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1) Entrepreneurial education:a. more courses are being offered in entrepreneurshipb. has become extremely popularc. universities are not able to meet the demandd. all of the above2) Which of the following is not a common characteristic of entrepreneurs?a. Desire for responsibilityb. High energy levelc. Preference for moderate riskd. Business plan expertise3) More businesses fail because of ________ than for any other reason.a. poor choice of locationb. incompetent managementc. insufficient capitald. theft by employees4) Earl was a financial consultant who liked to work with his hands, especially in making furniture. He quit his rat race financial job to start a small custom furniture business. After struggling for several years, he closed it and went back to financial services. Earl discovered that there was a big difference between making furniture for himself and running a customer furniture manufacturing business. Tom’s business failed because of:a. an inability to access start-up capitalb. poor financial controlc. his lack of experienced. uncontrolled growth5) The key ingredient-the crucial element-to avoiding the failure of a new business is:a. technical expertise regarding the productb. the business planc. knowing the businessd. differentiating the business and product from the competition6) A knowledge based business economy favors small business because:a. information technology is driving cost of managing and transmitting knowledge lowerb. small businesses are more successfulc. the cost of managing and transmitting knowledge is very lowd. Both A and C7) “Copreneurs” are:a. business magazines targeted towards entrepreneursb. entrepreneurial couples who work together as co-owners of their businessc. personality traits of entrepreneursd. none of the above8) The most important change due to expansion occurs in:a. organizational structureb. personnel assignmentsc. managerial expertised. inventory and financial control procedures9) Customer service, convenience, speed and quality are all examples of:a. learning to manage people effectivelyb. generating more revenuec. setting your business apart from othersd. small businesses10) 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 be informal and not overly structured–”a shirtsleeve approach.”c. The planning horizon should cover at least five years into the future.d. The process should begin with setting objectives and conclude with competitive analysis.16) A partnership agreement sets how the partners will be compensated. Normally,a. both general and limited partners are permitted salaries, but all silent or dormant partnersare compensated only by sharing in the profits.b. partners are not entitled to salaries or wages, but are compensated by a share of the profitsof the business.c. while the agreement establishes payout schedules, it does not spell out what constitutesprofit.d. the general partner’s salary is set at 2 times the salaries of the limited partners.17) Shares the corporation itself owns are called:a. preferred stockb. common stockc. treasury stockd. bonds18) In franchising, the reputation of the franchiser is dependent on:a. the quality of the goods and services providedb. the brand name recognition and appealc. their locations and popularity with the local customerd. the rate of growth and the number of national outlets
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