Examination Material for EMBA 680

1. Which of the following is an accurate characterization of interest in

entrepreneurship?
A) There is minimal interest in entrepreneurship across the world.
B) There is minimal interest in entrepreneurship in North America and Europe,
but
significant interest in Asia and Australia.
C) There is significant interest in entrepreneurship in North America and Europe,
but
minimal interest in Asia and Australia.
D) While interest in entrepreneurship was once high, it is waning in popularity
across
the world.
E) There is tremendous interest in entrepreneurship across the world.
Answer: E

2. Google is a firm that is proactive, innovative and risk-taking. From this

description, we can most accurately conclude that Google has a high level of
A) Enterprise focus
B) Innovative intensity
C) Entrepreneurial intensity
D) Creative intensity
E) Innovative concentration
Answer: C

3. Which of the following could be considered an acquisition?

A) Inheriting your father's business
B) Building a new restaurant
C) Inventing a new product and selling it
D) Starting a recycling business
E) Buying a business from a retiring owner
Answer: E
4. Which is not part of Schumpeter's definition regarding the ways that
entrepreneurs find opportunities to create new businesses?
A) Use a new technology to produce a new product
B) Use an existing technology to produce a new product
C) Use an existing technology to produce an old product in a new way
D) Find a new source of resources
E) Find a new market for a new product
Answer: E

5. A(n) is a legal and commercial relationship between the owner of a

trademark, service mark, trade name or advertising symbol and an individual or
group seeking to use that identification in a business.
A) Franchise
B) License
C) Acquisition
D) Merger
E) Opportunity
Answer: A
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6. role of change agents in the social sector by
A) Adopting a mission to create and sustain social value
B) Serving a higher power
C) Not being concerned with profit or sustainability
D) Avoiding competition
E) Being concerned with mother earth
Answer: A
7. According to the textbook, entrepreneurs are
A) gamblers
B) moderate risk takers
C) aggressive risk takers
D) forceful risk takers
E) minimal risk takers
Answer: B
8. How does the public reward entrepreneurs who use resources efficiently to
satisfy consumer needs?
A) With profit
B) With awards
C) With praise
D) With applause
E) With a pat on the back
Answer: A

9. Entrepreneurship options include

A) Opportunities that are virtually limitless
B) For-profit ventures only
C) Not-for-profit organizations only
D) Only green business options
E) Only new technology and inventions
Answer: A

10. Which of the following represents a "change" associated with the "five roots
of opportunity" explored in the text?
A) The invention of the cell phone
B) Expanded completion within an industry
C) The entry of a new competitor
D) Development of the technology for social networking
E) The green movement and society's new concern with recycling
Answer: E
11. Which of the following is not a way to identify business opportunity as
discussed in the text?
A) Exploiting changes in the world
B) Seeing opportunity where others see problems
C) Training your mind to recognize opportunity
D) Using your imagination
E) Seeing what is wrong, but not a way to fix it
Answer: E
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12. According to the text, which of the following is not a cost of becoming an
entrepreneur?
A) Contribution to society
B) Business failure
C) Obstacles
D) Loneliness
E) Long Hours
Answer: A

13. Management expert Peter Drucker pointed out that, for a business to be
considered entrepreneurial, it should exploit changes in the world. Which of the
following areas have changes that entrepreneurs could exploit?
A) Technology
B) Politics
C) Socio-economics
D) All of the above
E) None of the above
Answer: D

14. Which of the following would be part of a product-uniqueness strategy?

A) Offering a low cost to the customer
B) Offering a one-of-a-kind product or service
C) Cutting operations costs
D) Limiting the salaries of employees
E) All of the above
Answer: B
15. A(n) is a favorable set of circumstances that creates a need for a new
product,
service, or business.
A) Idea
B) Scheme
C) Design
D) Proposal
E) Opportunity
Answer: E

16. According to the textbook, opportunities are

A) Easy to spot
B) Easy to spot in fast growing industries, but tough to spot in slow growing
industries
C) Easy to spot in the manufacturing sector, but tough to spot in the service sector
D) Tough to spot
E) Neither easy nor tough to spot
Answer: D

