Test Bank | Chapter 7 Managing Entrepreneurial Ventures – 11th Ed

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Fundamentals of Management, 11e (Robbins)

Chapter 7 Managing Entrepreneurial Ventures

1) Yanis noticed that the beach where he lives has become overrun with trash, and he has developed a machine that will "walk" the beach to pick up the trash. We could classify Yanis as a ________.

A) social engineer

B) social entrepreneur

C) profiteer

D) developer

Diff: 2

AACSB: Application of knowledge

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Application

2) Patel launched a lawn care business, sold it after two years, started a transportation business to serve those in his community who do not drive, sold it to one of his employees, and started a micro-loan business, which he plans to sell within five years. We could classify Patel as a(n) ________ entrepreneur.

A) necessity

B) opportunity

C) serial

D) portfolio

Diff: 2

AACSB: Application of knowledge

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Application

3) Ramon lost his job during the Great Recession. After taking inventory of his assets and skill set, he launched a small engine repair service from his garage. We could classify Ramon as a(n) ________ entrepreneur.

A) necessity

B) opportunity

C) serial

D) portfolio

Diff: 2

AACSB: Application of knowledge

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Application

4) An entrepreneurial venture and a small business ________.

A) are superficially similar

B) are identical

C) have nothing in common

D) are impossible to tell apart

Diff: 2

AACSB: Analytical thinking

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Analytical

5) One key difference between an entrepreneurial venture and a small business is that the entrepreneurial venture focuses on ________.

A) productivity

B) efficiency

C) quality

D) innovation

Diff: 2

AACSB: Analytical thinking

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Analytical

6) When it was first starting out, the Viking Range company qualified as an entrepreneurial organization because its products were ________.

A) high in quality

B) expensive

C) innovative and different

D) loved by serious cooks

Diff: 2

AACSB: Application of knowledge

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Application

7) Besides being innovative in some way, a second defining characteristic of an entrepreneurial venture is that it is ________.

A) small in size

B) focused on growth

C) dedicated to quality

D) original and creative

Diff: 2

AACSB: Analytical thinking

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Analytical

8) An "accidental entrepreneur" is someone who became an entrepreneur because he or she ________.

A) always had a dream to start a company

B) lost his or her job

C) identified a great opportunity

D) quit his or her job

Diff: 2

AACSB: Analytical thinking

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Analytical

9) In the wake of high unemployment, statistics show that entrepreneurship is ________.

A) low

B) high

C) falling

D) neither rising nor falling

Diff: 2

AACSB: Analytical thinking

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Analytical

10) After five years, ________ of entrepreneurial ventures are still in business.

A) fewer than half

B) about one-third

C) more than three-fourths

D) about two-thirds

Diff: 2

AACSB: Analytical thinking

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Analytical

11) In most cases, the first step in the initial (pre-planning) phase of the entrepreneurial process is this.

A) planning the venture

B) identifying potential opportunities

C) exploring finance options

D) researching the venture's feasibility

Diff: 2

AACSB: Analytical thinking

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Analytical

12) Which one of the following is typically involved in exploring the entrepreneurial context of a new venture?

A) researching the venture's feasibility

B) uncovering business ideas

C) exploring finance options

D) pinpointing potential competitive advantages

Diff: 2

AACSB: Analytical thinking

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Analytical

13) Uncovering business ideas, looking at competitors, and exploring financing options are part of this phase of the entrepreneurial process.

A) identifying competitive advantage

B) exploring business forms

C) researching the venture's feasibility

D) identifying potential opportunities

Diff: 2

AACSB: Analytical thinking

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Analytical

14) ________ is an important part of researching a firm's feasibility.

A) Exploring finance options

B) Researching the legal business forms

C) Pinpointing potential competitive advantages

D) Identifying potential opportunities

Diff: 2

AACSB: Analytical thinking

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Analytical

15) Early in the planning phase of an entrepreneurial venture, ________ is accomplished.

A) selecting a legal business organization form

B) stating a mission

C) selecting an organizational design

D) performing a copyright search

Diff: 2

AACSB: Analytical thinking

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Analytical

16) During the organizing phase of an entrepreneurial venture, an entrepreneur ________.

A) states a mission

B) selects a legal business organization form

C) creates a business plan

D) selects an organizational design

Diff: 2

AACSB: Analytical thinking

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Analytical

17) After the startup has been planned and organized, the next step is ________.

