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Questions and Answers

1. An entrepreneur:
A. Manages a business for someone else
B. Owns controlling interest in the stock of a major corporation
C. Manages a business that operates in more than one country
D. Accepts the risk of starting and running a business

2. One way an intrapreneur differs from an entrepreneur is that:


Discuss
A. Intrapreneurs start nonprofit organizations while entrepreneurs start profit-seeking businesses
B. Intrapreneurs are practical while entrepreneurs are creative
C. Intrapreneurs work within existing corporations while entrepreneurs assume the risks of starting their own
business
D. Intrapreneurs limit their efforts to financial investments, while entrepreneurs are involved in all areas of
business activity
3. When looking at the advantages and disadvantages of starting various types of businesses, it apears that:
A. Businesses that are easy to start often offer the greatest potential for long term growth and profits
B. The greatest security is available in the manufacturing sector
C. Businesses that offer a chance for high profits tend to be difficult to start and hard to keep going
D. The reason the service sector is growing so rapidly is that service firms are easy to start, easy to keep going,
and offer both growth opportunities and plenty of security
4. Manny is about to graduate from college, and is looking for full time employment. He has decided to
concentrate on looking for a job with a major corporation. His job search strategy:
A. Makes sense, because managerial skills can only be fully developed by working for big firms
B. Is smart because major corporations are still the most important source of employment growth in the United
States
C. Indicates that Manny wants a chance to utilize his entrepreneurial talents
D. Is likely to limit his job prospects since most new jobs are with small businesses
5. An examination of statistics about people who start their own businesses reveal that:
A. Many small business owners got their entrepreneurial idea from a previous job they held
B. It is rare for managers with experience working withing big corporations to start their own businesses
C. People who start their own businesses right after graduating from high school or college are generally more
successful than those who first work for someone else
D. Most small business owners have a great deal of personal wealth
6. Which of the following suggestions would and experienced entrepreneur most likely give to someone who is
thinking about starting their own business?
A. Starting a new business is always better than buying an existing firm
B. Even small businesses must keep accurate records
C. In order to keep costs low when the company is just getting started, wait at least a year before hiring and
accountant or lawyer
D. Prior business experience is not really important in managing a new firm
7. The primary focus in managing a business should likely be:
A. Human relations and accounting
B. Financing and planning
C. Marketing and public relations
D. Staffing and controlling
8. When seeking a loan from a bank, an entrepreneur hoping to start a new business should realize that bankers
will:
A. Expect to receive a share of ownership in the busineses in exchange for their loan
B. Expect the entrepreneur to have a well prepared business plan
C. Generally make loans only to small businesses in computer related industries
D. Offer only only very short-term financing
9. Luis is a partner in a firm that specializes in producing vitamins and health food products. While the business is
considered small by U.S. standards, he is attempting to persuade his partner to expand internationally. Luis would
list which of the following as an advantage of going international?
A. Exporting can absorb excess inventory
B. Marketing will encounter cultural similarities in prospective markets
C. The company can take extra time to ship internationally
D. Selling your products in other markets may shorten their life cycle
10. One of the main reasons why many American small businesses are not involved in global business transactions
is:
Discuss
A. There is only a limited market for their products
B. The government has been against active participation
C. Many potential exporters do not know how to get started
D. American products are looked upon as being inferior

1. People who work for someone else

A. Aptitude
B. Employee
C. Entrepreneurs
D. Entrepreneurship

2. Evaluation of your strenghths and weaknesses

A. Self Assessment
B. Employee
C. Entrepreneurship
D. Entrepreneur

3. People who own, operate, and take risk of a business venture

A. Aptitude
B. Employee
C. Entrepreneurs
D. Entrepreneurship

4. The ability to learn a particular kind of job

A. Aptitude
B. Employee
C. Entrepreneurship
D. Entrepreneur

5. Which one is NOT a disadvantage of Entrepreneurship?

A. Risky
B. Uncertain Income
C. You are the boss
D. Work long hours
6. Which one is NOT an advantage of Entrepreneurship?

