ENTR 321 Exam 1

Which of the following type of new venture would involve the least amount of product innovation?

Imitative market entry

Which of the following terms refers to the systematic evolution of a product or service into newer or larger markets?

Incremental innovation

Which characteristic(s) that propel entrepreneurs into success can be exhibited to such an "extreme" that it becomes a problem?

Overbearing need for control

Which of the following is NOT a type of debt financing?

Private Placement

Which of the following is something that is similar between Angel Investors and Venture Capitalists?

The analysis and "due diligence" process they use to evaluate a potential investment.

The word entrepreneur is derived from the french entreprendre, which is translated as ___________.

To undertake

Which of the following would be most commonly used for short-term financing?

Trade credit

True/False: Feasibility analyses include technical, market, financial, organizational, and competitive analyses.

True

True/False: Generally, the larger and more successful the franchisor, the greater the franchise fee that is charged.

True

True/False: Incubation in the creative process often occurs when the individual is doing something completely unrelated to the subject.

True

True/False: One reason that corporate entrepreneurship has become popular in because it allows corporations to tap the innovative talents of the personnel.

True

In attempting to create an entrepreneurial climate, the organization should consider that _________.

The corporations that promote personal growth will attract the best people.

True/False: Recognition of entrepreneurs dates back to the French economist Richard Cantillion.

True

True/False: Social entrepreneurs are known to form ventures that exploit opportunities to create social value.

True

True/False: The macro view of entrepreneurship includes external processes that are sometimes beyond the control of the entrepreneur.

True Macro=External process Micro=Internal Process

In assessing a potential start-up opportunity, product/market problems include which of the following?

Unclear business definition

The opportunity for entrepreneurial innovation emerges from the intersection of _______.

Unmet needs, potential solutions, and entrepreneurial cognition.

Which of the following is NOT an important characteristic for establishing an intrapreneurial climate?

Punishment of mistakes

Which of the following was the first to note the role of entrepreneurs in organizing the "factors of production" and shifting them to more profitable opportunities?

Richard Cantillion

Joseph Schumpeter wrote about a process of entrepreneurial innovation that he termed "creative destruction". Which of the following most closely describes the potential economic effect of the types of innovations Schumpeter was talking about?

Shifting the production possibilities frontier by meeting more needs with the same amount of resources.

True/False: Pricing becomes less of a concern when customers become aware of a product's unique characteristics that are superior to the competition.

True

True/False: The entrepreneurial spirit is not unique to America and Western Europe; it can be found in nearly every part of the world.

True

Entrepreneurs sense potential in business problems by asking _______.

What if and why not?

True/False: Commitment, determination, and perseverance are the only characteristics one needs to become a successful entrepreneur.

False

Which of the following statements is true of personality traits, cognition and affect:

In combination, they can influence the motivation of the entrepreneur to pursue an opportunity.

Some characteristic(s) that propel entrepreneurs into success can be exhibited to such an "extreme" that they become problems. Which of the following is NOT one of these characteristics?

Need for control

True/False: Creativity cannot be developed or improved.

False

True/False: The macro view of entrepreneurship looks at factors that are specific to the individual entrepreneur.

False

True/False: The word entrepreneur is derived from the French entreprendre, which is translated as "too assume risk"

False

True/False: Timing has little to do with the success or failure of a new venture.

False

True/False: Equity financing is money invested in the venture with a legal obligation to repay the principle amount with accrued interest. Or (interest or interest rate on it).

Both False, This would be debt financing

Key resources and key activities (or processes) are two components in the description of a venture's _______.

Business model

The person who has the opportunity to lead and "run" with a ida would be coined which of the following:

Champion

The major trust of corporate entrepreneurship is to _________.

Encourage innovation

The process approach to entrepreneurship seeks to _________.

Explain why and how an individual chooses to pursue an opportunity. And model the various factors that characterize the entrepreneurial process.

In the most developed economies, capital goods and automation have taken the place of manual labor-or makes it more efficient- and knowledge has become increasingly important. Entrepreneurship in these countries typically contributes to which type of economic growth?

Factor-driven economic development

Some countries exhibit a lot of entrepreneurial activity, but a high number of the entrepreneurial ventures seem to primarily provide self-employment for the founder. Which stage of economic development typically applies to these countries?

Factor-driven economic development

When accounts receivable are bought from a company for capital funding it is called

Factoring

What are the four types of innovation?

Invention, extension, synthesis, duplicaiton

The decision to behave entrepreneurially is the result of the interaction of:

The individual's personal entrepreneurial mind-set and an opportunity

Which of the following statements is true about the left side of the brain?

The left brain helps people analyze and verbalize.

Which of the following statements is true about the right side of the brain?

The right brain helps people understand analogies and imagine things.

Which of the following best illustrates the power of positive externalities?

When organic waste (like paper and food) decomposes in a landfill, it produces methane gas. Many landfills now capture the gas and burn it to generate electricity.

Key elements in plans to create a sustainable future are likely to include which of the following?

Eliminating the concept of waste

True/False: Firms do not need to alter management techniques to encourage corporate entrepreneurship since it tends to occur naturally.

False

True/False: In negotiating a deal to purchase an existing business, it is a bad idea to ask the seller to retain a minority interest in the firm.

False

True/False: The entrepreneurial spirt is unique to American and Western Europe.

False

To be profitable, total revenue must exceed total cost. Break-even analysis tells us we must look at both _________.

Price per unit and total number of units sold