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17. An opportunity has the following four essential qualities
A) Attractive; timely; durable; and anchored in a product, service, or business
that
creates or adds value for its buyer or end user
B) Practical; opportune; appropriate; and anchored in a product, service, or
business
that is efficient and effective
C) Realistic; striking; timely; and anchored in a product, service, or business that
is
timely
D) attention-getting; attractive; timely; and anchored in a product, service, or
business that creates or adds value for its buyer or end user
E) Attractive, durable, resilient, and opportune
Answer: A

18. A (n) is a favorable set of circumstances that creates the need for a new
product, is a thought, an impression or a notion. service, or business. A (n)
A) Scheme, notion
B) Opportunity, idea
C) Idea, design
D) Idea, opportunity
E) Notion, scheme
Answer: B

19. Feasibility analysis is the process of determining if a business idea is viable.

Answer: TRUE 20. A feasibility analysis is an assessment of a potential product
or service idea rather than a potential business.:
FALSE

21. Entrepreneurship is the process by which individuals pursue opportunities

within the constraints of the resources they control.
FALSE

22. The number one reason that people become entrepreneurs is to pursue
financial rewards. FALSE 23. The passion that entrepreneurs have typically
stems from the ability to pursue their own ideas.
FALSE

24. The four main characteristics of successful entrepreneurs are: passion for
the business, execution intelligence, product/customer focus, and tenacity
despite failure.:
TRUE
25. The number one characteristic shared by successful entrepreneurs is passion
for the business.
TRUE
26. An idea is a favorable set of circumstances that creates a need for a new
product, service, or business.
FALSE

27. An opportunity has four essential qualities. It is (1) rare, (2) attractive, (3)
timely, and (4) anchored in a product, service, or business that creates or adds
value for its buyer or end user.:
TRUE

28. The term "window of opportunity" is a metaphor describing the time period
in which a firm can realistically raise money.
FALSE

29. An idea is a thought, impression, or notion. It may or may not meet the
criteria of an 4 opportunity.
TRUE

30. Which of the following is not an example of a social force?

A) Changes in interest rates
B) Increasing participation in social networks
C) Increasing diversity of the workplace
D) Aging of the population
E) Continual migration of people from small towns and rural areas to cities
Answer: A

31. If a new firm was launched to help businesses comply with The Affordable
Care Act, that opportunity was created by
A) Changes in economic forces
B) Demographic changes
C) Changes in social forces
D) Changes in technological forces
E) Political actions and regulatory changes
Answer: E
32. The goal of work groups is
A) generating positive synergy
B) improving collective performance
C) inculcating a climate of trust
D) sharing relevant information.
E) enhancing team efficacy

33. A common way that gaps in the marketplace are recognized is

A) by observing changing environmental trends
B) by recognizing problems that need to be solved
C) via studying industry reports
D) when people become frustrated because they can't find a product or service
that
they need and recognize that other people feel the same way
E) via combined focus groups and brainstorming sessions
Answer: D

34. The three ways to identify an opportunity include observing trends, solving a
problem, and finding gaps in the marketplace.:
TRUE

35. Economic factors, social factors, technological advances, and political action
and regulatory changes are the most important trends to follow in trying to
identify opportunities. TRUE 36. Many new businesses are successful by taking
advantage of fads.
FALSE

37. Aging of the population, the increasing diversity of the workplace, and the
continual migration of people from small towns and rural areas to cities are
important economic trends.
FALSE
38. Feasibility analysis is the process of determining if a business idea is viable.
TRUE

39. A feasibility analysis is an assessment of a potential product or service idea

rather than a potential business.
FALSE
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40. According to research in this area, it is more likely that an entrepreneur will
get a new 41. business idea through a
A) weak-tie
B) moderate-tie
C) vertical-tie
D) lateral-tie
E) strong-tie
Answer: A

41.relationship than the alternatives. is the process of generating a novel or

useful idea.
A) Innovation
B) Imagining
C) Creativity
D) Visualization
E) Envisioning
Answer: C

42. In the five-stage creative process, the flash of recognition, or what is

sometimes referred to as the "eureka" experience, occurs in the stage.
A) Insight
B) Preparation
C) Incubation
D) Elaboration
E) Evaluation
Answer: A
43. Several studies have shown that prior experience in an industry helps
entrepreneurs recognize business opportunities.
TRUE

