Entrepreneurship EXAM
T/F: Entrepreneurs are thrill seeking doers and rarely think things through or research before getting started.
False
T/F: Most entrepreneurial initiatives fail because of lack of money.
False
T/F: Most entrepreneurial initiatives fail.
False
T/F: Only people who are weird and or social outcasts are crazy enough and or smart enough to be entrepreneurial.
False
T/F: Only people who can come up with or invent stuff are worthy to be called entrepreneurs.
False
T/F: People born with the right traits and who find themselves in optimal circumstances will become entrepreneurs and those that don't will be their employees.
False
T/F: The 1 common trait that all successful entrepreneurs have is that they had access to money prior to and during their new venture creation.
False
T/F: The 1 common trait that all successful entrepreneurs have is that they were in the right place at the right time.
False
T/F: Unstructured and chaotic is the norm for entrepreneurs.
False
Which statement is true about fads?
Fun, but no lasting impact on society
The decision to accept entrepreneurial motivation comes from one's
Goals
Which of the following statements is true about innovation?
Innovation blends imaginative and creative thinking with a systematic, logical process in order to recognize and create opportunity where others find only problems
The window of opportunity requires the entrepreneur to make a decision. When there is an error of commission, the negative outcome from acting on the perceived opportunity can occur for all of the following reasons except:
The entrepreneur waited too long to take advantage of the opportunity.
Creativity to the Entrepreneur is:
The generation of ideas that results in the improved efficiency or effectiveness of a system
Jean Baptiste Say defined entrepreneur as:
The sole occupation to apply knowledge to the creation of a product for human consumption.
In Dr. Michael Porter's framework of forces on an industry or business, Threat of New Entrants is best described as ____________________?
This force describes how easy is it for new businesses to enter the market and take customers away from the existing competitors.
In Dr. Michael Porter's framework of forces on an industry or business, Power of Suppliers is best described as ____________________?
This force describes the situation when other companies that are needed in the supply chain can affect your company.
In Dr. Michael Porter's framework of forces on an industry or business, Power of Customers is best described as ____________________?
This force occurs when customers can easily choose between business, thus causing businesses to have to adapt to keep customer's coming back.
With psychic risk entrepreneurs _____________
fear failure and thus over compensate for it or succumb to negative thoughts and feelings.
You are nervously anticipating the first quiz in your entrepreneurship class and are waiting outside of the classroom for the class scheduled before yours to exit. As the students begin to leave, you see a student crying and being comforted by another as they walk out. An overwhelming feeling of doom comes over you as take your seat. The metacognitive process that you just experienced is called _________.
framing
The unethical practice of "cooking the books" is an ethical issue affecting
shareholders and investors
From the perspective of studying entrepreneurship as an academic, one tries to
understand and better predict entrepreneurial activity.
A meaningful characteristic of an effective target market for purposes of selling minivans is
whether the person has children
Which of the following questions concerning innovation is not relevant?
"When should the product go to market?"
On an average day in America, how many businesses fail?
1917
Gazelle start-up businesses in the past decade have approached nearly ______ per year.
600,000
Most innovations result from:
A conscious & purposeful search for new opportunities
Ethics is defined as:
A set of moral principles & values that defines right & wrong
The entrepreneurial motivations of individuals usually relate to which of the following factors?
All of the options (the venture, the entrepreneur, the environment)
During the evaluation/Implementation phase of the creative process, a great deal of _______ is needed?
All of the selections are correct (Perseverance, Self-discipline, courage)
The entrepreneur becomes creative by:
All of the selections are correct (Recognizes that problems are to solutions what demand is to supply, turns problems into opportunities, seeking out unique opportunities to fill needs and wants)
Which of the following ethical rationalizations are used to justify questionable conduct.
All of the selections are correct (The act is the individual's or the firm's best interest, the act is not "really' illegal or immoral, the act will never be found out)
The Effectuation process of creativity starts with what one has, and:
All of the selections are correct (is means-driven, is risk averse, may reach multiple goals from a combination of what is available)
Factors in choosing a marketing philosophy include which statement?
All options (Competitive pressure, Short-term focus, Entrepreneur's background)
Which of the following is not a reason for exceptional entrepreneurial activity in the United States?
America's willingness to exploit third world nations and anyone else weaker than us.
All of the following techniques are used in gathering primary date except:
Analysis of financial records published by others
Which of the following is not a source of innovative ideas for entrepreneurs?
Are there no other alternatives to a problem?
Successful entrepreneurs are able to identify & implement ideas that:
Are workable & that they have the skills to implement
Which of the following is not a factor that leads to increased competition among businesses?
