CH-1-2 The Foundations of Entrepreneurship – Essentials of Entrepreneurship and Small Business Management : Exam Guide

This Document Contains Chapters 1 to 2 Chapter 1 The Foundations of Entrepreneurship 1) One of the most significant economic developments in recent business history relates to the: A) growth of blue-chip corporations. B) development of Pacific Rim countries. C) entrepreneurial spirit. D) additional employment opportunities offered by government institutions. Answer: C 2) The recent number of job losses in large corporations compared to the jobs created by small business has changed the perception of ________ for launching a new business. A) prestige B) risk C) financing opportunities D) short-term potential Answer: B 3) The profile of an entrepreneur includes: A) a desire for responsibility and moderate risk. B) confidence in the ability to succeed and determination. C) a high level of energy, a desire for immediate feedback and a future orientation. D) All the above Answer: D 4) An entrepreneur is one who: A) is willing to attempt to implement a business concept and then give up if it does not meet immediate expectations. B) understands the process of developing an idea and does not need to understand what it means to bring that idea to a viable business concept. C) knows that the concept they are about to develop will result in a profitable business. D) creates a new business concept for the purpose of achieving profit and growth by assembling the necessary resources to capitalize on identified opportunities. Answer: D 5) All of the following are characteristics of the typical entrepreneur except: A) confidence in his/her ability to succeed. B) value of money over achievement. C) desire for immediate feedback. D) a future orientation. Answer: B 6) Entrepreneurs are characterized by: A) skill at organizing. B) desire for immediate feedback. C) high energy levels. D) All of the above Answer: D 7) Entrepreneurs who repeatedly start businesses and grow to a sustainable size before striking out again are known as ________ entrepreneurs. A) opportunistic B) persistent C) serial D) classic Answer: C 8) Entrepreneurs typically possess: A) the ability to easily access capital. B) a set of unique skills that is usually accompanied by advanced degrees in several areas. C) a high level of commitment, have a tolerance for ambiguity, are flexible and tenacious. D) specialized technical abilities. Answer: C 9) Entrepreneurs who start businesses because they cannot find work any other way are: A) necessity entrepreneurs. B) serial entrepreneurs. C) opportunity entrepreneurs. D) corporate cast-offs. Answer: A 10) In addition to the opportunity to create their own destiny and enjoy what they do, entrepreneurs also benefit from the ability to: A) earn tremendous wealth without risk and uncertainty. B) make a difference in an area important to them and be recognized for those efforts. C) create wealth without providing true value. D) exploit the opportunities that the free enterprise system offers. Answer: B 11) In a large organization, an individual may be stifled and limited by a wide variety of factors. However, by owning one's own business, the only limits are one's own creativity, talent, and determination. In this sense, small business ownership offers the advantage of the: A) opportunity to reach one's full potential. B) opportunity to reap unlimited profits. C) chance to learn from other's mistakes. D) ability to accumulate certain wealth. Answer: A 12) Which of the following is a benefit of entrepreneurship? A) The opportunity to gain control over your own destiny. B) The opportunity to reach your full potential. C) The opportunity to do what you enjoy. D) All of the above Answer: D 13) Potential drawbacks of entrepreneurship may include: A) uncertainty of income, risk, long hours, and high stress. B) uncertainty of income, risk, easy hours, and frequent vacations. C) uncertainty of income, risk, long hours, and the immediate accumulation of wealth. D) certainty of income, risk, long hours, and high stress. Answer: A 14) It is estimated that ________ percent of new businesses fail within two years, while ________ percent fail within five years. A) 31; 51 B) 51; 64 C) 35; 41 D) 51; 31 Answer: A 15) Within five years, ________ percent of new businesses will fail. A) 31 B) 45 C) 51 D) 65 Answer: C 16) The majority of new business owners work: A) fewer than 40 hours per week. B) more than 40 hours per week. C) more than 70 hours per week. D) more than 80 hours per week. Answer: B 17) Nearly ________ of entrepreneurs start their businesses between the ages of 25 and 44 and the number of Americans in that age range currently is ________. A) one-half; 8.5 million B) two-thirds; 85,000 C) two-thirds; 85 million D) on-fourth; 85 million Answer: C 18) Factors that feed the economic boom behind entrepreneurship include: A) demographic and economic factors. B) technology and cloud computing. C) the shift to a service-based economy and international opportunities. D) All of the above Answer: D 19) Which of the following is NOT one of the forces driving the entrepreneurial trend in our country? A) Shift away from a service economy B) Independent lifestyle C) International opportunities D) E-commerce and the World Wide Web Answer: A 20) Which of the following technological forces is driving the entrepreneurial trend in our nation? A) Cloud computing B) E-commerce C) Technological advancements D) All of the above Answer: D 21) Entrepreneurs may find benefit from the Internet due to its potential: A) if the organization is willing to invest millions of dollars in this effort. B) only if the entrepreneur has a high level of technical abilities. C) as a relatively low-cost solution to expand its revenue-generating abilities. D) to take all pressure off other attributes of the business venture. Answer: C 22) International opportunities are: A) clearly out of reach for entrepreneurial businesses. B) now within the reach of entrepreneurial businesses and may present significant opportunities. C) highly limited for entrepreneurs. D) risky and do not merit serious consideration by the entrepreneur. Answer: B 23) Which of the following statements concerning small businesses and international markets is false? A) Although terrorism and global recession have slowed the growth of international trade somewhat, global opportunities for small businesses have a long-term positive outlook. B) Although the U.S. is an attractive market, approximately 95 percent of the world's population lives outside its borders. C) Because exporting is so complex and requires a company to have so many international experts on staff, exporting is not feasible for small businesses. D) Small companies comprise 97 percent of all businesses engaged in exporting, yet they account for only 30 percent of the nation's export sales. Answer: C 24) Small companies that operate globally from their inception are referred to as: A) micro-multinationals. B) intrapreneurial ventures. C) global companies. D) international companies. Answer: A 25) Small companies that have expanded successfully into foreign markets tend to rely on all but which of the following strategies? A) Research foreign markets thoroughly. B) Focus on many countries initially. C) Utilize government resources designed to help small companies establish an international presence. D) Forge alliances with local partners. Answer: B 26) Entrepreneurial couples who work together as co-owners of their business are referred to as: A) dual entrepreneurs. B) corporate dropouts. C) corporate cast-offs. D) copreneurs. Answer: D 27) Women in business still experience ________ as they attempt to break the "glass ceiling." A) success B) opportunities C) discrimination D) ease of navigation Answer: C 28) The demographic attributes of successful entrepreneurs are: A) limited to specific