Complete Test Bank Ch6 Entrepreneurship And New Ventures - Management Canada 5e | Complete Test Bank by John R. Schermerhorn Jr. DOCX document preview.
CHAPTER 6
ENTREPRENEURSHIP AND NEW VENTURES
Question type: True/False
1) Entrepreneurship describes strategic thinking and risk-aversion behaviour in business that results in new opportunities.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
2) Entrepreneurship describes strategic thinking and risk-taking behaviour that results in the creation of new opportunities for individuals and/or organizations.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
3) A classic entrepreneur is a risk-taking individual who acts to pursue opportunities and situations others fail to recognize, or even view as problems or threats.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
4) Serial entrepreneurship is one way for people, including women and minorities who have hit the “glass ceiling” in their careers or are otherwise cut off from other employment choices, to strike out on their own and gain economic independence.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
5) A first-mover advantage comes from being first to exploit a niche or enter a market.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
6) A first-mover advantage comes from being first within the industry to outsource non-core business activities or to embrace social responsibility.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
7) Serial entrepreneurs exist only in for profit organizations.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
8) Entrepreneurs are born, not made.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
9) The following phrases⎯entrepreneurs are born, not made; entrepreneurs are gamblers; and entrepreneurs are young⎯capture three fundamental truths about entrepreneurs.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
10) One of the myths about entrepreneurs is that entrepreneurs are risk averse and take as few gambles or chances as possible.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
11) Having sufficient money or capital to start up and maintain an entrepreneurial venture is a guarantee to entrepreneurial success.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
12) Entrepreneurs include people who buy a local franchise outlet, open a small retail shop, or go into a self-employed service business.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
13) Founders of new business enterprises that achieve large-scale success or people who assume responsibility for introducing a new product or a change in operations in an existing organization are not entrepreneurs.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
14) The general profile of an entrepreneur is an individual who is very self-confident, determined, resilient, adaptable, and driven by excellence.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
15) Entrepreneurs typically have an internal locus of control, a high energy level, a high need for achievement, a high tolerance for ambiguity, self-confidence, an action orientation, the desire for independence, and a high degree of flexibility.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
16) Entrepreneurs’ belief that they are in control of their own destiny shows that they have an internal locus of control.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
17) Entrepreneurs tend to have a tolerance for ambiguity.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
18) Entrepreneurs typically come from families with strong corporate career backgrounds and seek independence from the corporate bureaucracies that dominated their parents.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
19) Entrepreneurs have strong interests in creative production and high interest in enterprise control.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
20) Entrepreneurs are self-starters who are willing to stay with a course of action even when their plans are not working.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
21) Most entrepreneurs start their own business before the age of 25.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
22) An individual’s family environment has little to no impact on the success or failure of an entrepreneurial enterprise.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
23) Anita Roddick, founder of The Body Shop PLC, said she created her business: “to create a livelihood for myself and my two daughters, while my husband, Gordon, was trekking across the Americas”. This is an example of necessity-based entrepreneurship.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
24) Economists differentiate between entrepreneurs who are driven by the quest for new opportunities and those who are driven by absolute need.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
25) Necessity-based entrepreneurship takes place because other employment options don’t exist.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
26) Entrepreneurship offers women and members of visible minorities opportunities to strike out on their own and gain economic independence.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
27) Women and minorities are more likely to reach higher levels of success and opportunities by working for a large corporation than by starting their own businesses.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
28) Minority-owned businesses are one of the slowest growing sectors of the Canadian economy.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
29) Entrepreneurship does not offer women and members of visible minorities opportunities to strike out on their own and gain economic independence.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
30) Classic entrepreneurship is a form of ethical entrepreneurship that seeks novel ways to solve pressing social problems.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
31) Social enterprises have a social mission to help make lives better for underserved populations.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
32) McGill University has created an MBA program in social enterprise and entrepreneurship.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
33) The vast majority of small businesses employ between 100 and 150 persons.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
34) Wanting to be their own bosses and controlling their future or seeking to fulfill a dream are important reasons that people pursue entrepreneurship and launch their own businesses.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
35) One of the common ways to get involved in a small business is to buy and run a franchise.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
36) In a franchise, the franchise parent receives a share of income or a flat fee from the franchisee.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
37) A franchise is where a business owner sells to another person the right to operate the same business in another location, under the original owner’s business name and guidance.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
38) A business model is a plan for how the enterprise will generate profits.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
39) A start-up is a new venture that the entrepreneur is hoping will take shape and prove successful as things move forward.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
40) Lean start-ups are permanent, cost-intensive organizations.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
41) Growing too fast is one of the reasons small businesses fail.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
42) Statistics on Canadian small business failure rates indicate that almost 50 percent of new businesses fail in their first five years of operation.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
43) Lack of experience, lack of expertise, lack of strategy and strategic leadership, poor financial control, growing too fast, lack of commitment, and ethical failure are important reasons for new business failures.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
44) Not having sufficient know-how to run a business in the chosen market or area is a reason for the high failure rate of new businesses.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
45) Taking the time to craft a vision and mission, and to formulate, revise, and properly implement strategy are reasons for the high failure rate of new businesses.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
46) Not keeping track of the numbers and failure to control business finances has little to do with business success or failure.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
47) Not taking the time to consolidate a position, fine-tune the organization, or systematically meet the challenges of growth are some of the reasons for the high failure rate of new businesses.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
48) Not devoting enough time to the requirements of running a competitive business is one of the reasons for the high failure rate of new businesses.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
49) A family business feud is the issue of who will run the business when the current head leaves.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
50) Everyone working together, sharing values and a common goal, and knowing that what they do benefits the family, define the ideal situation in a family business.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
510) While family businesses must solve the same problems of other small or large businesses, they also must address a set of unique problems.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
52) The family business feud occurs when members of the controlling family get into disagreements about work responsibilities or finances but not business strategy or operating approaches.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
53) A significant problem that faces family business is the succession problem, which is the transfer of leadership from one generation to the next.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
54) Only a small percent of businesses operating worldwide are family owned; most are public corporations.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
55) The clear majority of family business with succession plans will survive well beyond the second generation.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
56) About 70 percent of family firms survive to the second generation, about 45 percent survive to the third generation, and about 25 percent are expected to survive beyond the third generation.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
57) A succession plan must include legal aspects of any ownership transfer as well as procedures for choosing or designating the firm’s new leadership or any financial and estate plans relating to the transfer.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
58) In succession planning, family businesses should set up the succession plan well in advance of the need to use it; and then share it with all affected persons, making sure they understand it.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
59) In succession planning, family businesses should identify the leadership successor well ahead of time and prepare the leadership successor through training and experience to assume the new role when needed.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
60) Having a succession plan helps avoid a succession problem.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
61) Business incubators are also called business accelerators.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
62) Business incubators aid in the development of start-ups.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
63) The entrepreneur’s ability to identify a market niche that is being missed by other established firms or to identify a new market that has not yet been discovered by existing firms are important avenues of new venture creation.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
64) To stay customer focused, a new venture should effectively address questions such as: Who is your customer? How will you price your product or service for the customer? How much does it cost to attract a customer? How much does it cost to support and retain a customer?
