ENT 2113 TEST 1 QUESTIONS AND
ANSWERS ALL CORRECT
What term is used to describe the process of systematically examining the difference
between what is expected and what occurs? - Answer- gap analysis
While developing a quality business idea, what should potential business founders
ideally do after evaluating their personal skill sets? - Answer- carefully analyze the
market and look for a gap
The connection between an entrepreneur's skills, understanding of an industry, and the
ability to create a competitive advantage such that the sum of the parts of the new
business is greater than the individual parts alone is called ________. - Answer-
synergy
Before establishing a new business, the first thing founders should do is - Answer- list
their personal skill sets.
In the context of risks to new businesses, identify a true statement about risk tolerance.
- Answer- What constitutes a risk is determined by an entrepreneur by observing his or
her own tolerances.
In the context of business risks, how can an entrepreneur identify competitors to a new
potential business? - Answer- by observing what potential customers do to satisfy their
current needs or wants
An employee cannot sue a small business owner for injury, if the individual accepts -
Answer- Workers compensation
_______ is the quantity and quality of human effort directed toward producing goods
and services - Answer- human resource management
Human resource, as defined in economics is the process of employees in monetary
terms - Answer- False
A partnership will be ruled by the uniform partnership act if - Answer- no partnership
agreement is developed or signed by the parties involved
A board of advisors should have both ______ and ________ to assist small business
owners - Answer- insight; experience
, Which types of patents is issued by the US patents and trademark office? - Answer-
physical and process patents
Identify a true statement about the process of generating new business ides - Answer-
as a business idea evolves, an entrepreneur must be willing to develop a new set of
skills to make it successful
If a new business idea deals with toxic waste such as asbestos it can expect to be
subject so significant regulation of the size of the firm - Answer- True
(T/F) In the late 1970's and 1980's, the united states occupied the dominant economic
position in the world - Answer- False
(T/F) One of the disadvantages of an entrepreneurial business is the burden of creating
and managing organizational policies and procedures. - Answer- False
(T/F) Profit margins are key to successful businesses. - Answer- True
(T/F) Close to 50 percent of the millionaires in the United States are entrepreneurs. -
Answer- True
(T/F) Entrepreneurial business is not important to the U.S. economy. - Answer- False
________________ lead(s) to a condition where a single firm making 100 percent of the
product is the most efficient. - Answer- economies of scale
All of these are harvest plan strategies except - Answer- franchising
The development and implementation of a new business is part ________ and part
________. - Answer- art; science
Which of the following is not a characteristic of a high-growth venture? - Answer- it is
designed to reflect the mission of the founder
What is the percentage of self-employed people in the workforce? - Answer- 20
What term is used to describe individuals or other organizations that impact the success
of a business? - Answer- stakeholders
Women entrepreneurs are starting small businesses for all but which one of the
following reasons? - Answer- better ideas for small business
Which of the following is not a factor in a small business's success? - Answer- other
people's needs and wants are not as important as the small business owner's
ANSWERS ALL CORRECT
What term is used to describe the process of systematically examining the difference
between what is expected and what occurs? - Answer- gap analysis
While developing a quality business idea, what should potential business founders
ideally do after evaluating their personal skill sets? - Answer- carefully analyze the
market and look for a gap
The connection between an entrepreneur's skills, understanding of an industry, and the
ability to create a competitive advantage such that the sum of the parts of the new
business is greater than the individual parts alone is called ________. - Answer-
synergy
Before establishing a new business, the first thing founders should do is - Answer- list
their personal skill sets.
In the context of risks to new businesses, identify a true statement about risk tolerance.
- Answer- What constitutes a risk is determined by an entrepreneur by observing his or
her own tolerances.
In the context of business risks, how can an entrepreneur identify competitors to a new
potential business? - Answer- by observing what potential customers do to satisfy their
current needs or wants
An employee cannot sue a small business owner for injury, if the individual accepts -
Answer- Workers compensation
_______ is the quantity and quality of human effort directed toward producing goods
and services - Answer- human resource management
Human resource, as defined in economics is the process of employees in monetary
terms - Answer- False
A partnership will be ruled by the uniform partnership act if - Answer- no partnership
agreement is developed or signed by the parties involved
A board of advisors should have both ______ and ________ to assist small business
owners - Answer- insight; experience
, Which types of patents is issued by the US patents and trademark office? - Answer-
physical and process patents
Identify a true statement about the process of generating new business ides - Answer-
as a business idea evolves, an entrepreneur must be willing to develop a new set of
skills to make it successful
If a new business idea deals with toxic waste such as asbestos it can expect to be
subject so significant regulation of the size of the firm - Answer- True
(T/F) In the late 1970's and 1980's, the united states occupied the dominant economic
position in the world - Answer- False
(T/F) One of the disadvantages of an entrepreneurial business is the burden of creating
and managing organizational policies and procedures. - Answer- False
(T/F) Profit margins are key to successful businesses. - Answer- True
(T/F) Close to 50 percent of the millionaires in the United States are entrepreneurs. -
Answer- True
(T/F) Entrepreneurial business is not important to the U.S. economy. - Answer- False
________________ lead(s) to a condition where a single firm making 100 percent of the
product is the most efficient. - Answer- economies of scale
All of these are harvest plan strategies except - Answer- franchising
The development and implementation of a new business is part ________ and part
________. - Answer- art; science
Which of the following is not a characteristic of a high-growth venture? - Answer- it is
designed to reflect the mission of the founder
What is the percentage of self-employed people in the workforce? - Answer- 20
What term is used to describe individuals or other organizations that impact the success
of a business? - Answer- stakeholders
Women entrepreneurs are starting small businesses for all but which one of the
following reasons? - Answer- better ideas for small business
Which of the following is not a factor in a small business's success? - Answer- other
people's needs and wants are not as important as the small business owner's
