ELE 3010 Parnell Midterm Exam

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(T/F) Before writing the business plan, an entrepreneur should conduct an objective self-assessment of his or her abilities which includes areas such as planning and sales skills.

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(T/F) Bricolage is the entrepreneurs making do by applying a combination of the resources at hand to new problems and opportunities

false

(T/F) In encouraging a culture for corporate entrepreneurship, using older, proven, technology is recommended in order to increase stability in the organization

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(T/F) It is recommended that an entrepreneur avoid using the Internet as a resource for finding information to write a business plan because the information found there is often incorrect and unreliable.

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(T/F) The McMullen-Shepherd Model helps identify the common traits of successful entrepreneurs

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(T/F) The business plan addresses only short term decision making.

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(T/F) Three major types of political risks that might be present are operating risk, transfer risk, and ownership risk

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(T/F) Using the big-dream approach, a new idea is developed through a list of related issues or suggestions

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(T/F) When resources are limited, the entrepreneur can offer a lawyer stock in exchange for legal services.

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(T/F) a reflection task would involve thinking about what strategies should be used to solve a problem

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(T/F) customers always embrace change in products and services

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(T/F) entrepreneurial opportunities are those situations in which new goods, services, raw materials and organizing methods can be sold at greater than their production cost

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(T/F) entrepreneurially managed firm structure is usually flat with multiple informal networks

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(T/F) entrepreneurially run firms are driven by controlled resources whereas traditionally managed firms are driven by perception of opportunity

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(T/F) generally, independent, venture-capital-based start-ups by entrepreneurs tend to outperform corporate startups significantly

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(T/F) in order to be the basis for a firm's superior performance, a bundle of resources must be valuable, rare, and imitable

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(T/F) in the McMullen-Shepherd Model the first stage is the evaluation stage

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(T/F) newness of a new entry is always an advantage

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(T/F) the drawback with problem inventory analysis is that it cannot be used to test a new product idea

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(T/F) the effectuation process starts with what one has and selects among possible outcomes

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(T/F) the most commonly issued type of patent is the plant patent

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(T/F) the period of time when the environment is favorable for entrepreneurs to exploit a particular new entry is called the window of opportunity

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(T/F) the question "What is technology all about?" is a comprehension question

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(T/F) the three main categories of patents are design, utility, and provisional patents

patent

A _______ is a contract between the government and an investor.

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

A broad-scope strategy: -opens the firm up to many different "fronts" of competition -offers a way of reducing competition-related risks -is vulnerable to the risk that market demand does not materialize as expected and/or changes overtime -focuses the firm on producing customized products, localized business operations, and high levels of craftmanship

infrastructure

Concerns regarding roads, electricity, banking facilities, communication, and educational systems have to do with a country's ________.

the library of congress

Copyrights are registered with ______

product life cycle

the _______ is defined as the stages each product goes through from introduction to decline

resources

the basic building blocks to a firm, or the inputs into the production process are: -strategy -resources -competition -liabilities

primary data

observation, interviewing, and focus groups are examples of collecting: -marketing data -primary data -target data -secondary data

a narrow-scope strategy

offering a small product range to a small number of customer groups is: -an imitation strategy -a broad-scope strategy -a way of reducing market uncertainties -a narrow-scope strategy

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Once accepted, the trademark is published in the Trademark Official Gazette for ___ days to allow any party to oppose or request an extension to oppose the use of the mark

frequently suggest other new products

Patents filed with the U.S. Patent Office: -are property of the U.S. Government -frequently suggest other new products -are only accessible to public limited companies -are not disclosed to the public

marketing plan

The ________ is the written statement of marketing objectives, strategies, and activities to be followed in the business plan.

proactiveness

_____ includes initiative and risk taking, as well as competitive aggressiveness and boldness

Marketing research

_____ is the process of gathering information in order to determine who will buy the product and what is the most appropriate distribution channel

International entrepreneurship

_______ is the process of an entrepreneur conducting business activities across nation borders

risk

_______ refers to the probability, and magnitude, of a downside loss

environmental analysis

an assessment of external uncontrollable variables that may impact the business plan is known as:

focuses on the opportunity not the venture

an opportunity assessment plan: -is longer than a business plan -is the same thing as a business plan -has a lot of computer-based spreadsheets -focuses on the opportunity, not the venture

copyrights

authors or publishers of software are protected under: -trademarks -utility patents -trade secrets -copyrights

having the least disrupting influence on established consumption patterns

continuous innovations are described as:

environmental and industry analysis

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

claims section

the section of the patent application which provides the criteria by which any infringement will be determined is the ________

big-dream approach

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

breakthrough innovation

what type of innovation is illustrated by the ideas of the airplane and penicillin

dynamically continuous innovation

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

energy

which of the following is not an aspect of nonverbal or hidden language? -time -space -energy -business relationships

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

which of the following is true about corporate entrepreneurship? -top management should not be involved in the process -teams should be segmented by department -a company must be willing to invest money without a guarantee of a return in the short term - equity in a new venture should not be used as a reward due to its uncertain value

The Gordon method

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

creating a new brand name for your company

A new entry includes all of the following except: -offering a new product to a new market -offering an established product to a new market -creating a new brand name for your company -creating a new organization

there are short term horizons

All these characteristics of an entrepreneurial environment except: -there are short term horizons -new ideas are encouraged -it uses a multidiscipline teamwork approach -the organization operates on frontiers of technology

try to generate as many ideas as possible

Brainstorming groups should: -be serious and work oriented -encourage criticism of ideas from other participants in the group -try to generate as many ideas as possible -contain an expert in the field to be discussed

a more direct channel of distribution than consumer markets

Business-to-business marketing involves

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

By delaying entry, late movers: -can learn from the actions of first movers without incurring the same costs -secure the window of opportunity -have less information about market demand -can avoid high entry barriers

documenting the current strategy of each primary competitor

Competitor analysis begins with: -identifying which competitors are most successful -gathering samples of the competitors product(s) -discovering each competitors advertising -documenting the current strategy of each primary competitor

marketing

Distribution, pricing, and promotion of the product are discussed in which section of the plan? -marketing -merchandising -organization -production

