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1
As presented in “Wanted: Entrepreneurs (Just Don’t Ask for a Job Description),” an entrepreneur is like a Heffalump in that:
A)no one knows what either one is.
B)they are both mythical, make-believe creatures.
C)they are both mythical, make-believe creatures.
D)they are both extinct.
2
According to “Wanted: Entrepreneurs (Just Don’t Ask for a Job Description),” research has shown that economic growth is strongly associated with the:
A)creation of new firms.
B)stability of long-term companies.
C)integration of small start-up companies into larger existing firms.
D)rejection of new ideas in favor of time-tested ways of operating.
3
As noted in “Wanted: Entrepreneurs (Just Don’t Ask for a Job Description),” research has shown that all firms develop in
A)True
B)False
4
As presented in “An Idea Whose Time Has Come,” entrepreneurship has been driven from the shadows into a competitive business model due to:
A)the economic downturn.
B)technological innovations.
C)wealthy investors.
D)the increasing availability of small-business loans.
5
As defined in “An Idea Whose Time Has Come,” “cloud computing” refers to:
A)running an online business.
B)communicating via computer while flying.
C)unrealistic goals and expectations for a small business.
D)using a personal computer to gain access to business solutions.
6
As noted in “An Idea Whose Time Has Come,” only the very wealthy can realistically achieve the goal of entrepreneurship.
A)True
B)False
7
As claimed in “Creative Disruption,” the false assumption under which many models of competition, innovation, and productivity have been based is that:
A)these three components are completely unrelated.
B)competition must exist in order for innovation to exist.
C)innovation is a smooth and problem-free process.
D)productivity can be empirically measured.
8
As profiled in “Creative Disruption,” economist Joseph Schumpeter advanced the Austrian school of thought, which as based on the theory that:
A)innovation is a destructive economic influence.
B)monopolies and innovation are closely related.
C)new firms are unable to compete with established firms.
D)monopolies are barriers to successful innovation.
9
As presented in “Creative Disruption,” Kenneth Arrow’s “replacement effect” argued that monopolies were less likely than firms in a competitive market to take on the additional costs of innovation.
A)True
B)False
10
As claimed in “The World Discovers the Laffer Curve,” the most important economic policy trend on the planet today is the:
A)move toward technological innovation.
B)development of small, entrepreneurial enterprises.
C)tax-cutting revolution.
D)increase in government spending.
11
As profiled in “The World Discovers the Laffer Curve,” Bulgaria is a country with a:
A)low flat-tax rate.
B)graduated tax rate.
C)high flat-tax rate.
D)no-tax policy.
12
As noted in “The World Discovers the Laffer Curve,” President Ronald Reagan was the primary influence behind higher tax rates for the wealthy in the United States.
A)True
B)False
13
As set forth in "Building Entrepreneurial Economies," the American entrepreneurial system is composed of:
A)high-impact entrepreneurs, the government, small mature firms, and private colleges.
B)universities, small businesses, the government, and large businesses.
C)high-impact entrepreneurs, large mature firms, the government, and universities.
D)start-up firms, large established firms, state universities, and state governments.
14
As stated in "Building Entrepreneurial Economies," research on entrepreneurship shows that:
A)in 2003, approximately 20 out of every 100 working adults in the United States was engaged in entrepreneurial activity.
B)most net new jobs are created either by start-up activity or by firms in a rapid-expansion phase.
C)during the early 2004, one fourth of the venture-capital dollars in the United States were invested in early-stage companies.
D)Japan has the second-highest per-capita rate of entrepreneurial activity of 37 countries studied.
15
According to "Building Entrepreneurial Economies," new firms should be regarded as adversaries of established businesses.
A)True
B)False
16
According to “The Role of Small and Large Businesses in Economic Development,” successfully bringing new jobs and economic growth to a region today involves:
A)offering tax breaks and other financial incentives to large, established firms.
B)joining with other jurisdictions to bring in one or two large firms.
C)creating an environment conducive to the creation of many small businesses.
D)enticing a major entrepreneur to relocate to the area.