44. Opportunity recognition may be an innate skill or cognitive process.

TRUE

45. Weak-tie relationships are characterized by infrequent interaction and ties

between casual acquaintances.
TRUE

46. It is more likely that an entrepreneur will get a new business idea through a
strong-tie than a weak-tie relationship.
FALSE

47. The five stages of the creative process include preparation, incubation,
insight, evaluation, and elaboration.
TRUE

48. Incubation is the stage of the creative process during which an idea is
subjected to scrutiny and analyzed for its viability
. FALSE

49. Evaluation is the stage of the creative process during which the idea is put
into its final form.
FALSE
50. is (are) used to generate a number of ideas quickly.
A) Insight groups
B) Competitive intelligence gatherings
C) Examination groups
D) Survey groups
E) Brainstorming
Answer: E
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51. The first phase of group development for temporary groups involves
A) the phase of inertia before transition
B) the determination of the group's direction C) the transition to plan the major
changes
D) a period of accelerated activity
E) the adoption of new perspectives
Answer: B

52. The number one rule for a brainstorming session is

A) no criticism is allowed
B) no freewheeling is allowed
C) no leapfrogging is allowed
D) no more than 10 people are allowed to participate E) no wild or unrealistic
ideas are allowed
Answer: A

53. Brainstorming is used to generate a number of ideas quickly.

TRUE
54. Brainstorming sessions are designed to move slowly, so ideas can be
presented and evaluated.Answer:
FALSE
55. Focus groups typically involve a group of people who are unfamiliar with a
topic and are brought together to respond to questions.Answer:
FALSE
56. An idea bank is a physical or digital repository for storing ideas. Answer:
TRUE
57. Creativity and innovation are almost identical concepts. Answer:
FALSE

58. The four factors that form competitive advantage are

A) Product, price, promotion, and place
B) Product, packaging, promotion, and price
C) Product, place, politics, and price
D) Product, place, politics, and persistence
E) Product, place, people, and price
Answer: A

59. Making the beliefs, values, and behavioral norms explicit and intentional
builds the of an organization.
A) Culture
B) Mission
C) Vision
D) Goals
E) All of the above
Answer: A

60. factor to consider when selecting a physical location is

A) Work force availability
B) Wage rates
C) Nearby university
D) All of the above
E) None of the above
Answer: D
61. When you make an in-person presentation to prospective investors
A) Engage the listeners' interest
B) Introduce yourself
C) Use clear visual aids
D) All of the above
E) None of the above
Answer: D

62. A(n) carried out. you I should is a document that thoroughly explains a
business idea and how it will be
A) Business plan
B) Analysis
C) Resume
D) Marketing plan
E) Operations plan
Answer: A

63. The addresses the roles of the community, region, nation, and world in a
business. A) Environmental analysis
B) Business analysis
C) Industry analysis
D) Proof of market
E) Financial analysis
Answer: A

64. Advertising is promotion through media outlets.

A) Paid
B) Discounted
C) Free
D) Newsworthy
E) None of the above
Answer: A
65. The section of the business plan should be written last.
A) Executive Summary
B) Mission, Vision, Culture
C) Cover Page
D) Financial Statements E) Company Description
Answer: A
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66. A business plan can help a company
A) Operate more effectively B) Raise capital
C) Define its core mission.
D) All of the above
E) None of the above
Answer: D

67. Writing a business plan can ensure that you

A) Achieve your expense projection
B) Make a profit
C) Figure out how to make your business work
D) Meet your target revenue goals
E) Have no chance of failure
Answer: C

79) Business leaders create wealth by

A. Hiring employees in order to sell more units and generate more profit
B. Reducing their gross margins
C. Charging high prices to customers
D. Avoiding the cost of hiring employees
E. Putting competitors out of business
Answer: A
68. Your is a concise communication of your strategy including your business
definition and your competitive advantage.
A) Mission statement
B) Target market analysis
C) Values statement
D) Business plan
E) SWOT analysis
Answer: A

