Deck 5: Managing Entrepreneurially

Question 1

For the past two months,Ian has been looking at the potential of a new compact solar capture technology he has developed.This technology would make it economically feasible for condominium owners to harness the sun on their balconies and use the generated electricity to offset the power purchased from their local electricity provider.If the business takes off,it would revolutionize the relationship between power authorities and their customers-where both sides would be power generators and clients.This process is known as ________.

A)creative social-preneurship
B)creative entrepreneurship
C)revolutionary venture
D)creative destruction

Answer 1

D

Question 2

The Timmons Model discounts the popular notion that extensive resources reduce the risk of starting a venture and instead ________.

A)focuses on developing a comprehensive business plan
B)suggests hiring a full slate of capable employees at the outset
C)starts with the bare minimum to attain competitive advantage
D)ensures that contingency plan is in place

Answer 2

C

Question 3

Ingrid has been working as a brand manager for a large multinational consumer goods company for the past 12 years.She is starting to get tired of working for someone else and wants to start her own company.Right now her job is giving her the opportunity to scan the industries her company is involved in and look for opportunities in areas her company cannot address quickly or is not interested in pursuing.She is being ________.

A)entrepreneurially active
B)capitalistically clever
C)ethically innovative
D)entrepreneurially alert

Answer 3

D

Question 4

In the course of transformation that must happen from following through with a radical innovation and taking advantage of it,the venture goes through a process called ________.

A)feasibility assessment
B)applied research
C)idea generation
D)creative destruction

Question 5

Aside from innovation the importance of entrepreneurship can be shown in three areas: ________.

A)job creation,new product development,and increase in economic activity
B)global entrepreneurship,applied research,and social responsibility
C)social responsibility,number of new startups,and job creation
D)number of new startups,job creation,and global entrepreneurship

Question 6

Entrepreneurs are able to perceive opportunities for profits by ________.

A)working hard to make success of the business
B)being sensitive to signals in the marketplace
C)ensuring they hire the right employees
D)developing policies and procedures to guide employee actions

Question 7

An organization that is independently owned,operated,and financed; has fewer than 100 employees; and does not necessarily engage in any new or innovative practices is known as a(n)________.

A)small business
B)entrepreneurial venture
C)small holding company
D)subsidiary

Question 8

The entrepreneurial process starts with ________.

A)identifying customers
B)developing the product/service
C)exploring the entrepreneurial context
D)applied research

Question 9

Conventional entrepreneurship models start with the business plan.The Timmons model looks at the entrepreneurial process a bit differently.It starts with a market opportunity and ________.

A)the ability of the founder to access financial resources quickly
B)the capacity of the founder to see the future more coherently than their nearest competitor
C)the ability of the founder to find the right people for specific roles quickly
D)the capacity of the founder to distinguish between an idea and an opportunity

Question 10

The final step in the entrepreneurial process is ________.

A)identifying the customers
B)preparing a marketing plan
C)managing the venture
D)conducting research

Question 11

One of the desirable skills for an entrepreneur is ________.

A)tolerance of risk and uncertainty
B)ability to understand use of technology for business
C)competence in bookkeeping
D)capacity to accept and follow procedures

Question 12

Creators of innovation that disrupt the status quo can be defined as ________.

A)change agents
B)social entrepreneurs
C)visionary leaders
D)business innovators

Question 13

Organizations that are started in response to needs within the community are known as ________.

A)communal cooperatives
B)public ventures
C)social enterprises
D)social networks

Question 14

Lisa has been hired by Lexman Corporation,a large multinational hydro-electric engineering firm,to launch a brand-new business under a different name.Funding will come from Lexman,but they want to take a hands-off approach and let Lisa run it as if it were her own business.The enterprise will market small,low-cost solar generators that individual homeowners can purchase and then easily relocate to a new home if they move.Executives at Lexman have told Lisa that the main Outcome in the first three years is growth and market penetration and then more of a focus on profit in year four and beyond.This is definitely a(n)________.

A)protective investment
B)entrepreneurial venture
C)social venture
D)social investment

Question 15

Imagine you are the entrepreneur behind a new wellness and yoga centre.Business planning has taken you about five months to complete.After that came the location development,construction of the wellness centre,and launching of the business.You are now in week 4 of the centre's operation and you are feeling a little tired from the seven-day weeks that have led up to this point.Thankfully you are noticing that revenues are about 15 percent above your most realistic projections.With a total staff of 17 (4 support staff and 13 wellness professionals and yoga teachers),you are realizing that a big part of your time is spent looking after people management issues.Which of the following is NOT a concern directly related to managing people?

A)motivating
B)training
C)managing conflict
D)marketing

Question 16

________ is at the heart of entrepreneurship.

A)Competent business planning
B)Effective leadership
C)Ethical innovation
D)Pursuing opportunities

Question 17

The International Standards Organization has developed standards ________ to highlight importance of ethics for entrepreneurs.

