Ent 215/315 Test

False

A "champion" is a person with a big ego and just gets in the way of corporate entrepreneurship.

True

A good trait for an entrepreneur is to be a calculated risk taker.

low-profit, limited liability companies

An L3C is a new legal form for social enterprises known as

Canada, China, and Mexico.

As of 2015, the largest U.S. trading partners included

global competition

Bottom-line measures of economic performance include all of the following except:

learn to give way to intrapreneurs.

Bureaucrats in an organization must

True

Creative people thrive in an uncertain environment and find it exhilarating.

False

Employees shouldn't expect feedback on their entrepreneurial ideas.

aggressive catalysts for change

Entrepreneurs are best characterized as:

free enterprise and capitalism

Entrepreneurship has become synonymous or closely linked with:

support for minority-own businesses.

Examples of social enterprise obligations to the environment include all of the following except

False

Expecting clever bootlegging of ideas should come as a surprise.

False

Firms do not need to alter management techniques to encourage corporate entrepreneurship since it tends to occur naturally.

True

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

True

Innovation should follow a milestone schedule

True

Innovative activity should be rewarded

True

Innovators must always search for new ideas, opportunities, or sources of innovation

False

It is not uncommon for a buyer to be faced with a franchise fee of $250,000 to $1,000,000.

True

Role distortion deals with morally questionable acts that are committed "for the firm."

bootlegging

Secretly working on new ideas on company time as well as on personal time is referred to as

True

Synthesis is the combining of two existing concepts into a new formulation

False

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

involves including qualified people in the venture.

Team building

False

The 'learn' stage of the Build-Measure-Learn feedback loop is a process in which one learns by trying out an initial idea and then measuring it to validate the effect.

True

The Brundtland definition of sustainable development is "meeting the needs of the present without compromising the ability of future generations to meet their needs."

True

The contemporary thrust of entrepreneurship as the major force in global business has led to a desire for entrepreneurial activity inside enterprises.

economic, cultural, and political

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

False

The innovation process involves only the development of a good idea

True

The maverick entrepreneur who avoids reaching out and finding help is a myth of the past.

model the various factors that characterize the entrepreneurial process.

The process approach to entrepreneurship seeks to

developing and encouraging innovation.

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

False

The sources of new business ideas among men and women are identical in type and proportion.

True

The success of corporate entrepreneurship depends on the entrepreneurs within the firm.

prestart-up, start-up, poststart-up.

Three specific phases that a new venture goes through are

Marketing

Timing is especially critical in which area?

True

Uniqueness in a product or service can be demonstrated through a new-new approach or a new-old approach.

using less debt as initial financing and generating revenue in the initial stages.

Using the failure prediction model discussed in the chapter, the risk of failure can be reduced by:

High-Growth Ventures

Venture classifications include which of the following types of venture?

niche consumables

What is not considered an emerging Internet opportunity?​

financial risks

What type of risks incorporates fluctuating exchange rates?

Price

When a customer sees a product that is superior to its competitors, ______ becomes less important.

the allowance of others to believe in them during rough periods.

When an entrepreneur becomes an external optimist, what does that mean?

Entrepreneurship is the ability to create and build a vision from practically nothing.

Which of the following statements is true?

Shaker A. Zahra

____________ observed that "corporate entrepreneurship may be formal or informal activities aimed at creating new businesses in established companies through product and process innovations and market developments."

trustful management that does not exert strict control over employees

Creativity is most likely to occur when the "climate" is right. What is a characteristic of that climate in the workplace

True

Failure to anticipate the technical difficulties related to developing or producing a product can sink a new venture.

True

Firms need to be public about their ethical values and expectations.

objectivity

Many entrepreneurs lack_________ for their new venture.

True

The Franchise Disclosure Document (FDD) is a legally required disclosure document that must be presented to potential franchisees during presale discussions.

True

The most important area to examine prior to purchasing a business is company profitability.

True

The strategic formulation school of thought emphasizes the planning process in successful venture development.