Bankruptcies
Entrepreneurs themselves perceive the concept of risk in which of the following ways?
Calculated risk taking
Which of the following is an unsought good?
Casket.
Which of the following is not one of the major pathways to entrepreneurial ventures?
Cutting Edge
Entrepreneurial motivation requires persistence. Which of the following is not a way that one stays persistent?
Desire to take from society
Characteristics often attributed to the entrepreneur include:
Determination & perseverance
Which of the following are not a step in the venture creation process?
Emergence of the idea
Which of the following is incorrect:
Entrepreneurs manage their businesses by expecting stable sales, profits, and growth.
Code of ethics issues that impact society may include:
Environmental issues, political issues, & social responsibility
Which of the following is not a characteristic of the Entrepreneurial Mindset?
External Locus of Control
The statistical analysis of entrepreneurship has 3 classifications of economic development. Which one relies on labor & natural resources?
Factor-driven
Failure is necessary for all of the following resons except:
Failure restricts your ability to think
Telling your potential customers about your product is called
Advertising
Once seen as a niche product only consumed by vegans and vegetarians, plant-based meats have gained mainstream acceptance among traditionally carnivorous foodies in the coming year. The market is predicted to grow by 28% each year until it reaches a whopping $85 billion by 2030, thanks to an increasing number of consumers with health, environmental, and animal welfare concerns. Impossible Foods and Beyond Meat are leading the charge, producing alt-meats for grocery store shoppers and partnering with chain restaurants like Burger King, KFC, and Subway to bring affordable options to the masses. It is believed that even more restaurants will introduce plant-based meat menu items that go beyond (pun semi-intended) beef-free burgers. This type of societal change and acceptance is known as:
A trend
A code of ethics is:
A written statement of ethical practices or guidelines to which an entity adheres.
The casual process is when entrepreneurs:
Act in a rational manner with planned risk taking; start with a desired outcome and use a linear process
Which of the following is not a type of innovation?
Adaption
When entrepreneurs rely on existing solutions, techniques, or products to try to do things better, they are utilizing what type of creative process?
Adaptive
Code of ethics issues that impact employees may include:
Honesty, health & safety, harassment, discrimination, & drug screenings
Which of the following is not a characteristic of a Fixed Mindset?
I can develop my qualities through dedication and effort.
The phase of the creative process when the idea or solution the individual is seeking is discovered is referred to as:
Idea experience
Based on the latest GEM study, the United States outranks the rest of the world in what?
Important entrepreneurial support.
Which of the following is a demographic variable?
Income
As the population of cars grew there was a shortage of parking area. The Smart car, a small car capable of fitting in to tiny spaces was created so that more cars could be fit in to the existing spaces. The Smart car really didn't catch on as a solution to the problem. This is an example of what form of innovation?
Incongruities
The creation of search engines is and example of what?
Industry & Market Changes
The statistical analysis of entrepreneurship has 3 classifications of economic development. Which one relies on knowledge an innovation driven by an expanding service sector need?
Innovation-driven
What are the four types of innovation?
Invention, extension, synthesis, duplication
Why do we need ethics?
It is our means of deciding a course of action.
Today, we recognize that sanitation is extremely important to maintaining healthy and safe communities. This type of innovation is known as:
Knowledge-Based Concepts
Which of the following is not a factor in choosing a Market Philosophy?
Long-term focus
Paintings from antiquity show us that famous people of that time carried a few extra pounds on them than what we would today call healthy. Researchers tell us that this is because having some extra fat on a person meant that they were healthy and that rich people could afford to eat. However, today, people who are carrying around noticeable fat are seen as obese and unhealthy. This has led to a flood of diet trends and fads as well as businesses providing meal options geared toward reducing fat intake. This is an example of what?
Perceptual Changes
On March 22, 2019 New York Daily News reporters Elizabeth Keogh, Thomas Tracy, and Stephen Rex Brown published the story "Charity volunteer for slain NYPD officers embezzled $410,000 and spent it on dentistry, landscaping, Barbra Streisand tickets: prosecutors". In the story, the journalist trio report on Lorraine Shanley, who served as volunteer treasurer for the Survivors of the Shield from 2010 to 2017. The article details how during her tenure, she spent $410,000 in donations on personal expenses including her son's legal bills, her grandchild's private school tuition, dentistry, landscaping for her Staten Island home and Barbra Streisand tickets. "Lorraine Shanley allegedly capitalized on tragedy and monetized people's generosity," Manhattan U.S. Attorney Geoffrey Berman said. "As alleged, Shanley stole over 20% of the donations to a charity whose sole mission is to help the families of NYPD officers killed in the line of duty." Which of the below best explain Lorraine Shanley's unethical choices:
Lorraine Shanley perceived an opportunity to help her family and herself out of some financial barriers.
