Principals of Entrepreneurship - Final Exam

The 1 common trait that all successful entrepreneurs have is that they had access to money prior to and during their new venture creation

False

The academic study of entrepreneurship has identified a profile, or set of characteristics and achievements, that can distinguish an entrepreneur from a regular person.

False

Unstructured and chaotic is the norm for entrepreneurs.

False

What statement is true about fads?

Fun, but no lasting impact on society

Which statement is true about fads?

Fun, but no lasting impact on society

Why do companies use target marketing?

Helps control the advertising budget You cannot satisfy all of the needs and wants of everyone Not everybody will buy from you

Which of the following statements is true about innovation?

Innovation blends imaginative and creative thinking with a systematic, logical process in order to recognize and create opportunity where others find only problems

The entrepreneurial motivations of individuals usually relate to which of the following factors?

The entrepreneur, the environment, and the venture

Jean Baptiste Say defined an entrepreneur as...?

The sole occupation to apply knowledge to the creation of a product for human consumption

Richard Cantillon defined entrepreneur as...?

The sole risk taker that buys at a certain price, sells at an uncertain price for potential gain

In Dr. Michael Porter's framework of forces on an industry or business, Power of suppliers is best described as:

This force describes the situation when other companies that are needed in the supply chain can affect your company.

In Dr. Michael Porter's framework of forces on an industry or business, treat of substitutes is best described as:

This force is a concern when similar products/services, which customers might switch to if they become upset with what is currently available to them.

With psychic risk entrepreneurs...?

fear failure and thus over compensate for it or succumb to negative thoughts and feelings.

You are nervously anticipating the first quiz in your entrepreneurship class and are waiting outside of the classroom for the class scheduled before yours to exit. As the students begin to leave, you see a student crying and being comforted by another as they walk out. An overwhelming feeling of doom comes over you as take your seat. The metacognitive process that you just experienced is called _________.

framing

The decision to accept entrepreneurial motivation comes from ones?

goals

Based on the latest GEM study, the United States outranks the rest of the world in..?

important entrepreneurial support

The effectuation process of created starts with what one has; and..

is means driven, risk averse, and may reach multiple goals from a combinations of what is available

Why do we need ethics?

it is our means of deciding a course of action

Target markets are needed because

not everyone will buy from you, you can not be all things to all people, and it keeps your advertising budget within reason

During the evaluation/implementation phase of the creative process, a great deal of _____ is needed?

self-discipline, courage, and perseverance

Aging demographics indicate which type of trend

societal

Which of the following is not a principle of Innovation?

start big

Creativity to the entrepreneur is...?

the generation of ideas that results in the improved efficiency or effectiveness of a system

What is USP?

unique selling proposition

A meaningful characteristic of an effective target market for the purpose of selling minivans is

whether the person has children

Most innovations result from:

A conscious & purposeful search for new opportunities

Which of the following is not a reason for exceptional entrepreneurial activity in the United States?

America's willingness to exploit third world nations and anyone else weaker than us.

Successful entrepreneurs are able to identify and implement ideas that:

Are workable and that they have the skills to implement

Entrepreneurs themselves perceive the concept of risk in which of the following ways?

Calculated risk taking

Which of the following is not a major pathway to entrepreneurial ventures?

Cutting edge

A bank in a small US town close to the border of Canada read a census report that the number of people who speak French as their first language has gone up 30% in the past 10-years. The bank decides to begin advertising their services in French in an attempt to gain some of the French speaking people in the town as patrons. This innovation in doing business was likely caused by?

Demographic changes

Entrepreneurial motivation requires persistence. Which of the following is not a way that someone stays persistent?

Desire to take from society

The statistical analysis of entrepreneurship has 3 classifications of economic development. Which one relies on industrialization & economies of scale?

Efficiency-driven

Which of the following are not a step in the venture creation process?

Emergence of the idea

Which of the following is not a characteristic of the entrepreneurial mindset?

