Entrepreneurship

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

The person who has the opportunity to lead and run with an idea would be coined which of the following

The Champion

Which of the following statements is true?

The right brain helps people understand analogies and imagine things

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

They tend to be very reliable in predicting who will and who will not succeed as an entrepreneur

Feasibility analyses include technical, market, financial, organizational, and competitive analyses

True

Generally, the larger and more successful the franchisor, the greater the franchise fee that is charged

True

Incubation in the creative process often occurs when the individual is doing something completely unrelated to the subject

True

One reason that corporate entrepreneurship has become popular is because it allows corporations to tap the innovative talents of personnel

True

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

True

Recognition of entrepreneurs dates back to the French economist Richard Cantillon

True

Social entrepreneurs are known to form ventures that exploit opportunities to create social value

True

The macro view of entrepreneurship includes external processes that are sometimes beyond the control of the entrepreneur

True

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

incremental innovation

What are the four types of innovation?

invention, extension, synthesis, duplication

The process approach to entrepreneurship seeks to

model the various factors that characterize the entrepreneurial process

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

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

the corporations that promote personal growth will attract the best people

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

the corporations that promote personal growth will attract the best people

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

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

The word entrepreneur is derived from the French entrepreneur, which is translated as

to undertake

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

Entrepreneurs sense potential in business problems by asking

what if and why not?

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.

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

factoring

Key resources and key activities (or processes) are two components of a venture's

Business Model

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

Commitment, determination, and perseverance are the only characteristics one needs to become a successful entrepreneur

False

Creativity cannot be developed or improved

False

Equity financing is money invested in the venture with a legal obligation to repay the principal amount with accrued interest

False

Firms do not need to alter management techniques to encourage corporate entrepreneurship since it tends to occur naturally

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

The entrepreneurial spirit is unique to American and Western Europe

False

Timing has little to do with the success or failure of a new venture

False

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

Imitative market entry

Which of the following statements is true of personality traits, cognition and affect (2)

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

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

Overbearing need for control

What characteristics that propel entrepreneurs into success can be exhibited to such an 'extreme' that it becomes a problem

Overbearing need for control

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

Price per unit and total number of units sold

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

Punishment of mistakes

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

eliminating the concept of waste

The major trust of corporate entrepreneurship is to

encourage innovation