Business Development
Exam Answer Key
Course Introduction
This course provides a comprehensive overview of business development, focusing on strategies and processes that drive growth within organizations. Students will explore key concepts such as market analysis, strategic partnerships, customer acquisition, value proposition design, and sales pipeline management. Emphasis is placed on identifying new business opportunities, understanding competitive landscapes, and creating sustainable growth plans. Through real-world case studies and practical exercises, learners will develop critical skills in negotiation, networking, and resource allocation necessary to build and expand a successful business in todays dynamic marketplace.
Recommended Textbook
Entrepreneurship Theory Process and Practice 9th Edition by Donald F. Kuratko
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15 Chapters
1181 Verified Questions
1181 Flashcards
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Page 2
Chapter 1: Entrepreneurship: Evolutionary
Development-Revolutionary Impact
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95 Verified Questions
95 Flashcards
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Sample Questions
Q1) Which of the following statements is True?
A) Entrepreneurship is the ability to create and build a vision from practically nothing.
B) Entrepreneurship is pure luck.
C) Entrepreneurship is simply obtaining financing and starting a business.
D) Entrepreneurship has nothing to do with creating incremental wealth.
Answer: A
Q2) The entrepreneur is one who
A) dreams all day.
B) manages.
C) oversees manufacturing.
D) invents new products.
Answer: B
Q3) Entrepreneurs are aggressive catalysts for change within the marketplace.
A)True
B)False
Answer: True
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Page 3
Chapter 2: The Entrepreneurial Mind-Set in Individuals:
Cognition and Ethics
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97 Verified Questions
97 Flashcards
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Sample Questions
Q1) Stress can be dealt with by:
A) networking.
B) delegating.
C) both a and b
D) working harder.
Answer: C
Q2) The metacognitive model of entrepreneurship fails to consider entrepreneurial motivation.
A)True
B)False
Answer: False
Q3) The entrepreneurial ego can cause the entrepreneur to A) have a sense of pessimism.
B) take characteristics that usually lead to success to the extreme.
C) ignore government regulations.
D) take too few risks.
Answer: B
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Page 4
Chapter 3: The Entrepreneurial Mind-Set in Organizations: Corporate Entrepreneurship
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85 Verified Questions
85 Flashcards
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Sample Questions
Q1) Corporate entrepreneurs should be restricted to the resources of their own divisions of the corporation.
A)True
B)False
Answer: False
Q2) In many ways, an I-Team is
A) a small business operating within a large business
B) a small business integrated within other parts of the firm
C) a large business operating within a large business
D) a partnership operating within a small business
Answer: A
Q3) A corporation can encourage entrepreneurship activities if top management sponsors entrepreneurial projects.
A)True
B)False
Answer: True
Q4) Corporate venturing flourishes when a vertical management system is in place.
A)True
B)False Answer: False
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Chapter 4: Social Entrepreneurship and the Global
Environment for Entrepreneurship
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50 Verified Questions
50 Flashcards
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Sample Questions
Q1) Ecopreneurship is a combination of ecologically and economically sustainable development.
A)True
B)False
Q2) Entrepreneurs now view social/environmental issues as
A) global competition.
B) part of the future of business.
C) a minor concern.
D) affecting only certain industries.
Q3) NAFTA (North American Free Trade Agreement) offers strong protection for
A) patents and copyrights
B) patents but not copyrights
C) patents and copyrights but not trade secrets
D) patents, copyrights, and trade secrets
Q4) In the context of benefit corporations, what does transparency refer to?
Q5) During the 1990s, which new issue emerged as affecting entrepreneurs and ethics?
A) misleading advertising
B) misleading financial reporting.
C) favoritism in promotions.
D) the environment.
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Chapter 5: Innovation: The Creative Pursuit of Ideas
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95 Verified Questions
95 Flashcards
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Sample Questions
Q1) Most innovations result from
A) the total genius of inventors.
B) a conscious and purposeful search for new opportunities.
C) lucky guesses.
