MGMT Ch7

Which of the following is a key difference between an entrepreneur and an intrapreneur?

An entrepreneur receives no corporate support, whereas an intrapreneur has the benefit of corporate support.

As an entrepreneur the challenge called "you might not enjoy it" presents which of the following problems

Entrepreneurs usually have to do all of the functions of running a business, even those areas they do not like or know how to do.

Which statement about IPOs is true

IPOs need to be federally registered.

How does social capital provide a lasting source of competitive advantage for entrepreneurs

It aids in forming successful business alliances. It helps entrepreneurs gain access to useful information. It helps in the recruitment of employees. It increases the possibility of receiving funding from venture capitalists.

Which statements about business plans are true

Many business plans focus heavily on financial projections. Potential investors want to know more than just financial projections.

______ creates social value by stimulating social change or meeting social needs

Social entrepreneurship

How important are nonfinancial resources to new venture success

The are essential to the success of a new business.

What are the two mistakes entrepreneurs often make about financial resources

They apply financial resources to the wrong uses. They maintain inadequate control over their resources.

True or false: An obvious risk of intrapreneurship is failure.

True

Which of the following is a formal planning step that focuses on an entire venture and describes all the elements involved in starting it?

a business plan

A(n) _______ is a group of people willing to help an entrepreneur learn basics, identify needed strategic changes, and build relationships with bankers

advisory board

Entrepreneurs can assemble a group of people to help them learn the basics of business and build relationships with bankers, accountants, and attorneys. Such a group is called a(n)

advisory board.

An entrepreneur can avoid overconfidence in high-growth businesses by ______

asking critical questions having good controls

The tendency of an organization to identify and capitalize successfully on opportunities to launch new ventures by entering new or established markets with new or existing goods or services is called ______

entrepreneurial orientation

An entrepreneurial alliance between an innovator who has created at least one successful store and wants to grow the business and a partner who manages a new store of the same type in a new location is called

franchising.

The need to provide a nurturing environment for a fledgling enterprise led to the creation of business

incubators

The ______ factor of the business plan should provide a competitive advantage that can be defended.

opportunity

To be _______ means to act in anticipation of future problems and opportunities

proactive

Business incubators are

protected environments for new, small businesses.

Business accelerators ______

provide support to young businesses that have begun to establish a foothold

Renee works as a respected senior engineer for a large manufacturer of pharmaceutical process equipment. Several researchers within the company have discovered an innovative way to repackage pharmaceutical drugs. The company has given Renee the opportunity and responsibility to lead a fully funded project team for 12 months to develop this idea. She is excited to lead this ________ team.

skunkworks

What are the three common models individuals can choose from when starting a new e-commerce business

storefront business-to-business subscription

Founding entrepreneurs often fail to plan for ______, an issue tied to the entrepreneurs' mortality.

succession

A company's advisory board can do which of the following

teach the basics of business operation build relationships with other professionals identify needed strategic changes

One thing entrepreneurs may not realize when they begin their venture is that ______

they usually have to work every aspect of the business

Which of the following provides a way to raise capital through federally registered and underwritten sales of shares in the company?

initial public offering

Which factors are associated with environmental context

interest rates tax policies exchange rate inflation

Corporate entrepreneurs are also called

intrapreneurs.

When a company releases a product before its competitors to beat them to the punch or deliberately targets competitors' weaknesses, it is engaging in ______

competitive aggressiveness

Which of the following is one of the five key factors that entrepreneurs are required to have thought through?

context

Informal work on projects other than those officially assigned, of employees' own choosing and initiative is called ______

bootlegging

After a young business begins gaining a foothold and establishing itself, a ______ can help entrepreneurs build and launch a rapidly successful venture

business accelerator

The ______ describes all the elements involved in starting the new venture

business plan

The ______ describes the venture and its market, strategies, and future direction.

business plan

What are some of the benefits offered by incubators

business services technical services shared staff costs low rent

Getting support for a project from peers before seeking formal approval from higher levels in a company is known as ______

making cheerleaders

Which elements of the business plan are necessary to fully consider the competition of a proposed business

Predict how the new venture will respond to the competitors' responses. Identify the current competitions and their strengths and weaknesses. Identify future potential competitors.

______ firms are forward thinking and fast to act and are leaders rather than followers

Proactive

Which statement regarding risk in a business plan is true

Risk must be understood and addressed as fully as possible.

Which of the following is true of the role of the economic environment in the success of entrepreneurial ventures?

The economic environment affects the success of entrepreneurial ventures by affecting the supply of capital and prospective opportunities.

Which are the five tendencies that determine entrepreneurial orientation

being competitively aggressive allowing independent action being proactive taking risks fostering innovation

Small businesses whose primary focus is not e-commerce can create attractive websites that do which of the following

bring them closer to suppliers, investors, and service providers add to their professionalism give them access to more customers

As an entrepreneurial business grows, leadership often ______

deteriorates into micromanagement

Which are risks that must be considered in the business plan

key people leaving the company fierce competitor responses interest rates changing losing a key customer

One of the common challenges entrepreneurs face is

lack of enjoyment in what they do.

