Multiple Choice Questions
1. Small businesses thrive in every industry, but the majority of them are in:
a. mining and manufacturing
b. service industries
c. the general construction industry
d. retail businesses
2. Forces driving the entrepreneurial trend in our economy include which of the following?
a. shift to a service economy
b. e-commerce
c. technological advancement
d. all of the above
3. Money driven and wild risk takers are both:
a. common characteristics of entrepreneurs
b. common misconceptions of entrepreneurs
c. entrepreneur's techniques to success
d. none of the above
4. Small businesses suffer high mortality due to which of the following?
a. limited resources
b. inexperienced management
c. lack of financial stability
d. all of the above
5. The following is true regarding entrepreneurial education:
a. entrepreneurship has become an extremely popular course
b. more courses are being offered in entrepreneurship
c. universities are not able to meet the demand for courses in entrepreneurship
d. all of the above
6. "Copreneurs" are:
a. business magazines targeted towards entrepreneurs
b. entrepreneurial couples who work together as co-owners of their business
c. personality traits of entrepreneurs
d. none of the above
7. Sexual harassment is a serious problem in the workplace and:
a. employers are only liable if the sexual harassment is "quid pro quo"
b. more than 80% of the charges are brought by women
c. about 40% of all sexual harassment in the workplace is done by females to males
d. is especially bad in small businesses
8. The ethical standards test of ethical behavior in businesses that prioritizes acting in such a way that the action taken under the circumstances could be a universal law or rule of behavior is called:
a. the golden rule
b. the professional ethic
c. Kant's categorical imperative
d. the family test
9. Perhaps the best way to deal with the environmental challenges we face would be to:
a. conduct corporate education programs on the issues for employees
b. revert society to a simpler, more environmentally friendly economy
c. create redesigned, "clean" manufacturing systems
d. enhance efforts at recycling existing waste
10. Businesses have which of the following responsibilities to their customers?
a. earning a profit while being socially responsible
b. the right of choosing the products they buy and use
c. reducing packaging, reusing material, and recycling when possible
d. properly managing a diverse workforce
11. Creative thinking is no place for ______.
a. conformity
b. flexibility
c. ambiguity
d. all of the above
12. The goal of the ______ stage in the creative process is to subject the innovative idea to the test of cold, hard reality.
a. investigation
b. transformation
c. verification
d. gestation
13. While working for iRobot, Jim Lynch came up with a new product while cleaning the gutters on his house. Lynch is an example of a(n) ______.
a. manager
b. intrapreneur
c. entrepreneur
d. disruptor
14. ______ are negative internal factors that inhibit the accomplishment of a firm's objectives.
a. Strengths
b. Opportunities
c. Threats
d. Weaknesses
15. The final step in creating a knowledge management program is:
a. to continue to add to the knowledge base the company has assembled
b. to create company goals and objectives
c. to organize the essential knowledge and disseminate it throughout the company to those who need it
d. to take an inventory of the special knowledge a company possesses that gives it a competitive advantage
16. How is the strategic planning process for small companies different from that for large companies?
a. It should be conducted by top management and provided to lower management.
b. The process should begin with setting objectives and conclude with competitive analysis.
c. The planning horizon should cover at least five years into the future.
d. The process should be informal and not overly structured-"a shirtsleeve approach."
17. Entrepreneurial success requires both persistence and ______.
a. reluctance
b. resilience
c. connections
d. education
18. Companies started by women differ from companies started by men in that:
a. women's companies start smaller
b. women's companies tend to be labor-intense businesses and therefore employ more people, even though they have smaller revenues
c. men tend to start their businesses with their own capital, women with others' capital
d. men's start-ups tend to be smaller and less well-financed than women's
19. "Everybody does it." is an example of:
a. consequences and outcomes
b. moral blindness
c. justice
d. public justification
20. ______ is the ability to apply creative solutions to problems and opportunities to enhance or to enrich people's lives.
a. Creativity
b. Showboating
c. Commoditizing
d. Innovation
21. Which of the following is true about successful entrepreneurs and their vision?
a. It is created independently of their market or their customers.
b. It includes their understanding of the competition and their key market segments.
c. They create it in cooperation with their employees.
d. They are able to communicate it and their enthusiasm for it to all those around them.
22. Entrepreneurs start businesses for a number of reasons including:
a. having to deal with less government regulation than as an executive of a large company
b. an opportunity to make a difference
c. a much lower risk of career failure due to layoff or acquisition than working for a large company
d. the opportunity to get rich much quicker than if they work for a large company
23. An entrepreneur's ______ and ______ influence the way she leads her firm through every decision that is made; every policy written; and every action taken.
a. management; family
b. personal values; beliefs
c. management; finances
d. none of the above
24. ______ is the ability to develop new ideas and to discover new ways of looking at problems and opportunities.
a. Creativity
b. Showboating
c. Innovation
d. Commoditizing
25. A strategic plan should not:
a. encourage participation by employees
b. begin with extensive objective setting
c. be informal and not structured
d. be relatively small