Test Bank For Creating the Enterprise 1st Edition by by William B. Gartner
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Creating the Enterprise - Test Bank
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Creating The Enterprise - Test Bank
Chapter 3 Enterprising Fundamentals
TRUE/FALSE
1. One of the six principles of persuasion is authority. ANS: T PTS: 1
2. That people defer to experts underlies the principle of reciprocity. ANS: F PTS: 1
3. Under Covey’s Quadrant, irrelevant mail is an example of a problem that is not urgent...
,Chapter 1 Enterprise: Creating a Framework for Success
TRUE/FALSE
1. An organization is simply an entity that involves people doing work for a purpose.
ANS: T PTS: 1
2. Entrepreneurs are individuals who engage in activities that initiate and then direct an organization to
serve their purposes.
ANS: F PTS: 1
3. Entrepreneurs are individuals who are involved in the startup of a business.
ANS: T PTS: 1
4. The money left over after all expenses are paid is called the net working capital
ANS: F PTS: 1
5. Nearly all businesses in the U.S. are small businesses.
ANS: T PTS: 1
6. Most small businesses grow to become major corporations.
ANS: F PTS: 1
7. A collection of industries is called a community.
ANS: T PTS: 1
8. Intellectual property rights vary from country to country.
ANS: T PTS: 1
9. Managing a fledgling business so that it survives and flourishes is called transformation.
ANS: F PTS: 1
10. Most new businesses fail before the end of their tenth year.
ANS: T PTS: 1
11. Only businesses with fewer than five employees can be called “life-style” businesses.
ANS: F PTS: 1
12. By any measure, the U.S. is the most enterprising country in the world.
ANS: F PTS: 1
,13. The two main reasons enterprisers start new businesses is because they see an opportunity to exploit
by starting a business or because they can’t find a job and have to start a business because they have no
other choice.
ANS: T PTS: 1
14. The majority of the new Internet-related companies in the business-to-consumer sector have failed.
ANS: T PTS: 1
15. The organizational imperative states that the needs and objectives of a business are the same as the
needs and objectives of its stakeholders.
ANS: F PTS: 1
16. The control dimension involves making determinations about who will share in the benefits of the
business.
ANS: F PTS: 1
17. Generally speaking, the goals of a business and the goals of its founder remain the same during the life
of a growing business.
ANS: F PTS: 1
18. Customers are important to any business, but they are not considered to be stakeholders.
ANS: F PTS: 1
19. The community can constrain the activities of a business, but the community is not considered to be a
stakeholder.
ANS: F PTS: 1
20. The life cycle of enterprise is made up of three stages: startup, development and transformation.
ANS: F PTS: 1
21. One of Gardner’s seven intelligences is linguistic.
ANS: T PTS: 1
22. One of Gardner’s seven intelligences is artistic.
ANS: F PTS: 1
23. In “self-actualization ethics” every individual seeks to pursue his or her unique qualities and abilities.
ANS: T PTS: 1
24. An environment involves everyone and everything that is not about you.
ANS: T PTS: 1
, 25. As a business grows and undergoes transformation, control and ownership tend to separate.
ANS: T PTS: 1
MULTIPLE CHOICE
1. Enterprisers are involved in which aspect of the life of an organization?
a. Starting a business
b. Managing and owning a business
c. Both a. and b.
d. Neither a. nor b.
ANS: C PTS: 1
2. Entrepreneurs are involved in which aspect of the life of an organization?
a. Starting a business
b. Managing and owning a business
c. Both a. and b.
d. Neither a. nor b.
ANS: A PTS: 1
3. Which of the following is not a correct statement with respect to small businesses?
a. They control the majority of corporate assets
b. They account for approximately half of all private sector goods and services produced in
the U.S.
c. They contribute the majority of new jobs in the U.S.
d. They are a major source of innovation and new product development
ANS: A PTS: 1
4. An organization that is created for the purpose of generating value for its owners is a:
a. New enterprise
b. Business
c. Community
d. Corporation
ANS: B PTS: 1
5. The process of enterprise during which a business is developed and managed for survival and growth
is
a. Emergence
b. Newness
c. Transformation
d. Consolidation
ANS: B PTS: 1
6. The process of enterprise during which a business undergoes transition and change is
a. Emergence
b. Newness
c. Transformation
d. Consolidation
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