Nonfinancial resources include which of the following

legitimacy in the minds of the public social capital

What key business element is often an entrepreneur's greatest challenge

raising money to start the business

Which of the following is an example of an entrepreneurial opportunity categorized under economic dislocations?

rising oil prices

A(n) ________ differs from an entrepreneurial venture in that it is not managed aggressively, and its owners expect normal, moderate levels of sales, profits, and growth.

small business

A competitive advantage in the form of relationships with other people and the image other people have of you is called ______ capital

social

An entrepreneur has the most incentive to be careful with financial resources if

the money comes from the entrepreneur's own assets

One of the keys to starting a business is obtaining the money to do so. Where do start-up businesses typically get most of their money from

the owners, their families, and bank lines of credit

For many astute investors, the most important variable of business plans is

the people

One common entrepreneurial problem is an aversion to ______

record keeping

Management guru Peter Drucker states that family-managed businesses should take which of the following measures in order to survive

Family members working in the business must be as capable as other employees. Not all of the key positions should be filled only by family members.

_______ is the promise of payoffs from the project in return for support, time, money, and other resources.

Horse trading

In what ways can businesses whose primary focus is not e-commerce add value through the use of the web

Start-ups and established small companies can have more access to customers, suppliers, investors, and service providers. Traditional companies can save money on customer service/support. Start-ups and established small companies can add to their professionalism by creating an attractive website.

Tiyona Motors plans to introduce a fast, stylish car to its fleet that management hopes will appeal to high-end buyers and grant Tiyona entry into the luxury market. Based on this scenario, what possible outcome should Tiyona be prepared for?

The financial investment will be high, and the competition will be heavy.

One common entrepreneurial problem is an aversion to

record keeping

Which of the following is true about social entrepreneurship?

It creates economic value and social benefits simultaneously.

Select the benefits of a business plan

It helps determine the viability of the enterprise. It serves as a guide as the entrepreneur plans and organizes. It helps entrepreneurs obtain financing.

Who among the following most likely possesses the key characteristics of a successful entrepreneur?

Juana is very innovative and knowledgeable and believes that she would be a successful entrepreneur.

_______ refers to people's judgment of a company's acceptance, appropriateness, and desirability

Legitimacy

Which are included in an opportunity analysis

assessment of the opportunity source of capital description of the good or service specification of resources needed assessment of the entrepreneur

New companies without much of a track record ______

face more hurdles attracting investors and customers

Legitimacy increases the probability of success of a new business by

helping a firm acquire resources such as top managers and good employees.

What items should be covered when discussing competition in the business plan

identification of the current competitors the strengths and weaknesses of the competition how the company will respond to the competition

The first-time sale of federally registered and underwritten shares of company stock to the public is called a(n)

initial public offering

Identifying environmental context is important in a business plan because ______

it can make it easier or harder to get backing and to succeed a favorable regulatory and economic environment will affect the viability of the new venture

A(n) ______ firm will have an easier time acquiring other resources such as top managers, good employees, financial resources, and government support.

legitimate

The first formal planning step is a(n) ______, which provides the basis for making a decision on whether to act

opportunity analysis

The most dangerous risk in corporate entrepreneurship is the risk of ______

overreliance on a single project

Many entrepreneurs want ______ investors who will give them money and let them do what they want

passive

What is the difference in the value of passive or nonprofessional investors with venture capitalists investors

Passive investors will give entrepreneurs the money but let them do what they want. Professional venture capitalist investors are likely to solve problems and know how to help. Professional venture capitalist investors demand more control and more of the returns.

Which survival difficulties are true of entrepreneurial ventures

New ventures have more trouble lining up investors. Mistakes in a start-up are potentially devastating. Increased competition can cause start-ups to fail.

Carl, lab manager for MedEx Pharmaceuticals, told his research chemist, "Mandy, you have my blessing to use company equipment on evenings and weekends to create new products and processes of your own choosing and initiative. I know that this will result in some lost time, but I also know that it will contribute to learning and, ultimately, some profitable innovations." Carl's advice to Mandy is an example of

bootlegging

Which are characteristics of an entrepreneurial personality?

commitment and determination leadership motivation to excel

When an enterprising individual pursues a lucrative opportunity, it is known as

entrepreneurship.

Once a business begins to grow, entrepreneurs must be able to ______

delegate work to other people

Which statements are true about the people in your entrepreneurial business

They should have skills relevant to the venture. They should be good with ideas but ready to switch ideas if necessary. They should be energetic.

A competitive tendency to outperform one's rivals in the marketplace is called ______

competitive aggressiveness

In addition to the financial projections, the best business plans convey which key factors?

the context the opportunity the risks and rewards the competition the people

Select the elements regarding customers that must be addressed in a business plan

the cost to acquire and support a customer the decision-making process of the customer the ease or difficulty to retain a customer

Which of the following e-commerce business models brings buyers and sellers together and charges a commission for each sale?

the intermediary model