MGMT 325 TEST 2 QUESTIONS AND ANSWERS ALREADY PASSED LATEST UPDATE 2025-
2026
_____ occurs when an enterprising individual pursues a lucrative opportunity.
A. Bootlegging
B. Franchising
C. Intrapreneurship
D. Entrepreneurship
E. Business incubation - Answers Entrepreneurship
According to many entrepreneurs and observers, when creating a new business, one should
start with:
A. strategic positioning.
B. social capital.
C. great ideas.
D. domain selection.
E. social responsibility. - Answers great ideas.
With which of the following models does a site pay commissions to other sites to drive
business to its own sites?
A. Transaction fee model
B. Advertising support model
C. Intermediary model
D. Affiliate model
E. Subscription model - Answers Affiliate model
Bringing buyers and sellers together and charging a commission for each sale is known as the
_____ model.
A. transaction fee
B. advertising support
C. intermediary
,D. affiliate
E. subscription - Answers intermediary
The Draconian Times requires regular viewers of its online articles to pay a monthly fee to
maintain uninterrupted access to its content. This is an example of the _____ model.
A. bootlegging fee
B. advertising support
C. intermediary
D. affiliate
E. subscription - Answers subscription
Dr. Gerry began helping women in South Rhodia obtain microloans. This act is a typical example
of:
A. social entrepreneurship.
B. skunkworks.
C. the subscription model.
D. bootlegging.
E. business incubation. - Answers social entrepreneurship.
Generally, which of the following characteristics contributes to entrepreneurs' success?
A. Commitment to work-life balance
B. Tolerance of risk and uncertainty
C. Discounting of own weaknesses
D. Comfort with the status quo
E. Obsession with earning money - Answers Tolerance of risk and uncertainty
What characteristics do successful entrepreneurs who are decisive, tenacious, disciplined, and
willing to sacrifice possess?
A. Leadership
B. Commitment and determination
C. Opportunity obsession
, D. Creativity, self-reliance, and ability to adapt
E. Motivation to excel - Answers Commitment and determination
Most small business ventures are in the _____ category of the entrepreneurial strategy matrix.
A. high innovation/high risk
B. low innovation/low risk
C. high innovation/low risk
D. low innovation/high risk
E. high investment/low risk - Answers low innovation/high risk
A novel product idea that involves a large financial investment would be categorized as
involving:
A. high innovation/low risk.
B. high innovation/high risk.
C. low innovation/low risk.
D. low innovation/high risk.
E. low innovation/uncertain risk. - Answers high innovation/high risk.
Which of the following is one of the major liabilities of start-ups?
A. Acuteness
B. Completeness
C. Validness
D. Complexness
E. Smallness - Answers Smallness
Success of entrepreneurial ventures is often jeopardized by the death of the founder. Which of
the following is an important measure to minimize this problem?
A. Conservative use of funds
B. Adequate succession planning
C. Systematic recordkeeping
2026
_____ occurs when an enterprising individual pursues a lucrative opportunity.
A. Bootlegging
B. Franchising
C. Intrapreneurship
D. Entrepreneurship
E. Business incubation - Answers Entrepreneurship
According to many entrepreneurs and observers, when creating a new business, one should
start with:
A. strategic positioning.
B. social capital.
C. great ideas.
D. domain selection.
E. social responsibility. - Answers great ideas.
With which of the following models does a site pay commissions to other sites to drive
business to its own sites?
A. Transaction fee model
B. Advertising support model
C. Intermediary model
D. Affiliate model
E. Subscription model - Answers Affiliate model
Bringing buyers and sellers together and charging a commission for each sale is known as the
_____ model.
A. transaction fee
B. advertising support
C. intermediary
,D. affiliate
E. subscription - Answers intermediary
The Draconian Times requires regular viewers of its online articles to pay a monthly fee to
maintain uninterrupted access to its content. This is an example of the _____ model.
A. bootlegging fee
B. advertising support
C. intermediary
D. affiliate
E. subscription - Answers subscription
Dr. Gerry began helping women in South Rhodia obtain microloans. This act is a typical example
of:
A. social entrepreneurship.
B. skunkworks.
C. the subscription model.
D. bootlegging.
E. business incubation. - Answers social entrepreneurship.
Generally, which of the following characteristics contributes to entrepreneurs' success?
A. Commitment to work-life balance
B. Tolerance of risk and uncertainty
C. Discounting of own weaknesses
D. Comfort with the status quo
E. Obsession with earning money - Answers Tolerance of risk and uncertainty
What characteristics do successful entrepreneurs who are decisive, tenacious, disciplined, and
willing to sacrifice possess?
A. Leadership
B. Commitment and determination
C. Opportunity obsession
, D. Creativity, self-reliance, and ability to adapt
E. Motivation to excel - Answers Commitment and determination
Most small business ventures are in the _____ category of the entrepreneurial strategy matrix.
A. high innovation/high risk
B. low innovation/low risk
C. high innovation/low risk
D. low innovation/high risk
E. high investment/low risk - Answers low innovation/high risk
A novel product idea that involves a large financial investment would be categorized as
involving:
A. high innovation/low risk.
B. high innovation/high risk.
C. low innovation/low risk.
D. low innovation/high risk.
E. low innovation/uncertain risk. - Answers high innovation/high risk.
Which of the following is one of the major liabilities of start-ups?
A. Acuteness
B. Completeness
C. Validness
D. Complexness
E. Smallness - Answers Smallness
Success of entrepreneurial ventures is often jeopardized by the death of the founder. Which of
the following is an important measure to minimize this problem?
A. Conservative use of funds
B. Adequate succession planning
C. Systematic recordkeeping
