Entrepreneurship

If variable cost is $40, demand in units is 1,500, and revenues is $70,000, gross product is:

$10,000

In the first five years after Facebook's Initial Public Offering (IPO), by about what percentage did the value of the company increase?

1000 percent

Which of the following firms was listed as having Access as the primary value and Experience as the secondary value?

AT&T

________ Price and ________ perceived quality is characteristic of Value products.

low; high

What was the entrepreneurial activity rate (the number of U.S. adults engaged in setting up or managing a new enterprise) between 1999 and 2015?

12 percent

In figure 5.5, about how far into the lifespan of the innovation does it reach the mainstream market?

30 percent

What is the value of an Entrepreneurial Attractiveness (EA) index where Income is high, Independence is medium, Work Effort is low, and Risk is 2?

5

What percent of inventions developed by independent inventors reach a market?

6 percent

Which of the following is not an establishing condition for corporate new ventures?

A dearth of corporate entrepreneurs with project mindsets

It is stated that, to be competitive, a firm must have all of the following except:

A willingness to accept other types of resources

Distinctive competencies utilize the ________ and ________ to lead to business strategy.

Access to resources; capabilities of team

Which of the following is not explicitly part of the five-step process for establishing a new enterprise?

Acquire preliminary resources

According to the overall development process, when should you iterate?

After unsatisfactory tests

Which of the following is the most uncertain task?

Begin independent research on self-driving cars

________ is the conventional version of the following creative management practice ________.

Cater to people who will analyze and support the work; Stay away from, divert, or bore anyone who just wants to discuss money

Which of the following is not characteristic of corporate new ventures?

Commitment to the entity's social cause

A ________ generally has ________ revenue growth.

Corporate new venture; Above average

Which of the following is given as the first step in developing a strategy?

Develop the vision and mission statements and the business model

Which of the following is a question that would be answered in the "Team and Organization" section of the business plan?

Does the company have advisors or board members that strengthen its story?

A parent firm tries to ________ its ________.

Encourage adherence to policy for; management

Which of the following would not be part of eBay's mission statement?

Enlist a world-class marketing team

The value proposition does not accomplish which of the following?

Equates the value to monetary worth

Which of the following is not a step to conducting an effective focus group?

Establish "correct" answers to the questions

Which of the following is not an element of a concept summary?

Explain the uniqueness of the customer

Which of the following is not listed as a technique the storyteller should use?

Expose gaps in the listeners' understanding

What might lead to a customer perceiving low switching costs?

Frustration with incumbent products

Of the following combination of values, ________, ________, and ________ leads to the highest risk.

High financial investment; high uncertainty; high hazard

Which of the following is the correct order of elements in the creativity process?

Insights, ideas, and inventive thinking -> Evaluate and test the ideas -> build a prototype

The competition cycle for market share is:

Market Share -> Innovations -> Value to Customers -> Demand -> Sales

The goal of ________ is to ________.

Marketing mix; describe the price, product, promotion, and channels

The following are all listed as elements of an attractive innovation strategy except:

Opportunity to take advantage of resources

What is the last part of step 2 (after research and development, before prototype) of the product design process?

Optimize the parameters of the project

A dominant design ________.

Provides a reference point for a number of product offerings

Whereas independent ventures can offer ________, corporate ventures can offer ________.

Quick changes to plans; best talent at the firm

Figure 3.4 describes how the business model responds to changing conditions. What is the last step in this business design process?

Reevaluate the business model in terms of changes in the marketplace

In a ________, the continuity of business is ________.

S-Corporation; perpetual

________ is an arrangement in which users might pay for the service ________.

SaaS; on a monthly basis

A possible disadvantage of being a first-mover is:

Short-lived advantages as competition arises

Which of the following do you not need to perform industry analysis, using the five elements of an industry analysis?

Sources of industry talent

A flow-through entity might entail any of the following except:

Taxation of corporate profits

Human Capital is:

The combined knowledge, skills, and abilities in a population

The axis of the risk matrix are ________ and ________.

The degree of familiarity with the new market; degree of familiarity and its capabilities around the new product or technology

Which of the following is the final step of "Pain-storming"?

The entrepreneur identifies the assumptions behind the root cause

Who should create the mission statement?