17
As claimed in “The Role of Small and Large Businesses in Economic Development,” the location of a new large firm in an area can serve to:
A)substantially increase the availability of jobs in the area.
B)discourage other enterprises that might have located there.
C)encourage the creation of competitive startups.
D)increase the personal wealth of citizens in the area.
18
As noted in “The Role of Small and Large Businesses in Economic Development,” it is often less costly and more successful to expand existing firms than to bring in new ones.
A)True
B)False
19
As mentioned by two of the entrepreneurs in "Success Rules!" financial success is not everything. They make suggestions for attaining lifestyle success also, including all of the following except:
A)do what you want to do.
B)seek out quality, supportive relationships.
C)maintain a vision for all areas of your life.
D)invest time and energy in your business and enjoy health and wealth later in life.
20
As recounted in "Success Rules!" Cash Nickerson's advice does not include:
A)continue collecting your corporate paycheck while launching your start-up.
B)start with the exit in mind.
C)share equity with your employees.
D)do not lie to yourself when things are not going well.
21
As discussed in "Success Rules!" many successful entrepreneurs leave corporate jobs to launch their own businesses.
A)True
B)False
22
Among the characteristics of successful entrepreneurs that are cited in “The Greatest Entrepreneurs of All Time” are all of the following except:
A)they transformed their times
B)ultimately, they gave away their fortunes.
C)a belief in the democratization of commerce.
D)they bet on the masses.
23
As profiled in “The Secrets of Serial Success,” Tom Scott and Tom First can be considered serial entrepreneurs because they:
A)attempted to start several businesses before they were finally successful.
B)started several related businesses at once.
C)started a business, sold it, and successfully retired.
D)sold their successful business, and then went on to start various other businesses.
24
As claimed in “The Secrets of Serial Success,” the most crucial challenge for repeat entrepreneurs is to:
A)find investors for their new business schemes.
B)figure out how to rekindle the emotions that fueled their first enterprise.
C)discover new creative talent to bring into their new venture.
D)find a trusted partner to work with in the new business.
25
As noted in “The Secrets of Serial Success,” most serial entrepreneurs are motivated by money, and the more they can make, the happier they are.
A)True
B)False
26
As profiled in “Startups in a Downturn,” the profound lesson that the history of Cisco Systems can teach is that:
A)companies should never be started in an economic downturn.
B)stock-market fluctuations can make or break a company.
C)a company does not need investors to succeed.
D)great companies can be built during tough economic times.
27
As reported in “Startups in a Downturn,” the recession of the mid-1970s saw the creation of all of the following businesses except:
A)Apple.
B)Hewlett-Packard.
C)Genentech.
D)Atari.
28
As claimed in “Startups in a Downturn,” if a product meets an unmet need, it will generally succeed even if the economy is bad.
A)True
B)False
29
According to “So, You Want to Be an Entrepreneur?,” would-be entrepreneurs should expect to get the majority of their start-up capital from:
A)friends and family.
B)venture capitalists and angel investors.
C)bank loans.
D)their own assets.
30
As claimed in “So, You Want to Be an Entrepreneur?,” financial stability in a new business:
A)generally occurs within the first year.
B)often takes eight or more years to achieve.
C)should not be a major consideration when starting a business.
D)is one of the easiest goals to achieve.
31
As noted in “So, You Want to Be an Entrepreneur?,” research has found that most entrepreneurs tend to be indecisive and avoid decision-making if possible.
A)True
B)False
32
As presented in “The B!g Idea,” the key to becoming a successful entrepreneur is to:
A)work hard all the time.
B)surround yourself with good staff people.
C)have the audacity to believe in yourself and your ideas.
D)find an investment banker willing to take risks.
33
According to “How to Build a Bulletproof Startup,” the first step in starting a new business is to:
A)find investors.
B)create a product.
C)advertise.
D)test the idea.
34
As outlined in “How to Build a Bulletproof Startup,” the ideal founding team for a new company consists of all of the following members except:
A)an interested customer.
B)an ace technologist.
C)a dealmaker.
D)a strategic thinker.
