ELE 3010 Midterm

Reverse brainstorming is much like brainstorming except that: - The group need not be careful to maintain good morale - The technique is based on finding solutions - The process usually involves identification of everything wrong with an idea - Criticism is not allowed

- The process usually involves identification of everything wrong with an idea

A focus group should consist of how many people?

10-12

Once accepted, the trademark is published in the Trademark Official Gazette for ____ days to allow any party to oppose or request an extension to oppose the use of the mark. - 10 - 30 - 90 - 180

30

Offering a small product range to a small number of customer groups is: - a way of reducing market uncertainties - a broad scope strategy - an imitation strategy - a narrow scope strategy

A Narrow scope strategy

_______ includes initiative and risk taking, as well as competitive aggressiveness and boldness. A. Self-renewal B. Proactiveness C. Innovativeness D. New business venturing

B. Proactiveness

The basic building blocks to a firm, or the inputs into the production process, are: A. Competition B. Resources C. Strategy D. Liabilities

B. Resources

Entrepreneurial culture and growth orientation consists of all of the following except: - Being creative - the desire to grow at a slow and controlled pace - encouraging employees to generate ideas - focusing on opportunities

B. The desire to grow at a slow and controlled pace

Authors or publishers of software are protected under: - utility patents - copyrights - trade secrets - trademarks

Copyrights

A new entry includes all of the following except: A. Creating a new brand name for your company B. Offering an established product to a new market C. Creating a new organization D. Offering a new product to a new market

Creating a new brand name for your company

_____ is not desirable when brainstorming is in process. - Generating a large quantity of ideas - Idea combination and improvement - "Freewheeling" - Criticism

Criticism

In order to be the basis for a firm's superior performance, a bundle of resources must be valuable, rare, and imitable. (True or False)

False

In the McMullen Shepherd Model the first stage is the evaluation stage. (True or False)

False

It is recommended that an entrepreneur avoid using the internet as a resource for finding information to write a business plan because the information found there is often incorrect and unreliable. (True or False)

False

Newness of a new entry is always an advantage. (True or False)

False

The McMullen Shepherd Model helps identify the common traits of successful entrepreneurs. (True or False)

False

The business plan address only short-term decision making (True or False)

False

The product life cycle consists of five main stages. (True or False)

False

The three main categories of patents are design, utility, and provisional patents. (True or False)

False

Which of the following is an internal environmental variable? - the economy - industry demand - technology - financial resources

Financial resources

An opportunity assessment plan: - is longer than a business plan - focuses on the opportunity not the venture - has a lot of computer-based spreadsheets - is the same thing as a business plan

Focuses on the opportunity, not the venture

The organization plan describes the business: - physical plant and machinery layout - location as well as its plants - form of ownership - system of distribution

Form of ownership

Continuous innovations are described as: - Having to establish new consumption patterns due to the creation of a previously unknown product - Having some disruptive influence on established consumption patterns - Having the least disrupting influence on established consumption patterns - Having no disruptive influence on established consumption patterns

Having the least disrupting influence on established consumption patterns

All of the following are questions an opportunity assessment plan might answer except: - what market need does it fill? - can a patent be obtained? - how much capital do I need? - what business skills do I have?

How much capital do I need?

When collecting marketing information the entrepreneur should? - not include general environmental information - start with narrow-based data and work down toa more broader scope of information - identify competitors - not aim to define a specific market

Identify competitors

The simplest approach to gathering primary information is: - interviewing - observation - focus groups - experimentation

Observation

______ is defined as the risk of interference with the operations of the venture. - Operating risk - Ownership risk - Investment risk - Transfer risk

Operating risk

Which among the following political risks is considered the biggest risk of all? - Ownership risk - Investment risk - Transfer risk - Operating risk

Ownership risk

A ______ is a contract between the government and an inventor. - Trade secret - Trademark - Patent - Franchise

Patent

Observation, interviewing, and focus groups are examples of collecting: - target data - primary data - secondary data - marketing data

Primary data

Before writing the business plan an entrepreneur should conduct an objective self-assessment of his or her abilities which includes areas such as planning and sales skills. (True or False)

True

Bricolage is entrepreneurs making do by applying combinations of the resources at hand to new problems & opportunities (True or False)

True

Entrepreneurial opportunities are those situations in which new goods, services, raw materials and organizing methods can be sold at greater than their production cost. (True or False)

True

Entrepreneurially managed firm structure is usually flat with multiple informal networks. (True or False)

True

Generally, independent, venture-capital based start-ups by entrepreneurs tend to outperform corporate start-ups significantly. (True or False)