A. Can choose a business of interest


B. You can be creative
C. Make a lot of money
D. You will make decisions alone

7. What type of entrepreneurial business actually produce the products they sell?
A. Manufacturing
B. Wholesaling
C. Retailing
D. Service

8. What type of entrepreneurial business sells products to people other than the final customer?

A. Manufacturing
B. Wholesaling
C. Retailing
D. Service

9. What type of entrepreneurial business sells products directly to the people who use or consume them?
A. Manufacturing
B. Wholesaling
C. Retailing
D. Service
10. What type of entrepreneurial business sells service instead of a product?
Discuss
A. Manufaturing
B. Wholesaling
C. Retailing
D. Service
11. What is an office memorandum?
A. Message from one person to another
B. Short written form of business communication
C. Short speech
D. Letter
12. If you own your own business you will need to know how to calculate your profit. Which one is a calculation of
profit?

A. Sales-months in a year
B. Sales-expenses
C. Total sales-expenses
D. Monthly sales* expenses

13. Which one is NOT a step in the problem solving method?


A. Define the problem
B. Gather information
C. Identify solutions
D. Ignore the problem
14. What type of economy allows the goverment to determine what, how, and whom products and services are
produced?
Discuss
A. Command
B. Market
15. This economy is about personal choice. Individuals decide what, how, and for whom products and services are
produced.
A. Market
B. Command
16. What is a fixed cost?
A. Cost that go up and down
B. Cost that remain the same
C. Measure the disadvantages of production
D. Measure advantages of production

17. What is a variable cost?


Discuss
A. Cost that go up and down
B. Cost that remain the same
C. Measures the disadvantages of production
D. Measures advantages of production

18. What is opportunity cost?


A. Going with your first option
B. Going with the easiest option
C. Choosing the best alternative

19. Chemicals, fabrics, and foods are examples of (BLANK) businesses.


20. Shopping malls, Krogers, and Best Buy are examples of a (BLANK) business.
21. What type of business are you interested in starting? Where would it be located (which part of the city)? What
would be a goal for your business?

Questions and Answers

1. What are franchises?


Discuss
A. Organizations created without agreements.
B. Organizations that involved only two parties.
C. Legal entities
D. Business opportunities for people over the age 40.
2. Describe who the franchisor is:
Questions and Answers
1. Small business is the foundation for all businesses.
A.True
B. False
2. Fifty percent of businesses fail within the first four years.
A.

True
B.

False
3.
A small business start up is designed to take advantages of the skills of the founder or founders.
A.
True
B.

False
4.
One major aspect of a small business plan, it allows the owner to put information down in writing allowing for
evaluation and honest analysis.
A.

True
B.

False
5.
Small-business growth is important in the United States and the world.
A.

True
B.

False
6.
The Fortune 500 companies employ _________________ employees than ten years ago.
A.

More
B.

Same
C.

Fewer
D.

Younger
7.
A customer of a small business could be considered an important stakeholder to the success of a company.
A.

True
B.

False
8.
A small business’ harvest plan is to put the profits back into the company.
A.

True
B.

False
9.
Individuals or other organizations that impact the success of a business are called.
A.

Corporate Managers
B.

Capitalists
C.

Stakeholders
D.

Owners
10.
The largest group of new business owners is ______________.
A.

Hispanics
B.

Retired men
C.

Women
D.

Asians
11.
Small business resources are more ____________ than large firms.
A.

Plentiful
B.

Constrained
C.

Restrianed
D.

Inverse ratio
12.
A small business owner’s relationships with key suppliers and customers are of relatively little importance in a
business’ success.
A.

True
B.

False
13.
The most important person in a small business is the founder.
A.
True
B.

False
14.
One advantage that a large firm has over a small firm is economies of scale.
A.

True
B.

False
15.
The owner must be aware of his own tolerance of risk and establish a business that is consistent with that
tolerance.
A.

True
B.

False
16.
Starting a new business could result from a particular event or condition within an individual's environment.
A.

True
B.

False
17.
Established businesses may be hesitant about buying from a start-up small business.
A.

True
B.

False
18.
Family members are in a unique position to keep an individual focused on pursuing the wrong approach to an
issue.
A.

True
B.

False
19.
All of these are advantages for a small business except:
A.

Respond quickly to changes


B.
Owned and run by the same person
C.

Economies of sale
D.

Greater flexibility
20.
____________________ states that individuals act to maximize their own individual benefit.
A.

Individual benefit theory


B.

Organiziational benefit theory


C.

Self fulfilling prophesy


D.