A) prototyping the product or service

B) creating a top management team

C) financing the venture

D) launching the venture

Diff: 2

AACSB: Analytical thinking

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Analytical

18) During the launching of a venture, which one of the following is accomplished?

A) creating a top management team

B) establishing a mission

C) setting goals and strategies

D) patenting the product or service

Diff: 2

AACSB: Analytical thinking

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Analytical

19) Once an entrepreneurial venture is actually up and running, the entrepreneur switches to a ________ role.

A) managerial

B) ceremonial figurehead

C) background

D) subordinating

Diff: 2

AACSB: Analytical thinking

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Analytical

20) Entrepreneurs need not be as concerned about ethics as large businesses because they are unlikely to attract media attention.

Diff: 1

AACSB: Analytical thinking

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Analytical

21) Every self-employed person is an entrepreneur.

Diff: 1

AACSB: Analytical thinking

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Analytical

22) Entrepreneurship is the process of starting a new business to respond to an opportunity in the market.

Diff: 1

AACSB: Analytical thinking

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Analytical

23) An entrepreneurial venture is the same as a small business.

Diff: 2

AACSB: Analytical thinking

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Analytical

24) An entrepreneurial venture is much more likely to change an industry than a small business.

Diff: 2

AACSB: Analytical thinking

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Analytical

25) One of the first things an entrepreneur does is look for potential opportunities in the marketplace.

Diff: 2

AACSB: Analytical thinking

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Analytical

26) Legal issues for an entrepreneurial organization are typically addressed after the organization is up and running.

Diff: 2

AACSB: Analytical thinking

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Analytical

27) Once the entrepreneurial organization is up and running, the entrepreneur becomes a manager.

Diff: 2

AACSB: Analytical thinking

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Analytical

28) In a short essay, explain what an entrepreneurial venture is and how it differs from a small business.

A small business, on the other hand, is an organization that seeks to make a profit but is not particularly innovative or looking for growth. Growth is the final characteristic of an entrepreneurial venture. Though it may start small, the venture is always looking for its innovative edge to create a "home run" product, causing it to experience dramatic growth.

Diff: 3

AACSB: Written and oral communication

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Critical thinking

29) In a short essay, explain why Gilson Boards qualifies as an entrepreneurial venture.

Diff: 3

AACSB: Written and oral communication

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Critical thinking

30) In a short essay, describe the steps an entrepreneur typically takes in deciding whether to begin an entrepreneurial venture.

Diff: 3

AACSB: Written and oral communication

LO: 7.1: Define entrepreneurship and explain why it's important.

Question Category: Critical thinking

31) According to Peter Drucker, which one of the following is a source of opportunities for entrepreneurs?

A) changes in interest rates

B) changes in unemployment

C) changes in perception

D) changes in GDP

Diff: 2

AACSB: Analytical thinking

LO: 7.2: Explain what entrepreneurs do in the planning process for new ventures.

Question Category: Analytical

32) Samovar has an idea for a new business. He is currently engaged in identifying potential competitors to determine what they offer, how they market their products, and what their competitive advantages may be. Samovar is ________.

A) conducting a SWOT analysis

B) generating ideas

C) applying for financing

D) conducting a feasibility study

Diff: 2

AACSB: Application of knowledge

LO: 7.2: Explain what entrepreneurs do in the planning process for new ventures.

Question Category: Application

33) A(n) ________ is the simplest and briefest type of business plan.

A) synopsis-type plan

B) full business plan

C) summary business plan

D) executive summary

Diff: 2

AACSB: Analytical thinking

LO: 7.2: Explain what entrepreneurs do in the planning process for new ventures.

Question Category: Analytical

34) The ________ of a business plan should include the mission statement and primary goals of the organization as well as a brief description of the product or service.

A) summary business plan

B) executive summary

C) synopsis-type plan

D) full business plan

Diff: 2

AACSB: Analytical thinking

LO: 7.2: Explain what entrepreneurs do in the planning process for new ventures.

Question Category: Analytical

35) Information about the size of the target market will be found in the ________ in the business plan.

A) analysis of opportunity

B) description of the business

C) executive summary

D) supporting documentation

Diff: 2

LO: 7.2: Explain what entrepreneurs do in the planning process for new ventures.