ages, genders, and ethnic backgrounds. B) uncertain and have not been fully studied or analyzed. C) are key predictors that determine how long the business will survive. D) highly diverse relating to age, gender, and ethnicity. Answer: D 29) Which of the following statements is not true regarding the diversity of entrepreneurs? A) Minority-owned businesses have come a long way in the past decade, and their success rate is climbing. B) Minority-owned businesses now account for approximately 22 percent of all businesses in the U.S. C) Immigrants with more education and experience than those of the past are coming to the U.S. and succeeding in entrepreneurial ventures. D) The numbers of part-time and home-based entrepreneurs are rising. Answer: B 30) Which of the following statements about women-owned businesses is false? A) The businesses women start tend to be smaller than those men start. B) Women own about 28 percent of all privately held businesses in the U.S. C) The survival rate of women-owned businesses is much lower than that of U.S. businesses overall. D) Most women-owned companies are concentrated in retailing and services. Answer: C 31) ________ percent of all U.S. businesses are family owned and managed. A) Twenty-five B) Fifty C) Seventy D) Ninety Answer: D 32) "Copreneurs" are defined as: A) entrepreneurs that work part-time. B) highly successful entrepreneurs with prior company experience and background. C) those entrepreneurs that will eventually combine their business with another venture. D) entrepreneurial couples that work together as co-owners of their business. Answer: D 33) Which of the following is NOT a characteristic of a successful working relationship between copreneurs? A) A clear definition of one partner as "boss" and the other as "subordinate" B) Compatible business and life goals C) Complementary business skills D) A clear division of roles and authority based on each partner's skills and abilities Answer: A 34) Which of the following is a characteristic of copreneurs? A) Mutual respect B) Complementary business skills C) A clear division of roles and authority D) All of the above Answer: D 35) Approximately ________ percent of corporate managers who are "cast off" as companies downsize become entrepreneurs. A) 5 B) 15 C) 20 D) 45 Answer: C 36) Melinda and John Perez, both corporate attorneys in New York City, have grown tired of their lengthy daily commute, the stress of their jobs, and the overbearing policies of their employers. They have decided to leave their six-figure jobs and together open a guide service in Wyoming. Melinda and John are examples of: A) corporate castoffs and corporate dropouts. B) corporate dropouts and copreneurs. C) corporate castoffs and copreneurs. D) copreneurs and serial entrepreneurs. Answer: A 37) Entrepreneurs that use their skills to create a profitable business that is designed to achieve social and environmental goals for the common good are known as: A) social entrepreneurs. B) not-for-profit entrepreneurs. C) copreneurs. D) serial entrepreneurs. Answer: A 38) Of the 28 million businesses in the United States, more than ________ are considered small. A) 50 percent B) 75 percent C) 88 percent D) 99 percent Answer: D 39) According to the U.S. Small Business Administration, a common delineation of a small business is one that employs fewer than: A) 50 people. B) 100 people. C) 250 people. D) 500 people. Answer: B 40) The nation's small businesses: A) employ more than 51 percent of the nation's private sector workforce. B) create more jobs than do big businesses. C) account for 47 percent of business sales. D) All of the above Answer: D 41) Small companies: A) created fewer jobs than big companies in the last decade. B) are concentrated in the manufacturing and retail sectors. C) are the leaders in offering training and advancement opportunities to workers. D) account for approximately 10 percent of the nation's GDP and 25 percent of business sales. Answer: C 42) The majority of small companies are concentrated in the ________ and ________ industries. A) manufacturing; retail B) manufacturing; service C) retail; service D) wholesale; retail Answer: C 43) David Birch, president of the research firm Cognetics, suggests that three percent of small businesses create approximately ________ percent of new jobs. A) 50 B) 60 C) 70 D) 80 Answer: C 44) David Birch describes small companies growing at 20 percent or more per year with at least $100,000 in annual sales that create 70 percent of the net new jobs in the economy as: A) "assertive." B) "antelopes." C) "aggressive." D) "gazelles." Answer: D 45) Small companies are incubators of new sales ideas, products and services and create ________ times more patents per employee than large companies. A) 3 B) 5 C) 10 D) 13 Answer: D 46) One hallmark of successful entrepreneurs is the ability to: A) be willing to gamble. B) fail intelligently. C) overlook past successes. D) repeat the same mistake. Answer: B 47) John has come to you for advice on starting a business venture. He wants to know the best way to gain the experience he'll need. You suggest that he: A) read a small business book. B) seek knowledge and experience in the field he wishes to enter. C) determine his weaknesses and return to school for a term or two. D) just jump in and learn as he goes. Answer: B 48) Most startup companies can expect to need ________ capital than they anticipate. A) less B) the same C) more D) within 10% of the Answer: C 49) The primary cause of small business failures is: A) the lack of capital. B) management mistakes. C) poor location. D) improper inventory control. Answer: B 50) Entrepreneurs tend to be overly ________ and commonly misjudge the ________ requirements of going into business. A) optimistic; personal B) optimistic; financial C) pessimistic; financial D) optimistic; professional Answer: B 51) The only people who ________ are those who never do anything or never attempt anything new. A) succeed B) prosper C) profit D) fail Answer: D 52) Which of the following was not identified as one of the suggestions for small business success? A) Develop a business plan as you grow your business. B) Manage your financial resources and understand financial statements. C) Know your business in depth. D) Learn to manage people successfully. Answer: A 53) Which of the following is/are true regarding business plans? A) Provide a pathway to success. B) Allow entrepreneurs to replace faulty assumptions with facts before making the decision to go into business. C) Create a benchmark against which entrepreneurs can measure actual company performance. D) All of the above Answer: D 54) Most entrepreneurs believe that ________ is what matters most, but ________ is the most important financial resource for a small business owner. A) cash; profit B) profit; cash C) profit; inventory D) inventory; cash Answer: B 55) Entrepreneurs can increase their chances for success if they: A) know their business in depth and develop a solid business plan. B) manage their financial resources and understand financial statements. C) learn to manage people and keep in touch with how they react to stress and balance their health needs with the needs of the business. D) All of the above Answer: D 56) The 21st century has seen record numbers of entrepreneurs launching businesses on a global basis. Answer: True 57) Current competitive conditions favor large companies over smaller ones because of their flexibility combined with their ability to use their size to achieve efficiency and economies of scale. Answer: False 58) Increased entrepreneurial activity is a phenomenon unique to the U.S. Answer: False 59) One study conducted by the Global Entrepreneurship Monitor (GEM) reports that nearly one in eight people in the United states is working to start a business.. Answer: True 60) Research has isolated a set of characteristics that can