True

The effectuation process starts with what one has and selects among possible outcomes (True or False)

True

The period of time when the environment is favorable for entrepreneurs to exploit a particular new entry is called the window of opportunity. (True or False)

True

The question "What is this technology all about?" is a comprehensive question. (True or False)

True

Focus groups use which of the following methods? - A moderator asks each individual in the group questions, interview style - Each participant obtains new ideas and solutions by focusing on problems - A moderator leads the group in an open, in-depth discussion - Each participant fills out a questionnaire, followed by individual exit interviews

A moderator leads the group in an open, in-depth discussion

Business-to-business marketing involves: - selling products such as household furniture - a more direct channel of distribution than consumer markets - selling products and services through certified representatives - sales to households for personal consumption

A more direct channel of distribution than consumer markets

A broad-scope strategy: A. Opens the firm up to many different "fronts" of competition. B. Is vulnerable to the risk that market demand does not materialize as expected and/or changes over time C. Offers a way of reducing some competition-related risks D. Focused the firm on producing customized products, localized business operations, and high levels of craftsmanship

A. opens the firm up to many different "fronts" of competition.

An assessment of external uncontrollable variables that may impact the business plan is known as: - a trend analysis - an environmental analysis - an executive summary - a description of the venture

An environmental analysis

Focus groups: - are an informal method of gathering market information - consist of 20 to 30 potential customers - should be led by the entrepreneur - discuss information in a formal and standardized procedure

Are an informal method of gathering market information

What term describes the practice of paying for goods indirectly through another source? - Barter - Exporting - Promotion - Licensing

Barter

This problem-solving method involves developing new ideas by thinking without constraints. - Brainwriting - Value analysis - Big dream approach - Attribute listing

Big dream approach

Which of the following is true about corporate entrepreneurship? A. Top management should not be involved in the process B. Teams should be segmented by department C. A company must be willing to invest money without a guarantee of a return in the short term D. Equity in a new venture should not be used as a reward due to its uncertain value

C. A company must be willing to invest money without a guarantee of a return in the short term

By delaying entry, late movers: A. Secure the window of opportunity B. Have less information about market demand C. Can learn from the actions of first movers without incurring the same costs D. Can avoid high entry barriers

C. Can learn from the actions of first movers without incurring the same costs

Which is NOT a leadership characteristic of a corporate entrepreneur according to the text? A. Persistence B. Flexibility and vision C. Encourages colleagues to follow hierarchy D. Encourages teamwork

C. Encourages colleagues to follow hierarchy

The section of the patent application which provides the criteria by which any infringement will be determined is the: - description of the invention - background and advantages section - executive summary - claims section

Claims section

Which of the following creative methods involves having participants write down their ideas several times a day? - Collective notebook method - Parameter analysis - Brainstorming - Forced relationship

Collective notebook method

Which stage of marketing research is considered to be the most difficult for an entrepreneur due to lack of knowledge or experience in marketing? - Analyzing and interpreting the results - Defining the purpose or objectives - Gathering data from primary sources - Gathering data from secondary sources

Defining the purpose or objectives

The ____ patent is granted for a 14-year term. - procedure - utility - design - plant

Design

Which of the following is a contract that grants the owner protection, based on the appearance of an object? - Plant patent - Disclosure document - Utility patent - Design patent

Design patent

The _____ element of the marketing mix involves decisions as to what is the most appropriate channel. - distribution - price - promotion - product

Distribution

Market segmentation is the process of: - describing market conditions - exploring new market opportunities - presenting future opportunities - dividing the market into smaller homogeneous groups

Dividing the market into smaller homogenous groups

Which among the following influences whether customers are able to use the good or service properly and whether they are able to understand the firm's advantage or other promotional messages? - Manners and customs - Education - Religion - Political philosophy

Education

In regards to the differences between the entrepreneurial and administrative focuses which of the following is correct? A. Entrepreneurs are driven by controlled resources; managerial by opportunity B. Entrepreneurs rent or sporadically use resources; managers like to own resources C. Entrepreneurs focus on slow steady growth and managers focus on rapid growth D. Entrepreneurs tend to use hierarchical management structure; managers use a more fluid, flat approach

Entrepreneurs rent or sporadically use resources; managers like to own resources

The section of the business plan in which the entrepreneur identifies changes occurring on the national and international level is the: - executive summary - merchandising plan - environmental and industrial analysis - description of the venture

Environmental and industry analysis

A reflection task would involve thinking about what strategies should be used to solve a problem. (True or false)

