MNGT 321 MidTerm

T/F Incubation in the creative process often occurs when the individual is doing something completely unrelated to the subject

T

T/F Recognition of entrepreneurs dates back to the French economist Richard Cantillion

T

T/F Richard centillion is an entrepreneur in taking on a risk for exchange for profit

T

T/F Social entrepreneurs are known to form ventures that exploit opportunities to create social value

T

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

T

T/F feasibility analyses include technical, market, financial, organizational, and competitive analyses

T

T?F incubation in the creative process often occurs when the individual is doing something completely unrelated to the subject

T

Which of the following is NOT an advantage of acquiring an ongoing venture rather than starting a new business? a.) less fear about whether the business model is feasible b.) high growth potential associated with recognizing an unmet customer demand c.) reduced time and effort to establish the business d.) potential for acquiring the business as a bargain price

b

Which of the following is something that is similar between Angel investors and venture Capitalists? a.) the stage of venture development when that are willing to invest b.) expected rate of return on their investment c.) the amount of money they are willing to invest in a venture d.) the analysis and "due diligence" process they use to evaluate a potential investment

b

to be profitable, total revenue must exceed total cost. Break0even analysts tells us we must look at both a.) number of competitors and stage of the product0market life-cycle b.)price per unit and total number of units sold c.) concept of a team approach d.) assuming debt too early

b

Which of the following would be most commonly used for short term financing? a.) angel investors b.) finance companies c.) trade credit d.) leasing companies

c

which of the following statements are true of entrepreneurial personality traits? a.) they tend to vary based on the situation confronting the entpreneur b.) they tend to be very reliable in predicting who will and who will not succeed as an entrepreneur c.) about 50% of the strength of these characteristics is determined by hereditary d.) they depend on prior knowledge and experience e.) all of the above are true of entrepreneurial traits

c

What building block of the business model is describes the types of relationships a company establishes with specific customer segments

customer relationships

What building block of the business model is defines the different groups of people or organizations an enterprise aims to reach and serve

customer segments

The decision to behave entrepreneurially is the result of the interaction of a.) a new market and a new technology b.) the relevant business environment and consumer trends c.) the existence of a viable business idea and availability of start-up capital d.) the individual's personal entrepreneurial mind-set and opportuntiy

d

The person who has the opportunity to lead and "run" with an idea would be coined which of the following a.) visionary b.) department-manager c.) manager d.) champion

d

The word entrepeneur is derived from the French entreprendre which is translated a.) to compete b.) to enter and dare c.) to apprehend d.) to undertake

d

which of the following type of new venture would involve the least amount of product innovation? a.) adaptive market entry b.) customer value pioneering c.) technological pioneering d.) imitative market entry

d

When accounts receivable are bought from a company for capital funding it is called a.) trade credit b.) financing c.) leasing d.) factoring

d.) factoring

*Innovation graph of entrepreneurship* Looks like a long sideways S The top part of the graph Where agents possessing knowledge become increasingly important

innovation-driven stage

What building block of the business model is describes the most important things a company must do to make its business model work (Create and deliver value to customer)

key activities

What building block of the business model is describes the network of suppliers and partners that make the business model work

key partnerships

What building block of the business model is describes the important assets required to make a business model work

key resources

What building block of the business model is represents the cash a company generates from each customer segment (monetize the value created)

revenue streams

T/F Stevenson & Carlos noted that economists studied WHAT happens when entrepreneurs act, sociologists and psychologists study WHY entrepeneurs act; our focus is HOW they act

t

What building block of the business model is describes the bundle of products and services that create value for a specific customer segment

value proposition

T/F pricing becomes less of a concern when customers become aware of a product's unique characteristics that are superior to the competition

T

some characteristics that propel entrepreneurs into success can be exhibited to such extreme that they become problems. Which of the following is not one of thee problems? a.) resourcefulness b.) need for control c.) optimism d.) desire for success

a

T/F creativity cannot be developed or improved

F

T/F the entrepreneurial spirit is unique to America and Western Europe

F

Which of the following, although not specifically studying entrepreneurship, provided an economic principle that helps us understand why entrepreneurship is important to the overall growth and prosperity of a country's economy? a.) vilfredo pareto b.) jean baptiste say c.) Joseph shumpeter d.) Richard cantillion

a

which of the following is true? a.) the right brain helped people understand analogies and imagine things b.) the right brain helps people analyze and verbalize c.) the left brain helps people understand analogies and imagine things d.) right and left brain concepts are meaningless

a

T/F The word entrepreneur is derived from the French entreprendres, which is translated as "to assume risk".

