1. Aman had always been creative and good with computers. He had been busy during the past year creating new applications for his smartphone. But Aman had no business training and really had no idea how to profitably bring any of his ideas to market. This best illustrates the difference between which of the following?

a)the promoter and the entrepreneur

b)the manager/administrator and the entrepreneur

c)the promoter and the inventor

d)the inventor and the entrepreneur

e)the inventor and the manager/administrator

2. Anne was struck by how many of her friends and associates now seemed to adopt behaviors and products to protect the environment. When she recently started a business selling signs and tents, she ensured that her products were made from low-emission, recycled materials. This is an example of spotting what type of opportunity?

a)technological discoveries

b)demographic changes

c)lifestyle and taste changes

d)economic dislocations

e)calamities

3. PBS operates a website with free content for children, but it also has another site that has more advanced content, including tracking of a child's progress. This site can only be accessed by those who pay a monthly fee to have an active account. This model of e-commerce is known as the

a)subscription model.

b)transaction fee model.

c)advertising model.

d)intermediary model.

e)affiliate model.

4. Kota is planning to start a dog-grooming business, which is perfect for him since he has been grooming the family dogs for years and he has little capital to invest in a business. On the Entrepreneurial Strategy Matrix, this business would be considered

a)high innovation/low risk.

b)high innovation/high risk.

c)low innovation/low risk.

d)low innovation/high risk.

e)high innovation/no risk.

5. Rosario has developed some pioneering engineering software and is now trying to get a business off the ground. He is reluctant to hire administrative staff, though he knows he will need this sort of help. He will also need some technical advice. Rosario should look into

a)a skunkworks.

b)a business incubator.

c)an intrapreneurial venture.

d)a brain trust.

e)a business planner.

6. Jaime is planning to start a small medical practice with several of his colleagues at the hospital. He wants to be accepted by his peers and by potential customers, so he plans to set up the business according to legal requirements, professional organizations and standard practice. Jaime is seeking

a)legitimacy.

b)authenticity.

c)relationship advantage.

d)social capital.

e)moral superiority.

7. Luis was in charge of purchasing new equipment needed for the manufacturing line at Alpha Pro, a maker of cleaning supplies that employed 50 people in its purchasing department. Luis has three people who report to him. Luis's span of control is

a)narrow.

b)wide.

c)short.

d)tall.

e)diagonal.

8. Which of the following is a potential advantage of the traditional functional approach to departmentalization?

a)benchmarking

b)effective monitoring of the environment

c)uses affective conflict

d)avoids devil's advocacy

e)uses cooptation