True/False Indicate whether the
statement is true or false.
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1.
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Three ways that one could develop entrepreneurial characteristics and skills
would be through education, hard work, and training.
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2.
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The good thing to know about becoming an entrepreneur is that, when all is said
and done, everyone is entrepreneurial and just needs an opportunity.
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3.
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There are only three characteristics that define all entrepreneurs: being
curious, being perceptive, and being imaginative.
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4.
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Risky investments often promise better financial rewards than safer
investments.
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5.
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Once an entrepreneur commits to an entrepreneurial venture and assumes all of
the risk involved in that venture, it is highly unlikely that the business will fail.
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6.
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Successful entrepreneurs minimize and manage risk.
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7.
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By researching potential problems, an entrepreneur takes all of the risk out of
setting up a business venture.
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8.
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When facing a problem, the recommended approach for an entrepreneur is to do
everything to avoid the problem so as to maximize the chance of being successful.
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9.
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Being perceptive as an entrepreneur means to visualize things that others may
not necessarily see as opportunities and then acting on that perception.
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10.
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A curious entrepreneur is one who is motivated by the excitement of starting a
new venture and does so by establishing achievement goals.
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11.
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Persistence is an entrepreneurial characteristic that describes a person who
will not give up easily and who tries all alternatives to achieve success.
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12.
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The entrepreneur who is willing to work 16 hours a day, 7 days a week to succeed
has an entrepreneurial characteristic called independence.
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13.
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The entrepreneur who believes in himself or herself and is convinced that the
risk is worth the effort is very self-confident.
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14.
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Having a skill means that you have the ability to do something specific, which
enables you to translate knowledge into action.
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15.
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Entrepreneurs identify what they need to know, and then immediately create a
business venture with that knowledge.
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16.
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Knowing what questions to ask, in the process of doing research, is a very
important skill to have for an entrepreneur.
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17.
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A new entrepreneurial business venture could have begun simply by an
entrepreneur asking a series of questions in the pursuit of gathering information.
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18.
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Magazines, periodicals, newspapers, newsletters, and trade journals are typical
general interest publications that all entrepreneurs would use to gather information.
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19.
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A database is an unorganized list of articles that have been published about a
specific topic over a particular period of time.
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20.
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Free consulting services, such as business trends and local tax rates, are
provided by chambers of commerce and business development offices in most cities or towns.
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21.
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Gathering information is critical for a new entrepreneur and being able to take
advantage of free services, such as libraries, Internet, consultants and professionals, will assist
in getting started.
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22.
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Two advantages of using the Internet would be to having a link to government
websites and to accessing an endless volume of information.
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23.
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It is a fact that entrepreneurs acquire new knowledge as they look for ways to
solve problems.
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24.
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Management performs four major functions: planning, organizing, directing, and
controlling; whereas an entrepreneur’s management skills consist of simply planning and
organizing.
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25.
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When entrepreneurs empower staff, they are giving their employees the feeling
that their contribution to the business is important.
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26.
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In building good staff relationships, entrepreneurs try to get to know and
empathize with their employees. By doing so, it becomes much harder to motivate the employees to do
good work.
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27.
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“How will I make my customers feel good today?” is a good customer
relationship question for all entrepreneurs.
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28.
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Evaluation criteria for a new venture should consist of feasibility,
marketability, and profitability.
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29.
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When an entrepreneur is speaking about the target market for his or her venture,
that person is making reference to the feasibility criterion.
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30.
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A feasibility chart for a proposed new venture should consist of information
about financing, location, permits, suppliers, and staff.
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31.
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New entrepreneurs need to ask themselves two questions before starting a new
venture: What kind of venture will I start? and How will I do it?
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32.
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Entrepreneurs can seek a venture opportunity in one of two ways: an idea-driven
opportunity or a market-driven opportunity.
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33.
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A market-driven opportunity is one that you create as a result of an invention
or innovation.
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34.
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When an entrepreneur relies on an idea-driven opportunity, he or she does so at
the risk that there may be no demand for the product or service being developed.
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35.
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Once you have the idea for your venture, the next steps are simple and quite
straight forward. It is just a matter of finding out who wants what you can produce and in what
quantities.
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36.
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In a market-driven enterprise, entrepreneurs look for a customer base and then
develop the goods or service to meet the needs and wants of those customers.
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37.
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The big advantage of a market-driven enterprise over an idea-driven enterprise
is that the entrepreneur doesn’t have to waste money on doing research.
