Entrepreneurship Test 2

Synthesis

Combination of existing concepts and factors into a new formulation

Bob johnson's replication of the MTV format in creating programming for BET is an example of innovation through:

Duplication

Observe Trends:

Economic, Social, technological, political, finding gaps in the marketplace, solving problem

Assessing

Evaluating and implementing strategy to deal with changes

In innovation through duplication, the entrepreneur simply copies someone else's business idea.

False

The extant and timing of funds needed to move through the venture process is critical issue and has little to do with the success or failure of a new venture

False

Task environment specific industry environment

Identify the key factors for success in the business:

Analyze the competition

Identifying the competitors: -Direct competitors -Significant competitors -Indirect competitors

Sources of innovation

Incongruities, process needs, industry and market changes, demographic changes-changes in population characteristics, perceptual changes, new knowledge or knowledge based concepts, unexpected occurrences

Weaknesses

Negative internal lack of experience/trained staff, lack of facilities

The current desire for locally grown, organic, and whole grain foods has lead to the creation of grocery stores such as Whole Foods and to the reemergence of local farmer's market is an example of which of the following sources of innovation?`

Perceptual changes

Macro environment/ societal environment

Politics, economy, technology, socio-demography

Strengths

Positive internal factors, affordable, fun

Personal Characteristics of the Entrepreneur

Prior experience, cognitive factors(Entrepreneurial alertness), Social networks, creativity

Feasibility Analysis

Product testing, industry, market, organizational, financial

Environmental analysis:

Scanning, monitoring, forecasting, assessing

S.W.O.T Analysis

Strengths, Weaknesses, Opportunities, Threats

Extension

The expansion of a product , service, or process already in existence

Duplication

The replication of an already existing product, service, or process and adding a feature to improve or enhance

Entry barriers

Things that are preventing you from starting a business: Facilities, staff, license and certification

Drs. Kay and Lyle are partners in a medical clinic, which is organized as a limited liable partnership. A court holds Lyle liable in a malpractice suit. Kay is liable

To the extent of her capital contribution

Monitoring

Tracking the evolution and development of those changes

A SWOT analysis is used to access an organization's strengths, weaknesses, opportunities, and threats.

True

Entrepreneurs can identify viable business opportunities by observing trends, solving problems, or finding caps in the marketplace.

True

Techniques for generating ideas may include having brainstorming sessions, hosting focus groups, conducting surveys, and establishing customer advisory boards.

True

The ecology pertains to such issues as pollution and waste disposal, recycling, usable materials, protection of wildlife preserve areas, workplace safety and hazards, and the general quality of life.

True

The four main areas of environmental assement include the societal environment, the specific industry environment , the community perspective, and the venture organization.

True

The four phases of the creative process are knowledge accumulation, incubation, idea experience, and implementation/evaluations

True

To draw customers to a new venture, an entr. should provide performance services that are superior to competitive offerings.

True

Trends signal shifts in the currents paradigm(or thinking) of the major population. Observing trends closely will grant an entrepreneur the ability to recognize a potential opportunity.

True

When examining a community's economic base, it is wise to examine any community dependence on one large firm or industry or how a community may be impacted seasonal or cyclical fluctuations.

True

When selection for a new business venture, it is important to examine population trends in order to identify expanding communities as opposed to long term declining or static populations.

True

There are three basic requirements for a patent to be granted. The subject of the patent application must be:

Useful, novel, in relation to prior arts in the field, and not obvious to a person of ordinary skill in the field

A common pitfall in selecting a new venture is

a lack of venture uniqueness

Which of the following is not true about the protection of intellectual p

a patent last for the life of inventor plus 70 years

Which of the following statements about innovation are true?

accomplished innovators are very practical people and create from the opportunities left by reality

All of the following are important when implementing and maintaining business expect

basing hiring decision solely on professional qualifications

Techniques for generating ideas

brainstorming, focus groups, surveys

Invention

creation of new product, service, or process that is novel and untried.

The new trend to build housing communities for people age 55 and over best reflects which source of innovation?

demographic changes

This source of innovation is caused by changes in population, age, education, occupation, geographic location and similar factors?

demographic changes

forecasting

developing plausible projections for the future

Innovation through perceptual changes is caused by continual shifts in the market due to changes in consumer attitudes, advancements in technology, and industry growth.

false

Scanning

identifies potential problems or changes

Name the pitfall described by the statement, " Failure to anticipate the technical difficulties related to developing or producing a product can sink a new venture."

inadequate understanding of technical requirements

Ted Tuner, founder of CNN, insistence on forming a 24-hour news network after he was told, "That won't work! No one wants to watch news all day!" is an example of what source innovation:

incongruities

The four methods of innovation include which of the following?

invention, extension, synthesis, duplication

Which of the following is not true about the protection of the protection of intellectual property under secret theory

must register trade secret with federal agency

Threats

negative external forces, lower prices, change curriculum/new regulations

Mike, Nora, and Owen want to form a limited partnership. A limited partnership must least

one general partner and one limited partner

Poor finicial under standing for an entrepenur would be characterized by which of the following?

overly optimistic estimate of funds

Opportunities

positive external options, hire trained professional or train current staff, seek new location

Analysis

research, interview, secret shop

Which of the following are sources of innovation?

unexpected occurrences and incongruities

Internal Environment/ Venture Organization

venture structure, culture, resources

In examining the community perspective, an entrepreneur should consider

- demographics -economic base -population trends -overall business climate

A common legal concern that new ventures face is

- making the workplace safe for employees -providing reliable and safe products and services -necessity of patents, trademarks, and copyrights to protects one's invention and products

Who are the "stakeholders" that a corporate manager should confirm management decision?

- owners of shares of stock in the corporation -employees of the corporation -the community in which the corporation

Which of the following are ways to avoid the common pitfalls in creating a new business venture?

- prepare business plan and know your business in depth - manage financial resources and understand financial statements - be unique and set your business apart from the competition

Elements restricting/ preventing new ventures from entering an industry

-Structural- facilities, staff, licensing -Retaliatory- lowering prices, comparison ads - Paradox of entrepreneurship- the higher the barrier the more lucrative the opportunity

Micro environment/community perspective

-demographic -economic base -population trends -overall business climate

Barriers to entry may include having lack to the following

-proprietary technology -distribution channels -infrastructure

Four essential qualities of an business opportunity

Attractive, durable, timely, anchored

This type of ethical lapse occurs because of the company culture behavior, unethical overtone and unethical behavior is rewarded:

Bad barrel