True

An innovative team or I-Team, is composed of two or more people who formally create and share ownership of a new organization.

good

In a growing industry, _____ companies do even better.

greater the risk.

In starting or buying a new business, the higher the rewards, the

True

Morals and law are not synonymous but may be viewed as two circles that are partially superimposed upon each other.

simple and focused

Most successful innovations are

False

Much franchise litigation has arisen over termination of owners.

J. Gregory Dees

One researcher believes that the social mission, not wealth creation, is the most important criterion. Who was this researcher?

incongruities

Overnight package delivery is illustrative of which source of innovation?

True

Perhaps the greatest advantage of buying a franchise, as compared to starting a new business or buying an existing one, is that the franchisor will usually provide both training and guidance to the franchisee.

True

Political, cultural, and economic displacement are all part of the displacement school of entrepreneurial thought.

False

The Federal Trade Commission does not provide information on franchise success.

Synthesis

The combination of existing concepts and factors into a new formulation would define which of the following terms?

the corridor principle.

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

Richard Cantillon

Which economist first associated the "risk bearing" activity in the economy with the entrepreneur?

failure

With psychic risk you fear

True

Some of the most common entrepreneurial goals are independence, wealth, and work satisfaction.

True

Problems can arise when people believe that laws represent morality.

vision directed.

Corporate entrepreneurial strategy should be thought of as

False

Gazelles produce half the innovations per employee that larger firms typically do.

True

Gazelles produced 5 million jobs despite the continual downsizing in major corporations over the last decade.

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

Generally, entrepreneurial stress is due to

True

Generally, the larger and more successful the franchisor, the greater the franchise fee that is charged.

True

In a lifestyle venture, independence, autonomy, and control are the primary driving forces.

True

In negotiating a deal to purchase an existing business, it is possible to request that the seller retain a minority interest in the firm.

False

Large firms, as opposed to entrepreneurs, are the aggressive catalyst for change in the world of business.

by perceiving in a relational mode

Looking for different or unorthodox relationships among elements and people is one way to develop creativity. How might a person develop this capacity

general economic trends and competitor data

Market feasibility analysis relies on

False

Mistakes and failures along the way are to be seen as poor planning and actually hinders the design methodology.

Specific

Researchers believe that design methodology provides ________ learning mechanisms important for converting ideas into form.

True

In past generations, people dreamed of prestige and perks associated with executive suites of major corporations, but the millennial generation believes that career success requires them to be more nimble, independent, and entrepreneurial.

foreign reclamation

Methods for going international include all of the following except

True

Social obligation, social responsibility, and social responsiveness are all ways firms view their interactions with society.

They do not use failure as a tool for learning.

Which of the following is a false statement about entrepreneurs?

True

The macro view of entrepreneurship includes external processes that are sometimes beyond the control of the entrepreneur.

False

The need for corporate entrepreneurship has risen in response to one problem: rapid growth.

interdisciplinary

The study of entrepreneurship is

False

The term risk versus loss refers to the amount of return for funds invested.

False

The triple bottom line is an accounting framework that focuses on optimizing short-term financial performance.

True

When purchasing an existing business, the prospective owner should conduct an assessment of the business's current group of employees

a big increase in earnings

Which is not a precipitating event that Zahra identifies as motivating the decision to act entrepreneurially?

Profile Analysis

Which of the following is a tool that enables entrepreneurs to judge a business venture's potential?

People are either born or not born with creativity.

Which of the following is not a true statement regarding arenas of creativity?

bouts of euphoria

Which of the following is not an aspect of the "dark side" of entrepreneurship?

Creative ideas never come out of the blue.

Which of the following statements is not true?

True

In purchasing an existing business the first question should be: "Why are you selling?"

True

In smaller ventures, the ethical influence of the owner is more powerful than in larger corporations because his or her leadership is not diffused through layers of management.

entrepreneurship

In the evolutionary process of economic growth, _________ plays the crucial and indispensable role of providing the "social glue" that binds together both high-tech and "Main Street" activities.

working on something else

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

True

It is always important that you weigh advantages against disadvantages in purchasing a franchise.