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38.
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Since it is not necessary for an idea person to link up with a marketing person,
it follows that successful entrepreneurial ventures are either purely idea-driven or
market-driven.
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39.
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An idea person can learn marketing and technical skills by taking courses or by
reading books on any subject.
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40.
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If there is both an idea and a market for a product, an entrepreneur may assume
that he or she has a feasible venture with the potential to succeed.
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41.
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A venture is feasible only when it fails to solve a problem or to satisfy a need
and want of the consumer.
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42.
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A market segment is any part of an overall market that has common
characteristics.
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43.
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The larger the market segmentation, the easier it is to determine what is
available in a particular market.
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44.
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Finding a market segment for your new product is important and that is why it is
critical to analyze that segment after you launch your new venture.
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45.
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Product mapping allows an entrepreneur to visualize all the products or services
that are available in a particular market segment.
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46.
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Analyzing sales statistics, taste-test data, product histories, and consumer
motivation data are all tasks that should be completed at the stage of development known as service
mapping.
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47.
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Setting a venture apart from other manufacturers or distributors is something
that should not be considered by a new entrepreneur because it could be a disadvantage for that
business.
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48.
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An invention is a product or process that does something that has never been
done before.
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49.
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By definition, an inventor is an entrepreneur who builds a business to produce,
distribute, and market the invention.
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50.
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Inventing something may not be an entrepreneurial activity, but creating an
innovation is considered to be an entrepreneurial activity.
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51.
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A copyright gives the holder the sole right to make, use, or sell an invention
for a set period of time, preventing others from using it without permission.
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52.
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Licensing an invention means that the inventor allows another business to use
his or her invention for a fee.
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53.
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A franchise agreement is an arrangement for one business to license the rights
to its name and procedures to another business or person.
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54.
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Venture capitalists are those financial investors who are interested in forming
a partnership with risk sharing entrepreneurial inventors.
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55.
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Once a patent or copyright has been obtained by an inventor, those rights and
privileges obtained cannot be sold or given away.
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56.
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To innovate means to use new technology, materials, or processes to improve
existing products, or how they are produced and distributed.
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57.
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The person who creates something from nothing is an inventor while the person
who improves that product or process is known as an innovator.
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58.
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It is usually easier for innovators to be entrepreneurs than for inventors to be
entrepreneurs.
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59.
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Changing the market strategy for an entrepreneur is all about altering the
distribution process and taking advantage of international markets.
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60.
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Marketers can use innovation to gain a business advantage by changing the way a
product is used, packaged, marketed, distributed, designed, or manufactured.
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Multiple Choice Identify the
choice that best completes the statement or answers the question.
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1.
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The most common way to achieve financial success is by developing
entrepreneurial characteristics through
A. | education | B. | gambling | C. | luck | D. | all of the
above |
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2.
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All entrepreneurs possess similar characteristics, which include
A. | risk taking | B. | being perceptive | C. | being
imaginative | D. | all of the above |
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3.
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Because there are no sure things in business, entrepreneurs often take on a high
degree of
A. | flexibility | B. | risk | C. | independence | D. | persistence |
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4.
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Entrepreneurs are often presented with opportunities and challenges, which
usually come about when that entrepreneur is faced with a
A. | profit | B. | loss | C. | problem | D. | success |
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5.
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Wanting to know how things work and exploring answers is called being
A. | perceptive | B. | imaginative | C. | a risk
taker | D. | curious |
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6.
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When an entrepreneur is being creative in thinking about solutions to problems,
that person is being
A. | perceptive | B. | imaginative | C. | a risk
taker | D. | curious |
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7.
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The entrepreneur who takes the approach of never giving up until every idea has
been tried is one who is practicing being
A. | persistent | B. | imaginative | C. | a risk
taker | D. | curious |
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8.
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An expression that describes those entrepreneurs who set objectives and who
strive to meet and exceed those objectives is called
A. | goal setting | B. | profit making | C. | being
flexible | D. | being perceptive |
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9.
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When a person believes in themselves and persists beyond any doubts that may
exist, they are exhibiting
A. | independence | B. | curiosity | C. | self-confidence | D. | perception |
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10.
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The most common characteristic for an entrepreneur is the desire for
A. | hard work | B. | setting goals | C. | independence | D. | all of the
above |
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11.
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The entrepreneur who is good at adapting to changing trends, markets, rules, and
economic conditions is one who is considered to be
A. | self-confident | B. | imaginative | C. | persistent | D. | flexible |
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12.
