ENTR 3340 Exam 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.

Having an entrepreneurial orientation toward the control of resources means

that one focuses on accessing others' resources.

Corporate ventures are totally independent units, hence the equity portion of the compensation is particularly difficult to handle.

False

One study found that new ventures started within a corporation performed better than those started independently by entrepreneurs.

False

Corporate entrepreneurship is most strongly reflected in entrepreneurial activities as well as in top management orientations in organizations.

True

A new entry includes all of the following except

Creating a new brand name for your company

________ is not desirable when brainstorming is in process.

Criticism

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

five

A narrow-scope market strategy

is like putting all your eggs in one basket.

Which of the following is not one of the reasons cited for the failure of new ventures started within a corporation?

lack of resources

Packlane, a custom packaging company, allows organizations to design their own shipping boxes with custom branding. This is an example of the ________Blank trend.

maker

A ________Blank strategy that copies products that already exist and attempts to build an advantage through minor variations.

me-too

In the idea stage of the product planning and development process

systematic market evaluation is used.

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

test marketing stage.

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

the Gordon method

Entrepreneurial culture and growth orientation consists of all of the following except

the desire to grow at a slow and controlled pace.

If there is a good fit between the venture's bundle of resources and the external environment

the firm will be rewarded with superior performance.

Entrepreneurial activities that create something new of value either by redefining the company's current products or services, developing new markets, or forming more formally autonomous or semiautonomous units or firms best defines

new business venturing.

It is important for an entrepreneur to understand all aspects of the environment. Part of this ability is reflected in the individual's level of creativity, which generally increases with age and education in most individuals.

False

Most managers in a corporation are capable of being successful corporate entrepreneurs with the correct training.

False

Technological uncertainty

occurs because an alternative technology could be introduced by competitors.

Role models are individuals who give psychological support to the entrepreneur especially during the start-up phase.

False

Strategic orientation refers to the transformation of an organization through the rejuvenation of the key ideas on which it is built.

False

Sustainable entrepreneurship provides only environmental gains for others.

False

The McMullen-Shepherd Model helps identify the common traits of successful entrepreneurs.

False

The casual process of thinking starts with what one has and selects among possible outcomes.

False

The entrepreneurial challenge often lies in making creative mental leaps based on superficial similarities.

False

Individuals have stronger intentions to act when taking action is perceived to be ________Blank and desirable.

Feasible

Regarding entry into a new market, which of the following is true?

First movers gain expertise through participation.

Later movers do not face:

High-growth Markets

Which of the following answer options is not an example of a front end activity?

IT infrastructure

A broad-scope strategy

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

In which stage of the product planning and development process would it be appropriate to give product samples to a panel of potential customers?

product development stage

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

product life cycle

Which of the following statements is true?

Potential entrepreneurs should establish a formal method for monitoring and evaluating competitive products and services on the market.

An organization that wants to become more entrepreneurial must learn to be more productive with fewer resources.

True

Asking "How is this problem similar to problems I've already solved?" is an example of a connection task.

True

Comprehension questions are designed to stimulate entrepreneurs to think about their own understanding of the nature of the environment.

True

Entrepreneurial opportunities are those situations in which new goods, services, raw materials and organizing methods can be sold for financial or non-financial gain of the entrepreneur and/or other stakeholders.

True

Entrepreneurial thinking partly is about reducing doubt as to whether an opportunity for someone is also an opportunity for them specifically, and/or processing feedback from action steps taken.

True

Entrepreneurs' intentions are based on their perception of feasibility rather than someone else's impression of whether it is feasible.

True

For an organization with a traditional environment, it is best to facilitate an external process to establish an entrepreneurial environment.

True

For entrepreneurial actions that preserve nature to be considered sustainable entrepreneurship, they must also develop gains for the entrepreneur, others, and/or society.

True

In an encouraging climate for corporate entrepreneurship, rewards should be based on the attainment of established performance goals.

