MGT 342- Chapter 1-3

Which of the following is true of corporate entrepreneurship?

It involves the creation of self-sustaining charitable and civic organizations

The external environment

consists of the forces, institutions, and people (i.e., the rest of the world) outside the boundary of a firm.

The ______ environment is made up of those components that a firm deals with directly such as customers, suppliers, consultants, media, and interest groups

task

Which of the following answer options is not an indicator of a sustainable organization?

winning the Baldrige Award

A set-aside is

a government contracting fund earmarked for particular kinds of firms, such as small businesses, minority-owned firms, or women-owned firms.

High growth venture differ form small businesses in that in high-growth ventures

the limitation of growth is dictated by market response rather than the owners loss of control

The environment

the sum of all the forces outside the firm or entrepreneur.

Sustainable entrepreneurship is considered "greener" so the approach is sometimes called green entrepreneurship.

true

Which of the following are best practices of online social networking?

Be consistently involved in online networking. Take the initiative to ask others on the network to link with him or her. Make it easy for people to contact the business owner.

In ______, the second-best outcome is identified by the parties in a mediation to help clarify the value of achieving a successful mediation.

Best Alternative to a Negotiated Agreement (BATNA)

According to the BRIE model, sets up a business as a firm.

Boundary

Family members contribute which of the following?

Capital Employees Support network

___ is a person's way of perceiving and thinking about his or her experience.

Cognition

Which of the following are true statements in the context of organizational culture? {(Check all that apply.

Compared to larger businesses, it is easier for small businesses to manage organizational culture. Organizational culture is a key element of a firm's organizational identity.

Documentation and demonstration offered for products are product-based legitimacy indicators of

Experiential supports

A nation where the major forces for jobs, revenues, and taxes come from farming or extractive industries like forestry mining, or oil production is a(n)

Factor Driven economy

In order to make profits from a small business, the company needs to make an actual product.

False, they an provide a service

Which of the following might be examples of green entrepreneurship?

Fuel-efficient and electric cars Compact fluorescent and LED lights Recycling of trash

Which statement regarding how to handle a crisis are correct? (Check all that apply.)

Get to the scene as soon as possible Have one person as the firm's spokesperson Deal with the crisis quickly

The form of entrepreneurship in which a person or group owns their own for-profit business is referred to as independent

Independent Entrepreneurship

Which of the following statements about a promotion focus are correct?

It has a bias toward maximizing gains, thus pursuing opportunities likely to lead to gains. It is one of the two internal or regulatory focuses. It can yield better results in richer, dynamic, uncertain environments or industries.

___ is the belief that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors.

Legitimacy

When looking at the business costs of ethical failures, which level of costs receive less executive attention?

Level 3 costs

Lisa runs a dog grooming business and is always looking for new trends, reading articles, keeping notes, and talking to customers and suppliers about what is needed in the industry. What important function is Lisa performing?

Lisa is building social capital

According to the BRIE model which of the following is true of a resource>?

Moving goods and services

Which of the following are examples of the political-legal sector of the general environment?

New legal and policy initiatives. Changes in political parties and players. Federally mandated laws and programs that affect businesses.

Which of the following answer options is not one of the four generic overall growth strategies?

Part time firm

Which of the following statements regarding ethics are correct? (Check all that apply.)

People make judgments about actions based on their personal ethics. People consider ethics in determining whether decisions are good or bad. Ethics is a system of values.

In the context of crisis management, which of the following are government-recommended steps for preparing for disasters?

Plan to stay in business. Protect the business's investment.

According to the text, the definition of a __________ is one that involves 1-50 people and has its owners managing the business on a day-to-day basis.

Small business

Which of the following statements is true of social capital?

Social capital is capital in the same sense that cash or land can be.

