Entrepreneurship
Joseph Schumpeter wrote about a process of entrepreneurial innovation that he termed "creative destruction." Which of the following most closely describes the potential economic effect of the types of innovations Schumpeter was talking about?
Shifting the production possibilities frontier by meeting more needs with the same amount of resources
The person who has the opportunity to lead and run with an idea would be coined which of the following
The Champion
Which of the following statements is true?
The right brain helps people understand analogies and imagine things
Which of the following statements is true of personality traits, cognition and affect
They tend to be very reliable in predicting who will and who will not succeed as an entrepreneur
Feasibility analyses include technical, market, financial, organizational, and competitive analyses
True
Generally, the larger and more successful the franchisor, the greater the franchise fee that is charged
True
Incubation in the creative process often occurs when the individual is doing something completely unrelated to the subject
True
One reason that corporate entrepreneurship has become popular is because it allows corporations to tap the innovative talents of personnel
True
Pricing becomes less of a concern when customers become aware of a product's unique characteristics that are superior to the competition
True
Recognition of entrepreneurs dates back to the French economist Richard Cantillon
True
Social entrepreneurs are known to form ventures that exploit opportunities to create social value
True
The macro view of entrepreneurship includes external processes that are sometimes beyond the control of the entrepreneur
True
Which of the following terms refers to the systematic evolution of a product or service into newer or larger markets?
incremental innovation
What are the four types of innovation?
invention, extension, synthesis, duplication
The process approach to entrepreneurship seeks to
model the various factors that characterize the entrepreneurial process
To be profitable, total revenue must exceed total cost. Break-even analysis tells us we must look at both
price per unit and total number of units sold
In attempting to create an entrepreneurial climate the organization should consider that
the corporations that promote personal growth will attract the best people
In attempting to create an entrepreneurial climate, the organization should consider that
the corporations that promote personal growth will attract the best people
The decision to behave entrepreneurially is the result of the interaction of
the individual's personal entrepreneurial mind-set and an opportunity
The word entrepreneur is derived from the French entrepreneur, which is translated as
to undertake
Product/market problems include which of the following?
unclear business definition
The opportunity for entrepreneurial innovation emerges from the intersection of
unmet needs, potential solutions, and entrepreneurial cognition
Entrepreneurs sense potential in business problems by asking
what if and why not?
Which of the following best illustrates the power of positive externalities
when organic waste like paper and food decomposes in a landfill. It produces methane gas. Many landfills now capture the gas and burn it to generate electricity.
When accounts receivable are bought from a company for capital funding it is called
factoring
Key resources and key activities (or processes) are two components of a venture's
Business Model
Some countries exhibit a lot of entrepreneurial activity, but a high number of the entrepreneurial ventures seem to primarily provide self-employment for the founder. Which stage of economic development typically applies to these countries?
Factor-driven economic development
Commitment, determination, and perseverance are the only characteristics one needs to become a successful entrepreneur
False
Creativity cannot be developed or improved
False
Equity financing is money invested in the venture with a legal obligation to repay the principal amount with accrued interest
False
Firms do not need to alter management techniques to encourage corporate entrepreneurship since it tends to occur naturally
False
In negotiating a deal to purchase an existing business, it is a bad idea to ask the seller to retain a minority interest in the firm
False
The entrepreneurial spirit is unique to American and Western Europe
False
Timing has little to do with the success or failure of a new venture
False
Which of the following type of new venture would involve the least amount of product innovation?
Imitative market entry
Which of the following statements is true of personality traits, cognition and affect (2)
In combination they can influence the motivation of the entrepreneur to pursue an opportunity
What characteristic(s) that propel entrepreneurs into success can be exhibited to such an 'extreme' that it becomes a problem?
Overbearing need for control
What characteristics that propel entrepreneurs into success can be exhibited to such an 'extreme' that it becomes a problem
Overbearing need for control
To be profitable, total revenue must exceed total cost. Break-even analysis tells us we must look both
Price per unit and total number of units sold
Which of the following is NOT an important characteristic for establishing an intrapreneurial climate?
Punishment of mistakes
Key elements in plans to create a sustainable future are likely to include which of the following?
eliminating the concept of waste
The major trust of corporate entrepreneurship is to
encourage innovation