session 2
Which of the following statements is true?
Both sides of the brain are important to the creative process.
The four phases in the creative process in order are
background or knowledge accumulation, incubation, idea experience, and evaluation and implementation.
Which of the following is an entity that helps new ventures to develop by providing services such as management training and office space?
business incubator
Franchisees have the option of whether to use the logo and symbols of the franchisor. (T/F)
false the franchisor provides the identifying symbols, logos, designs, and facilities, the franchisor generally exercises a fair amount of franchisor control over the operation in order to achieve a degree of uniformity
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?
growth of sales
Poor financial understanding is characterized by which of the following?
inadequate understanding of costs and funding requirements
If we accept the argument that social entrepreneurship is a continuum, at one extreme would be social entrepreneurs driven exclusively by producing social benefits; at the other, would be
social entrepreneurs motivated by profitability with social benefits being the means.
Which of the following four factors is not included in the Social Corporate Entrepreneurship Scale (SCES) developed by researchers?
social intention
Social entrepreneurs can also be referred to as all of the following except
social obligators
New venture legitimacy is a major challenge for every entrepreneurial start-up. (T/F)
true
The elimination of time and effort associated with starting a company is an advantage of acquiring an ongoing venture. (T/F)
true
The first of five steps for entering the international marketplace is
conducting research
Most entrepreneurs are well-schooled in the technology associated with their ventures. (T/F)
false
Successful global start-ups, or entrepreneurial businesses that are "born global," surprisingly often lack internationally experienced management. (T/F)
false they include experienced management
The type of venture that is expected to attract venture capital would most likely be a
high-growth venture
b. inadequate understanding of costs and funding requirements
high-growth ventures
Researchers developed a "Newness Framework" to help depict the differing dimensions of newness that ventures could exhibit, which include which of the following dimensions:
technology newness
When purchasing an existing business, the prospective owner should conduct an assessment of the business's current group of employees. (T/F)
true
The phase of the creative process when the idea or solution the individual is seeking is discovered is the
idea experience
Overnight package delivery is illustrative of which source of innovation?
incongruities
Incongruities are gaps or differences between expectations and reality. (T/F)
true
Obtaining external financing is considered one of the major types of problems for a new venture during its first year. (T/F)
true
Purpose, accountability, and transparency are characteristics associated with socially sustainable enterprises. (T/F)
true
Social entrepreneurs are known to combine resources to exploit opportunities to create social value. (T/F)
true
Solid analysis and evaluation of the feasibility of the product/service idea are critical tasks in starting a new business. (T/F)
true
The left hemisphere of the brain is responsible for logical and analytical skills. (T/F)
true
The three Ps of the triple bottom line are people, planet, and profits. (T/F)
true
Uniqueness in a product or service can be demonstrated through a new-new approach or a new-old approach. (T/F)
true
Social entrepreneurs and their ventures are driven by social goals and aim to increase social value in order to contribute to the welfare or well-being in a given community. (T/F)
true
The entrepreneurial motivations of individuals relate to the entrepreneur, the environment, and the venture. (T/F)
true
The four basic types of innovation are invention, extension, duplication, and synthesis. (T/F)
true
The four phases of the creative process are knowledge accumulation, incubation, idea experience, and evaluation. (T/F)
true
The prospective investor should get as much information as possible on the franchisor. (T/F)
true
The social entrepreneurship process begins with a perceived social opportunity translated into an enterprise concept. (T/F)
true
The terms upside gain and downside loss refer to the profits the business can make and the losses it can suffer. (T/F)
true
Which of the following statements is true?
Innovation is the specific function of entrepreneurship.
Which of the following statements about social entrepreneurship is not true?
Social entrepreneurship is limited to the world of not-for-profit corporations.
Which of the following statements is true?
The right brain helps people understand analogies and imagine things.
Which of the following is not a key question a prospective buyer needs to ask in buying a business?
What is the owners personal networth?
An agreement not to compete is also known as
a legal restraint of trade
Corporate social responsibility refers to
actions that further some social good beyond the interests of the firm.
When should a potential franchisee receive the FDD (Franchise Disclosure Document)?
at least ten days before signing a contract or paying any money
Most entrepreneurs are objective when they evaluate their new idea. (T/F)
false
International alliances rarely require the exchange of proprietary knowledge. (T/F)
false they usually do require exchange of knowledge/ contacts agreements
An approach developed as a criteria selection list from which entrepreneurs can gain insights into the viability of their venture is the
feasibility criteria approach.
