ENt 241 Midterm Study Guide

Which of the following is true about corporate entrepreneurship?

A company must be willing to invest money without a guarantee of a return in the short term

An entrepreneur hired others to handle front end activities, while the entrepreneur handled all back end activities. This is an example of

A hybrid approach

Focus groups use which of the following methods?

A moderator leads the group in an open, in-depth discussion.

An entrepreneur considering if what they are doing makes sense is an example of

A reflection task

Creative synthesis is an important aspect of the ________ method of creative problem solving.

parameter analysis

__________ includes initiative and risk taking, as well as competitive aggressiveness and boldness.

proactiveness

In which stage of the product planning and development process would it be appropriate to give product samples to a panel of potential customers?

product development stage

The ____________ is defined as the stages each product goes through from introduction to decline.

product life cycle

The first step in establishing corporate entrepreneurship in an organization is

securing commitment from top management

Which among the following aspects most affects an entrepreneur's perception of feasibility?

self-efficacy

Entrepreneurial Opportunities are defined as

situations in which new goods, services, raw materials and organizing methods can be sold at greater than their production cost.

The casual process of thinking

starts with a desired outcome and focuses on the possible means to generate that outcome.

In the idea stage of the product planning and development process

systematic market evaluation is used.

The stage in the product planning and development process in which actual sales results are available is the

test marketing stage

Having an entrepreneurial orientation toward the control of resources means

that one focuses on accessing others' resources.

Entrepreneurial culture and growth orientation consists of all of the following except

the desire to grow at a slow and controlled pace.

The largest source of new product ideas is

the entrepreneur's research and development.

Density, in regards to a social network, refers to

the extensiveness of ties between two individuals.

Reverse brainstorming is much like brainstorming except that

the process usually involves identification of everything wrong with an idea.

All these are characteristics of an entrepreneurial environment except

there are short term horizons

Patents filed with the lIS. Patent Oftice

trequently suggest other new products.

A young manager recognizes inflexibility in both staffing and production, slowing growth and loss of competitive advantage. This manger should encourage upper management to begin developing _________within the company.

An entrepreneurial orientation

A sufficient time for top management to be committed to corporate entrepreneurship is

At least three years

This problem-solving method requires the entrepreneur to list the properties of an item or problem and then look at each from a variety of viewpoints

Attribute listing

Which of the following is defined as having some disruptive influence on established consumption patterns?

Dynamically continuous innovations

Which of the following is not a leadership characteristic of a corporate entrepreneur according to the text?

Encourages colleagues to follow hierarchy

With regard to the differences between the entrepreneurial and administrative focuses which of the following is correct?

Entrepreneurs rent or sporadically use resources; managers like to own resources

All of the following statements are true of sustainable entrepreneurship except

Entrepreneurs with a positive attitude toward the natural environment never disengage these values to exploit an opportunity.

With regard to thinking structurally superficial similarities

Exist when the basic elements of the technology resemble the basic elements of the market

A reflection task would involve thinking about what strategies should be used to solve a problem.

False

An entrepreneur is rarely able to start a new business without some form of formal education.

False

An online company's front-end operations involve integration of customer orders with distribution channels.

False

Brainwriting is another term for brainstorming, they are exactly the same except there is no leader in brainwriting.

False

Developing a new idea through a chain of word associations is known as the checklist method

False

Entrepreneurial action can be defined as times when entrepreneurs make do with resources at hand, applying those resources to new problems or opportunities.

False

Entrepreneurially run firms are driven by controlled resources whereas traditionally managed firms are driven by perception of opportunity

False

Entrepreneurs are unable to carefully assess each and every innovative idea and opportunity.

False

Entrepreneurs should establish a method for monitoring and evaluating competitive products/services on the market, but should not worry about potential customers, instead focusing on current customers.

False

Focus groups consist of 15 to 25 participants in a loosely structured, freewheeling atmosphere.

False

In encouraging a culture for corporate entrepreneurship, using older, proven, technology is recommended in order to increase stability in the organization.

False

In reverse brainstorming the focus is on all the things that are right about an idea.

False

In the test market stage of product planning, the refined product idea is tested to determine customer acceptance

False

Most managers in a corporation are capable of being successful corporate entrepreneurs with the correct training.

False

Most of the ideas generated by a brainstorming group progress into further development.

False

One evaluation method successfully used in the concept stage is the systematic market evaluation checklist.

False

Organizations that require a rapid retur on investment and a high sales volume usually encourage and support new ideas

False

Promising new product/service ideas should be identified and impractical ones eliminated in the concept stage.

False

Results from product inventory analysis need minimal evaluation as they most likely reflect a new business opportunity.

