Entrepreneurial Finance 6th Edition by J. Chris Leach test bank

 
F.        47.   While cash is the language of business, accounting is the currency.
 
T.        48.   Venture character and reputation can be assets or liabilities.  
 
T.        49.   Disruptive innovation is an innovation that creates a new market or network that disrupts and displaces an existing market or network.
 
F.        50.  The “sharing economy” refers to the cross-referencing of innovations for record-keeping purposes.
 

     Multiple-Choice Questions

 
e.        1.  Successful entrepreneurs exhibit which of the following traits?
a.   recognize and seize commercial opportunities
b.   economic pessimism
c.   tend to be doggedly optimistic
d.   both a and b
e.   both a and c
 
c.        2.  While one must be careful to avoid too many generalizations about entrepreneurial traits or characteristics, which one of the following characteristics would not normally be associated with successful entrepreneurs?

1. being able to see and seize a commercial opportunity
2. planning for the venture’s future
3. only being able to see an opportunity after it ceases to be one
4. being optimistic about the venture’s success

 
b.       3.  About one-half of all newly created businesses in the U.S. are dissolved or cease operations within how many years after being started?
 a.   two years
 b.   four years
 c.   six years
 d.   eight years
 
c.        4.  About 60 percent of all newly created businesses in the U.S. are dissolved or cease operations within how many years after being started?

1.  two years
2.  four years
3.  six years
4.  eight years

 
d.        5.  “Fads” are:
a.   not predictable
b.   have short lives
c.   do not involve macro changes
d.   all of the above
 
c.         6.  Harry Dent documented major generation waves in the United    States during the twentieth century in:
                 a.   1972
                 b.   1982    
                 c.   1993
                 d.   2003
 
b.         7.  “E-commerce” refers to:
                 a.   environmental commerce
                 b.   electronic commerce
                 c.   economic commerce
                 d.   exploratory commerce
 
f.          8.  While entrepreneurial opportunities come from an almost unlimited number of sources, this textbook focuses on:

1. societal changes
2. demographic changes
3. technological changes
4. crises and bubbles
5. emerging economies and global changes
6. all of the above

 
d.         9.  Indicate the number of principles of entrepreneurial finance that are emphasized in this textbook:

1. one
2. three
3. five
4. seven
5. nine

 
e.        10.  Maximizing the value of the venture to its owners is the common financial goal of which of the following?
         a.   the entrepreneur