f

t/f in negotiating a deal to purchase an existing business, it is a bad idea to ask the seller to retain a minority interest in the firm

f

which one is not a national attribute that defines a firm's competitive environment? a.) factor conditions-production inputs and infrastructure b.) demand conditions--in the home market c.) related and supporting industries d.)firm and industry: capital markets e.) institutions f.) households

f

the High Growth entrepreneurial aspiration is also known as the _______ finance and strategy

gazelle

T/F Vilfredo Pareto: 80/20 rules with 20% of the factors to govern 80% of the results

t

T/F generally, the larger and more successful the franchisor, the greater the franchise fee that is charged

t

T/F one reason that corporate entrepreneurship has become popular is because it allows corporations to tap the innovative talents of the personnel

t

T/F one reason that corporate entrepreneurship has become popular is because it allows corporations to tap the innovative talents of the personnel

T

Which of the following best describes the concept of entrepreneurial arbitrage? a.) developing an innovative product that solves a problem for consumers that has previously not been satisfactorily addressed b.) exploring an imbalance between supply and demand by shifting resources from one market or use to another market or use c.) expansion of the economy by an outward shift of the "production possibilities frontier" d.) none of the above describe entrepreneurial arbitrage

b

which of the following terms refers to the systematic evolution of a product or service into a newer or larger markets? a.) strategic management b.) radical innovation c.) incremental innovation d.) collective entrepreneurship

c`

What building block of the business model is describes all costs incurred to operate a business model

cost structure

*Innovation graph of entrepreneurship* Looks like a long sideways S WHICH ONE IF THE NEXT STAGE IN The middle of the graph Capital becomes a substitute for labor and where "productive entrepreneurship" occurs"

efficiency-driven stage

Most of the new jobs from small firms and new ventures come from ______ an extremely fast growing company which maintains consistent expansion of both employment and turnover

gazelles

T/F social entrepreneurs are known to form ventures that exploit opportunities to create social value

t

t/F Richard Cantillion=ARBITRAGE

t

t/f competitive advantage comes from either high perceived value and lower conversion costs

t

T/F firms do not need to alter management techniques to encourage corporate entrepreneurship since it tends to occur naturally

F

T/F the macro view of entrepreneurship looks at factors that are specific to the individual entrepreneur

F

T/F timing has little to do with the success or failure of a new venture

F

*Innovation graph of entrepreneurship* Looks like a long sideways S What is the one at the bottom that is high self-employment but low value added

Factor driven innovation

The opportunity for entrepreneurial innovation emerges from the inersection of a.) unmet needs, potential solutions, and entrepreneurial cognition b.) invention, extension, and duplication c.) knowledge, perseverance, and luck d.) market demand, financial capital, and human capital

a

The process approach to entrepreneurship seeks to a.) explain why and how an individual chooses to purse an opportunity b.) explain the process of obtaining patents c.) explain intrapreneurship d.) explain the process of obtaining venture capital

a

When accounts receivable is bought from a company for capital funding it is called a.) factoring b.) trade credit c.) financing d.) leasing

a

Which of the following is NOT a type of debt financing? a.) private placement b.) trade credit c.) finance companies d.) leasing

a

Which of the following statements is true?> a.) the left brain helps people analyze and verbalize b.) the right brain helps people analyze and verbalize c.) the left brain helps people understand analogies and imagine things d.) right and left brain concpepts are meaningless

a

key resources and key activities (or processes) are two components of a venture's a.) business model b.) customer value proposition c.) revenue streams d.) stakeholder benefits

a

95% of all businesses have fewer than ____ employees

20

Joseph Schumpeter wrote about a process of entrepreneurial innovation that he termed "creative destruction". Which of the following most closely describes the potential economic effect of the types of innovations Schumpeter was talking about? a.) Shifting the production possibilities frontier b.) moving supply and demand towards equilibrium c.) changing the distribution of wealth as described by Pareto's power law d.) entrepreneurial arbitrage

a.) shifting the production possibilities frontier

In assessing a potential start-up opportunity, product/market problems include which of the following? a.) venture capital relationship problems b.) unclear business definition c.) concept of a team approach d.) assuming debt too early

b

Joseph Shumpeter wrote about a process of entrepreneurial innovation that he termed "creative destruction". Which os the following most closely describes the potential economic effect of the types of innovations shumpeter was talking about? a.) entrepreneurial arbitrage b.) shifting the production possibilities c.) changing the distribution of wealth as described by Pareto's power law d.) moving supply and demand toward equilibrium

b

T/F firms do not need to alter management techniques to encourage corporate entrepreneurship since it tends to occur naturall

