MGMT 310 Exam 1
10) Clothing boutiques and specialty shops often start because there is a need for a particular product, but large retailers like Wal-Mart and Costco can't sell enough of the item to stock it on their shelves. If a clothing boutique started to sell designer clothes or clothing for hard-to-fit people because the clothing wasn't being offered by a larger retailer, the best way to describe how that idea was recognized is ________. A) finding a gap in the marketplace B) brainstorming C) observing trends D) solving a problem E) talking to consumers
A
15) As new products that are better than the existing generation of products are introduced, sales normally increase because the new products provide consumers increased value or worth. This process, which is called ________, stimulates economic activity, which is a good thing for the economy. A) creative destruction B) repetitive destruction C) iterative replacement D) inventive replacement E) iterative destruction
A
20) A(n) ________ is a written document that describes all the aspects of a business venture in a concise manner. A) business plan B) business model C) operations plan D) corporate plan E) contingency plan
A
6) Economic forces impact the opportunities available to entrepreneurs. Which of the following alternatives reflects a set of economic forces that would be of interest to entrepreneurs? A) Level of disposable income, new uses of old technologies, and new laws and regulations B) New technologies, consumer spending patterns, and new laws C) Interest rates, consumer spending patterns, and level of disposable income D) Social and cultural trends, level of interest rates, and what people think is "in" E) New changes in political areas, new laws, and level of disposable income
A
6) Kasey Stevenson is starting a firm in the women's clothing industry primarily to pursue financial rewards. According to the textbook, starting a business to make a lot of money ________. A) often fails to live up to its hype B) is equally as satisfying as other reasons for starting a business C) is the number one reason people start their own business D) is the number two reason that people start their own business, right behind the lack of better career prospects E) does not rank among the top three reasons that people start their own business
A
7) Which of the following is not an example of a social force? A) Changes in interest rates B) Increasing participation in social networks C) Increasing diversity of the workplace D) Aging of the population E) Continual migration of people from small towns and rural areas to cities
A
1) A(n) ________ is a favorable set of circumstances that creates the need for a new product, service, or business. A(n) ________ is a thought, an impression or a notion. A) scheme, notion B) opportunity, idea C) idea, design D) idea, opportunity E) notion, scheme
B
21) A firm's ________ is a plan for how it competes, uses its resources, structures its relationships, interfaces with customers, and creates value to sustain itself on the basis of the value it creates. A) business plan B) business model C) tactical model D) strategic plan E) operations model
B
4) Apple is an established firm that encourages and emphasizes entrepreneurial behavior throughout its various divisions. According to the textbook, Apple practices ________ entrepreneurship. A) tactical B) corporate C) strategic D) business E) enterprise
B
7) According to the textbook, entrepreneurs are ________. A) gamblers B) moderate risk takers C) aggressive risk takers D) forceful risk takers E) minimal risk takers
B
11) Which of the following statements is not true about women-owned businesses in the United States? A) The number of women-owned businesses is decreasing. B) A total of 33 percent of women-owned businesses are owned by minorities. C) In some industries, women own a significant share of the business. D) The number of groups that support and advocate for women-owned businesses continues to increase. E) Between 1997 and 2013, the number of women-owned businesses increased at a rate of one-and-a-half times the national average.
C
15) Which of the following statements is incorrect regarding the personal characteristics of entrepreneurs? A) Some people think that entrepreneurs have a "sixth sense" that allows them to see opportunities that others miss. B) The extent and depth of an individual's social network affects opportunity recognition. C) Several studies show that prior experience in an industry actually blinds an entrepreneur to the recognition of new opportunities in the same industry. D) Creativity is the process of generating novel or useful ideas. E) The corridor principle states that once an entrepreneur starts a firm, he or she begins a journey down a path where "corridors" leading to new venture opportunities become apparent.
