ENt 241 Midterm Study Guide
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
An entrepreneur hired others to handle front end activities, while the entrepreneur handled all back end activities. This is an example of
A hybrid approach
Focus groups use which of the following methods?
A moderator leads the group in an open, in-depth discussion.
An entrepreneur considering if what they are doing makes sense is an example of
A reflection task
Creative synthesis is an important aspect of the ________ method of creative problem solving.
parameter analysis
__________ includes initiative and risk taking, as well as competitive aggressiveness and boldness.
proactiveness
In which stage of the product planning and development process would it be appropriate to give product samples to a panel of potential customers?
product development stage
The ____________ is defined as the stages each product goes through from introduction to decline.
product life cycle
The first step in establishing corporate entrepreneurship in an organization is
securing commitment from top management
Which among the following aspects most affects an entrepreneur's perception of feasibility?
self-efficacy
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.
The casual process of thinking
starts with a desired outcome and focuses on the possible means to generate that outcome.
In the idea stage of the product planning and development process
systematic market evaluation is used.
The stage in the product planning and development process in which actual sales results are available is the
test marketing stage
Having an entrepreneurial orientation toward the control of resources means
that one focuses on accessing others' resources.
Entrepreneurial culture and growth orientation consists of all of the following except
the desire to grow at a slow and controlled pace.
The largest source of new product ideas is
the entrepreneur's research and development.
Density, in regards to a social network, refers to
the extensiveness of ties between two individuals.
Reverse brainstorming is much like brainstorming except that
the process usually involves identification of everything wrong with an idea.
All these are characteristics of an entrepreneurial environment except
there are short term horizons
Patents filed with the lIS. Patent Oftice
trequently suggest other new products.
A young manager recognizes inflexibility in both staffing and production, slowing growth and loss of competitive advantage. This manger should encourage upper management to begin developing _________within the company.
An entrepreneurial orientation
A sufficient time for top management to be committed to corporate entrepreneurship is
At least three years
This problem-solving method requires the entrepreneur to list the properties of an item or problem and then look at each from a variety of viewpoints
Attribute listing
Which of the following is defined as having some disruptive influence on established consumption patterns?
Dynamically continuous innovations
Which of the following is not a leadership characteristic of a corporate entrepreneur according to the text?
Encourages colleagues to follow hierarchy
With regard 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
All of the following statements are true of sustainable entrepreneurship except
Entrepreneurs with a positive attitude toward the natural environment never disengage these values to exploit an opportunity.
With regard to thinking structurally superficial similarities
Exist when the basic elements of the technology resemble the basic elements of the market
A reflection task would involve thinking about what strategies should be used to solve a problem.
False
An entrepreneur is rarely able to start a new business without some form of formal education.
False
An online company's front-end operations involve integration of customer orders with distribution channels.
False
Brainwriting is another term for brainstorming, they are exactly the same except there is no leader in brainwriting.
False
Developing a new idea through a chain of word associations is known as the checklist method
False
Entrepreneurial action can be defined as times when entrepreneurs make do with resources at hand, applying those resources to new problems or opportunities.
False
Entrepreneurially run firms are driven by controlled resources whereas traditionally managed firms are driven by perception of opportunity
False
Entrepreneurs are unable to carefully assess each and every innovative idea and opportunity.
False
Entrepreneurs should establish a method for monitoring and evaluating competitive products/services on the market, but should not worry about potential customers, instead focusing on current customers.
False
Focus groups consist of 15 to 25 participants in a loosely structured, freewheeling atmosphere.
False
In encouraging a culture for corporate entrepreneurship, using older, proven, technology is recommended in order to increase stability in the organization.
False
In reverse brainstorming the focus is on all the things that are right about an idea.
False
In the test market stage of product planning, the refined product idea is tested to determine customer acceptance
False
Most managers in a corporation are capable of being successful corporate entrepreneurs with the correct training.
False
Most of the ideas generated by a brainstorming group progress into further development.
False
One evaluation method successfully used in the concept stage is the systematic market evaluation checklist.
False
Organizations that require a rapid retur on investment and a high sales volume usually encourage and support new ideas
False
Promising new product/service ideas should be identified and impractical ones eliminated in the concept stage.
False
Results from product inventory analysis need minimal evaluation as they most likely reflect a new business opportunity.
False
Reverse brainstorming is the same as brainstorming, except criticism is not allowed in reverse brainstorming.
False
Role models are individuals who give psychological support to the entrepreneur especially during the start-up phase.
