MGT 310- Ch 7
Which characteristics are associated with successful entrepreneurs?
Innovative, with knowledge and skills in business management and networking
What organizational tendency requires the firm to support new ideas, experimentation, and creative processes?
Innovativeness
What are the three common models individuals can choose from when starting a new e-commerce business?
Business-to-business Subscription Storefront
Select the benefits of a business plan. (Check all that apply.)
It helps entrepreneurs obtain financing. It helps determine the viability of the enterprise. It serves as a guide as the entrepreneur plans and organizes.
What elements must be considered when contemplating a franchise? (Check all that apply.)
Market share Market presence Nature of the business Terms of the license agreement
What technological advances have created entrepreneurial possibilities? (Check all that apply.)
Microcomputers Nanotechnology Biotechnology
Informal work on projects other than those officially assigned, of the employees' own choosing and initiative, is called Blank______.
bootlegging
What are the two common approaches used to stimulate intrapreneurial activity?
bootlegging skunkworks
After a young business begins gaining a foothold and establishing itself, a ______ can help entrepreneurs build and launch a rapidly successful venture.
business accelerator
New venture creators who work inside an existing company are called Blank______.
intrapreneurs
A(n) Blank______ firm will have an easier time acquiring other resources such as top managers, good employees, financial resources, and government support.
legitimate
Getting support for a project from peers before seeking formal approval from higher levels in a company is known as Blank______.
making cheerleaders
What factors influence the success or failure of business start-ups? (Check all that apply.)
management-related challenges economic environment
What are the two major liabilities of start-ups? (Check all that apply.)
newness smallness
The Blank______ factor of the business plan should provide a competitive advantage that can be defended.
opportunity
In the launch of a business, the first formal planning step is a(n) Blank______, which provides the basis for making a decision on whether to act.
opportunity analysis
The most dangerous risk in corporate entrepreneurship is the risk of Blank______.
overreliance on a single project
Many entrepreneurs want Blank______ investors who will give them money and let them do what they want.
passive
Business accelerators ______.
provide support to young businesses that have begun to establish a foothold
What key business element is often an entrepreneur's greatest challenge?
raising money to start the business
One common entrepreneurial problem is an aversion to Blank______.
record keeping
What are some of the benefits offered by incubators? (Check all that apply.)
shared staff costs technical services business services low rent
How can an entrepreneur maintain vigilance over various aspect of the business? (Select all that apply)
Asking critical questions Having good controls
What type of new business has growth and high profitability as primary objectives?
Entrepreneurial venture
In which ways would an entrepreneurial venture be different from a small business?
Entrepreneurial ventures have growth and high profitability as primary objectives. Small business owners tend not to manage aggressively; they expect normal, moderate sales, profits, and growth. The financial backers of entrepreneurs usually seek rapid growth and immediate and high profits.
As an entrepreneur, the challenge called "you might not enjoy it" presents which problem?
Entrepreneurs usually have to do all of the functions of running a business, even those areas they do not like or know how to do.
True or false: A small business differs from an entrepreneurial venture in that a small business operates for growth and profitability, while an entrepreneurial venture is just an innovative idea that can enhance a small business' growth potential.
False
True or false: A small business differs from an entrepreneurial venture in that a small business operates for growth and profitability, while an entrepreneurial venture is just an innovative idea that can enhance a small business' growth potential. True false question.
False
True or false: Management has very little influence on fostering entrepreneurial orientation.
False
What are people seeking when they start their own businesses? (Check all that apply.)
Feeling independent and being part of the action Tremendous satisfaction in building the business and watching it grow and succeed Better quality of life than they might have at big companies Opportunities after they see their progress or ideas blocked at large organizations
What is the promise of payoffs from the project in return for support, time, money, and other resources?
Horse trading
Which statement about Initial Public Offerings (IPOs) is true?
IPOs need to be federally registered.
What is the first-time sale of federally registered and underwritten shares of company stock to the public?
Initial public offering (IPO)
Drag each description to the type of social enterprise that matches it.
The environment: Promoting responsible consumption and habitat conservation Social and economic inclusion: Empowering marginalized groups, revitalized neighborhoods and reducing community violence Health and well-being: Preventing and reducing health risk behaviors and improving access to health care Civic engagement: Community volunteering, charitable giving, and responsible investing
What are the two mistakes entrepreneurs often make about financial resources?
They apply financial resources to the wrong uses. They spend too much.
