New Venture Creation Question Bank
Course Introduction
New Venture Creation explores the foundational principles and practical steps involved in launching a new business. Students will learn how to identify entrepreneurial opportunities, develop innovative business models, conduct market analysis, and write effective business plans. The course covers essential topics such as financing strategies, building effective teams, understanding legal considerations, and strategies for acquiring first customers. Through case studies, real-world projects, and interactive exercises, students will gain the knowledge and skills needed to transform innovative ideas into viable, sustainable ventures.
Recommended Textbook
Entrepreneurship 9th Edition by Robert D
Hisrich
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15 Chapters
1225 Verified Questions
1225 Flashcards
Source URL: https://quizplus.com/study-set/3098
Page 2
Chapter 1: Entrepreneurship and the Entrepreneurial
Mind-Set
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49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/61403
Sample Questions
Q1) Research indicates that male entrepreneurs tend to start their first significant venture in their middle 30s,while women entrepreneurs tend to do so in their early 30s.
A)True
B)False
Answer: False
Q2) Comprehension questions are designed to stimulate entrepreneurs to think about their own understanding.
A)True
B)False
Answer: False
Q3) Which among the following aspects affects an entrepreneur's perception of feasibility?
A)Locus of control
B)Learning style
C)Perceived desirability
D)Self-efficacy
Answer: D
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Page 3
Chapter 2: Entrepreneurial Intentions and Corporate Entrepreneurship
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48 Verified Questions
48 Flashcards
Source URL: https://quizplus.com/quiz/61402
Sample Questions
Q1) Entrepreneurially managed firm structure is usually flat with multiple informal networks.
A)True
B)False
Answer: True
Q2) Which company,discussed in our text as an example of corporate entrepreneurship,created a high quality monitor that was used by NASA?
A)HP
B)IBM
C)APPLE
D)TOSHIBA
Answer: A
Q3) The first step in establishing corporate entrepreneurship in an organization is:
A)finding mid level managers to champion ideas
B)developing ways to get closer to customers
C)learn to be more productive with fewer resources
D)securing commitment from top management
Answer: D
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Chapter 3: Entrepreneurial Strategy: Generating and Exploiting New Entries
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93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/61401
Sample Questions
Q1) If there is a good fit between the venture's bundle of resources and the external environment:
A)the firm will be rewarded with superior performance.
B)the entrepreneur will be unable to compete in the market segment.
C)environmental variables will be irrelevant.
D)demand uncertainty will be irrelevant.
Answer: A
Q2) A new entry includes all of the following except:
A)Offering a new product to a new market
B)Offering an established product to an new market
C)Creating a new product development process for your company
D)Creating a new organization
Answer: C
Q3) The entrepreneurial attributes of persistence and determination,which are so beneficial when the new venture is on the "right course,":
A)can make the entrepreneur more suitable to work in volatile markets.
B)can hasten the process of adapting to sudden changes.
C)can aid the entrepreneur in recognizing,and implementing changes.
D)can inhibit the ability of the entrepreneur to detect,and implement,change.
Answer: D
Page 5
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Chapter 4: Creativity and the Business Idea
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87 Verified Questions
87 Flashcards
Source URL: https://quizplus.com/quiz/61400
Sample Questions
Q1) How many stages are in the product planning and development process?
A)Two
B)Three
C)Four
D)Five
Q2) New products may be classified from the viewpoint of either the consumer or the firm.
A)True
B)False
Q3) The largest source of new product ideas is:
A)the U.S.Patent Office.
B)the entrepreneur's research and development.
C)customers.
D)the federal government.
Q4) Creativity declines with
A)training and tradition.
B)education and work experience.
C)age,education and lack of use.
D)mental health and work experience.
Q5) List,in order,the stages of the product planning and development process.
Page 6
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Chapter 5: Identifying and Analyzing Domestic and International Opportunities
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73 Verified Questions
73 Flashcards
Source URL: https://quizplus.com/quiz/61399
Sample Questions
Q1) Profits and tax benefits are common motivations for going global.