D) the subconscious adaptation to reality.
Q2) Shifts in consumer tastes and attitudes are an example of
A) a infeasible opportunity.
B) industry and market changes.
C) the fickle consumer.
D) problems for the entrepreneur.
Q3) The phase of the creative process when the idea or solution the individual is seeking is discovered is the
A) background or knowledge accumulation.
B) incubation process.
C) idea experience.
D) evaluation and implementation.
Q4) Researchers uniformly agree that the easiest step in the creative endeavor is the implementation and evaluation phase.
A)True
B)False
Page 7
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Chapter 6: Assessment of Entrepreneurial Opportunities
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82 Verified Questions
82 Flashcards
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Sample Questions
Q1) Venture classifications include which of the following types of venture?
A) hobby ventures
B) smaller copycat ventures
C) high-growth ventures
D) survival ventures
Q2) Failure of a new venture can be avoided
A) by being a high-risk taker.
B) through a careful profile analysis.
C) through both a and c
D) through none of the above.
Q3) A new venture must go through _____ phases.
A) five
B) two
C) three
D) seven
Q4) A product does not have to be patented in order to be introduced into the marketplace.
A)True
B)False
Q5) List and describe three pitfalls in selecting a new venture.
Page 8
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Chapter 7: Pathways to Entrepreneurial Ventures
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75 Verified Questions
75 Flashcards
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Sample Questions
Q1) When does a business have to increase its sales annually to net as much as it did in the previous year?
A) when profits are rising as fast as sales
B) when profits are not rising as fast as sales
C) when sales are trending upward
D) both a and c
Q2) Evaluating franchise opportunities include finding out more about which of the following?
A) the franchisor
B) the franchise
C) the franchisee
D) all of the above
Q3) The FDD contains how many sections?
A) 41
B) 23
C) 9
D) 100
Q4) Briefly explain the new-old approach to creating new ventures.
Q5) Why did the Federal Trade Commission enact the Franchise Rule?
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Chapter 8: Sources of Capital for Entrepreneurs
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86 Verified Questions
86 Flashcards
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Sample Questions
Q1) Which of the following is a True statement about raising capital?
A) All capital is raised through formal sources.
B) All capital is raised through debt sources.
C) Capital is easy to get.
D) It often takes a great deal of time to raise capital.
Q2) Equity capital is often raised through:
A) public stock offerings.
B) option sales.
C) donations.
D) preferred issues.
Q3) Informal risk capitalists are often referred to as "business angels."
A)True
B)False
Q4) Informal investors find projects through
A) newspapers.
B) a network of friends.
C) commercials.
D) banks.
Q5) What is the potential future of social lending with respect to entrepreneurs?
Page 10
Q6) What are the major types and uses of debt financing?
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Chapter 9: Legal Challenges of Entrepreneurial Ventures
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85 Verified Questions
85 Flashcards
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Sample Questions
Q1) Of the following statements, which is True of sole proprietorships?
A) A sole proprietorship is a business that is owned and operated by one person.
B) Proprietors have limited liability for the operation.
C) Proprietors are taxed as businesses.
D) Ordinarily, proprietorships have amounts of capital available to them equal to that available to other types of business organizations.
Q2) If infringement can be proven in court, an award may be given to the trademark holder.
A)True
B)False
Q3) Copyrights have to be registered with the Copyright Office.
A)True
B)False
Q4) The determination of fair use of copyrighted material is based on
A) the effect of use on potential market.
B) the time period involved.
C) specific legal guidelines set forth by OSHA.
D) the GAD doctrine.
Q5) What does a copyright protect?
Q6) Define a patent and describe its limitations.
Page 11
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Chapter 10: Marketing Challenges for Entrepreneurial Ventures
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77 Verified Questions
77 Flashcards
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Sample Questions
Q1) Which of the following are the two major variables needed to identify specific market segments?
A) demographic and benefit.
B) demographic and geographic.
C) geographic and benefit.
D) economic and financial.
Q2) Identify and describe one shortcoming of a sales-driven marketing philosophy?