F

T/F Commitment, determination, and perseverance are the only characteristics one needs to become a successful entrepreneur

F

T/F Equity financing is money invested in the venture with a legal obligation to repay the principal amount with accrued interest

F

Which of the following statements is true of personality traits, cognition, and affect a.) all three tend to vary based on the situation confronting the entrepreneur b.) in combination, they can influence the motivation of the entrepreneur to pursue an opportunity c.) they tend to be very reliable in predicting who will and who will not succeed as an entrepreneur d.) the strength of these three characteristics is determined primarily by heredity

b.) in combination, they can influence the motivation of the entrepreneur to purse an opportunity

The process approach to entrepreneurship seeks to a.) explain the process of obtaining patents b.) model the various factors that characterize the entrepreneurial process c.) explain intapreneurship d.) explain the process of obtaining venture capital

b.) model the variouss factors that characterize the entrepreneurial process

product/market problems include which of the following? a.) venture capital relationship problems b.) unclear business definition c.) concept of team approach d.) assuming debt too early

b.) unclear business definition

Entrepreneurs sense potential in business problems by asking a.) who is to blame for failures b.) what about profits? c.) what if and why not? d.) farfetched, unimaginative questions

c

In attempting to create an entrepreneurial climate, the organization should consider that a.) third party contractors of labor will not be used b.) strict management rules work best c.) the corporations that promote personal growth will attract the best people d.) workers like independence

c

In the most developed economies, capital goods and automation have taken the place of manual labor--or makes it more efficient--and knowledge has become increasingly important. Entrepreneurship in these counties typically contribute to which type of economic growth? a.) factor-driven economic development b.) efficiency driven economic development c.) innovation-driven economic development d.) opportunity-driven entrepreneurship

c

Key elements in plans to create a sustainable future re likely to include which of the following? a.) elimination of the concept conservation b.) elimination of the concept accountability c.) eliminating the concept of waste d.) eliminating the concept of price

c

Which of the following was the first to note the role of entrepreneurs in organizing the "factors of production: and shifting them to more profitable opportunities? a.) Richard cantillion b.) vilgredo pareto c.) jean baptiste say d.) stevenson and carlos

c

the decision to behave entrepreneurially is the result of the interaction of a.) a new market and a new technology b.) the relevant business environment and consumer trends c.) the individual's personal entrepreneurial and mind-set and an opportunity d.) the existence of a viable business idea and availability of startup capital

c

which of the following is not a type of debt financing? a.) leasing b.) trade credit c.) private placement d.) finacne companies

c

Some countries exhibit a lot of entrepreneurial activity, but a high number of the entrepreneurial ventures seem to primarily provide self-employment for the founder. Which stage of economic development typically applies to these countries? a.) efficiency-driven economic development b.) innovation-driven economic development c.) factor-driven economic development d.) opportunity-driven entrepreneurship

c. factor driven

What building block of the business model is describes how a company communicates with and reaches its customer segments to deliver a value proposition

channels

Key resources and key activities (or processes) are two components of a venture's a.) revenue streams b.) customer value proposition c.) stakeholder benefits d.) business model

d

What are the four types of innovation? a.) analysis, synthesis, duplication, retention b.) synthesis, extension, retention, analysis c.) extension, retention, analysis, duplication d.) invention, extension, synthesis, duplication

d

Which of the following was the first to note the role of entrepreneurs in organizing the "factors of production" and shifting them to more profitable opportunities? a) Stevenson & Carlos b) Richard Cantillion c) Vilfredo Pareto d) Jean Baptiste Say

d

as depicted in the process model we discussed in class, which of the following would NOT influence an individual's intention to pursue an entrepreneurial opportunity? a.) educational background b.) personality characteristics c.) perceived self-efficacy d.) all of the above are rationalizations e.) none of the above are rationalizations

d

the opportunity foe entrepreneurial innovation emerges from the intersection a.) market demand, financial capital, and human capital b.) knowledge, perseverance, and luck c.) invention, extension, and duplication d.) unmet needs, potential solutions, and entrepreneurial cognition

d

which of the following may be a rationalization used to justify unethical conduct? a.) the conduct isn't really all that bad--after all its not actually illegal b.) if nobody finds out then no harm is done c.) it is in the firms best interest d.) all of the above are rationalizations

d

What characteristics that trope; entrepreneurs into success can be exhibited to such an "extreme" that it becomes a problem? a.) optimism b.) high energy c.) desire for success d.) perseverance e.) overbearing need for control

e