Entrepreneurship Ch. 1

Flexibility rewards refer to the money made from owning a business. True/False

False

High-growth ventures differ from small businesses in that in high-growth ventures:

the limitation of growth is dictated by market response rather than the owner's loss of control.

Small businesses differ from high-growth ventures in that in small businesses:

the preferred source of funding is the owner's own money rather than other people's money.

Which of the following is a difference between a small business and a high-growth venture?

A small business grows when necessary, whereas a high-growth venture grows when possible.

If you don't succeed the first time, try, try again. This is called the strategy of self-efficacy True/False

False

Self-employed persons are not referred to as entrepreneurs. True/False

False

Small businesses start small but are intended to grow rapidly, often requiring a team of partners.

False

The disadvantage of the BRIE model is that it does not mention the management of resources. True/False

False

The majority of new firms go through similar startup processes with those most likely to be successful following a four-step process: Finance, Construct, Promote, Demonstrate.

False

Truly entrepreneurial businesses are characterized by imitativeness in their products, services, or business models. True/False

False

A person who becomes an owner by inheriting or getting a stake in a family business is known as _____.

Heir

Which of the following describes the significance of an overall growth strategy?

It represents a driver of the variety of entrepreneurship

Which of the following terms is not one of the four steps in the successful entrepreneurial process? A. Do B. Check C. Seek D. Plan E. All of the above F. None of the above

Seek

High-growth ventures and big businesses generally do not succeed without small businesses offering supporting services. True/False

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/False

True

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

True

Crowdsourcing is the degree of attention your target market pays to your idea or organization.

false

The primary focus of corporate entrepreneurship is creating new civic organizations which are financially self-sufficient.

false

The three most popular types of rewards for small business owners are personal growth, building wealth, and creating products.

false

Small businesses are usually:

imitative in nature.

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

true

Truly entrepreneurial businesses are characterized by: A. the ease with which their product is accepted by the buyers. B. the novelty in their products, services, or business models. C. the franchise they are associated with. D. the degree to which their products are imitative. E. All of the above F. None of the above

the novelty in their products, services, or business models.