Business Management DSM 2
What is an angel investor?
An individual who gives money to an entrepreneur to provide funding for an opportunity
Who is MOST likely to identify an entrepreneurial opportunity? Chandra, who has spent a year abroad and comes from a family of entrepreneurs Charlie, who has a narrow social network and has always lived in his hometown Luke, who has lived in two different states and easily identifies ends-means relationships Lucy, who has an extended social network and limited entrepreneurial alertness
Chandra, who has spent a year abroad and comes from a family of entrepreneurs
Who is LEAST likely to identify an entrepreneurial opportunity? Charlie, who has a narrow social network and has always lived in his hometown Luke, who has lived in two different states and easily identifies ends-means relationships Lucy, who has an extended social network and limited entrepreneurial alertness Chandra, who has spent a year abroad and comes from a family of entrepreneurs
Charlie, who has a narrow social network and has always lived in his hometown
What happens in the opportunity exploitation stage of entrepreneurship?
Investments are committed
What is illusion of control?
Overestimating one's ability to determine and shape the outcome of an opportunity
To evaluate if an opportunity is practical, entrepreneurs ___________________.
Perform a feasibility analysis
Which opportunity is an example of a new method of organizing? Renting games from an automatic vending machine Modeling invisible braces using computer imaging Using pipe insulation foam to create pool noodles Creating new, noise-canceling ear buds
Renting games from an automatic vending machine
Which situation creates a new geographic market opportunity for entrepreneurs to sell their products and services? A country lifts its trade embargo with another country. An online business franchises its first brick-and-mortar store. An individual creates a new meditation app. A government bans the use of a specific pesticide for farming
a country lifts a trade embargo with another country
An entrepreneur who does not want to give up a portion of his firm's equity in exchange for funding should work with a(n) _________.
bank
An entrepreneur who is seeking funding but does not want to give up equity in his firm should work with a(n) _________.
bank
_________ takes place when a firm seeks to create a product market position its competitors haven't recognized.
domain definition
An individual who notices new patterns of people's behavior has _________.
entrepreneurial alertness
After the entrepreneur identifies the opportunity, the next step is to _________.
evaluate the practicality of the opportunity
Investments are committed in the _________ stage of entrepreneurship.
exploitation
Angel investors differ from venture capitalists in that angel investors typically _________.
finance start-up ventures
A firm is undergoing organizational rejuvenation when it is ___________________.
focusing on new processes instead of new products in order to improve its ability to execute strategy
information asymmetry helps individuals to_________________.
identify opportunities
Before evaluating the practicality of the opportunity, the entrepreneur must _________.
identify the entrepreneurial opportunity
The stages of the entrepreneurship process—in order—are to _________ opportunities.
identify, evaluate, exploit
Overestimating one's ability to determine and shape the outcome of an opportunity is known as _________.
illusion of control
_______________ helps individuals to identify opportunities.
information asymmetry
Which statement about entrepreneurship is TRUE? It exploits opportunities in different contexts. Making money for stakeholders is the sole purpose. Entrepreneurships are started by individuals, not teams. Only new businesses can be entrepreneurships.
it exploits opportunities in different contexts
Jenna receives positive feedback about the designs of her smartphone cases at the local flea market and determines her entrepreneurial risk to be low. Which factor explains that Jenna is wrongly assuming her risk to be low?
law of small numbers
Which statement about entrepreneurship is FALSE? Making money for stakeholders is an entrepreneurship's sole purpose. Entrepreneurships are started by individuals and teams. New businesses and existing businesses can be entrepreneurships. Different types of entrepreneurships generate different outcomes.
making money for stakeholders is an entrepreneurship's sole purpose
customers who find value in a new product provide ______________.
market demand
One way to identify an opportunity is by recognizing________________________.
means-end relationships
A country that lifts its trade embargo with another country is creating a(n) _________ opportunity for entrepreneurs to sell their products and services.
new geographical market
Jenna rents a book from an automatic vending machine at the airport. Which opportunity type does this example represent?
new method of organizing
Zack is taking the foam he uses to insulate pipes and is using it to create pool noodles. Which opportunity type does this example represent?
new use of raw materials
An individual who has entrepreneurial alertness______________________.
notices new patterns of people's behaviour
A firm that is focusing on new processes instead of new products in order to improve its ability to execute strategy is undergoing _________.
organizational rejuvenation
Venture capitalists differ from angel investors in that venture capitalists usually _________.
put up more money per investment
domain definition takes place when a firm ________________.
seeks to create a product market position its competitors haven't recognized
Providing long-standing needs to society by identifying, evaluating, and exploiting opportunities is the purpose of _________.
social entrepreneurship
Through ________________, it is possible to identify opportunities.
social networks
What makes commercial entrepreneurship different from social entrepreneurship?
the goal structure focuses on creating stakeholder wealth over social value
How is social entrepreneurship funding different from corporate entrepreneurship?
the primary source of funding is donations, not investment
Corporate entrepreneurship differs from social entrepreneurship in that _________.
the primary source of funding is individual and commercial investment
Why would an entrepreneur perform a feasibility analysis?
to evaluate if an opportunity is practical