ENT 3100 – Entrepreneurship and Small Business Management

Preparation for Final Exam

In addition to multiple choice and/or short answer questions, the final exam will consist of four
(4) essay questions from which you will choose four. Thus, you can choose those with which
you feel most comfortable. Your responses should cover the material from the text book, lecture
notes, and cases. The final exam is worth 60% of your final grade.

Below are 14 practice questions. You will be given six alternative versions of these during the
final. You may not bring notes or laptops to the exam. Make sure that you answer all the parts
of the question in their entirety. Clearly explain what you mean and provide examples!!!

1. Explain the four components of a new venture’s overall economic model and how/why
they need to be informed by and satisfy: 1) the needs of the target market, 2) your
entrepreneurial aspirations, and 3) your differentiation from competitors.

2. New firms are frequently started by teams. What are the advantages of working in a
team in the context of a new, startup firm? What are the disadvantages? If you were to
start building a team for your startup, what types of things would you look for in other
team members? Why?

3. All entrepreneurs need money in order to operate their firms. However, there are
different methods for entrepreneurs to acquire money. Explain three common types of
financing and specifically compare and contrast them in terms of the demands placed on
the entrepreneur, the entrepreneur’s need for control, financial returns, and the amount
of money needed.

4. a) What is meant by the term contribution margin and why is it important for
understanding the economic model and strategy of the firm?

b) What is ratio analysis? Why is ratio analysis important for firms and new ventures?
List and briefly describe the four most common types of ratios that new ventures use.

5. What is bootstrapping? Explain its fundamental principles and what it (practically)

involves. Provide five examples of bootstrapping.

6. After having successfully completed ENT 3100, your friends and family see you as being
very knowledgeable about entrepreneurship. One of your friends has a “great idea” and
wants you to carry out an industry analysis for her. What industry factors are you going
to look at in doing this? In an ideal world and in support of this really being a “great idea”,
what specifically would your analysis of these factors show?

7. A business concept is different from both an opportunity and a business model. Explain
what a business concept consists of and its components. What are the differences
between features and benefits? In what ways can the firm create value for its
customers?

8. a) What does the typical marketing process entail? Be sure to provide an explanation for
each aspect of the marketing process.

b) Explain in sufficient detail the term Marketing Mix.

 ENT 3100 – Entrepreneurship and Small Business Management

9. Your friend wants to better promote their new venture and is looking into different
marketing approaches. Explain to him/her what is guerilla marketing and outline the
advantages and disadvantages it presents. How does guerilla marketing differ from
traditional marketing approaches?

10. a) Compare and contrast the operational requirements and considerations that need to
be made for Manufacturing versus Service/Retail businesses.

b) List and briefly explain two important aspects of a new ventures operations plan.

11. a) List and explain the two main types of innovation. Your explanation should include
some discussion of how the types of innovation relate to organizational capabilities and
skills.

b) In relation to innovation, briefly explain the following terms: i) Technology Push; ii)
Market Pull

12. a) Briefly describe two common mistakes new ventures and established firms make
regarding intellectual property.

b) List and explain the four main types of intellectual property. Your responses should
include proper examples of the intellectual property type being discussed.

13. a) Your friend who had a successful small venture is now looking to grow their business.
Explain to your friend the two main approached to growth as discussed in class. Your
explanation should include a comparison and contrasting of the forms of growth in
addition to relevant examples.

b) What is franchising? Outline the three main suggestions you would provide to
someone looking to become either a i) franchisor or ii) franchisee.

14. Discuss two potential exit strategies for entrepreneurs as they look to remove
themselves from operations of the venture.