False

Customers always embrace change in products and services. (True or False)

False

Entrepreneurially run firms are driven by controlled resources whereas traditionally managed firms are driven by perception of opportunity. (True or False)

False

In encouraging culture for corporate entrepreneurship, using older, proven, technology is recommended in order to increase stability in the organization. (True or False)

False

Concerns regarding roads, electricity, banking facilities, communication and educational systems have to do with a country's: - infrastructure - political climate - balance of payments - economics

Infrastructure

_______ is the process of an entrepreneur conducting business activities across national borders. - Intrapreneurship - Domestic entrepreneurship - International entrepreneurship - Direct importing

International entrepreneurship

When evaluating business plans _______ are primarily concerned with the four Cs of credit. - Employees - Vendors - Lenders - Investors

Lenders

Distribution, pricing, and promotion of the product are discussed in which section of the plan? - marketing - production - merchandising - organization

Marketing

The _______ is the written statement of marketing objectives, strategies, and activities to be followed in the business plan. - marketing mix - marketing structure - marketing system - marketing plan

Marketing plan

_____ is the process of gathering information in order to determine who will buy the product and what is the most appropriate distribution channel? - marketing planning - market mixing - marketing research - market segmentation

Marketing research

Which of the following is true regarding the Sarbanes-Oxley Act? - The act does not cover fraud via TV or radio - Private companies are not included in this act - The act only covers a narrow range of corporate governance activity - It only applies to companies that make over $10 million in gross revenue

Private companies are not included in this act

The _____ is defined as the stages each product goes through from introduction to decline. - entrepreneurial decision-making process - product planning and development process - test marketing process - product lifecycle

Product life cycle

The marketing mix consists of: - product, price, distribution, and research - product, price, research, and promotion - product, research, distribution, and promotion - product, price, distribution, and promotion

Product, price, distribution, and promotion

If the new venture is a manufacturing operation a(n) _____ in the business plan is necessary. - quality control plan - ownership plan - partnership agreement - production plan

Production plan

The _______ is filed to establish a date of conception of an invention and replaces what used to be known as a disclosure document. - Defensive document - Provisional patent - Copyright - Trademark

Provisional Patent

_____ refers to the probability, and magnitude, of downside loss. - risk - technology error - liability of newness - reward

Risk

Information that already exists is called: - primary data - marketing data - target data - secondary data

Secondary data

The business plan presentation for potential investors: - should contain no negative projections - should prove the entrepreneur's own perspective - should enable the entrepreneur to "sell" his or her business concept in a designated period of time - should be presented only in writing

Should enable the entrepreneur to "sell" his or her business concept in a designated period of time

The _____ is the specific group of potential customers toward which a venture aims its marketing plan. - external environment factor - target market - consumer market - channel of distribution

Target market

Which of the following problem-solving techniques begins with group members not knowing the exact nature of the problem? - Parameter analysis - Matrix charting - The Gordon method - Free association

The Gordon method

Which of the following statements is true? - the business plan describes both internal and external elements - most business plan resources on the internet are too complex and expensive to be of use to the new venture - once made, a business plan should not be changed - the preliminary business plan should be prepared by a lawyer

The business plan describes both internal and external elements

Which of the following is NOT a common reason why business plans fail? - the entrepreneur has no experience in the planned business - the promotional strategy was not taken seriously - no customer need was established - objectives are not measurable

The promotional strategy was not taken seriously

The depth and detail of a business plan depend on: - the target audience - the size and scope of the new venture - the experience of the entrepreneur - the amount of capital needed

The size and scope of the new venture

Which of the following statements is true? - Unlike a patent, trademark does not last indefinitely - These are four categories of trademarks - A trademark may be a word, slogan, design or particular sound - It is possible to file for a trademark if you intend to use this mark in the future

Unlike a patent, trademark does not last indefinitely

Corporate entrepreneurship is best described as: A. The process of hiring consultants to teach a firm how to be more creative B. The process of buying acquiring entrepreneurial firms C. The hiring of former entrepreneurs D. Entrepreneurial action within an organization

entrepreneurial action within an organization

In regards to thinking structurally, superficial similarities: A. Exist when the underlying mechanisms of the technology resemble (or match) the underlying mechanisms of the market B. Exist when supply is less than demand C. Exist when the basic (relatively easy to observe) elements of the technology resemble the basic elements of the market. D. Exist when entrepreneurs engage in bricolage

exist when the basic (relatively easy to observe) elements of the technology resemble the basic elements of the market.

The first step in establishing corporate entrepreneurship in an organization is:

securing commitment from top management