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Introduction to Organization and Management Principles (FDNMANP)

Chapter 6 · Entrepreneurship

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Source-grounded entrepreneurship study materials for FDNMANP_C17A. Original practice questions; chapter references included.

Jade Laurence EmpleoPublic20 questionsIntroduction to Organization and Management Principles (FDNMANP)Updated
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Original practice exam based on chapter concepts, not an official/sample Canvas quiz. Choose the one best answer using this textbook's terminology. Adapted under CC BY-SA 4.0. https://pressbooks.openedmb.ca/management/?p=80

Questions

01A founder opens an established type of repair service in a district that lacked one. Why can this be entrepreneurial?
  1. Novelty is irrelevant if revenue is earned.
  2. Entrepreneurship requires a patented technology.
  3. It brings an offering to a new clientele and mobilizes resources to meet a need.
  4. Every small business is automatically entrepreneurial.
Dyck et al. (2026), Chapter 6, 6.2
02A small cafe has operated unchanged under inherited management. Which statement is most accurate?
  1. Its small size does not by itself make its manager an entrepreneur.
  2. Small firms cannot become entrepreneurial.
  3. It is entrepreneurial solely because it has few employees.
  4. Family inheritance always proves innovation.
Dyck et al. (2026), Chapter 6, 6.2.1
03A new enterprise struggles because customers do not yet trust its unfamiliar brand. Which liability best fits?
  1. Liability of newness
  2. Economies of scale
  3. Information advantage
  4. Liability of smallness only
Dyck et al. (2026), Chapter 6, 6.2.1
04A manager knows more than the owners and receives a bonus for choices that reduce the owners' return. Which pair best explains moral hazard?
  1. Information asymmetry and misaligned incentives
  2. Shared ownership and high trust
  3. Customer segmentation and prototyping
  4. Economies of scale and niche demand
Dyck et al. (2026), Chapter 6, 6.2.2
05A venture reduces packaging only when the change raises its return on investment. Which entrepreneurial orientation best fits?
  1. A universal family firm by definition
  2. SET
  3. Non-entrepreneurial by definition
  4. TBL
Dyck et al. (2026), Chapter 6, 6.2.3
06A community venture accepts a lower but adequate margin to improve local livelihoods. Which orientation is most consistent?
  1. FBL
  2. TBL solely because it earns a profit
  3. Classical rationality by definition
  4. SET
Dyck et al. (2026), Chapter 6, 6.2.3
07Which action belongs primarily to identifying an opportunity?
  1. Submitting a final five-year cash-flow statement
  2. Launching every distribution channel
  3. Investigating an unmet need revealed by demographic change
  4. Hiring the full operating workforce
Dyck et al. (2026), Chapter 6, 6.3.1
08A team uses pilots to learn whether users value its proposed service. Which entrepreneurial step is this?
  1. Take action without feedback
  2. Test the idea
  3. Identify only the founder's personality
  4. Develop a completed legal structure
Dyck et al. (2026), Chapter 6, 6.3.2
09Which elevator pitch is strongest in terms of the chapter's requirements?
  1. A long history of the founder with no user problem
  2. A concise problem, solution, major obstacle, response and customer benefit
  3. A guarantee of success without evidence
  4. A complete technical manual with no clear purpose
Dyck et al. (2026), Chapter 6, 6.3.2
10Community feedback causes a founder to revise the idea after pilot tours. What does this demonstrate?
  1. Planning makes feedback unnecessary.
  2. The business model cannot be changed.
  3. The opportunity was permanently fixed at launch.
  4. The entrepreneurial process is iterative.
Dyck et al. (2026), Chapter 6, 6.3
11Which information belongs in the new venture description?
  1. Only production methods and supplier arrangements
  2. Only a five-year financial forecast and break-even estimate
  3. Opportunity, target market, mission, vision, strategy and legal form
  4. Only recruitment, staff training and compensation
Dyck et al. (2026), Chapter 6, 6.3.3
12Why is the executive summary usually written last?
  1. It is written only after the venture closes.
  2. It should accurately summarize the completed plan.
  3. It must be the longest section.
  4. It replaces all operational research.
Dyck et al. (2026), Chapter 6, 6.3.3
13Which statement correctly distinguishes an ESUP from a full business plan?
  1. A full business plan excludes marketing and finance.
  2. An ESUP contains no management information.
  3. An ESUP covers general management; a full plan adds specialist functional detail.
  4. An ESUP always guarantees funding.
Dyck et al. (2026), Chapter 6, 6.3.3
14An investor receives ownership shares and a say in major decisions. What financing is described?
  1. Supplier trade credit with no ownership
  2. Equity financing
  3. Debt financing
  4. A guaranteed reward donation
Dyck et al. (2026), Chapter 6, 6.3.3
15A niche craft seller reaches a few enthusiasts in many countries through its website. Which market concept fits?
  1. Agency costs
  2. Only the market head
  3. Long tail
  4. Mandatory economies of scale
Dyck et al. (2026), Chapter 6, 6.3.3
16Which canvas component describes how a service reaches its users?
  1. Distribution channels
  2. Management succession
  3. Key resources
  4. Cost structure
Dyck et al. (2026), Chapter 6, Table 6.2
17What is a major advantage of a Business Model Canvas over a lengthy static plan?
  1. It supplies guaranteed five-year forecasts.
  2. It excludes social and environmental effects.
  3. It eliminates the need for evidence.
  4. It makes component relationships and revisions easier to see.
Dyck et al. (2026), Chapter 6, 6.3.3
18A founder thinks she can master the tasks needed to launch her venture. Which quality is described?
  1. Self-efficacy
  2. Supplier power
  3. Moral hazard
  4. Information asymmetry
Dyck et al. (2026), Chapter 6, 6.3.4
19Which statement about entrepreneurial risk is source-consistent?
  1. Experience never affects success.
  2. Founding teams reduce all uncertainty to zero.
  3. Risk enjoyment always predicts success.
  4. Enjoying risk may encourage starting but does not guarantee success.
Dyck et al. (2026), Chapter 6, 6.3.4
20Supporters each contribute small amounts through a platform to fund a venture. What method is described?
  1. Automatic equity ownership
  2. Crowdfunding
  3. A sole-proprietorship legal form
  4. Only venture capital
Dyck et al. (2026), Chapter 6, 6.3.4
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