Entrepreneurship final exam
A code of ethics is:
A written statement of ethical practices or guidelines to which an entity adheres.
Which of the following is not a risk of entrepreneurship?
The entrepreneur is required to risk their physical health.
Which of the following is not a characteristic of an entrepreneurial environment?
short-term outlook
Aging demographics indicates which type of trend?
societal
In using the innovative process of creativity, the entrepreneur could do all of the following except:
tends to be means oriented
Entrepreneurs themselves perceive the concept of risk in which of the following ways?
calculated risk taking
Paintings from antiquity show us that famous people of that time carried a few extra pounds on them than what we would today call healthy. Researchers tell us that this is because having some extra fat on a person meant that they were healthy and that rich people could afford to eat. However, today, people who are carrying around noticeable fat are seen as obese and unhealthy. This has led to a flood of diet trends and fads as well as businesses providing meal options geared toward reducing fat intake. This is an example of what?
Perceptual Changes
Product design, reliability, & safety are all examples of:
Technical feasibility
Which of the following is not one of Porter's 5 Forces?
Threat of Global Influence.
Most innovations result from:
A conscious & purposeful search for new opportunities
A market is:
A group of consumers who have purchasing power & unsatisfied needs
Which statement is true about fads?
Fun, but no lasting impact on society
The 1 common trait that all successful entrepreneurs have is that they had access to money prior to and during their new venture creation.
false
The 1 common trait that all successful entrepreneurs have is that they were in the right place at the right time.
false
The academic study of entrepreneurship has identified a profile, or set of characteristics and achievements, that can distinguish an entrepreneur from a regular person.
false
Unstructured and chaotic is the norm for entrepreneurs.
false
With psychic risk entrepreneurs ______________
fear failure and thus over compensate for it or succumb to negative thoughts and feelings.
The decision to accept entrepreneurial motivation comes from one's
goals
The statistical analysis of entrepreneurship has 3 classifications of economic development. Which one relies on knowledge an innovation driven by an expanding service sector need?
innovation-driven
How you plan on getting your product to the consumer, along with how you will let them know about it is called
marketing
Which statement is not true about an error of commission?
missed opportunity
Creativity to the Entrepreneur is:
the generation of ideas that results in the improved efficiency or effectiveness of a system
True or False, the NEW OLD approach to new venture creation adapts existing products or services or extends them into areas where they are not presently available.
true
From the perspective of studying entrepreneurship as an academic, one tries to
understand and better predict entrepreneurial activity.
Which of the following questions concerning innovation is not relevant?
"When should the product go to market?"
Gazelle start-up businesses in the past decade have approached nearly ______ per year.
600,000
Which of the following is not a reason for exceptional entrepreneurial activity in the United States?
America's willingness to exploit third world nations and anyone else weaker than us.
All of the following techniques are used in gathering primary data except:
Analysis of financial records published by others
Successful entrepreneurs are able to identify & implement ideas that:
Are workable & that they have the skills to implement
A bank in a small US town close to the border of Canada read a census report that the number of people who speak French as their first language has gone up 30% in the past 10-years. The bank decides to begin advertising their services in French in an attempt to gain some of the French speaking people in the town as patrons. This innovation in doing business was likely caused by?
Demographic Changes Unexpected Occurrences
Failure is necessary for all of the following reasons except:
Failure restricts your ability to think
Which of the following is not a type of innovation?
Adaptation
The statistical analysis of entrepreneurship has 3 classifications of economic development. Which one relies on industrialization & economies of scale?
Efficiency-driven
Which of the following are not a step in the venture creation process?
Emergence of the opportunity
Code of ethics issues that impact society may include:
Environmental issues, political issues, & social responsibility
Factors that influence organizational managerial ethics include:
Philosophy of top management, reward systems & job dimensions
Richard Cantillon defined an entrepreneur as:
The sole occupation to apply knowledge to the creation of a product for human consumption
In Dr. Michael Porter's framework of forces on an industry or business, Threat of New Entrants is best described as ____________________?
This force describes how easy is it for new businesses to enter the market and take customers away from the existing competitors.
In Dr. Michael Porter's framework of forces on an industry or business, Competitive Rivalry is best described as ____________________?
This force tries to determine if lower profits will occur because too many competitors are in the market and thus customers can freely move between competitors. A concern with this force is that if it is severe, it can lead to competitive moves including price cutting, increased advertising expenditures, or spending on service/product improvements and innovation.
The phase of the creative process when the idea or solution the individual is seeking is discovered is referred to as:
idea experience
Which of the following is not one of the stages of grief?
mental instability
According to Mark Cuban, most entrepreneurial initiatives fail because of lack of effort.
true
True or False, the NEW NEW approach to new venture creation utilizes new and unique products/services to create businesses and markets.
true
Which of the following is incorrect:
Entrepreneurs manage their businesses by expecting stable sales, profits, and growth
Which of the following statements is true about innovation?