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
65) The three life cycles of an entrepreneurial firm are the birth cycle, the breakthrough cycle and the maturity cycle.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
66) In the birth stage of the life cycle of entrepreneurial firms, the entrepreneur struggles to get the new venture established and to survive long enough to test the viability of the underlying business model in the marketplace.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
67) Activities that focus on establishing the business, getting customers, and finding financing occur in the birth stage of the life cycle of entrepreneurial firms.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
68) The breakthrough stage involves establishing the firm and fighting for its existence.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
69) At the breakthrough stage of the life cycle of entrepreneurial firms, the management challenge is one of fighting for existence and survival.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
70) At the breakthrough stage of the life cycle of entrepreneurial firms, the business model begins to work well, growth is experienced, and the complexity of managing the business operation expands significantly.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
71) Activities that focus on working on finances, becoming profitable and growing occur in the birth stage of the life cycle of entrepreneurial firms.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
72) At the breakthrough stage of the life cycle of entrepreneurial firms, the management challenge is one of investing wisely and staying flexible.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
73) In the maturity stage of the life cycle of entrepreneurial firms, the entrepreneur experiences the advantages of market success and financial stability, while also facing continuing challenges of meeting the needs for professional management skills.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
74) At the maturity stage of the life cycle of entrepreneurial firms, the management challenge is one of coping with growth and takeoff.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
75) The life cycle of entrepreneurial firms poses different management challenges at each stage and requires different management competencies at each stage.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
76) Self-management is an ability to use objective understanding of personal strengths and weaknesses to keep growing—individually and career-wise.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
77) A succession plan describes the direction for a new business and the financing needed to operate it.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
78) A business plan describes the direction for a new business and the financing needed to operate it.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
79) A business plan should include an executive summary, industry analysis, company description, products and services description, market description, marketing strategy, operations description, staffing description, financial projection, capital needs, and milestones.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
80) A business plan should be comprehensive, easy to read, and less than ten pages.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
81) A business plan forces an entrepreneur to explore important challenges and issues that must be addressed before starting a new business.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
82) The business plan of a small, start-up business might not include information about the costs of the start-up or details about financing.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
83) In a business plan, the executive summary contains the mission of the company, the details of the owners, and the legal form of the organization.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
84) One of the important decisions in starting a new business venture is choosing the legal form of ownership.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
85) A sole proprietorship is simple to start, run, and terminate.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
86) A sole proprietorship is the most common form of small business ownership in Canada.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
87) When establishing a corporation, a partnership agreement must be made.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
88) A partnership is formed when two or more people agree to contribute resources to start and operate a business together.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
89) A general partnership consists of business partners who agree on the contribution of resources and skills to the new venture, and on the sharing of profits, losses, and management responsibilities.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
90) A limited partnership limits the liability of one partner for the negligence of another partner. A limited liability partnership consists of a general partner and one or more other partners who do not participate in day-to-day business management.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
91) A corporation is a legal entity that exists separate from its owners, protects the owners from personal liability, and gives the firm a life of its own beyond that of its owners.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
92) A benefit corporation is a legal entity that exists separate from its owners, and benefit the owners by limiting liability to the corporation.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
93) A benefit corporation is a corporate entity designed to benefit society, and must include their goals of social entrepreneurship and social enterprises in the bylaws of incorporation.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
94) A limited liability corporation is a hybrid business form combining advantages of the sole proprietorship, partnership, and corporation.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
95) For tax purposes, the limited liability corporation functions like a corporation, protecting the owners’ assets against claims made against the company.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
96) For liability purposes, the limited liability corporation functions as a partnership in the case of multiple owners and as a sole proprietorship in the case of a single owner.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
97) Debt financing may require collateral that pledges business assets or personal assets, such as a home, to secure the loan in case of default.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
98) Debt financing involves borrowing money from another person, a bank, or a financial institution and repaying it over time with interest.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
99) Equity financing involve exchanging ownership shares in the business in return for outside investment monies.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
100) A limited partnership can raise capital through equity financing.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
101) Debt financing involves exchanging ownership shares for outside investment monies, whereas equity financing involves borrowing money to be repaid over time with interest.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
102) Equity financing is usually obtained from venture capitalists, which are companies that pool capital and make investments in new ventures in return for an equity stake in the business.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
103) Venture capitalists tend to focus on relatively large investments and they usually take a management role to grow the business and add value as soon as possible.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
104) Sometimes an entrepreneurial venture becomes a candidate for an initial public offering in which shares in the business are sold to the public and begin trading on a major stock exchange.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
105) A successful initial public offering (IPO) enhances the value of the original investments of the venture capitalist and the entrepreneur.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
106) An angel investor is a wealthy individual who is willing to make an investment in return for equity in a new venture.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
107) The presence of angel investors is common and helpful in the very early start-up stage of an entrepreneurial venture, and as a result cause venture capitalists to have little interest in investing in the entrepreneurial venture.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
108) Crowdfunding is an online platform where entrepreneurs can obtain start-up financing.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
109) A disadvantage to crowdfunding is that investors may fall prey to fraudsters, resulting in a loss of trust for the method.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
110) An advantage to crowdfunding is that the funds raised are not required to be paid back as it is a form of equity funding.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
111) The equity security model is a crowdfunding model currently available only in the United States.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
Question type: Multiple Choice
112) The term ___ describes strategic thinking and risk-taking behaviour that results in the creation of new opportunities.
a) business planning
b) partnership
c) entrepreneurship
d) proxemics
e) franchising
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
113) H. Wayne Huizenga believes that “An important part of ___ is a gut instinct that allows you to believe in your heart that something will work even though everyone else says it will not.”
a) being an entrepreneur
b) visioning
c) business venturing
d) strategic management
e) small business success
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
114) Entrepreneurship is risk-taking behaviour that results in ___.
