MGMT 3033 Mid-Term

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.

A focus group should consist of

10-12 potential customers.

The term of a copyright is the author's life plus

70 years

A ________ is a contract between the government and an inventor.

patent

Which survey method results in the most in-depth information and the best response rate?

personal

The first step in establishing corporate entrepreneurship in an organization is

securing commitment from top management.Correct

When gathering market information, a well-defined _______market will make it easier to project market size and subsequent market goals for the new venture.

target

Having an entrepreneurial orientation toward the control of resources means

that one focuses on accessing others' resources.

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

true

An entrepreneur considering if what they are doing makes sense is an example of

a reflection task.

The tendency among many entrepreneurs is to

avoid planning.

A new entry includes all of the following except

Creating a new brand name for your company

An opportunity assessment plan

focuses on the opportunity, not the venture.

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

me-too

The management team of a new venture

must operate the business full time.

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

feasible

Before beginning the business plan, the entrepreneur should define the venture's goals and objectives. These goals should be

feasible.

Which of the following is an internal environmental variable?

financial resources

The most common approach to gathering primary information is

interviewing.

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

In a limited liability company

laws governing its formation differ from state to state

When evaluating business plans ________ are primarily concerned with the four Cs of credit.

lenders

In establishing goals and objectives, it is important to

limit the number of goals.

When it comes to decision making, in a limited partnership

limited partners have no control over business decisions.

Distribution, pricing, and promotion of the product are discussed in which section of the plan?

marketing

The four variables that affect short-term marketing decisions are referred to as the

marketing mix.

The ________is the written statement of marketing objectives, strategies, and activities to be followed in the business plan.

marketing plan

Once the marketing goals and objectives have been established, the entrepreneur can begin to develop the ________ and ________ to achieve them.

marketing strategy; action plan

The major interacting components that enable a firm to successfully provide products to the marketplace are called the

marketing system.

Which of the following answer options is the reason for the marked increase in international opportunities?

more economies moving from control-oriented to market-oriented

While there are many components in a professional-support network, ________ are particularly good with insight on both trends and competitors.

suppliers

The ________ is the specific group of potential customers toward which a venture aims its marketing plan.

target market

Which survey method can be the fastest method for obtaining data?

telephone

The usefulness of the title or introductory page is

that it provides information about the company.

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

the desire to grow at a slow and controlled pace.

In Stage Two of the McMullen-Shepherd Model:

the entrepreneur decides whether or not there is an opportunity for him or her personally.

In Stage One of the McMullen-Shepherd Model

the entrepreneur decides whether or not there is an opportunity for someone.

Density, in regards to a social network, refers to

the extensiveness of ties between two individuals.

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

Intensive, selective, and exclusive are all part of which major consideration in channel selection?

number of channel members

The simplest approach to gathering primary information is

observation.

Strategic tasks stimulate the entrepreneur to compare the current situation with previous similar situations.

False

Sustainable entrepreneurship provides only environmental gains for others.

False

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

False

________provides information on industries such as aerospace, energy, healthcare and defense.

Frost and Sullivan

________have unlimited liability for the actions of the business.

General partners

Which of the following is not one of the main functions of the management team according to text?

Help the entrepreneur write the business plan.

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

IT infrastructure

Which of the following would not occur in the second stage of establishing corporate entrepreneurship in an organization?

Identify an evaluation system for involved employees.

Primary data is

original information collected by the entrepreneur.

In designing the organization

poor design is a significant cause for business failure since the entrepreneur often performs all organization functions themselves.

Observation, interviewing, and focus groups are examples of collecting

primary data.

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

Which of the following is not true about the operations plan portion of the business plan?

Only service businesses need an operations plan.

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

product life cycle

If the new venture is a manufacturing operation a(n) ________ in the business plan is necessary.

production plan

Which of the following is a pitfall of social media?

promoting your product in every post

Which of the following is not a common reason why business plans fail?

promotional strategy was not taken seriously

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.

_______ includes a redefinition of the business concept, reorganization, and the introduction of system-wide changes to increase innovation.