Question Category: Analytical

36) This is the most complete and comprehensive type of business plan.

A) executive summary

B) full business plan

C) summary business plan

D) synopsis-type plan

Diff: 2

AACSB: Analytical thinking

LO: 7.2: Explain what entrepreneurs do in the planning process for new ventures.

Question Category: Analytical

37) A brief mission statement of an entrepreneurial venture would be included in this section of a full business plan.

A) analysis of opportunity

B) description of the business

C) executive summary

D) analysis of the context

Diff: 2

AACSB: Analytical thinking

LO: 7.2: Explain what entrepreneurs do in the planning process for new ventures.

Question Category: Analytical

38) This section of a full business plan would include possible income statements for the next three years.

A) financial data and projections

B) executive summary

C) analysis of opportunity

D) description of the business

Diff: 2

AACSB: Analytical thinking

LO: 7.2: Explain what entrepreneurs do in the planning process for new ventures.

Question Category: Analytical

39) Identification of the organization's key personnel would be included in this section of a full business plan.

A) analysis of the context

B) analysis of opportunity

C) description of the business

D) executive summary

Diff: 2

AACSB: Analytical thinking

LO: 7.2: Explain what entrepreneurs do in the planning process for new ventures.

Question Category: Analytical

40) This section of a full business plan would include a description of the demographics of the target market for the organization.

A) description of the business

B) financial data and projections

C) executive summary

D) analysis of opportunity

Diff: 2

AACSB: Analytical thinking

LO: 7.2: Explain what entrepreneurs do in the planning process for new ventures.

Question Category: Analytical

41) This section of a full business plan would include an assessment of the industry of the venture and how it fits into the overall economic climate.

A) analysis of context

B) description of the business

C) financial data and projections

D) analysis of opportunity

Diff: 2

AACSB: Analytical thinking

LO: 7.2: Explain what entrepreneurs do in the planning process for new ventures.

Question Category: Analytical

42) Information about revenues and expenses for the first three years of the new venture are found in the supporting documentation section of the full business plan.

Diff: 2

AACSB: Analytical thinking

LO: 7.2: Explain what entrepreneurs do in the planning process for new ventures.

Question Category: Analytical

43) An executive summary is the most complete kind of business plan.

Diff: 2

AACSB: Analytical thinking

LO: 7.2: Explain what entrepreneurs do in the planning process for new ventures.

Question Category: Analytical

44) A context analysis sizes up the target market and evaluates possible competitors to the company.

Diff: 2

AACSB: Analytical thinking

LO: 7.2: Explain what entrepreneurs do in the planning process for new ventures.

Question Category: Analytical

45) An entrepreneurial venture's advertising strategy would be included in the description of the business section of a full business plan.

Diff: 2

AACSB: Analytical thinking

LO: 7.2: Explain what entrepreneurs do in the planning process for new ventures.

Question Category: Analytical

46) Since it is impossible to predict the future, projected income estimates are not part of a good business plan.

Diff: 2

AACSB: Analytical thinking

LO: 7.2: Explain what entrepreneurs do in the planning process for new ventures.

Question Category: Analytical

47) In a short essay, describe the steps an entrepreneur typically takes in planning and organizing an entrepreneurial venture.

Diff: 3

AACSB: Written and oral communication

LO: 7.2: Explain what entrepreneurs do in the planning process for new ventures.

Question Category: Critical thinking

48) In a short essay, describe the contents of the executive summary part of a full business plan.

Diff: 3

AACSB: Written and oral communication

LO: 7.2: Explain what entrepreneurs do in the planning process for new ventures.

Question Category: Critical thinking

49) In a short essay, describe the contents of the business description part of a full business plan.

Diff: 3

AACSB: Written and oral communication

LO: 7.2: Explain what entrepreneurs do in the planning process for new ventures.

Question Category: Critical thinking

50) In a short essay, describe the factors that determine whether an entrepreneurial venture will be mechanistic or organic in structure.

An organic structure works better when the organization is focused on being creative and making unique, innovative products. An innovative organization needs the freedom that a less centralized, less formal, more organic structure provides.

Diff: 3

AACSB: Analytical thinking

LO: 7.2: Explain what entrepreneurs do in the planning process for new ventures.