Focusing on a particular loss to explain why the loss occurred is referred to as:
Loss orientation
How you plan on getting your product to the consumer, along with how you will let them know about it is called
Marketing
Which of the following is not one of the stages of grief?
Mental instability
Which of the following is not a method of generating new ideas?
Mindtapping
Which statement is not true about an error of commission?
Missed opportunity
An error of omission occurs when there is a negative outcome from:
Not acting on a new entry opportunity.
Which of the following statements is true about creativity?
People can learn to be creative
The combination of existing concepts & factors into a new formulation would define which of the following terms?
Synthesis
Which of the following is not a risk of entrepreneurship?
The entrepreneur is required to risk their physical health.
Factors that influence organizational managerial ethics include:
Philosophy of top management, reward systems & job dimensions
Which of the following is not one of the four phases of the creative process?
Post-mortem analysis
Prior to 1700, business ventures of any magnitude were funded by all of the following except:
Private Investors
When Henry Ford's decided to switch to a moving assembly line instead of building cars 1 at a time. This not only simplified vehicle assembly but shortened the time necessary to produce a single vehicle from 12 hours to 90 minutes. This is an example of what form of innovation?
Process Needs
Business ethics is defined as:
Proper business policies & practices regarding potentially controversial issues, such as corporate governance, insider trading, bribery, discrimination, corporate social responsibility & fiduciary responsibilities
On January 27, 2018 Boston Globe ran the following article; "Employee theft 'shockingly common' at nonprofits", in which reporter Todd Wallack reported that a board member of the Somerville Homeless Coalition was reviewing the nonprofit's annual financial documents in 2015 when he spotted something odd. The forms said the chief operating officer, the No. 2 executive, earned $12,000 more than the organization's top executive the previous year. Could that really be correct, he asked? Turns out it wasn't a typo. It was theft. Somerville Homeless soon discovered that the COO — who handled all the finances — allegedly embezzled approximately $108,000 over 18 months. The charity said he brazenly added some of the money directly into his paycheck — where it showed up on the group's annual financial forms — used the organization's credit card for personal expenses, and added his middle-aged son to the group's health insurance. The COO's unethical behavior was caused by which of the following:
Rationalization that they should earn as much or more than the CEO since they handled the money.
Which of the following believed that the entrepreneur was the sole risk taker?
Richard Cantillon
The promotional pyramid includes all of the following excpet:
Sales tactics
A person can develop their own creativity by:
Seeing new & different relationships in people, objects & places around them
Which of the following are the four different types of entrepreneurs?
Serial, Social, Gazelles, and Corporate
Which of the following is not a characteristic of an entrepreneurial environment?
Short term outlook
Aging demographics indicates which type of trend?
Societal
What are the four sectors we look to for the seed of a fad or trend?
Societal, technology, economic and governmental
Which of the following is not a principle of Innovation?
Start big
A SWOT analysis refers to:
Strengths, weaknesses, opportunities & threats
Alfred Marshall defined an entrepreneur as:
Supplier of commodities; provider of innovation & progress.
T/F: The NEW OLD approach to new venture creation adapts existing products or services or extends them into areas where they are not presently available.
True
In 1812, Casale Monferrato of Italy invented the substance known as nitroglycerin, an oily and highly explosive liquid. Monferrato's creation was so unstable and dangerous to use that he saw no potential commercial use for it. In the same laboratory as Monferrato worked a Swedish man named, Alfred Nobel, who did believe that Monferrato's invention could be tamed and then could be used as a very effective replacement for the black gunpowder in the construction of roadways, tunnels, and other civil engineering works. Indeed, he had a vested interest in doing so because his family business was selling land mines and other explosives equipment. During the course of his attempts to make Monferrato's invention stable, he destroyed his own factory and killed a number of his workmen as well as his brother, Emil. Yet the wide-eyed inventor was not deterred. He continued to trial different approaches until one day he stumbled upon the perfect concoction of nitroglycerin and something called kieselguhr (or diatomaceous Earth) which acted as a stabilizing agent. The new material could be placed in cardboard tubes and Nobel designed a 'blasting cap' and fuse to allow the explosion to be controlled. His new invention was patented in 1867 and originally sold as "Nobel's Blasting Powder". It was later changed to "dynamite", from the Ancient Greek word dýnamis, meaning "power". Nobel's discovery that kieselguhr was the right substance to stabilize nitroglycerin is an example of what for of innovation?
Unexpected Occurrences
Which of the following is not a characteristic of small business owners?
Wealth creation is rapid
Chewing gum is a
convenience good