Fundamentals of Management, 10e (Robbins)
Chapter 15a Entrepreneurship Module
1) An entrepreneurial venture and a small business ________.
A) are superficially similar
B) are identical
C) have nothing in common
2) One key difference between an entrepreneurial venture and a small business is that the
entrepreneurial venture focuses on ________.
A) productivity
B) efficiency
C) quality
3) 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
4) 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
5) 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
6) In the wake of high unemployment, statistics show that entrepreneurship is ________.
A) low
B) high
C) falling
7) After four years, ________ business.
A) 56 percent of entrepreneurial ventures are out of
B) 56 percent of entrepreneurial ventures are still in
C) 31 percent of entrepreneurial ventures are out of
8) Survival rates of entrepreneurial ventures that started in a recession are ________ those that
started in an expansion.
A) somewhat greater than
B) less than
C) about the same as
9) 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
10) Which 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
11) 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
12) This 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
13) During the first step of the planning phase of an entrepreneurial venture, this is
accomplished.
A) selecting a legal business organization form
B) stating a mission
C) selecting an organizational design
14) 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
15) 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
16) During the launching of a venture, which of the following is accomplished?
A) creating a top management team
B) establishing a mission
C) setting goals and strategy
17) Once an entrepreneurial venture is actually up and running, the entrepreneur switches to a
________ role.
A) managerial
B) ceremonial figurehead
C) background
18) This is the simplest and briefest type of business plan.
A) synopsis-type plan
B) full business plan
C) summary business plan
19) This type of business plan is a step up from the simplest type of business plan.
A) summary business plan
B) executive summary
C) synopsis-type plan
20) This type of business plan is a step down from the most complete type of business plan.
A) summary business plan
B) full business plan
C) executive summary
21) This is the most complete and comprehensive type of business plan.
A) executive summary
B) full business plan
C) summary business plan
22) 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
23) 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
24) 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
25) 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
26) 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
27) 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
28) 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
29) Which of the following is NOT a way to organize an entrepreneurial venture?
A) partnership
B) corporation
C) cooperative association
30) 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
31) In general, an entrepreneurial venture that sees ________ as its competitive advantage would
tend to be ________ in structure.
A) efficiency; organic
B) efficiency; mechanistic
C) innovation; mechanistic
32) 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
33) An entrepreneurial venture that manufactures low-cost generic pills would be likely to be
________.
A) very organic in structure
B) very innovative
C) fairly mechanistic in structure
34) 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
35) 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
36) 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
37) Which 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.
38) Which of the following terms does not fit the classic profile of the successful entrepreneur?
A) high energy
B) reflective
C) persistent
39) In general, entrepreneurs tend to ________ more than the average person.
A) cut corners
B) take risks
C) avoid risks
40) A person with a proactive personality is someone who ________.
A) takes action
B) avoids taking action
C) is entrepreneurial
41) People who become entrepreneurs often have ________.
A) family money
B) no family money
C) family members who are entrepreneurs
42) Perhaps the best predictor of whether or not a person will become an entrepreneur is how
________ she is.
A) proactive
B) talented
C) likeable
43) 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
44) 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.
45) 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
46) In general, employee empowerment ________ motivation in employees.
A) increases
B) slightly decreases
C) strongly decreases
47) 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
48) Entrepreneurs who have trouble delegating authority should go through the process of
empowering employees in this manner.
A) gradually
B) all at once
C) using a rigid timetable
49) 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
50) 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"
51) An entrepreneur's ability to be 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
52) This type of work team has the most autonomy.
A) cross-functional
B) problem solving
C) self-directed
53) This type of work team has authority to implement the changes it recommends.
A) empowered
B) cross-functional
C) problem solving
54) This type of work team is composed of specialists.
A) empowered
B) problem solving
C) self-directed
55) 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
56) Harvesting an entrepreneurial venture occurs when the venture ________.
A) has a hit product
B) is successful
C) is sold
57) 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
58) 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
59) Entrepreneurship is the process of starting a new business to respond to an opportunity in the
63) One of the first things an entrepreneur does is look for potential opportunities in the
64) Legal issues for an entrepreneurial organization typically are addressed after the organization
65) Once the entrepreneurial organization is up and running, the entrepreneur becomes a
67) A context analysis sizes up the target market and evaluates possible competitors to the
68) An entrepreneurial venture's advertising strategy would be included in the description of the
69) Since it is impossible to predict the future, projected income estimates are not part of a good
70) The two primary factors that affect the legal structure of an entrepreneurial organization are
71) If the legal structure of an entrepreneurial venture does not turn out to be ideal, it can always
72) When they first start out, most small entrepreneurial ventures have a very informal
73) An entrepreneurial venture that sees its competitive advantage in cost efficiency would tend
74) Since they are often overwhelmed by the pressure of decisions, one chore that most
75) When hiring, entrepreneurs typically are much less concerned with matching a candidate's
76) The classic "entrepreneurial personality" is a person who is high in self-confidence,
77) People with proactive personalities tend to react to their environment more than trying to
78) You would expect an entrepreneur who has a grand vision for the future to be more of a risk
82) A good way to ease into employee empowerment is to let employees share in decision
84) The leader of an entrepreneurial organization is like a marching band leader because he or
86) A command-and-control leadership style works best with an entrepreneurial organization
87) One of the keys that distinguishes an entrepreneurial organization from a conventional
88) The first step in managing a downturn in an entrepreneurial business is to recognize that
90) Because entrepreneurship is so time-consuming and energy-consuming, many entrepreneurs
91) Saving money by avoiding the expense of professional advice, such as legal and accounting,
92) It is a good idea for an entrepreneur to develop a network of trusted friends and advisors to
93) In a short essay, explain what an entrepreneurial venture is and how it differs from a small
95) In a short essay, describe the steps an entrepreneur typically takes in deciding whether to
96) In a short essay, describe the steps an entrepreneur typically takes in planning and organizing
99) In a short essay, describe the factors that determine whether an entrepreneurial venture will
101) In a short essay, explain what a proactive personality is and what its connection is to
104) In a short essay, describe how an entrepreneur who is reluctant to empower employees