a) higher profits
b) guaranteed success
c) a new business plan
d) new opportunities
e) limited control
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
115) A ___ entrepreneur is a risk-taking individual who acts to pursue opportunities others fail to recognize, or even view as problems or threats.
a) serial
b) classic
c) follow-through
d) sustainer
e) social
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
116) The main characteristic of ___ an entrepreneur is that they start and run new ventures repeatedly, moving from one interest and opportunity to the next.
a) sustainer
b) classic
c) serial
d) first-mover
e) necessity-based
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
117) A _______ is a risk-taking individual who acts to pursue opportunities and situations others fail to recognize, or even view as problems or threats.
a) classic entrepreneur
b) social entrepreneur
c) needs-based entrepreneur
d) serial entrepreneur
e) first mover entrepreneur
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
118) Which of the following is true about serial entrepreneurs?
a) They are born, not made.
b) They pursue innovations within the company that can change the organization in significant ways.
c) They make large investments in new ventures in return for an equity stake in the business.
d) They start and run businesses and non-profits over and over again, moving from one interest and opportunity to the next.
e) They are primarily responsible for selling of shares of stock to the public at large.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
119) A first-mover advantage comes from
a) making improvements to existing product lines.
b) being the first to exploit a niche or enter a market.
c) being the first to take a free ride on the opportunity created by a pioneer.
d) the ability to poach trained personnel from an established business.
e) taking risks while strategizing to improve an existing market.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
120) What is the requisite age for an entrepreneur to start a business?
a) There is no requisite age for entrepreneurship.
b) between 25-35 years old
c) over 45 years old
d) the younger the better
e) none of the above
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
121) Which of the following is not a typical characteristics of entrepreneurs?
a) Take calculated risks.
b) Have a high need for power.
c) Have an internal locus of control.
d) Demonstrate self-confidence.
e) Have a high tolerance for ambiguity.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
122) Which of the following is true of entrepreneurs?
a) They believe that their destiny is beyond their control.
b) They like to avoid risk.
c) They have a high need for achievement.
d) They are averse to autonomy.
e) They have a low tolerance for ambiguity.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
123) Entrepreneurs include ___.
a) founders of new business enterprises that achieve large-scale success
b) people who buy a local franchise outlet, open a small retail shop, or go into a self-employed service business
c) people who assume responsibility for introducing a new product or a change in operations in an existing organization
d) all of the above
e) only a and b above
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
124) The characteristics that are typically associated with entrepreneurs include all the following except
a) internal locus of control.
b) high need for achievement.
c) creativity.
d) action orientation.
e) self-confidence.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: easy
AACSB: Analytic
125) Which one of the following statements does not accurately describe entrepreneurs?
a) Entrepreneurs believe that they control their own destiny; they are self-directing and like autonomy.
b) Entrepreneurs are persistent, hardworking, and willing to exert extraordinary efforts to succeed.
c) Entrepreneurs are motivated to act collectively to accomplish challenging goals.
d) Entrepreneurs are risk takers; they tolerate situations with high degrees of uncertainty.
e) Entrepreneurs feel competent, believe in themselves, and are willing to make decisions.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Comprehension
Difficulty: Medium
AACSB: Analytic
126) Avery, a young college graduate, started a store for traditional musical instruments. Avery likes working independently, and not being directed by others. Which of the following personality traits of an entrepreneur is exhibited by Avery?
a) internal locus of control
b) high energy level
c) high need for achievement
d) tolerance for ambiguity
e) flexibility
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
127) Entrepreneurs share all the following characteristics except
a) entrepreneurs believe that they control their own destiny; they are self-directing and like autonomy.
b) entrepreneurs are risk minimizes since this is the best way to control their own destinies.
c) entrepreneurs are motivated to act individually to accomplish challenging goals; they thrive on performance feedback.
d) entrepreneurs try to act ahead of problems; they want to get things done quickly and do not want to waste valuable time.
e) entrepreneurs want to be independent; they are highly self-reliant and want to be their own boss rather than to work for others.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Comprehension
Difficulty: Medium
AACSB: Analytic
128) There are certain myths about entrepreneurs. Which of the following is not one of these myths?
a) Entrepreneurs are made, not born.
b) Entrepreneurs are gamblers.
c) Money is the key to entrepreneurial success.
d) You must be young to be an entrepreneur.
e) You must have a degree in business to be an entrepreneur.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
129) Entrepreneurs
a) do not like situations with high degree of uncertainty.
b) driven by excellence.
c) have an external locus of control.
d) are unwilling to admit problems and errors.
e) do not like autonomy.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
130) Entrepreneurs tend to have distinguishable backgrounds and experiences, including all but which one of the following?
a) Entrepreneurs typically come from families with strong corporate career backgrounds and seek independence from the corporate bureaucracies that dominated their parents.
b) Entrepreneurs seek independence and the sense of mastery that comes with success.
c) Entrepreneurs tend to have prior career or personal experience in the business area or industry in which they develop an entrepreneurial venture.
d) Entrepreneurs have strong interests in creative production and enterprise control.
e) Entrepreneurs often try more than one business venture.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
131) Which of the following scenarios best demonstrates an entrepreneur who has a tolerance for ambiguity?
a) Jean’s decision to modify a pre-existing problem-tackling strategy in his private firm
b) Roger’s decision to hire an experienced manager to head his new branch in another state
c) Karl’s decision to expand his private firm overseas despite the risk of facing cultural differences
d) Sasha’s decision to quit her job to enter a partnership with a well-recognized firm
e) Giselle’s decision to join her family’s well-established business
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
132) ___ takes place because other employment options don’t exist.
a) Classic entrepreneurship
b) Serial entrepreneurship
c) Intrapreneurship
d) An initial public offering
e) Necessity-based entrepreneurship
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
133) According to Industry Canada, Canada’s (Small and Medium-sized Enterprises) SMEs have revenues that are ___% less than the average Canadian SME.
a) 8
b) 13
c) 25
d) 33
e) 45
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
134) Charlie graduated from culinary school a few years ago, however Charlie has been unemployed for the past two months, and there are virtually no jobs currently available. Struggling to pay the bills Charlie realizes that something needs to happen. Noticing that there are no bakeshops anywhere in the neighborhood, Charlie opens a neighborhood bakeshop. Based on this information Charlie is a ____________.
a) necessity-based entrepreneur.
b) social entrepreneur.
