MGT 4220 - Chapters 1-4

Cognition is defined as

A person's way of perceiving and thinkings about his or her experience.

A set-aside is

A government contracting fund earmarked for particular kinds of firms, such as small businesses, minority-owned firms, or women-owned firms.

Incremental strategy is

Taking an idea and offering a way to do something slightly better than it is presently done.

An imitative strategy is _______.

An overall strategic approach in which the entrepreneur does more or less what others are already doing

Which of the following is a practice that can create an innovative frame of mind?

Ask customers what problems they cannot solve on their own. Regularly scan the environment and discuss trends and events that could affect the business. Invite new people to a problem-solving meeting.

Passion, perseverance, promotion-prevention focus, and planning style are

Aspects of behavior that successful entrepreneurs have in common.

Which of the following are approaches to managing a firm's external relations?

Building legitimacy Developing a social network

The sum of all the forces outside the firm or entrepreneur is known as the _______.

Environment

________ ________ involves searching and capturing new ideas that generate business opportunities.

Opportunity recognition

The solution section of the business model canvas focuses on how ____________.

The business plans to handle the problem-solving pains or create gains for its customers

A customer-focused approach using interviews, observation, and exercises to create services and products that provide demonstrated evidence of solving customers' problems is called _________ __________.

Design thinking

______ ______ involves having a special set of observational and thinking skills that helps businesspersons identify good opportunities.

Entrepreneurial Alertness

Which of the following statements about legitimacy are correct?

Entrepreneurs who are seen as different often have difficulty establishing legitimacy. Building trust among customers and other key groups is important to gaining legitimacy. Gaining it is a top challenge that new business face.

_______ is a system of values that people consider in determining whether actions are right or wrong.

Ethics

In the context of pursuing opportunities in other countries, _______ refers to taking services and products made in an individual's home country and selling them in other countries.

Exporting

Which statement regarding how to handle a crisis are correct?

Have one person as the firm's spokesperson Deal with the crisis quickly Get to the scene as soon as possible

_______ strategy is an overall strategic approach in which the entrepreneur does more or less what others are already doing.

Imitative

A family business is a firm

In which one family owns a majority stake and is involved in the daily management of the business.

_____ is the belief that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors.

Legitimacy

The ______ section of the business model canvas focuses on the pain to be solved and potential gain customers will benefit from.

Problem

_____ focus is an entrepreneur's attention to maximizing gains and pursuing opportunities likely to lead to gains.

Promotion

A "_____ ______" approach suggests thinking of entrepreneurial opportunities in terms similar to buying a stock option, putting a small amount of money down now to let you invest more at favorable rates later.

Real Options

Which of the following are examples of a network connection?

Religious and civic organizations Business associations Family and friends

Which of the following are examples of a network connection?

Small business support organizations Electronic networks like LinkedIn.com Co-workers and customers

In the context of the IDEO screen, in which of the following elements should new ideas be high?

Technical Feasibility Market Desirability Business Viability

Which of the following statements about the feasibility study are correct?

The areas consist of: the business idea, product/service, industry and market, financial projections, and plan for future action. One should examine the strengths and weakness of each opportunity within each of the five areas. It evaluates the potential of a business opportunity by investigating five primary areas.

Which of the following statements about the business life cycle are correct?

The key issues, actions, and lessons for each stage are different. Knowing the life cycle stages can help better understand a small business. There is a lot of predictability in the business growth process.

Creativity is

The process of producing an idea or opportunity that is novel and useful.

Growth rewards Income rewards Flexibility rewards

The rewards individuals earn from facing and beating challenges The money earned by owning one's own business. The rewards individuals earn from facing and beating challenges.

The environment is

The sum of all the forces outside the firm or entrepreneur.

Which of the following statements about a crisis are correct?

The survival of the business is at stake. Immediate action is necessary. It poses a major problem for the business or its people.

The _____ life cycle is the sequence or pattern of developmental stages any firm goes through during its life span.

