ENTR321 Exam 1
Most entrepreneurial actions are ethical and legal. Sometimes, however, they are unethical and/or illegal. Choose which category the following action falls into: Giving a gift of $50,000 to a foreign minister to secure a business contract with his country (a customary practice in his country) and then writing off the gift as a tax-deductible item
Ethical & Illegal
Most entrepreneurial actions are ethical and legal. Sometimes, however, they are unethical and/or illegal. Choose which category the following action falls into: Producing and selling a drug that will reduce heart attacks but failing to complete all of the paperwork that must be filed with the government prior to selling the product
Ethical & Illegal
Most entrepreneurial actions are ethical and legal. Sometimes, however, they are unethical and/or illegal. Choose which category the following action falls into: Manufacturing a new fuel additive that will increase gas mileage by 10 percent
Ethical & Legal
Most entrepreneurial actions are ethical and legal. Sometimes, however, they are unethical and/or illegal. Choose which category the following action falls into: Producing a vaccine, already approved by the Food and Drug Administration, that will retard the growth of bone cancer
Ethical & Legal
Bootlegging
Research in which motivated individuals secretly organize the innovation process. It usually is a bottom-up, non-programmed activity, without the official permission of the responsible management, but for the benefit of the company.
Most entrepreneurial actions are ethical and legal. Sometimes, however, they are unethical and/or illegal. Choose which category the following action falls into: Obtaining inside information from another brokerage that results in the entrepreneur netting more than $2 million
Unethical & Illegal
Most entrepreneurial actions are ethical and legal. Sometimes, however, they are unethical and/or illegal. Choose which category the following action falls into: Offering a member of the city council $100,000 to vote to give the entrepreneur the local cable television franchise
Unethical & Illegal
Most entrepreneurial actions are ethical and legal. Sometimes, however, they are unethical and/or illegal. Choose which category the following action falls into: Knowing that 1 percent of all tires have production defects but shipping them anyway and giving mileage allowances to anyone whose tires wear out prematurely
Unethical & Legal
Most entrepreneurial actions are ethical and legal. Sometimes, however, they are unethical and/or illegal. Choose which category the following action falls into: Publishing a newspaper story that wrongly implies but does not openly state that the governor (a political opponent of the newspaper) is deliberately withholding state funds for education in the newspaper's effort to win nomination support for its candidate from the state teachers union
Unethical and Legal
A code of conduct is a statement of ethical practices or guidelines to which an enterprise adheres. a. True b. False
a
A decision to sell pharmaceuticals that have not been cleared with the Federal Drug Administration is an example of a(n) a. illegal and unethical decision. b. illegal and ethical decision. c. legal and ethical decision. d. legal and unethical decision.
a
A decision to sell toys that pass minimum safety standards but can often result in minor accidents to children is an example of a(n) a. legal and unethical decision. b. legal and ethical decision. c. illegal and ethical decision. d. illegal and unethical decision
a
Characteristics often attributed to the entrepreneur include: a. Commitment, determination, and perseverance b. Power hungry c. Ability to be indecisive d. Prefers to be a loner
a
Clever bootlegging of ideas refers to secretly working on new ideas on company time as well as on personal time. a. True b. False
a
During the past ten years, new business incorporations averaged nearly 600,000 per year. a. True b. False
a
Entrepreneurial cognition is, in part, about understanding how entrepreneurs use simplifying mental models to make assessments, judgments, and decisions about opportunities. a. True b. False
a
Entrepreneurs are aggressive catalysts for change within the marketplace. a. True b. False
a
Every person has the _____ and _____ to pursue a career as an entrepreneur. a. potential; free choice b. stubbornness; stupidity c. rights; regulations d. obligation; duty
a
Groups that function outside traditional lines of authority permitting rapid turnaround of new ideas as well as instilling a high level of group loyalty are called: a. skunk works. b. champions. c. strategic innovators. d. multiple approaches.
a
Individuals may avoid corporate entrepreneurial behavior due to the impact of traditional management techniques. a. True b. False
a
Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Allow bootlegging of ideas. a. True b. False
a
Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Encourage a bias for action. a. True b. False
a
Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Provide feedback on performance. a. True b. False
a
One reason that corporate entrepreneurship has become popular is because it allows corporations to tap the innovative talents of the personnel. a. True b. False
a
Researchers have identified specific factors that organizations can concentrate on in helping individuals develop more entrepreneurial behavior. a. True b. False
a
Secretly working on new ideas on company time as well as on personal time is referred to as a. bootlegging. b. skunk works. c. interactive learning. d. champion.
a
Social obligation, social responsibility, and social responsiveness are all ways firms view their interactions with society. a. True b. False
a
The decision to behave entrepreneurially is the result of the interaction of: a. the individual's personal entrepreneurial mind-set and an opportunity. b. the relevant business environment. c. a new market. d. the existence of a viable business idea.
a
The first step in planning a strategy of corporate entrepreneurship is sharing the vision of innovation that executives wish to achieve. a. True b. False
a
The first step in planning a strategy of entrepreneurship for enterprise is a. sharing the vision of innovation. b. identifying specific objectives. c. applying the exact tools of the entrepreneur. d. developing radical innovation.