c) venture capitalist.
d) intrapreneur.
e) serial entrepreneur.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
135) Remy, a single parent of two very young children cannot work away from home. Remy decided to start a tutoring business and set up an office space in the basement. Which of the following kinds of entrepreneurship is this an example of?
a) serial entrepreneurship
b) necessity-based entrepreneurship
c) intrapreneurship
d) Internet entrepreneurship
e) social entrepreneurship
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
136) ___ entrepreneurship is one way for people, including women and minorities who have hit the “glass ceiling” in their careers or are otherwise cut off from other employment choices, to strike out on their own and gain economic independence.
a) Classic
b) Necessity-based
c) Follow-through
d) Serial
e) Sustainable
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
137) Social entrepreneurs
a) take risks and create enterprises whose missions is to help make lives better for underserved populations.
b) bring buyers and sellers together for online business transactions and take a percentage from the sales.
c) are wealthy individuals willing to invest in a new venture in return for an equity stake.
d) pursue innovations that can change the organization in significant ways.
e) start new ventures because they have few or no other employment and career options.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
138) Colin and Becky started a garbage disposal and recycling program called “No More Trash” in their city, which has seen enormous growth in the last few years. The public waste management system has proved to be a failure as the authorities are overwhelmed by the influx of people that have recently moved to the area. Which of the following kinds of entrepreneurship is “No More Trash” an example of?
a) serial entrepreneurship
b) necessity-based entrepreneurship
c) intrapreneurship
d) Internet entrepreneurship
e) social entrepreneurship
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
139) Andrew Young, the founder of “The One Acre Fund,” provides low-interest loans and agricultural education to East African farmers. This is an example of
a) a family business.
b) social entrepreneurship.
c) entrepreneurship.
d) diversity through entrepreneurship.
e) an entrepreneur with a high need for achievement.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
140) Harley, a florist, realized the need for easily accessible organic compost in the neighbourhood that neighbourhood consists mainly of senior citizens who are unable to procure their own gardening supplies. Harley quickly established “We Compost,” a non-profit organization that delivers compost to each household in the neighbourhood. This is an example of ___.
a) serial entrepreneurship
b) classic entrepreneurship
c) intrapreneurship
d) necessity-based entrepreneurship
e) social entrepreneurship
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
141) A(n) ___ necessarily has between 5 and 100 employees, is independently owned and operated, and does not dominate its industry.
a) small business
b) social organization
c) non-profit organization
d) classic entrepreneurship
e) Internet entrepreneurship
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
142) Which of the following is not one of the defining characteristics of small businesses?
a) a business with 100 or fewer employees
b) a business that makes an annual profit of less than $100,000
c) a business that is independently owned
d) a business that is independently operated
e) a business that does not dominate its industry
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
143) A ___ is a business in which the owner of a business sells to another the right to operate the same business in another location.
a) non-profit organization
b) franchise
c) joint venture
d) family business
e) wholly-owned subsidiary
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
144) Which of the following is true about a franchise?
a) It is one of the least common ways to get involved in a business.
b) It runs under the franchisee’s name and guidance.
c) The franchise parent receives a flat fee from the franchisee.
d) It makes use of things like open source software, while containing costs, staying small, and keeping operations as simple as possible.
e) It refers to a business in which material or goods are given to another person, but ownership is retained until the goods are sold.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
145) A business model is a
a) plan that describes the organizational structure of the company.
b) plan for making a profit by generating revenues that are greater than costs.
c) plan to determine the strengths and viability of a company’s organizational structure.
d) model that depicts the detail of an organization’s workflow.
e) model that lists the details of all the employees of an organization.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
146) A(n) ___ is a new and temporary venture that is trying to discover a profitable business model for future success.
a) family business
b) intrapreneurship
c) start-up
d) business incubator
e) acquisition
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
147) Lean start-ups
a) aim to create a sophisticated product with a big budget.
b) focus on increasing their acquisitions.
c) establish a complex and detailed work structure.
d) aim to keep operations as simple as possible.
e) focus on making lives better for underserved populations.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
148) One of the reasons small business start-ups can fail is due to
a) lack of business expertise.
b) strict financial controls.
c) high ethical standards.
d) slow growth.
e) strategic leadership.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
149) Industry Canada statistics on small business failure rates indicate that ___ of new businesses fail in their first five years of operation.
a) less than 20 percent
b) 20 to 40 percent
c) about half
d) 60 to 80 percent
e) more than 80 percent
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
150) Which of the following is not a reason for the high failure rate of new businesses?
a) poor financial control
b) growing too fast
c) lack of experience
d) poor advertising
e) ethical failure
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
151) All the following are reasons for the high failure rate of new businesses except
a) not having sufficient know-how to run a business in the chosen market or area.
b) not having expertise in the essentials of business operations, including finance, purchasing, selling and production.
c) not taking the time to craft a vision and mission, and formulate, revise, and properly implement strategy.
d) not keeping track of the numbers and failure to control business finances.
e) not taking the time to adequately promote the product.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Comprehension
Difficulty: Medium
AACSB: Analytic
152) Monroe decided to open a general hardware store in Winnipeg. Monroe had no previous retail management experience however Monroe does have ten years of experience as a retail clerk. Unfortunately, Monroe was unable to cope with the demands of running a store, and after several bad decisions, finally had to shut the store down. What was likely the main reason for the failure of Monroe’s business?
a) lack of experience
b) insufficient financing
c) lack of commitment
d) ethical failure
e) growing too fast
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
153) ___ implies that a business owner does not have the skillsets required in the essentials of business operations, including finance, purchasing, selling, or production.
a) Lack of experience
b) Insufficient financing
c) Lack of expertise
d) Ethical failure
e) Growing too fast
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
154) Which of the following best describes a lack of commitment?
a) not having enough funding to maintain operations while still building the business and gaining access to customers and markets
b) not having sufficient know-how to run a business in the chosen market or geographical area
c) not having expertise in the essentials of business operations, including finance, purchasing, selling, and production
d) falling prey to the temptations of fraud, deception, and embezzlement
e) not devoting enough time to the requirements of running a competitive business
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
155) Which of the following best describes lack of strategy and strategic leadership?
a) not taking the time to craft a vision and mission, nor to formulate and properly implement a plan
b) not having enough funding to maintain operations while still building the business and gaining access to customers and markets
c) not having sufficient know-how to run a business in the chosen market or geographical area
d) falling prey to the temptations of fraud, deception, and embezzlement
e) not having expertise in the essentials of business operations, including finance, purchasing, selling, and production
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
156) Canadian Business magazine provided a list of reasons why small businesses fail. Which of the following is one of those reasons?
