A common way of making a copy of the Utilities disk in the Finder is to drag the icon of the floppy disk to the hard drive, which copies its contents into a folder named Utilities, then drag these contents onto an empty floppy disk, re-labeling it 'Utilities.'
Unfortunately, when the you start up with At Ease ON, go to the Finder, and then do the above procedure, the result is a disk that is NOT bootable.
Turn At Ease OFF and restart before attempting to create a new Utilities disk. (This issue arises when trying to make a Utilities disk equipped with PC Exchange).