Deck 1: Understanding the Entrepreneurial Process

Question 1

The word entreprendre refers to the individuals who "undertook" the risk of new enterprise.

Answer 1

True

Question 2

Fortunately, entrepreneurs do not communicate with external "stakeholders" such as investors and bankers.

Answer 2

False

Question 3

Aspiring entrepreneurs hope for the chance to be their own bosses and have made the leap from their current employment into the uncertainty of a start-up.

Answer 3

False

Question 4

Technology entrepreneurs are individuals with innovative solutions to society's most social problems.

Question 5

Many companies fail because the founders do not confront their management limitations.

Question 6

Fortunately, the skills needed to run a small company are not different from those required to run a larger firm.

Question 7

If an entrepreneur has limited experience and limited internal resources, outside help is not necessary.

Question 8

Looking at the historical trend, it is safe to say that most businesses start small and grow to be a large corporation.

Question 9

The failure rate of new businesses is very high, about 80-90 percent within the first two years.

Question 10

It is important for entrepreneurs to have mentors who always agree with them.

Question 11

Oftentimes, entrepreneurs become so engrossed in their venture that they can neglect their family relationships and their own health.

Question 12

It is important that entrepreneurs consider their lifestyles and personality characteristics, such as desire for control, before undertaking a venture.

Question 13

_____________ have developed an enterprise that fits their individual circumstances and style of life, and their basic intention is to earn an income for themselves and their families.

Question 14

_______________ often seem to be possessed by their ideas, committing their lives to changing the direction of their field.

Question 15

The first decision that an entrepreneur should make is whether personal lifestyle and control are more important than ____________ and eventual wealth creation.

Question 16

The basic objective of Stage ________________ of the entrepreneurial process is to define the criteria that would make a business opportunity worthwhile.

Question 17

Setting goals and objectives, starting to write the plan, determining pricing, and preparing a full business plan are part of Stage _______________ of the entrepreneurial process.

Question 18

A full ____________ is a vital yet dynamic document for a company.

Question 19

Stage 5 of the entrepreneurial process is called ____________________.

Question 20

A(n) _________________ is one that grows large enough to influence the environment and, thus, becomes a pacesetter.

Question 21

Each year at least ____________ new businesses are started in the United States, and of these, a small proportion turn out to be the fast-growth companies that propel the economy forward.

Question 22

The failure rate of new companies is ________ percent within the first two years.

Question 23

Which of the following is not a characteristic of entrepreneurs:

A) Self-starters
B) Lethargic
C) Optimists
D) Perseverant

Question 24

An entrepreneur is driven mainly by:

A) The control of resources
B) Changing technology
C) The perception of opportunity
D) Planning systems

Question 25

Ray Smilor identified all of these entrepreneurs types except:

A) Growth entrepreneurs
B) Aspiring entrepreneurs
C) Lifestyle entrepreneurs
D) Technology entrepreneurs

Question 26

The type of entrepreneur that have the desire and the ability to grow as fast and as large as possible is:

A) Growth entrepreneurs
B) Aspiring entrepreneurs
C) Lifestyle entrepreneurs
D) Technology entrepreneurs

Question 27

Individuals with innovative solutions to society's most social problems are classified as:

A) Lifestyle entrepreneurs
B) Aspiring entrepreneurs
C) Growth entrepreneurs
D) Social entrepreneurs

Question 28

Technology entrepreneurs have ideas triggered by developments in:

A) math and sociology
B) science and history
C) social studies and business
D) science and engineering

Question 29

Building ventures around new technology requires specialist knowledge in all of the following except:

A) social science
B) language arts
C) economics
D) markets

Question 30

A spider-web provides an analogy to a small company because:

A) It is continually under attack from outside.
B) It has both radial and circumferential axes.
C) It has multiple points for support on the outside.
D) It is fragile.

Question 31

To relieve stress you should:

A) Work over the weekend if necessary
B) Plan non-work personal time
C) Work more intensely
D) Work less

Question 32

Which of the following is not a characteristic of relieving stress:

A) Get advice on time-management techniques
B) Try to live at least twenty minutes from work
C) Do not delegate
D) Build in some slack time

Question 33

In what stage of the entrepreneurial process do you evaluate the competition?

A) Stage 1
B) Stage 2
C) Stage 4
D) Stage 5

Question 34

In what stage of the entrepreneurial process would managing the finances take place?

A) Stage 2
B) Stage 3
C) Stage 4
D) Stage 5

Question 35

Forming a strategic alliance and discussing options and alternatives are part of what stage of the entrepreneurial process?

A) Stage 2
B) Stage 3
C) Stage 4
D) Stage 5

Question 36

Which of the following is not a stage of the entrepreneurial process?

A) Developing the plan and setting up the company
B) Buying an existing company
C) Scaling and harvesting the venture
D) Conducting opportunity analysis

Question 37

All of the following are early-stage funding sources except:

A) family and friends
B) banks
C) government sources
D) IPO

Question 38

Stage 4 is:

A) Scaling and Harvesting the Venture
B) Determining the Resources Required and Implementing the Plan
C) Developing the Plan and Setting up the Company
D) Acquiring Financial Partners/Sources of Funding

Question 39

The stages of entrepreneurship includes all of the following except:

A) Conduct an opportunity analysis,
B) Develop the plan and set up the company,
C) Select an attorney
D) Scale and harvest the venture.

Question 40

What percent of all U.S. businesses employ twenty or fewer people?

A) Approximately 98
B) Approximately 87
C) Approximately 65
D) Approximately 50

Question 41

The past ______ years have been years of tremendous growth for entrepreneurial companies and for the individuals who make them thrive.

A) 50
B) 2
C) 15
D) 7

Question 42

How many new businesses are started in the United States each year? Approximately

A) 700,000
B) 1.5 million
C) 450,000
D) 100,000

Question 43

Most businesses do this:

A) Start big, stay big
B) Start small, become big
C) Start small, stay small
D) Start big, become small

Question 44

All of the following are reasons people become entrepreneurs except:

A) working with others
B) make your own decisions
C) flexibility
D) financial rewards

Question 45

The failure rate of new companies is this percent in the first ten years:

A) 40-50
B) 80-90
C) 70-80
D) 75-85

Question 46

Most business ventures that fail are:

A) More than five years old.
B) Less than ten years old.
C) Less than one year old.
D) More than ten years old.

Question 47

Most companies fail because of:

A) having too much money
B) focusing on a bad idea
C) confronting complex management decisions without experience
D) not having enough employees

Question 48

These selected stages of entrepreneurship in order are:

A) determining the resources required and implementing the plan; acquiring financial partners/sources of funding; scaling and harvesting the venture
B) acquiring financial partners/sources of funding; scaling and harvesting the venture; developing the plan and setting up the company
C) determining the resources required; acquiring financial partners/sources of funding; and conducting the opportunity analysis
D) acquiring financial partners/sources of funding; determining resources required and implementing the plan; scaling and harvesting the venture.

Question 49

Entrepreneurship is sometimes discussed as the ability to deal with apparent conflicts and find a balance between differing conditions and personal attributes. An example of this type of conflict would be:

A) creativity and risk taking
B) urgency and patience
C) ambiguity and creativity
D) risk taking and ambiguity