Exam 1
Which of the following is true about corporate entrepreneurship?
A company must be willing to invest money without a guarantee of a return in the short term
The first step in establishing corporate entrepreneurship in an organization is:
securing commitment from top management`
Having an entrepreneurial orientation towards the control of resources means:
that one focuses on accessing others' resources.
Which of the following is most effective in grief-recovery?
Dual process
One study found that new ventures started within a corporation performed better than those started independently by entrepreneurs.
False
Knowledge is the basis of the entrepreneurial resource.
true
Which group in a professional network helps keep a new venture competitive?
Trade associations
The McMullen-Shepherd Model helps identify the common traits of successful entrepreneurs.
true
The knowledge needed to generate innovation cannot be easily learned from a textbook.
true
Questions designed to increase an entrepreneurs' understanding of the nature of the environment are known as:
Comprehension questions
Which of the following is a liability of newness?
Costs associated with learning new tasks are high.
Entrepreneurial endeavors consist of new business venturing, innovativeness, self-renewal, and reactiveness.
false ( proactivness) different word
Individuals have stronger intentions to act when taking action is perceived to be ________ and desirable.
feasible
dual process
involves the isolation between a loss orientation and restoration orientation
All these are characteristics of an entrepreneurial environment
it uses a multidiscipline teamwork approach, new ideas are encouraged, the organization operates on frontiers of technology.
Motivation to launch a new venture can arise from all of the following except:
lack of prior experience.
Superficial similarities exist when
the basic elements of the technology resemble the basic elements of the market
In Stage Two of the McMullen-Shepherd Model:
the entrepreneur decides whether or not there is an opportunity for him or her personally.
In Stage One of the McMullen-Shepherd Model:
the entrepreneur decides whether or not there is an opportunity for someone.
Density, in regards to a social network, refers to:
the extensiveness of ties between two individuals.
Most managers in a corporation are capable of being successful corporate entrepreneurs with the correct training.
False
The typical corporate culture has a climate and a reward system that favors activist decision making
False
Which of the following is NOT a stage in Kolter's procedure in bringing a product/service to market?
File for patent protection
A broad-scope strategy:
opens the firm up to many different "fronts" of competition.
Demographics, ethnic origin, and marital status are examples of segmentation variables.
True
In 1994 Robert Mondavi came up with:
a capsule-free, flange-top bottle design.
Offering a small product range to a small number of customer groups is:
a narrow-scope strategy.
Market Knowlegde
refers to the entrepreneur's possession of information, technology, know-how, and skills that provide insight into the industry and customers.
Loss-orientation
approach to a negative emotion involves working through and processing the loss and breaking emotional bonds of an object lost
Reflection tasks
are designed to stimulate thought about entrepreneurs' understanding and feelings as they progress through the entrepreneurial process.
The window of opportunity is part of:
assessing the attractiveness of a new entry opportunity
A sufficient time for top management to be committed to corporate entrepreneurship is:
at least three years
When establishing corporate entrepreneurship in an organization rewards should:
be tied to the performance of the entrepreneurial unit created from the idea
A narrow-scope market strategy:
can be thought of as taking a "portfolio" approach to dealing with uncertainties.
By delaying entry, late movers:
can learn from the actions of first movers without incurring the same costs.
On the education background, entrepreneurs:
cite an educational need in the areas of finance, strategic planning, marketing, and management. are less educated than the general population.
The causal process of thinking:
starts with a desired outcome and focuses on the possible means to generate that outcome.
Effectuation Process
starts with what one has (who they are, what they know, and whom they know) and selects among possible outcomes
Robert Mondavi came up with all of the following process innovations:
steel fermentation tanks, vacuum corking of bottles, aging wines in new French oak barrels
Lead time is:
the time in which the first mover operates in the market under conditions of limited competition
A "me-too" strategy consists of copying products that already exist and attempting to build an advantage through minor variations.
true
An entrepreneur with loss-orientation would talk about the business-failure with a close friend or relative.
true
Asking "How is this problem similar to problems I've already solved"? is an example of a connection task.
true
Entrepreneurial opportunities are those situations in which new goods, services, raw materials and organizing methods can be sold at greater than their production cost.
true
STRUCTURAL similairities exsist when
underlying mechanisms of technology resemble the underlying mechanism of the market
Frequent flier miles would be an example of which barrier to entry?
Building in switching costs
Which is NOT a leadership characteristic of a corporate entrepreneur according to the text
Encourages colleagues to follow hierarchy
in regards to the differences between the entrepreneurial and administrative focuses which of the following is correct?
Entrepreneurs rent or sporadically use resources; managers like to own resources
n the loss-orientation process of grief recovery, when are painful memories likely to dominate most?
In the early phase of grief.
New product development falls under which of the four major components of corporate entrepreneurship?
Innovativeness
Which of the following statements is(are) true?
Knowledge based on experience is unlikely to be learned in a classroom.
An entrepreneurial strategy is the set of decisions, actions, and reactions that protect the firm from new entrants.
TRUE
When would an entrepreneur be pronounced to have recovered from the grief of a lost business?
Thoughts about the events surrounding, and leading up to the loss of the business, no longer generate a negative emotional response.
Self-efficacy
Which among the following aspects affects an entrepreneur's perception of feasibility?
An error of omission occurs when an entrepreneur:
decides not to enter a market that is, in fact, desirable.
First movers face:
demand uncertainty.
Bricolage
entreprenuers making do with what they have and applying combination of these resources at hand to new problems or opportunities (repackage, tinker experiement and reframe to find new use)
A disadvantage of being a first mover is:
environmental instability.
When an entrepreneur pursues a new entry opportunity only to find out later that he or she had overestimated his or her ability to create customer demand it is a(n):
error of commission.
In regards to thinking structurally, superficial similarities:
exist when the basic (relatively easy to observe) elements of the technology resemble the basic elements of the market.
Later movers do not face:
high growth markets.
Proactiveness
includes initiative and risk taking, as well as competitive aggressiveness and boldness.
The Four major components of corporate entrepreneurship
self renewal, inovation, proCTIVNESS, CORPORATE VENTURING
Entrepreneurial Opportunities are defined as:
situations in which new goods, services, raw materials and organizing methods can be sold at greater than their production cost. new market entry through entrepreneur action.
Within the moral-support network, most entrepreneurs indicate that their ________ are their biggest supporters.
spouses