False

Reverse brainstorming is the same as brainstorming, except criticism is not allowed in reverse brainstorming.

False

Role models are individuals who give psychological support to the entrepreneur especially during the start-up phase.

False

Strategic orientation refers to the transformation of an organization through the rejuvenation of the key ideas on which it is built.

False

Strategic tasks stimulate the entrepreneur to compare the current situation with previous similar situations.

False

Sustainable entrepreneurship provides only environmental gains for others.

False

The casual process of thinking starts with what one has and selects among possible outcomes.

False

The drawback with problem inventory analysis is that it is not effective in relating known products to suggested problems.

False

The entrepreneur should always design and build his own webpage to maintain strategic control.

False

The entrepreneurial challenge often lies in making creative mental leaps based on superficial similarities.

False

The files of the U.S. Patent Office are kept confidential and entrepreneurs cannot study their contents.

False

The largest source of new ideas is the U.S. Patent Office.

False

The only e-commerce channel is a website.

False

Traditionally managed firms commitment to opportunity is revolutionary with a long duration.

False

Individuals have stronger intentions to act when taking action is perceived to be ____________and desirable.

Feasible

In the _______method, a word is written down, then another, creating a chain of ideas.

Free association

The Occupational Safety and Health Act (OSHA) mandated that first-aid kits he available in business establishments employing more than three people. A newly formed company was successful in developing first-aid kits that allowed companies to comply with the standards of the act. This is an example of

Government regulations as a source for new product ideas

Which of the following answer options is not an example of a front end activity?

IT infrastructure

In what stage would you use the systematic market evaluation checklist?

Idea stage

Which of the following is true?

Independent, venture-capital-based start-ups by entrepreneurs tend to outperform corporate start-ups significantly.

New product development falls under which of the four major components of corporate entrepreneurship?

Innovativeness

Which of the following is not one of the reasons cited for the failure of new ventures started within a corporation?

Lack of resources

Which of the following statements is nor true of the loss orientation approach to negative emotions?

Loss orientation is based on both avoidance and proactiveness.

Entrepreneurial activities that create something new of value either by redefining the company's current products or services, developing new markets, or forming more formally autonomous or semiautonomous units or firms best defines

New business venturing

Which of the following statements is true?

Potential entrepreneurs should establish a formal method for monitoring and evaluating competitive products and services on the market.

In this method, instead of generating new ideas themselves, consumers are provided with a list of problems in a general product category.

Problem inventory analysis

Which of the following is a practical implication of using the dual process of learning from failure?

Recovery from loss offers an opportunity to increase one's knowledge of entrepreneurship.

_______ are designed to stimulate thought about entrepreneurs' understanding and feelings as they progress through the entrepreneurial process

Reflection tasks

The opportunity recognition process contains all of the following except

Reformation

___________ includes a redefinition of the business concept, reorganization, and the introduction of system-wide changes to increase innovation.

Self renewal

Which of the following was not discussed in the text as a breakthrough innovation?

Spanx

While there are many components in a professional-support network, __________ are particularly good with insight on both trends and competitors.

Suppliers

Which of the following statements is nor true of the restoration orientation approach to negative emotions?

The restoration orientation approach requires oscillating between two alternate approaches to loss.

Which group in a professional network helps keep a new venture competitive?

Trade associations

Asking "How is this problem similar to problems I've already solved?" is an example of a connection task.

True

Augmented reality, body monitoring, and point of view reference are all trend categories in the wearable tech industry.

True

Brainstorming is an unstructured process used for generating possible ideas about a problem within a limited time frame through the spontaneous contributions of participants.

True

Brainwriting is a written form of brainstorming.

True

Bricolage is entrepreneurs making do by applying combinations of the resources at hand to new problems and opportunities.

True

Comprehension questions are designed to stimulate entrepreneurs to think about their own understanding of the nature of the environment

True

Corporate entrepreneurship is most strongly reflected in entrepreneurial activities as well as in top managemen orientations in organizations

True

Creativity tends to decrease with age, education, lack of use, and bureaucracy.

True

Developing a spirit of entrepreneurship within the existing organization, called corporate entrepreneurship, can lower resistance to flexibility, growth, and diversification.

True

Dissatisfaction with various aspects of one's job often motivates the launching of a new venture.

True

Entrepreneurial opportunities are those situations in which new goods, services, raw materials and organizing methods can be sold for financial or non-financial gain of the entrepreneur and/or other stakeholders.

True

Entrepreneurial thinking is partly a mental process of recognizing a signal and then deciding if the signal represents an opportunity for someone.