Question Category: Critical thinking

51) Marva wants to be in control of her destiny. If she were to launch her own business, she would be most likely to prefer the ________ form of ownership.

A) Sole proprietorship

B) LLP

C) C corporation

D) S corporation

Diff: 1

AACSB: Application of knowledge

LO: 7.3: Describe the six legal forms of organization and the choice of appropriate organizational structure.

Question Category: Application

52) Granval is concerned about the risks involved in launching a new business, especially the financial risks. If he chooses the sole proprietorship form of ownership, his liability is ________.

A) shared with his creditors

B) shared with his investors

C) limited to the amount of his taxes

D) unlimited

Diff: 2

AACSB: Application of knowledge

LO: 7.3: Describe the six legal forms of organization and the choice of appropriate organizational structure.

Question Category: Application

53) Granval thinks a partnership will reduce his personal financial responsibility. This is true only if ________.

A) Granval is not the general partner

B) the other partners agree to it

C) the articles of incorporation stipulate the percentages of liability of each partner

D) there are no more than 10 partners

Diff: 2

AACSB: Application of knowledge

LO: 7.3: Describe the six legal forms of organization and the choice of appropriate organizational structure.

Question Category: Application

54) Belor has been invited to become a limited partner in a new business. Belor feels that if he is putting up some of the money to launch the business, he should have some say in how it is managed. This can happen only if ________.

A) Belor provides more than 50% of the capital

B) Belor becomes a general partner

C) there are fewer than 10 partners

D) the partnership agreement names Belor as CEO.

Diff: 3

AACSB: Application of knowledge

LO: 7.3: Describe the six legal forms of organization and the choice of appropriate organizational structure.

Question Category: Application

55) Tamaya is ready to launch her new business but needs more money. Although she has a high credit rating, she does not want to "max out" all her credit cards. You advise her to select ________.

A) an S corporation because she does not expect to ever have more than 75 partners

B) a sole proprietorship so she does not have to share the profits with anyone

C) a limited liability partnership so she can share the burden of financing the new business

D) a C corporation so she can sell stock immediately

Diff: 3

AACSB: Application of knowledge

LO: 7.3: Describe the six legal forms of organization and the choice of appropriate organizational structure.

Question Category: Application

56) One of the most important factors influencing the organizational success of a new venture is ________.

A) recruitment

B) retention

C) compensation

D) culture

Diff: 2

AACSB: Analytical thinking

LO: 7.3: Describe the six legal forms of organization and the choice of appropriate organizational structure.

Question Category: Analytical

57) The form of legal ownership that an entrepreneur chooses for a venture primarily affects these concerns.

A) profit and productivity

B) taxes and liability

C) liability and planning

D) taxes and revenue

Diff: 2

AACSB: Analytical thinking

LO: 7.3: Describe the six legal forms of organization and the choice of appropriate organizational structure.

Question Category: Analytical

58) Entrepreneurs should take great care when choosing a form of legal ownership because once one form is chosen, it is ________ to change it to another form.

A) impossible

B) very difficult

C) easy

D) rather embarrassing

Diff: 2

AACSB: Analytical thinking

LO: 7.3: Describe the six legal forms of organization and the choice of appropriate organizational structure.

Question Category: Analytical

59) Which one of the following is NOT a way to organize an entrepreneurial venture?

A) partnership

B) corporation

C) cooperative association

D) sole proprietorship

Diff: 2

AACSB: Analytical thinking

LO: 7.3: Describe the six legal forms of organization and the choice of appropriate organizational structure.

Question Category: Analytical

60) Many small entrepreneurial firms don't have a deliberately planned organizational structure because ________.

A) they are inefficient

B) small firms never need structure

C) the IRS prevents them from having a structure

D) one person does "everything"

Diff: 2

AACSB: Analytical thinking

LO: 7.3: Describe the six legal forms of organization and the choice of appropriate organizational structure.

Question Category: Analytical

61) In general, an entrepreneurial venture that sees ________ as its competitive advantage would tend to be ________ in structure.

A) efficiency; organic

B) efficiency; informal

C) innovation; mechanistic

D) innovation; informal

Diff: 2

AACSB: Analytical thinking

LO: 7.3: Describe the six legal forms of organization and the choice of appropriate organizational structure.

Question Category: Analytical

62) An entrepreneurial venture whose goal is to create humorous video games would be likely to be ________.