C
16) In the book The Theory of Economic Development, ________ argued that entrepreneurs develop new products and technologies that, over time, make current products and technologies obsolete. This process is called creative destruction. A) Malcolm Gladwell B) Seth Godin C) Joseph Schumpeter D) Thomas Friedman E) Jim Collins
C
3) Google is a firm that is proactive, innovative and risk-taking. From this description, we can most accurately conclude that Google has a high level of ________. A) enterprise focus B) innovative intensity C) entrepreneurial intensity D) creative intensity E) innovative concentration
C
5) GasBuddy and GasPriceWatch.com are companies started to help consumers save money on gas. Which environmental trend is most likely to have provided the impetus for the creation of these companies? A) Regulatory changes B) Political changes C) Economic forces D) Technological advances E) Social forces
C
16) The ability to notice things without engaging in deliberate search is referred to as ________. A) cognitive alertness B) cognitive awareness C) managerial alertness D) entrepreneurial alertness E) individual awareness
D
17) According to the textbook, entrepreneurship has historically had ________. A) a major impact on the economy and minor impact on society B) a minor impact on both the economy and society C) a major impact on society and minor impact on the economy D) a major impact on both the economy and society E) no impact on either the economy or society
D
5) The three primary reasons that people become entrepreneurs and start their own firms are to ________. A) gain prestige, realize financial rewards, and eliminate risk in their lives B) do what they were "born" to do, be their own boss, and gain prestige C) take big risks, be their own boss, and do what they were "born" to do D) be their own boss, pursue their own ideas, and realize financial rewards E) take advantage of government subsidies, pursue their own ideas, and realize financial rewards
D
9) The increasing number of social networks on the Internet is attributed to a jump in the number of people who are wanting to connect with one another online. The increasing number of social networks is an important ________ trend. A) political B) economic C) legal D) social E) demographic
D
1) Which of the following is an accurate characterization of interest in entrepreneurship? A) There is minimal interest in entrepreneurship across the world. B) There is minimal interest in entrepreneurship in North America and Europe, but significant interest in Asia and Australia. C) There is significant interest in entrepreneurship in North America and Europe, but minimal interest in Asia and Australia. D) While interest in entrepreneurship was once high, it is waning in popularity across the world. E) There is tremendous interest in entrepreneurship across the world.
E
11) In 2000, Tish Cirovolo realized that there were no guitars on the market made specifically for women. As a result, she started Daisy Rock Guitars, a company that makes guitars just for women. Daisy Rock Guitars are stylish and come in feminine colors, and incorporate design features that accommodate a woman's smaller hand and build. The best way to describe how Cirovolo's business idea was recognized is ________. A) brainstorming B) talking to consumers C) reading industry reports D) observing trends E) finding a gap in the marketplace
E
2) Cody Rodgers is the founder of a company named Extreme Sports Apparel. The company makes apparel products for extreme sports enthusiasts such as rock climbers, triathletes, skateboarders, and BMX bikers. Cody wants his company to pursue a high level of corporate entrepreneurship. To achieve that goal, Cody's firm should be ________. A) innovative, risk averse, and take a "wait and see" posture B) taking a "wait and see" posture, innovative, and risk taking C) proactive, not innovative, and risk taking D) taking a "wait and see" posture, not innovative, and risk averse E) proactive, innovative, and risk taking
E
8) An increased focus on health and wellness has resulted in a number of new business ideas including healthier foods and beverages, yoga instruction and training centers, and nutrition consulting. An increased focus on health and wellness is an important ________ that is creating opportunities in many areas for entrepreneurial firms. A) economic force B) regulatory force C) legal force D) technological advances E) social force
E
8) Which of the following statements is incorrect regarding entrepreneurial activity and age range? A) The highest percent of business owners fall in the 30-39 age range. B) The lowest percent of business owners fall in the 60+ age rage. C) The majority of business founders have no prior work experience. D) The majority of individuals who start companies are in their thirties and forties. E) Entrepreneurial activity is fairly evenly spread out over age ranges.
E
9) Pacific Fishing LLC is a startup that is working on a new technology for the fishing industry. Because the technology it's working on is highly proprietary, the company is located in the warehouse district of a large western city. Pacific's founder, Ray Sims, rarely gives interviews and is careful to not divulge much about what the company is doing. Which of the following common myths about entrepreneurs does the behavior of its founder, Ray Sims, dispel? A) Entrepreneurs are born, not made. B) Entrepreneurs are gamblers. C) Entrepreneurs are motivated primarily by money. D) Entrepreneurs should be young and energetic. E) Entrepreneurs love the spotlight.
E
10) Entrepreneurs are motivated primarily by money.
F
12) Over the past 10 years, the demographic makeup of entrepreneurial firms has remained fairly stable in the United States and around the world.
F
13) Although interest in entrepreneurship remains high nationwide, the number of women-owned businesses is decreasing.
F
14) Aging of the population, the increasing diversity of the workplace, and the continual migration of people from small towns and rural areas to cities are important economic trends
F
14) Unfortunately, statistics show that there is very little interest in entrepreneurship among young people in the United States.
F
2) An idea is a favorable set of circumstances that creates a need for a new product, service, or business.
F
12) The three ways to identify an opportunity include observing trends, solving a problem, and finding gaps in the marketplace
T
13) Economic factors, social factors, technological advances, and political action and regulatory changes are the most important trends to follow in trying to identify opportunities
T
18) Joseph Schumpeter argued that entrepreneurs develop new products and technologies that over time make current products and technologies obsolete, and this process, which he called creative destruction, is good because it stimulates economic activity.
T
19) Innovation is the process of creating something new, which is central to the entrepreneurial process.
T
3) An opportunity has four essential qualities. It is (1) rare, (2) attractive, (3) timely, and (4) anchored in a product, service, or business that creates or adds value for its buyer or end user
T
4) An idea is a thought, impression, or notion. It may or may not meet the criteria of an opportunity
T