Which statements are true about the people in your entrepreneurial business? (Select all that apply.)
They should be energetic. They should be good with ideas but ready to switch ideas if necessary. They should have skills relevant to the venture.
What are reasons that entrepreneurial businesses go public by using IPOs? (Check all that apply.)
To raise more capital To pursue otherwise unaffordable opportunities To reduce debt To improve credibility with customers
Entrepreneurship involves Blank______.
creating new systems, resources, or processes to produce new goods or services and/or serve new markets
The central objective of entrepreneurship is Blank______.
creating value
Once a business begins to grow, entrepreneurs must be able to Blank______.
delegate work to other people
As an entrepreneurial business grows, leadership often Blank______.
deteriorates into micromanagement
Due to rising oil prices, there has been a variety of developments in alternative energy or energy-efficient products. These are possible entrepreneurial opportunities due to Blank______.
economic dislocations
One market that traditionally has been dominated by the government and large defense contractors but that is now being explored by smaller entrepreneurs is Blank______.
exploring outer space
New companies without much of a track record Blank______.
face more hurdles attracting investors and customers
Risk refers primarily to the probability of major Blank______ loss.
financial
Lourdes, an innovator, has created a successful store and wants to grow the business. She finds a partner who agrees to manage a new store of the same type as Lourdes' but in a new location. The partner will pay Lourdes for allowing him to use her business model and name. This type of arrangement is called Blank______.
franchising
A great product, a viable market, and Blank______ are essential ingredients to entrepreneurial success.
good timing
A(n) Blank______ is often defined as having fewer than 500 employees, being independently owned and operated, not dominant in its field, and not characterized by many innovative practices.
small business
A competitive advantage in the form of relationships with other people and the image other people have of you is called ______ capital.
social
Organizations that use market-based methods to leverage resources to address social problems are referred to as Blank______.
social enterprises
Which of the following is a key difference between an entrepreneur and an intrapreneur?
An entrepreneur receives no corporate support, whereas an intrapreneur has the benefit of corporate support.
Small businesses whose primary focus is not e-commerce can create attractive websites that do which of the following? (Check all that apply.)
Bring them closer to suppliers, investors, and service providers. Add to their professionalism. Give them access to more customers.
What are two typical ways entrepreneurs can exploit opportunities?
By exploring domains that are avoided by large companies By introducing goods or services that capture the market because they are simpler, cheaper, more accessible, or more convenient
When a company releases a product before its competitors to beat them to the punch or deliberately targets competitors' weaknesses, what is it engaging in?
Competitive aggressiveness
What is likely to happen if there are too many entrepreneurial projects in a company? (Check all that apply.)
Each effort might be too small in scale. Those recruited to manage the projects might have difficulty building power bases within the organization.
Personal Observations
Finished Products were beautiful Saw Women's desire to own their own business
Which of the following best captures Larry's feelings about the relationship between his start-up capital and the success of his venture?
He's got plenty of start-up capital, so he'll be sure to be successful.
What is the creation of something new and different called?
Innovation
Corporate entrepreneurs are also called
Intrapreneurs
Which of the following is true about social entrepreneurship?
It creates economic value and social benefits simultaneously.
Select the characteristics that define a small business. (Select all that apply.)
It is independently owned. It is independently operated. It is not dominant in its field.
What are two traits of an entrepreneurial venture?
It works toward a quick sellout with large capital gains. It seeks rapid growth.
Who among the following most likely possesses the key characteristics of a successful entrepreneur?
Juana is very innovative and knowledgeable and believes that she would be a successful entrepreneur.
What nonfinancial resource involves people's judgment of a company's acceptance, appropriateness, and desirability?
Legitimacy
Nonfinancial resources include which of the following? (Check all that apply.)
Legitimacy in the minds of the public
Which survival difficulties are true of entrepreneurial ventures? (Check all that apply.)
Mistakes in a start-up are potentially devastating. Increased competition can cause start-ups to fail. New ventures have more trouble lining up investors.
Which of these are characteristics of an entrepreneurial personality? (Check all that apply.)
Motivation to excel Leadership Commitment and determination
Management guru Peter Drucker states that family-managed businesses should take which of the following measures in order to survive? (Check all that apply.)
Not all of the key positions should be filled only by family members. Family members working in the business must be as capable as other employees.
Entrepreneurs are more likely to succeed if they have which one of these characteristics?
Opportunity obsession
Which are advantages of partners? (Check all that apply.)