A)True
B)False
Q2) Motivations for going global,discussed in the text,include all the following except:
A)cheap shipping costs
B)excess production capacity
C)technological advantage
D)competitive pressures
Q3) _____ has the main disadvantages of high transportation costs,trade barriers,and problems with local marketing agents.
A)Exporting
B)Turn-key projects
C)Licensing
D)Franchising
Q4) Exporting:
A)is the least popular method for going global.
B)results in a lack of control over quality.
C)results in an inability to realize location economies.
D)can be direct or indirect.
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Chapter 6: Intellectual Property and Other Legal Issues for the Entrepreneur
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76 Verified Questions
76 Flashcards
Source URL: https://quizplus.com/quiz/61398
Sample
Questions
Q1) The most commonly issued type of patent is the plant patent.
A)True
B)False
Q2) Explain what makes a contract legally enforceable
Q3) Getting a trademark typically takes 2 years.
A)True
B)False
Q4) What type of agreement must always be in writing in order to be a legally binding contract?
A)Client
B)Distributor
C)Supplier
D)Real estate
Q5) Health insurance premiums are less expensive if there is a large group of insured participants.
A)True
B)False
B)False Page 8
Q6) The three main categories of patents are design,utility and provisional patents. A)True
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Page 9
Chapter 7: The Business Plan: Creating and Starting the Venture
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89 Verified Questions
89 Flashcards
Source URL: https://quizplus.com/quiz/61397
Sample Questions
Q1) Identify and explain,give examples when appropriate,of key areas that should be investigated when conducting an environmental analysis.
Q2) Pro forma financial statements should be prepared semi-monthly for the first year of the venture.
A)True
B)False
Q3) _______ identifies potential hazards and alternative strategies to meet business plan goals and objectives.
A)Assessment of risk
B)Financial planning
C)Alternative planning analysis
D)The financial plan
Q4) The business plan does not help an entrepreneur to obtain financing.
A)True
B)False
Q5) Standard & Poor's and RDS Tablebase are good sources of industry and market data.
A)True B)False
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Chapter 8: The Marketing Plan
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89 Verified Questions
89 Flashcards
Source URL: https://quizplus.com/quiz/61396
Sample Questions
Q1) Which is the first step in preparing a marketing plan?
A)Identifying strengths and weaknesses
B)Defining the target market
C)Establishing goals and objectives
D)Defining the business situation
Q2) _____ is the process of gathering information in order to determine who will buy the product and what is the most appropriate distribution channel.
A)Market segmentation
B)Marketing planning
C)Market mixing
D)Marketing research
Q3) Which survey method results in the most in-depth information and the best response rate?
A)Telephone
B)Mail
C)Personal
D)Internet
Q4) List the 4 major factors of the external environment identified by the marketing system.
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Chapter 9: The Organizational Plan
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91 Verified Questions
91 Flashcards
Source URL: https://quizplus.com/quiz/61395
Sample Questions
Q1) In a limited liability company,every member has limited liability.
A)True
B)False
Q2) The partnership is the most attractive type of business formation for raising capital.
A)True
B)False
Q3) Transferability of interest is easiest in a limited partnership.
A)True
B)False
Q4) Eric Ryan and Adam Lowry started Method Products because:
A)they were both unhappy in their jobs.
B)a friend tipped them off to market trend of green products.
C)Ryan's background as a scientist gave him the idea for a clean dish washing liquid.
D)Lowry heard,in his previous job as a marketer,that distributors were looking for green products.
Q5) Identify the nine areas an entrepreneur should consider in choosing a legal form of organization.
Q6) Discuss the main advantages of an LLC over an S-Corp.
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Chapter 10: The Financial Plan
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88 Verified Questions
88 Flashcards
Source URL: https://quizplus.com/quiz/61394
Sample Questions
Q1) Using a spreadsheet software package is helpful when developing budgets as it helps to gauge the impact of different financial scenarios.
A)True
B)False
Q2) ________ is the amount owners have invested and/or retained from the venture operations:
A)cash flow
B)retained earnings
C)profit
D)owner's equity
Q3) Assets represent the net worth of the firm.
