Intro to Entrepreneurship Mid-term Exam Review

Which of the following is an example of a practical business mission statement?

"Serve as a leader and live a balanced life."

The Six Thinking Hats exercise is not always easy to implement. If members cannot follow the rules, ________.

the process breaks down

Why is the United States a country that "grows" successful entrepreneurs?

because there are few prescribed conformity traditions

Which type of analysis uses a grid to compare the all the vendors that provide the same product or service in an area?

competitive analysis

According to the DICEE model suggested by Guy Kawasaki, total user experience would most closely connect to the ________ quality of innovation.

complete

The human ability to feel what other humans are feeling, which in the context of creativity, innovation, and invention is essential to beginning a process of human-centric design, is called ________.

empathy

Which of the following is the most effective way to cultivate anchoring organizational strategies?

encouragement

The experience of being an entrepreneur can be fun, exciting, and refreshing, as long as you do which of the following?

keep your creative spirit alive and in constant motion

You are performing a SWOT analysis for a new venture. Which of the following is an example of a factor that is internal to the entrepreneur?

professional network

According to David Pridham of Dominion Harbor Group, intellectual property accounted for ________ percent of the total gross domestic product (GDP) in the United States in 2020.

38.2

Which of the following is one advantage of a PEST analysis over a SWOT analysis?

A PEST analysis includes consideration of political and economic factors.

Which of the following demonstrates an ethical issue that could lead to an infringement of CSR?

A company's website is hacked and millions of customers' identity information is lost. The company sells most of its stock for protection and then tells their customers about the hack.

How is a serial entrepreneur different than a social entrepreneur?

A serial entrepreneur is someone who starts multiple entrepreneurial ventures, while a social entrepreneur is someone who focuses on solving a problem.

Which country is most attractive for entrepreneurial ventures?

Australia

During World War II, the U.S. military used plastics in weapons and motor vehicles. Following the war, plastics manufacturers began to produce products that consumers could use in their homes. This is most closely related to which step in Schumpeter's progression for finding new business opportunities?

Develop a new market for an existing product.

According to the text, which of the following is an example of financial and accounting fraud?

Enron

Which of the following demonstrates how TOMS shoes has embraced the concept of CSR?

For every pair of shoes the company sells, it gives a pair of shoes to a child in need.

Which of the following is not a way that a personal mission statement helps an entrepreneur?

It reflects the entrepreneur's values by identifying profit.

Which answer least describes the entrepreneurial aspect of Starbucks?

Its founder wanted to establish an American coffee empire.

Which of the following is an example of a lifestyle venture?

Wander Girls

Which of the following is an example of a gig economy worker?

a woman who researches and writes an article for a magazine

To delve more deeply into ideation as a practice, the text introduced the Six Thinking Hats method, where the White Hat ________.

acts as information gatherer by conducting research and bringing quantitative analysis to the discussion

Which factor does not influence entrepreneurial activity?

bank funding

For entrepreneurs, the simplest method of framing a problem in the form of a question ________.

can be eye opening

Which is not a contributing factor to the desire to become an entrepreneur?

certainty of employment and income

What is one of the most common characteristics of successful startups?

charismatic founders

Which of the following is not an example of a social-environmental entrepreneurial problem?

concern for government funding

What is CSR?

corporate social responsibility

All of the following except ________ describe entrepreneurs.

corporate sponsors

Netflix started in 1997 as an online movie rental service. Users could browse the online catalog and order DVDs to be delivered to their homes. Today it is a streaming platform. As the company's success grew, several chains of storefront video rental businesses went out of business. This phenomenon is known as ________.

creative destruction

In order for human-centric design to work, ________ must be based on honest, rational, and emotional observation.

defining the problem

Which of the following is a method that focuses the design and development decisions of a product on the needs of the customer, typically involving an empathy-driven process?

design thinking

Which of the following best describes an entrepreneurial mindset?

desiring to take business risk for growth

In addition to the examples provided in the text, the innovation by Apple that now would fit into the category called a "smartphone" is a good example of ________.

disruptive technology

In deciding whether to start their business, the founders of Netflix needed to determine if there were enough people interested in renting their DVDs through the Internet to make their investment worth the time and effort. They needed to determine the ________ of the venture.

feasibility

If the costs of a venture are too high and the profit is too low, the entrepreneur may need to consider whether the venture is ________.

feasible

The Ten Principles of the United Nations Global Compact cover all of the following principles except ________.

