MGT 3323: Entrepreneurship exam 1
An opportunity has four essential qualities.
(1) rare (2) attractive (3) timely (4) anchored in a product, service, or business that creates or adds value for its buyer or end user.
The types of BHAG
- Internal transformation - Common-Enemy - Role Model - Target
Which of the following is an attribute of an attractive industry?
- is fragmented rather than concentrated - is important to the customer - is not crowded - is young rather than old
According to the video "automation Nation" approximately what % of jobs in the US will be replaced by automation in the next 20 years?
47%
The Barringer/Ireland Business Model Canvas consists of _________ major categories and _________ parts.
4; 12
Which of the following is not a part of assessing the product/service feasibility of a business idea?
Analyzing industry attractiveness
________ is (are) used to generate a number of ideas quickly.
Brainstorming
Most of Sarah's ideas come from interacting with coworkers, friends, her spouse, her parents, and other people that share the same beliefs that she does. Sarah is getting most of her ideas through ________ relationships.
C) strong-tie
Which of the following is not an example of a social force?
Changes in interest rates
Brad Jones is in the process of opening an electronics supply company and is working on the portion of his business plan template that describes how he will deliver his products and services to his customers. The portion of the business plan template that Brad is working on is referred to as ________.
Channels
In the Barringer/Ireland Business Model Template, __________ desribes how the firm plans to compete relative to its competitors
Core strategy
In the terminology of the Barringer/Ireland Business Model Template, a firm's ________ structure describes the most important costs incurred to support its business model.
Cost
Jenna Franklin is completing the portion of the Barringer/Ireland Business Model Template that describes the most important costs that will be incurred to support her business model. Jenna is completing the ________ structure box in the business model template.
Cost
________ is the process of generating a novel or useful idea.
Creativity
________ business models are ones that do not fit the profile of standard business models, and are impactful enough that they disrupt or change the way business is conducted in an industry or an important niche within an industry.
Disruptive
GasBuddy and GasPriceWatch.com are companies started to help consumers save money on gas. Which environmental trend is most likely to have provided the impetus for the creation of these companies?
Economic forces
Pacific Fishing LLC is a startup that is working on a new technology for the fishing industry. Because the technology it's working on is highly proprietary, the company is located in the warehouse district of a large western city. Pacific's founder, Ray Sims, rarely gives interviews and is careful to not divulge much about what the company is doing. Which of the following common myths about entrepreneurs does the behavior of its founder, Ray Sims, dispel?
Entrepreneurs love the spotlight.
________ is the process of determining whether a business idea is viable.
Feasibility analysis
________ feasibility analysis is a quick financial assessment of the viability of a business idea.
Financial
Which of the following is an example of a resource that normally would not be evaluated as part of the "resource sufficiency" stage of organizational feasibility analysis?
Financial resources
Which section of the Barringer/Ireland Business Model Template is the only section that describes how it makes money?
Financials
Which of the following factors is a positive as it pertains to the financial feasibility of a business venture?
High percentage of recurring revenue
Which of the following factors is a negative as it pertains to the financial feasibility of abusiness venture?
Inability to forecast income and expenses with a reasonable degree of accuracy
Which of the following issues should be considered in industry/target market feasibility analysis?
Industry attractiveness
________ feasibility analysis is an assessment of the overall appeal of the industry and market for the product or service being proposed.
Industry/target market
Economic forces impact the opportunities available to entrepreneurs. Which of the following alternatives reflects a set of economic forces that would be of interest to entrepreneurs?
Interest rates, consumer spending patterns, and level of disposable income
In the book The Theory of Economic Development, ________ argued that entrepreneurs develop new products and technologies that, over time, make current products and technologies obsolete. This process is called creative destruction.
Joseph Schumpeter
________ feasibility analysis is conducted to determine whether a proposed business has sufficient management expertise, organizational competence, and resources to successfully launch its business.
Organizational
________ feasibility is an assessment of the overall appeal of the product or service being proposed.
Product/service
The financials section of the Barringer/Ireland business model template consists of 3 boxes. The boxes are titled _________.
Revenue streams, cost structure, and financing/funding
Which of the following statements is incorrect regarding the personal characteristics of entrepreneurs?
Several studies show that prior experience in an industry actually blinds an entrepreneur to the recognition of new opportunities in the same industry.
