ENTR 3100 Midterm Review

The immigrant mindset includes: a. Working with a generous purpose b. Staying on your toes c. All of the above. d. Always looking for opportunities e. Following your passion

All of the above

As of 2015, the largest U.S. trading partners included

Canada, China, and Mexico.

In the study of contemporary entrepreneurship, what one concept reoccurs?

Entrepreneurship is interdisciplinary

_______________ is the economic basis for all entrepreneurial activity.

Free enterprise

One researcher believes that the social mission, not wealth creation, is the most important criterion. Who was this researcher?

J. Gregory Dees

SEC stands for the

Securities and Exchange Commission

Which of the following statements is not true of venture capitalists?

They are interested in trying to manage firms themselves.

Creativity was once regarded as an exclusively inherited trait.

True

Immigrants tend to make a disproportionate impact on new business startup

True

Entrepreneurs and gazelles have been credited with making disproportionate contributions to all but which of the following?

Unemployment

Mountain gap strategies refer to

Unique Markets

Which of the following terms would be associated with the left hemisphere of the brain?

abstract

The Three A's of Metrics are

actionable, accessible, auditable

When should a potential franchisee receive the FDD (Franchise Disclosure Document)?

at least ten days before signing a contract or paying any money

The dynamic states model depicts ventures as

being dependent on their environment for survival.

An informal risk capitalist is referred to as:

business angel

Entrepreneurs themselves perceive the concept of risk in which of the following ways?

calculated risk taking

The most common source of debt financing is

commercial banks.

What criteria must be met in the design methodology approach?

concept feasibility

One could correlate _____ with a high energy level.

creativity

Of the following, which is not typically identified as a bootstrapping technique?

hiring seasoned veterans

A gap or difference between expectations and reality defines

incongruities.

Which of the following would be most commonly used for intermediate-term financing?

leasing companies

"Piggybacking" one's way into a new business involves using a ____approach.

new-old

Which of the following terms is synonymous with social lending?

peer-to-peer (P2P) lending

Which of the following may be the greatest risk to the well-being of the entrepreneur?

psychic risk

What is an often overlooked asset when acquiring a new business?

records

Which of the following is an intangible asset?

reputation

A person can develop their own creativity by

seeing new and different relationships in people, objects, and places around them.

The first step in planning a strategy of entrepreneurship for enterprise is

sharing the vision of innovation

The results of a profile analysis enable the entrepreneur to judge

the business potential.

Which evaluation method enables an entrepreneur to judge the potential of the business?

the profile analysis

Product/market problems involve which of the following?

unclear business definition

Using the failure prediction model discussed in the chapter, the risk of failure can be reduced by:

using less debt as initial financing and generating revenue in the initial stages.

When does a business have to increase its sales annually to net as much as it did in the previous year?

when profits are not rising as fast as sales

Which of the following characteristics is most important to an entrepreneur?

Management skills

Which is not a start-up expense? a. depreciation b. supplies c. rent d. advertising

a. depreciation

Which of the following is not an aspect of the "dark side" of entrepreneurship?

bouts of euphoria

Ray Kroc's development of McDonald's would be a good illustration of which form of innovation?

extension

A decision to sell pharmaceuticals that have not been cleared with the Federal Drug Administration is an example of a(n)

illegal and unethical decision.

Internal venture capital that is set aside for special entrepreneurial projects is termed:

intracapital

What is a critical consideration when assessing customer availability?

length of time needed to determine who the customers are, as well as their buying habits

Which of the following could not be considered a trend that signals a shift in the current paradigm of the population?

market

Short-term debt is

paid back in one year.

According to the text, which of the following could be considered a "deal killer" by a venture capitalist?

the excessive founder salaries

An analysis of the competition should look for ______.

unscrupulous practices

In smaller ventures, the ethical influence of the owner is more powerful than in larger corporations because his or her leadership is not diffused through layers of management.

True

In an innovative climate, failure is viewed as

a learning experience.

The four phases, in order, in the creative process are

background or knowledge accumulation, incubation, idea experience, and evaluation and implementation.

Which of the following is not a common characteristic of entrepreneurs?

lack of motivational drive

Major trends in the venture capital field today include all of the following except

less specialized and more homogenous funds.

An L3C is a new legal form for social enterprises known as

ow-profit, limited liability companies.

Michael Gerber, the author of The E-Myth, explains that the failure of most small businesses is due to

owners being more technical than entrepreneurial

TBL focuses on all the following except

precedence.

Which of the following is not one of the phases in the creative process?

preliminary investigation

Which of the following costs do not add to the cost of franchising? a. prepaid utility bills b. opening product inventory c. insurance d. legal and professional fees

prepaid utility bills

Which of the following schools of thought is not a micro view school of thought?

the inherited business school of thought

Entrepreneurs sense potential in business problems by asking

what if and why not?

Which of the following economists wrote about entrepreneurship and its impact on economic development?

Joseph Schumpeter

During the prestart-up and the start-up phases of a new venture, which of the following is not considered one of the crucial factors for success? a. availability of products b. expected growth and price c. price and timing d. uniqueness of venture and price

a. availability of products

Which of the following activities does not characterize the social entrepreneur? a. operating with a low sense of accountability b. engagement in continuous innovation and learning c. adoption of a mission d. recognition and relentless pursuit of opportunities

a. operating with a low sense of accountability

The displacement school of thought can be divided into which three groups?

economic, cultural, and political

Which of the following mental habits inhibit creativity and innovation?

either/or thinking, stereotyping

An approach developed as a criteria selection list from which entrepreneurs can gain insights into the viability of their venture is the

feasibility criteria approach.

When starting a business, which of the following sources of financing are least likely to be used?

insurance companies

Which of the following is not an example of recognizing relationships in creativity? a. using a 330-pound defensive football player as a running back and wide receiver b. combining combustion engine technology with the wheel to create the automobile c. introducing Sierra Mist to the market to compete with Sprite d. adding fruit juice to soft drinks to make Slice

introducing Sierra Mist to the market to compete with Sprite

All of the following are characteristics of a creative climate except a. restricted communication with outsiders. b. an enjoyment in experimenting with new ideas. c. a large variety of personality types. d. a willingness to accept change.

restricted communication with outsiders.

Bottom-line measures of economic performance include all of the following except: a. cost of underemployment. b. global competition. c. personal income. d. job growth

b. global competition.

If we accept the argument that social entrepreneurship is a continuum, at one extreme would be social entrepreneurs driven exclusively by producing social benefits; at the other, would be

social entrepreneurs motivated by profitability with social benefits being the means

What is not a factor when looking at the condition of the inventory? a. suppliers b. whether it is out of date c. recorded and physical check of the inventory to verify the existence of the inventory d. salability

suppliers