35
As presented in “How to Build a Bulletproof Startup,” an initial advisory board should consist of a few trusted friends and associates.
A)True
B)False
36
According to “Market Research on the Cheap,” the first stop before introducing a new product or launching a new business should be to:
A)create a pie chart or spreadsheet reflecting potential customers.
B)visualize who might buy the product or use the service.
C)directly interact with the people who will buy the product.
D)pay a research firm to survey potential customers.
37
As claimed in “Market Research on the Cheap,” as a new business owner, you should interview your potential customers:
A)in person.
B)using a professional interviewer.
C)in the same way you plan to sell to them.
D)using a variety of different tools.
38
As stated in “Market Research on the Cheap,” one problem with Internet surveys is that they are unable to target a specific audience.
A)True
B)False
39
As presented in “20 Reasons Why You Need a Business Plan,” a business plan is necessary to prove to yourself that you:
A)can write a plan.
B)have a viable business.
C)are committed to building your business.
D)are cut out to be an entrepreneur.
40
As defined in “20 Reasons Why You Need a Business Plan,” a milestone is a:
A)short-term stepping stone to larger goals.
B)significant development in your business.
C)barrier to overcome.
D)minor adjustment or tweak that you might need to make to your business.
41
As claimed in “20 Reasons Why You Need a Business Plan,” a business plan must show investors exactly how you plan to make money with your business.
A)True
B)False
42
As claimed in “20 Reasons Why You Need a Business Plan,” a business plan must show investors exactly how you plan to make money with your business.
A)how the product or service will be received by the consumer.
B)how the product or service meets new consumer needs.
C)the macroeconomic and regulatory environment.
D)the venture's market-competitiveness.
43
According to "How to Write a Great Business Plan," the major problem with most business plans is that they:
A)are too long.
B)focus too much on numbers.
C)do not talk about the central product or service idea.
D)are focused on finding investors.
44
As expressed in "How to Write a Great Business Plan," a great business plan is one of the best predictors of a venture's success.
A)True
B)False
45
Written business plans, as noted in "Outline for a Business Plan: A Proven Approach for Entrepreneurs Only," generally serve as the most effective means of communication between entrepreneurs and:
A)job candidates.
B)suppliers.
C)the management team.
D)potential investors.
46
According to "Outline for a Business Plan: A Proven Approach for Entrepreneurs Only," many entrepreneurs claim that they have not been able to establish a detailed business plan because they:
A)lack the financial skills necessary to create one.
B)do not have time for planning because of all the daily management pressures of a new business.
C)have already found all the investor capital they need for the first year of operation.
D)do not believe potential investors will take the time to examine one carefully.
47
A business plan, as maintained in "Outline for a Business Plan: A Proven Approach for Entrepreneurs Only," should only contain short-term growth estimates, projecting no more than one year into the future.
A)True
B)False
48
According to “The 10 Biggest Business Plan Mistakes,” the company overview in a business plan should be:
A)a lengthy and detailed explanation of the workings of the entire company.
B)as vague as possible, so the actual working business can define itself.
C)short, concise, and compelling.
D)the last thing a reader sees.
49
As claimed in “The 10 Biggest Business Plan Mistakes,” the biggest mistake in a business plan with regard to company information is:
A)presenting only a skeletal concept of the type of team you will have.
B)including too many key players.
C)supplementing your team with advisers.
D)presenting only a one- or two-person business team.
50
As argued in “The 10 Biggest Business Plan Mistakes,” it is always best to overestimate your projected revenues in order to impress prospective investors.
A)True
B)False
51
According to “Writing a Compelling Executive Summary,” the job of an executive summary is to:
A)describe.
B)inform.
C)sell.
D)elaborate.
52
As presented in “Writing a Compelling Executive Summary,” the length of a good executive summary is:
A)one page.
B)the number of pages it takes to fully explain your business.
C)six to eight paragraphs.
D)two to three pages.
53
As claimed in “Writing a Compelling Executive Summary,” the larger and more broadly defined your company’s target market, the more impressive your executive summary will be.