predict who will succeed as an entrepreneur. Answer: False 61) Serial entrepreneurs repeatedly start businesses and grow them to a sustainable size before striking out again. Answer: True 62) Surveys show that small business owners believe that, as entrepreneurs, they work harder, earn more money, and are happier than if they worked for a large company. Answer: True 63) The opportunity to reap impressive profits is the primary motivation for most entrepreneurs. Answer: False 64) Social entrepreneurs use their skills to create profitable businesses and also achieve economic, social and environmental goals for the common good. Answer: True 65) Technology offers a significant advantage for entrepreneurs. Answer: True 66) Entrepreneurs choose to enter their particular business fields because they have an interest in them and enjoy those lines of work. They have often made their hobbies their business. Answer: True 67) The majority of new business owners work fewer than 40 hours per week. Answer: False 68) The majority of new business owners devote more than 40 hours per week to their companies. Answer: True 69) One advantage of being your own boss and owning a small business is that work hours are very flexible and leisure time is abundant. Answer: False 70) Entrepreneurs are not willing to give up a steady pay check. Answer: False 71) There is concern over the future of entrepreneurship because so few high school and college students want to start their own companies. Answer: False 72) The shift to a service economy has not had a significant impact on entrepreneurial opportunities. Answer: False 73) Cloud computing allows businesses to use a variety of applications and has reduced costs and added flexibility. Answer: True 74) Women now own 28.7 percent of all privately-held businesses in the United States. Answer: True 75) Women play a minor role in the entrepreneurial arena. Answer: False 76) Starting a part-time business is a popular gateway to entrepreneurship. Answer: True 77) Increasing numbers of women are discovering that the best way to break the "glass ceiling" that prevents them from rising to the top of many organizations is to start their own companies. Answer: True 78) Diversity may be considered a characteristic of entrepreneurs, as they don't fit any statistical norm. Answer: True 79) Minority-owned businesses have come a long way in the past decade, and their success rate is climbing. Answer: True 80) A major advantage of launching a business part-time is the lower risk it offers in case the business fails. Answer: True 81) Most home-based businesses are simple cottage industries such as crafts or sewing. Answer: False 82) Not all family-owned businesses are small; in fact, approximately one-third of the Fortune 500 companies are family businesses. Answer: True 83) Of the 25 million businesses in the U.S., about 40 percent are family owned and managed. Answer: False 84) Ninety-percent of businesses in the United States are family-owned and managed and account for 62 percent of total U.S. employment. Answer: True 85) Family-owned and managed businesses account for 78 percent of all new jobs. Answer: True 86) Most family businesses survive to the fourth generation. Answer: False 87) Successful "copreneurs" create a division of labor based on expertise. Answer: True 88) About 20 percent of downsized corporate managers have become entrepreneurs. Answer: True 89) Corporate downsizing has spawned a generation of entrepreneurs known as "corporate castoffs." Answer: True 90) Because they have college degrees, a working knowledge of business, and years of management experience, both corporate castoffs and corporate dropouts who become entrepreneurs will most likely increase the small business survival rate. Answer: True 91) David Birch considers "gazelles" those businesses that grow at 20 percent or more per year and gross at least $100,000 in annual sales. Answer: True 92) Small companies have created at least two-thirds of the net new jobs in the U.S. economy. Answer: True 93) Small businesses actually create more jobs than the number of jobs big businesses create. Answer: True 94) Large companies create significantly more patents and other forms of innovations per research and development dollars spent than small firms. Answer: False 95) Because of their size and limited resources, small businesses rarely create innovations that are important to the U.S. economy. Answer: False 96) About 51 percent of new businesses fail within five years. Answer: True 97) Most entrepreneurs have invested the time to develop a sound business plan. Answer: False 98) An often fatal error made by many small business owners is to open their businesses on a "shoestring," causing them to be undercapitalized. Answer: True 99) About 75 percent of the businesses in the U.S. can be considered "small" businesses. Answer: False 100) The faster a small company grows, the greater its appetite for cash. Answer: True 101) The primary cause of small business failure is lack of capital. Answer: False 102) Entrepreneurs realize that failure is a possibility, but are not paralyzed by that fear. Answer: True 103) To boost sales, small businesses, especially start-ups, should grant credit to anyone who wants to buy their products or services. Answer: False 104) As an entrepreneur, you are always working for someone else-your customers. Answer: True 105) Establishing prices that will generate the necessary profits means that business owners must understand how much it costs to make, market, and deliver their products and services. Answer: True 106) If an entrepreneur has a good enough product or service to sell, a business plan is not really necessary since the product or service will sell itself. Answer: False 107) Successful entrepreneurs recognize that their most valuable asset is their time, and they learn to manage it effectively to make themselves and their companies more productive; having passion about their businesses, products, and customers enables them to stay motivated. Answer: True 108) Expanding a business usually requires no significant changes in structure or business practices. Answer: False 109) What is an entrepreneur? Give a brief profile of a typical entrepreneur. What is the primary motivation for the typical entrepreneur? Answer: An entrepreneur is someone who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize on them. While entrepreneurs tend to exhibit no isolated set of required traits, an entrepreneurial profile contains the following characteristics: • Desire for responsibility • Preference for moderate risk • Confidence in their ability to succeed • Desire for immediate feedback • High level of energy • Future orientation • Skill at organizing Entrepreneurs are motivated most by a desire to control their own destiny, reach their own potential, make a difference, reap unlimited profits, and enjoy what they are doing. 110) Discuss the potential benefits and drawbacks of entrepreneurship. Answer: Entrepreneurs benefit by controlling their own destiny, reaching their own potential, making a difference, reaping impressive profits, contributing to society, and enjoying what they are doing. Potential drawbacks include the uncertainty of income, risk of losing their entire investment, long hours and hard work, a somewhat lower quality of life until the business gets started, high levels of stress, and absolute responsibility. 