a
The generation of the twenty-first century may become known as generation E because it is becoming the most entrepreneurial generation since the Industrial Revolution. a. True b. False
a
The macro view of entrepreneurship includes external processes that are sometimes beyond the control of the entrepreneur. a. True b. False
a
The macro view of entrepreneurship presents factors exhibiting a strong a. external locus of control. b. environmental locus of control. c. contemporary locus of control. d. internal locus of control.
a
The major thrust of corporate entrepreneurship is to a. encourage innovation. b. increase morale. c. raise profitability. d. encourage greater risk taking
a
There is a certain psychic risk involved with entrepreneurship. a. True b. False
a
Throughout the years, many myths have arisen about entrepreneurship as a result of? a. a lack of research about entrepreneurship b. a destructive attitude by government c. a lack of interest in the field d. a total disregard for the truth
a
Transformational triggers in a corporate entrepreneurial environment initiates the need for a. strategically adapting to change. b. achieving higher productivity standards. c. laying off workers. d. changing company location.
a
Which of the following may be the greatest risk to the well-being of the entrepreneur? a. psychic risk b. social risk c. family risk d. financial risk
a
Which of the following terms refers to the systematic evolution of a product or service into newer or larger markets? a. incremental innovation b. radical innovation c. strategic management d. collective entrepreneurship
a
Which of the following would not be considered as encouraging to an entrepreneurial environment? a. uniform compensation b. top management sponsorship of entrepreneurship c. identifying potential entrepreneurs d. promotion of entrepreneurship through experimentation
a
in the model of sustained corporate entrepreneurship discussed in the text, a transformational trigger can be internal or external to the company. a. True b. False
a
A loss orientation toward grief recovery in dealing with failure can sometimes lessen negative emotional reactions. a. True b. False
b
According to the Model of Entrepreneurship Motivation, the entrepreneur's expectations are not compared with the actual or perceived outcomes of the firm. a. True b. False
b
Commitment, determination, and perseverance are the only characteristics one needs to become a successful entrepreneur. a. True b. False
b
Discourage joint projects and ventures among different departments. a. True b. False
b
Entrepreneurs always start their business at a young age. a. True b. False
b
Entrepreneurs and gazelles have been credited with making disproportionate contributions to all but which of the following? a. economic renewal b. unemployment c. innovation d. job creation
b
Entrepreneurs are born not made. a. True b. False
b
Entrepreneurs are high risk takers. a. True b. False
b
Ethics represents a set of principles prescribing a behavioral code that does not include moral duty and obligations. a. True b. False
b
Firms do not need to alter management techniques to encourage corporate entrepreneurship since it tends to occur naturally. a. True b. False
b
Gazelles are almost always high tech. a. True b. False
b
In restructuring corporate thinking, top management should a. identify potential entrepreneurs after an innovation program is in operation. b. promote entrepreneurship through experimentation. c. create diversity and order in strategic activities. d. make the entrepreneur follow strict corporate guideline
b
Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Develop a well-defined hierarchical structure, and stick to it. a. True b. False
b
Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Encourage structured activity. a. True b. False
b
Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Fire those who make mistakes as a way of creating a good example for others. a. True b. False
b
Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Make extensive use of formal meetings. a. True b. False
b
Mountain gap strategies refer to: a. unique products b. unique markets c. unique resources d. unique locations
b
Set implicit goals. a. True b. False
b
Skunk works are project groups that work within the traditional lines of authority. a. True b. False
b
Systematic evolution of a product or service into newer or larger markets is referred to as radical innovation. a. True b. False
b
The "corridor principle" states that entrepreneurs often get stuck on one idea. a. True b. False
b
The "dark side" of entrepreneurship refers to the stress that entrepreneur's experience. a. True b. False
b
The resources of the organization are irrelevant to the ability of the corporate entrepreneur to implement an idea. a. True b. False
b
The statement, "with every new venture launched, new and unintended opportunities often arise," would be associated with: a. the Dilbert principle b. the corridor principle c. the opportunity principle d. the entrepreneurial principle
b
The word entrepreneur is derived from the Spanish word entreprendre, meaning "to undertake." a. True b. False
b
Today's entrepreneurs are faced with few ethical decisions because the legal system imposes greater penalties on wrongdoers. a. True b. False
b
Which of the following are specific factors identified by researchers, that organizations can concentrate on in structuring an entrepreneurial climate. a. skunk works, multiple approaches, and vision b. top management support, time, resources, rewards, and organizational boundaries c. rewards, resources, innovation, and vision d. radical innovation, incremental innovation, and vision
b
Which of the following helps account for the rise of interest in corporate entrepreneurship? a. An increase government regulation of small entrepreneurs. b. An increase in corporations losing some of their best people. c. A decrease in the number of sophisticated competitors. d. A general increase in the number of competitors.
b
Which of the following is an obstacle to corporate entrepreneurship? a. a system of feedback and positive reinforcement b. traditional management techniques c. orientation to the market d. rewards based upon results
b
Which of the following is not a common myth about entrepreneurs? a. All you need is money to be an entrepreneur. b. Entrepreneurs today are considered heroes. c. Entrepreneurs are academic and social misfits. d. Entrepreneurs are doers, not thinkers.