a) Too many partners
b) Growing too fast
c) Relying on customers for financial needs
d) Being at least ten times better than the competition
e) Having too much experience
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
157) All the following statements about family businesses are accurate except
a) Family businesses are responsible for 60% of the Canadian GDP.
b) Family businesses are often impacted by intergenerational conflicts between family members.
c) Over 50% of family businesses survive to the second (next) generation.
d) The largest percentage of private businesses operating in Canada are family businesses.
e) Family businesses have the same problems as other small and medium sized businesses.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
158) According to the text, a family business is an ideal situation when everything goes right. Which of the following is not one of the aspects of everything going right with a family business?
a) Everyone working together.
b) Everyone sharing values.
c) Everyone sharing a common goal.
d) Everyone enjoying equal shares in the financial success of the business.
e) Everyone knowing that what they do benefits the family.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
159) The family business feud occurs when members of the controlling family get into disagreements about ___.
a) work responsibilities
b) business strategy
c) operating approaches
d) finances
e) all of the above
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
160) In family businesses, ___ refers to the problem that arises when members of the family have major disagreements over how the business should be run.
a) budget deficit
b) debt financing
c) an ethical dilemma
d) a reverse culture shock
e) a family business feud
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
161) A(n) ___ plan describes how the leadership transition and related financial matters will be handled when the time for changeover arrives.
a) change map
b) transition map
c) transformation plan
d) succession plan
e) operational plan
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
162) Which of the following descriptions of the succession problem in family businesses is inaccurate?
a) The succession problem involves transferring leadership from one generation to the next.
b) A key management issue in the succession problem concerns how the assets will be distributed and who will run the business when the current head leaves.
c) The succession problem should be addressed ahead of time with a succession plan.
d) The clear majority of family business with succession plans will survive well beyond the second generation.
e) Since not all family businesses have succession plans, many will not survive beyond the first generation.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
163) Ripley and Charley are both general managers at Alton & Sons, their father’s business. After a heart attack, their father decides to retire and is now faced with the challenge of choosing between one of his two equally capable children to replace him in the business. Which type of problem related to family businesses is the father facing?
a) family business integration
b) succession problem
c) family disagreement
d) role confusion
e) family business feud
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
164) Lenci opened a chain of four restaurants, each of which are run by different members of the family. Lenci has outlined the vision, rules, and regulations for the restaurants and is considering expanding into online ordering for takeout as well as a few other opportunities. For the restaurants to continue to operate successfully, Lenci and the entire family need to develop a(n)
a) business plan.
b) marketing plan.
c) expansion plan.
d) succession plan.
e) milestone plan.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
165) ___ offer space, shared services, and advice to help get small businesses started.
a) Business councillors
b) Business incubators
c) Succession plans
d) Social advisors
e) Internet entrepreneurships
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
166) The goal of business incubators is to
a) ensure that established businesses retain their competitive advantage.
b) aid third generation family businesses resolve family business feuds.
c) formulate a succession plan for established family businesses.
d) increase the survival rates for new start-ups.
e) establish social enterprises.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
167) Which of the following is true of small business development centres?
a) They concentrate on establishing social enterprises.
b) They exclusively support all non-profit organizations.
c) They are supported by the Canadian government’s Business Development Program or BDP.
d) They offer guidance to entrepreneurs trying to invest in Canadian mergers and acquisitions.
e) They aid in the development of the public sector.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
168) The role of the Business Development Program (BDP) include all of the following except?
a) provide guidance to existing and prospective business owners on how to set up and manager their business.
b) assist entrepreneurs in starting up, growing and/or modernizing their business.
c) provide interest-free loans to small and medium sized businesses in specific business sectors
d) provide assistance in developing a strategic marketing campaign
e) all of the above are part of the role of the BDP
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
169) Important issues in new venture creation include all the following except
a) Does the entrepreneur have a good idea and the courage to give that idea a chance?
b) Is the entrepreneur prepared to meet and master the test of strategy and competitive advantage?
c) Can the entrepreneur identify a market niche that is being missed by other established firms?
d) Can the entrepreneur generate first-mover advantage?
e) Can the entrepreneur find appropriate safety nets to protect the business from marketplace challenges?
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
170) A first-mover advantage comes from ___.
a) being first to earn a profit
b) being first to exploit a niche or enter a market
c) being first to relocate key business operations
d) being first to outsource non-core business activities
e) being first within the industry to embrace social responsibility
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
171) Which of the following are the three stages common to the life cycles of entrepreneurships?
a) birth stage, maturity state, and IPO stage.
b) birth stage, breakthrough stage, and IPO stage.
c) birth stage, maturity stage, and exiting stage.
d) birth stage, breakthrough stage, and maturity stage.
e) breakthrough stage, maturity stage, and IPO stage.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
172) According to the life cycle of entrepreneurial firms, the birth stage signifies the stage in which the
a) entrepreneur recognizes a niche in the market and formulates an idea to take advantage of it.
b) entrepreneur experiences the advantages of market success and financial stability.
c) entrepreneur faces the continuing management challenge of remaining competitive in a changing environment.
d) business model begins to work well, growth is experienced, and the complexity of managing the business operation expands significantly.
e) entrepreneur struggles to get the new venture established and survive long enough to test the viability of the underlying business model in the marketplace.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
173) According to the life cycle of entrepreneurial firms, the breakthrough stage signifies the stage in which the
a) entrepreneur recognizes a niche in the market and formulates an idea to take advantage of it.
b) entrepreneur experiences the advantages of market success and financial stability.
c) entrepreneur faces the continuing management challenge of remaining competitive in a changing environment.
d) business model begins to work well, growth is experienced, and the complexity of managing the business operation expands significantly.
e) entrepreneur struggles to get the new venture established and survive long enough to test the viability of the underlying business model in the marketplace.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
174) According to the life cycle of entrepreneurial firms, the maturity stage signifies the stage in which the
a) entrepreneur struggles to get the new venture established and survive long enough to test the viability of the underlying business model in the marketplace.
b) business model begins to work well, growth is experienced, and the complexity of managing the business operation expands significantly.
c) entrepreneur recognizes a niche in the market and formulates an idea to take advantage of it.
d) entrepreneur experiences the advantages of market success and financial stability while facing the continuing management challenge of remaining competitive in a changing environment.
