalry among competing firms

The Porter's Five Forces Model includes: the rivalry among competing firms, the bargaining power of suppliers, the bargaining power of buyers, the threat of new entrants, and __________. ANSWER the bargaining power of employees the bargaining power of managers the threat of governmental action the threat of substitute products or services

the threat of substitute products or services

In the idea sketch pad, the question, "explain why your product or service will be important to the customers," is part of the _____ parameter. ANSWER offering people value proposition customers

value proposition

Which part of the new business planning process determines whether an​ entrepreneur's idea is a viable foundation for creating a successful​ business? A. Business model canvassing B. Feasibility analysis C. Idea assessment D. Idea generation E. Business model generation

B. Feasibility analysis A feasibility analysis determines whether an​ entrepreneur's idea is a viable foundation for creating a successful business.

In a​ partnership, which type of partner has unlimited liability for the​ company's debts? A. Translucent B. Silent C. Limited D. Dormant E. General

E. General In a​ partnership, general partners have unlimited liability for the​ company's debts.

A company requires billions of dollars in capital to enter the commercial aircraft manufacturing industry. Which of the five forces does this impact? ANSWER Bargaining power of suppliers to the industry Threat of substitutes products or services Threat of new entrants to the industry Bargaining power of buyers

Threat of substitutes products or services

The ____ is the fastest-growing form of business ownership. LLC partnership S corporation C corporation

LLC

Apple did not invent the digital music player, rather the company created a player that was easier to use and offered a "cool" factor that existing MP3 players did not have. This example suggests that more often, _____ is evolutionary. ANSWER profit marketing innovation success

innovation

A ____ corporation has a large number of shareholders, and its stock is usually traded on one of the larger stock exchanges. ANSWER family publicly held closely held majority owned

publicly held

Entrepreneurial ___ refers to the knowledge, experiences, and skills that an entrepreneur needs to have to succeed in many new businesses. ANSWER connections readiness instinct contacts

readiness

When Bingo Martindale applied for an accounting position at Nehemiah Interiors, he was surprised to find out that the accountants at the company sometimes worked in customer service and at other times, went out to cold call customers. This is an example of job ____. ANSWER rotation enlargement simplification enrichment

rotation

The three principles of rapid prototyping are ____, rapid, and right. ANSWER rough recent rare refined

rough

Corporations are creations of ____. ANSWER states owners partners imagination

states