Partners can share expertise. Partners can share the risk. Partners can help with the workload.
When faced with early failures, what do successful entrepreneurs do? (Check all that apply.)
Persist in the face of failure. Revise the initial idea. Kill the initial idea but not the company.
Which are common reasons people become entrepreneurs? (Check all that apply.)
Personal satisfaction Profit potential The challenge Better quality of life
Which statements about business plans are true? (Select all that apply.)
Potential investors want to know more than just financial projections. Many business plans focus heavily on financial projections.
What type of firms are forward thinking and fast to act and are leaders rather than followers?
Proactive
What is the difference in the value of passive or nonprofessional investors with venture capitalists investors? (Check all that apply.)
Professional venture capitalist investors demand more control and more of the returns. Passive investors will give entrepreneurs the money but let them do what they want. Professional venture capitalist investors are likely to solve problems and know how to help.
Business incubators are
Protected environments for new, small businesses
Which factors in the economic environment improve business prospects and increase sources of capital? (Check all that apply.)
Real economic growth Increases in the supply of bank loans Increases in the money supply (capital) Improved stock market performance
Which statement regarding risk in a business plan is true?
Risk must be understood and addressed as fully as possible.
What tendency comes from a willingness to commit significant resources and perhaps to borrow heavily, to venture into the unknown?
Risk taking
______ creates social value by stimulating social change or meeting social needs.
Social entrepreneurship
In what ways can businesses whose primary focus is not e-commerce add value through the use of the Internet? (Check all that apply.)
Start-ups and established small companies can add to their professionalism by creating an attractive website. Traditional companies can save money on customer service/support. Start-ups and established small companies can have more access to customers, suppliers, investors, and service providers.
Drag each example of a company to the type of e-commerce business model that matches it.
Storefront:Websites like Amazon or Walmart Subscription:Websites like The Wall Street Journal Business-to-business: Customer relationship management firms like Salesforce
Which statement about partnerships is true?
Successful partnerships involve honest communication.
How important are nonfinancial resources to new venture success?
The are essential to the success of a new business.
Which of the following is true of the role of the economic environment in the success of entrepreneurial ventures?
The economic environment affects the success of entrepreneurial ventures by affecting the supply of capital and prospective opportunities.
Tiyona Motors plans to introduce a fast, stylish car to its fleet that management hopes will appeal to high-end buyers and grant Tiyona entry into the luxury market. Based on this scenario, what possible outcome should Tiyona be prepared for?
The financial investment will be high, and the competition will be heavy.
Which of the following best captures Larry's view of entrepreneurs?
They are their own bosses and are completely independent.
True or false: An obvious risk of intrapreneurship is failure.
True
Which factors influence the role of the economic environment on entrepreneurial activity? (Check all that apply.)
While bad times in the economy may be challenging, it can also offer an opportunity to expand. Increases in money leads to an increase in prospects and sources of capital, which can increase the rate of business formation. Downturns in the economy require entrepreneurs to have foresight and talent to survive. Entrepreneurial activity stems from the economic environment as well as the behavior of individuals.
Which of the following is a formal planning step that focuses on an entire venture and describes all the elements involved in starting it?
a business plan
Identifying environmental context is important in a business plan because ______. (Check all that apply.)
a favorable regulatory and economic environment will affect the viability of the new venture it can make it easier or harder to get backing and to succeed
For an entrepreneur, the nonfinancial resource of a strong network of people is Blank______.
a great aid for success
Larry is thinking he will be a great entrepreneur because he sees himself as which of the following?
a lone wolf who doesn't like working with others
A(n) Blank______ is a group of people willing to help an entrepreneur learn basics, identify needed strategic changes, and build relationships with bankers.
advisory board
Entrepreneurs can assemble a group of people to help them learn the basics of business and build relationships with bankers, accountants, and attorneys. Such a group is called a(n)
advisory board
Another reason Larry is confident about being an entrepreneur is because he sees his high SATs as which of the following?
an indicator of successful entrepreneurship
Which are included in an opportunity analysis? (Check all that apply.)
assessment of the opportunity source of capital assessment of the entrepreneur description of the good or service specification of resources needed
Which are the five tendencies that determine entrepreneurial orientation?
