Ch 6 LearnSmart

Business incubators are often associated with a(n)

university.

Which entrepreneurial trait involves an intimate knowledge of customers' needs and the desire to create value?

Opportunity obsession

Which of the following are favorable factors in increasing entrepreneurial activity?

Real economic growth Improving performance of the stock market Increases in the money supply

Which of the following statements is true about the early stages of an entrepreneurial venture?

Entrepreneurs are unable to specialize.

Which of the following statements about the failure of new start-ups is true?

Estimates of failure rates indicate that more start-ups fail than succeed.

True or false: As a business grows, entrepreneurs often quickly delegate work they have been doing.

False

True or false: The only essential step for building support for a project idea within a company is to get the support of higher level officials.

False

Which of the following are recommended practices for helping ensure the survival of a family-managed business?

Have at least one key position be filled by a nonfamily member. Make sure that family members in the business work as hard as other employees. Someone outside the family and the business should help plan succession.

______ is the offer of payoffs from the project in return for support, time, money, and other resources.

Horse trading

Which of the following statements about IPOs is true?

IPOs are federally registered.

Which of the following are reasons that survival may be difficult for a small startup company?

No track record Difficulty finding lenders Lack of customers

Which of the following describe typical features of a business incubator?

Offers shared costs Located in an industrial park Associated with universities

Which of the following could explain why entrepreneurs fail to use their resources wisely?

Start-up capital is used on expensive locations. Entrepreneurs fail to maintain control over their resources.

Which of the following are factors that typically motivate entrepreneurs as they start a business?

The challenges of the business The potential for profit The sense of satisfaction the business generates

What is the role of the economic environment on the success of entrepreneurial ventures?

The economic environment affects the success of entrepreneurial ventures by affecting the supply of capital and prospective opportunities.

Which of the following are reasons entrepreneurs fail to use formal controls?

They are busy. They have an aversion to record keeping.

What are some of the characteristics of people who become successful entrepreneurs?

They understand and have skills in management, business, and networking.

A lasting source of competitive advantage for an entrepreneur that involves building relationships and networking with people is _____ capital.

social

Which of the following are elements of social capital?

Being part of a network of people Having a good reputation

Which of the following are the tendencies that determine entrepreneurial orientation?

Being proactive Taking risks Being competitively aggressive Allowing independent action

In general, successful entrepreneurs have good knowledge and skills in which of the following?

Business Management Networking

Which of the following are typical ways entrepreneurs can exploit opportunities?

By exploring domains that are avoided by large companies By introducing goods or services that capture the market because they are simpler, cheaper, more accessible, or more convenient

What are high-potential future opportunities for entrepreneurship?

Cryptocurrency Nanotechnology Green energy

Which of the following are characteristics of an entrepreneurial personality?

Leadership Motivation to excel Commitment and determination

Which of the following are reasons that growth creates challenges for entrepreneurs?

Limits to founders' capacities Increasing expenses Competing with bigger firms

Which of the following exacerbates the problem of entrepreneurs failing to use their resources wisely?

Venture capital funding

Survival for small start-up companies may be difficult because of ______.

a specialized market and strong competition

Informal work on a project that is of an employee's own choosing and not officially assigned is called ______.

bootlegging

Entrepreneurs can find opportunities by entering domains big companies avoid and introducing products that are ______.

cheaper

Entrepreneurs often hesitate to _____ work to others as their business grows.

delegate, delagate, deligate, or delgate

Entrepreneurs often have to ______.

do more than one business function

The tendency of an organization to identify and capitalize successfully on opportunities to launch new ventures by entering new or established markets with new or existing goods or services is called ______.

entrepreneurial orientation

Independence, profit potential and a better quality of life are reasons individuals become ______.

entrepreneurs

An entrepreneurial alliance between an innovator who created at least one successful store and wants to grow the business and a partner who manages a new store of the same type in a new location is called a(n) ______.

franchise

A great product, a viable market, and ______ are essential ingredients to entrepreneurial success.

good timing

When contemplating a business, an entrepreneur must start with a good ______.

idea

The first-time sale of federally registered and underwritten shares of company stock to the public is called a(n) ______.

initial public offering

An important model for characterizing new ventures is by their levels of ______.

innovation and risk

In a franchise agreement, the franchisor is the ______ and the franchisee is the ______.

innovator; operator

In the model that conceptualizes entrepreneurial ventures according to their relative levels of innovation and risk, most small business ventures are categorized as ______.

low in innovation and high in risk

Getting support for a project from peers before seeking formal approval from higher levels in a company is known as ______.

making cheerleaders

The two major liabilities of start-up companies are ______.

newness and smallness

An analysis that includes a description of the good or service, an assessment of the entrepreneur, and a specification of activities and resources needed to translate the idea into a viable business and sources of capital is called a(n) ______.

opportunity analysis

The first formal step in creating a business plan that includes a description of a good or a service and other assessments is a(n) ______.

opportunity analysis

The most dangerous risk in intrapreneurship is the risk of ______.

overreliance on a single project

One long-term measure of an entrepreneur's success related to the mortality of the founder is ______.

planning for succession

Entrepreneurs facing growth are challenged by competition from bigger firms, funding issues, and ______.

plans for international expansion

Entrepreneurs fail to use formal controls because they are busy and have ______.

poor record keeping practices

The _____ street effect occurs when an entrepreneurial opportunity is discovered unexpectedly while pursuing another opportunity.

side

When entrepreneurs start their enterprises and then capitalize on an unexpected opportunity it is called the ______.

side street effect

Traditionally driven by the government and big defense contractors, ______ represents a potential future opportunity for entrepreneurs.

the outer space market

When Amazon.com and online travel agents charge a fee for goods or services, they are using the _____ fee model of e-commerce.

transaction

The e-commerce business model in which a company charges for goods or services is the ______ model.

transaction fee