False
Strategic orientation refers to the transformation of an organization through the rejuvenation of the key ideas on which it is built.
False
Strategic tasks stimulate the entrepreneur to compare the current situation with previous similar situations.
False
Sustainable entrepreneurship provides only environmental gains for others.
False
The casual process of thinking starts with what one has and selects among possible outcomes.
False
The drawback with problem inventory analysis is that it is not effective in relating known products to suggested problems.
False
The entrepreneur should always design and build his own webpage to maintain strategic control.
False
The entrepreneurial challenge often lies in making creative mental leaps based on superficial similarities.
False
The files of the U.S. Patent Office are kept confidential and entrepreneurs cannot study their contents.
False
The largest source of new ideas is the U.S. Patent Office.
False
The only e-commerce channel is a website.
False
Traditionally managed firms commitment to opportunity is revolutionary with a long duration.
False
Individuals have stronger intentions to act when taking action is perceived to be ____________and desirable.
Feasible
In the _______method, a word is written down, then another, creating a chain of ideas.
Free association
The Occupational Safety and Health Act (OSHA) mandated that first-aid kits he available in business establishments employing more than three people. A newly formed company was successful in developing first-aid kits that allowed companies to comply with the standards of the act. This is an example of
Government regulations as a source for new product ideas
Which of the following answer options is not an example of a front end activity?
IT infrastructure
In what stage would you use the systematic market evaluation checklist?
Idea stage
Which of the following is true?
Independent, venture-capital-based start-ups by entrepreneurs tend to outperform corporate start-ups significantly.
New product development falls under which of the four major components of corporate entrepreneurship?
Innovativeness
Which of the following is not one of the reasons cited for the failure of new ventures started within a corporation?
Lack of resources
Which of the following statements is nor true of the loss orientation approach to negative emotions?
Loss orientation is based on both avoidance and proactiveness.
Entrepreneurial activities that create something new of value either by redefining the company's current products or services, developing new markets, or forming more formally autonomous or semiautonomous units or firms best defines
New business venturing
Which of the following statements is true?
Potential entrepreneurs should establish a formal method for monitoring and evaluating competitive products and services on the market.
In this method, instead of generating new ideas themselves, consumers are provided with a list of problems in a general product category.
Problem inventory analysis
Which of the following is a practical implication of using the dual process of learning from failure?
Recovery from loss offers an opportunity to increase one's knowledge of entrepreneurship.
_______ are designed to stimulate thought about entrepreneurs' understanding and feelings as they progress through the entrepreneurial process
Reflection tasks
The opportunity recognition process contains all of the following except
Reformation
___________ includes a redefinition of the business concept, reorganization, and the introduction of system-wide changes to increase innovation.
Self renewal
Which of the following was not discussed in the text as a breakthrough innovation?
Spanx
While there are many components in a professional-support network, __________ are particularly good with insight on both trends and competitors.
Suppliers
Which of the following statements is nor true of the restoration orientation approach to negative emotions?
The restoration orientation approach requires oscillating between two alternate approaches to loss.
Which group in a professional network helps keep a new venture competitive?
Trade associations
Asking "How is this problem similar to problems I've already solved?" is an example of a connection task.
True
Augmented reality, body monitoring, and point of view reference are all trend categories in the wearable tech industry.
True
Brainstorming is an unstructured process used for generating possible ideas about a problem within a limited time frame through the spontaneous contributions of participants.
True
Brainwriting is a written form of brainstorming.
True
Bricolage is entrepreneurs making do by applying combinations of the resources at hand to new problems and opportunities.
True
Comprehension questions are designed to stimulate entrepreneurs to think about their own understanding of the nature of the environment
True
Corporate entrepreneurship is most strongly reflected in entrepreneurial activities as well as in top managemen orientations in organizations
True
Creativity tends to decrease with age, education, lack of use, and bureaucracy.
True
Developing a spirit of entrepreneurship within the existing organization, called corporate entrepreneurship, can lower resistance to flexibility, growth, and diversification.
True
Dissatisfaction with various aspects of one's job often motivates the launching of a new venture.
True
Entrepreneurial opportunities are those situations in which new goods, services, raw materials and organizing methods can be sold for financial or non-financial gain of the entrepreneur and/or other stakeholders.
True
Entrepreneurial thinking is partly a mental process of recognizing a signal and then deciding if the signal represents an opportunity for someone.
True
Entrepreneurial thinking partly is about reducing doubt as to whether an opportunity for someone is also an opportunity for them specifically, and/or processing feedback from action steps taken
True
Entrepreneurially managed firm structure is usually flat with multiple informal networks.