Agency theory
21.
The potential entrepreneur needs to consider ____________ when starting a new business.
A.

Risk tolerence
B.

Prior experience
C.

Personality orientation
D.

All of these answers are correct


22.
The term for when a new business has reached a level where revenue coming into the firm is sufficient to cover
expenses:
A.

Equal financial ratio


B.

No risk level
C.

Risk tolerance
D.

Break-even point
23.
When should an owner ensure there are sufficient financial resources to operate the business?
A.
Prior to the start
B.

Opening day
C.

First payroll
D.

Six month review


24.
The small business owner must have the necessary skills and must understand the marketplace.
A.

True
B.

False
25.
Large firms can respond more quickly to changes around them and fill niches better than small businesses.
A.

True
B.

False
26.
Many new businesses are formed as a result of an entrepreneur's previous work experience.
A.

True
B.

False
27.
New businesses are more likely to be successful when an entrepreneur creates a product or service before there
is a need in the marketplace.
A.

True
B.

False
28.
A potential owner must be realistic about its competitors in products and the volume of sales.
A.

True
B.

False
29.
One of the greatest risks to a new business is fast growth.
A.

True
B.

False
30.
An example of an idea for a new startup from a hobby is _________________.
A.

A sports card collector who bought and sold cards for a year to build a personal collection, deciding to become
a sports card dealer.
B.

A computer salesperson seeing the possibility of opening a new electronic store in a different part of the city.
C.

A purposeful exploration to find a new idea.


D.

A baker, who tosses ingredients together to see what they taste like.
31.
In forming a new business, the first thing a founder should do is:
A.

Analyze the market


B.

List their personal skill set


C.

Obtain financial support


D.

Hire a lawyer
32.
A small business owner must possess all of the following except:
A.

Necessary skills
B.

In debth understanding of the market


C.

Passion for starting a business


D.

Follow a sequential formula


33.
Potential owners should examine all of these specific areas except:
A.
Work Experience
B.

Financial History
C.

Education
D.

Family History
34.
The process of generating new business ideas is something that occurs automatically.
A.

True
B.

False
35.
Potential generation of new business ideas occur:
A.

When dismissing a promissing idea


B.

When copying existing business


C.

Automatically
D.

Because of the process of identifying skills and opportunities in the market.


36.
Mark brings his friends together to generate ideas on his new business. This is called ________.
A.

Business meeting
B.

Gap analysis
C.

Brainstorming
D.

Focus group
37.
_________ is the threat to the success of a new business related to its ability to establish and maintain a high
margin product or service.
A.

Profit margin
B.

Sales generation scheme


C.

Operational financing
D.

Deficit gap
38.
A small business owner must understand when an opportunity for a new business is truly an opportunity.
A.

True
B.

False
39.
An owner, when researching a new business, needs to be aware of all potential customers.
A.

True
B.

False
40.
New business owners do not need to identify customer needs because the competitors already have.
A.

True
B.

False
41.
A major cause for failure of a new business is lack of focus on the competitive advantage.
A.

True
B.

False
42.
A small business can compete on a cost basis with a larger firm.
A.

True
B.

False
43.
An owner, when researching a new business, needs to be aware of, and be able to describe, all potential
customers.
A.
True
B.

False
44.
The first section of an external analysis is to:
A.

Research potential substitutes d. Determine in which industry the new business will compete
B.

Develop a competitive edge


C.

Identify potential customers


D.

Determine in which industry the business will compete


45.
Companies will ___________ their knowledge if your business is not a potential competitor.
A.

Share
B.

Not share
C.

Hide
D.

Distort
46.
__________ is the edge a business has over competing businesses.
A.

Competitive advantage
B.

Benchmarking
C.

Criteria related advantage


D.

Competitive map
47.
______________ is an area of business that uses standards that are necessary for the business.
A.

Competitive map
B.
Benchmarking
C.

Unorthodox practices
D.

Orthodox practices
48.
___________ describes those areas of a business that are unique or unusual as compared to standard practices of
the industry.
A.

Competitive map
B.

Benchmarking
C.

Unorthodox practices
D.

Orthodox practices
49.
A competitive advantage in a business could be ____________________.
A.

Location
B.

Product selection
C.

Activity of the firm


D.