Self-renewal

Which of the following is true of budgeting the marketing strategy?

The budgeting of marketing action and strategy decisions will be useful in preparing the financial plan.

Which of the following statements on contingency planning issues is not true?

To protect the reputation of the company, media should not be contacted during a crisis.

Developing a spirit of entrepreneurship within the existing organization, called corporate entrepreneurship, can lower resistance to flexibility, growth, and diversification.

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. Group starts

True

Entrepreneurial thinking is partly a mental process of recognizing a signal and then deciding if the signal represents an opportunity for someone.

True

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

True

A turn-key project is best defined as

a method of doing business whereby a foreign entrepreneur supplies the manufacturing technology or infrastructure for a business and then turns it over to local owners.

Licensing is best described as

a method that involves giving a foreign manufacturer the right to use a patent, technology, production process, or product in return for the payment of a royalty.

Business-to-business marketing involves

a more direct channel of distribution than consumer markets.

The moral support network is different from the professional support network in that

a professional support network includes finding a mentor.

McDonalds has learned to adapt its restaurants to local design preferences and the U.S. government tries to design their local embassies with local architectural considerations. These are examples of which aspect of culture?

aesthetics

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 manger should encourage upper management to begin developing _______ within the company.

an entrepreneurial orientation

Trade secrets can be protected for

an unlimited period of time.

Focus groups

are an informal method of gathering market information.

In a limited partnership, the limited partners

are liable only for the amount of their capital contributions.

Manufacturer's representatives are marketing middlemen that

are paid a commission when a sale is made.

The _______ is less about whether an opportunity really exists and more about whether the entrepreneur believes they can make it work.

assessment of a new entry's attractiveness

A sufficient time for top management to be committed to corporate entrepreneurship is

at least three years.

The executive summary section should

be about two to three pages in length

When establishing corporate entrepreneurship in an organization rewards should

be tied to the performance of the entrepreneurial unit created from the idea.

When gathering financial information, the entrepreneur will need to identify ________ in the industry that can be used in preparing the final pro forma statements in the financial plan.

benchmarks

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

brainstorming.

All of the following would be an operations information need except

break even numbers.

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

bricolage.

All of the following are reasons to enact a contingency plan, except

changes in fashion.

On the education background, entrepreneurs

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

Which of the following interested parties should not have access to the venture's business plan?

competitors

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.

Licensing can be used by the entrepreneur to

copy a competitor's patent.

Market segmentation is the process of

dividing the market into smaller homogeneous groups.

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

dual process

Which of the following is not a leadership characteristic of a corporate entrepreneur according to the text?

encourages colleagues to follow hierarchy

All of the following statements concerning opportunity assessment plans are correct except

the first major section of the opportunity assessment plan develops a time line indicating what steps need to be taken to successfully launch the venture.

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

the focus group

An important source of information in preparation of the business plan is ________ which provides access to information efficiently, expediently, and at very little cost.

the internet

If the entrepreneur is constantly faced with significant changes in the marketing strategy, then it is likely that

the plan was not prepared properly.

All of the following would be considering part of the description of the venture section of the business plan except

the projected statement of cash flows for the first year.

All these are characteristics of an entrepreneurial environment except

there are short term horizons.

The business plan is designed to guide the entrepreneur

through the first year of operations.

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

trade associations

A ________ may be a word, symbol, design, or some combination of such, or it could be a slogan or even a particular sound that identifies the source or sponsorship of certain goods or services.

trademark

When speaking about patents, most people are referring to ________patents.

utility

McDonald's acquiring its store franchises is an example of what type of merger?

vertical merger

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

window of opportunity.

To assess the potential profitability of a venture, the entrepreneur needs to ascertain expected sales and expense figures for the first

year.

To apply for a trademark

intent to use the mark is required.

Focus groups use which of the following methods?

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

________ identifies potential hazards and alternative strategies to meet business plan goals and objectives.

Assessment of risk

The typical corporation form is known as a(n)

C corporation.

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 is true?

Independent, venture-capital-based start-ups by entrepreneurs tend to outperform corporate start-ups significantly.