A) very organic in structure

B) highly centralized

C) fairly mechanistic in structure

D) very mechanist in structure

Diff: 2

AACSB: Analytical thinking

LO: 7.3: Describe the six legal forms of organization and the choice of appropriate organizational structure.

Question Category: Analytical

63) When hiring, entrepreneurs are more likely to make sure that these two elements are a good match than traditional HRM managers.

A) job skills and organizational needs

B) job qualifications and organizational requirements

C) formal job training and organizational requirements

D) values and organizational culture

Diff: 2

AACSB: Analytical thinking

LO: 7.3: Describe the six legal forms of organization and the choice of appropriate organizational structure.

Question Category: Analytical

64) At an entrepreneurial organization, job candidates are more likely to hear about ________ than they will at conventional organizations.

A) benefits

B) monetary compensation

C) advancement through the ranks

D) learning opportunities

Diff: 2

LO: 7.3: Describe the six legal forms of organization and the choice of appropriate organizational structure.

Question Category: Analytical

65) In an S corporation, dividends are taxed twice, once at the corporate level then again at the personal level when dividends are distributed to the owners.

Diff: 2

AACSB: Analytical thinking

LO: 7.3: Describe the six legal forms of organization and the choice of appropriate organizational structure.

Question Category: Analytical

66) A limited liability company can have no more than 75 shareholders.

Diff: 2

AACSB: Analytical thinking

LO: 7.3: Describe the six legal forms of organization and the choice of appropriate organizational structure.

Question Category: Analytical

67) The main problem with a C corporation is that it must disband when the founder dies.

Diff: 2

AACSB: Analytical thinking

LO: 7.3: Describe the six legal forms of organization and the choice of appropriate organizational structure.

Question Category: Analytical

68) In a general partnership, all partners share liability for losses in the business.

Diff: 1

AACSB: Analytical thinking

LO: 7.3: Describe the six legal forms of organization and the choice of appropriate organizational structure.

Question Category: Analytical

69) The two primary factors that affect the legal structure of an entrepreneurial organization are taxes and legal liability.

Diff: 2

AACSB: Analytical thinking

LO: 7.3: Describe the six legal forms of organization and the choice of appropriate organizational structure.

Question Category: Analytical

70) If the legal structure of an entrepreneurial venture does not turn out to be ideal, it can be changed easily once the organization is up and running.

Diff: 2

AACSB: Analytical thinking

LO: 7.3: Describe the six legal forms of organization and the choice of appropriate organizational structure.

Question Category: Analytical

71) When they first start out, most small entrepreneurial ventures have a very informal organizational structure.

Diff: 2

AACSB: Analytical thinking

LO: 7.3: Describe the six legal forms of organization and the choice of appropriate organizational structure.

Question Category: Analytical

72) An entrepreneurial venture that sees its competitive advantage in cost efficiency would tend to adopt an organic style of organizational structure.

Diff: 2

LO: 7.3: Describe the six legal forms of organization and the choice of appropriate organizational structure.

Question Category: Concept

73) Since they are often overwhelmed by the pressure of decisions, one chore that most entrepreneurs never hesitate to delegate is decision making.

Diff: 2

AACSB: Analytical thinking

LO: 7.3: Describe the six legal forms of organization and the choice of appropriate organizational structure.

Question Category: Analytical

74) When hiring, entrepreneurs typically are much less concerned with matching a candidate's values to the organization's organizational culture than traditional HRM managers.

Diff: 2

AACSB: Analytical thinking

LO: 7.3: Describe the six legal forms of organization and the choice of appropriate organizational structure.

Question Category: Analytical

75) Which one of the following statements regarding an "entrepreneurial personality" is true?

A) Finding a set of personality traits for an entrepreneurial personality is much easier than for leaders.

B) Finding a set of personality traits for an entrepreneurial personality is more difficult than for leaders.

C) There is no specific set of personality traits that all entrepreneurs share.

D) There has been research on this topic as to date.

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Critical thinking

76) Which one of the following terms does not fit the classic profile of the successful entrepreneur?

A) high energy

B) reflective

C) persistent

D) resourceful

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

77) In general, entrepreneurs tend to ________ more than the average person.

A) cut corners

B) take risks

C) avoid risks

D) avoid cutting corners

Diff: 2

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

78) A person with a proactive personality is someone who ________.

