Chapters 5-8 Exam

There are a variety of criteria that venture capitalists use to evaluate new venture proposals. How many factors were developed by Dean A Shepherd?

8

Which of the following statements is true?

Creative ideas sometimes appear out of the blue.

_________ places a burden on the entrepreneur of loan repayment with interest, whereas equity financing forces the entrepreneur to relinquish some degree of control.

Debt

_________ is the operative word in the venture capitalist world.

Execution

According to __________, there are over 7000 business accelerators today.

InBIA

______ recognition is the progenitor of both personal and societal wealth.

Opportunity

An informal risk capitalist is referred to as

a business angel.

Most innovations result from

a conscious and purposeful search for new opportunities.

Each pathway to a new venture represents a particular form of _____.

entry

Usually, incubators do not require_________ in the new venture in return for access to the resources.

equity

Innovation does not guarantee success. More important, ____________often give rise to innovations.

failures

The greater the competition, the less the business's chance of __________________.

going bankrupt

Potential entrepreneurs need to realize that _____________ principles exist.

innovation

According to the text, no product is ____________.

instantaneously profitable

According to the text, business is subject to many _______ requirements.

legal

A lack of ___________ is a crippling problem, particularly for new ventures within an entrepreneurial ecosystem that develop a radical new technology or seek to disrupt a market by creating a new category.

legitimacy

Venture capitalists often measure the venture based on both the product/service and the __________.

management

Venture capitalists often refer to process needs in the marketplace as "________" and to innovative solutions to these needs as "painkillers."

pain

Innovation newness—technology newness and/or market newness—is linked with the level of innovation newness—incremental versus _____ innovations—to classify the overall "newness" of an innovation within an entrepreneurial venture.

radical

Which of the following is an example of an intangible asset?

reputation

A study found that entrepreneurs' success with acquiring funding is related to four general categories. Which of the following is one of those categories?

sources of advice

With regard to successful ventures, general management problems were frequently cited in the _______________.

start-up stage

Which of the following can cause an individual to act on the basis of a distorted picture of reality?

stereotypes

Different audiences have differing norms, beliefs, rules, and procedures for assessing a _____________.

venture

Entrepreneurs sense potential in business problems by asking

what if and why not?

In the incubation process, ways of getting away from a problem include

working on something else.

Researchers have described a "fully developed new firm" with a number of characteristics, including

full-time commitment.

Using a checklist to identify the critical factors of a new venture is often too _______.

general

For marketing feasibility analysis, general sources would include a variety of sources, including

general economic trends, market data, pricing data, and competitive data.

Innovators should not attempt a project or development on a ___________ scale.

grandiose

In ______________, significant sales and profit growth are expected to the extent that it may be possible to attract venture capital money and funds raised through public or private placements.

high-growth ventures

Every prospective entrepreneur wants to know the best methods for getting a business _______.

started

An organization that offers a range of support services and funding opportunities for new ventures is called a(n)

business accelerator

A _____________ is an entity that helps new ventures develop by providing services such as management training and office space.

business incubator

Once an entrepreneurial team has formed, the importance of ___________cannot be overemphasized.

collaboration

Researcher William Miller suggests that the path to creativity begins by first recognizing all of the ways in which we are or can be ___________.

creative

In comparison to the SEC's Regulation D, __________appears to be a much tougher approach to funding.

crowdfunding

It has been reported that the ratio of failure for small enterprises in general to franchised businesses may be as high as _______________.

four to one or five to one

In what types of ventures do venture capitalists especially add value beyond the money they supply?

high-innovation

Rules 505 and 506, Regulation D uses the term __________purchaser.

accredited

The term __________ likely emerged from the American cowboy.

bootstrapping

According to the text, _______________ is subject to many legal requirements.

business

According to the World Bank, crowdfunding is predicted to account for over __________billion in cumulative transactions by 2030.

300

When considering if a company owns the building, a potential entrepreneur is focusing on which key question to ask when considering buying that ongoing venture?

The physical condition of the business

No enterprise will have creative owners and managers for long if the right ________ is not established and nurtured.

climate

Researchers Alexander S. Kier and Jeffery S. McMullen have shown that teams with similar imaginativeness profiles are stronger in the __________process.

ideation

One of the external problems new ventures face is ________.

market knowledge.

Timing is especially critical in ________.

marketing

The selection and promotion of employees on the basis of ____________is an important characteristic of creating the right climate for creativity.

merit

Innovative activity should be rewarded and given the proper amount of __________.

respect