ENTREPRENEURSHIP EXAM 1

T/F Uniform Compensation encourages entrepreneurial environment

False

T/F the corridor principle states that entrepreneurs often get stuck on one idea

False

an approach development as a criteria list from which entrepreneurs can gain insights into the viability of their new venture is the

Feasibility criteria approach

Market Feasibility analysis relies on

General economic trends and competitor data

What are skunk works?

Groups that function outside traditional lines of authority permitting rapid turnaround of new ideas

Entrepreneurial stress can be caused by having type A personality which can be defined as:

Having a chronic sense of time urgency

Methods for going international include

Importing Exporting Licensing

What is a major reason for the failure of a new venture?

Inadequate market knowledge

The process approach to entrepreneurship seeks to:

Model the various factors that characterize the entrepreneurial process

The word entrepreneur is derived from the French word meaning

To undertake

T/F Allowing bootlegging of ideas helps develop corporate entrepreneurship

True

Entrepreneurs and gazelles have been credited with making disproportionate contributions to all but which of the following

Unemployment

Mountain gap strategies refer to:

Unique Markets

High-growth ventures is a type of

Venture classification

The micro view is divided into which three theories?

Venture opportunity, entrepreneurial, strategic

What best describes a gazelle?

a business with at least 20% growth every year

Collective entrepreneurship, as a concept, refers to

a entrepreneurial thinking that is diffused throughout the company

The major thrust of corporate entrepreneurship is to

encourage innovation

Rapid technological advances in many industries cause a concern for ____ in new venture development

inadequate awareness of competitive pressures

Transformational triggers in a corporate entrepreneurial environment initiates the need for

strategically adapting to change

What are sources of innovation?

unexpected occurrences and incongruities

When entrepreneurs believe that their accomplishments and setbacks are within their own control and influence, they are exhibiting

Internal locus of control

Logical and analytical skills are developed in the

Left hemisphere of the brain

The most pro-active position for a corporation to take in regard to social responsibility would be termed:

Social responsiveness

Ecopreneurs are only concerned with

The economically sustainable development

T/F Both sides of the brain are important to the creative process

True

T/F Encouraging a bias for action helps develop corporate entrepreneurship

True

T/F Purpose, accountability, and transparency are characteristics associated with socially sustainable enterprises

True

Generally, entrepreneurial stress is due to

the discrepancy between the entrepreneur's expectations and the ability to meet demands

A _____ is a statement of ethical practices or guidelines to which an enterprise adheres

Code of conduct

Characteristics often attributed to the entrepreneur include:

Commitment, determination, and perseverance

The first of five steps for entering the international marketplace is:

Conducting research

With every new venture launched, new and unintended opportunities arise, would be what kind of principle?

Corridor principle

The second step in planning a strategy of entrepreneurship for the enterprise is

Developing and encouraging innovation

What are incongruities?

Differences between expectations and reality

The displacement school of thought can be divided into which three groups?

Economic, cultural, political

Key elements in plans to create a sustainable future are likely to include:

Eliminating the concept of conservation

The macro view can be broken down into which three areas?

Environmental, financial, and displacement

T/F A loss orientation toward grief recovery in dealing with failure can sometimes lessen negative emotional reactions

False

T/F According to the model of entrepreneurship motivation, the entrepreneur's expectations are not compared with the actual or perceived outcomes of the firm

False

T/F Ecopreneurship is a combination of ecologically and economically sustainable development

False

T/F Entrepreneurs are high risk takers

False

T/F Frustration is a trait of successful entrepreneurs

False

T/F Gazelles are almost always high tech

False

T/F International alliances rarely require the exchange of proprietary knowledge

False

T/F Overall market understanding rather than a time-consuming focus on market niches is sufficient for an evaluation

False

T/F Social responsibility consists of those obligations that society has to businesses

False

T/F Systematic evolution of a product or service into newer or larger markets is referred to as radical innovation