e) entrepreneur formulates a plan for making a profit by generating revenues that are greater than the costs of doing business.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
175) Activities that focus on working on finances, becoming profitable, and growing occur in the ___ stage of the life cycle of entrepreneurial firms.
a) birth
b) breakthrough
c) growth
d) maturity
e) decline
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
176) In the ___stage of the life cycle of entrepreneurial firms, the entrepreneur experiences the advantages of market success and financial stability, while also facing continuing challenges of meeting the needs for professional management skills.
a) birth
b) breakthrough
c) growth
d) maturity
e) decline
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
177) Activities that focus on refining the strategy, continuing growth, and managing for success occur in the ___ stage of the life cycle of entrepreneurial firms.
a) birth
b) breakthrough
c) growth
d) maturity
e) decline
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
178) Reece is an entrepreneur and at the current stage in which the company is, Reece’s main concerns if there will be enough customers and money to remain in business. Based on this information, Reece’s company is in the
a) birth stage.
b) breakthrough stage.
c) maturity stage.
d) stagnant stage.
e) failure stage.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
179) ___ leadership brings the venture into being and sees it through the early stages of an enterprise.
a) Transactional
b) Entrepreneurial
c) Bureaucratic
d) Transformational
e) Democratic
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
180) ___ leadership manages and leads the venture into maturity as an ever-evolving and still-growing enterprise.
a) Strategic
b) Entrepreneurial
c) Bureaucratic
d) Transformational
e) Democratic
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
181) A(n) ___ plan describes the direction for a new business and the financing needed to operate it.
a) succession
b) business
c) structural
d) operational
e) feasibility
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
182) A(n) ___ describes the direction for a new business and the financing needed to operate it.
a) competitor analysis
b) business plan
c) operating plan
d) investment strategy
e) balance sheet
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
183) Which of the following items is not usually included in a business plan?
a) Executive summary
b) Company description
c) Marketing strategy
d) Staffing description
e) Resource plan
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
184) A business plan should include all the following items except
a) overview of business purpose and highlight of key elements of the plan.
b) description of the organization’s decision-making and communications systems.
c) nature of the industry, including economic trends, important legal or regulatory issues, and potential risks.
d) product characteristics, distribution, promotion, pricing, and market research.
e) amount of funds needed to run the business, amount available, and amount requested from new sources.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
185) In a business plan, the overview of the business purpose and the business model for making money is contained in the ___.
a) market strategy
b) market description
c) company description
d) industry analysis
e) executive summary
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
186) In a standard business plan, an organization’s mission, ownership details, and, legal forms are typically included in the ________.
a) market strategy
b) executive summary
c) company description
d) industry analysis
e) staffing description
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
187) In a business plan, the marketing strategy contains the
a) description of the size of market, competitor strengths and weaknesses, and five-year sales goals.
b) overview of the business purpose and the business model for making money.
c) description of the management and staffing skills needed and available, compensation, and human resource systems.
d) details of the product characteristics, distribution, promotion, pricing, and market research.
e) description of cash flow projections for one to five years, break-even points, and phased investment capital.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
188) In a business plan, the operations description contains the
a) description of cash flow projections for one to five years, break-even points, and phased investment capital.
b) details of the product characteristics, distribution, promotion, pricing, and market research.
c) manufacturing or service methods, supplies and suppliers, and control procedures used.
d) description of the management and staffing skills needed and available, compensation, and human resource systems.
e) overview of the business purpose and the business model for making money.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
189) In a business plan, ___ detail the amount of funds needed to run the business, amount available, and amount requested from new sources.
a) capital needs
b) milestones
c) performance needs
d) liability needs
e) capability needs
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
190) In a business plan, the ___ provides details of cash flow estimate for one to five years, break-even points, and phased investment capital.
a) staffing description
b) financial projection
c) capital need
d) milestones
e) operations description
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
191) Before starting on a new venture, Kingsley writes down the specifics of the new venture ideas, the amount of capital needed and different options on how to obtain and repay the capital, and future business operations and strategies. Kingsley is preparing a ________.
a) succession plan
b) business portfolio
c) business plan
d) competitive analysis
e) mission statement
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
192) Which of the following forms of ownership holds the business owner or owners personally liable for business debts and claims?
a) sole proprietorship
b) corporation
c) limited liability partnership
d) benefit corporation
e) limited liability corporation
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
193) A ___ consists of business partners who agree on the contribution of resources and skills to the new venture, and on the sharing of profits, losses, and management responsibilities.
a) professional partnership
b) general partnership
c) limited partnership
d) unlimited partnership
e) limited liability partnership
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
194) A ___ consists of a general partner and one or more “limited” partners who do not participate in day-to-day management of the business.
a) professional partnership
b) general partnership
c) limited partnership
d) unlimited partnership
e) limited liability partnership
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
195) A ___ limits the liability of one partner for any negligence committed by another partner.
a) professional partnership
b) general partnership
c) limited partnership
d) unlimited partnership
e) limited liability partnership
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
196) A ___, common among professionals such as accountants and attorneys, limits the liability of one partner for the negligence of another.
a) general partnership
b) sole proprietorship
c) limited partnership
d) limited liability corporation
e) limited liability partnership
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
197) A ___ is a legal entity that exists separate from its owners, protects the owners from personal liability, and gives the firm a life of its own beyond that of its owners.
a) sole proprietorship
b) partnership
c) corporation
d) limited liability partnership
e) angel investor
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
198) A ___ is a legal entity that exists separate from its owners, protects the owners from personal liability, and whose goal is to provide a benefit to society and profits to its owners.
a) public corporation
b) limited liability corporation
c) private corporation
d) cooperative
e) benefit corporation
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
199) A ___ is a hybrid business form combining advantages of the sole proprietorship, partnership, and corporation.
a) sole proprietorship
b) partnership
c) corporation
d) limited liability corporation
e) venture capitalist
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
200) Casey has a passion for designing clothes and decides to open a clothing store. The needed start-up capital is raised by taking personal loans from family and friends, for which Casey will pay interest each year. Casey’s business is an example of a ___.
a) proprietorship
b) corporation
c) limited liability partnership
d) general partnership
e) limited liability corporation
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
201) In the context of business ownerships, a ___ is established when two or more people agree to contribute resources to start and operate a business together.
a) corporation
b) limited liability corporation
c) partnership
d) social enterprise
e) business incubator
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
202) Erik and Elsa own a pet grooming business. Erik manages the financial responsibilities while Elsa manages the customers. This is an example of a ___.