111) Describe the factors that are driving the current entrepreneurial trend in the U.S. economy. Answer: • A more positive attitude toward entrepreneurs • Higher levels and greater availability of entrepreneurial education • Demographic and economic factors, such as younger people starting businesses and greater opportunities for wealth • Shift to a service economy, which opens up opportunities for small business owners • Technological advancements, the internet and cloud computing that make it easier for small businesses to compete on a more level playing field with larger companies • Independent lifestyle, allowing people more freedom to make choices about what they want to do • International opportunities are opening more doors than ever before for entrepreneurs 112) Discuss the role that the following groups are playing in leading the ongoing surge in entrepreneurial activity: • women • minorities • immigrants • part-time entrepreneurs • home-based entrepreneurs • family businesses • copreneurs • corporate castoffs • corporate dropouts Answer: Women often face discrimination in the workplace. Entrepreneurship offers women opportunities for economic growth. Minorities, like women, also face discrimination in the workplace and can benefit through entrepreneurship. Immigrant entrepreneurs arrive with more education and experience. Their dedication and desire to succeed enable them to achieve their entrepreneurial dreams. Part-timers have the best of both worlds and can ease into a business without sacrificing a steady paycheck and benefits. Home-based businesses are booming. Technology and this "homecoming" support nearly 44 percent of U.S. households with some form of home office activity. Family businesses are an integral part of our economy; 90 percent of all the businesses in the U.S. are family owned. Copreneurs are entrepreneurial couples who work together. They represent the fastest growing business sectors. Corporate castoffs have extensive on-the-job experience and are dislocated workers due to corporate downsizing. Corporate dropouts leave organizations to pursue a better way of life spearheaded by the "trust gap" over job security. 113) Discuss the impact of small businesses on the U.S. economy, including sales, GDP, job creation, and innovation. Answer: The resurgence of the entrepreneurial spirit is the most significant economic development in recent business history. Small businesses have introduced innovative products and services, pushed back technological frontiers, created new jobs, opened foreign markets, and in the process, sparked the U.S. economy into regaining its competitive advantage in the world. Approximately 99 percent of all businesses in the U.S. are small businesses. They employ 51 percent of the nation's private sector workforce, created 66-75 percent of new jobs in the U.S. since the early 1990s, produce 51 percent of the country's private GDP, and account for 47 percent of business sales. 114) The following lists the ten deadly mistakes of entrepreneurship. 1. Management mistakes 2. Lack of experience 3. Poor financial control 4. Weak marketing efforts 5. Failure to develop a strategic plan 6. Uncontrolled growth 7. Poor location 8. Improper inventory control 9. Incorrect pricing 10. Inability to make the entrepreneurial transition Select one of these deadly mistakes, describe what it may look like for the entrepreneur, and give an example. Answer: 1. Management mistakes-Primary cause of business failure; may include lack of knowledge, leadership ability, etc. 2. Lack of experience-In the field they want to enter (technical ability). 3. Poor financial control-Undercapitalization; lax customer credit policies; lack of understanding of financial aspects; lack of proper cash management techniques. 4. Weak marketing efforts-Building a strong customer base requires a sustained creative marketing effort. Keeping them coming back requires that you provide them with value, quality, convenience, service, and fun. 5. Failure to develop a strategic plan-Failure to plan, however, usually results in failure to survive. Without a clearly defined strategy, a business has no sustainable basis for creating and maintaining a competitive edge in the marketplace. Building a strategic plan forces an entrepreneur to assess realistically a proposed business' potential. 6. Uncontrolled growth-Expansion usually requires major changes in organizational structure, business practices such as inventory and financial control procedures, personnel assignments, and other areas. However, the most important change occurs in managerial expertise. 7. Poor location-The location question is much too critical to leave to chance. Especially for retailers, the lifeblood of the business - sales - is influenced heavily by choice of location. 8. Improper inventory control-Insufficient inventory levels may lead to dissatisfied customers; too much inventory leads to increased storage and handling costs. Entrepreneurs must ensure that they not only have the correct amount of inventory, but also the correct items in inventory. 9. Incorrect pricing-Establishing prices that will generate the necessary profits means that business owners must understand how much it costs to make, market, and deliver their products and services. They must ensure that they are not underpricing their products and services. 10. Inability to make the entrepreneurial transition-After the start-up, growth usually requires a radically different style of management, one that requires delegation of authority. 115) Describe the small business failure rate. What are the primary causes of business failures, and what steps can an entrepreneur take to avoid becoming a business failure statistic? Answer: Because of their limited resources, inexperienced management, and lack of financial stability, small businesses suffer a mortality rate significantly higher than that of larger, established businesses. Some steps to take to avoid failure include: achieving management competence, gaining experience, achieving financial control, developing a strategic plan, controlling growth, seeking out a good location, controlling inventory, knowing your business in depth, understanding financial statements, developing a solid business plan, learning to manage people effectively, and keeping in tune with yourself. Mini Case 1-1: Hudson's Dilemma Bill Hudson was a real craftsman when it came to being a machinist. Bill had learned almost all that he knew from Hugo Huffman, his first and only employer. Bill Hudson was married and had three young children. He was 33 years old and had worked for Hugo ever since he finished his tour in the army. In 12 years, Bill had polished his skills under the watchful and critical eye of Hugo Huffman. Hugo was quick to recognize Bill's talent for the trade. Bill had a positive attitude about learning and displayed a drive for perfection that Hugo admired. Hugo's Machine Shop was a successful small business. Its success was based mostly on the reputation for quality that had been established over its 42 years in operation. Hugo had come to this country with his new wife, Hilda, when he was in his late twenties. Now the business was a success, but Hugo remembered the early years when he and Hilda had to struggle. Hugo wanted the business to continue to produce the highest quality craftsman products possible. On a Friday evening, he called Bill into his office at closing time, poured him a cup of half-day-old coffee, and began to talk with him about the future. "Bill, Hilda and I are getting old and I want to retire. It has been 42 years of fun but these old hands need a rest. In short, Hilda and I would like you to buy the business. We both feel that your heart is in this craft and that you would always retain the quality that we have stood for." Bill was taken back by the offer. He, of course, knew Hugo was getting older, but had no idea Hugo would retire. Bill and his wife, Anna, had only $4,200 in the bank. Most of Bill's salary went for the normal costs of rearing three children. Hugo knew Bill did not have the money to buy the business in cash, but he was willing to take a portion of the profits for the next 15 years and a modest initial investment from Bill. Bill had, for the past four years, made most of the technical decisions in the shop. Bill knew the customers and was well respected by the employees. He had never been involved in the business side of the operation. He was a a high school graduate but had never taken business courses. Bill was told by Hugo that even after deducting the percentage of the profits he would owe under the sales agreement, he would be able to almost double his annual earnings. Bill would have to take on all the business functions himself because Anna had no business training either. 