A)True
B)False
Q4) Fixed operating expenses include all of the following except:
A)Rent
B)Utilities
C)Raw Materials
D)Depreciation
Q5) Define capital budgeting.
Q6) Define the contribution margin and its importance.
Page 13
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Chapter 11: Sources of Capital
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97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/61393
Sample Questions
Q1) Which grant program requires partners at universities or other non-profit institutions?
A)The 504 program
B)Small Business Innovation Research
C)The SBA 7(a)
D)Small Business Technology Transfer
Q2) The sponsoring company in a R&D limited partnership is the limited partner.
A)True
B)False
Q3) Outside capital should be sought only after all possible internal sources of funds have been explored.
A)True
B)False
Q4) In limited partnerships:
A)the liability for any loss incurred is borne by the company.
B)the sponsoring company acts as the general partner.
C)there is no special tax benefit for partners.
D)the sponsoring company does not retain rights to use any base technology to develop other products.
Q5) Explain the three major components of an R&D partnership.
Page 14
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Chapter 12: Informal Risk Capital, venture Capital, and Going Public
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102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/61392
Sample Questions
Q1) In a private venture capital firm,the _______ manages the fund in exchange for a management fee and a percentage of profits.
A)limited partner
B)general partner
C)entrepreneur
D)referral source
Q2) In 2011 which region received the highest level of venture capital investment?
A)New England
B)Silicon Valley
C)NYC Metro
D)LA/Orange County
Q3) The due diligence phase of the venture-capital process includes:
A)outlining the principle terms.
B)a detailed review of the company's history.
C)preparation of an investment memorandum.
D)a preliminary study of the business plan.
Q4) Early-stage financing is usually the least costly type of financing to obtain.
A)True
B)False
Q5) What are the three types of risk capital markets?
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Chapter 13: Strategies for Growth and Managing the Implication of Growth
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82 Verified Questions
82 Flashcards
Source URL: https://quizplus.com/quiz/61391
Sample Questions
Q1) If employees are involved in the decision-making process,they are more motivated to implement the decided course of action.
A)True
B)False
Q2) The principle of reanalysis requires the entrepreneur to focus on the most important issues,even when under pressure.
A)True
B)False
Q3) The principle of teamwork states that an entrepreneur spends too much time with employees and should try to become less accessible to them in order to increase their efficiency.
A)True
B)False
Q4) When a manufacturer buys a chain of retail stores that carry its products,it is an example of backward integration.
A)True
B)False
Q5) What benefits can an entrepreneur receive from better time management?
Q6) Explain the 4 types of entreprenuers and firm growth.
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Chapter 14: Accessing Resources for Growth From External
Sources
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90 Verified Questions
90 Flashcards
Source URL: https://quizplus.com/quiz/61390
Sample Questions
Q1) If a franchise looks good as an investment,the entrepreneur may request a franchise package from the franchisor at no cost,which usually contains a draft franchise agreement or contract.
A)True
B)False
Q2) The bargaining zone is the range of outcomes between the entrepreneur's reservation price and the reservation price of the other party.
A)True
B)False
Q3) The most common type of joint venture is between two or more public sector companies.
A)True
B)False
Q4) Most ventures that are available for sale:
A)are undervalued.
B)lack established location.
C)have a marginal or unprofitable track record.
D)are listed on the stock market.
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Chapter 15: Succession Planning and Strategies for
Harvesting and Ending the Venture
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71 Verified Questions
71 Flashcards
Source URL: https://quizplus.com/quiz/61389
Sample Questions
Q1) What percentage of firms manage to emerge from the Chapter 11 process?
A)10-15%
B)20-25%
C)40-50%
D)70-80%
Q2) This occurs when two or more of the largest creditors agree to postpone any claims,acting as stimulus for smaller creditors to also agree to the plan.
A)Extension.
B)Evolution.
C)Substitution.
D)Composition settlement.
Q3) The bankruptcy type that is most common is Chapter 7 bankruptcy.
A)True
B)False
Q4) An effective succession plan should be communicated only to top management and not all employees.
A)True
B)False
Page 18
Q5) Identify and define the three major types of bankruptcy.
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