The entrepreneurial team and other employees

A brand can be all of the following except:

The perceived worthiness of the product

The opportunity cost of an action is:

The value of the forgone alternative action

Which of the following is NOT a trend that has helped the globalization of business...

The waning interest in overseas travel

A corporate new venture tries to ________ its ________.

Utilize rewards for; entrepreneurial employees

"Crossing the chasm" refers to bridging the gap between ________ and ________.

Visionaries; Pragmatists

Which of the following is a question that a company should ask to determine the initial target market?

What kind of solutions do competitors offer to the target customer?

Which of the following is a characteristic of Intel's strategy?

Which of the following is a characteristic of Intel's strategy?

Which of the following is a question that would be answered in the "Risks" section of the business plan?

Who are your main competitors, and how are you differentiated from them in the marketplace?

Which of the following is a question that would be answered in the "Executive Summary" section of the business plan?

Why is this venture uniquely positioned to do this?

What question, as depicted in figure 5.4, is on the way from a new invention to a new firm?

Will this new invention be exploited as a new venture led by a team?

Janet is faced with an opportunity that she identifies has low strategic importance to her firm but high operational relatedness. How should she proceed?

With a small exploratory project

Which of the following is the most critical component necessary to turn an idea into an enterprise?

a viable opportunity

The process by which new, creative firms disrupt existing markets could be called:

all of the above

Before the period of opportunity, both first movers and followers are engaged in:

an innovation period

According to figure 7.1, which of the following does not factor into the perceived risk?

anticipated returns

Which of the following did not receive early funding from venture capitalist?

berkshire hathaway

Which of the following would not necessarily describe a product that has undergone Incremental Innovation?

bigger

Which of the following is not a dimension of brand equity?

brand range

Which of the following is the last step in the creativity process before reframing and starting again?

build a prototype

Scalability depends on a firm's ability to increase its ________.

capacity

Which of the following is not listed as a product or process uncertainty?

channels

Organizations that satisfy the conditions of section 501(c)(3) of the Internal Revenue Service Code are called ________ organizations.

charitable

Which of the following is a market uncertainty?

competitors

Which of the following is not a characteristic of an attractive opportunity?

complex

Which of the following leads to a total cost of $100?

cost/unit = $15, quantity = 6, fixed cost = $10

In Alex Osterwalder's business model canvas, which of the following is one of the first three building blocks?

customer segments

Which of the following is not a persona that occupies a learning role?

director

What does "changed" and "overturned" innovation look like?

disruptive innovation

Which of the following is a potential barrier of entry into an industry?

economies of scope

Which of the following is a way to generate Primary Data in the context of the customer development process?

engaging with customers

Which of these was given as a possible element of a mission statement?

focus groups

Spotify is an example of the ________ business model.

freemium

Which of the following four factors of the innovation engine is nonadjacent to the others?

habitat

Which of the following is not one of the six questions for creating a sound, dynamic strategy?

how will we reach profitability

Which of the following are factors of technology innovation?

industry analysis

Which of the following is listed as a common mistake in the business plan?

lack of focus

Which of the following is not listed as an element that goes into a scenario (i.e. from Figure 8.6)?

learning

What is the main difference between a unique selling proposition (USP) and a value proposition?

length

Which of the following is not listed as a brainstorming rule?

listen to yourself

Apple computers, today, would be considered a:

low risk investment with high annual expected returns

Which of the following is not an element of the marketing plan?

marketing boundaries

Alphabet can fund ________ thanks to ________.

moonshot companies; revenue from search and ads

The types of loss listed in the text are:

opportunistic

Characteristics of an invention do not include:

opportunity

A marketing objectives statement would include all of the following except:

product design

The quantity of goods and services produced from the sum of all inputs is called:

productivity

Which of the following is not one of the three stages of the story?

provide personal background

Which of the following is not listed as a distinctive competency?

resources

Marketing has the objective of ________ customers.

retaining

Which of the following is not a component of the utility function U as defined by Douglas and Shepherd, 1999:

reward

Which of the following is not one of the four stages of an industry life cycle?

stability

Which of the following best describes what entrepreneurship entails?

taking calculated risks

Which of the following is not one of the elements listed as useful for an effective brainstorming session?

the right idea

The business plan requires constant reevaluation by:

the team

Which of the following is a pain point of taxi passengers that is addressed by Uber?

uncertainty of payment

The mission statement should not explain which of the following?

workforce size