Innovation blends imaginative and creative thinking with a systematic, logical process in order to recognize and create opportunity where others find only problems
Which of the following believed that the entrepreneur was the sole risk taker?
Richard Cantillion
When entrepreneurs rely on existing solutions, techniques, or products to try to do things better, they are utilizing what type of creative process?
adaptive
Telling your potential customers about your product is called
advertising
Cognition is our mental process, and is comprised of all of the following except:
implement
Based on the latest GEM study, the United States outranks the rest of the world in what?
important entrepreneurial support
As the population of cars grew there was a shortage of parking area. The Smart car, a small car capable of fitting in to tiny spaces was created so that more cars could be fit in to the existing spaces. The Smart car really didn't catch on as a solution to the problem. This is an example of what form of innovation?
incongruities
Tillie sells fruit from her trees. Walmart also sells fruit. What type of competitor is Tillie to Walmart?
indirect competitor
Which of the following is not an impediment to creativity?
problem thinking
The promotional pyramid includes all of the following except:
sales tactics
The unethical practice of "cooking the books" is an ethical issue affecting
shareholders and investors
Products that consumers will take time to examine carefully & compare for quality & price are:
shopping goods
Which of the following is not a principle of Innovation?
start big
Entrepreneur is derived from the French entreprendre meaning to:
undertake
Which of the following is not a characteristic of small business owners?
wealth creation is rapid
TCPalm, a subsidiary of the USA Today Network, reporter Melissa E. Holsman wrote in her December 18, 2019 article "Former Indiantown Nonprofit Housing director Donna Carman blames money thefts on gambling" that Donna Carman, the former executive director of Indiantown Nonprofit Housing pleaded guilty to "siphoning" up to $50,000 from the not-for-profit corporation. During the trial, her attorney, Michael B. Cohen, argued that his client's illegal actions to a gambling addiction. Her criminal conduct, he wrote, "represented aberrant behavior." Which of the below best describes Donna Carman's actions: Select one:
Her gambling addiction created pressure that led to her perceiving that stealing the money was the right thing to do.
Code of ethics issues that impact employees may include:
Honesty, health & safety, harassment, discrimination, & drug screenings
Which of the following is not a characteristic of a Fixed Mindset?
I can develop my qualities through dedication and effort.
In Dr. Michael Porter's framework of forces on an industry or business, Power of Customers is best described as ____________________?
In Dr. Michael Porter's framework of forces on an industry or business, Power of Customers is best described as ____________________?
Information has always been plentiful and the need to access sufficient amounts of it led to established libraries, such as the famed Library of Alexandria and more recently the New York Public Library. The creation of the World Wide Web gave rise to a search engines like Google. The creation of search engines is and example of what?
Industry & Market Changes
Which of the following is not one of your competitors?
Insignificant Competitors
What are the four types of innovation?
Invention, extension, synthesis, duplication
Why do we need ethics?
It is our means of deciding a course of action.
Cholera was one of the deadliest diseases to affect Britain in the nineteenth century and this summer marked the 150th anniversary of the fourth and final pandemic in London in 1866. In the nineteenth century it was believed that the disease was transmitted and spread by a 'bad air' or 'bad smells' from rotting organic matter. This thinking dominated official medical and government statements and the recently created General Board of Health was amongst those that believed in this theory. John Snow (1813-1858), an English physician and a leader in the development of anaesthesia and medical hygiene, had written several papers arguing against the prevailing foul air method of disease transmission. At this time in our history, germ theory was not developed, so doctors were unaware of the mechanism by which the disease was transmitted. But, Snow's research had evidence that it was not due to breathing in foul air. In August 1854, a major outbreak of cholera reached the district of Soho, London,. This was the third cholera outbreak in London, having previously occurred in 1832 and 1849. In the mid-19th century, Soho had a serious problem with filth due to the large influx of people and a lack of proper sanitary services: the London sewer system had not reached Soho at this point and drainage was poor throughout London. It was common at the time to have a cesspit (a hole that your poop and pee went in to) under most homes. Dr. Snow began talking to local residents about their illnesses and mapping the deaths from cholera. His research determined those who caught cholera were getting their drinking water from the Broad Street water pump. His research of the pattern of the disease were convincing enough to persuade the local council to disable the water pump by removing its handle. This action has been credited with contributing significantly to the containment of the disease in the area. It was later discovered that the water for the pump was polluted by sewage contaminated with cholera from a nearby cesspit. Today, we recognize that sanitation is extremely important to maintaining healthy and safe communities. This type of innovation is known as:
Knowledge - Based Concepts
The incubation process involves which of the following?