________ business models depict existing plans or recipes firms can use to determine how they will create, deliver, and capture value for their stakeholders.
Standard
________ relationships are characterized by frequent interactions that form between coworkers, friends, and spouses.
Strong-tie
Cynthia Hamilton is launching a chain of smoothie restaurants. Among Cynthia's key partners will be firms that provide her the ingredients needed to make her smoothies. In the terminology of the Barringer/Ireland Business Model Template, these partners are called ________.
Suppliers
3 commonly utilized methods for determining product/service demand are _________.
Talking face 2 face with potential customers; utilizing online tools; internet and gumshoe research
A firm's ________ market is a place within a larger market segment that represents a narrower group of customers with similar interests.
Target
Which of the following is an incorrect approach to administering a concept test?
The best candidates to distribute a concept statement to are family and friends
Which of the following statements is incorrect regarding entrepreneurial activity and age range?
The majority of business founders have no prior work experience.
Which of the following statements is not true about women-owned businesses in the United States?
The number of women-owned businesses is decreasing.
Which of the following is an accurate characterization of interest in entrepreneurship?
There is tremendous interest in entrepreneurship across the world.
Which of the following is not one of the 5 common myths about entrepreneurs?
They are tenacious
The What Went Wrong? feature in chapter 1 focuses on Prim, a failed startup in the laundry industry. According to the feature, Prim failed largely as a result of _________.
a lack of passion and resolve
According to the textbook, entrepreneurship has historically had ________.
a major impact on both the economy and society
The three primary reasons that people become entrepreneurs and start their own firms are to ________.
be their own boss, pursue their own ideas, and realize financial rewards
A ________ is a firm's plan or recipe for how it creates, delivers, and captures value for its stakeholders.
business model
A firm's ________ is a plan for how it competes, uses its resources, structures its relationships, interfaces with customers, and creates value to sustain itself on the basis of the value it creates
business model
A(n) ________ is a written document that describes all the aspects of a business venture in a concise manner.
business plan
A(n) ________ involves showing a preliminary description of a product or service idea to prospective customers to gauge customer interest, desirability, and purchase intent.
concept test
In the Barringer/Ireland Business Model Template, a(n) ________ is a specific factor or capability that supports a firm's business model and sets it apart from its rivals.
core competency
The Resources section of the Barringer/Ireland Business Model Template consists of the ________ and ________ boxes.
core competency; key assets
An organizations core ideology is composed of
core values and core purpose
Apple is an established firm that encourages and emphasizes entrepreneurial behavior throughout its various divisions. According to the textbook, Apple practices ________ entrepreneurship.
corporate
As new products that are better than the existing generation of products are introduced, sales normally increase because the new products provide consumers increased value or worth. This process, which is called ________, stimulates economic activity, which is a good thing for the economy.
creative destruction
Kelly Pryor, who has launched several successful entrepreneurial firms, seems to have a "sixth sense" that allows him to see opportunities that others miss. Kelly's ability is referred to as _________.
entrepreneurial alertness
The ability to notice things without engaging in deliberate search is referred to as ________.
entrepreneurial alertness
Google is a firm that is proactive, innovative and risk-taking. From this description, we can most accurately conclude that Google has a high level of ________.
entrepreneurial intensity
Alex and Patty Webb launches a firm several years ago and have been particularly successful in introducing new products. One thing that Alex and Patty are particularly good at is translating their thoughts, creativity, and imaginations into products that reach the marketplace. The ability to make this happen is most closely related to which of the following characteristics of successful entrepreneurs?
execution intelligence
Clothing boutiques and specialty shops often start because there is a need for a particular product, but large retailers like Wal-Mart and Costco can't sell enough of the item to stock it on their shelves. If a clothing boutique started to sell designer clothes or clothing for hard-to-fit people because the clothing wasn't being offered by a larger retailer, the best way to describe how that idea was recognized is ________.
finding a gap in the marketplace
In 2000, Tish Cirovolo realized that there were no guitars on the market made specifically for women. As a result, she started Daisy Rock Guitars, a company that makes guitars just for women. Daisy Rock Guitars are stylish and come in feminine colors, and incorporate design features that accommodate a woman's smaller hand and build. The best way to describe how Cirovolo's business idea was recognized is ________.
