New Venture Creation
Final Test Solutions
Course Introduction
New Venture Creation provides students with the knowledge and skills necessary to identify, evaluate, and launch new business opportunities. This course covers the entrepreneurial process from idea generation and opportunity assessment to business model development, resource acquisition, and early-stage growth. Through case studies, interactive discussions, and hands-on projects, students learn how to write effective business plans, understand market dynamics, secure funding, and navigate the challenges faced by startups. Emphasis is placed on innovation, critical thinking, and real-world application to prepare students for successful entrepreneurship.
Recommended Textbook
Entrepreneurship Theory Process and Practice 10th Editionby Donald F. Kuratko
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15 Chapters
444 Verified Questions
444 Flashcards
Source URL: https://quizplus.com/study-set/1416
Page 2
Chapter 1: Entrepreneurship: Evolutionary
Development-Revolutionary Impact
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28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/28106
Sample Questions
Q1) Entrepreneurs are born not made.
A)True
B)False
Answer: False
Q2) Entrepreneurs are high risk takers.
A)True
B)False
Answer: False
Q3) The word entrepreneur is derived from the Spanish word entreprendre,meaning "to undertake."
A)True
B)False
Answer: False
Q4) Which of the following is not a common myth about entrepreneurs?
A)Entrepreneurs are academic and social misfits.
B)Entrepreneurs are doers, not thinkers.
C)Entrepreneurs today are considered heroes.
D)All you need is money to be an entrepreneur.
Answer: C
3
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Chapter 2: The Entrepreneurial Mind-Set in Individuals:
Cognition and Ethics
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) When entrepreneurs believe that their accomplishments and setbacks are within their own control and influence,they are exhibiting
A)persistent problem-solving.
B)internal locus of control.
C)external locus of control.
D)opportunity orientation.
Answer: B
Q2) Characteristics often attributed to the entrepreneur include:
A)Commitment, determination, and perseverance
B)Prefers to be a loner
C)Power hungry
D)Ability to be indecisive
Answer: A
Q3) Commitment,determination,and perseverance are the only characteristics one needs to become a successful entrepreneur.
A)True
B)False
Answer: False
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Chapter 3: The Entrepreneurial Mind-Set in Organizations: Corporate Entrepreneurship
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28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/28108
Sample Questions
Q1) Which of the following would not be considered as encouraging to an entrepreneurial environment?
A)uniform compensation
B)identifying potential entrepreneurs
C)top management sponsorship of entrepreneurship
D)promotion of entrepreneurship through experimentation
Answer: A
Q2) Clever bootlegging of ideas refers to secretly working on new ideas on company time as well as on personal time.
A)True
B)False
Answer: True
Q3) Firms do not need to alter management techniques to encourage corporate entrepreneurship since it tends to occur naturally.
A)True
B)False
Answer: False
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Page 5
Chapter 4: Social Entrepreneurship and the Global
Environment for Entrepreneurship
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28109
Sample Questions
Q1) The three Ps of the triple bottom line are people,planet,and profits.
A)True
B)False
Q2) In the context of benefit corporations,what does transparency refer to?
Q3) Why has sustainable development,perhaps,become the most prominent topic of our time?
Q4) Methods for going international include all of the following except
A)importing
B)exporting
C)licensing
D)foreign reclamation
Q5) Ecopreneurs are concerned
A)only with ecologically sustainable development
B)only with economically sustainable development
C)both ecologically and economically sustainable development
D)neither ecologically nor economically sustainable development
Q6) International alliances rarely require the exchange of proprietary knowledge.
A)True
B)False
Q7) Why is global thinking important to today's entrepreneurs? Page 6
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Page 7
Chapter 5: Innovation: the Creative Pursuit of Ideas
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28110
Sample Questions
Q1) Logical and analytical skills are developed in the
A)left hemisphere of the brain.
B)right hemisphere of the brain.
C)central hemisphere of the brain.
D)anterior hemisphere of the brain.
