Entrepreneurship Final Exam

5 C's of Credit

1) Character 2) Capacity 3) Capital 4) Collateral 5) Conditions

3 Types of new product classifications

1) Continuous innovations - Most common, least disruptive 2) Dynamically continuous innovations - Some disruption 3) Discontinuous innovations - Cutting edge product

2 stages of the McMullen-Shepherd model

1) Evaluation stage: Does entrepreneur have skills to take action 2) Attention Stage: Does opportunity exist

2 strategies to reduce uncertainties

1) Imitation strategies 2) Market scope strategies

3 main types of political risk

1) Operating 2) Transfer 3) Ownership

4 stages of product life cycle

1. Introduction 2. Growth 3. Maturity 4. Decline

Marketing Mix

1. Product 2. Price 3. Place (distribution) 4. Promotion

How long does a trade mark sit published for people to oppose

30 days

Problem inventory analysis

A method for obtaining new ideas and solutions by focusing on problems

The _________ created the commission that prescribes safety standards for products

Consumer Product Safety Act

Authors or publishers of software are protected under:

Copyrights

New Business Venturing

Creation of a new business within an existing organization

Which of the following political risks is considered the biggest risk of all? a) Transfer b) Investment c) Operating d) Ownership

D) Ownership

brand equity

the added value a brand name gives to a product beyond the functional benefits provided

The laws governing business arrangements have been standardized over 150 international legal systems.. T or F

False

The three main categories of patents are design, utility, and provisional.... T or F

False

The McMullen-Shepherd Model helps identify common traits of successful entrepreneurs. T or F

False.

In order to be the basis for a firms superior performance, a bundle of resources must be valuable, rare, and imitable... T or F

False... Should be inimitable

Organization plan described the businesses...

Form of ownership

A broad scope strategy:

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

Design patents

patents that are granted when someone has invented a new and original design for a manufactured product - Based on appearance of an object

Reverse brainstorming

Identifying everything wrong with an idea

Imitation strategy

Imitating a current product or service - Legitimacy is the #1 reason for this - Reduces costs associated with R&D

Focus groups

Open in depth discussion led by a moderator (INFORMAL)

The business plan presentation for potential investors:

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

Cognitive Adaptability

The ability to be dynamic, flexible, and self-regulating in one's cognitions given dynamic and uncertain task environments.

Which is true regarding the Sarbanes-Oxley act?

The act does not cover fraud via tv or radio

A board of advisors has less decision making authority than the board of directors does. T or F

True

Entrepreneurial structure is usually flat with multiple informal networks... T or F

True

Independent, venture-capital-start ups tend to outperform corporate start-ups T or F

True

The question "what is technology all about is a comprehension question"... T or F

True

Effectuation Process

a process that starts with what one has (who they are, what they know, and whom they know) and selects among possible outcomes

Which of the following is not as aspect of nonverbal or hidden language? a) Energy b) Time c) Space d) Business relationships

a) Energy

Fixed operating expenses include all of the following except: a) Rent b) Depreciation c) Raw materials d) Utilities

a) Raw materials

Which of the following is a variable expense? a) Raw materials b) Interest c) Insurance d) Rent

a) Raw materials - Changes with quantity required

Which of the following is an internal environmental variable? a) Industry demand b) Technology c) Financial resources d) The economy

c) Financial resources

business-to-business marketing involves

A more direct channel of distribution than consumer markets

Franchising opportunities have often evolved from changes in the environment as well as important social trends. This is not one of the factors responsible:

Acceptance of different cultures

Liability is one of the most critical reasons for establishing a: A. limited liability company. B. corporation. C. partnership. D. sole proprietorship.

B) Coorporation

Which term describes the practice of paying for goods indirectly through another source?

Barter

Trade secrets are protected:

By state law

Which methods of bankruptcy require the entrepreneur to come up with a payment plan?

Chapter 7 + Chapter 13

The section of the patent application which provides the criteria by which infringement will be determined is the...

Claims section

The section of the patent application that includes engineering specifications, materials and components is the...

Description of invention

Parameter Analysis

Developing a new idea by focusing on parameter identification and creative synthesis

Collective Notebook Method

Developing a new idea by group members regularly recording ideas

forced relationships

Developing a new idea by looking at product combinations

Big-Dream Approach

Developing a new idea by thinking without constraints

Free association

Developing a new idea through a chain of word associations

checklist method

Developing a new idea through a list of related issues

Corporate entrepreneurship

Entrepreneurial action within an established organization

Entrepreneur vs. Manager

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

In regards to thinking structurally, superficial similarities:

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

Copyrights are registered with:

Library of Congress

Gordon Method

Method for developing new ideas when the individuals are unaware of the problem - Ensures that there are no biases that could cloud judgment

Error of commission

Negative outcome from acting on a perceived opportunity

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

Pro-activeness

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

Resources

Bricolage

Reusing resources so they can be optimized

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

Securing commitment from top management

Brain writing

Written brainstorming

lead time

The grace period in which the first mover operates in the industry under conditions of limited competition

Motivations for going global include all of the following except: a) Competitive pressures b) Excess production capacity c) Technological advantage d) Cheap shipping costs

d) Cheap shipping costs

Patents filed with the U.S. Patent Office:

frequently suggest other new products

Casual process

starts with a desired outcome and focuses on the means to generate that outcome