management ch 6

Which of the following is a crucial nonfinancial resource?

A top management team

Which of the following are the tendencies that determine entrepreneurial orientation? (Choose every correct answer.)

Allowing independent action Taking risks Being competitively aggressive Being proactive

Business partners help each other in which ways? (Choose every correct answer.)

By accessing capital By spreading the workload By sharing expertise

Which of the following are typical ways entrepreneurs can exploit opportunities? (Choose every correct answer.)

By introducing goods or services that capture the market because they are simpler or more convenient By exploring domains that are avoided by large companies

Challenges competitors directly and intensely

Competitive aggressiveness

What are high-potential future opportunities for entrepreneurship? (Choose every correct answer.)

Cryptocurrency Artificial intelligence Green energy

Which group is more likely to rent assets on a temporary basis than own them?

Entrepreneurs

Which of the following are myths about entrepreneurship? (Choose every correct answer.)

Entrepreneurs are their own bosses who don't need to answer to anyone. Entrepreneurs are gamblers.

Which of the following statements about the early stages of an entrepreneurial venture is true?

Entrepreneurs are unable to specialize.

In what ways does entrepreneurship differ from management? (Choose every correct answer.)

Entrepreneurs use networks of contacts while managers have more clearly defined authority and responsibility. Entrepreneurs often rent or use assets on a temporary basis while managers usually prefer to own assets. Managers are often slower to act and tend to avoid risk while entrepreneurs are quicker to act and actively manage risk.

Which of the following statements about the failure of new start-ups is true?

Estimates of failure rates indicate that more start-ups fail than succeed.

True or false: As a business grows, entrepreneurs often quickly delegate work they had been doing previously.

False

True or false: The only essential step for building support for a project idea within a company is to get the support of higher-level officials.

False

Which of the following are elements of social capital? (Choose every correct answer.)

Having a good reputation Being part of a network of people

Which of the following statements about IPOs is true?

IPOs are federally registered.

Which of the following do start-ups contribute to the economy? (Choose every correct answer.)

Increased productivity Wage growth

Which of the following are favorable factors in increasing entrepreneurial activity? (Choose every correct answer.)

Increases in the money supply Improving performance of the stock market Real economic growth

What are challenges associated with rapid entrepreneurial growth? (Choose every correct answer.)

Increasing expenses Limits to founders' capacities Competing with bigger firms

Grants people the freedom to exercise their creativity and champions promising ideas that they develop

Independent action

Supports new ideas and experimentation and shows a willingness to depart from existing practices

Innovativeness

Which of the following characterizes a small business?

It does not have many innovative practices.

Which of the following describe typical features of a business incubator? (Choose every correct answer.)

It is associated with a university. It offers shared costs. It is located in an industrial park.

Which of the following are reasons that survival may be difficult for a small start-up company? (Choose every correct answer.)

Lack of customers Difficulty finding lenders No track record

Which of the following are characteristics of an entrepreneurial personality? (Choose every correct answer.)

Leadership Motivation to excel Commitment and determination

Which of the following are recommended practices for helping ensure the survival of a family-managed business? (Choose every correct answer.)

Make sure that family members in the business work as hard as other employees. Have at least one key position be filled by a nonfamily member. Someone outside the family and the business should help plan succession.

In general, successful entrepreneurs have good knowledge and skills in which of the following? (Choose every correct answer.)

Networking Management Business

Which entrepreneurial trait involves an intimate knowledge of customers' needs and the desire to create value?

Opportunity obsession

Which of the following are specific key planning factors, in addition to financial elements, that entrepreneurs must think through carefully? (Choose every correct answer.)

People Competition Context

Acts in anticipation of future problems and opportunities

Proactiveness

Rapid growth leads to increased hiring which then requires entrepreneurs to do what?

Raise prices

Which are ways a social enterprise might advance social well-being? (Choose every correct answer.)

Revitalizing local neighborhoods Improving health-care access Encouraging responsible consumption

Is willing to commit significant resources to ventures into the unknown

Risk taking

Which of the following could explain why entrepreneurs fail to use their resources wisely? (Choose every correct answer.)

Start-up capital is used on expensive locations. Entrepreneurs fail to maintain control over their resources.

Which of the following are factors that typically motivate entrepreneurs as they start a business?

The challenges of the business The potential for profit The sense of satisfaction the business generates

What is the role does the economic environment play in the success of entrepreneurial ventures?

The economic environment affects the success of entrepreneurial ventures by affecting the supply of capital and prospective opportunities.

Which of the following are reasons entrepreneurs fail to use formal controls? (Choose every correct answer.)

Their time is consumed with running the business. They have an aversion to record keeping.

People who become successful entrepreneurs usually have which characteristics?

They understand and have skills in management, business, and networking.

Which of the following are purposes for creating a business plan? (Choose every correct answer.)

To assist in obtaining financing To guide planning and organizing To determine the viability of an enterprise

True or false: The idea that an entrepreneur gets rich quickly and enjoys a lot of leisure time while someone else does the work is a myth about entrepreneurship.

