Entrepreneurship – Undergraduate Written Test (15/01/2016)

1. Which one of the following represents the correct order of the 5 stages of a creative process?

a. preparation, incubation, elaboration, vision, evaluation.

b. incubation, preparation, evaluation, elaboration, vision.
c. vision, preparation, incubation, elaboration, evaluation.
d. preparation, incubation, vision, evaluation, elaboration.

2. The profile of an entrepreneur includes:

a. a desire for responsibility and moderate risk.

b. a high level of energy, a desire for immediate feedback and future orientation.

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c. confidence in the ability to succeed and determination.

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d. All the above.

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3. All of the following are characteristics of the typical entrepreneur except:
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a. desire for immediate feedback.
b. confidence in his/her ability to succeed.
c. a future orientation.
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d. value of money over achievement.

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4. International opportunities are:

a. clearly out of reach for entrepreneurial businesses.

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b. risky and do not merit serious consideration by the entrepreneur.

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c. now within the reach of entrepreneurial businesses and may present significant
opportunities.
d. highly limited for entrepreneurs.
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5. The demographic attributes of successful entrepreneurs are:

a. highly diverse relating to age, gender, and ethnicity.

b. are key predictors that determine how long the business will survive.
c. uncertain and have not been fully studied or analysed.
d. limited to specific ages, genders, and ethnic backgrounds.

6. John has come to you for advice on starting a business venture. He wants to know the best way
to gain the experience he’ll need. You suggest that he:

a. determine his weaknesses and return to school for a term or two.

b. Just jump in and learn as he goes.
c. Read a small business book.
d. Seek knowledge and experience in the field he wishes to enter.

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 7. Which of the following was not identified as one of the suggestions for small business success?

a. Develop a business plan as you grow your business.

b. Know your business in depth.
c. Learn to manage people successfully.
d. Manage your financial resources and understand financial statements.

8. Which of the following is/are true regarding business plans?

a. Allow entrepreneurs to replace badly assumptions with facts before making the decision to
go into business.
b. Create a benchmark against which entrepreneurs can measure actual company performance.
c. Provide a pathway to success.
d. All of above.

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9. Entrepreneurs can increase their chances for success if they:

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a. manage their financial resources and understand financial statements

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b. learn to manage people and keep in touch with how they react to change and balance their
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health needs with the needs of the business.
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c. know their business in depth and develop solid business plan.
d. All of above.
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10. When searching for capital to launch their companies, entrepreneurs should remember several
“secrets” to successful financing. Which of the following is not one of those secrets?

a. Raising money should not take very long therefore, if it does not come quickly, it probably
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will not come at all.

b. Choosing the right sources of capital can be just as important as choosing the right focus of
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ownership or the right location.

c. Creativity counts when searching to financing.
d. The money is not there, but the key is knowing where to look.
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11. Which of the following represents capital?

a. Cash
b. Equipment and machinery
c. Inventory
d. All of the above.

12. An entrepreneurial “secret” for creating value in the marketplace is:

a. creating new products and services.

b. learning by doing
c. applying lessons learned from history.
d. applying creativity and innovation to solve problems.

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 13. Entrepreneurship is a constant process that relies on:

a. creativity, innovation, and application in the marketplace.

b. intellectual property rights.
c. creativity, innovation, and profit.
d. the ability to win over the consumer.

14. Entrepreneurs can stimulate their own creativity and encourage it among workers by:

a. not taking chances.

b. limiting rewards.
c. expecting and tolerating failure.
d. avoiding problems.

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15. The aggregation of factors that sets a company apart from its competitors and gives it a unique

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position in the market, superior to its competition is its:

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a. competitive profile.

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b. Strategic plan.
c.
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Mission statement.
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d. Competitive advantage.
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16. Kevin Abt noticed that people were cooking meals in their homes less often but wanted to
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avoid the hassle of going out to eat. They wanted to “eat in” without cooking. Abt launched a
company. Takeout Taxi, that delivers restaurant prepared food to his customers’ homes and
businesses. Takeout Taxi is the result of a(n):
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a. weakness.
b. threat.
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c. opportunity.
d. strength.
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17. Which of the following is an effective method of collecting information about competitors?

a. Talk to employees, especially sales representatives and purchasing agents about compititors.
b. Ask customers and suppliers what competitors are doing,
c. Attend trade shows and collect competitors’ sales literature.
d. All of the above.