True

Entrepreneurial thinking partly is about reducing doubt as to whether an opportunity for someone is also an opportunity for them specifically, and/or processing feedback from action steps taken

True

Entrepreneurially managed firm structure is usually flat with multiple informal networks.

True

Entrepreneurs focus on how to minimize resources needed whereas traditional fins focus on accumulating resources.

True

Entrepreneurs' intentions are their perception of feasibility someone else's impression of is feasible.

True

For entrepreneurial actions that preserve nature to be considered sustainable entrepreneurship, they must also develop gains for the entrepreneur, others, and/or society:

True

In a social network there are two major properties, density and centrality

True

In an encouraging climate for corporate entrepreneurship, rewards should be based on the attainment of established performance goals.

True

In corporate entreprencurship, trial and error are encouraged.

True

In creating a culture for corporate entrepreneurship leadership is important.

True

In the checklist method, a new idea is developed through a list of related issues or suggestions.

True

In the concept stage, the refined idea is tested to determine consumer acceptance.

True

In the product development stage, consumer reaction to the physical product/service is determined

True

Brainstorming groups should

try to generate as many ideas as possible

Internal corporate venturing consists of creating something new of value either by redefining the company's current products or services, developing new markets, or forming more formally autonomous or semiautonomous units or firms.

True

Members of the distribution channel are usually good sources of ideas for new products.

True

Most entrepreneurs indicate that their most significant venture was not their first one

True

Only the test marketing phase of product planning provides actual sales results to judge the product's customer appeal,

True

Perceived desirability refers to the degree to which an individual has a favorable or unfavorable evaluation of the potential entrepreneurial outcomes

True

Previous start-up experience is a good predictor of starting subsequent businesses

True

Research and development can be a formal endeavor connected with current employment or an informal one in a basement or garage.

True

Role models can include fami members as well as industry professionals.

True

Self-renewal includes the redefinition of the business concept, reorganization, and the introduction of system-wide changes to increase innovation.

True

Structural similarities exist when the underlying mechanisms of the technology resemble, or match, the underlying mechanisms of the market

True

The effectuation process starts with what one has and selects among possible outcomes.

True

The entrepreneur's ability to recognize a business opportunity is a result of his or her knowledge and experience.

True

The focus group is an excellent method for initially screening ideas and concepts.

True

The payments industry includes services for lending money to products that allow anyone to accept credit cards, as well as billing and accounting services

True

The product life cycle includes introduction, growth, maturity, and decline

True

The product planning and development process is divided into five major stages.

True

The trend "The Internet of Things" refers in part to "smart" devices.

True

Three benefits to having a dedicated app: streamline customer experience, new methods of engaging different audienee, and general visibility

True

Traditionally managed firms typically punish failure.

True

Trends often provide one of the greatest opportunities for starting a new venture.

True

When a firm classifies a new product the two key factors used are market and technology newness.

True

When developing criteria for evaluation during the product planning and development process, the criteria should be all-inclusive and quantitative enough to screen the product carefully.

True

With e-commerce, if an entrepreneur is fully outsourcing, they elect to have one or more firms handle all front-end and back-end activities and simply provide management for the operation.

True

Augmented reality is an example of the ___________ trend.

Wearable

The moral support network is different from the professional support network in that

a professional support network includes finding a mentor.

Creativity declines with

age, education, lack of use, and bureaucracy.

When establishing corporate entrepreneurship in an organization rewards should

be tied to the performance of the entrepreneurial unit created from the idea

What type of innovation is illustrated by the ideas of the airplane and penicillin?

breakthrough innovation

In the ________ method a new idea is developed through a list of related issues or suggestions.

checklist

On the education background entrepreneurs

cite an educational need in the areas of finance, strategic planning, marketing, and management.

In what stage would it be most beneficial to use conversational interviews?

concept stage

Parameter analysis consists of two main aspects that are

creative synthesis and parameter identification

How many stages are in the product planning and development process?

five

In addition to generating new ideas ____________ is an excellent method for initially screening ideas and concepts

focus group

This problem-solving method involves developing new ideas by thinking without constraints.

Big-dream approach

Probably the most well-known and widely used technique for creative problem solving is

Brainstorming

When entrepreneurs make do by applying combinations of the resources at hand to new problems and opportunities, this is known as

Bricolage

Which of the following creative methods involves having participants write down their ideas several times a day

Collective notebook method

Questions designed to increase an entrepreneurs' understanding of the nature of the environment are known as:

Comprehension questions

__________ is not desirable when brainstorming is in process.

Criticism

Continuous innovations are described as

having the least disrupting influence on established consumption patterns.

packlane, a custom packaging company, allows organizations to design their own shipping boxes with custom branding. this is an example of the _________ trend

maker