Methods for going international include all of the following except
foreign reclamation
A _____ is a system of distribution that enables a supplier to arrange for a dealer to handle a specific product or service under certain mutually agreed upon conditions.
franchise
The individual who buys the franchise is the
franchisee
Bottom-line measures of economic performance include all of the following except:
global competition
Which of the following is an intangible asset?
goodwill
Which of the following is critical to a product's success?
timing marketing approach objectivity
Synthesis is the combining of existing concepts into a new formulation. (T/F)
true
Using the failure prediction model discussed in the chapter, the risk of failure can be reduced by:
using less debt as initial financing and generating revenue in the initial stages.
Three specific phases that a new venture goes through are
pre start up start up post start up
Which of the following is NOT one of the phases in the creative process?
preliminary investigation
Which of the following is not a type of debt financing?
private placement
Which of the following is a factor contributing to new-venture failure?
product/market problems
An advantage to buying an ongoing business is
reduced concern over future operations. time and effort are reduced. it may be purchased at a bargain price.
A disadvantage of debt financing is
regular interest payments
The social entrepreneur aims to increase which of the following?
social value
An account framework that goes beyond the traditional measures of profit, return on investment, and shareholder value to include environmental and social dimensions is called
triple bottom line
Creativity, in the entrepreneurial context, is the generation of ideas that result in the improved efficiency or effectiveness of a system. (T/F)
true
Ecopreneurship is a combination of ecologically and economically sustainable development. (T/F)
true
Feasibility analysis includes technical, market, financial, organizational, and competitive analysis. (T/F)
true
In negotiating a deal to purchase an existing business, it is possible to request that the seller retain a minority interest in the firm. (T/F)
true
Licensing agreements can involve patents, trademarks, and technical know-how. (T/F)
true
Many inventions and innovations are a result of inventors seeing new and different relationships among objects, processes, materials, technologies, and people. (T/F)
true
Green entrepreneurship is concerned
turning ecologically sustainable development into economically sustainable development.
Which of the following are sources of innovation?
unexpected occurrences and incongruities
The most common source of debt financing is
commercial banks
Surprisingly, growth of sales is generally not considered a critical factor in assessing new ventures. (T/F)
false
An additional consideration to keep in mind when negotiating to purchase an existing business includes requesting that the seller retain _____ in the firm.
minority interest
Many entrepreneurs lack _____ for their new venture.
objectivity
Examples of social enterprise obligations to the environment include all of the following except
support for minority-own businesses
The combination of existing concepts and factors into a new formulation would define which of the following terms?
synthesis
Who must negotiate a final deal to purchase a business?
the potential buyer
Among the advantages for global entrepreneurs of diaspora networks are
the speed with which information flows across borders.
One of the most helpful avenues for developing one's own creative talents is to be aware of the habits and mental blocks that stifle creativity. (T/F)
true
Perhaps the greatest advantage of buying a franchise, as compared to starting a new business or buying an existing one, is that the franchisor will usually provide both training and guidance to the franchisee. (T/F)
true
Looking for different or unorthodox relationships among elements and people is one way to develop creativity. How might a person develop this capacity?
by perceiving in a relational mode
Which of the following mental habits inhibit creativity and innovation?
either/or thinking, stereotyping
Key elements in plans to create a sustainable future are likely to include which of the following?
eliminating the concept of waste
The social and economic environment affecting the local and regional entrepreneurship is now commonly referred to as:
entrepreneurial ecosystem
The cognitive ability of entrepreneurs to acquire and transform information has yet to be studied. (T/F)
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. (T/F)
false
There is a great abundance of reliable data concerning the start-up, performance, and failure of new ventures. (T/F)
false
The triple bottom line is an accounting framework that focuses on optimizing short-term financial performance. (T/F)
false it goes beyond the traditional measures of profit, return on investment, and shareholder value to include environmental and social dimensions
What are the four types of innovation?
invention, extension, synthesis, duplication
Logical and analytical skills are developed in the
left hemisphere of the brain
The incubation process involves which of the following?
letting the subconscious work
One of the advantages of public offerings is
liquidity
An L3C is a new legal form for social enterprises known as
low-profit, limited liability companies
The main objective of Regulation D is to
make it easier and less expensive for small ventures to sell stock
Inflated owner ego, employee-related concerns, control factors and interpersonal problems are factors involved in which of the following causes for venture failure?
managerial problems
When one designs a unique good or service, the individual is said to have used a(n) _____ approach to starting the business.
new-new
A common pitfall in selecting a new venture is
poor financial understanding
Innovation is the process by which entrepreneurs convert opportunities into marketable ideas. (T/F)
true