116) Which entrepreneurial characteristics does Bill have that may be important to his success? Which characteristic could lead to his failure? Answer: This case requires the student to compare Bill's personality characteristics with those of the typical entrepreneur. Factors in Bill's favor include knowledge of the technical aspects of the business, a willingness to learn, a devotion to the business and its customers, and a favorable sales arrangement. Factors working against Bill include his lack of business training and experience, a lack of personal assets, and possibly, insufficient management skills. 117) What steps should Bill take to avoid the pitfalls common to a small business? Answer: Generally, it appears that Bill has a good chance of becoming a success if he can overcome the weaknesses mentioned above. The established business-and its reputation-that Bill is purchasing are important benefits. Chapter 2 Inside the Entrepreneurial Mind: From Ideas to Reality 1) The ability to develop new ideas and to discover new ways of looking at problems and opportunities is called: A) entrepreneurship. B) innovation. C) creativity. D) creative thinking. Answer: C 2) An entrepreneurial "secret" for creating value in the marketplace is: A) applying creativity and innovation to solve problems. B) creating new products and services. C) learning by doing. D) applying lessons learned from history. Answer: A 3) The ability to apply creative solutions to problems and opportunities to enhance or to enrich people's lives is called: A) entrepreneurship. B) innovation. C) creativity. D) creative thinking. Answer: B 4) Harvard's Ted Levitt says that creativity is ________ new things, and innovation is ________ new things. A) thinking; doing B) doing; thinking C) seeing; doing D) thinking; applying Answer: A 5) Entrepreneurship is a constant process that relies on: A) creativity, innovation, and profit. B) the ability to win over the consumer. C) creativity, innovation, and application in the marketplace. D) intellectual property rights. Answer: C 6) ________ is necessary for building a competitive advantage and for business survival. A) One single idea B) A motivated owner C) Creativity D) A low-priced product Answer: C 7) Creativity often involves creating something from nothing. However, it is more likely to result in: A) elaborating on the present. B) putting old things together in new ways. C) taking something away to create something simpler or better. D) All of the above Answer: D 8) When developing creative solutions to modern problems, entrepreneurs must: A) go beyond merely using whatever has worked in the past. B) limit the creative process to only profitable ventures. C) remember what has worked in the past. D) pay attention to limiting factors. Answer: A 9) Research shows that anyone can learn to be creative. The problem is: A) many organizations fail to foster an environment that encourages creativity. B) most people never tap into their pools of innate creativity. C) most people have never been taught to be creative. D) All of the above Answer: D 10) Research into the operation of the human brain shows that each hemisphere of the brain: A) develops symmetrically. B) controls similar functions. C) does not dominate the other hemisphere. D) processes information differently. Answer: D 11) The left brain is guided by: A) kaleidoscopic, lateral thinking. B) linear, vertical thinking. C) asymmetrical thinking. D) intuitive thinking. Answer: B 12) The right brain is guided by: A) kaleidoscopic, lateral thinking. B) linear, vertical thinking. C) asymmetrical thinking. D) logical thinking. Answer: A 13) Which hemisphere of the brain is responsible for language, logic, and symbols? A) Right hemisphere B) Left hemisphere C) Lateral hemisphere D) Intuitive hemisphere Answer: B 14) Which hemisphere of the brain is responsible for the body's emotional, intuitive, and spatial functions? A) Right hemisphere B) Left hemisphere C) Vertical hemisphere D) Logical hemisphere Answer: A 15) Which hemisphere of the brain processes information in a step-by-step fashion? A) Right hemisphere B) Left hemisphere C) Lateral hemisphere D) Intuitive hemisphere Answer: B 16) Which hemisphere of the brain processes information all at once and by relying heavily on images? A) Right hemisphere B) Left hemisphere C) Vertical hemisphere D) Logical hemisphere Answer: A 17) ________ vertical thinking is narrowly focused and systematic, proceeding in a highly logical fashion from one point to the next. A) Left-brained B) Right-brained C) Unconventional D) Intuitive Answer: A 18) ________ lateral thinking is somewhat unconventional and unstructured. A) Left-brained B) Right-brained C) Systematic D) Logical Answer: B 19) All of the following represent barriers to creativity that entrepreneurs impose upon themselves except: A) focusing on being too logical. B) being too practical. C) blindly following rules. D) searching for more than one answer. Answer: D 20) Entrepreneurs can stimulate their own creativity and encourage it among workers by: A) expecting and tolerating failure. B) avoiding problems. C) limiting rewards. D) not taking chances. Answer: A 21) Which of the following is not one of the ways entrepreneurs can stimulate their own creativity and encourage it among their workers? A) Provide creativity training. B) Encourage curiosity. C) View challenges as problems. D) Develop a corporate culture that both fosters and rewards creativity. Answer: C 22) Employees must be given the tools and resources they need to be creative. One of the most valuable set of resources is: A) setting limits and providing challenges. B) establishing rules and guidelines. C) time, support and encouragement. D) reinforce traditional problem solving methods. Answer: C 23) Hiring a diverse workforce: A) helps in enhancing organizational creativity. B) allows for different ideas and varying methods of problem solving. C) brings in people from different backgrounds, with different cultural experiences, hobbies, and interests. D) All of the above Answer: D 24) The ________ environment has an impact on the level of people's creativity. A) physical B) sounds in the C) external D) internal Answer: A 25) All of the following are enhancements to individual creativity except: A) keeping a journal to record thoughts and ideas. B) limiting your reading sources. C) taking time off. D) allowing yourself to be creative. Answer: B 26) Which of the following is not an enhancement to individual creativity? A) Listening to other people B) Recognizing the creative power of mistakes C) Keeping a toy box in your office D) Working without breaks until the project is complete or the problem is solved Answer: D 27) Which stage of the creative process includes on-the-job training? A) Implementation B) Preparation C) Illumination D) Verification Answer: B 28) This set of experiences may enhance individual creativity. A) Travel and recognize the creative power of mistakes and accidents B) Notice what is missing C) Journal and listen to people and customers D) All the above Answer: D 29) Which stage of the creative process requires one to develop a solid understanding of the problem or decision? A) Investigation B) Preparation C) Illumination D) Verification Answer: A 30) Which stage of the creative process involves viewing the similarities and differences in the information collected? A) Transformation B) Incubation C) Illumination