69. A(n) is a group of people or organizations that may be interested in buying a

given. product or service, has the resources to purchase it, and is permitted by
law and regulation to do so.
A) Target market
B) Market
C) Organization
D) Industry
E) All of the above
Answer: B

70. A retail business buys from

A) Wholesalers, consumers B) Wholesalers, manufacturers
C) Manufacturers, consumers
D) Traders, consumers
E) Vendors, consumers
Answer: A
and sells to
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71. is/are the core values of an organization in action.
A) Culture
B) Mission
C) Vision
D) Goals
E) None of the above
Answer: A

72. For your business to be successful you will need a strategy for beating the
competition, that is, a
A) Competitive advantage
B) Market analysis
C) Target market
D) Customer analysis
E) Competitive benefit
Answer: A

73. Which of the following items is not a competitive advantage?

A) Consistently providing better customer service than the competition
B) Using a new patented manufacturing process that reduces manufacturing costs
by 25%
C) Finding a better supplier at a lower cost
D) Cutting costs on shipping by 50%
E) Offering free samples during a two-week promotion
Answer: E

74. Average gross profit per customer is

A) Average sale per customer minus average cost of sale per customer
B) Average cost of tangible product minus average cost of intangible product
C) Average sale per consumer plus average sale per wholesaler
D) Average cost of sale minus average sale per customer
E) Average cost of sale multiplied by average sale per customer
Answer: A
88) An entrepreneur's market is
A. The building where his or her business is located
B. A three-square-block area surrounding his or her location
C. His or her business's promotional activities
D. The group of people who are current and possible future customers
E. All of the above
Answer: D

89. What is a focus group?

a. A method of market research that focuses on how the industry is performing b.
A method of market research that involves collecting statistics about a group of
people who might use a product
c. A method of market research that involves bringing together some people who
might use a product and having a researcher question them about it
d. A method of market research that focuses on competitor strengths
e. All of the above
Answer: C

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90. In doing secondary research, there are several choices to help you. Among
these are
a. Magazine articles
b. Internet research
c. Business library
d. Books
e. All of the above
Answer: E
91. The product life cycle phases include
a. Growth
b. Maturity
c. Introduction
d. Decline
e. All of the above
Answer: E

92. The marketing term that describes owning a perception in the minds of
consumers is called
a. Mind share
b. Consumer perception
c. Consumer influence
d. Market share
e. Market segment
Answer: A

93. ask(s) people directly through interviews or questionnaires about their

perceptions of a product or service.
a. Surveys and focus groups
b. Secondary research methods
c. Industry research
d. General research
e. Statistical research
Answer: A

94. There is a subtle difference between the a fact while the other is a
perception.
a. Features, benefits
b. Revenue, costs
c. Sales, marketing
d. Marketing, penetration
e. None of the above
Answer: A
and the of a product. One is

95. Which of the following is a step in determining how customers decide to buy
a product?
a. Analyze the buying process
b. Think about who might actually buy it
c. Determine the need it meets
d. All of the above
e. None of the above
Answer: D

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96. Which business function do experts agree you should focus on first when
preparing to start a business?
a. Marketing vision
b. Operations
c. Financing
d. Production
e. Human resources
Answer: A

97. Smart marketers always emphasize a. Benefits, not prices

b. Benefits, not features.
c. Features, not benefits
d. All of the above
e. None of the above
Answer: B

98. Which of the following aspects of a product/service is the most important to

focus on when selling?
a. Benefits
b. Features
c. Price
d. Friendliness
e. Closing the deal
Answer: A

99. In order to take advantage of these location-specific resources, companies

must reach across borders and/or
a. Import products
b. Acquire human capital
c. Create their own locations
d. All of the above
e. None of the above
Answer: D

100. Which of the following is not a common export?

a. Lawn service
b. Travel
c. Entertainment
d. Telecommunications
e. Health care
Answer: A

101. Selected trade intermediaries include all of the following except

a. Confirming house
b. Export agents
c. Export trading company
d. Remarketers
e. Postexport marketers
Answer: E
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102. Strategic alliances may be based on
a. Technology
b. Production
c. Distribution
d. All of the above
e. None of the above
Answer: D