False

T/F The resources of the organization are irrelevant to the ability of the corporate entrepreneur to implement an idea

False

T/F There is a great abundance of the reliable data concerning the start-up, performance, and failure of new ventures

False

The macro view of entrepreneurship presents factors exhibiting a strong:

External locus of control

What are three characteristics of the dark side of entrepreneurship

External optimism, sense of distrust, desire for success

T/F Entrepreneurs are born not made

False

T/F Most entrepreneurs are well schooled in the technology associated with their ventures

False

During the past 10 years, new business incorporations averaged nearly _____ per year:

600,000

What helps account for the rise of interest in corporate entrepreneurship

An increase in corporations losing some of their best people

What are the four types of Innovations?

Invention, extension, synthesis, duplication

What are the four phases of the creative process

Knowledge accumulation, incubation, idea experience, evaluation

The incubation process involves:

Letting he subconscious work

What does an L3C stand for?

Low-profit, limited liability companies

Michael Gerber, the author of the E-myth, explains that the failure of most small business is due to

Owners being more technical rather than entrepreneurial

What are the three Ps of the triple bottom line?

People, Planet and profits

Bottom-line measures of economic performance include:

Personal income Cost of underemployment Job growth

A common pitfall in selecting a new venture is

Poor financial understanding

Every person has the _____ and ____ to pursue a career as an entrepreneur

Potential, Free Choice

Three specific phases that a new venture goes through are

Prestart-up, start-upending start-up

In restructuring corporate thinking, top management should

Promote entrepreneurship through experimentation

What is the greatest risk to the well-being of the entrepreneur

Psychic risk

What term describes the inaugural breakthroughs launched from experimentation and determined vision

Radical Innovation

What is bootlegging?

Secretly working on new ideas on company time as well as on personal time

The first step in planning a strategy of entrepreneurship for enterprise is:

Sharing the vision of innovation

The first step in planning a strategy of corporate entrepreneurship is:

Sharing the vision of innovation that executives wish to achieve

The entrepreneurial ego can cause the entrepreneur to

Take characteristics that usually lead to success to the extreme

What is social entrepreneurship?

The combining resources to exploit opportunities to create social value

The statement, "With every new venture launched, new and unintended opportunities often arise" would be associated with what principle?

The corridor principle

The decision to behave entrepreneurially is the result of the interaction of:

The individual's personal and entrepreneurial mind-set and an opportunity

An advantage for global entrepreneurs of diaspora networks is

The speed with which information flows across borders

What is incremental innovation

The systematic evolution of a product or service into newer or larger markets

What factors should organizations concentrate on in structuring an entrepreneurial climate

Top management support, time, resources, rewards, organizational boundaries

T/F Corporate entrepreneurship has become popular because it allows corporations to tap the innovative talents of the personnel

True

T/F Entrepreneurial cognition is in part about understanding how entrepreneurs use simplifying mental models to make assessments, judgments, and decisions about opportunities

True

T/F Entrepreneurs are aggressive catalysts for change within the marketplace

True

T/F Innovation is the process by which entrepreneurs convert opportunities into marketable ideas

True

T/F Synthesis is the combining of existing concepts into a new formulation

True

T/F The cognitive ability of entrepreneurs to acquire and transform information has yet to be studied

True

T/F The generation of the twenty-first century may become known as generation E because it is becoming the most entrepreneurial generation since the Industrial Revolution

True

T/F The macro view of entrepreneurship includes external processes that are sometimes beyond the control of the entrepreneur

True

T/F a transformational trigger can be internal or external to the company

True

Throughout the years, many myths have arisen about entrepreneurship as a result of

lack of research about entrepreneurship

Area of risk to the entrepreneur include

Career, family, psychic

Corporate social responsibility refers to

Actions that further social good beyond the interests of the firm

What are the 4 phases in the creative process?

Background knowledge accumulation, incubation, idea experience, evaluation and implementation