ENTR 321 Midterm
True
Generally, the larger and more successful the franchisor, the greater the franchise fee that is charged.
the corporations that promote personal growth will attract the best people
In attempting to create an entrepreneurial climate, the organization should consider that
False
In negotiating a deal to purchase an existing business, it is a bad idea to ask the seller to retain a minority interest in the firm.
the individual's personal entrepreneurial mind-set and an opportunity
The decision to behave entrepreneurially is the result of the interaction of:
invention, extension, synthesis, duplication
What are the four types of innovation?
Overbearing need for control
What characteristic(s) that propel entrepreneurs into success can be exhibited to such an "extreme" that it becomes a problem?
All of the above influence the individual's entrepreneurial opportunity
As depicted in the process model we discussed in class, which of the following would NOT influence an individual's intention to pursue an entrepreneurial opportunity?
False
Commitment, determination, and perseverance are the only characteristics one needs to come a successful entrepreneur.
False
Equity financing is money invested in the venture with legal obligations to repay the principle amount of interest or interest rate on it.
social entrepreneurs motivated by profitability with social benefits being the means
If we accept the argument that social entrepreneurship is a continuum, at one extreme would be social entrepreneurs driven exclusively by producing social benefits; at the other, would be
True
Incubation in the creative process often occurs when the individual is doing something completely unrelated to the subject.
Entrepreneurial arbitrage
Joseph Schumpter wrote about a process of entrepreneurial innovation that he termed "creative destruction." Which of the following most closely describes the potential economic effect of the types of innovations Schumpter was talking about?
eliminating the concept of waste
Key elements in plans to create a sustainable future are likely to include which of the following?
business model
Key resources and key activities (or processes) are two components of a venture's
True
One reason that corporate entrepreneurship has become popular is because it allows corporations to tap the innovative talents of the personnel.
True
Pricing becomes less of a concern when customers become aware of a product's unique characteristics that are superior to the competition.
unclear business definition
Product/market problems include which of the following?
True
Recognition of entrepreneurs dates back to the French economist Richard Cantillon.
True
Social entrepreneurs are known to form ventures that exploit opportunities to create social value.
Factor driven economic development
Some countries exhibit a lot of entrepreneurial activity, but a high number of the entrepreneurial ventures seem to primarily provide self-employment for the founder. Which stage of economic development typically applies to these countries?
True
The Brundtland definition of sustainable development is "meeting the needs of the present without compromising the ability of future generations to meet their needs."
False
The entrepreneurial spirit is unique to America and Western Europe.
True
The macro view of entrepreneurship includes external processes that are sometimes beyond the control of the entrepreneur.
encourage innovation
The major thrust of corporate entrepreneurship is to
unmet needs, potential solutions, and entrepreneurial cognition
The opportunity for entrepreneurial innovation emerges from the interaction of
Champion
The person who has the opportunity to lead and "run" with an idea would be coined which of the following:
model the various factors that characterize the entrepreneurial process
The process approach to entrepreneurship seeks to
False
The triple bottom line is an accounting framework that focuses on optimizing short-term financial performance
to undertake
The word entrepreneur is derived from the French entreprendre, which is translated as
False
Timing has little to do with the success or failure of a new venture.
price per unit and total number of units sold
To be profitable, total revenue must exceed total cost. Break-even analysis tells us we must look at both
financing
When accounts receivable are bought from a company for capital funding it is called
When organic waste (like paper and food) decomposes in a landfill, it produces methane gas. Many landfills now capture the gas and burn it to generate electricity.
Which of the following best illustrates the power of positive externalities?
The capital budgeting process
Which of the following could be classified as a Systematic Barrier to innovation in an organization?
Business model reconstruction
Which of the following elements of Corporate Entrepreneurship primarily depend on externally acquired knowledge rather than internal learning and innovation?
Venture capital
Which of the following is NOT a component of a new venture's business model?
Punishment of mistakes
Which of the following is NOT an important characteristic for establishing an intrapreneurial climate?
private placement
Which of the following is not a type of debt financing?
All of the above are rationalizations
Which of the following might be a rationalization used to justify unethical conduct?
About 50% of the strength of these characteristics is determined by heredity.
Which of the following statements are true of Entrepreneurial Personality Characteristics:
In combination, they can influence the motivation of the entrepreneur to pursue an opportunity.
Which of the following statements is true of personality traits, cognition and affect:
The right brain helps people understand analogies and imagine things.
Which of the following statements is true?
incremental innovation
Which of the following terms refers to the systematic evolution of a product or service into newer or larger markets?
Imitative market entry
Which of the following types of new ventures would involve the least amount of product innovation?
angel investors
Which of the following would be most commonly used for short-term financing?
True
Feasibility analyses includes technical, market, financial, organizational, and competitive analyses.
False
Firms do not need to alter management techniques to encourage corporate entrepreneurship since it tends to occur naturally.
False
Creativity cannot be developed or improved
what if and why not?
Entrepreneurs sense potential in business problems by asking