A)True
B)False
54
As claimed in “The People’s Bank,” when borrowing from friends and family to fund a business, the primary focus should be on the:
A)emotional relationship.
B)financial relationship.
C)amount of money borrowed.
D)success of the business.
55
According to “The People’s Bank,” a financial arrangement between an entrepreneur and his or her informal investors should be:
A)casual and friendly, with few formalized expectations.
B)strictly business, with no acknowledgment of a personal relationship.
C)businesslike, with formalized agreements, but with an eye to the personal.
D)established and then rarely discussed, to keep it from interfering with the personal relationship.
56
As noted in “The People’s Bank,” for most startups, debt is a better arrangement than equity.
A)True
B)False
57
As presented in “Angel Investment Criteria,” angel investors are those investors who:
A)rescue an established company that is failing.
B)provide early-stage financing for a new company.
C)provide later-stage financing once a company is up and running.
D)offer small amounts of seed money for any basic business idea that is presented to them.
58
According to “Angel Investment Criteria,” one important difference between angel investors and venture capitalists (VCs) is that angel investors:
A)perform more due diligence prior to an investment.
B)invest other people’s money.
C)have little entrepreneurial experience themselves.
D)become more personally involved in the companies in which they invest.
59
As noted in “Angel Investment Criteria,” research shows that angel investors tend to be more attracted to the people involved in a project than in the idea behind the project.
A)True
B)False
60
According to “Venture Capital 101: What is Venture Capital?,” venture capital firms are interested in funding:
A)established, mature organizations that need extra cash.
B)startup companies that are similar to large, successful companies that already exist.
C)would-be entrepreneurs in the process of brainstorming various ideas.
D)innovative and promising startup companies.
61
As reported in “Venture Capital 101: What is Venture Capital?,” a typical venture capitalist firm expects a new company to mature:
A)over a period of five to eight years.
B)within the first few months of launch.
C)prior to seeking funding.
D)during the first investment “round.”
62
As noted in “Venture Capital 101: What is Venture Capital?,” for every 100 business plans that come to a venture capital firm, only one ends up getting funded.
A)True
B)False
63
As highlighted in "Pursuing Venture Capital," the most knowledgeable entrepreneurs with the best deals still:
A)get better tax breaks from the government.
B)keep their eye on the bottom line.
C)consistently refuse buyout offers.
D)receive multiple competitive offers from financiers vying for the best chance to invest in their companies.
64
As noted in "Pursuing Venture Capital," as an entrepreneur seeking venture capital, you are:
A)too much in the public arena.
B)risking all and gaining nothing.
C)at the most fundamental level, a seller.
D)always competitive.
65
One of the biggest challenges entrepreneurs face when pursuing funding is gaining access to venture capitalists, as pointed out in "Pursuing Venture Capital."
A)True
B)False
66
As presented in “Evaluating a Venture Capital Firm to Meet Your Company’s Needs,” as an entrepreneur, you should select a venture-capital firm in the same way that you would select a:
A)new idea.
B)bank for a loan.
C)management team.
D)house, car, or other large purchase.
67
As claimed in “Evaluating a Venture Capital Firm to Meet Your Company’s Needs,” the single most important written document in the early years of your firm is your:
A)loan application.
B)business plan.
C)resume.
D)contract with a venture-capital firm.
68
As noted in “Evaluating a Venture Capital Firm to Meet Your Company’s Needs,” the longer and more detailed your business plan, the better chance you have of getting funded.
A)True
B)False
69
According to “Perfecting Your Pitch,” the purpose of your pitch to a venture capitalist is to:
A)teach.
B)enlighten.
C)sell.
D)entertain.
70
As explained in “Perfecting Your Pitch,” an important thing to consider when preparing the slide presentation for your pitch is that it should:
A)be presented in a very specific order.
B)contain as many slides as possible.
C)leave questions in the investor’s mind.
D)be flexible enough to allow for your specific situation.
71
As claimed in “Perfecting Your Pitch,” most venture capitalists are more concerned about finding the right fit with a company than with how much money the company will make for them.
A)True
B)False
72
As presented in “Writing and Negotiating Term Sheets with a View toward Success,” the principal reason for a term sheet is to:
A)set up a court-enforceable plan.