fraud

According to David Pridham of Dominion Harbor Group, the growth in this type of worker has contributed to the excellent conditions for startups and small businesses in the current decade.

freelance

Using the Six Thinking Hats and being able to embody one mode of thinking ________.

frees you from considering other aspects of a problem that can limit creativity when you are looking for a solution

What element(s) of potential success are crucial beyond simply having an entrepreneurial mindset?

funding and education

Creating disruption in your industry would most closely align with the ________ level on the pyramid of innovative problem-solving.

future of enterprise

The ideation practice which comes from Stanford's Design School has the objective to ________.

generate as many ideas as possible and start to develop some of them

What is institutional venture capital?

group of people pooling money to invest in ventures

Activities such as traveling to new places or working on a favorite hobby would most closely align with the ________ stage of creativity.

incubation

In order to determine if it is the right time to start a new business, aspiring entrepreneurs must consider the existence of which of the following criteria?

innovative product idea, investors, and favorable market conditions

Which of the following is an example of an entrepreneur?

innovator

According to Everett Rogers, who are the consumers who are willing to take a risk on a new product and want to try it first?

innovators

In 1998, The U.S. Department of Justice and twenty state attorney generals sued Microsoft. They accused Microsoft of illegally protecting the monopoly it had on its operating system and attempting to prevent competition to its browser, Internet Explorer. Microsoft lost the case. What was eliminated as a result?

kill zone

According to Everett Rogers, who are the consumers who are often not willing to readily adopt change and are the hardest to convince to try a new invention?

laggards

Creative thinking is more often ________ thinking, free and open thinking in which established patterns of logical thought are purposefully ignored or even challenged.

lateral

What kind of thinking involves a logical, step-by-step process?

linear

Which of the following combinations creates the greatest entrepreneurial opportunity?

low supply, high demand

Which of the following is not an element of the Business Roundtable Official Statement on the purpose of a corporation?

lowering prices of products

What is the common theme between the 1997 Business Roundtable Statement and the shareholder primacy?

maximizing shareholder value

According to the text, Schumpeter described the cyclical destruction and creation of new businesses as ________.

natural in a capitalist system

Searching for and finding solutions outside of the organizational structure is known as ________ innovation.

open

Which of the following is an example of leaving a positive footprint on the planet?

opening local schools to educate the local populations on their resources

Which of the following describes the process by which entrepreneurs evaluate product ideas, strategies, and marketing trends?

opportunity screening

The ________ stage of creativity involves investigating a chosen field of interest, opening your mind, and becoming immersed in materials, mindset, and meaning.

preparation

Which two categories of Peter Drucker's seven sources of innovation would likely correlate to the Chinese firm Huawei releasing a lower-cost, lower performance smartphone to compete with the Apple iPhone?

process need and demographics

According to the text, designing for other people means building a ________.

prototype, which is the fourth step

An entrepreneur wants to conduct research on a potential business opportunity. Which of the following is an example of a primary source?

public opinion polls

What are the primary needs of shareholders?

realizing value

According to the text, Sara Blakely developed the ability to adapt to difficult or challenging circumstances as the result of events in her childhood. This ability is also known as ________.

resilience

Which of the following best describes expanders and scalers' approach to venturing?

seeking out opportunities to expand processes, products, or creating methods

Uber, Lyft, and DoorDash are examples of which type of economy?

shared economy

Which of the following is a reason to avoid considering tax incentives as a permanent pillar of a value proposition or business model?

short duration

In order for an idea to become a recognized opportunity, there must be significant market demand, significant structure and size, and ________.

significant margins and resources

According to the text, which of these is the motivation behind many entrepreneurial ideas?

solving small everyday problems

Which of the following is not an example of a lifestyle venture?

starting a fashioned focused eyeglass company

Customer relationship management tools such as Salesforce or Act would most likely fit into the ________ step of Sourcify's model of invention.

stay organized

Which of the following is a key characteristic that encourages entrepreneurship?

support for freedom to innovate

Brainstorming creatively means going beyond ________.

the common basic whiteboard scribbling

Which of the following is a way that you can put your strengths to work?

thinking about achievements you have accomplished

What is the purpose of a three circles competitive analysis?

to identify gaps in the market that a new venture could fill PreviousNext

Which of the following is an example of due diligence performed by an entrepreneur?

understanding the process of starting and funding the venture

Where do founders derive their company's mission?

values, beliefs, and experience

According to the text, fostering creativity and innovation ________.

will add essential tools to your entrepreneurial toolkit