D) Verification Answer: A 31) The ability to see the similarities and the connections among various data and events is called: A) convergent thinking. B) divergent thinking. C) transformational thinking. D) illumination. Answer: A 32) The ability to see the differences among various data and events is called: A) convergent thinking. B) divergent thinking. C) transformational thinking. D) illumination. Answer: B 33) ________ thinking is the ability to see similarities and ________ thinking is the ability to see differences among various data and events. A) Divergent; convergent B) Convergent; divergent C) Convergent; transformational D) None of the above Answer: B 34) During the incubation phase of the creative process, the entrepreneur might do all of the following EXCEPT which one to let ideas "marinate" in his mind? A) Do something totally unrelated for awhile. B) Relax and play regularly. C) Work on the problem or opportunity in a different environment. D) Don't allow one's self to daydream. Answer: D 35) At which stage of the creative process does a spontaneous breakthrough occur, allowing all of the previous stages to come together to produce the "Eureka factor" or the "light bulb goes on"? A) Implementation B) Preparation C) Illumination D) Verification Answer: C 36) "Verification" refers to: A) validating the idea as accurate and useful. B) possibly conducting experiments, running simulations, and test marketing a product or service. C) possibly asking questions such as "will it work?" and "is it really a better solution?" D) All of the above Answer: D 37) The focus of this step in the creative process is to transform the idea into reality. A) Implementation B) Preparation C) Illumination D) Verification Answer: A 38) ________ is a process in which a small group of people interacts to produce a large quantity of imaginative ideas. A) Groupthink B) Mind-mapping C) Brainstorming D) Prototyping Answer: C 39) Effective brainstorming involves all of the following except: A) a small group of people. B) an open, uninhibited environment. C) an effective method to evaluate ideas. D) very little structure. Answer: C 40) ________ is a graphical technique that encourages thinking on both sides of the brain, visually displays the various relationships among the ideas, and improves the ability to view a problem from many sides. A) Brainstorming B) Mind-mapping C) Prototyping D) Groupthink Answer: B 41) Mind-mapping is a useful tool for jump-starting creativity. It includes all of the following except: A) sketching a picture to symbolize the problem or area of focus in the center of a sheet of paper. B) writing down every idea that comes into your mind, connecting each idea to the central picture. C) allowing your mind to rest for a few minutes before integrating the ideas. D) forcing creativity when ideas start to trickle. Answer: D 42) The technique of ________ uses three columns that allows the entrepreneur to weigh both the advantages and the disadvantages of a particular decision and work to maximize the variables that support it while minimizing those that work against it. A) force-field analysis B) TRIZ C) brainstorming D) mind mapping Answer: A 43) The "theory of inventive problem solving" is a left-brained, scientific, systematic process based on innovative patents and is referred to as: A) JIT. B) RP. C) TQM. D) TRIZ. Answer: D 44) The premise behind ________ is that transforming an idea into an actual model will lead to improvements in its design. A) rapid prototyping B) mind-mapping C) brainstorming D) inventions Answer: A 45) The three principles (three Rs) of rapid prototyping are: A) develop a rough model, rapidly, and for the right price. B) develop a complete model, rapidly, and for the right problem. C) develop a rough model, rapidly, and for the right problem. D) develop a right model, roughly, for the right price. Answer: C 46) Steps in the patent process include: A) establishing whether it is a novelty. B) documenting and verifying the date the idea was first conceived. C) searching existing patents. D) All of the above Answer: D 47) To which governmental office must applications for patents be submitted? A) The U.S. Patent and Trademark Office B) The individual State Offices of Patent Development C) The Federal Trade Commission D) The Securities and Exchange Commission Answer: A 48) To protect patent claims, an inventor should be able to verify and document the: A) research conducted to create the invention. B) fact that the invention was created in another country. C) date on which the idea was first conceived. D) initial sales of the invention. Answer: C 49) More than ________ percent of those holding patents win their infringement suits. A) 15 B) 30 C) 45 D) 60 Answer: D 50) Any distinctive word, phrase, symbol, name, or logo a firm uses to distinguish itself or its products is called a: A) trademark. B) patent. C) copyright. D) service mark. Answer: A 51) Which of the following questions should you consider before entering a lawsuit to protect intellectual property? A) Can you afford the loss of time, money, and privacy the lawsuit will bring? B) Can the opponent afford to pay if you win? C) Do you expect to get enough from the suit to pay for the costs of hiring an attorney? D) All of the above Answer: D 52) A ________ is an exclusive right that protects the creators of original works such as literary, dramatic, musical, and artistic works. A) trademark B) patent C) copyright D) service mark Answer: C 53) Copyrights protect the creator of original works such as: A) software, choreography, and motion pictures. B) symbols, names, and designs. C) text and verbiage of any kind. D) slogans and designs. Answer: A 54) Creativity is the ability to apply creative solutions to problems and opportunities to enhance or enrich people's lives. Answer: False 55) Innovation is the ability to develop new ideas and to discover new ways of looking at problems and opportunities. Answer: False 56) Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities. Answer: True 57) Innovation is the ability to apply creative solutions to problems and opportunities to enhance or enrich people's lives. Answer: True 58) Successful entrepreneurs come up with ideas and then find ways to make them work to solve a problem or fill a need. Answer: True 59) Creativity and innovation are the signature of large, entrepreneurial businesses. Answer: False 60) Creativity and innovation are the signature of small, entrepreneurial businesses. Answer: True 61) Innovation must be a constant process because most ideas do not work and most innovations fail. Answer: True 62) For every 3,000 new product ideas, four make it to the development stage, two are actually launched, and only one becomes successful in the market. Answer: True 63) Although creativity sometimes involves generating something from nothing, it more likely results in elaborating on the present, putting old things together in new ways, or taking something away to create something simpler or better. Answer: True 64) Creativity is not only an important source for building a competitive advantage, but it also is necessary for survival. Answer: True 65) History is always a reliable predictor of the future of business. Answer: False 66) Entrepreneurs must embrace traditional assumptions and perspectives about how things ought to be because they support creativity. Answer: False 67) Creative thinking involves research into the operation of the human brain and the roles each hemisphere of the brain plays. Answer: True 68) Successful entrepreneurship requires left-brain thinking. Answer: False 69) The left brain is guided by linear, vertical thinking. Answer: True 70) The left brain relies on kaleidoscopic, lateral thinking. Answer: False 71) The right brain is guided by linear, vertical thinking. Answer: False 72) The right brain relies on kaleidoscopic, lateral