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Having the ability to do something that is specific is having a(n)
A. | goal | B. | skill | C. | objective | D. | knowledge |
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13.
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The first step in knowledge acquisition is having the ability to
A. | get an answer | B. | perform research | C. | ask a
question | D. | avoid trouble |
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14.
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When an entrepreneur uses their research skills to solve a problem or create a
venture plan, it all starts with
A. | using information | B. | planning the venture plan | C. | executing the
venture plan | D. | gathering information |
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15.
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Gathering information for the venture plan could consist of sourcing
A. | libraries | B. | periodicals | C. | Internet | D. | all of the
above |
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16.
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If an entrepreneur is relying on the expertise of accountants, lawyers, and
advertising executives, they are using
A. | consultants | B. | professionals | C. | databases | D. | periodicals |
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17.
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Advantages of using the Internet when gathering information consist of one or
more of the following:
A. | difficult to find information | B. | information may be out of
date | C. | sharing of information | D. | information may be
inaccurate |
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18.
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Major functions performed by management include:
A. | planning | B. | organizing | C. | directing | D. | all of the
above |
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19.
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In order to achieve individual goals, entrepreneurs apply this to their
personal, financial, and material resources.
A. | management objectives | B. | management skills | C. | management
goals | D. | management directives |
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20.
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When an entrepreneur is creating detailed schedules, “to do” lists,
and reminder files, that person is focusing on
A. | organizing | B. | directing | C. | controlling | D. | planning |
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21.
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This entrepreneurial skill allows entrepreneurs to use a strict budgeting
process so that they will not exceed the budgets previously established.
A. | organizing | B. | directing | C. | controlling | D. | planning |
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22.
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When entrepreneurs empower their staff, they are practicing the following
management skill.
A. | organizing | B. | directing | C. | controlling | D. | planning |
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23.
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What type of skill gives rewards according to an employee’s needs and
personality?
A. | communication | B. | motivation | C. | customer
relationship | D. | supplier relationship |
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24.
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The relationship skills developed by entrepreneurs to deal with their
“boss” are known as
A. | customer relationships | B. | staff relationships | C. | supplier
relationships | D. | management relationships |
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25.
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If a business had trouble meeting its financial obligations, communication with
the following group would be advisable.
A. | customers | B. | staff | C. | suppliers | D. | management |
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26.
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Which of the following categories of work has the greatest potential to make you
wealthy?
A. | lawyer | B. | doctor | C. | engineer | D. | entrepreneur |
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27.
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The venture evaluation criteria that involves projecting revenue and expenses is
called
A. | feasibility | B. | marketability | C. | profitability | D. | economic
ability |
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28.
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The venture evaluation criteria in which you check out such things as licenses
and permits is called
A. | feasibility | B. | marketability | C. | profitability | D. | economic
ability |
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29.
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The evaluation criteria in which an entrepreneur would concern themselves with
competitors and competition would be
A. | feasibility | B. | marketability | C. | profitability | D. | economic
ability |
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30.
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The document that should be prepared by an entrepreneur to take into account all
of the venture evaluation criteria is called a(n)
A. | income statement | B. | management forecast | C. | evaluation
summary | D. | business plan |
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31.
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An idea-driven enterprise is one that is created as a result of
A. | an invention | B. | an innovation | C. | either an invention
or an innovation | D. | neither an invention or an innovation |
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32.
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Having an idea for a venture is a first step, which may require an entrepreneur
to do one or more of the following.
A. | get a location | B. | invest in materials and
equipment | C. | hire staff | D. | all of the
above |
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33.
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The greatest worry for an entrepreneur when starting an idea-driven enterprise
is that there may not be
A. | a demand for the product | B. | a supply of the product | C. | a suitable
location | D. | enough raw materials |
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34.
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A market-driven enterprise follows a sequence of events, the first one
being
A. | finding a location | B. | finding a customer base | C. | finding appropriate
financing | D. | finding a product to market |
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35.
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If an entrepreneur is using a market-driven approach, the following marketing
tool will be critical to determining next steps.
A. | need | B. | want | C. | research | D. | design |
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36.
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The point at which a market-driven enterprise could fall into trouble, and may
fail to succeed, is when an entrepreneur realizes that he or she is
A. | not a designer | B. | not a marketer | C. | just an
inventor | D. | all of the above |
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37.
