ENT 101: Midterm Exam Guide (April 29, 2010)

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During the exam, you will get 20 multiple choice questions. The 20 questions will be DIFFERENT from the sample questions provided below and from the questions used last semester. The page numbers indicate where you can find the explanation of the term in the Be an Entrepreneur Textbook.

Chapter 1: The Entrepreneur

1. Entrepreneur (Pages 2 & 9) a. What is the origin of the word Entrepreneur? b. Who is an Entrepreneur? Entrepreneurship (Pages 2 & 9) a. ____ is the art of starting a business by using creativity and innovation. b. The call of entrepreneurship has become more appealing because of the ____ Pros and Cons of Entrepreneurship (Pages 6 & 7) a. What are the advantages of being an entrepreneur? b. What are the disadvantages of being an entrepreneur? Social entrepreneurship (Pages 7 & 9) a. ______ is a way of solving social problems using entrepreneurial skills to make money to benefit society at large. b. A social entrepreneur set up a company with ____ in mind. Innovation (Pages 2 & 9) a. ____ is finding a way to make money out of an invention. b. Who uses innovation to make money? Invention (Pages 3 & 9) a. _____ is coming up with a new idea or gadget. b. What is the difference between an invention and an innovation?

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Chapter 2: Qualities of Entrepreneurs

1. Effective leader (Pages 14 & 21) a. Entrepreneurs are first and foremost _____ b. Effective leaders have high standards of personal _____ Ethics (Pages 14 & 21) a. Effective leaders know right from wrong because of their _____ b. ____ are the moral principles that guide a persons life. Synergy (Pages 14 & 21) a. ____ results when the whole is greater than the sum of the parts. b. The effect of the teamwork is greater than the sum of the individual efforts. Risk (Pages 14 & 21) a. ____ is the possibility of financial or other type of loss. b. The entrepreneurs take _____ risk. Internal locus of control (Pages 16 & 21) a. An entrepreneur has _____ locus of control. b. ____ is a belief that personal effort alone determines success or failure. Ambiguity (Pages 17 & 21) a. Tolerance for ____ is characterized by a willingness to act in an uncertain situation. b. _____ is the quality of being uncertain or unclear. Characteristics and skills of an entrepreneur (Pages 20-21, Points to Remember) a. Entrepreneurs are not afraid of _____. b. Entrepreneurs believe that only ______ determines success or failure.

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ENT 101: Midterm Exam Guide (April 29, 2010)

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Chapter 3: Ownership Structure of the Business

1. Sole proprietorship (Pages 26 & 43) a. What sort of business structure is for people who can work alone? b. Which is the simplest form of company structure to set up? (General) Partnership (Pages 26 & 43) a. What sort of ownership structure is often used by groups of lawyers or doctors? b. A _____ is a business owned by two or more individuals. Corporation (Pages 27 & 42) a. What sort of business structure is for people who need the skills or funding from others? b. What is a business legal structure that exists apart from the people who created it? Limited Liability Company (Pages 28 & 42) a. A ___ is a legal form of business that provides limited liability to its owners. b. A ___ is a form of organization well suited to companies with a single owner. Start-up (Pages 30-32 & 43) a. What are the most important advantages of starting up a new company versus buying an existing business? b. A ____ company is built from scratch. Franchise (Pages 36-38 & 43) a. What is the success rate in franchising compared to the success rate for independentlyowned business? b. What are the advantages of Franchising?

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Chapter 4: Determine the Business Opportunity

1. Human need (Page 48) a. All entrepreneurial projects come about to fulfill a ______ b. Which need does not provide much opportunity? Business opportunity (Pages 48-49) a. To find business opportunities, take a walk and look around ______ b. What is the relation between human needs and business opportunities? Intellectual property (Pages 55 & 57) a. Why do you have to protect your business idea? b. Your ideas are your ______ Copyright (Pages 55 & 57) a. A copyright gives protection for ______ b. What is the symbol of Copyright? Patent (Pages 55 & 57) a. A ____ is an exclusive right to make and sell the invention or new idea. b. What do you need to obtain a patent? Trademark (Pages 55 & 57) a. A ____ is a word, slogan, or symbol used by a manufacturer or merchant to identify its goods and distinguish them from others. b. What is the duration of a trademark? Trade secret (Pages 55 & 57) a. How can you protect a trade secret? b. A _____ is a secret formula, method, device or item of information that gives an entrepreneur an advantage over competitors.

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