Entrepreneurship and Small Business Management | Set 3
1. ________ is a strategy designed for situations in which the organization's performance problems are very serious, as reflected by its performance measures.
Correct : B. Turnaround
2. _______ is a radical redesign of the organization's business processes.
Correct : A. Reengineering
3. Which of the following restructuring actions involves laying off employees from their
jobs?
Correct : B. Downsizing
4. ______ involves dissolving or reorganizing a business under the protection of
bankruptcy legislations.
Correct : A. Reengineering
5. Valuation techniques generally fall into any of the following categories EXCEPT:
Correct : B. Earnings valuations
6. Which of the following agencies was created specifically to foster the creation, growth,
and expansion of minority-owned businesses in the United States?
Correct : D. The Federal Reserve
7. Entrepreneurships require financial backing in order to get started in the business world. Which of the following is not one of the methods commonly utilized to obtain the financial resources needed?
Correct : C. Personal finances provided by friends
8. _________ financing is raising money by selling part of the ownership of the business to investors.
Correct : B. Equity
9. Of the following, which one would not be considered an alternative to independent
entrepreneurship?
Correct : D. Extrapreneurship
10. Of the following, which is best identified as an independent entrepreneurship that produces a product or service that originated in a large company?
Correct : C. Trade-off
11. In franchising, the entrepreneur assumes fewer risks because the franchise provides all but
which one of the following?
Correct : D. Oversale of rights
12. Which of the following is the reason for business failure __________.
Correct : D. All the above.
13. Goods or services reach the market place through ________.
Correct : C. monopolies.
14. To provide financial assistance to entrepreneurs the government has set up a number
of___________.
Correct : B. financial intermediaries.
15. State Industrial corporations engage in the development of__________.
Correct : D. agricultural entrepreneurs
16. Competitor analysis begins with:
Correct : C. Documenting the current strategy of each primary competitor.
17. Marketing research begins with:
Correct : C. Identifying direct marketing strategy.
18. Which stage of marketing research is considered to be the most difficult for an entrepreneur
due to lack of knowledge or experience in marketing?
Correct : B. Gathering data from primary sources
19. The major interacting components that enable a firm to successfully provide products to the
marketplace are called the:
Correct : B. Marketing mix.
20. The marketing mix consists of:
Correct : B. Product, research, distribution, and promotion.
21. Market segmentation is the process of:
Correct : A. Describing market conditions.
22. The management team of a new venture:
Correct : D. should be employed elsewhere to assure adequate income.
23. The _____ budget is used to project cash flows for the cost of goods produced.
Correct : B. production
24. Fixed expenses:
Correct : C. Includes labor, raw materials, and commissions.