True

Internal corporate venturing consists of creating something new of value either by redefining the company's current products or services, developing new markets, or forming more formally autonomous or semiautonomous units or firms.

True

Most entrepreneurs indicate that their most significant venture was not their first one.

True

Previous start-up experience is a good predictor of starting subsequent businesses.

True

Structural similarities exist when the underlying mechanisms of the technology resemble, or match, the underlying mechanisms of the market.

True

The McMullen-Shepherd Model explains how knowledge and motivation influence two stages of entrepreneurial action.

True

The corporate entrepreneur encourages teamwork and uses a multi-disciplined approach, which violates organizational practices and structures taught in most business schools.

True

The effectuation process starts with what one has and selects among possible outcomes.

True

Traditionally managed firms typically punish failure.

True

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

a narrow-scope strategy.

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.

A young manager recognizes inflexibility in both staffing and production, slowing growth and loss of competitive advantage. This manager should encourage upper management to begin developing _______ within the company.

an entrepreneurial orientation

Franchising

reduces risk of downside loss.

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

Probably the most well-known and widely used technique for creative problem solving is

brainstorming.

The entrepreneurial attributes of persistence and determination, which are so beneficial when the new venture is on the "right course,"

can inhibit the ability of the entrepreneur to detect, and implement, change.

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

On the education background, entrepreneurs

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

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

collective notebook method

Questions designed to increase an entrepreneurs' understanding of the nature of the environment are known as

comprehension questions.

The opportunity recognition process contains all of the following except

reformation.

Which of the following is most effective in grief-recovery?

dual process

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

dynamically continuous innovations

Which of the following answer options is part of the first stage of an entrepreneurial strategy?

resource bundle

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

resources.

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

entrepreneur's market experience and knowledge

When conducting research on a new entry

extensive research is expensive in terms of time and money.

In addition to generating new ideas, ________ is an excellent method for initially screening ideas and concepts.

the focus group

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

trade associations

Brainstorming groups should

try to generate as many ideas as possible

Augmented reality is an example of the ________Blank trend.

wearable

The period of time when the environment is favorable for entrepreneurs to exploit a particular new entry is the

window of opportunity.

Focus groups use which of the following methods?

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

When entrepreneurs make do by applying combinations of the resources at hand to new problems and opportunities, this is known as

Bricolage

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.

Entrepreneurial action can be defined as times when entrepreneurs make do with resources at hand, applying those resources to new problems or opportunities.

False

Entrepreneurial activities tend to immediately affect the bottom line, and hence are seldom overlooked and receive extensive funding and support.

False

Entrepreneurially run firms are driven by controlled resources whereas traditionally managed firms are driven by perception of opportunity.

False

Which of the following statements is true?

Knowledge based on experience is unlikely to be learned in a classroom.

Which of the following statements is not true of the loss orientation approach to negative emotions?

Loss orientation is based on both avoidance and proactiveness.

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.

are designed to stimulate thought about entrepreneurs' understanding and feelings as they progress through the entrepreneurial process.

Reflection tasks

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

Self-efficacy

Which of the following statements is not true of the restoration orientation approach to negative emotions?

The restoration orientation approach requires oscillating between two alternate approaches to loss.

Parameter analysis consists of two main aspects that are

creative synthesis and parameter identification.

By entering a market later,

customer uncertainties have already been substantially reduced.

Which of the following answer options is not one of the three key guidelines that every web-optimized site should follow?

cut ads

An error of omission occurs when an entrepreneur

decides not to enter a market that is, in fact, desirable.

First movers face:

demand uncertainty

A disadvantage of being a first mover is

environmental instability.

In the ________ method, a word is written down, then another, creating a chain of ideas.

free association

Continuous innovations are described as

having the least disrupting influence on established consumption patterns.

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.

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

risk reduction strategies

Trends for the next decade include all of the following except

social media networks