All of the above


50.
A(n) ___________ exists if the service or product performs a similar function.
A.

Trade in
B.

Substitute
C.

Elasticity of demand
D.

Product/service flexibility
51.
An entrepreneur cannot leave his or her business due to the amount of money that was invested. This is called
a(n) ______________.
A.

Harvest plan
B.

Exit strategy
C.

Benchmarking
D.

Exit barrier
52.
______________ demonstrates how easy it is for a customer to switch to substitutes.
A.

Elasticity of demand
B.

Competitive map
C.

Trade-ins
D.

Benchmarking
53.
The mission of a business needs to be actionable, which means assist employees to make decisions.
A.

True
B.

False
54.
The mission statement and strategies can be developed after identifying potential customers.
A.

True
B.

False
55.
A business owner should never change its mission statement or strategy.
A.

True
B.

False
56.
A sustainable competitive advantage is an advantage that other firms cannot immediately copy.
A.

True
B.

False
57.
Michael Porter describes a low cost strategy as a company seeking to be the lowest cost firm in the industry.
A.

True
B.

False
58.
An overall strategy assists the business by targeting its effort in specific areas.
A.

True
B.

False
59.
It is critical for a new business to conserve its resources and focus on areas that have potential to maximize the
firms' resources.
A.

True
B.

False
60.
____________ is (are) a brief statement that summarizes how and where the firm will compete in the industry.
A.

Core values
B.

Mission statements
C.

Strategies
D.

Goal statements
61.
An owner should establish the mission statement and strategies ____________.
A.

Prior to its inception


B.
At the first day of business
C.

At the 30 day review


D.

At the 90 day review


62.
_____________ provides you with the opportunity to make money when other businesses cannot easily copy
your advantages.
A.

Orthodox practices
B.

Unorthodox practices
C.

Sustainable competitive advantage


D.

Tangible assets
63.
All of these are tangible assets except
A.

Location
B.

Industry experience
C.

Computer systems
D.

Business License
64.
What are the two measures used to evaluate whether a person or firm is meeting its goals?
A.

Orthodox and Unorthodox


B.

Qualitative and Quantitative


C.

Actionable and Nonactionable


D.

Tangible and intangible


65.
According to the book, the greatest source of sustainable advantage is:
A.
Personal relationship with the customer
B.

Location
C.

Staffing
D.

Relationship with vendors


66.
In a proposed new business, the financial analysis focuses exclusively upon its ability to generate positive cash
flow.
A.

True
B.

False
67.
When there is a difference between managers and owners, profits are a useful measure as a means to evaluate
performance.
A.

True
B.

False
68.
Cash is "king" in small business.
A.

True
B.

False
69.
A pro forma is a term describing estimates of what the balance sheets and income statements will look like in the
future.
A.

True
B.

False
70.
Break-even analysis is the estimation of when a business's income exceeds its expenses.
A.

True
B.
False
71.
Cash flow is the positive movement of money into the firm to pay the bills.
A.

True
B.

False
72.
An investment in the firm by the owner is called ______________.
A.

Equity
B.

Profit
C.

Recievables
D.

Margin
73.
According to the book, the most dangerous situation for a new business is _______.
A.

Uneven grown
B.

No growth
C.

Rapid growth
D.

Slow growth
74.
____________ is the analysis of the differences between the predicted and the actual performance of the
business.
A.

Deviation analysis
B.

Gap analysis
C.

Margin analysis
D.

Profit analysis
75.
The cash flow statement is used to describe _________ percent of the activities that provide and use cash during
a specified period of time.
A.

25
B.

50
C.

75
D.

100
76.
A sole proprietorship is where the owner, for legal purposes, is treated the same as the business.
A.

True
B.

False
77.
A sole proprietorship is the most complex form of business to establish.
A.

True
B.

False
78.
What is the disadvantage of choosing a sole proprietorship?
Discuss
A.

Cannot have more than one founder


B.

Law does not recognize other equity investors


C.

Liability is solely on the owner


D.

All of these are correct


79.
A(n) ___________ is an agreement between two parties to perform certain activities for some consideration.
A.

Contract
B.

Limited partnership
C.

Corporation
D.

Warranty
80.
The legal means to protect intellectual property is ___________.
A.

Copyright
B.

Trademark
C.

Patent
D.