Q2) Which of the following mental habits inhibit creativity and innovation?
A)either/or thinking, stereotyping
B)functional perspective, mind-sets
C)security hunting, risks
D)stereotyping, incubation
Q3) Which of the following are sources of innovation?
A)unexpected occurrences and incongruities
B)duplication and processes
C)synthesis and technology
D)industry changes and extension
Q4) Which of the following statements is true?
A)Innovation is the specific function of entrepreneurship.
B)Innovation is the process by which entrepreneurs consume marketable ideas.
C)Innovation does not involve change.
D)Innovation is the government's responsibility.
Page 8
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Chapter 6: Assessment of Entrepreneurial Opportunities
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) Which of the following is a major reason for the failure of a new venture?
A)inadequate market knowledge
B)good product performance
C)opening in the wrong location
D)good product/poor marketing
Q2) Most entrepreneurs are well schooled in the technology associated with their ventures.
A)True
B)False
Q3) Most entrepreneurs are objective when they evaluate their new idea.
A)True
B)False
Q4) Many entrepreneurs lack _____ for their new venture.
A)innovation
B)intelligence
C)objectivity
D)both a and b
Q5) What are the five specific feasibility phases that a new venture will go through?
Q6) List and describe three pitfalls in selecting a new venture.
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Chapter 7: Pathways to Entrepreneurial Ventures
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28 Verified Questions
28 Flashcards
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Sample Questions
Q1) The Federal Trade Commission does not provide information on franchise success.
A)True
B)False
Q2) Briefly explain the new-old approach to creating new ventures.
Q3) Perhaps the greatest advantage of buying a franchise,as compared to starting a new business or buying an existing one,is that the franchisor will usually provide both training and guidance to the franchisee.
A)True
B)False
Q4) In negotiating a deal to purchase an existing business,it is possible to request that the seller retain a minority interest in the firm.
A)True
B)False
Q5) An agreement not to compete is also known as
A)a trade restriction clause.
B)a legal restraint of trade.
C)a waiver of competition clause.
D)a deferential sale of business clause.
Q6) Why did the Federal Trade Commission enact the Franchise Rule?
Page 10
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Chapter 8: Sources of Capital for Entrepreneurs
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) The entrepreneur should ask the venture capitalist _____ questions.
A)at most ten
B)exactly twenty
C)an unlimited number of
D)no
Q2) One of the advantages of public offerings is
A)liquidity.
B)disclosure.
C)requirements.
D)cost.
Q3) Sophisticated investors are wealthy individuals who invest more or less regularly in new and/or early- and late-stage ventures.
A)True
B)False
Q4) Should entrepreneurs accept proposals from the first venture capitalist that offers?
Q5) Are formal firms the only source of venture capital?
Q6) What are the major types and uses of debt financing?
Q7) How does a public offering differ from a private placement?
Page 11
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Chapter 9: Legal Challenges of Entrepreneurial Ventures
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) Three primary legal forms of organization are the sole proprietorship,the partnership,and the corporation.
A)True
B)False
Q2) A trademark is a distinctive name,mark,or symbol that is identified with a company's product.
A)True
B)False
Q3) All of the following are ways of invalidating a trademark except
A)cleaning-out proceedings.
B)clearing-out proceedings.
C)abandonment.
D)generic meaning.
Q4) There are two parts to a patent application,claims and .
A)percentage
B)specification
C)value
D)integration
Q5) Define a patent and describe its limitations.
Q6) Identify the three major sections of the Bankruptcy Act.
Page 12
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Chapter 10: Marketing Challenges for Entrepreneurial Ventures
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) Skimming is setting prices at such a low level that products are sold at a loss.
A)True
B)False
Q2) What is skimming?
A)setting price to maximize profit
B)setting price to maximize market share
C)setting price to switch customers to new product lines
D)setting price to match the competition
Q3) Mobile social media applications can be differentiated based on location-sensitivity as well as on time-sensitivity.
A)True
B)False
Q4) Social media marketing is the application of online collaborative media for marketing purposes.