___ sector of the general environment includes innovation, invention, and modernization.

Sociocultural

______ entrepreneurship is an approach to the operation of a firm, the line of business of a firm, or both, which identifies or creates and then exploits opportunities to make a profit in a manner that minimizes the depletion of natural resources, maximizes the use of recycled material, improves the environment, or any combination of these outcomes.

Sustainable

Which of the following statements about utilitarianism are correct? (Check all that apply.)

The focus is on the communities' best interest in the future. Basically, it's about actions resulting in the greatest good for the greatest number. It has a strong community focus.

Which of the following statements about second career entrepreneurs are correct?

They sometimes retire early and decide they want to work rather than retire. They start businesses due to being laid off after corporate mergers and downsizing. About 33% decide they want to become self-employed

Cognition is defined as

a persons way of perceiving and thinking about his or her experience

Virtual instant global global entrepreneurship refers to _

a process that uses the internet to quickly create businesses with a worldwide reach

reactive planners

are completely passive, waiting for cues from the environment to determine what actions to take

Comprehensive planners

develop long-range plans for all aspects of a business.

______ sector of the general environment includes the trends and current conditions of the overall market for goods and services, the availability of equity and credit, and employment.

economic

The entrepreneurial ______ is the specific configuration of the environment that reflects the components that are most central to developing a strong and active community of start-up businesses.

ecosystem

____ is a system of values that people consider in determining whether actions are right or wrong.

ethics

The general environment is part of the external environment and

is made up of sectors of major forces that shape the people and institutions of the task and internal environments.

The task environment

is made up of those components that a firm deals with directly such as customers, suppliers, consultants, media, and interest groups.

are fundamental activities common to all businesses such as sales, operations, and human resources.

key business

income rewards

the money earned by owning ones own business

Growth rewards

the rewards individuals earn from facing and beating challenges

Which of the following is a reward that is rarely mentioned by entrepreneurs?

to continue a family tradition

A situation that occurs when a person's values are in conflict, making it unclear whether a particular decision is the right thing to do is considered an ethical dilemma.

true

Sara was a librarian at her city's high school. She received a copy of School Library Journal each month and often looked to this source for ideas to incorporate into her library services. Sara is using what source for new ideas?

Trade magazine

Which of the following are approaches to managing a firm's external relations?

building legitimacy and developing a social network

Another approach to building organization-based legitimacy is the creation and display of a(n)

company code of ethics

Organizational identity is

composed of the name, description, and distinctive elements of a firm, such as trademarks, uniforms, logos, characters, and stories.

______ is the extent to which a firm meets or exceeds the standard business practices for its industry.

comprehensive planning

The technological sector of the general environment

consists of innovation, invention, and modernization that take place within the industry

_____ planners plan around the most important aspect of a business first, act on it, and then consider if additional plans are needed

critical point

Anna helps brides-to-be choose wedding gowns that best suit their requirements and budget, and also helps them with where they can find the right dress. She has made her home her virtual office; she does not require external financing. Anna is using______ to run her small business.

crowdsourcing

Which of the following is one of the most common behaviors found in successful entrepreneurs?

passion

All of the following are one of the six key elements of entrepreneurial culture except

passion for suppliers

The emergence stage is the first stage of the small business life-cycle,

where an entrepreneur moves from thinking about starting a business to actually starting a business.

Which of the following are examples of a network connection?

Family and friends Business associations Religious and civic organizations

At the tip of the high-growth ventures are firms called ________, like Uber and AirBnB with valuations of 1$billion or more.

Unicorn

An ethical model conceived by the German philosopher Immanuel Kant which suggests that there is a code of right and wrong that everyone can see and follow refers to

Universalism.

______ is an ethical model that supports seeking the greatest good for the greatest number of people.

Utilitarianism

______ is/are the general description for the processes and skills used in the management of a firm's interactions with people, organizations, and institutions outside of its boundary.

external relations

Key business functions are

fundamental activities common to all businesses such as sales, operations, and human resources.

Opportunistic planners

generally start with a goal and look for opportunities to achieve it.