External locust of control

The statistical analysis of entrepreneurship has 3 classifications of economic development. Which one relies on labor and natural resources?

Factor-driven

A short opportunity window means that the product most likely will not be in demand for very long. We studied trends and fads in a previous module. Do you think a short opportunity window would indicate that the product/service is a trend or a fad?

Fad

Failure is necessary for all the following reasons except...?

Failure restricts your ability to think

Entrepreneurs are thrill seeking doers and rarely think things through or research before getting started.

False

Most entrepreneurial initiatives fail

False

Most entrepreneurial initiatives fail because of lack of money.

False

Only people who are weird and social outcasts are crazy enough and/or smart enough to be entrepreneurial

False

Only people who can come up with or invent stuff are worthy to be called entrepreneurs.

False

People born with the right traits and who find themselves in optimal circumstances will become entrepreneurs and those that don't will be their employees.

False

A code of ethics is

A written statement of ethical practices or guidelines to which an entity adheres.

The casual process is when entrepreneurs..?

Act in a rational manner with planned risk taking; start with a desired outcome and use a linear process

Which of the following is not a type of innovation?

Adaptation

TCPalm, a subsidiary of the USA Today Network, reporter Melissa E. Holsman wrote in her December 18, 2019 article "Former Indiantown Nonprofit Housing director Donna Carman blames money thefts on gambling" that Donna Carman, the former executive director of Indiantown Nonprofit Housing pleaded guilty to "siphoning" up to $50,000 from the not-for-profit corporation. During the trial, her attorney, Michael B. Cohen, argued that his client's illegal actions to a gambling addiction. Her criminal conduct, he wrote, "represented aberrant behavior." Which of the below best describes Donna Carman's actions:

Her gambling addiction created pressure that led to her perceiving that stealing the money was the right thing to do.

Code of ethics issue that may impact employees include:

Honesty, health & safety, harassment, discrimination, & drug screenings

Which statement is not something that would be reviewed during an objective evaluation?

I should be concerned that somebody may beat me to the paten office so i'd better hurry and start and skip research.

The phase of the creative process when the idea or solution the individual is seeking is discovered is referred to as:

Idea experience

Cognition is our mental process, and is comprised of all of the following except..?

Implement

Information has always been plentiful and the need to access sufficient amounts of it led to established libraries, such as the famed Library of Alexandria and more recently the New York Public Library. The creation of the World Wide Web gave rise to a search engines like Google. The creation of search engines is and example of what?

Industry and market changes

The statistical analysis of entrepreneurship has 3 classifications of economic development. Which one relies on knowledge by an expanding service sector need?

Innovation-driven

Cholera was one of the deadliest diseases to affect Britain in the nineteenth century and this summer marked the 150th anniversary of the fourth and final pandemic in London in 1866. In the nineteenth century it was believed that the disease was transmitted and spread by a 'bad air' or 'bad smells' from rotting organic matter. This thinking dominated official medical and government statements and the recently created General Board of Health was amongst those that believed in this theory. John Snow (1813-1858), an English physician and a leader in the development of anaesthesia and medical hygiene, had written several papers arguing against the prevailing foul air method of disease transmission. At this time in our history, germ theory was not developed, so doctors were unaware of the mechanism by which the disease was transmitted. But, Snow's research had evidence that it was not due to breathing in foul air. In August 1854, a major outbreak of cholera reached the district of Soho, London,. This was the third cholera outbreak in London, having previously occurred in 1832 and 1849. In the mid-19th century, Soho had a serious problem with filth due to the large influx of people and a lack of proper sanitary services: the London sewer system had not reached Soho at this point and drainage was poor throughout London. It was common at the time to have a cesspit (a hole that your poop and pee went in to) under most homes. Dr. Snow began talking to local residents about their illnesses and mapping the deaths from cholera. His research determined those who caught cholera were getting their drinking water from the Broad Street water pump. His research of the pattern of the disease were convincing enough to persuade the local council to disable the water pump by removing its handle. This action has been credited with contributing significantly to the containment of the disease in the area. It was later discovered that the water for the pump was polluted by sewage contaminated with cholera from a nearby cesspit. Today, we recognize that sanitation is extremely important to maintaining healthy and safe communities. This type of innovation is known as:

Knowledge-based concepts

Which of the following is not a factor when choosing a marketing philosophy?

