Question: It is possible for a company to have a positive cash flow and be unprofitable.

T/F

Answer: True

Question: If companies A and B are in the same industry, and A has $200,000 in sales per employee while B has $325,000 in sales per employee, then B is the more productive company

T/F

Answer: True

Question: For a company that goes public, the founding entrepreneur typically owns a majority of the shares of the corporation.

T/F

Answer: False

Question: Low-tech businesses, such as convenience stores, are not typically considered part of entrepreneurship because of their lack of innovation and intellectual property.

T/F

Answer: False

Question: The most costly expense that seed-stage biotechnology companies face in their early years is the initial expenditure on manufacturing equipment.

T/F

Answer: False

Question: Which of the following could be a “trigger” for the entrepreneurial process?

All of the above

Being fired by an employer

Deep frustration with one’s career

A conversation with a friend or peer

An unexpected financial windfall

Answer: All the above

Question: A good example of entrepreneurial frugality is:

Providing cell phones for all employees

Limiting employees to strict job responsibilities

Renting top notch facilities

Correct!

Purchasing used office equipment and machinery

Leasing more space than is immediately necessary

Answer: Purchasing used office equipment and machinery

Question:

Answer: Cash that is generated in excess of fund required to sustain operations and purchase assets

Question: The majority of entrepreneurs’ business ideas come from area outside of their present line of employment or experience.

T/F

Answer: False

Question: Investors in small, growing startups typically expect to earn the same rate of return as they would if they invested in a public company that is listed on the New York Stock Exchange.

T/F

Answer: False