ENTR Final Try2

The managerial successor typically is not interested in

creativity.

A harvest plan

defines when and how owners and investors will realize an actual cash return on their investment.

Small business owners are often guarded about their businesses, which leads to

distrust of others when formulating a strategic plan.

Financing includes all of the following except

equitable payback.

Which of the following would be most commonly used for intermediate-term financing?

finance companies

The reason many small business managers lack expertise is that they are

generalists.

Bottom-line measures of economic performance include all of the following except:

global competition.

All of the following are characteristic of entrepreneurial cultures except

hierarchy.

Emotional bias is likely to have what effect on a seller's valuation of a business?

increase the valuation

When starting a business, which of the following sources of financing are least likely to be used?

insurance companies

Which of the following would be most commonly used for long-term financing?

insurance companies

An entrepreneurial successor is someone who

is ingenious, creative, and driven.

A patent gives the holder a temporary

monopoly.

Succession pressure inside the firm exists

when family members want to keep and manage the business themselves.

The first step in planning a strategy of entrepreneurship for enterprise is

sharing the vision of innovation.

If we accept the argument that social entrepreneurship is a continuum, at one extreme would be social entrepreneurs driven exclusively by producing social benefits; at the other, would be

social entrepreneurs motivated by profitability with social benefits being the means.

Formation of long-range plans for effective management in light of a venture's strengths and weaknesses is referred to as

strategic planning.

The adverse impact of can be so destructive that individuals within the enterprise will tend to avoid entrepreneurial behavior.

traditional management techniques

Which is not a trait of a successful entrepreneur?

trouble fitting in

Which of the following is not a step in developing a succession strategy?

undertaking forcing events

Corporate entrepreneurial strategy should be thought of as

vision directed.

The "dark side" of entrepreneurship refers to

a destructive force within the energetic drive of entrepreneurs.

Which is not perceived as a difficulty in long-range planning?

arranging vacation time

Which of the following is a type of equity financing?

common stock

Barriers to successful succession planning, discussed in the text, include which of the following?

dilemma of choice

If cash flow is deemed the most important consideration in buying a business, which valuation method is likely to be used?

discounted future earnings

Which of the following should not be considered when buying a business?

employee retention

The major thrust of corporate entrepreneurship is to

encourage innovation.

A type of successor who is high in ingenuity, creativity, and drive would be considered a(n)

entrepreneurial successor.

Traditional valuation methods include all of the following except

high equity/low debt.

Items that can qualify for patent protection include all of the following except

ideas.

Each of the following are nonfamily elements under pressure and interest from outside the firm except

increased insurance rates.

The primary advantage of the price/earnings approach to valuation is that

it is simple to use.

Which is not one of the major sections of the bankruptcy act?

liquidation

One of the advantages of public offerings is

liquidity.

An L3C is a new legal form for social enterprises known as

low-profit, limited liability companies.

Venture capitalists are experienced professionals who provide a full range of service for new ventures including

management consulting.

To establish a sole proprietorship, a person needs to

obtain whatever local and state licenses are necessary.

A clear pattern among successful entrepreneurs is

their focus on opportunity rather than resources.

Characteristics often attributed to the entrepreneur include:

Commitment, determination, and perseverance

​Which of the following activities does not characterize the social entrepreneur?

operating with a low sense of accountability

All of the following are recognized as advantages of partnerships except

possible tax advantages.

The discounted earnings method of valuation establishes

potential earning power.

TBL focuses on all the following except

precedence.

Which of the following is not a question in the corporate entrepreneurial planning process?

Has the firm met government regulations for innovation?

Which of the following falls under Chapter 7 bankruptcy?

The debtor is relieved of obligations.

All of the following are reasons for the growth of corporate entrepreneurship except

a desire to dramatically increase profitability.

Research shows that many privately held firms go out of business within

10 years.

Design patent protection lasts for _____ years.

14

__________ refers to conducting a thorough analysis of every facet of an existing business.

Due diligence

Which of the following statements is false?

Entrepreneurs are born with the skills necessary to manage a business.

Research on family firms demonstrates which of the following facts?

Only 16 percent make it to a third generation.

Which of the following statements about social entrepreneurship is not true?

Social entrepreneurship is limited to the world of not-for-profit corporations.

Corporate social responsibility refers to

actions that further some social good beyond the interests of the firm.

The purpose of filing for Chapter 7 bankruptcy is

allocation changes.

Entrepreneurial persistence is related to

avoiding counter influences to entrepreneurship.

What kind of thinking can lead to unethical behavior in a business context?

bottom line

Price/earnings ratio is a method of valuation that is

mostly used with publicly held corporations.

Many new ventures find that debt financing is

necessary.

Which of the following would be considered a fatal mistakes in strategic planning, according to researcher Michael E. Porter?

no real competitive advantage

Which of the following terms is synonymous with social lending?

peer-to-peer (P2P) lending

In attempting to create an entrepreneurial climate, the organization should consider that

the corporations that promote personal growth will attract the best people.

Generally, entrepreneurial stress is due to

the discrepancy between the entrepreneur's expectations and the ability to meet demands.

Copyrights may be expressed in all of the following except

records.

A disadvantage of debt financing is

regular interest payments.

Which of the following is an advantage to developing an entrepreneurial environment?

retention and motivation of the best employees

The basic challenge for social enterprise is addressing the obligations of business to

society.

The text of a patent application is known as the

specification.

Some buyers are willing to pay more for a business than what valuation methods determine its worth to be. What are these buyers attempting to avoid?

start-up costs

Analysis of a firm's external and internal environments provides the firm with the information to develop

strategic intent and strategic mission

A "SWOT" analysis refers to

strength, weaknesses, opportunities, threats

Examples of social enterprise obligations to the environment include all of the following except

support for minority-own businesses.

One reason why corporate entrepreneurship has done so well is that it allows organizations to

tap the innovative talents of their people.

The decision to behave entrepreneurially is the result of the interaction of

the individual's personal entrepreneurial mind-set and an opportunity.

The past is the best predictor of the future, according to which mind-set?

the managerial mind-set

Which of the following are specific factors identified by researchers, that organizations can concentrate on in structuring an entrepreneurial climate.

top management support, time, resources, rewards, and organizational boundaries

North American Free Trade Agreement (NAFTA) has developed

trade barrier reductions.

The textbook describes three types of leadership of consequence to new ventures. What are they?

visionary, strategic, and managerial