True
Entrepreneurs focus on how to minimize resources needed whereas traditional fins focus on accumulating resources.
True
Entrepreneurs' intentions are their perception of feasibility someone else's impression of is feasible.
True
For entrepreneurial actions that preserve nature to be considered sustainable entrepreneurship, they must also develop gains for the entrepreneur, others, and/or society:
True
In a social network there are two major properties, density and centrality
True
In an encouraging climate for corporate entrepreneurship, rewards should be based on the attainment of established performance goals.
True
In corporate entreprencurship, trial and error are encouraged.
True
In creating a culture for corporate entrepreneurship leadership is important.
True
In the checklist method, a new idea is developed through a list of related issues or suggestions.
True
In the concept stage, the refined idea is tested to determine consumer acceptance.
True
In the product development stage, consumer reaction to the physical product/service is determined
True
Brainstorming groups should
try to generate as many ideas as possible
Internal corporate venturing consists of creating something new of value either by redefining the company's current products or services, developing new markets, or forming more formally autonomous or semiautonomous units or firms.
True
Members of the distribution channel are usually good sources of ideas for new products.
True
Most entrepreneurs indicate that their most significant venture was not their first one
True
Only the test marketing phase of product planning provides actual sales results to judge the product's customer appeal,
True
Perceived desirability refers to the degree to which an individual has a favorable or unfavorable evaluation of the potential entrepreneurial outcomes
True
Previous start-up experience is a good predictor of starting subsequent businesses
True
Research and development can be a formal endeavor connected with current employment or an informal one in a basement or garage.
True
Role models can include fami members as well as industry professionals.
True
Self-renewal includes the redefinition of the business concept, reorganization, and the introduction of system-wide changes to increase innovation.
True
Structural similarities exist when the underlying mechanisms of the technology resemble, or match, the underlying mechanisms of the market
True
The effectuation process starts with what one has and selects among possible outcomes.
True
The entrepreneur's ability to recognize a business opportunity is a result of his or her knowledge and experience.
True
The focus group is an excellent method for initially screening ideas and concepts.
True
The payments industry includes services for lending money to products that allow anyone to accept credit cards, as well as billing and accounting services
True
The product life cycle includes introduction, growth, maturity, and decline
True
The product planning and development process is divided into five major stages.
True
The trend "The Internet of Things" refers in part to "smart" devices.
True
Three benefits to having a dedicated app: streamline customer experience, new methods of engaging different audienee, and general visibility
True
Traditionally managed firms typically punish failure.
True
Trends often provide one of the greatest opportunities for starting a new venture.
True
When a firm classifies a new product the two key factors used are market and technology newness.
True
When developing criteria for evaluation during the product planning and development process, the criteria should be all-inclusive and quantitative enough to screen the product carefully.
True
With e-commerce, if an entrepreneur is fully outsourcing, they elect to have one or more firms handle all front-end and back-end activities and simply provide management for the operation.
True
Augmented reality is an example of the ___________ trend.
Wearable
The moral support network is different from the professional support network in that
a professional support network includes finding a mentor.
Creativity declines with
age, education, lack of use, and bureaucracy.
When establishing corporate entrepreneurship in an organization rewards should
be tied to the performance of the entrepreneurial unit created from the idea
What type of innovation is illustrated by the ideas of the airplane and penicillin?
breakthrough innovation
In the ________ method a new idea is developed through a list of related issues or suggestions.
checklist
On the education background entrepreneurs
cite an educational need in the areas of finance, strategic planning, marketing, and management.
In what stage would it be most beneficial to use conversational interviews?
concept stage
Parameter analysis consists of two main aspects that are
creative synthesis and parameter identification
How many stages are in the product planning and development process?
five
In addition to generating new ideas ____________ is an excellent method for initially screening ideas and concepts
focus group
This problem-solving method involves developing new ideas by thinking without constraints.
Big-dream approach
Probably the most well-known and widely used technique for creative problem solving is
Brainstorming
When entrepreneurs make do by applying combinations of the resources at hand to new problems and opportunities, this is known as
Bricolage
Which of the following creative methods involves having participants write down their ideas several times a day
Collective notebook method
Questions designed to increase an entrepreneurs' understanding of the nature of the environment are known as:
Comprehension questions
__________ is not desirable when brainstorming is in process.
Criticism
Continuous innovations are described as
having the least disrupting influence on established consumption patterns.
packlane, a custom packaging company, allows organizations to design their own shipping boxes with custom branding. this is an example of the _________ trend
maker