B)inform potential investors of the company’s policies.
C)outline the participants’ understanding of a company’s terms.
D)lock in the terms of financing.
73
As claimed in “Writing and Negotiating Term Sheets with a View toward Success,” one of the most strategically important conditions of the business deal is to define the:
A)purpose of the company.
B)composition of the board of directors.
C)company stock options.
D)company’s management team.
74
As noted in “Writing and Negotiating Term Sheets with a View toward Success,” the best term sheet will not allow for waivers of any kind.
A)True
B)False
75
As noted in "How Entrepreneurs Craft Strategies That Work":
A)too much business analysis can be harmful.
B)entrepreneurs can never do too much analysis.
C)slow entry into a new market is less risky than fast entry.
D)there is no benefit in analyzing a new market.
76
As reported in "How Entrepreneurs Craft Strategies That Work," most entrepreneurs get their ideas from:
A)researching opportunities.
B)their previous employment.
C)magazine articles.
D)family members.
77
As discussed in "How Entrepreneurs Craft Strategies That Work," entrepreneurs often have to scrap their initial business strategies and start over.
A)True
B)False
78
As noted in "Seven Keys to Shaping the Entrepreneurial Organization," entrepreneurs should hire people who:
A)are affordable--start-up operations cannot afford to break the bank when hiring.
B)can guide themselves.
C)look for their motivation from without--these people will respond best to direction.
D)are mavericks who prefer to work alone rather than in teams.
79
As pointed out in "Seven Keys to Shaping the Entrepreneurial Organization," creating a "we are all in this together" mentality involves:
A)having managers wear matching T-shirts with the company logo.
B)finding out about associates' dreams.
C)getting the entire staff to play team sports after hours.
D)treating everyone within the organization the same.
80
As stated in "Seven Keys to Shaping the Entrepreneurial Organization," the most successful entrepreneurs are "Lone Rangers" who have accomplished their greatness through individual achievement.
A)True
B)False
81
As described in "Characteristics of a Successful Entrepreneurial Management Team," all of the following are early errors committed by entrepreneurs except:
A)underpricing.
B)weak cash management.
C)team inadequacies.
D)an unwillingness to work to succeed.
82
As stated in "Characteristics of a Successful Entrepreneurial Management Team," all of the following are true about successful entrepreneurs except that they:
A)are willing to take high risks.
B)do not learn from failure.
C)use criticism to their benefit.
D)seek personal responsibility.
83
As expressed in "Characteristics of a Successful Entrepreneurial Management Team," most entrepreneurs seeking money from venture-capital firms are not successful.
A)True
B)False
84
According to "Managing Growth," one of the most difficult aspects of the transition period between entrepreneurial and professional management is the:
A)finding of top management talent.
B)necessary changes in entrepreneur behavior and attitude.
C)effort required to plan the formal changeover.
D)act of convincing the board of directors that such changes, and their accompanying expenses, are necessary.
85
A critical component of corporate growth, as related in "Three Strategies for Managing Fast Growth," is:
A)duplication.
B)granulation.
C)knowledge.
D)scaling.
86
According to “The Zappos Way of Managing,” Tony Hsieh’s business, Zappos, revolves around the concept of:
A)making money.
B)corporate expansion.
C)happiness.
D)technological innovation.
87
As explained in “The Zappos Way of Managing,” Zappos creates employee loyalty through:
A)high salaries.
B)a unique corporate culture.
C)exceptional perks and benefits.
D)a signed loyalty oath.
88
As profiled in “The Zappos Way of Managing,” Tony Hsieh had no computer training or experience before stumbling into Zappos.
A)True
B)False
89
According to “Give Me the Bad News,” one of the most important elements in the formula for an entrepreneur’s success is the:
A)amount of support people have for the entrepreneur’s idea.
B)passion the entrepreneur feels for his or her idea or business.
C)funding the entrepreneur can get for the business.
D)negative responses or tough questions the entrepreneur receives when presenting an idea.
