Social Entrepreneurship Midterm

Which of the following statements is true of late career entrepreneurs?

A do-it-yourself approach is a challenge for late career entrepreneurs.

Lifestyle firms often maximize their profitability over a long term.

False

Small businesses are characterized by novelty in their products.

False

Small businesses do not usually hire people with atypical work histories.

False

The most frequently occurring element of the BRIE model is boundary.

False. Intention is the desire to start a business and is the most frequently occurring element of the BRIE model.

Which of the following is true of virtual instant global entrepreneurship (VIGE)?

It is a process that uses the Internet to quickly create businesses with a worldwide reach.

Which of the following is true of a small business?

The external control preference of a small business is to control the firm.

Adjusting to the entrepreneurial life is one of the challenges faced by late career entrepreneurs.

True

Competencies are forms of business-related expertise.

True

High-growth ventures start small but are intended to grow rapidly.

True

Role conflict and succession are two challenges typical to family businesses.

True

Crowdfunding refers to:

financing a business online through the involvement of others who provide donations, loans, or investments.

Mindshare refers to:

the degree of attention a target market pays to an idea or organization.

Which of the following is true of entrepreneurial teams?

A team can also face conflict over idea ownership, shared goals, and how to make decisions, especially when the team is evenly split on choices.

In a(n) _____ professionalization, businesses have founders or owners who are passionate about one or two of the key business functions, such as sales, operations, accounting, finance, or human resources.

A specialized business professionalization is a situation that occurs when businesses have founders or owners who are passionate about one or two of the key business functions, such as sales, operations, accounting, finance, or human resources.

_____ is an examination-based acknowledgement that the firm is owned and operated by a woman or minority.

Certification consists of proving that the business is truly owned and operated by a woman or minority. It is an examination-based acknowledgement that the firm is owned and operated as specified.

Professionalization refers to a business action that has been widely adopted within an industry or occupation.

False. Professionalization is the extent to which a firm meets or exceeds the standard business practices for its industry.

Time management is the process of intergenerational transfer of a business.

False. Succession is the process of intergenerational transfer of a business.

Which of the following is true of a lifestyle firm?

Lifestyle firms typically have sales of $25,000 a year or less, which provides enough profit or salary to supplement an income but usually not enough on which to live.

The _____ of a business is characterized by its products or services being different or new.

Novelty

_____ planners are completely passive, waiting for cues from the environment to determine what actions to take.

Reactive planners are completely passive, waiting for cues from the environment to determine what actions to take.

Which of the following is a reward that is rarely mentioned by entrepreneurs?

There are rewards that entrepreneurs mention less often than working people in general. These are social rewards, like the respect or admiration of friends, or power over others, and family rewards, like continuing a family tradition in business.

Entrepreneurs who do not plan and prefer to let all actions be dictated by their routines are called _____.

Habit-based planners do not really plan at all because their actions are dictated by their routines

Which of the following is true of a high-performing small business?

High-performing small businesses grow at rates more like 5 to 15 percent a year, adding employees, and often growing through multiple locations and higher levels of professionalization, in order to maximize their profitability over a long term.

Which of the following is true of a factor-driven economy?

It consists of nations where most industry relates to farming and extracting raw materials.

_____ begin their businesses after having retired or resigned from work in corporations at age 50 or later.

Late career entrepreneurs, also known as second career entrepreneurs, are people who begin their businesses after having retired or resigned from work in corporations at age 50 or later.

Which of the following is a reward that is a universally mentioned reward by entrepreneurs?

Nearly all entrepreneurs talk about three key rewards—flexibility, a livable income, and personal growth. Flexibility rewards refer to the ability of business owners to structure their lives in the way that best suits their needs.

A(n) _____ competency is the ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business such as time, information, location, financing, raw materials, and expertise.

Resource

_____ describes the kind of problem that arises when people have multiple responsibilities, such as parent and boss, and each makes different demands on them

Role Conflict

A _____ is a government contracting fund earmarked for particular kinds of firms, such as small businesses, minority-owned firms, women-owned firms, and the like.

Set-asides are government contracting funds which are earmarked for particular kinds of firms, such as small businesses, minority-owned firms, women-owned firms, and the like.