All of these are correct


81.
In recent years, the limited liability corporation has become one of the most popular legal forms of ownership for
small business.
A.

True
B.

False
82.
In a limited liability corporation, a firm can have more than ________ investors.
A.

25
B.

50
C.

75
D.

100
83.
If a small business has employees, the business must have a(n) ____________.
A.

NAICS Code
B.

Selected Employer Identification Number (E. I. N.)


C.
U.S. Industry Code
D.

Business Rating Code

Questions and Answers

1.
All are the typical structure for a business plan except
A.

Executive summary
B.

Financial Plan
C.

Operational Plan
D.

Borrowing Plan
2.
An entrepreneur has the following personal characteristics except
A.

Self- confident
B.

Goal-oriented
C.

Creative
D.

Over ambitious
3.
___________ is refer to some one who undertakes a business venture
A.

A Business Manager
B.

An Entrepreneur
C.

A Business Man
D.

Supervisor
4.
Entrepreneurship contribute to
A.

Economic growth
B.

Employment opportunities
C.

Career alternatives for women and minorities


D.

All of the above


5.
The person who creates value by moving resources out of less productive areas into more productive one is called
A.

A Banker
B.

A Magician
C.

A Business guru
D.

An entrepreneur
6.
__________ is one among the factors that influence entrepreneurship
A.

Life-path circumstance
B.

Economic growth
C.

Inheritance
D.

Desire
7.
Self-discovery which is one of the process of entrepreneurship means
A.

Learning what you enjoy doing


B.

Examining your strength and weaknesses


C.

Examining work experience and relating it to potential


D.
All of the above
8.
Brainstorming new ideas with others is
A.

A tasking activity
B.

A creative activity
C.

An examination
D.

All of the above


9.
All are opportunities except
A.

Needs
B.

Wants
C.

Problems & Challenges


D.

Solutions
10.
Opportunities point to _________ who would buy the innovative solutions
A.

Entrepreneur
B.

Business manager
C.

Business centre
D.

Customers
11.
All are raw materials for generating good ideas except
A.

Experiences
B.

Observations
C.
Feeling and other stimuli
D.

Inheritance
12.
__________ is an activity that generate good ideas
A.

Physical exercise
B.

Brainstorming
C.

Examinations
D.

Dreaming
13.
The phrase "quantity breeds quality" described which guideline in brainstorming
A.

Defer Judgment
B.

Strive for quantity


C.

Seek unusual or wild areas


D.

Combine and build on ideas.


14.
Which is the Federal Government of Nigeria grants for young graduates entrepreneurs?
A.

DFRRI
B.

NNPC
C.

YOU WiN
D.

CBN
15.
To meet the goals, entrepreneur may develop plan such as
A.

Business Plan
B.
Building Plan
C.

Family Plan
D.

Town Plan
16.
"Bootstrapping" is a source of capital
A.

True
B.

False
17.
All are the process of entrepreneurship except
A.

Planning
B.

Raising Start-up capital


C.

Growth
D.

Education
18.
The "bank of Dad and Mom" is not a source of capital
A.

True
B.

False
19.
An entrepreneur tend to be passionate about achieving his goal
A.

True
B.

False
20.
Business plan declare the following except
A.

Vision
B.

Strategy
C.

Human resources
D.

Borrower

Questions and Answers

1.
Risk profile: What’s your tolerance for the unfamiliar?
A.

You look at what the competition is doing and find a way to do it better.
B.

You prefer to analyze things before jumping in.


C.

You like to make bets with friends and challenge yourself to break records.
D.

You believe in trying, failing and doing better next time.


2.
Communication style: Are you a smooth schmoozer?
A.

You pay attention to others’ body language and respond to those with high energy.
B.

You prefer to work on your own rather than with a team, and let the results speak for themselves.
C.

You think of communication as an art. You prefer meetings and phone calls over emails.
D.

You tell it like it is and picture yourself as the “relatable” boss whose door is always open.
3.
Leadership style: What’s your boardroom personality?
A.

A good leader is a team leader who inspires people to work together and support one another.
B.

A leader isn’t the guy with the most ideas, but the one who can transform others’ ideas into strategy.
C.

A leader is an idea-maker and should constantly look to learn new things.


D.

A leader is generous and motivates people. Also, listening is an underrated skill.