Q3) Psychological characteristics of consumers include which of the following?
A) social class
B) aspiration
C) family influence
D) income
Q4) Inhibitors to marketing research include all of the following except:
A) cost
B) irrelevancy
C) complexity
D) distribution
Q5) It is usually more expensive to gather secondary data than primary data.
A)True
B)False
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Chapter 11: Financial Preparation for Entrepreneurial Ventures
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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) Pro forma statements show the firm's present financial position.
A)True
B)False
Q2) Contained in the pro forma balance sheet is
A) the profit budget.
B) the cost budget.
C) the cash flow budget.
D) the R & D budget.
Q3) The principal objective of capital budgeting is to maximize the value of the firm.
A)True
B)False
Q4) The contribution margin approach formula is
A) CM = SP (VC - FC) S
B) S = SP (FC - VC)
C) SP = (FC - VC) S
D) FC = (SP - VC) S
Q5) The traditional accounting equation is: assets + liabilities = owner's equity.
A)True B)False
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Chapter 12: Developing an Effective Business Plan
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81 Verified Questions
81 Flashcards
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Sample Questions
Q1) A business plan should be no more than l50 pages.
A)True
B)False
Q2) Which of the following is a pitfall to avoid in planning, according to the textbook author?
A) lack of priorities
B) lack of profit orientation
C) lack of future vision
D) lack of illustrations
Q3) An investment prospectus is the same as a business plan.
A)True
B)False
Q4) In planning, there are a number of critical factors that must be addressed. On that the textbook mentions is
A) having a calendar.
B) the timetable involved.
C) commitment.
D) employee zeal.
Q5) How should an entrepreneur prepare to present his or her business plan?
Q6) How does a business plan benefit the entrepreneur?
Page 14
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Chapter 13: Strategic Entrepreneurial Growth
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52 Verified Questions
52 Flashcards
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Sample Questions
Q1) Which of the following factors would not be considered a key dimension that shapes the strategic management activities of a growing firm?
A) speed of decision making
B) internal political problems
C) environmental uncertainty
D) lack of knowledge
Q2) The entrepreneurial strategy matrix measures risk and innovation.
A)True
B)False
Q3) Which is not perceived as a difficulty in long-range planning?
A) arranging vacation time
B) inadequately defined objectives
C) poor planning climate
D) inexperienced managers
Q4) A "SWOT" analysis refers to analyzing strengths, weaknesses, opportunities, and threats.
A)True
B)False
Q5) Does strategic planning pay off?
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Chapter 14: Valuation of Entrepreneurial Ventures
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) Emotional bias is likely to have what effect on a seller's valuation of a business?
A) increase the valuation
B) decrease the valuation
C) have no net effect on the valuation
D) none of the above
Q2) Tangible assets as well as intangible assets of a business need to be assessed for proper venture evaluation.
A)True
B)False
Q3) Which of the following are considered methods for valuation of a venture?
A) return on investment
B) stock market method
C) multiple of earnings
D) a and c are correct
Q4) Return on investment
A) is net profit divided by investment.
B) provides a replacement value.
C) establishes a value for the business.
D) is equal to the current prime rate.
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Chapter 15: Harvesting the Entrepreneurial Venture
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83 Verified Questions
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Sample Questions
Q1) The Oakland Scavenger case is profound to owners of family businesses in that A) conceivably, the owner can be sued for not giving equal treatment to a son as to a daughter.
B) conceivably, the owner can be sued by an employee of a different ethnic origin based upon not being accorded the same treatment as a son or daughter.
C) conceivably, the owner can be sued for not declaring a family member his or her successor.
D) the owner can be fined for not declaring his or her first son the heir to the business.
Q2) Each of the following are nonfamily elements under pressure and interest from outside the firm except A) increased insurance rates.
B) the competition changing strategy.
C) regulatory agencies.
D) customers.
Q3) It is not necessary for the entrepreneur to seek outside advice when liquidating the firm.
A)True
B)False
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