Long-term focus

Which of the following is not a risk of entrepreneurship?

The entrepreneur is required to risk their physical health

Focusing on a particular loss to explain why the loss occurred is referred to as...?

Loss orientation

Which of the following is not one of the aspects of the promotional pyramid?

Make the audience aware of your competition

How you plan on getting your product to the customer, along with how you will let them know about it is called:

Marketing

Which of the following is not one of the of the stages of grief?

Mental instability

Which of the following is not a method of generating new ideas?

Mindtapping

Which of the following statements is true about creativity?

People can learn to be creative

The combination of existing concepts and factors into a new formulation would define which term?

Synthesis

Paintings from antiquity show us that famous people of that time carried a few extra pounds on them than what we would today call healthy. Researchers tell us that this is because having some extra fat on a person meant that they were healthy and that rich people could afford to eat. However, today, people who are carrying around noticeable fat are seen as obese and unhealthy. This has led to a flood of diet trends and fads as well as businesses providing meal options geared toward reducing fat intake. This is an example of what?

Perceptual changes

Factors that influence organizational managerial ethics include:

Philosophy of top management, reward systems & job dimensions

Which of the following is not one of the four phases of the creative process?

Post-mortem analysis

Which of the following is not an impediment to creativity?

Problem thinking

When Henry Ford's decided to switch to a moving assembly line instead of building cars 1 at a time. This not only simplified vehicle assembly but shortened the time necessary to produce a single vehicle from 12 hours to 90 minutes. This is an example of what form of innovation?

Process needs

Code of ethics issues that impact customers may include:

Product quality, product safety, truth in advertising, & aggressive credit collections

Business ethics is defined as:

Proper business policies & practices regarding potentially controversial issues, such as corporate governance, insider trading, bribery, discrimination, corporate social responsibility & fiduciary responsibilities

Which of the following ethical rationalizations are used to justify questionable conduct?

The act is not "really" illegal or immoral The act will never be found out The act is in the individuals or the firms best interest

On January 27, 2018 Boston Globe ran the following article; "Employee theft 'shockingly common' at nonprofits", in which reporter Todd Wallack reported that a board member of the Somerville Homeless Coalition was reviewing the nonprofit's annual financial documents in 2015 when he spotted something odd. The forms said the chief operating officer, the No. 2 executive, earned $12,000 more than the organization's top executive the previous year. Could that really be correct, he asked? Turns out it wasn't a typo. It was theft. Somerville Homeless soon discovered that the COO — who handled all the finances — allegedly embezzled approximately $108,000 over 18 months. The charity said he brazenly added some of the money directly into his paycheck — where it showed up on the group's annual financial forms — used the organization's credit card for personal expenses, and added his middle-aged son to the group's health insurance. The COO's unethical behavior was caused by which of the following:

Rationalization that they should earn as much or more than the CEO since they handled the money.

An entrepreneur that has a portfolio of opportunities in various stages of development?

Serial entrepreneur

Which of the following are the four different types of entrepreneurs?

Serial, Social, Gazelles and Corporate

The unethical practice of "cooking the books" is an ethical issue affecting...?

Shareholders and investors

Products that consumers will take time to examine carefully and compare for quality and price are:

Shopping goods

What are the four sectors we look to for the seed of a fad or trend?

Societal, technology, economic, and governmental

Alfred Marshall defined an entrepreneur as:

Supplier of commodities; provider of innovation & progress.

In Dr. Michael Porter's framework of forces on an industry or business, competitive rivalry is best described as...