18. The first place an entrepreneur should look for startup capital is:

a. the Small Business Administration.

b. a venture capitalist.
c. his own savings.
d. a bank.

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 19. An entrepreneur is one who:

a. is willing to attempt to implement a business concept and then give up if it does not meet
immediate expectations.
b. knows that the concept they are about to develop will result in a profitable business.
c. creates a new business concept for the purpose of achieving profit and growth by assembling
the necessary resources to capitalize on identified opportunities.
d. understands the process of developing an idea and does not need to understand what it
means to bring that idea to a viable business concept.

20. A way of finding “gaps” in the marketplace is:

a. to identify problems that require resolution.

b. to observe environmental trends.

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c. to analyse market reports.

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d. To be frustrated because it is hard to identify an interesting product and understand that the

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same thing happens with most people.

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21. Prior entrepreneurial experiences:
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a. is one of the precisest predictors of future entrepreneurial performance.
b. is one of the most consistent predictors of future entrepreneurial performance for
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entrepreneurs under 50 years old of age but not entrepreneurs over 50 years of age.
c. is one of the most consistent predictors of future entrepreneurial performance
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d. is one of the most consistent predictors of future entrepreneurial performance in service

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firms but not in manufacturing firm.

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22. Which of the following statements is not true regarding the attributes of the founder or
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founders of the firm?

a. Founders suggest that important entrepreneurial skills are enhanced through higher
education.
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b. Founders with experience in the same industry as their new venture will typically have
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“binders” on and are typically not as effective as founders new to the industry.
c. Founders with and professional networks have an advantage.
d. New ventures that are started by a team rather than an individual have an advantage.

23. Which of the following qualities is usually not identified as a preferred attribute of the founder
or founders of a firm?

a. prior entrepreneurial experience.

b. firm started by team.
c. relevant industry experience.
d. prior experience working in a government or board of advisors.

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 25. A _______ is a place within a market segment that represents a narrower group of customers
with similar interests.

a. position market
b. niche market
c. size market
d. spot market

26. Which of the following is not identified as one of the main characteristics of successful
entrepreneurs?

a. execution intelligence
b. seeks recognition
c. product/customer focus

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d. passion for the business

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27. Starbucks is a firm that is proactive, innovative and risk-taking. From this description, we can

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most accurately conclude that Starbucks has a high level of:
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a. inventive zeal.
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b. innovative intensity.
c. entrepreneurial intensity.
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d. creative intensity.
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28. The four characteristics of successful entrepreneurs are:

a. passion for the business, is on the cutting edge of technological change, is very charismatic,
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and tenacity despite failure.

b. is young and energetic, passion for the business, product/customer focus, and seeks
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recognition.
c. passion for the business, tenacity despite failure, product/customer focus, and execution
intelligence.
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d. is on the cutting edge of technological change, is forward thinking, tenacity despite failure,
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and product/customer focus.

29. According to the main textbooks, entrepreneurs are ______ risk takers.

a. forceful
b. moderate
c. high
d. low

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 30. Suppose you are a Small Business Development Center counsellor and you’re looking at the
personality profiles of five potential entrepreneurs. Based on the profiles, which individual has the
most desirable mix of personal characteristics to become a successful entrepreneur?

a. Candidate A: creative, decisive, moderate risk taker.

b. Candidate B: seeks recognition, self-starter, strong work ethic.
c. Candidate C: visionary, high risk taker, energetic.
d. Candidate D: high risk taker, achievement motivated, is a networker.

31. Which is the proper sequence of events in developing successful business ideas?

a. opportunity recognition, feasibility analysis, development of a business plan.

b. feasibility analysis, opportunity recognition, development of a business plan.
c. development of a business plan, opportunity recognition, feasibility analysis.