90
As discussed in “Give Me the Bad News,” the best person to mentor an entrepreneur through the process of starting a new business is:
A)a close friend or family member.
B)someone who has both succeeded and failed in business.
C)another entrepreneur who is just starting out.
D)someone who has had only successful business ventures.
91
As claimed in “Give Me the Bad News,” if everyone likes an entrepreneur’s idea for a new venture, it is likely the venture will succeed.
A)True
B)False
92
As presented in “Ask an Angel: Berkus on Building a Board of Directors,” the primary role of an angel investor on a board of directors is to:
A)invest financially in the company.
B)monitor management.
C)recruit other board members.
D)help the company grow.
93
According to “Ask an Angel: Berkus on Building a Board of Directors,” as a board member, an angel’s legal responsibility is to the:
A)corporation.
B)shareholders.
C)vendors.
D)employees.
94
As claimed in “Ask an Angel: Berkus on Building a Board of Directors,” small-company or startup boards have the luxury of being more casual and flexible than big-company boards.
A)True
B)False
95
As profiled in “Why a CEO Needs to Have a Plan B: An Interview with Jack Stack,” Jack Stack’s original business was founded with an eye toward:
A)making money.
B)avoiding layoffs.
C)expanding into diverse product areas.
D)launching an innovative new product.
96
As asserted in “Why a CEO Needs to Have a Plan B: An Interview with Jack Stack,” the best means to avoid complacency in business is to look for:
A)vulnerabilities in the company.
B)startup opportunities.
C)investment opportunities.
D)eager new employees.
97
As claimed in “Why a CEO Needs to Have a Plan B: An Interview with Jack Stack,” having to lay off employees signals a failure of management.
A)True
B)False
98
According to “Top Ten Reasons Why Startups Fail (Venture Capital),” ideally, the founders of a company will:
A)be alike in their personality and strengths.
B)share responsibilities with no clear lines of demarcation.
C)complement each other’s interests and skills regarding customers and operations.
D)avoid frank discussions that could cause disagreements and damage the company.
99
As presented in “Top Ten Reasons Why Startups Fail (Venture Capital),” most successful CEOs will hire employees who are:
A)friends or family members.
B)smarter or more skilled in a certain area than the CEO.
C)less knowledgeable and weaker than the CEO.
D)comfortable with the status quo.
100
As claimed in “Top Ten Reasons Why Startups Fail (Venture Capital),” most successful startup companies focus on a broad, undefined market.
A)True
B)False
101
According to “Taking Social Entrepreneurship Seriously,” one of the major problems for social entrepreneurship is that:
A)social problems cannot be solved using a business model.
B)very few people are interested in becoming social entrepreneurs.
C)the government already has satisfactory programs in place to deal with social ills.
D)most people do not take the concept seriously or want to invest resources in it.
102
As detailed in “Taking Social Entrepreneurship Seriously,” a turning point in the evolution of human social organization came when:
A)the government took over the work of charities in dealing with the poor.
B)giving to the poor became an acceptable social practice.
C)economic development eliminated the need for social programs.
D)science discovered what would work effectively to eliminate social problems.
103
As claimed in “Taking Social Entrepreneurship Seriously,” radical breakthroughs are needed in order to help solve social needs and problems.
A)True
B)False
104
As defined in “The Microfinance Revolution,” microfinance can be considered the act of providing:
A)loans to poor or disadvantaged borrowers.
B)a range of financial services to the poor or disadvantaged
C)financing for small startups wishing to compete in the global marketplace.
D)financing for companies to allow them to hire disadvantaged workers.
105
As presented in “The Microfinance Revolution,” “Grameencredit” differs from other forms of microcredit in that it:
A)has a very low interest rate.
B)provides very small loans of $100 or less.
C)does not require loan repayment.
D)does not require collateral or legally enforceable contracts.
106
As claimed in “The Microfinance Revolution,” the vast majority of microcredit loans are never repaid.
A)True
B)False
107
As presented in “The Hidden Economy of Nonprofits,” one key reason to develop a clearer understanding of nonprofits is because they are:
A)failing at a rapid rate.
B)fertile grounds for corruption and abuse.
