ENT 241 TRUE OR FALSE

Customers always embrace change in products and services. ⊚ true ⊚ false

F

Entrepreneurial action can be defined as times when entrepreneurs make do with resources at hand, applying those resources to new problems or opportunities. ⊚ true ⊚ false

F

Entrepreneurially run firms are driven by controlled resources whereas traditionally managed firms are driven by perception of opportunity. ⊚ true ⊚ false

F

Environmental changes are highly unlikely in emerging industries. ⊚ true ⊚ false

F

In reverse brainstorming the focus is on all the things that are right about an idea. ⊚ true ⊚ false

F

International joint ventures are decreasing in popularity. ⊚ true ⊚ false

F

One study found that new ventures started within a corporation performed better than those started independently by entrepreneurs. ⊚ true ⊚ false

F

The big-dream approach is a branch of brainstorming where the group is asked to dream big with no constraints. ⊚ true ⊚ false

F

The entrepreneur should always design and build his own webpage to maintain strategic control. ⊚ true ⊚ false

F

To truly understand the impact of a resource, you need to consider the resource itself rather than the firm's bundle or resources. ⊚ true ⊚ false

F

When an entrepreneur bootstraps the purchase of a company, none of the price of the acquisition is cash . ⊚ true ⊚ false

F

When developing an entrepreneurial culture, an organization needs to develop ways to become closer to its customers. ⊚ true ⊚ false

T

A "me-too" strategy consists of copying products that already exist and attempting to build an advantage through minor variations. ⊚ true ⊚ false

T

A joint venture is a separate entity that involves a partnership between two or more active participants . ⊚ true ⊚ false

T

A new entry can be either offering a new product to a new market or creating a new organization. ⊚ true ⊚ false

T

A new franchisee can be expected to be required to undergo considerable training on operating the business. ⊚ true ⊚ false

T

An acquisition is the purchase of a company, or part of a company, in which the acquired company ceases to exist independently. ⊚ true ⊚ false

T

An entrepreneurial strategy has three key stages—the generation of a new entry opportunity, the exploitation of a new entry opportunity, and a feedback loop back to the first stage. ⊚ true ⊚ false

T

Brainstorming is an unstructured process used for generating possible ideas about a problem within a limited time frame through the spontaneous contributions of participants. ⊚ true ⊚ false

T

Brainwriting is a written form of brainstorming. ⊚ true ⊚ false

T

Bricolage is entrepreneurs making do by applying combinations of the resources at hand to new problems and opportunities. ⊚ true ⊚ false

T

By understanding more about the other party, the entrepreneur has a greater opportunity to achieve integration in negotiation. ⊚ true ⊚ false

T

Comprehension questions are designed to stimulate entrepreneurs to think about their own understanding of the nature of the environment. ⊚ true ⊚ false

T

Corporate entrepreneurship is most strongly reflected in entrepreneurial activities as well as in top management orientations in organizations. ⊚ true ⊚ false

T

Creativity tends to decrease with age, education, lack of use, and bureaucracy . ⊚ true ⊚ false

T

Cultural differences between international joint venture partners can create management difficulties. ⊚ true ⊚ false

T

Developing a spirit of entrepreneurship within the existing organization, called corporate entrepreneurship, can lower resistance to flexibility, growth, and diversification. ⊚ true ⊚ false

T

Dissatisfaction with various aspects of one's job often motivates the launching of a new venture. ⊚ true ⊚ false

T

Entrepreneurial opportunities are those situations in which new goods, services, raw materials and organizing methods can be sold for financial or non-financial gain of the entrepreneur and/or other stakeholders. ⊚ true ⊚ false

T

Entrepreneurially managed firm structure is usually flat with multiple informal networks. ⊚ true ⊚ false

T

Entrepreneurs focus on how to minimize resources needed whereas traditional firms focus on accumulating resources. ⊚ true ⊚ false

T

Experience is idiosyncratic—unique to the life of the individual. ⊚ true ⊚ false

T

Growing a venture through franchising allows the venture to expand quickly using little capital. ⊚ true ⊚ false

T

In creating a culture for corporate entrepreneurship leadership is important. ⊚ true ⊚ false

T

Knowledge is the basis of the entrepreneurial resource. ⊚ true ⊚ false

T

Most entrepreneurs indicate that their most significant venture was not their first one. ⊚ true ⊚ false

T

Negotiating how the benefits of the relationship will be allocated between the parties is known as the distribution task. ⊚ true ⊚ false

T

New products may be classified from the viewpoint of either the consumer or the firm. ⊚ true ⊚ false

T

One advantage of franchising is that the entrepreneur usually enters into a business that has an accepted name and product. ⊚ true ⊚ false

T

One advantage to an acquisition is that there is an established customer base. ⊚ true ⊚ false

T

Perceived desirability refers to the degree to which an individual has a favorable or unfavorable evaluation of the potential entrepreneurial outcomes. ⊚ true ⊚ false

T

Terminating a franchise results in more lawsuits than any other issue in franchising. ⊚ true ⊚ false

T

The bargaining zone is the range of outcomes between the entrepreneur's reservation price and the reservation price of the other party. ⊚ true ⊚ false

T

The collective notebook method involves members recording their ideas at least once a day for about a week . ⊚ true ⊚ false

T

The entrepreneur's ability to recognize a business opportunity is a result of his or her knowledge and experience. ⊚ true ⊚ false

T

Traditionally managed firms typically punish failure. ⊚ true ⊚ false

T