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d. feasibility analysis, development of a business plan, opportunity recognition.

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32. Which of the following the statement is correct?

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a. The major attributes that lenders and venture capitalists looks for in entrepreneurs favour
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younger rather than older entrepreneurs.
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b. Entrepreneurs are born not made.
c. Entrepreneurs tend to be high risk takers.
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d. Studies show that people with parents who were self-employed are more likely to become
entrepreneurs.
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33. Google is an established firm that encourages and emphasizes entrepreneurial behaviour
throughout its various divisions. Hence, Google practices:
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33. – 40. MISSING

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41. Which of the following is not one of the four common myths about entrepreneurs?
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a. Entrepreneurs are networkers.

b. Entrepreneurs are moderate risk takers.
c. Entrepreneurs should be young and energetic.
d. Entrepreneurs love the spotlight.

42. Which of the following is correct regarding opportunities and ideas?

a. An idea almost always meets the criteria of an opportunity.

b. An opportunity is a thought, an impression, or a notion.
c. An idea is a favourable set of circumstances that creates a need for a new product, service or
business.
d. It’s important to discern whether a particular idea meets the tests of an opportunity.

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 43. A(n) _______ is a thought, impression, or notion. A(n) _______ is a favourable set of
circumstances that creates the need for a new product, service, or business.

a. scheme, notion.
b. opportunity, idea
c. idea, design.
d. idea, opportunity.

44. The three ways to identify an opportunity include:

a. observing trend, solving a problem, and finding gaps in the marketplace.

b. studying industry trade journals, talking to consumers, and solving a problem.
c. observing trends, conducting brainstorming sessions, and studying industry trade journals.
d. observing trends, talking to consumers and finding gaps in the marketplace.

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45. The process of perceiving the possibilities of a profitable new business, product or service idea

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to refer to as:

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a. inspired detection.
b.
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idea confirmation.
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c. opportunity recognition.
d. Inspired discovery.
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46. According to entrepreneurship textbooks, opportunities are:

a. tough to spot.
b. easy to spot in the service sector but though to spot in the manufacturing sector.
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c. easy to spot in the manufacturing sector but tough to spot in the service sector.
d. neither easy nor tough to spot.
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47. An individual that identifies a business idea by himself is considered a:

a. separate entrepreneur.
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b. solitary entrepreneur.
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c. individualistic entrepreneur.
d. individual entrepreneur.

48. ______ is the process of generating a novel or useful idea.

a. Innovation
b. Imagining
c. Creativity
d. Visualization

49. – 55. MISSING

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 56. Entrepreneurs must reach a balanced situation between ______ and ______.

a. Being a financial executive and a marketeer.

b. Being a president and vice-president.
c. taking chances and carefully evaluate decisions.
d. Taking chances and accepting to be wrong.

57. There are three important things that a business can do to prepare for growth:

a. plan for growth, adopt a growth-oriented business, and stay committed to a core strategy.
b. appreciate the nature of business growth, stay committed to a core strategy, and plan
growth.
c. develop viral marketing campaign, stay committed to a core strategy, and adopt a growth-
oriented business model.

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d. develop business partnerships, diversity beyond the company’s core strategy, and appreciate

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the nature of business growth.

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58. Economic forces impact the opportunities available to entrepreneurs. Which of the following
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alternatives reflects a set of economic forces that would be of interest to entrepreneurs?
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a. new technologies, consumers spending patterns, and new laws.
b. new changes in political areas, new laws, and level of disposable income.
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c. level of disposable income, new uses of old technologies, and new laws and regulations.
d. interest rates, consumers spending patterns, and level of disposable income.
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59. When analysing a venture’s feasibility, focus should be on:

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a. financial resources in manufacturing ventures and non-financial resources in service

ventures.
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b. financial resources in service ventures and non-financial resources in manufacturing

ventures.
c. financial resources and non-financial resources equally.
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d. non-financial resources.
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60. Which of the following is an example of an industry-level opposed to a firm-level factor?

a. a firm’s assets
b. a firm’s culture
c. the teamwork among a firm’s employes
d. threat to new entrants

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