Launching New Ventures An Entrepreneurial Approach 7th Edition by Kathleen R. Allen – Test Bank

True / False

1. Formal processes are independent and improve the functions of a department.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: Designing an Entrepreneurial Company, Intro

2. There is probably no single best organizational structure for all types of ventures in all situations.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: 11.1 Design: Understanding the Way the Business Works

3. An economic base is the region from which the entrepreneur expects to draw customers.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: 11.2 Location Strategy: Finding the Appropriate Business Site

4. The United States is divided into Standard Metropolitan Statistical Areas (SMSAs), which are geographic areas that include a major metropolitan area.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: 11.2 Location Strategy: Finding the Appropriate Business Site

5. Risk management is a set of policies and decision-making processes that reduce or eliminate risks associated with having employees.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: 11.3 People Strategy: Organizing Human Resources

6. The economic base of a region or community is simply the major source of income for the area.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: 11.2 Location Strategy: Finding the Appropriate Business Site

7. The Family and Medical Leave Act provides for up to 12 weeks of paid leave for employees who are dealing with family issues.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: 11.3 People Strategy: Organizing Human Resources

8. Today it is much easier than it used to be for a new venture to achieve total in-house control of its value chain.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: 11.1 Design: Understanding the Way the Business Works

9. Founder’s stock at issuance is probably valued at the lowest level it will ever be, relative to an investor’s stock value.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: 11.3 People Strategy: Organizing Human Resources

10. The number of shares authorized when a corporation is formed is purely arbitrary.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: 11.3 People Strategy: Organizing Human Resources