This force tries to determine if lower profits will occur because too many competitors are in the market and thus customers can freely move between competitors. A concern with this force is that if it is severe, it can lead to competitive moves including price cutting, increased advertising expenditures, or spending on service/product improvements and innovation.

According to Mark Cuban, most entrepreneurial initiatives fail because of lack of effort.

True

True or False, the NEW NEW approach to new venture creation utilizes new and unique products/services to create businesses and markets.

True

The entrepreneur becomes creative by:

Turns problems into opportunities Seeking out unique opportunities to fill needs and wants Recognizes that problems are to solutions what demand is to supply

Entrepreneur is derived from the French entreprendre meaning to

Undertake

In 1812, Casale Monferrato of Italy invented the substance known as nitroglycerin, an oily and highly explosive liquid. Monferrato's creation was so unstable and dangerous to use that he saw no potential commercial use for it. In the same laboratory as Monferrato worked a Swedish man named, Alfred Nobel, who did believe that Monferrato's invention could be tamed and then could be used as a very effective replacement for the black gunpowder in the construction of roadways, tunnels, and other civil engineering works. Indeed, he had a vested interest in doing so because his family business was selling land mines and other explosives equipment. During the course of his attempts to make Monferrato's invention stable, he destroyed his own factory and killed a number of his workmen as well as his brother, Emil. Yet the wide-eyed inventor was not deterred. He continued to trial different approaches until one day he stumbled upon the perfect concoction of nitroglycerin and something called kieselguhr (or diatomaceous Earth) which acted as a stabilizing agent. The new material could be placed in cardboard tubes and Nobel designed a 'blasting cap' and fuse to allow the explosion to be controlled. His new invention was patented in 1867 and originally sold as "Nobel's Blasting Powder". It was later changed to "dynamite", from the Ancient Greek word dýnamis, meaning "power". Nobel's discovery that kieselguhr was the right substance to stabilize nitroglycerin is an example of what for of innovation?

Unexpected Occurrences

Which of the following is not a source of innovative ideas for the entrepreneurs?

Waiting and/or wishing someone will do it for you

Which of the following is not a characteristic of small business owners?

Wealth creation is rapid

Which of the following questions concerning innovation is not relevant?

When should the product go to market?

Frank Knight defined an entrepreneur as...?

Willing to bear uncertainty by using personal judgement and by using calculated probabilities to minimize uncertain results.

Which of the following is an example of a target market?

Women who use hair dye, men with beards, and diabetics

Ethics is defined as

a set of moral principals and values that define right and wrong

Once seen as a niche product only consumed by vegans and vegetarians, plant-based meats have gained mainstream acceptance among traditionally carnivorous foodies in the coming year. The market is predicted to grow by 28% each year until it reaches a whopping $85 billion by 2030, thanks to an increasing number of consumers with health, environmental, and animal welfare concerns. Impossible Foods and Beyond Meat are leading the charge, producing alt-meats for grocery store shoppers and partnering with chain restaurants like Burger King, KFC, and Subway to bring affordable options to the masses. It is believed that even more restaurants will introduce plant-based meat menu items that go beyond (pun semi-intended) beef-free burgers. This type of societal change and acceptance is known as:

a trend

Which of the following is incorrect? a. Entrepreneurs manage their businesses by expecting stable sales, profits, and growth b. Entrepreneurs focus their efforts on innovation, high profitability and sustainable growth c. Small business owners manage their businesses by expecting stable sales, profits, and growth

a. Entrepreneurs manage their businesses by expecting stable sales, profits, and growth

When entrepreneurs rely on existing solutions, techniques, or products to try to do things better. They are using what type of creative process?

adaptive

Telling your potential customers about your product is called

advertising

Factors in choosing a marketing philosophy include which statement?

competitive pressure, entrepreneurs background, and short term focus

chewing gum is a

convenience good

Characteristics often attributed to the entrepreneur include...

determination and perseverance