MGT-301-CHAPTER 7 HOMEWORK

Which of the following is true of the role of the economic environment in the success of entrepreneurial ventures? 1. A robust economy and the resulting conditions in credit and demand increase the rate of new business formation, but a troubled economy has no effect on new ventures. 2. Entrepreneurial success is not affected by the economic environment as a good idea will prevail in all external conditions. 3. The economic environment affects the success of entrepreneurial ventures by affecting the supply of capital and prospective opportunities. 4. Downturns in the economic environment offer no opportunity for entrepreneurial success. 5. Entrepreneurial success is affected only by the talent and behavior of individuals, not by the economic environment.

3. The economic environment affects the success of entrepreneurial ventures by affecting the supply of capital and prospective opportunities.

Which of the following is a key difference between an entrepreneur and an intrapreneur? 1. An entrepreneur makes use of corporate resources, whereas an intrapreneur does not. 2. An entrepreneur has less knowledge of business, whereas an intrapreneur is more knowledgeable. 3. An entrepreneur works longer and harder, whereas an intrapreneur is laid back and easy going. 4. An entrepreneur receives no corporate support, whereas an intrapreneur has the benefit of corporate support. 5. An entrepreneur has more knowledge of business, whereas an intrapreneur lacks business knowledge.

4. An entrepreneur receives no corporate support, whereas an intrapreneur has the benefit of corporate support.

Who among the following most likely possesses the key characteristics of a successful entrepreneur? 1. Kim feels that she is a born leader and believes that she would make a successful entrepreneur. 2. Marci says that she is very good at gambling and feels that she would make a successful entrepreneur. 3. Han has scored 670 in his SATs and is sure that he would be a successful entrepreneur. 4. Toni is an extremely independent individual and feels that independence should ensure her success as an entrepreneur. 5. Juana is very innovative and knowledgeable and believes that she would be a successful entrepreneur.

5. Juana is very innovative and knowledgeable and believes that she would be a successful entrepreneur.

Legitimacy increases the probability of success of a new business by 1. helping to revise rules and expectations of society. 2. weakening the competition and its ability to operate in the future. 3. reducing the number of resources necessary to start the firm, such as office space, loans, and supplies. 4. eliminating risk from the business plan. 5. helping a firm acquire resources such as top managers and good employees.

5. helping a firm acquire resources such as top managers and good employees.

Which of the following is true about social entrepreneurship? It is similar to corporate social responsibility. It benefits the society but fails to provide economic value. Profit is the key guiding principle. It creates economic value and social benefits simultaneously. It incorporates social values alone in its decision making and mainstream thinking.

It creates economic value and social benefits simultaneously.

Which of the following is a formal planning step that focuses on an entire venture and describes all the elements involved in starting it? a venture capital agreement an organizational assessment a business plan an opportunity analysis a contingency plan

a business plan

Which of the following entrepreneurial businesses is an example of high innovation and high risk? a new dog-walking service an online retail shop a new drug a new restaurant a new hardware store

a new drug

Entrepreneurs can assemble a group of people to help them learn the basics of business and build relationships with bankers, accountants, and attorneys. Such a group is called a(n) skunkworks. advisory board. board of directors. bootlegging committee. business accelerator.

advisory board.

The role of a(n) _____ is to provide a protected environment for new, small businesses. entrepreneurial venture franchise skunkworks business incubator business accelerator

business incubator

Which of the following is one of the five key factors that entrepreneurs are required to have thought through? context promotion place packaging policy

context

Intrapreneurs are otherwise known as corporate entrepreneurs. social entrepreneurs. bootleggers. knowledge workers. horse traders.

corporate entrepreneurs.

Which of the following refers to the tendency of an organization to engage in activities designed to identify and capitalize successfully on opportunities to launch new ventures by entering new or established markets with new or existing goods or services? bootlegging horse trading strategic concentration vertical integration entrepreneurial orientation

entrepreneurial orientation

When an enterprising individual pursues a lucrative opportunity, it is known as bootlegging speculation horse trading entrepreneurship franchising

entrepreneurship

One of the common challenges entrepreneurs face is lack of information. intolerance of uncertainty. opportunity obsession. lack of enjoyment in what they do. their inability to take risks.

lack of enjoyment in what they do.

An entrepreneurial alliance between an innovator who has created at least one successful store and wants to grow and a partner who manages a new store of the same type in a new location is called outsourcing. an intrapreneurial venture. conglomerate diversification. franchising. bootlegging.

franchising

Which of the following provides a way to raise capital through federally registered and underwritten sales of shares in the company? stock option initial public offering future stock sale first bond option commodity sale

initial public offering

Which of the following is an example of an entrepreneurial opportunity categorized under economic dislocations? rising oil prices growing interest in sports strict energy efficiency requirements terrorist attacks natural disasters

rising oil prices

Which of the following refers to project teams designated to produce a new product? knowledge workers horse traders social entrepreneurs skunkworks bootleggers

skunkworks

A(n) _____ differs from an entrepreneurial venture in that it is not managed aggressively, and its owners expect normal, moderate levels of sales, profits, and growth. global venture Internet start-up small business intrapreneurial team speculative venture

small business

Which of the following e-commerce business models brings buyers and sellers together and charges a commission for each sale? the transaction fee model the affiliate model the intermediary model the subscription model the conglomerate model

the intermediary model