Business

_____ are forms of business-related expertise.

Competencies

Which of the following statements about entrepreneurial passion are correct?

It has multiple benefits, such as increasing one's commitment to a business. It is displayed by being persistently focused on the business. An entrepreneurs' passion can inspire key stakeholders.

Which of the following are true of entrepreneurial alertness?

It includes the ability to notice things that have been overlooked. It includes the motivation to search for opportunities

Which of the following is true of opportunity recognition?

It involves creative thinking that results in the discovery of novel and useful ideas.

In context of screening ideas, which of the following is true of the IDEO screen?

It is a technique for performing a rapid initial analysis of ideas to determine their potential

A ______ can be any problem, annoyance source of aggravation, shortcoming, or suboptimal situation customers or potential customers face.

Pain

_____ is an intense positive feeling an entrepreneur has toward the business or the idea behind the business.

Passion

Which of the following is one of the key elements of entrepreneurial culture?

Passion for Customer Passion for Fairness Passion for Innovation

All of the following are one of the six key elements of entrepreneurial culture except

Passion for Suppliers

____ is the ability to stick with some activity even when it takes a long time and its outcomes is not immediately known.

Perseverance

Which of the following are entrepreneurial behaviors that most successful entrepreneurs display?

Perseverance Passion Promotion/Prevention focus Professionalization Planning Style

_____ are government contracts earmarked for particular kinds of firms, such as small businesses, minority-owned forms, or women-owned firms.

Set-asides

The ______ section of the business model canvas focuses on how the business plans to handle the problem-solving pains or create gains for its customers.

Solution

Which of the following are pitfalls that entrepreneurs may fall victim to when attempting to become more innovative?

Stopping with the first good idea Failing to act Obeying rules that don't exist

Which of the following statements about the customer segments section of the business model are correct?

There is often more than one type of custom segment. Customer segments build from the IDEO screen work-up. Each customer segment usually has its own problem and value proposition.

______ us a person's way of perceiving and thinking about his or her experience.

Cognition

______ is/are the general description for the processes and skills used in the management of a firm's interactions with people, organizations, and institutions outside of its boundary.

External relations

The ______ is a way to identify and organize key information on a business and how it achieves it goals.

Business Model

A ______ is a group or subgroup of potential purchasers that can be approached in a coherent manner.

Customer segment

Competencies are

Forms of business-related expertise.

_______ strategy is taking an idea and offering a way to do something slightly better than it is presently done.

Incremental

The value proposition section of the business model canvas

Is the small business owners' unique selling points or benefits that customers can expect from the goods or services.

Which of the following statements about sustainable entrepreneurship are correct?

It maximizes the use of recycled material, improves the environment, or both. It exploits opportunities to make a profit in a manner that minimizes the depletion of natural resources. Nearly half of small businesses recycle paper and cans.

Which of the following statements regarding ethics are correct?

People make judgements about actions based on their personal ethics. Ethics is a system of values. People consider ethics in determining whether decisions are good or bad.

Which of the following statements about sociological characteristics are true?

Some social groups lack protection, but have powerful influence over entrepreneurs. Some of groups are protected from discrimination by federal laws. They relate to the social groups to which he or she belongs such as family, gender, religion, and race.

Which of the following statements regarding small business' effects on job creation are correct?

Start-ups in the first two years of operations are responsible for virtually all the net new jobs in the US. They are responsible for creating 65.9 of the new jobs since 2000. They are key employers for offering jobs to people with atypical work histories or needs.

T/F: Perseverance is an important characteristic of entrpreneurs.

True

T/F: Small businesses offer surprising opportunities to large businesses and entrepreneurial high-growth ventures.

True

Which of the following are recommend techniques for practicing innovation?

Try a mini-internship Redesign the work environment Reading trade journals outsides one's industry

Which of the following are myths regarding starting a business?

You can't start a business during a recession. Students don't have the skills to start a business. There isn't enough financing.