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History has shown that the most successful entrepreneurial ventures are
A. | purely market-driven | B. | purely idea-driven | C. | a balance of
market-driven and idea-driven | D. | neither market-driven nor
idea-driven |
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38.
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Partnerships, linking idea-driven and market-driven entrepreneurs, can come
about through the use of the
A. | Internet | B. | newspaper | C. | trade
fair | D. | all of the above |
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39.
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If an entrepreneur has set reasonable goals, and there is both an idea and a
market for a product, that venture is considered to be a
A. | capital venture | B. | feasible venture | C. | marketing
venture | D. | successful venture |
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40.
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When investigating the market for a new venture, an entrepreneur should
A. | segment the current market | B. | create a product or service
map | C. | both (a) and (b) | D. | neither (a) nor
(b) |
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41.
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When dealing with market segmentation, it is easier to determine what is
available in a particular market if the segmentation is
A. | large | B. | small | C. | about the
same | D. | does not matter |
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42.
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The process that allows an entrepreneur to visualize all of the products or
services that are available in a particular segment is called
A. | product mapping | B. | product planning | C. | product
visualization | D. | product segmenting |
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43.
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The stage known as service mapping involves doing a lot of research, which could
include gathering data from
A. | taste testing | B. | analyzing sales statistics | C. | product
histories | D. | all of the above |
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44.
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When a product or process is developed that had never been done before, it is
referred to as
A. | innovation | B. | experiment | C. | invention | D. | research |
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45.
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The question that usually kick starts the process of inventing is when someone
asks
A. | What now? | B. | Where to? | C. | Where
now? | D. | What if? |
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46.
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The permission that one receives to have the exclusive right to publish or
produce works of literature or art is called a(n)
A. | patent | B. | copyright | C. | invention | D. | innovation |
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47.
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During this process, an invention is considered to be legally protected as long
as products are marked
A. | copyright pending | B. | patent approved | C. | patent
pending | D. | copyright approved |
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48.
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If an inventor decides to allow another business to use his or her invention for
a fee, the process of doing this is called
A. | licensing | B. | approving | C. | selling | D. | patenting |
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49.
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Another name for a fee that can be either a fixed amount or a percentage of the
total sales revenue paid to the copyright holder is called a
A. | markup | B. | license | C. | discount | D. | royalty |
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50.
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If an inventor wishes to sell the distribution rights to another person, he or
she should enter into an licensing agreement, also known as a
A. | distribution agreement | B. | franchise agreement | C. | sales
agreement | D. | exclusive contract agreement |
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51.
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Entrepreneurial inventors who wish to minimize risk usually form a partnership
with a business or a financial investor also known as a
A. | sales expert | B. | venture partner | C. | marketing
guru | D. | limited partner |
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52.
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The use of new technologies, materials, or processes to improve existing
products, or how they are produced or distributed, is called an
A. | invention | B. | innovation | C. | discovery | D. | all of the
above |
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53.
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If inventors sell their invention and, as a result, gives up total control, they
may run the risk of
A. | losing out on future profits | B. | losing control of what happens to their
idea | C. | losing control of production and distribution | D. | all of the
above |
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54.
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Which of the following sequences make the most sense
A. | inventors followed by entrepreneurs | B. | inventors followed by
innovators | C. | innovators followed by entrepreneurs | D. | innovators followed by
inventors |
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55.
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An innovative way that entrepreneurs can gain a competitive business advantage
includes one or more of the following
A. | packaging | B. | design | C. | manufacturing | D. | all of the
above |
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56.
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If an entrepreneur is seeking to be innovative by participating in a trade show,
he or she is trying to change the
A. | distribution process | B. | marketing strategy | C. | manufacturing
process | D. | way the product is used |
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57.
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If an entrepreneur is seeking to be innovative by promoting a product, he or she
is trying to change the
A. | distribution process | B. | marketing strategy | C. | manufacturing
process | D. | way the product is used |
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58.
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If an entrepreneur is seeking to be innovative by using new raw materials, he or
she is trying to change the
A. | distribution process | B. | marketing strategy | C. | manufacturing
process | D. | way the product is used |
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59.
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If an entrepreneur is seeking to be innovative by finding new applications for
the product, he or she is trying to change the
A. | distribution process | B. | marketing strategy | C. | manufacturing
process | D. | way the product is used |
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60.
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For those individuals who wish to become an entrepreneur, they should ask
themselves one or more of the following questions.
A. | What kind of venture will I start? | B. | How will I do it? | C. | Both (a) and
(b) | D. | Neither (a) nor (b) |
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