A)True
B)False
Q5) What is guerrilla marketing?
Q6) What is skimming and what are its effects?
Page 13
Q7) What three important aspects of social media marketing should entrepreneurs be aware of?
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Page 14
Chapter 11: Financial Preparation for Entrepreneurial Ventures
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) The traditional accounting equation is: assets + liabilities = owner's equity.
A)True
B)False
Q2) Contribution margin is the difference between
A)selling price and fixed cost per unit.
B)purchase price and variable cost per unit.
C)selling price and variable cost per unit.
D)purchase price and fixed cost per unit.
Q3) Contribution margin is the difference between the selling price and the fixed cost per unit.
A)True
B)False
Q4) Break-even analysis is a technique commonly used to assess the A)rate of return on investment.
B)expected product profitability.
C)net present value.
D)total costs.
Q5) What is included in an operating budget and how is this helpful?
Page 15
Q6) Define break-even analysis and identify some useful methods for finding the break-even point.
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Page 16
Chapter 12: Developing an Effective Business Plan
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) The completed business plan provides the entrepreneur with A)a tool for communicating with financial sources.
B)a sense of well-being.
C)a product-launch timetable.
D)a nicely designed booklet.
Q2) There are only two viewpoints from which a business plan should be written,the entrepreneur's and the financial source.
A)True
B)False
Q3) What are some of the errors made in the preparation of a business plan that minimize an entrepreneur's chance for success?
Q4) Factors that must be addressed when planning a new venture include setting realistic goals,determining milestones,making a commitment,and having flexibility. A)True
B)False
Q5) How does a business plan benefit the entrepreneur?
Q6) Should an entrepreneur attempt to make a business plan sound too good for an investor to turn down?
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Chapter 13: Strategic Entrepreneurial Growth
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) Lack of expertise has never been considered a reason for the lack of strategic planning in new ventures.
A)True
B)False
Q2) The entrepreneurial strategy matrix measures:
A)risk and security.
B)commitment and time.
C)risk and innovation.
D)opportunity and time.
Q3) During the growth stage of a venture,entrepreneurs shift into a managerial style.
A)True
B)False
Q4) Research has shown that there is a distinct lack of strategic planning in new ventures. Relate some of the reasons for this lack of planning.
Q5) In administrative cultures,there is a need for clearly defined authority and responsibility.
A)True B)False
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Chapter 14: Valuation of Entrepreneurial Ventures
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) __________ refers to conducting a thorough analysis of every facet of an existing business.
A)Due diligence
B)Industry capitalization
C)Knowledge acquisition
D)Risk assessment
Q2) When considering physical facilities,the entrepreneur should be concerned about
A)which facilities are owned versus leased.
B)which facilities are used for production.
C)whether adequate capital is maintained.
D)facility upkeep.
Q3) Explain the purpose of a letter of intent.
Q4) "Why is the business being sold?" is not an important question to ask when analyzing the viability of buying a business.
A)True
B)False
Q5) Knowing a venture's pre-money valuation is not possible.
A)True
B)False
Q6) List and briefly explain the three methods utilized for business evaluation.
Page 19
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Chapter 15: Harvesting the Entrepreneurial Venture
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) Research on family firms demonstrates which of the following facts?
A)only 16 percent make it to a third generation
B)many family firms cease to exist after one month
C)only nine out of ten make it to a second generation
D)only 3 percent make it to the next generation
Q2) A type of successor who is high in ingenuity,creativity,and drive would be considered a(n)
A)managerial successor.
B)entrepreneurial successor.
C)opportunistic successor.
D)all of the above.
Q3) Bill and James Raymond have worked for their father's company for 15 years. Their father,who is president and now wants to retire,wants his sons jointly to take over the company. Bill and James have never agreed on anything. Should their father try another succession plan?
Q4) A typical example of a forcing event is
A)death.
B)a natural disaster.
C)an IRS audit.
D)a slow business year.
Page 20
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