A) takes action

B) avoids taking action

C) is entrepreneurial

D) is not entrepreneurial

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

79) People who become entrepreneurs often have ________.

A) family money

B) no family money

C) family members who are entrepreneurs

D) no family members who are entrepreneurs

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

80) Perhaps the best predictor of whether or not a person will become an entrepreneur is how ________ she is.

A) proactive

B) talented

C) likeable

D) desperate

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

81) The key to the proactive personality is that a proactive person feels that he or she can ________ any environment.

A) adapt to

B) change

C) be successful in

D) be well liked in

Diff: 3

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

82) A proactive person would be most likely to say this about his or her life.

A) I feel trapped.

B) If I don't like something, I fix it.

C) If I don't like something, I learn to live with it.

D) I like to leave well enough alone.

Diff: 3

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

83) With respect to entrepreneurship, a proactive person is best described as someone who has skill in identifying ________.

A) a problem

B) trouble

C) a good idea

D) a good opportunity

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

84) In general, employee empowerment ________ motivation in employees.

A) increases

B) slightly decreases

C) strongly decreases

D) has no effect on

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

85) The typical reason for why an entrepreneur considers implementing employee empowerment in an organization is to make sure that the organization ________.

A) stays nimble and flexible

B) is profitable

C) stays small and informal

D) is efficient

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

86) Entrepreneurs who have trouble delegating authority should go through the process of empowering employees ________.

A) gradually

B) all at once

C) using a rigid timetable

D) hastily

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

87) The best way for a hesitant entrepreneur to begin the process of employee empowerment is to ________.

A) give employees complete decision-making power immediately

B) use participative decision making

C) let the employees decide how much decision-making power they will have

D) order employees to start making decisions

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

88) A leader of an entrepreneurial organization is like a jazz band leader because he or she ________.

A) controls every "note" that the performers "play"

B) wants a happy and harmonious workplace

C) has no influence over what the performers "play"

D) works to draw the "best" out of every performer

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

89) An entrepreneur's ability to be a visionary is important because visionary companies tend to ________.

A) have employees who are satisfied with their jobs

B) be larger than nonvisionary companies

C) be more successful than nonvisionary companies

D) be more organic than nonvisionary companies

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

90) A ________ type of work team has the most autonomy.

A) cross-functional

B) problem solving

C) self-directed

D) virtual

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

91) This type of work team has authority to implement the changes it recommends.

A) empowered

B) cross-functional

C) problem solving

D) self-directed

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

92) This type of work team is composed of specialists.

A) empowered

B) problem solving

C) self-directed

D) cross-functional

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

93) Most entrepreneurial ventures are successful.

Diff: 2

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Concept

94) The classic "entrepreneurial personality" is a person who is high in self-confidence, motivation, and energy.

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

95) People with proactive personalities tend to react to their environment more than trying to change their environment.

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

96) You would expect an entrepreneur who has a grand vision for the future to be more of a risk taker than an entrepreneur who is using his or her venture simply as a source of income.

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

97) The more proactive you are, the more likely you are to be an entrepreneur.

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

98) Identifying opportunity is not a trait of a person with a proactive personality.

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

99) Employee empowerment increases productivity, but decreases employee motivation.

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

100) A good way to ease into employee empowerment is to let employees share in decision making.

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

101) Employee empowerment has little effect on an organization's profits or productivity.

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

102) The leader of an entrepreneurial organization is like a marching band leader because he or she controls every note that his or her "musicians" play.

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

103) Nonvisionary entrepreneurial leaders usually outperform visionary entrepreneurial leaders.

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

104) A command-and-control leadership style works best with an entrepreneurial organization that is organized in teams.

Diff: 2

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Analytical

105) In a short essay, describe the classic entrepreneurial personality.

Diff: 3

AACSB: Analytical thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Critical thinking

106) In a short essay, explain what a proactive personality is and what its connection is to entrepreneurship.

Proactivity is important in entrepreneurship because it is an excellent predictor of who will be an entrepreneur. People with high proactivity scores tend to make good entrepreneurs.

Diff: 3

AACSB: Written and oral communication

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Critical thinking

107) In a short essay, explain how entrepreneurial you think you are.