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

In regards to the differences between the entrepreneurial and administrative focuses which of the following is correct? -entrepreneurs tend to use a hierarchical management structure; managers use a more fluid, flat approach -entrepreneurs rent or sporadically use resources; managers like to own resources -entrepreneurs focus on slow steady growth and managers focus on rapid growth -entrepreneurs are driven by controlled resources; managers by opportunity

dividing the market into smaller homogeneous groups

Market segmentation is the process of:

distribution

The _______ element of the marketing mix involves decisions as to what is the most appropriate channel.

target market

The _______ is the specific group of potential customers toward which a venture aims its marketing plan

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

The business plan presentation for potential investors: -should be presented only in writing -should provide the entrepreneur's own perspective -should enable the entrepreneur to "sell" his or her business concept in a designated period of time -should contain no negative projections

the size and scope of the new venture

The depth and detail of a business plan depend on _______

securing commitment from top management

The first step in establishing corporate entrepreneurship in an organization is: -developing ways to get closer to customers -learn to be more productive with fewer resources -finding mid level managers to champion ideas -securing commitment from top management

Product, price, distribution, and promotion

The marketing mix consists of:

form of ownership

The orgainzational plan descibes the business' __________

description of the venture

The part of the plan that describes the location and size of the business, the personnel and office equipment that will be needed, and the history of the venture is called the: -description of the venture -executive summary -production plan -organizational plan

observation

The simplest approach to gathering primary information is:

identify competitors

When collecting marketing information, the entrepreneur should:

venture capital

When determining how much help is needed to write the business plan, an entrepreneur should conduct a self-assessment. In this self-assessment which skill set would not be considered? -people management -venture capital -product design -organizing

lenders

When evaluating business plans, _______ are primarily concerned with the four Cs of credit

education

Which among the following influences whether customers are able to use the good or service properly and whether they are able to understand the firm's advertising or other promotional messages?

ownership risk

Which among the following political risks is considered the biggest risk of all?

Patent and Trademark Office

Which government office is responsible for the federal registration of trademarks?

encourages colleagues to follow hierarchy

Which is NOT a leadership characteristic of a corporate entrepreneur according to the text? -persistence -encourages teamwork -encourages colleagues to follow hierarchy -flexibility and vision

Defining the business situation

Which is the first step in preparing a marketing plan? -defining the business situation -evaluating goals and objectives -identifying strengths and weaknesses -defining the target market

the promotional strategy was not taken seriously

Which of the following is NOT a common reason why business plans fail? -the entrepreneur has no experience in the planned business -no customer need was established -objectives are not measurable -the promotional strategy was not taken seriously

the names and addresses of all managers

Which of the following is NOT part of the introductory page? -the name and address of the company -the names and addresses of all managers -amount of financing needed -statement of confidentiality

design patent

Which of the following is a contract that grants the owner protection, based on the appearance of an object?

Private companies are not included in this act.

Which of the following is true regarding the Sarbanes-Oxley Act? -It only applies to companies that make over $10 mil in gross revenue -The act only covers a narrow range of corporate governance activity -Private companies are not included in this act. -The act does not cover fraud via TV or radio

The business plan describes both internal and external elements

Which of the following statements is true? -once made, a business plan should not be changed -the preliminary business plan should be prepared by a lawyer -The business plan describes both internal and external elements -Most business plan resources on the internet are too complex and expensive to be of use to the new venture

define the purpose or objectives

Which stage of marketing research is considered to be the most difficult for an entrepreneur due to lack of knowledge or experience in marketing?

entrepreneurial action within an organization

corporate entrepreneurship is best described as: -entrepreneurial action within an organization -the process of hiring consultants to teach a firm how to be more creative -the hiring of former entrepreneurs -the process of buying acquiring entrepreneurial firms

the desire to grow at a slow and controlled pace

entrepreneurial culture and growth orientation consists of all the following except: -the desire to grow at a slow and controlled pace -encouraging employees to generate ideas -being creative -focusing on opportunities

a moderator leads the group in an open, in-depth discussion

focus groups use which of the following methods? -a moderator asks each individual in the group questions, interview style -each participant obtains new ideas and solutions by focusing on problems -each participant fills out a questionnaire, following by an individual exit interview -a moderator leads the group in an open, in-depth discussion

are an informal method of gathering market information

focus groups: -discuss information in a formal and standardized procedure -should be led by the entrepreneur -consist of 20 to 30 potential customers -are an informal method of gathering market information

exist when the basic (relatively easy to observe) elements of the technology resemble the basic elements of the market

in regards to thinking structurally, superficial similarities: -exist when supply is less than demand -exist when the underlying mechanisms of the technology resemble the underlying mechanisms of the market -exist when the basic (relatively easy to observe) elements of the technology resemble the basic elements of the market -exist when the entrepreneurs engage in bricolage

secondary data

information that already exists is called _______

the process usually involves identification of everything wrong with an idea

reverse brainstorming is much like brainstorming except that: -the technique is based on finding solutions -the process usually involves identification of everything wrong with an idea -the group need not be careful to maintain good morale -criticism is not allowed