being competitively aggressive being proactive taking risks allowing independent action fostering innovation
Carl, lab manager for MedEx Pharmaceuticals, told his research chemist, "Mandy, you have my blessing to use company equipment on evenings and weekends to create new products and processes of your own choosing and initiative. I know that this will result in some lost time, but I also know that it will contribute to learning and, ultimately, some profitable innovations." Carl's advice to Mandy is an example of
bootlegging
Where money is made
boutiques showed interest in shoes opportunity for internet sales
The Blank______ describes all the elements involved in starting the new venture.
business plan
When writing a business plan, the cofounders of Zappos considered the impact of other online shoe stores, as well as shoe departments in department stores. This is an example of considering Blank______ in a business plan.
competition
A tendency to outperform one's rivals in the marketplace is called Blank______.
competitive aggressiveness
Which of the following is one of the five key factors that entrepreneurs are required to have thought through?
context
When an enterprising individual pursues a lucrative opportunity, it is known as
entrepreneurship.
An entrepreneurial alliance between an innovator who has created 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
franchising.
Driven by advances in technology coupled with changes in the medical field, opportunities are arising in the Blank______ sector.
health care
Legitimacy increases the probability of success of a new business by
helping a firm acquire resources such as top managers and good employees.
What items should be covered when discussing competition in the business plan? (Check all that apply.)
how the company will respond to the competition identification of the current competitors the strengths and weaknesses of the competition
The need to provide a nurturing environment for a fledgling enterprise led to the creation of business Blank______.
incubators
Which of the following provides a way to raise capital through federally registered and underwritten sales of shares in the company?
initial public offering
Which are risks that must be considered in the business plan? (Check all that apply.)
interest rates changing fierce competitor responses key people leaving the company losing a key customer
Han has an innovative idea for a new technology service and wants to start his own business. Han is most likely to be successful if he Blank______.
is creative and and has good business know-how
One of the common challenges entrepreneurs face is
lack of enjoyment in what they do.
In order for Larry to be a successful entrepreneur, he needs to be knowledgeable and have
networking skills.
To be Blank______ means to act in anticipation of future problems and opportunities.
proactive
Which of the following is an example of an entrepreneurial opportunity categorized under economic dislocations?
rising oil prices
Renee works as a respected senior engineer for a large manufacturer of pharmaceutical process equipment. Several researchers within the company have discovered an innovative way to repackage pharmaceutical drugs. The company has given Renee the opportunity and responsibility to lead a fully funded project team for 12 months to develop this idea. She is excited to lead this ________ team.
skunkworks
A(n) ________ differs from an entrepreneurial venture in that it is not managed aggressively, and its owners expect normal, moderate levels of sales, profits, and growth.
small business
Leveraging resources to address social problems is called Blank______.
social entrepreneurship
Organizations court failure when they Blank______.
spread their entrepreneurial efforts over too many projects
Founding entrepreneurs often fail to plan for Blank______, an issue tied to the entrepreneurs' mortality.
succession
Larry's thoughts about starting a business and the length of time it takes to reach profitability are based on the assumption that
talented entrepreneurs are able to make a business profitable within one year.
Which factors are associated with environmental context? (Check all that apply.)
tax policies interest rates inflation exchange rate
A company's advisory board can do which of the following? (Check all that apply.)
teach the basics of business operation build relationships with other professionals identify needed strategic changes
A disadvantage of going public is the Blank______.
tendency to focus more on the stock price rather than running the business
Select the elements regarding customers that must be addressed in a business plan. (Check all that apply.)
the cost to acquire and support a customer the decision-making process of the customer the ease or difficulty to retain a customer
Which of the following e-commerce business models brings buyers and sellers together and charges a commission for each sale?
the intermediary model
The primary difference between entrepreneurship and intrapreneurship is Blank______.
the level of corporate support and company resources
An entrepreneur has the most incentive to be careful with financial resources if Blank______.
the money comes from the entrepreneur's own assets
One of the keys to starting a business is obtaining the money to do so. Where do start-up businesses typically get most of their money from?
the owners, their families, and bank lines of credit
For many astute investors, the most important variable of business plans is Blank______.
the people
In addition to the financial projections, the best business plans convey which key factors? (Check all that apply.)
the people the opportunity the risks and rewards the competition the context
market need to be filled
theres a market for handcrafted goods in US
One thing entrepreneurs may not realize when they begin their venture is that Blank______.
they usually have to work every aspect of the business
To spot opportunities for entrepreneurial ideas, you should Blank______.
think carefully about events and trends as they unfold
Underlying social condition
women wanted and needed to earn a living
Larry is sure that entrepreneurs do which of the following?
work harder than managers in big companies