I think I am a fairly entrepreneurial person. My main entrepreneurial strength, as I see it, is my ability to spot marketplace opportunities. I am always noticing some product or service that "needs" to be invented. For example, I currently see lots of opportunity in the soft drink market as people turn away from sugary (or artificially sweetened) drinks and move toward things like seltzer.

Diff: 3

AACSB: Reflective thinking

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Critical thinking

108) In a short essay, describe a good way for an entrepreneur to motivate his or her employees.

Diff: 3

AACSB: Written and oral communication

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Critical thinking

109) In a short essay, describe how an entrepreneur who is reluctant to empower employees might go about the process.

Diff: 3

AACSB: Written and oral communication

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Critical thinking

110) In a short essay, describe how an entrepreneur is like a jazz band leader.

A similar thing occurs with an entrepreneur who is looking to have employees who are creative and innovative. The entrepreneur can't try to orchestrate every move they make. Instead, the entrepreneur should simply put them in the best working situation possible, give them good problems to solve, and let them use their talents and skills to solve those problems.

Like a jazz band leader, the ultimate goal of an entrepreneur is to get employees to perform at the highest possible level. If he or she can get them to do this, then he or she has been successful.

Diff: 3

AACSB: Written and oral communication

LO: 7.4: Describe how entrepreneurs lead organizations.

Question Category: Critical thinking

111) An entrepreneur should ________ a plan for dealing with an economic downturn ________ any downturn occurs.

A) create; when

B) have; in place before

C) write out; after

D) think out; while

Diff: 2

AACSB: Analytical thinking

LO: 7.5: Explain how entrepreneurs control organizations for growth, downturns, and exiting the venture.

Question Category: Analytical

112) Harvesting an entrepreneurial venture occurs when the venture ________.

A) has a hit product

B) is successful

C) is sold

D) becomes profitable

Diff: 2

AACSB: Analytical thinking

LO: 7.5: Explain how entrepreneurs control organizations for growth, downturns, and exiting the venture.

Question Category: Analytical

113) To avoid problems in their personal lives, entrepreneurs need to become excellent time managers and ________.

A) treat all needs equally

B) prioritize what needs to be done

C) wait to see what needs can be ignored

D) handle all needs long before they are needed

Diff: 2

AACSB: Analytical thinking

LO: 7.5: Explain how entrepreneurs control organizations for growth, downturns, and exiting the venture.

Question Category: Analytical

114) This is one of the best ways for entrepreneurs to deal with especially difficult work-related or personal problems.

A) read self-help books

B) consult trusted employees

C) develop a network of trusted peers

D) consult relatives and family members

Diff: 2

AACSB: Analytical thinking

LO: 7.5: Explain how entrepreneurs control organizations for growth, downturns, and exiting the venture.

Question Category: Analytical

115) One of the keys that distinguishes an entrepreneurial organization from a conventional organization is the concerted emphasis on growth.

Diff: 2

AACSB: Analytical thinking

LO: 7.5: Explain how entrepreneurs control organizations for growth, downturns, and exiting the venture.

Question Category: Analytical

116) The first step in managing a downturn in an entrepreneurial business is to recognize that things are not going well.

Diff: 2

AACSB: Analytical thinking

LO: 7.5: Explain how entrepreneurs control organizations for growth, downturns, and exiting the venture.

Question Category: Analytical

117) Selling an entrepreneurial venture is always a sign of failure.

Diff: 2

AACSB: Analytical thinking

LO: 7.5: Explain how entrepreneurs control organizations for growth, downturns, and exiting the venture.

Question Category: Analytical

118) Because entrepreneurship is so time-consuming and energy-consuming, many entrepreneurs have trouble in their personal lives.

Diff: 2

AACSB: Analytical thinking

LO: 7.5: Explain how entrepreneurs control organizations for growth, downturns, and exiting the venture.

Question Category: Analytical

119) Saving money by avoiding the expense of professional advice, such as legal and accounting, is often a mistake for entrepreneurs.

Diff: 2

AACSB: Analytical thinking

LO: 7.5: Explain how entrepreneurs control organizations for growth, downturns, and exiting the venture.

Question Category: Analytical

120) It is a good idea for an entrepreneur to develop a network of trusted friends and advisors to help with problems and decisions.

Diff: 2

AACSB: Analytical thinking

LO: 7.5: Explain how entrepreneurs control organizations for growth, downturns, and exiting the venture.

Question Category: Analytical