4.
Work habits: How do you schedule your time?
A.

You're good at managing your time. As a leader, you think delegation is key to getting things done.
B.

You believe you get exactly what you put in and don’t hesitate to burn the midnight oil.
C.

You’re a disciplined, by-the-book worker who keeps to-do lists to stay on track.
D.

You believe in spiritually nourishing yourself to become more productive, and having an attitude of gratitude.
5.
Strategy: What’s your secret to success?
A.

You never take shortcuts and deliver consistent quality standards in everything you do.
B.

You are a rational thinker, but when making decisions you tend to downplay the potential pitfalls and just run
with it.
C.

You always make time for your hobbies, a healthy breakfast and your friends no matter how busy you get.
D.

You believe the best business is one built around your passions and that personal branding is priority.

Questions and Answers

1.
It is the physical characteristics or capabilities of the product or service.
A.

Packaging
B.

Appearance
C.

Features
D.

Personal selling
2.
Someone buying a very expensive security system for their home after many homes in their neighborhood have
been broken into might be making a
A.

Large personal purchase


B.
Rational buying decision
C.

Emotional buying decision


D.

None of the above.


3.
A person who is looking to buy a new computer and compares prices and features on the internet before going to
make their purchase is making a
A.

Large personal purchase


B.

Rational buying decision


C.

Emotional buying decision


D.

None of the above.


4.
A coupon is an example of a
A.

Feature
B.

Benefit
C.

Telemarketing objective
D.

Sales promotion
5.
If I just bought a new Maytag refrigerator and was told that I was entitled to get $50 back from Maytag, it means
that I am entitled to a
A.

Discount
B.

Promotion
C.

Credit card
D.

Rebate
6.
Becoming a "Rewards Member" is an example of a sales promotion.
A.

True
B.

False
7.
Using the television to market your product or service to potential customers is Telemarketing.
A.

True
B.

False
8.
It is not important for a salesperson to identify a customer's needs and concerns, but simply to provide them with
the highest level of customer service.
A.

True
B.

False
9.
It is important to make your sales team familiar with their own company and the company's competitors, not just
the product(s) or services they are selling.
A.

True
B.

False
10.
Entrepreneurs should examine the different options for channels of distribution and choose the one that best
meets the needs of their customers as well as their business.
A.

True
B.

False

The strategy created by adopting a blend of various ways to promote your business is your ....

A.

Advertising
B.

Business plan
C.
Management initiative
D.

Promotional mix

2.
It is a cost-effective way for businesses to get lots of company and/or product information to potential customers.

A.

Marketing campaigns
B.

Online advertising
C.

Weekly newspaper ads


D.

Direct mailings

3.
It is the biggest disadvantage of online advertising.

A.

Excessive spamming
B.

Competition
C.

Time
D.

Technology drawbacks

4.
It is the best advertising method to reach millions of people every day.

A.

Radio advertising
B.

Television advertising
C.

Newspaper advertising
D.

Online advertising
5.
This type of advertising is relatively inexpensive and targets a limited geographic area.

A.

Radio advertising
B.

Television advertising
C.

Newspaper advertising
D.

Online advertising

6.
This is a nonpaid form of communication that calls attention to your business through media coverage.

A.

Online advertising
B.

Television advertising
C.

Publicity
D.

Transit advertising

7.
Direct-mail advertising is a written statement meant to inform the media of an event or product.

A.

True
B.

False

8.
Sponsoring a community sports team is an example of a company improving their...

A.

Determination
B.

Communications
C.
Public relations
D.

None of the Above

Questions and Answers

1.
When a product move directly from the manufacturer to the consumer it is a ...
A.

Product Release
B.

Direct Channel
C.

Small business distribution


D.

Indirect channel
2.
Manufacturers usually don't sell directly to these.
A.

Retailers
B.

Wholesalers
C.

Consumers
D.

Agents
3.
It includes the storage, handling, packaging and transportation of products within a channel of distribution.
A.

Physical Distribution
B.

Product Servicing
C.

Inventory Management
D.

None of the above


4.
Check all options below that retail businesses have for selling products
A.

Web sites
B.

Manufacturing Plants
C.

Catalogs
D.

Auctions
E.

Stores
F.

Phone Orders
5.
Which would be the best channel of distribution for a small business that sells custom made furniture?
Discuss
A.

