Test 1

Which of the following is true about corporate entrepreneurship?

A company must be willing to invest money without a guarantee of a return in the short term

Focus groups use which of the following methods?

A moderator leads the group in an open, in-depth discussion.

Which U.S. Census publication gives statistics such as industry outputs, inputs, and operating data on manufacturing activity, by industry groups?

Annual Survey of Manufacturers

_______ identifies potential hazards and alternative strategies to meet business plan goals and objectives.

Assessment of risk

This problem-solving method requires the entrepreneur to list the properties of an item or problem and then look at each from a variety of viewpoints.

Attribute listing

This problem-solving method involves developing new ideas by thinking without constraints.

Big-dream approach

What type of innovation is illustrated by the ideas of the airplane and penicillin?

Breakthrough innovation

Which of the following creative methods involves having participants write down their ideas several times a day?

Collective notebook method

In what stage would you use the systematic market evaluation checklist?

Concept stage

________ is not desirable when brainstorming is in process.

Criticism

Which of the following is defined as having some disruptive influence on established consumption patterns?

Dynamically Continuous Innovations

Which is the best way to gain knowledge about a potential new entry?

Entrepreneur's market experience and knowledge.

With regard to the differences between the entrepreneurial and administrative focuses which of the following is correct?

Entrepreneurs rent or sporadically use resources; managers like to own resources

All of the following statements are true of sustainable entrepreneurship except:

Entrepreneurs with a positive attitude toward the natural environment never disengage these values to exploit an opportunity.

How many stages are in the product planning and development process?

Five

Which of the following would not occur in the second stage of establishing corporate entrepreneurship in an organization?

Identify an evaluation system for involved employees.

New product development falls under which of the four major components of corporate entrepreneurship?

Innovativeness

Distribution, pricing, and promotion of the product are discussed in which section of the plan?

Marketing

Which of the following is not true about the operations plan portion of the business plan?

Only service businesses need an operations plan.

________ includes initiative and risk taking, as well as competitive aggressiveness and boldness.

Proactiveness

In this method, instead of generating new ideas themselves, consumers are provided with a list of problems in a general product category.

Problem inventory analysis

Which of the following is a practical implication of using the dual process of learning from failure?

Recovery from loss offers an opportunity to increase one's knowledge of entrepreneurship.

Which of the following is not one of the three key stages of an entrepreneurial strategy?

Risk reduction strategies

Which among the following aspects most affects an entrepreneur's perception of feasibility?

Self-efficacy

Which of the following problem-solving techniques begins with group members not knowing the exact nature of the problem?

The Gordon method

________ is not one of the main perspectives an entrepreneur should consider when writing the business plan.

The employee's perspective

Which of the following is not a part of the introductory page?

The names and addresses of all managers

Which of the following is not a common reason why business plans fail?

The promotional strategy was not taken seriously

Which of the following is not a reason that first movers are better positioned to satisfy their customers?

They have less uncertainty over the nature of the market

Which of the following statements on contingency planning issues is not true?

To protect the reputation of the company, media should not be contacted during a crisis.

Which group in a professional network helps keep a new venture competitive?

Trade associations

All of the following are questions that should be considered in the environmental and industry analysis section of the business plan except:

What is my promotional strategy?

Offering a small product range to a small number of customer groups is:

a narrow-scope strategy.

The moral support network is different from the professional support network in that:

a professional support network includes finding a mentor.

An entrepreneur considering if what they are doing makes sense is an example of:

a reflection task

Creativity declines with:

age, education, lack of use, and bureaucracy.

The window of opportunity is part of:

assessing the attractiveness of a new entry opportunity.

When establishing corporate entrepreneurship in an organization rewards should:

be tied to the performance of the entrepreneurial unit created from the idea

All of the following would be an operations information need except:

break even numbers.

Imitation strategies:

can enhance a firm's performance.

Technological knowledge:

can lead to a new product that is the basis for a new entry.

By delaying entry, late movers:

can learn from the actions of first movers without incurring the same costs.

All of the following are reasons to enact a contingency plan, except:

changes in fashion.

Investors often place more emphasis on the entrepreneur's ________ than lenders do.

character

On the education background, entrepreneurs:

cite an educational need in the areas of finance, strategic planning, marketing, and management.

By entering a market later,

customer uncertainties have already been substantially reduced.

The section of the business plan in which the entrepreneur identifies changes occurring on the national and international level is the:

environmental and industry analysis.

In emerging industries:

environmental changes are highly likely

A disadvantage of being a first mover is:

environmental instability

Barriers to entry include all of the following except:

environmental instability

Before beginning the business plan, the entrepreneur should define the venture's goals and objectives. These goals should be:

feasible

The organization plan describes the business':

form of ownership.

Continuous innovations are described as

having the least disrupting influence on established consumption patterns.

Later movers do not face:

high growth markets.

When collecting marketing information the entrepreneur should:

identify competitors.

To be the basis of a firm's superior performance over competitors for an extended period of time, valuable and rare resources need to be:

inimitable

A narrow-scope market strategy:

is like putting all your eggs in one basket.

A broad-scope market strategy:

is used to reduce market uncertainty.

When evaluating business plans _________ are primarily concerned with the four Cs of credit.

lenders

Customer uncertainty can take all of the following forms except:

not knowing where to buy the product

Technological uncertainty:

occurs because an alternative technology could be introduced by competitors.

A broad-scope strategy:

opens the firm up to many different "fronts" of competition.

Creative synthesis is an important aspect of the ________ method of creative problem solving.

parameter analysis

The ________ is defined as the stages each product goes through from introduction to decline.

product life cycle

The opportunity recognition process contains all of the following except:

reformation

The basic building blocks to a firm, or the inputs into the production process, are:

resources.

The first step in establishing corporate entrepreneurship in an organization is:

securing commitment from top management

The business plan presentation for potential investors:

should enable the entrepreneur to "sell" his or her business concept in a designated period of time.

Within the moral-support network, most entrepreneurs indicate that their ________ are their biggest supporters

spouses

The stage in the product planning and development process in which actual sales results are available is the:

test marketing stage.

Having an entrepreneurial orientation toward the control of resources means:

that one focuses on accessing others' resources.

In Stage Two of the McMullen-Shepherd Model:

the entrepreneur decides whether or not there is an opportunity for him or her personally.

In Stage One of the McMullen-Shepherd Model:

the entrepreneur decides whether or not there is an opportunity for someone.

The largest source of new product ideas is:

the entrepreneur's research and development.

Density, in regards to a social network, refers to:

the extensiveness of ties between two individuals.

Reverse brainstorming is much like brainstorming except that:

the process usually involves identification of everything wrong with an idea.

The depth and detail of a business plan depend on:

the size and scope of the new venture.

All these are characteristics of an entrepreneurial environment except:

there are short term horizons.

The business plan is designed to guide the entrepreneur:

through the first year of operations.

Brainstorming groups should:

try to generate as many ideas as possible.