a) sole proprietorship
b) general partnership
c) corporation
d) limited liability partnership
e) limited liability corporation
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
203) “Sheng’s Designs” is an architectural firm owned by Sheng and four outside investors. Each of the four investors provided an initial investment of $20,000. Sheng is the only one of the group who handles the day-to-day business management of the firm. In it’s first year of operations the firm reported a loss of $200,000. Sheng will be taking a loss of $120,000. This is an example of a ___.
a) limited partnership
b) general partnership
c) corporation
d) limited liability corporation
e) sole proprietorship
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
204) Which of the following is true about a corporation?
a) It combines the advantages of the other forms—sole proprietorship, partnership, and limited liability corporation.
b) Only a for-profit business can be registered as a corporation.
c) It exists separately from its owners.
d) For tax purposes, it functions as a partnership.
e) For liability purposes, it functions as a partnership.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
205) Which of the following is true of a limited liability corporation?
a) It is commonly identified by the “Ltd.” designation in a name.
b) It consists of a general partner and one or more “limited” partners who do not participate in day-to-day business management.
c) The business owner is personally liable for business debts and claims.
d) For tax purposes, it functions as a sole proprietorship in the case of a single owner.
e) It involves the owners going into debt by borrowing money from another person, bank, or financial institution.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
206) For liability purposes, a limited liability corporation functions like a ___ and protects the assets of owners against claims made against the company.
a) sole proprietor
b) corporation
c) general partnership
d) limited partnership
e) limited liability partnership
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
207) Three friends have opened a new café each of whom have contributed $1,500 toward start-up costs and have agreed on dividing profits and losses equally. The legal structure for the company can best be described as a
a) proprietorship.
b) partnership.
c) trade alliance.
d) corporation.
e) benefit corporation.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
208) The major source(s) of outside financing for an entrepreneurial start-up are ___.
a) debt financing and equity financing
b) governmental grants
c) foundation grants
d) alternatives a and b
e) alternatives a and c
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
209) ___ involves obtaining capital from another person, bank, or financial institution with agreed upon terms for repayment.
a) Debt financing
b) Risk management
c) Securitization
d) Debt consolidation
e) Equity financing
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
210) ___ involves obtaining capital by selling shares in the business to outside investors in return for their investments.
a) Debt consolidation
b) Equity financing
c) Debt financing
d) Securitization
e) Risk management
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
211) ___ facilitates large investments in new ventures in return for an equity stake in the business.
a) State-directed financing
b) Entrepreneurial capitalism
c) Venture capitalism
d) Debt financing
e) Oligarchic capitalism
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
212) ___ tend to focus on relatively large investments and they usually take a management role to grow the business and add value as soon as possible.
a) Entrepreneurial support systems
b) Investment bankers
c) Brokerage firms
d) Venture capitalists
e) Pension funds
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
213) Vancouver-based Willowest, with manufacturing facilities in China, has become a recognized supplier of hospitality furnishing, including upholstered seating, linens, towels, and bathrobes. Consider that Shi Yu Zhang is interested in expanding the business globally but needs a large investor and is willing to offer the investor a seat on Willowest’s board of directors. What type of investor is Shi Yu looking for?
a) an angel investor
b) a silent partner
c) a financial institution
d) a venture capitalist
e) a corporate investor
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
214) When a corporation’s shares are first sold to the public and begin trading on a stock exchange, it is referred to as ___.
a) venture capitalism
b) equity financing
c) angel investing
d) an initial public offering
e) an Internet entrepreneurship
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
215) A successful ___ enhances the value of the original investments of the venture capitalist and the entrepreneur.
a) leveraged buyout
b) risky investment shift
c) equity takeover
d) initial public offering
e) employee stock ownership plan
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
216) ___ are wealthy individuals willing to invest in a new venture in return for an equity stake.
a) Limited liability partners
b) Sole proprietors
c) General partners
d) Debt financers
e) Angel investors
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
217) Which of the following statements about angel investors is/are accurate?
a) When venture capital is not available to the entrepreneur, the angel investor is a financing option.
b) Angel investors are helpful in the very early start-up stage of an entrepreneurial venture.
c) The presence of angel investors can help attract venture capital funding that might not be available otherwise.
d) all of the above
e) none of the above
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
218) Sloan needed business financing however was rejected by many financing companies. Finally, one of Sloan’s wealthy friends became interested in the business and gave Sloan a substantial amount for a share in the venture. Which of the following best represents I Sloan’s source of finance?
a) initial public offering
b) revolving credit
c) debt financing
d) angel investor
e) loan shark
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
219) Which of the following is not a crowdfunding model that is legally available in Canada?
a) Reward model
b) Equity security model
c) Pre-purchase model
d) Cost model
e) Donation model
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
220) Which of the following is an advantage to raising capital through crowdfunding?
a) The amount raised must be paid back, however the terms are always more lenient than traditional debt financing.
b) The amount raised need never be paid back as crowdfunding is a type of equity financing.
c) Because crowdfunding is a form of venture capitalization, the business owner will lose an ownership share in the business.
d) Crowdfunding does not put the potential investor at risk of exposure to fraudsters and scam artists.
e) The amount raised must be paid back, however interest may not be charged on the amount raised.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
Question type: Essay
221) List and briefly describe the attitudes and personal interests of entrepreneurs.
• Internal locus of control: Entrepreneurs believe that they are in control of their own destiny; they are self-directing and like autonomy.
• High energy level: Entrepreneurs are persistent, hardworking, and willing to exert extraordinary efforts to succeed.
• High need for achievement: Entrepreneurs are motivated to accomplish challenging goals; they thrive on performance feedback.
• Tolerance for ambiguity: Entrepreneurs are risk takers; they tolerate situations with high degrees of uncertainty.
• Self-confidence: Entrepreneurs feel competent, believe in themselves, and are willing to make decisions.
• Passion and action orientation: Entrepreneurs try to act ahead of problems; they want to get things done and not waste valuable time.
• Self-reliance and desire for independence: Entrepreneurs want independence; they are self-reliant; they want to be their own bosses, not work for others.
• Flexibility: Entrepreneurs are willing to admit problems and errors, and are willing to change a course of action when plans aren’t working.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
222) Describe the key personal traits and characteristics of entrepreneurs. Which three of these traits and characteristics do you think are the most important for entrepreneurial success and why?
