MGT 492 Exam 1

After you have generated ideas for needs or problems and you want to narrow the ideas down to the best, what are the most effective approaches to judging ideas? (Select all that apply.)

- Identify the positives of an idea first - Use predefined criteria to establish standards for selection - Don't rush to a conclusion

Which of the following statements ARE entrepreneurial myths? Select all that apply.

- If you're going to be successful, you need a business plan - The more risk you take, the bigger the reward you'll receive - You need a lot of cash to start a business

Entrepreneurship is a way of thinking that is opportunity-focused, risk-taking, _____, and growth-oriented.

Innovative

A company embeds engineers into a hospital to observe methods. What data collection method does this represent?

Primary research

Which of the following statements describes a business model? (Select all that apply.)

- A blueprint for running a business - The decisions entrepreneurs make to earn a profit - A means to create and capture value

Which of the following are new trends as of 2018? Select all that apply.

- Artificial intelligence - Digital twins

According to Porter's Five Forces analysis, which of the following can be characteristics of an attractive industry? (Select all that apply.)

- Few substitutes -Not highly competitive

In which stage of the life cycle of an industry does intense product differentiation occur and a new venture must identify an unserved market niche?

Differentiation and competition

are businesses that serve the same customer needs with the types of resources.

Direct competitors

Which stage of the life cycle of an industry has been dubbed the "Wild West" because there are no rules and lots of opportunities?

Emerging

is(are) an excellent way to explore the social culture of customers to gain important insights.

Ethnography

Amazon took its very successful fulfillment process from books to selling household goods and apparel. What is this an example of?

Taking an existing model to new areas

n addition to testing your hypotheses about your business model, when you conduct feasibility analysis, you also want to answer three questions about the success factors for your business. What are they?

- Do the capital requirements to start and operate to a positive cash flow make sense? - Can I put together the right founding team to execute my concept? - Is there a customer and market of sufficient size to make the concept viable?

The entrepreneurial process provides many benefits to the economy. Which of the following are two of those benefits? Select all that apply.

- Entrepreneurs create new industries - Technological change spurs economic growth

Which of the following is a true statement?

c. Many large businesses have started as home-based businesses.

True or False? Business models take a long time to develop and should not be changed.

False

The business model does NOT include which of the following components?

- Revenue sources and cost drivers - Business activities and resources - Value proposition - Distribution channels

Which stage of the life cycle of an industry requires new innovation to continue growth?

Maturity and decline

You conduct a survey of businesses in your industry. What data collection method does this represent?

Primary research

You talk to suppliers and distributors in your industry. What data collection method does this represent?

Primary research

You conduct research through IBISWorld. What data collection method does this represent?

Secondary research

You research and look for patterns on social networking sites. What data collection method does this represent?

Secondary research

Which stage of the life cycle of an industry has the most intense competition?

Shakeout

The decade of the 1970s was characterized by:

The technology revolution, international competition, and macroeconomic turmoil

True or False? Personal interviews are costlier and time consuming than surveys.

True

True or False? With personal interviews, you gain the benefit of nonverbal communication.

True

Because starting any business requires a tremendous amount of time, effort, and resources, it makes sense to:

c. start a business that has the potential to grow large and give a good return on investment.

What are some ways you can innovate with your business model? (Select all that apply.)

- Raise the quality of your product above industry standards - Eliminate something that has traditionally been done in your industry - Find the white spaces in your industry

A customer matrix is used to: (Select all that apply.)

- Segment a large market into smaller markets - Understand how to reach a particular customer - Determine what type of business you have - Determine which customer has the greatest need

Which of the following is NOT a critical skill that an entrepreneur needs to acquire to be successful?

- The ability to read quickly

What distinguishes an entrepreneurial venture from a small business? Select all that apply

- The business has a goal t grow - The business creates new value

What kinds of information do you want to collect about an industry you're interested in? (Select all that apply.)

- Whether the industry is growing or not. - Where the opportunities are. - How quickly the industry adopts new technology. - Whether there are high entry barriers or not.

True or False? When doing surveys, you must control the selection of respondents.

False

Which stage of the life cycle of an industry is expensive because a company needs to deploy extensive resources?

Growth and adaptation

Which one of the following statements about innovation and commercialization is most accurate?

Innovation takes a novel idea and turns it into a product or service, while commercialization is the business process that moves an innovation from the lab to the market.

Which of the following are reasons entrepreneurs choose the startup process rather than selling a product or service to an existing company? Select all that apply.

- Investment capital is plentiful - You opportunity is new to the world - The job market is uncertain

Select all the following that accurately complete the following sentence. Design thinking is a:

- Process to gain empathy with customers - Process that involves experimentation - Technique that requires collaboration

True or False? It's always best to ask demographics questions first when the respondent is most attentive.

False

serve the same customer needs as your business, but with different resources.

Indirect competitors

When you are trying to generate ideas for problems or solutions in a group, which of the following should you do? (Select all that apply.)

- You should capture even the most outlandish ideas - After brainstorming, combine ideas to create new ideas

What is the difference between an industry and a market?

An industry is defined by a product or service and a market is defined by customers.