Manufacturer to Consumer
B.

Manufacturer to Retailer to Consumer


C.

Manufacturer to Wholesaler to Retailer to Consumer


D.

Manufacturer to Agent to Wholesaler to Retailer to Consumer


6.
If you buy Pillsbury frosting for your cupcakes at Market Basket, what was the most likely channel of distribution?
A.

Manufacturer to Consumer
B.

Manufacturer to Retailer to Consumer


C.

Manufacturer to Wholesaler to Retailer to Consumer


D.

Manufacturer to Agent to Wholesaler to Retailer to Consumer


7.
Choosing the right channel of distribution for a product includes finding the most efficient way to ship it to
desired locations.
A.
True
B.

False
8.
The downside of more steps in the distribution channels, however, means that the product cost will be higher.
A.

True
B.

False
9.
Service businesses have the same options for distribution channels as a retail business.
A.

True
B.

False
10.
Agents and Wholesalers serve as these in an indirect channel of distribution.
A.

Entrepreneurs
B.

Storage Locations
C.

Advisors
D.

Intermediaries

Questions and Answers

1.
An Entrepreneur is someone who owns a business.
A.

True
B.

False
2.
Entrepreneurship is someone who manages, organizes and runs their business.
A.

True
B.
False
3.
Do you have to have a college degree to become an entrepreneur?
A.

True
B.

False
Hth

Questions and Answers

1.
Nick and Omar were invited to "pitch" a spin-off venture to the Shark Tank. They were offered $250,000 but
refused it. Explain why. Be certain to elaborate on how their decision is supported by the entrepreneurial traits
you've researched.
2.
How does the concept of social entrepreneurship apply to the idea of "Think Globally; Act Locally." Be certain to
defined the concept and provide supporting examples from the "New Heroes" and the Providence Journal article,
"The vast potential of social enterprise."
Discuss
3.
The term entrepreneur means:
A.

One who organizes, manages and assumes the risks of a business or enterprise.
B.

An individual who provides angel funding to support a start-up venture


C.

A business owner who is considering going public with his company


4.
What is the general criteria used to determine if a business qualifies as a small business under the Small Business
Administration (SBA) guidelines
A.

Size of the facility and number of customers


B.

Revenues and employee count


C.

The SBA defers to the criteria set by the state in which the business operates
5.
IRobot designs and builds robots that make a difference in people's lives. They market their cleaning robots as
providing faster, smarter ways to get dirty jobs done. This is an example of which general business model:
Discuss
A.

Capitalizing on strengths
B.

Market-First Method
C.

Problem and Solution Method


6.
The product and services provided by the Manpack.com entrepreneurial team integrate which of the following
models:
A.

Market-first method
B.

Problem and solution method


C.

The personal strength method


D.

Both A and B
E.

All of the above


7.
To be successful, entrepreneurs need to have a DREAM. However, a dream is more than a fleeting wonderful
idea. Each of the letters of this acronym take on a specific meaning which is...
A.

Diversification, Revenue Stream, Effort, Attitude and Marketing


B.

Differentiation, Realistic, Entrepreneurial, Awareness and Mindshare


C.

Design, Release, Educate, Analyze and Market


8.
The F3 in capital refers to angel investors who are willing to provide between $750,000 and $1 million in funding.
A.

True
B.

False
9.
This group of investors is looking to receive a return of 5 times their capital infusion within a 7 year period:
A.

Seed investors
B.

Venture capitalists
C.

Angel investors
10.
What is the purpose of mezzanine financing:
A.

To provide gap funding for a company that may not be ready or willing to go public
B.

To provide a middle tier of funding between seed and angel


C.

To help a company fund an initial public offering


11.
The concept of connectivity as it relates to an entrepreneurial venture is critical because it ensures your network
systems are integrating properly.
A.

True
B.

False
12.
Omar Soliman's classroom behavior was, from his perspective, misunderstood. Not surprising, his parents
received a note stating, "Omar spends all of his class time speaking with the people next him...and he doesn't own
the proper calculator or appear to have a book." In retrospect, Omar's behavior to could be reframed to illustrate
his demonstration of which of the following entrepreneurial knowledge, skills and/or abilities.
A.

Connectivity and credibility


B.

Connectivity and leveraging resources


C.

Confidence and commitment