finding a gap in the marketplace
The two components of industry/target market feasibility analysis are ________.
industry attractiveness and target market attractiveness
A(n) ________ is a group of firms producing a similar product or service. A firm's ________ is the limited portion of the industry that it goes after or to which it wants to appeal.
industry; target market
Which of the following is the proper sequence for when a firm should develop a business model
initial validation of the business idea, preparation of the business model, fleshing out the operational details of the firm
An entity created by two or more firms pooling a portion of their resources to create a separate, jointly-owned organization is called a ________.
joint venture
In the terminology of the Barringer/Ireland Business Model Template, ________ assets are the assets that a firms owns that enable its business model to work.
key
Southwest Airlines is an example of a ________ disruptive business model.
low-end
The two primary issues to consider in organizational feasibility analysis are ________.
management prowess and resource sufficiency
Nathan Green is starting a firm in the organic produce industry. Nathan has developed a statement—"Helping Make Your Life Better, Healthier, and Fuller"—that describes the reason his company exists and what his business model is supposed to accomplish. In the terminology used in the Barringer/Ireland Business Model Template, Nathan's statement is referred to as his ________ statement.
mission
According to the textbook, entrepreneurs are ________.
moderate risk takers
There are two types of disruptive business models — ________ and ________.
new-market; low-end
The number one rule for a brainstorming session is ________.
no criticism is allowed
The focus in organizational feasibility analysis is on ________.
nonfinancial resources
Kasey Stevenson is starting a firm in the women's clothing industry primarily to pursue financial rewards. According to the textbook, starting a business to make a lot of money ________.
often fails to live up to its hype
A(n) ________ is a favorable set of circumstances that creates the need for a new product, service, or business. A(n) ________ is a thought, an impression or a notion.
opportunity, idea
The most important issues to consider in financial feasibility analysis are: financial performance of similar businesses, total cash needed, and ________.
overall attractiveness of the proposed venture
According to the textbook, the 4 characteristics of successful entrepreneurs are
passion for the business, tenacity despite failure, product/customer focus and execution intelligence
Cynthia jones recently surveyed 200 of her classmates to get a sense of the demand for a new software product she is working on. Collecting data via a survey you administer yourself is referred to as _________ research
primary
Cody Rodgers is the founder of a company named Extreme Sports Apparel. The company makes apparel products for extreme sports enthusiasts such as rock climbers, triathletes, skateboarders, and BMX bikers. Cody wants his company to pursue a high level of corporate entrepreneurship. To achieve that goal, Cody's firm should be ________.
proactive, innovative, and risk taking
A company's ________ scope defines the products and markets on which it will concentrate.
product/market
Does it make sense? Is it reasonable? Is it something consumers will get excited about? Does it take advantage of an environmental trend, solve a problem, or fill a gap in the marketplace? These are the types of questions asked during the ________ feasibility component of a complete feasibility analysis.
product/service
The two components of product/service feasibility analysis are ________ and ________.
product/service desirability; product/service demand
Advertising, commissions, download fees, licensing, and product sale are examples of ________.
revenue streams
The increasing number of social networks on the Internet is attributed to a jump in the number of people who are wanting to connect with one another online. The increasing number of social networks is an important ________ trend.
social
An increased focus on health and wellness has resulted in a number of new business ideas including healthier foods and beverages, yoga instruction and training centers, and nutrition consulting. An increased focus on health and wellness is an important ________ that is creating opportunities in many areas for entrepreneurial firms.
social force
Which of the following is not one of the 4 areas of feasibility analysis discussed in the textbook?
societal feasibility
The two general categories of business models are ________ and ________.
standard; disruptive
Kaitlyn Harris is opening up a women's fashion boutique that will focus on professional women that are 18-30 years old. The age range of women that Kaitlyn plans to focus on is referred to as her ________ market.
target
The most important issues to consider in financial feasibility analysis are ________.
total startup cash needed, financial performance of similar businesses, and the overall financial attractiveness of the proposed venture
According to research in this area, it is more likely that an entrepreneur will get a new business idea through a ________ relationship than the alternatives.
weak-tie
Alex has a number of casual acquaintances that he interacts with infrequently. The relationships that Alex has with these people are referred to as ________ relationships.
weak-tie
What is an Entrepreneur?
•A person who identifies an opportunity to create value