Internal locus of control – entrepreneurs believe that they control their own destiny; they are self-directing and like autonomy.
High energy level – entrepreneurs are persistent, hardworking, and willing to exert extraordinary efforts to succeed.
High need for achievement – entrepreneurs are motivated to act individually to accomplish challenging goals; they thrive on performance feedback.
Tolerance for ambiguity – entrepreneurs are risk takers; they tolerate situations with high degrees of uncertainty.
Self-confidence – entrepreneurs feel competent, believe in themselves, and are willing to make decisions.
Passion and action orientation – entrepreneurs try to act ahead of problems; they want to get things done and not waste valuable time.
Self-reliance and desire for independence – entrepreneurs want independence; they are self-reliant; they want to be their own boss, not work for others.
Flexibility – entrepreneurs are willing to admit problems and errors, and to change a course of action when plans are not working.
Each student should identify the two or three personal traits characteristics they think is most important and provide appropriate supporting reasons.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Evaluation
Difficulty: Hard
AACSB: Analytic
223) Briefly describe the backgrounds and experiences that tend to distinguish entrepreneurs from other people.
Entrepreneurs tend to have parents who were entrepreneurs or self-employed.
Entrepreneurs tend to be raised in families that encourage responsibility, initiative, and independence.
Entrepreneurs often try more than one business venture.
Entrepreneurs tend to have prior career or personal experience in the business area or industry in which they develop an entrepreneurial venture.
Most entrepreneurs start their businesses between the ages of 22 and 45; however, age is no barrier.
Entrepreneurs have strong interests in creative production and enterprise control.
Entrepreneurs seek independence and the sense of mastery that comes with success.
Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs.
Section Reference 6.1: The Nature of Entrepreneurship
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
224) Your textbook provided a number of reasons for why small businesses often fail. List and describe three (3) of the reasons, and then briefly discuss what a small business owner can do to mitigate that reason for failure.
One set of reasons for small business failure include lack of experience, lack of expertise, lack of strategy and strategic leadership, poor financial control, growing too fast, insufficient commitment, and ethical failure.
The second set of reasons is that provided by Canadian business magazine. Those reasons include inexperience, no value proposition, no “x10”, relying on investors rather than customers, bad partners, copycat firms, premature scaling, the economy, not getting outside and ARPU and COGS. A brief explanation for each should be provided by the student as well.
The student may present a discussion on business incubators and small business development centres, however if so the discussion must be linked to the specific reasons for failure presented. are resources that entrepreneurs can draw and which can help them to avert failure. A business incubator is a special facility that offers space, a variety of shared administrative services, and management advice to help small businesses get started. Small business development centres offer guidance to entrepreneurs and small business owners –– actual and prospective ⎯ in how to set up and successfully run a business operation.
An example answer may be ‘poor financial control’ which can be described as the owner not knowing the business’s cash position on a timely basis or is unable to keep track of revenues and expenses. A possible solution to the problem might be to either hire a qualified accountant, either on a full-time or part-time basis or take basic accounting and/or financial management courses.
Learning Objective 6.2: Describe how small businesses get started and common problems they face.
Section Reference 6.2: Entrepreneurship and Small Business
Bloom’s: Evaluation
Difficulty: Hard
AACSB: Analytic
225) Briefly describe what a business plan is and the various sections that should be included in a complete business plan.
• Executive summary—overview of the business purpose and the business model for making money.
• Industry analysis—nature of the industry, including economic trends, important legal or regulatory issues, and potential risks.
• Company description—mission, owners, and legal form.
• Products and services description—major goods or services, with competitive uniqueness.
• Market description—size of market, competitor strengths and weaknesses, five-year sales goals.
• Marketing strategy—product characteristics, distribution, promotion, pricing, and market research.
• Operations description—manufacturing or service methods, supplies and suppliers, and control procedures.
• Staffing description—management and staffing skills needed and available, compensation, and human resource systems.
• Financial projection—cash flow projections for one to five years, break-even points, and phased investment capital.
• Capital needs—amount of funds needed to run the business, amount available, and amount requested from new sources.
• Milestones—a timetable of dates showing when key stages of the new venture will be completed.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
226) There are a number of reasons why one needs a business plan. List and briefly describe four of the reasons that were presented in your textbook.
- It forces you to be clear about your business model—how your business will make money.
- It makes you identify and confront the potential strengths and weaknesses of your proposed business.
- It makes you examine the market potential for your business’s products or services.
- It makes you examine the strengths and weaknesses of the competitors for your proposed business.
- It helps you clarify the mission and key directions for the business, helping you to stay focused.
- It helps you determine how much money will be needed to launch and operate the business.
- It helps you communicate more confidently and credibly with potential lenders and investors.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
227) Describe the life cycle of entrepreneurial firms and the management challenges that occur at each stage.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
228) Briefly describe what a business partnership is, including the various types of business partnerships and the advantages and disadvantages of this form of business organization.
Advantages include: easier to form than a corporation; flexibility in that there are different forms of partnerships to suit individual needs; low cost to form
Disadvantages include: limited life as the partnership ceases to exist when a partner leaves or a new partner is taken on; a partnership agreement can be a costly document to create and update; depending on the form of partnership the partners may be liable for debts of the partnership and actions of the other partners.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
Solution:
229) Many businesses are structured in the form of sole proprietorships. What is a sole proprietorship? Provide an example of a business that would commonly be operated as a sole proprietorship. What are the advantages and disadvantages of operating as a sole proprietorship?
Example: A convenience store, a boutique
Advantages:
Ease of start/end, you are your own boss, Retain all profit, No special taxes
Disadvantages:
Unlimited liability but limited financial resources, Overwhelming time commitment, Limited growth and lifespan
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
230) Family businesses represent the largest percentage of businesses operating worldwide. In the North American economy family businesses employ millions of employees and generate more than a trillion dollars of sales each year. From the perspective of shareholders in a family business, what is an advantage of this kind of company? Also, identify potential disadvantages for shareholders in a family business.
Disadvantages include:
Family business feud may occur when family members have major disagreements over how the business should be run.
Complex emotional issues between personal and business issues in family businesses may make decision-making around management succession/control issues a lot more challenging.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
231) What is a corporation? What advantages does a corporate form offer over other forms of business organization?
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
232) Describe what equity financing is and what some of the advantages and disadvantages are of this form of capital.
Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures.
Section Reference 6.3: New Venture Creation
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
Solution:
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Management Canada 5e | Complete Test Bank
By John R. Schermerhorn Jr