b
Which of the following statements is true? a. Entrepreneurship has nothing to do with creating incremental wealth. b. Entrepreneurship is the ability to create and build a vision from practically nothing. c. Entrepreneurship is simply obtaining financing and starting a business. d. Entrepreneurship is pure luck.
b
All of the following are reasons for the growth of corporate entrepreneurship except a. a rapidly growing number of new and sophisticated competitors. b. a sense of distrust in the traditional methods of corporate management. c. a desire to dramatically increase profitability. d. an exodus of some of the best people out of corporations.
c
Areas of risk to the entrepreneur include a. family, business, social. b. financial, product, market c. career, family, psychic. d. psychic, social, physical.
c
Collective entrepreneurship, as a concept, refers to a. socialist enterprising. b. the collective spirit of innovation that resides in the firm's founder. c. entrepreneurial thinking that is diffused throughout the company. d. the joint recognition of the CEO and CFO as champions of innovation.
c
The "corridor principle" is best described by which of the following statements? a. Being in the right place at the right time. b. If at first you don't succeed, try, try, again. c. With every new venture launched, new and unintended opportunities arise.
c
The entrepreneurial ego can cause the entrepreneur to a. have a sense of pessimism. b. take too few risks. c. take characteristics that usually lead to success to the extreme. d. ignore government regulations
c
The macro view can be broken down into which three areas? a. financial/capital, strategic, and opportunity b. displacement, trait, and financial c. environmental, financial, and displacement d. entrepreneurial trait, opportunity, and strategic
c
The micro view is divided into which three theories? a. environmental, financial, and displacement b. entrepreneurial, financial, displacement c. venture opportunity theory, entrepreneurial, strategic d. strategic, environmental, and opportunity
c
The second step in planning a strategy of entrepreneurship for the enterprise is a. sharing the vision of innovation. b. applying the exact tools of the entrepreneur. c. developing and encouraging innovation. d. identifying specific objectives.
c
The word entrepreneur is derived from the French entreprendre, which is translated as a. to compete b. to apprehend c. to undertake d. to enter and dare
c
When entrepreneurs believe that their accomplishments and setbacks are within their own control and influence, they are exhibiting a. persistent problem-solving. b. opportunity orientation. c. internal locus of control. d. external locus of control.
c
Which of the following is not characteristic of the "dark side" of entrepreneurship? a. a desire for success b. an external optimism c. knowing when to take a vacation d. a sense of distrust
c
OPIC
can cover three types of risk: currency inconvertibility insurance, expropriation insurance, and political environment insurance.
The first step taken to go international is
conduct research
A __________ is a statement of ethical practices or guidelines to which an enterprise adheres. a. code of ethics b. code of silence c. code of honor d. code of conduct
d
Among the advantages for global entrepreneurs of diaspora networks is a. the decline in political risks across ethnic communities. b. the creation of places where anything can happen. c. the distrust among traditional trading partners. d. the speed with which information flows across borders.
d
Entrepreneurial stress can be caused by having a type A personality which can be defined as: a. getting away from business. b. taking things personally. c. taking too little responsibility. d. having a chronic sense of time urgency
d
Entrepreneurs a. are egomaniacs. b. loners who never fit in to typical firms. c. are never satisfied. d. are driven by intense commitment and perseverance.
d
Generally, entrepreneurial stress is due to a. fear of failure. b. being surrounded by incompetents. c. caused by a big ego. d. the discrepancy between the entrepreneur's expectations and the ability to meet demands.
d
Methods for going international include all of the following except a. importing. b. licensing. c. exporting. d. foreign reclamation.
d
Michael Gerber, the author of The E-Myth, explains that the failure of most small businesses is due to a. owners being more entrepreneurial rather than technical b. owners being more entrepreneurial rather than managerial c. owners being more managerial rather than technical d. owners being more technical rather than entrepreneurial
d
The displacement school of thought can be divided into which three groups? a. political, cultural, environmental b. environmental, financial, and economic c. cultural, environmental, and financial d. economic, cultural, and political
d
The process approach to entrepreneurship seeks to a. explain intrapreneurship. b. explain the process of obtaining patents. c. explain the process of obtaining venture capital. d. model the various factors that characterize the entrepreneurial process.
d
Which of the following is not a trait of successful entrepreneurs? a. strategic thinking b. initiative c. perseverance d. frustration
d
Which of the following statements best describes a "gazelle?" a. a business that has acquired numerous firms b. an inventor who turned business person c. a business with no sales growth d. a business with at least 20 percent growth every year
d
Which of the following terms refers the inaugural breakthroughs launched from experimentation and determined vision? a. strategic management b. incremental innovation c. collective entrepreneurship d. radical innovation
d
Relationships among ethnic groups that share cultural and social norms are
diaspora networks
NAFTA
is an international agreement among Canada, Mexico, and the United States that eliminates trade barriers.
_______________ is a business arrangement in which the manufacturer of a product gives permission to some group or individual to manufacture the product in return for specified royalties or other payments.
licensing