103. is relocating company operations to foreign locations. a. Offshoring

b. Outsourcing
c. Reallocating
d. Centralizing
e. Formalizing
Answer: A

104. An example of a service business's unit of sale would be one

a. Dozen
b. Hour
c. Crate
of service.
d. Gross
Answer: B

105. is the general rise in the price of goods and service in an economy. a.
Inflation
b. Deflation
c. Tabulation
d. Fixation
Answer: A
106. When an entrepreneur makes a scheduled payment on a conventional
loan
a. Part of it goes to principal and part goes to interest
b. All of it goes to principal (balance sheet)
c. All of it goes to interest (income statement) d. Part of it pays penalties
e. None of the above
Answer: A

107. Successful entrepreneurs use their financial records to prepare statements

that show sales and costs for the previous period.
a. Quarterly
b. Yearly
c. Monthly
d. Biannually
e. None of the above
Answer: E

13 income
108. The return on sales ratio is
a. Net income/sales
b. Also called the operating ratio c. Revenue/expenses
d. Debt/income
e. Inventory/receipts payable
Answer: A

109. Which of the following is not a country location consideration?

a. Political risks, governmental regulations, national attitudes, and incentives b.
Cultural and economic issues
c. Location of markets
d. All of the above
e. None of the above
Answer: D
110. Manufacturers need to meet and exceed customer
a. Delivery and quality
b. Service and quality
c. Response and quantity
d. Delivery and quantity
e. None of the above
Answer: A

goals.
111. Which of the following is not a major factor in retail stores' costs?
a. Rental
b. Salaries
c. Wages
d. Production
e. All of the above are major factors.
Answer: D

112. The selection of a location is a critical business success factor, is often a

one-time event, and is generally
a. Expensive
b. Inexpensive
c. Difficult
d. Easy
e. All of the above
Answer: A
to change.
113. Which one of these is not a type of planning?
a. Divisional plan
b. Strategic plan
c. Tactical plan
d. Operational plan
None of the above
Answer: A
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114. Strategic plans are typically growth, sales, and positioning goals.
a. 3-5
b. 1-2
c. 10-15
d. 8-10
e. 12-15
Answer: A.

year overall strategies for achieving long-term

115. The department that hires, trains, and develops company employees is
called
a. Human resources
b. The employee office
c. The people department
d. The principal's office
e. The hiring and firing office
Answer: A
116. Why are entrepreneurs not always the best managers for their businesses?
a. Entrepreneurs tend to be creative types who get bored with the day-to-day
details of running a business.
b. Managers are better at coming up with fresh ideas for new businesses than
entrepreneurs are.
c. Entrepreneurs are lazy.
d. Entrepreneurs have short attention spans.
e. Entrepreneurs get sleepy.
Answer: A

117. plans are short-term procedures for achieving tactical goals. a. Operational
b. Strategic
c. Divisional
d. Tactical
e. Business
Answer: A

118. What is the difference between strategic planning and operational

planning?
a. Strategic planning sets out strategies for the business to achieve long-term
growth
and other goals, while operational planning covers the day-to-day operations of
the business.
b. Strategic planning covers the short-term day-to-day workings of a business,
while
operational planning sets out long-term goals.
c. Strategic plans are for one year or less and have very specific objectives, while
operational plans are more vague and long-term.
d. All of the above
e. None of the above
Answer: A
119. Hiring employees is called
a. Recruitment
b. Managing
c. Controlling 15
d. Assessing
e. Motivating
120.
Answer: A

121. Human resources is commonly referred to as

a. Casting
b. HR
c. Human capital
d. All of the above in Disney.
e. None of the above
Answer: A

122. Which of the following is a good tip to employees who must deal with
different cultures?
a. Assume similarities until differences are proven.
b. Emphasize description rather than evaluation or interpretation.
c. Practice sympathy.
d. Act decisively to minimize ambiguity.
Answer: B

123. Which of the following is the statement of the values of a company?

a. Code of ethics
b. Code of conduct
c. Ethical relativism
d. Ethical dilemma
e. All of the above
Answer: A
124. wrong. is a system of moral conduct and judgment that helps determine
right and
a. Ethics
b. Management
c. Leadership
d. Business
e. Organization
Answer: A

127. Which of the following is a good tip to employees who must deal with
different cultures?
a. Assume similarities until differences are proven.
b. Emphasize description rather than evaluation or interpretation.
c. Practice sympathy.
d. Act decisively to minimize ambiguity.