True

Which of the following exacerbates the problem of entrepreneurs failing to use their resources wisely?

Venture capital funding

Survival for small start-up companies may be difficult because of ______.

a specialized market and strong competition

When advertisers pay a website operator to access the demographic group that visits the site, they are using the ____________ support e-commerce model.

advertising

The e-commerce business model in which a website is paid by companies that promote their goods or services on the website is the ______ model.

advertising support

A group of people with business experience who can help guide an entrepreneur is called a(n) ______.

advisory board

Sites such as Zazzle.com, which pay commissions to other sites to bring business to them, are using the ___________ model for e-commerce.

affiliate

The e-commerce business model in which an organization drives business to its own site by paying commission to other sites is known as the ______ model.

affiliate

A group of people who are willing to provide business insights and professional connections are known as ______.

an advisory board

Informal work on a project that is of an employee's own choosing and not officially assigned is called ______.

bootlegging

A formal planning step that focuses on the entire venture and describes all the elements involved in starting it is called a(n) ______.

business plan

Entrepreneurs can find opportunities by entering domains big companies avoid and introducing products that are ______.

cheaper

Entrepreneurs often hesitate to __________ work to others as their business grows.

delegate

The tendency of an organization to identify and capitalize successfully on opportunities to launch new ventures by entering new or established markets with new or existing goods or services is called ______.

entrepreneurial orientation

A new business that has growth and high profitability as primary objectives is called a(n) ______.

entrepreneurial venture

Independence, profit potential, and a better quality of life are reasons individuals become ______.

entrepreneurs

The situation in which an individual initiates and builds an organization pursuing a lucrative opportunity is called ______.

entrepreneurship

Using market-based methods to leverage resources in order to stimulate social change is a form of social ______.

entrepreneurship

When an enterprising individual pursues a lucrative opportunity, initiating and building an organization rather than being only a passive part of one, it is called ______.

entrepreneurship

The difference between the transaction fee model and the intermediary model of e-commerce is that the transaction fee model charges a fee ______, whereas the intermediary model charges a fee ______.

for goods and services; to bring buyers and sellers together

An entrepreneurial alliance between an innovator who creates at least one successful store and wants to grow the business and a partner who manages a new store of the same type in a new location is called a(n) ______.

franchise

A great product, a viable market, and ______ are essential ingredients to entrepreneurial success.

good timing

An entrepreneurial venture seeks to have ______.

growth and high profitability

The first-time sale of federally registered and underwritten shares of company stock to the public is called a(n) ______.

initial public offering

An important model for characterizing new ventures categorizes them by their levels of ______.

innovation and risk

In a franchise agreement, the franchisor is the ______ and the franchisee is the ______.

innovator; operator

A website, such as eBay, that brings buyers and sellers together and charges a commission is an example of the _____________ model of e-commerce

intermediary

In the model that conceptualizes entrepreneurial ventures, most small business ventures are categorized as ______.

low in innovation and high in risk

Getting support for a project from peers before seeking formal approval from higher levels in a company is known as ______.

making cheerleaders

Nonfinancial resources that are important to the success of a new business are business legitimacy, networks, advisory boards, and the top __________ team

management

The two major liabilities of start-up companies are ______.

newness and smallness

An analysis that includes a description of the good or service, an assessment of the entrepreneur, a specification of activities and resources needed to translate the idea into a viable business, and the sources of capital is called a(n) ______ analysis.

opportunity

The first formal step in creating a business plan that helps determine whether or not to act is a(n) ______.

opportunity analysis

The most dangerous risk in intrapreneurship is the risk of ______.

overreliance on a single project

Two people who go into business together are called ______.

partners

Entrepreneurs often have to ______.

perform more than one business function

In order for an entrepreneurial enterprise to survive the death of its founder, the company needs to have a(n) ______ in place early on.

plan for succession

Since World War II, small entrepreneurial businesses have created 95% of all ______ in the United States.

radical innovation

Which formal control system do entrepreneurs commonly fail to utilize?

record keeping

One of the key planning factors that entrepreneurs must think through carefully in creating a business plan is risk and _____________

reward

An important factor affecting the success of intrapreneurship is ______.

scale

the ___________ street effect occurs when an entrepreneurial opportunity is discovered unexpectedly while pursuing another opportunity.

side

When entrepreneurs start their enterprises and then capitalize on an unexpected opportunity, it is called the ______ effect.

side street

Project teams that produce a new product within a predetermined time frame and without fear of team members losing their jobs if the new product fails are called ____________.

skunkwork

A(n) ______ generally has fewer than 500 employees and expects moderate sales and profits.

small business

A lasting source of competitive advantage for an entrepreneur that involves building relationships and networking with people is __________ capital

social

Traditionally driven by the government and big defense contractors, the ______ market represents a potential future opportunity for entrepreneurs.

space transport

When Amazon.com and online travel agents charge a fee for goods or services, they are using the _____________ fee model of e-commerce

transaction

The e-commerce business model in which a company charges for goods or services is the ______ model.

transaction fee

Business incubators are often associated with a(n) ______.

university