Letting the subconscious work
On March 22, 2019 New York Daily News reporters Elizabeth Keogh, Thomas Tracy, and Stephen Rex Brown published the story "Charity volunteer for slain NYPD officers embezzled $410,000 and spent it on dentistry, landscaping, Barbra Streisand tickets: prosecutors". In the story, the journalist trio report on Lorraine Shanley, who served as volunteer treasurer for the Survivors of the Shield from 2010 to 2017. The article details how during her tenure, she spent $410,000 in donations on personal expenses including her son's legal bills, her grandchild's private school tuition, dentistry, landscaping for her Staten Island home and Barbra Streisand tickets. "Lorraine Shanley allegedly capitalized on tragedy and monetized people's generosity," Manhattan U.S. Attorney Geoffrey Berman said. "As alleged, Shanley stole over 20% of the donations to a charity whose sole mission is to help the families of NYPD officers killed in the line of duty." Which of the below best explain Lorraine Shanley's unethical choices: Select one:
Lorraine Shanley perceived an opportunity to help her family and herself out of some financial barriers.
Focusing on a particular loss to explain why the loss occurred is referred to as:
Loss orientation
Which of the following is not a method of generating new ideas?
Mindtapping
Which of the following statements is true about creativity?
People can learn to be creative
Which of the following is not one of the four phases of the creative process?
Post-mortem analysis
On January 27, 2018 Boston Globe ran the following article; "Employee theft 'shockingly common' at nonprofits", in which reporter Todd Wallack reported that a board member of the Somerville Homeless Coalition was reviewing the nonprofit's annual financial documents in 2015 when he spotted something odd. The forms said the chief operating officer, the No. 2 executive, earned $12,000 more than the organization's top executive the previous year. Could that really be correct, he asked? Turns out it wasn't a typo. It was theft. Somerville Homeless soon discovered that the COO — who handled all the finances — allegedly embezzled approximately $108,000 over 18 months. The charity said he brazenly added some of the money directly into his paycheck — where it showed up on the group's annual financial forms — used the organization's credit card for personal expenses, and added his middle-aged son to the group's health insurance. The COO's unethical behavior was caused by which of the following: Select one:
Rationalization that they should earn as much or more than the CEO since they handled the money.
An entrepreneur that has a portfolio of opportunities in various stages of development?
Serial Entrepreneur
Which of the following are the four different types of entrepreneurs?
Serial, Social, Gazelles and Corporate
Alfred Marshall defined an entrepreneur as:
Supplier of commodities; provider of innovation & progress.
Jean Baptiste Say defined an entrepreneur as:
Supplier of commodities; provider of innovation & progress; seeks opportunities to minimize costs of risk to gain profits
Which of the following would be considered a Shopping Goods?
a car
Psy's Gangham Style music video is an example of a societal acceptance and enjoyment best known as a _________.
a fad
Most entrepreneurial initiatives fail.
false
Only people who can come up with or invent stuff are worthy to be called entrepreneurs.
false
Once seen as a niche product only consumed by vegans and vegetarians, plant-based meats have gained mainstream acceptance among traditionally carnivorous foodies in the coming year. The market is predicted to grow by 28% each year until it reaches a whopping $85 billion by 2030, thanks to an increasing number of consumers with health, environmental, and animal welfare concerns. Impossible Foods and Beyond Meat are leading the charge, producing alt-meats for grocery store shoppers and partnering with chain restaurants like Burger King, KFC, and Subway to bring affordable options to the masses. It is believed that even more restaurants will introduce plant-based meat menu items that go beyond (pun semi-intended) beef-free burgers. This type of societal change and acceptance is known as: Select one:
a trend
Factors in choosing a marketing philosophy include which statement?
all (Competitive pressure, Entrepreneur's background, short term focus)
hy do companies use target marketing?
all (Not everybody will buy from you, You cannot satisfy all of the needs and wants of everyone, Helps control the advertising budget)
The entrepreneur becomes creative by:
all (Recognizes that problems are to solutions what demand is to supply, Seeking out unique opportunities to fill needs and wants, Turns problems into opportunities)
Which of the following ethical rationalizations are used to justify questionable conduct.
all (The act is not "really" illegal or immoral, The act is in the individual's or the firm's best interest, The act will never be found out.)
During the evaluation/Implementation phase of the creative process, a great deal of _______ is needed?
all (perseverance, self-courage, discipline)
The Effectuation process of creativity starts with what one has, and:
all are correct (mean-driven, risk-averse, may reach multiple goals from a combination of what is available)
The entrepreneurial motivations of individuals usually relate to which of the following factors?
all of the options (entrepreneur, venture, environment)
Entrepreneurial motivation requires persistence. Which of the following is not a way that one stays persistent?
desire to take from society
Characteristics often attributed to the entrepreneur include:
determination and perseverance
Which of the following is not advertising?
door-to-door sales
Which of the following is not a characteristic of the Entrepreneurial Mindset?
external locus of control
The statistical analysis of entrepreneurship has 3 classifications of economic development. Which one relies on labor & natural resources?
factor-driven
Most entrepreneurial initiatives fail because of lack of money.
false