125. Leaders learn how to manage their time so they can accomplish
a. More, less
b. Less, more
c. Everything, nothing
d. Nothing, everything
e. Greatness, nothing
Answer: A
with
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126. Which leadership style is most likely to fail when employees are lost and
need direction?
a. Affiliative
b. Authoritative
c. Coercive
d. Coaching
e. None of the above
Answer: A
127. A is someone who gets things done through influence by guiding or
inspiring others to voluntarily participate in a cause or project.
a. Leader
b. Manager c. Coworker
d. Volunteer e. Boss
Answer: A

128. behavior may be

a. Legal
b. Officially permitted
c. Officially authorized
d. Permissible
e. Official
Answer: A
129. and still not be ethical. set the tone for how your business operates.
a. You
b. Managers
c. Staff
d. Employees
e. Stakeholders
Answer: A

130. One of the reasons people become entrepreneurs is to gain control over
their time. So allow yourself
a. Downtime
b. Play time
c. Creative-thinking time
d. All of the above
e. None of the above
131. Which of the following is a desirable feature of leadership?
A) one-directional influence from the leader to the follower
B) Coercive power and authority
C) Lack of freedom
D) Passivity of followers
E) Coexistence of leaders and managers
Answer: E
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132.
133.
134.
135. Leadership is best defined as
A) the ability to merely project one's abilities in the lack of actual
accomplishments B) the ability to reduce the dependence of team members on
each other
C) the ability to induce the team members to focus on individual goals rather
than
collective goals
D) the ability to influence a group toward the achievement of a vision or set of
goals E) the ability to use factors like training and experience to reduce
dependence on
formal leadership
Answer: D

4) Trait theories of leadership focus on

A) The special relationship that leaders establish with a small group of their
followers
B) The personal qualities and characteristics that differentiate leaders from
nonleaders
C) The way the leader makes decisions
D) The extent to which followers are willing and able to accomplish a specific task
E) The match between the leader's style and the degree to which the situation
gives
the leader control
Answer: B

The Ohio State Studies narrowed the independent dimensions of leader

behavior to two that substantially accounted for most of the leadership
behavior described by employees: consideration and
A) employee-orientation
B) Empathy
C) Constructing vision
D) Initiating structure
E) Charisma
Answer: D

The two dimensions of leadership behavior identified in the University of

Michigan studies are
A) Absolute leadership and contingency leadership
B) Transformational leaders and authentic leaders
C) employee-oriented leaders and production-oriented leaders
D) Initiating structure and consideration
E) Initiation and completion
Answer: C

136. The University of Michigan studies define a(n)

a personal interest in the needs of his or her subordinates.
A) contingency
B) task-oriented
C) employee-oriented
D) production-oriented
E) Structure initiating
Answer: C
leader as one who takes
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137. According to the Fiedler contingency model, high managerial control is
characterized by
A) High task structure, good leader-member relations, and strong position power
B) Limited position power, good leader-member relations, and low task structure
C) Less structured jobs, strong position power, and moderate leader-member
relations
D) Broad employee responsibilities, low position power, and moderate leader-
member relations
E) Good leader-member relations, low position power, unstructured jobs
Answer: A

138. According to the Big Five personality model, emotional stability is the most
important trait of effective leaders. Answer:
FALSE

139. According to the path-goal theory, directive leadership is likely to be

welcomed and accepted by employees with high ability or considerable
experience. Answer:
FALSE

140. Charismatic leadership is a manifestation of innate traits, and it cannot be

learned or enhanced. Answer
: FALSE

141. Transformational leadership has a greater impact on the bottom line in

smaller, privately held firms than in more complex organizations. Answer
: TRUE
142. In a communication process, is the check on how successful we have been
in
transferring our messages as originally intended.
A) filtering
B) signal
C) feedback
D) encoding
E) noise
Answer: C

143. Which of the following communication channels provides the highest

information richness?
A) e-mail
B) face-to-face conversations
C) online group discussions
D) voice mail
E) memos and letters
Answer: B
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