C)growing disproportionately to the economy as a whole.
D)creating failure in the for-profit sector.
108
As claimed in “The Hidden Economy of Nonprofits,” the largest chunk of nonprofit revenue comes from:
A)fees for service.
B)charitable donations.
C)government grants.
D)private investors.
109
As noted in “The Hidden Economy of Nonprofits,” gathering employment data on nonprofits would not provide accurate data because there are so many volunteers providing labor to nonprofit organizations.
A)True
B)False
110
As presented in “Eminence Green,” Patagonia’s corporate culture is reflected by its:
A)suit-and-tie dress code.
B)casual office environment.
C)strict business codes.
D)lax product standards.
111
As reported in “Eminence Green,” Patagonia founder Yvon Chouinard’s “environmental assessment” of product materials involves:
A)determining the environmental impact of the materials used.
B)finding the cheapest materials possible.
C)using only natural and organic fibers and other materials.
D)finding materials that can be safely discarded after use.
112
As claimed in “Eminence Green,” natural materials are far more environmentally friendly than synthetics.
A)True
B)False
113
According to "Managing Global Expansion: A Conceptual Framework," a company interested in becoming global should:
A)follow a particular, well-established plan.
B)avoid local competition.
C)enter all markets at once.
D)use an approach of directed opportunism.
114
As discussed in "Managing Global Expansion: A Conceptual Framework," the Ritz-Carlton's approach to embed its corporate DNA in Shanghai, China, began with:
A)replacing employees with imported workers.
B)using local management personnel to make decisions.
C)renovation of the employee entrance and washrooms.
D)upgrading customer facilities.
115
As explained in "Managing Global Expansion: A Conceptual Framework," the greater the degree of adaptation a product requires, the greater the risk of failure.
A)True
B)False
116
According to “The Global Entrepreneur,” in today’s global marketplace, startup companies are increasingly:
A)establishing solid roots at home before venturing into foreign turf.
B)expanding quickly but cautiously into territories close to home.
C)setting up major factories at home and subsidiaries abroad upon startup.
D)globalizing immediately, utilizing the best manufacturing locations and the best worldwide talent.
117
As presented in “The Global Entrepreneur,” an offensive, rather than defensive, reason for an entrepreneur to cross borders might be to:
A)compete with similar enterprises.
B)use distance to create a new product or service.
C)attract the interest of a venture capitalist.
D)make a product or service more accessible to consumers.
118
As claimed in “The Global Entrepreneur,” diaspora networks can be instrumental in helping entrepreneurs succeed in the global marketplace.
A)True
B)False
119
Harvesting, as described in "Harvesting Firm Value: Process and Results," is the practice of:
A)gaining the cash return on the original investment in the company.
B)diversifying a large company into several smaller, independent units.
C)ensuring that retirement benefits will be in place for as long as the company is in business.
D)gradually buying out investors so that a company remains the sole property of the founder.
120
The creation of a harvest strategy, as explained in "Harvesting Firm Value: Process and Results," is best done:
A)prior to creating the first business plan for a new company.
B)when a company has reached its maximum growth potential.
C)as soon as the founders of a company have paid off outstanding debts.
D)early in the company's growth phase, as an ongoing project.
121
In the United States, as noted in "Harvesting Firm Value: Process and Results," households have invested far more of their assets in privately held firms than in the public stock market.
A)True
B)False
122
As stated in "Choosing Your Exit Strategy," U.S. tax laws are a huge factor in an entrepreneur's decision to exit a business by:
A)selling to employees.
B)selling to an individual or other independent business.
C)passing control to heirs.
D)deciding to go public.
123
The disadvantages to an entrepreneur who sells a business to another individual or business include, according to "Choosing Your Exit Strategy," all of the following except:
A)losing liquidity in one's personal estate.
B)giving up one's "life work."
C)giving up control of one's business.
D)passing up the opportunity to further grow the business and its value.
124
As advised in "Choosing Your Exit Strategy," entrepreneurs should wait several years to choose an exit strategy to see how their business develops.
A)True
B)False





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