Introduction to Entrepreneurship; Chapter 6; Assignments

The entrepreneurial motivations of individuals relate to the entrepreneur, the environment, and the venture. a. True b. False

a. True

Which of the following is critical to a product's success? a. timing b. marketing approach c. objectivity d. all of these

d. all of these

Which of the following is a factor contributing to new-venture failure? a. product/market problems. b. family issues. c. personality clashes. d. good management/poor product.

a. product/market problems.

Check My Work Inflated owner ego, employee-related concerns, control factors and interpersonal problems are factors involved in which of the following causes for venture failure? a. product/market problems b. managerial problems c. financial difficulties d. distribution problems

b. managerial problems

New venture legitimacy is a major challenge for every entrepreneurial start-up. a. True b. False

a. True

Check My Work Many entrepreneurs lack _____ for their new venture. a. innovation b. intelligence c. objectivity d. commitment

c. objectivity

Feasibility analysis includes technical, market, financial, organizational, and competitive analysis. a. True b. False

a. True

Obtaining external financing is considered one of the major types of problems for a new venture during its first year. a. True b. False

a. True

Solid analysis and evaluation of the feasibility of the product/service idea are critical tasks in starting a new business. a. True b. False

a. True

Venture classifications include which of the following types of venture? a. hobby ventures b. smaller copycat ventures c. high-growth ventures d. survival ventures

c. high-growth ventures

Check My Work Which of the following learning mechanisms are important for converting ideas into form in design methodology? a. feedback b. prototyping c. qualitative research d. all of these

d. all of these

An approach developed as a criteria selection list from which entrepreneurs can gain insights into the viability of their venture is the a. feasibility criteria approach. b. time-essence of a venture approach. c. marketability feasibility approach. d. comprehensive feasibility approach.

a. feasibility criteria approach.

A common pitfall in selecting a new venture is a. poor financial understanding. b. proper objective evaluation. c. real insight into the market. d. none of these.

a. poor financial understanding.

Check My Work Three specific phases that a new venture goes through are a. prestart-up, start-up, poststart-up. b. start-up, poststart-up, evaluation. c. beginning start-up, start-up, ending start-up. d. prestart-up, start-up, evaluation.

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

The basic suggested venture legitimation strategies include which of the following: a. conformance b. manipulation c. creation d. all of these

d. all of these

The entrepreneurial motivations of individuals usually relate to which of the following factors? a. the environment b. the entrepreneur c. the venture d. all of these

d. all of these

Using the failure prediction model discussed in the chapter, the risk of failure can be reduced by: a. using less debt as initial financing and generating revenue in the initial stages. b. using more debt as initial financing and generating less revenue in the initial stages. c. using more revenue to enhance more debt in the initial stage. d. all of these.

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

Most entrepreneurs are objective when they evaluate their new idea. a. True b. False

b. False

Most entrepreneurs are well schooled in the technology associated with their ventures. a. True b. False

b. False

Surprisingly, growth of sales is generally not considered a critical factor in assessing new ventures. a. True b. False

b. False

The decision of an entrepreneur to ignore the market is a safe one if he or she is sure that the idea will be a success. a. True b. False

b. False

There is a great abundance of reliable data concerning the start-up, performance, and failure of new ventures. a. True b. False

b. False

Check My Work The type of venture that is expected to attract venture capital would most likely be a a. corporate venture. b. high-growth venture. c. lifestyle venture. d. smaller venture.

b. high-growth venture.

Poor financial understanding is characterized by which of the following? a. failure to anticipate technical difficulties b. inadequate understanding of costs and funding requirements c. failure to realize the life cycle of a product d. lack of product differentiation

b. inadequate understanding of costs and funding requirements

Which of the following critical factors in the prestart-up and start-up phases considers whether the venture should be classified as lifestyle, small profitable or high-growth? a. uniqueness b. investment c. growth of sales d. product availability

c. growth of sales