Which of the following statements is true?

Laws of a country regulate the manner in which business transactions are executed.

Copyrights are registered with

Library of Congress

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.

________ knowledge refers to the entrepreneur's possession of information, technology, know-how, and skills that provide insight into the industry and customers.

Market

________ is like a double-edged sword - it represents something rare but also creates a number of challenges for entrepreneurs.

Newness

Which of the following is true regarding the Sarbanes-Oxley Act?

Private companies are not included in this act.

________includes initiative and risk taking, as well as competitive aggressiveness and boldness.

Proactiveness

Which of the following statements is true of the social factors effecting international business?

Psychographics exist within demographics.

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

The ________ is a special type of corporation where profits are distributed to stockholders and taxed as personal income.

S corporation

Which of the following statements is true?

The business plan describes both internal and external elements.

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.Correct

Which of the following statements concerning lawyers and the need for legal advice is not true?

When a lawyer works on a retainer, all legal fees are covered and you pay the same amount each month or each year.

Bonds can be used to raise capital in which form of ownership?

corporation

In which of the legal forms of ownership is transferability of interest the easiest?

corporation

The LLC will be taxed as partnership unless the entrepreneur chooses to be taxed as a(n) ________

corporation

Which type of ownership is the most expensive to start?

corporation

Liability is one of the most critical reasons for establishing a

corporation.

The legal form of business with the most alternatives for raising capital is the

corporation.

A company has a formal structure and an informal structure which evolves over time. This informal structure is a company's

culture.

An error of omission occurs when an entrepreneur

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

Which stage of marketing research is considered to be the most difficult for an entrepreneur due to lack of knowledge or experience in marketing?

defining the purpose or objectives

First movers face

demand uncertainty.

The key to successful domestic and international entrepreneurship is to

develop a new product/service idea that has a large, reachable market.

Which of the following is not a key element in the pricing strategy?

distribution

Corporations distribute profits to owners through

dividends.

The set of decisions, actions, and reactions that first generate, and then exploit over time, a new entry is

entrepreneurial strategy.

All of the following statements are true of sustainable entrepreneurship except

entrepreneurs with a positive attitude toward the natural environment never disengage these values to exploit an opportunity.

The section of the business plan in which the entrepreneur identifies changes occurring on the national and international level is the

environmental and industry analysis.

A disadvantage of being a first mover is

environmental instability.

With regard to thinking structurally, superficial similarities

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

Which among the following political risks is considered the biggest risk of all?

expropriation risk

When conducting research on a new entry

extensive research is expensive in terms of time and money.

The organization plan describes the business'

form of ownership.

All the design decisions involving personnel and their roles and responsibilities reflect the ________ structure of the organization.

formal

In a limited liability partnership (LLP) death or withdrawal of a partner

has no effect on the partnership.

The board of directors

has responsibilities to represent all shareholders.Correct

Sole proprietorships

have no time limit on how long they may exist.

Continuous innovations are described as

having the least disrupting influence on established consumption patterns.

To build a strong marketing plan with reasonable and measurable goals and objectives, the entrepreneur will need to gather information on the _______ and market.

industry

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.

New product development falls under which of the four major components of corporate entrepreneurship?

innovativeness

Which of the following is not part of intellectual property?

insurance

When budgeting the marketing strategy, a reasonable budget is seen as a percentage of forecasted

revenue.

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

risk reduction strategies

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

self-efficacy

Which of the following answer options is not one of the five steps in the five-step approach to selecting a foreign market to enter?

set the price

The business plan presentation for potential investors

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

To build a successful organization culture the entrepreneur

should spend extra time in the hiring process.

The ________ describes past and present business achievements of new ventures.

situation analysis

Entrepreneurial Opportunities are defined as

situations in which new goods, services, raw materials and organizing methods can be sold at greater than their production cost.

Trends for the next decade include all of the following except

social media networks

In which form of organization does the owner have greatest control?

sole proprietorship

Which type of ownership is the least expensive to start?

sole proprietorship

The causal process of thinking

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