thinking. Answer: True 73) While most people see what they have always seen, creative entrepreneurs are able to see beyond preconceptions. Answer: True 74) Research shows that each hemisphere of the human brain processes information differently and that one side of the brain tends to be dominant over the other. Answer: True 75) The left brain handles language, logic, and symbols. Answer: True 76) The right brain takes care of the body's emotional, intuitive, and spatial functions. Answer: True 77) The right brain processes information intuitively-all at once, relying heavily on images. Answer: True 78) Right-brain thinking draws on the power of divergent reasoning, which is the ability to create a multitude of original, diverse ideas, while left-brain thinking counts on convergent reasoning, the ability to evaluate multiple ideas and choose the best solution to a given problem. Answer: True 79) Entrepreneurship requires both left- and right-brained thinking. Answer: True 80) The left brain processes information in a step-by-step fashion. Answer: True 81) Entrepreneurs need to rely on left-brain thinking to generate innovative product, service, or business ideas and use right-brain thinking to judge the market potential of the ideas they generate. Answer: False 82) A paradigm is a preconceived idea of what the world is, what it should be like, and how it should operate and this can influence creativity. Answer: True 83) The left brain processes information intuitively-all at once, relying heavily on images. Answer: False 84) The right brain processes information in a step-by-step fashion. Answer: False 85) Right-brained individuals tend to challenge tradition, custom, and routine. Answer: True 86) Left-brained individuals realize that there may be more than one right answer. Answer: False 87) Successful entrepreneurs push technological and economic boundaries forward in creative ways and sometimes make unconventional decisions. Answer: True 88) The rapidly accelerating rate of change has created an environment in which staying in a leadership position requires constant creativity, innovation, and entrepreneurship. Answer: True 89) Viewing play as frivolous is a mental block that stifles creativity. Answer: True 90) "Constantly being practical" is a mental block that can stifle creativity. Answer: True 91) Businesses typically foster an environment that encourages creativity. Answer: False 92) Ambiguity tends to destroy creativity. Answer: False 93) Failure is an important part of the creative process, as it provides a chance to learn how to succeed. Answer: True 94) Employees tend to rise-or fall-to the level of expectations entrepreneurs have of them. Answer: True 95) Research shows that not everyone can be creative. Answer: False 96) Hiring a diverse workforce makes it more difficult to achieve creativity in the workplace. Answer: False 97) Entrepreneurs can encourage creative thinking in their employees by setting examples of creative behavior and rewarding creative behavior when exhibited by their employees. Answer: True 98) Enhancing individual creativity may be cultivated through such activities as modeling, encouragement, recognition, allowing failure, listening, talking to children, and taking time off. Answer: True 99) The creative process involves seven distinct steps including preparation, investigation, transformation, incubation, illumination, verification, and implementation. Answer: True 100) "Convergent thinking" is the ability to see the differences among data and events. Answer: False 101) "Divergent thinking" is the ability to see similarities and connections among various data and events. Answer: False 102) It may appear in the incubation stage of the creative process that the entrepreneur is loafing, as he is taking time to reflect on the information collected. Answer: True 103) The illumination stage of the creative process is often called the "Eureka factor" and is characterized by a spontaneous breakthrough. Answer: True 104) The typical entrepreneurial philosophy for implementation is "Ready, aim, aim, aim…" Answer: False 105) When "brainstorming," individuals should be encouraged to use "idea hitchhiking," or building new ideas on those already suggested. Answer: True 106) During a brainstorming session, company rank and department affiliation are irrelevant. Answer: True 107) Mind-mapping is a graphical technique that encourages thinking on both sides of the brain, visually displays the various relationships among ideas, and improves the ability to view a problem from many sides. Answer: True 108) Force-field analysis is a useful technique for evaluating the forces that support and oppose a proposed change. Answer: True 109) TRIZ is an acronym for a systematic approach to help solve technical problems based on the study of hundreds of the most innovative patents. Answer: True 110) Rapid prototyping, transforming an idea into an actual model, typically does not lead to improvements in design. Answer: False 111) A patent protects the creator of original works of authorship such as for software. Answer: False 112) A patent gives the inventor the exclusive right to make, use, or sell an invention for 50 years. Answer: False 113) Trademarks are distinctive words, symbols, designs, names, or logos used for company identification. Answer: True 114) A service mark offers a different kind of protection but distinguishes the source of a product rather than a service. Answer: False 115) Trade dress is the unique combination of elements that a company uses to create a products image and to promote it. Answer: True 116) The major problem with relying on the legal system to enforce ownership rights is the cost of infringement lawsuits, which can quickly exceed the budget of most small businesses. Answer: True 117) The U.S. Copyright Office does not require registering the creative work because registering it does not give creators greater protection over their work. Answer: False 118) What is the entrepreneurial "secret" for creating value in the marketplace? Answer: Creativity and innovation should be used in combination to allow the entrepreneur to solve real-world problems and to exploit opportunities and the profits that come with them. Creativity should always be directed and complement the business plan. Creativity is the ability to develop new ideas and to discover new ways of looking at problems and to exploit opportunities that people face every day. Innovation is the ability to apply creative solutions to those problems and opportunities to enhance and enrich people's lives. 119) Explain the differences between the left and right sides of the brain. Answer: The left brain is guided by linear, vertical thinking, whereas the right brain relies on kaleidoscopic, lateral thinking. The left brain handles language, logic, and symbols, whereas the right brain takes care of the body's emotional, intuitive, and spatial functions. The left brain processes information in a step-by-step fashion, whereas the right brain processes it intuitively-all at once, relying heavily on images. Left-brained vertical thinking is narrowly focused and systematic, whereas right-brained lateral thinking is somewhat unconventional, unsystematic, and unstructured. 