ENT 2113 STUDY GUIDE QUESTIONS
WITH 100% CORRECT ANSWERS
What started the initial development of the United States' large industrial base in the
1880s? - Answer- Robber barons (Andrew Carnegie, John D. Rockefeller, Cornelius
Vanderbilt)
What affect did the Robber Barons' domination over certain industries have on
entrepreneurial businesses in the United States? - Answer- Entrepreneurial businesses
continued to thrive
What are some examples of stakeholders in a business? - Answer- - Key suppliers
- Customers
- Employees
What are some well-known areas for generating new employment with entrepreneurial
success, providing a growing tax revenue base, and providing a basis for significant
improvements in the area's economic vitality? - Answer- - North Carolina's research
triangle
- Austin, Texas
- Denver-Fort Collins Innovation Corridor
- Silicon Valley
- Boston's 128 corridor
What program is growing across the United States to help start new entrepreneurial
businesses in areas? - Answer- Economic gardening (an example of this can be seen
from Littleton, Colorado, where the program has been used to add 15,000 jobs to the
area.
How do entrepreneurial businesses act as catalysts for societal change? - Answer- -
They have the ability to garner profits in areas that have been ignored by large
corporations
- The owners and employees have an understanding of the local community not easily
obtains by large conglomerates
Studies have found that what type of people often form new businesses? - Answer-
People who are facing a crisis from the closure of an existing business
What did the federal General Accounting Office find when it analyzed the impact of
military base closures? - Answer- It found that in cities with base closings, the areas
, around the bases had unemployment rates lower than the national average and income
growth higher than the national average
What are the five categories you should consider when considering business ideas? -
Answer- 1. Business idea
2. Category
3. Our resources
4. Resources required
5. Deficit
What specific categories does an entrepreneur need to consider when comparing
business ideas? - Answer- 1. Finances
2. Time
3. Nonfinancial resources
4. Risk
What is a principal cause of new business failure? - Answer- Insufficient resources at
founding
What are the three risks to business success? - Answer- 1. Threats to profit margin
2. Threats to sales generation schemes
3. Threats to operational financing
Threats to profit margin - Answer- The threats created to the success of a new venture
related to its ability to establish and maintain a high-margin product or service
Fortune 500 - Answer- List published annually by Fortune magazine listing the 500
largest corporations (by sales) in the United States
Economies of scale - Answer- A condition that allows the long-run average cost to
continue downward as production increases
3 Critical Elements Entrepreneur's Must Solve: - Answer- 1. An effective sales
generation model
2. Sustainable operating profit margins
3. Being properly financed
Stakeholders - Answer- Individuals or other organizations that impact the success of a
business
Harvest plan - Answer- A plan to exit the small business (this typically means to sell the
business to another firm or take it to an IPO).
What does the United States Small Business Administration do? - Answer- - Aids,
counsels, and protect the interests of small businesses
WITH 100% CORRECT ANSWERS
What started the initial development of the United States' large industrial base in the
1880s? - Answer- Robber barons (Andrew Carnegie, John D. Rockefeller, Cornelius
Vanderbilt)
What affect did the Robber Barons' domination over certain industries have on
entrepreneurial businesses in the United States? - Answer- Entrepreneurial businesses
continued to thrive
What are some examples of stakeholders in a business? - Answer- - Key suppliers
- Customers
- Employees
What are some well-known areas for generating new employment with entrepreneurial
success, providing a growing tax revenue base, and providing a basis for significant
improvements in the area's economic vitality? - Answer- - North Carolina's research
triangle
- Austin, Texas
- Denver-Fort Collins Innovation Corridor
- Silicon Valley
- Boston's 128 corridor
What program is growing across the United States to help start new entrepreneurial
businesses in areas? - Answer- Economic gardening (an example of this can be seen
from Littleton, Colorado, where the program has been used to add 15,000 jobs to the
area.
How do entrepreneurial businesses act as catalysts for societal change? - Answer- -
They have the ability to garner profits in areas that have been ignored by large
corporations
- The owners and employees have an understanding of the local community not easily
obtains by large conglomerates
Studies have found that what type of people often form new businesses? - Answer-
People who are facing a crisis from the closure of an existing business
What did the federal General Accounting Office find when it analyzed the impact of
military base closures? - Answer- It found that in cities with base closings, the areas
, around the bases had unemployment rates lower than the national average and income
growth higher than the national average
What are the five categories you should consider when considering business ideas? -
Answer- 1. Business idea
2. Category
3. Our resources
4. Resources required
5. Deficit
What specific categories does an entrepreneur need to consider when comparing
business ideas? - Answer- 1. Finances
2. Time
3. Nonfinancial resources
4. Risk
What is a principal cause of new business failure? - Answer- Insufficient resources at
founding
What are the three risks to business success? - Answer- 1. Threats to profit margin
2. Threats to sales generation schemes
3. Threats to operational financing
Threats to profit margin - Answer- The threats created to the success of a new venture
related to its ability to establish and maintain a high-margin product or service
Fortune 500 - Answer- List published annually by Fortune magazine listing the 500
largest corporations (by sales) in the United States
Economies of scale - Answer- A condition that allows the long-run average cost to
continue downward as production increases
3 Critical Elements Entrepreneur's Must Solve: - Answer- 1. An effective sales
generation model
2. Sustainable operating profit margins
3. Being properly financed
Stakeholders - Answer- Individuals or other organizations that impact the success of a
business
Harvest plan - Answer- A plan to exit the small business (this typically means to sell the
business to another firm or take it to an IPO).
What does the United States Small Business Administration do? - Answer- - Aids,
counsels, and protect the interests of small businesses