The external environment

Consists of the forces, institutions, and people (I.e. the rest of the world) outside the boundary of a firm.

Which of the following statements is true of the term "gain" in the context of the business model canvas approach?

It is one of the two driving forces to create new services or products.

Which of the following are true of a "real options" approach?

It reflects a choice firms face to do or not do something. It involves establishing benchmarks to achieve and timetables for those achievements.

Which of the following statements about perseverance are correct?

Trying again is the behavior behind perseverance. It is a type of optimism. It is a powerful contributor to an entrepreneur's success.

Which of the following are the rewards that are important to small business owners?

A livable income Flexibility

Which of the following statements about second career entrepreneurs are correct?

About 33% decide they want to become self-employed. They sometimes retire early and decide they want to work rather than retire. They start businesses due to being laid off after corporate mergers and downsizing.

Which of the following are one of the three ways passion is displayed by an entrepreneur?

By being persistently focused on the business By looking at the challenges of the business in a creative way By being absorbed by the business's tasks and concerns

________ is the process of producing an idea or opportunity that is novel and useful, frequently derived from making connections among distinct ideas or opportunities

Creativity

A _______ is a group or subgroup of potential purchasers that can be approached in a coherent manner.

Customer segment

The _____ environment consists of the forces, institutions, and people (I.e., the rest of the world) outside the boundary of a firm.

External

T/F: In comparison with personality characteristics, sociological characteristics have little or no effect on entrepreneurs.

False

A ____ is a firm in which one people who are related owns a majority stake and is involved in the daily management of the business.

Family business

A ______ evaluates the potential of a business opportunity by investigating five primary areas: the business idea, product/service, industry and market, financial projections, and plan for future action.

Feasibility study

Which of the following are pitfalls that business can experience when attempting to become more innovative?

Identifying the wrong problem. Stopping with the first good idea. Judging ideas too quickly.

Which of the following statements about the business model canvas are true?

It is an analytical tool used in developing a start-up that would appeal to customers, compete well, and earn a profit. It is a great way to identify and organize key information about a business and how it will achieve its goals. It consists of 11 factors such as value proposition, key partners, and revenue streams.

Which of the following statements about a promotion focus are correct?

It is one of the two internal or regulatory focuses. It has a bias toward maximizing gains, thus pursuing opportunities likely to lead to gains. It can yield better results in richer, dynamic, uncertain environments or industries.

Which of the following statements about the new opportunities that are generated by small businesses are correct?

Small Business owners are presented with opportunities to improve their life, wealth, and move upwards in the US economy and society. Small business owners help communities stand on their own through offering a variety of businesses They provide opportunities for people who face problems fitting into existing firms and immigrants who face limitations. They offer communities to enjoy goods and services they may not otherwise, since they adapt to local needs.

______ entrepreneurship is an approach to the operation of a firm, the line of business of a firm, or both, which identifies or creates and then exploits opportunities to make a profit in a manner that minimizes the depletion of natural resources, maximizes the use of recycled material, improves the environment, or any combination of these outcomes.

Sustainable

A(n) ________ is any kind of outcome customers or potential customers would like to encounter or be able to depend on.

Gain

______ entrepreneurs are those who begin their businesses after having left, retired, or resigned from work.

Second Career

_______ is the extent to which an idea is viable and realistic and the extent to which the entrepreneur is aware of internal and external forces that could affect the business.

Feasibility

Which of the following statements regarding starting a small business are correct?

Fifty-six percent of those aged 15 to 25 want to start a business. There are a number of myths about starting a business that stop people. Only 14.7% of 15 to 25 years old were taking steps.

The ______ section of a business model canvas is the business' unique selling points or benefits that customers can expect from the goods or services, including benefits that differentiate the business' offerings from its competitors.

Value Proposition

Which of the following statements about feasibility are correct?

It is the next-step process after the IDEO screen. The two main ways of examining feasibility are the business model canvas process and the classic feasibility study. It is the extent to which an idea is viable and realistic.