Lifestyle firms, traditional small businesses, and high performing small business are often called

main street businesses

Roller-Tell Inc., a major supplier of components to the automobile industry, has recently confronted a crisis as one of its manufacturing units has been forcefully shut down by the local union. As a result, the company has been unable to meet the customer demands appropriately. As the owner of the business, the most appropriate way for the firm to handle this crisis is to

make the process of dealing with the problem as open as possible.

The existence stage of the business life cycle is

marked by a business being in operation but not yet stable in terms of markets, operations, or finances.

A set of shared beliefs, basic assumptions, or common, accepted ways of dealing with problems and challenges within a company that demonstrate how things get done refers to

organizational and culture

A business run by the individual who owns it is referred to as a

owner managed firm

Which of the following is a reward universally mentioned by entrepreneurs?

personal growth

As the owner of a small business, quickly admitting that the firm is in trouble during a crisis indicates a lack of accountability.

true

Competencies are

forms of business related expertise

A firm can best increase its product-based legitimacy by

gathering numerous public reviews on Yelp, Google, or other rating sites.

Gaining legitimacy in small businesses is especially difficult for entrepreneurs seen as "different"—women, minorities, home-based businesses, or businesses started by young people.

true

The ______ environment is a part of the external environment made up of sectors of major forces that shape the people and institutions of the task and internal environments.

general

______ planners do not really plan, since their actions are dictated by their routines.

habit based

The sociocultural sector of the general environment

includes factors such as nationality or religion, and subcultures that are based on groups formed around shared interests within a larger culture.

The economic sector of the general environment

includes the trends and current conditions of the overall market for goods and services, the availability of equity and credit, and employment.

Which of the following legitimacy-building features does having trademarks, service marks, patents, or copyrights typically indicate?

intellectual property

___ is part of the BRIE model; composed of the name, description, and distinctive elements of a firm, such as trademarks, uniforms, logos, characters, and stories.

organizational identity

Which of the following are entrepreneurial behaviors that most successful entrepreneurs display?

perseverance, promotion/prevention focus, passion. Professionalism, planning style

The ______ sector of the general environment reflects the broad trends affecting law and government.

political legal

______ planners are completely passive, waiting for cues from the environment to determine what actions to take.

reactive

A "___________________" approach suggests thinking of entrepreneurial opportunities in terms similar to buying a stock option, putting a small amount of money down now to let you invest more at favorable rates later.

real options

For a small business, making ethical decisions involves three steps: define, generate, and implement.

true

Lifestyle or part-time firms typically provide enough profit or salary to supplement an income but usually not enough on which to live

true

One of the seven key strategies of the entrepreneurial way involves effectuation or an approach used to create alternatives in uncertain environments

true

One part of the environment important for small business founders is the entrepreneurial ecosystem, which is those elements that make up the settings most helpful to promoting entrepreneurship.

true

The most frequently occurring element of the BRIE model is intention

true

True or false: In a crisis, small business owners need to stay calm, take care of their employees and other people involved, and keep them informed.

true

Using low-cost or free techniques to minimize cost of doing business is referred to as bootstrapping

true

Your personal network are people you have encountered in the physical world, while your social network are the people you know online.

true

Small businesses are important to the U.S economy but do very little for local communities

false

Truly entrepreneurial businesses are characterized by imitativeness in their products, services, or business model.

false

______ is a firm in which a group of people who are related owns a majority stake and is involved in the daily management of the business.

family business

​​In the context of crisis management, which of the following are government-recommended steps for preparing for disasters?

Plan to stay in business. Protect the business's investment.

Kevin wanted to start his own business of ferrying pets to the vet or groomers for their owners but he was advised to perform a feasibility analysis before moving forward. Kevin is on the third step of the entrepreneurial process: Plan

False, if he is performing a feasibility study, Kevin is likely at the second step in the entrepreneurial process: check.