120) List five of the barriers that limit creativity. Answer: The five barriers are a subset of the following list: 1. Search for the one "right" answer 2. Focus on "being logical" 3. Blindly follow the rules 4. Constantly be practical 5. View play as frivolous 6. Become overly specialized 7. Avoid ambiguity 8. Fear looking foolish 9. Fear mistakes and failure 10. Believe that "I'm not creative" 121) List five ways entrepreneurs can stimulate their own creativity and encourage it among workers. Answer: The five ways entrepreneurs can stimulate their own creativity and encourage it is a subset of the following list: • Include creativity as a core company value • Hire for creativity • Establish an organizational structure that nourishes creativity • Embrace diversity • Expect creativity • Expect and tolerate failure • Incorporate fun into the work environment • Encourage curiosity • Design a work space that encourages creativity • View problems as opportunities • Provide creativity training • Provide support • Develop a procedure for capturing ideas • Talk and interact with customers • Monitor emerging trends and identify ways your company can capitalize on them • Look for uses for your company's products or services in other markets • Reward creativity • Model creative behavior 122) List five ways individuals can enhance their own creativity. Answer: The five ways individual creativity can be enhanced should come from the following list: • Allow yourself to be creative. • Forget the rules. • Travel and observe. • Observe products of other companies, especially in completely different markets. • Recognize the creative power of mistakes and accidents. • Notice what is missing. • Keep a journal handy to record your thoughts and ideas. • Listen to other people. • Listen to customers. • Watch a movie. • Talk to a child. • Do something ordinary in an unusual way. • Keep a toy box in your office. • Take note of your "pain points." • Do not throw away seemingly "bad" ideas. • Read books on stimulating creativity or take a class on creativity. • Take some time off. • Be persistent! 123) List and briefly explain the seven steps in the creative process and discuss the step that you consider to be the most critical. Answer: 1. Preparation-Get your mind ready for creative thinking through formal education, OJT, work experience, etc. This helps to build creativity and innovation. 2. Investigation-Develop a solid understanding of the problem or decision. 3. Transformation-View the similarities and differences in the information collected. 4. Incubation-Take time to reflect on the information collected. 5. Illumination-A spontaneous breakthrough occurs, causing the "light bulb to go on." All of the previous stages come together to produce the "Eureka factor." 6. Verification-Validate the idea as accurate and useful. May include conducting experiments, running simulations, test marketing a product or service, etc.-to verify that the new idea will work and is practical. 7. Implementation-Transform the idea into reality. 124) Explain "brainstorming" and list at least five of the guidelines for a successful brainstorming session. Answer: Brainstorming is a process in which a small group of people interact, with very little structure, with the goal of producing a large quantity of novel and imaginative ideas. The goal is to create an open, uninhibited atmosphere that allows members of the group to "freewheel" ideas. Five guidelines should come from the following list: • Keep the group small-five to eight members. • Make the group as diverse as possible. • Encourage members to engage in some type of aerobic exercise first. • Communicate that every member of the group is on equal ground - company rank and department affiliation are irrelevant. • Give the group a well-defined problem for the group to address, but do not reveal it ahead of time. • Provide relevant information and invite members before the session to provide three ideas. • Limit the session to 40-60 minutes. • Take a field trip. • Appoint someone to be the recorder and write every idea on a flip chart. • Use a seating pattern that encourages communication and interaction. • Throw logic out the window. • Encourage all ideas from the team, even wild and extreme ones. • Establish a goal of quantity of ideas rather than quality. • Forbid evaluation or criticism of any idea during the session. • Encourage participants to use "idea hitchhiking" or to "piggyback"/build new ideas on those already suggested. • Dare to imagine the unreasonable. 125) Why is it important for an entrepreneur to use techniques like mind-mapping, which uses both sides of the brain? Answer: Mind-mapping, a graphical technique that encourages thinking on both sides of the brain, visually displays the various relationships among ideas, and improves the ability to view a problem from many sides. Since entrepreneurs themselves tend to be left- or right-brained thinkers, techniques like mind-mapping encourage them to look at problems and opportunities in a different way. Mind-mapping is also a useful tool that includes: sketching a picture symbolizing the problem, connecting each idea to the central picture or words with a line, and allowing your mind to rest for a few minutes before beginning to integrate the ideas. 126) List the steps an entrepreneur should follow in order to enhance his/her chances of receiving a patent. Answer: An entrepreneur should follow these six steps to enhance his/her success in receiving a patent: 1. Establish the invention's novelty. 2. Document the device. 3. Search existing patents. 4. Study search results. 5. Submit the patent application. 6. Prosecute the patent application. Mini Case 2-1: Protecting Your Intellectual Property Devo, Anthony, and Spencer were childhood friends who had always talked about starting a business together after college graduation. Devo had the financial background and startup capital to contribute and Spencer and Anthony had the technical knowledge they believed would give them the competitive advantage needed to become an industry leader. During their early college years, Anthony and Spencer developed a new and innovative way to manufacture computer components. When they shared their idea with Devo, he was able to draw up a detailed business plan to present to potential investors when the three were ready to launch their venture. They had been very careful not to disclose anything about their innovative idea to other colleagues or any of their friends and were anxious to get started. After selecting the company name "Millennium Computers" the three friends come to you for advice on intellectual property rights. 127) To protect their innovative process for manufacturing computer components from unauthorized use, which type of intellectual property should the threesome apply for? Identify the office to which they should apply and outline the steps involved in the process. Answer: They should apply for a patent through the Patents and Trademark Office (PTO). To receive a patent, the inventor must follow these steps: 1. Establish the invention's novelty. 2. Document the device or process. 3. Search existing patents. 4. Study search results. 5. Submit the patent application. 6. Prosecute the patent application. 128) Should they consider protecting or registering their company name? Which intellectual property would cover this concern? Could they use the name without registering it? Answer: Entrepreneurs do not have to register trademarks to establish their rights to use those marks; however, registering a mark with the (PTO) does give entrepreneurs greater power in protecting their marks. 129) Since the primary weapon to protect intellectual property is the legal system, what would you advise the friends if they have to protect intellectual property sometime in the future by threatening a lawsuit? Answer: The major problem with relying on the legal system to enforce ownership rights is the cost of infringement lawsuits, which can quickly exceed the budget of most small firms. Before bringing a lawsuit, the entrepreneurs must consider the following issues: • Can the opponent afford to pay them if they win? • Will they expect to get enough from the suit to cover the costs of hiring an attorney and preparing a case? • Can they afford the loss of time, money, and privacy from the ensuing lawsuit? Test Bank for Essentials of Entrepreneurship and Small Business Management Norman M. Scarborough 9780132666794, 9780273787129, 9780134741086, 9780136109594, 9780133930382