A)for truth in business planning
B)requiring sustainable human resource policies
C)for sustainability and social responsibility
D)focused on customer relationship management

Question 18

In exploring the context of a potential venture,the entrepreneur generally does three things: ________.

A)explores financing options,gathers information,and uncovers business ideas
B)researches the venture's feasibility,scouts locations,and gathers information
C)gathers information,identifies potential opportunities,and pinpoints possible competitive advantages
D)uncovers business ideas,analyzes competitors,and examines financing options

Question 19

Entrepreneurship is ________.

A)the process of starting a brand-new enterprise with four employees or less
B)the process of starting a new organization,generally in response to an opportunity
C)the process of taking an organization or venture private and away from the public domain
D)the development of an idea into a feasibility and subsequent business plan up to but not surpassing the actual start of the venture's operations

Question 20

Max wants to be an entrepreneur but in today's climate it is difficult to come up with a totally new idea and build a business around it.Max is scanning the environment as well as actively searching for an opportunity.He knows there is one just waiting for him,but how to find it is his challenge.He would most like to come up with something completely new where neither the supply nor the demand is known.Max is involved in the process of ________.

A)recognizing an opportunity
B)enacting an opportunity
C)discovering an opportunity
D)curiosity-driven research

Question 21

To be an entrepreneurial venture,a small business must also be innovative and constantly seek out new opportunities.

Question 22

Businesses that are started in response to needs within a community are known as social enterprises/ventures and may be not-for-profit entities.

Question 23

By definition,a small business is necessarily entrepreneurial.

Question 24

In a short essay,describe the nature of opportunities and role of entrepreneurial managers linking these to the importance of entrepreneurship in today's business world.Give specific examples where possible to illustrate your answers.

Question 25

Deborah has been paying attention to the yoga world and looking for signals of the changing marketplace.She is being ________.

A)new venture astute
B)entrepreneurially alert
C)an intelligent researcher
D)innovative

Question 26

It is rumoured that Philip has been directed to develop this business for the overall good of the planet,as a way of contributing to the turnaround of greenhouse gas and oil consumption issues.The company would be set up as a public trust,with all profits either returned back to the organization for further development or donated to specific organizations such as the Bill and Melinda Gates Foundation.If so,this would then become a ________.

A)public company
B)public interest organization
C)not-for profit venture
D)social enterprise

Question 27

A ________ is an entrepreneurial venture's ability to generate revenues faster than the rate it incurs costs.

A)profit focused paradigm
B)value proposition
C)sustainability plan
D)scalable model

Question 28

Pursuing opportunities is at the heart of entrepreneurship.

Question 29

Entrepreneurship is the process of starting a new business or organization in response to perceived opportunities.

Question 30

Janice is the new CEO of a small Internet security company and is working with the founder to grow the business.Janice is the classic idea of an entrepreneur.

Question 31

The first step in the entrepreneurial process is to explore economic,legal,political and social environments.

Question 32

In spite of all the questions Sarah has about whether to sell,or reinvent the business,and so on,she is remaining ________ about opportunities she can get involved in aside from the café and any new ideas that may surface to give her a chance to diversify.

A)new venture savvy
B)entrepreneurially alert
C)optimistic
D)innovation smart

Question 33

Before Deborah is able to complete a feasibility study for the venture,she needs to be sure she clearly defines and clarifies the opportunity as well as ________.

A)spells out her competitive advantage
B)states her financial needs
C)considers her return on investment
D)plans her advertising strategy

Question 34

Large global businesses are at the forefront of job creation as small enterprises downsize their workforces.

Question 35

Deborah's idea for offering yoga classes through a new medium is grounded in a common source of new ventures in many industries.When an innovation comes along that breaks down an old way of doing something,this is referred to as ________.

A)creative innovation
B)social entrepreneurship
C)social innovation
D)creative destruction

Question 36

As Deborah contemplates the possibility of launching her venture,she is likely to get caught up in the excitement of the startup.Fortunately she is getting good advice and is thinking about the three key facets of operating a new business: managing the various processes of the venture; managing people; and ________.

A)managing the expectations of her financial backers
B)managing competitive pressures
C)managing the venture's growth
D)managing the expectations of the marketplace

Question 37

There are essentially two descriptions of how entrepreneurs add value to the economy: creative destruction and by being entrepreneurially alert.They are essentially the same thing.

Question 38

One can see the three key facets of the Timmins Model of the Entrepreneurial Process.The corporation is providing the resources (financial,etc.),you are leading the team,and it is your job to uncover and clarify the ________.

A)feasibility
B)opportunity
C)profitability
D)marketability

Question 39

Social responsibility and ethics do not play an important role in an entrepreneurial startup.

Question 40

All organizations start small,and as they grow,the original founders are always at the helm and maintain control throughout the life of the business.

Question 41

In evaluating an idea for an entrepreneurial venture you need to examine the marketplace considerations as well as the ________ considerations in order to obtain a balanced view.

A)personal
B)financial
C)demographic
D)opportunistic

Question 42

Although a seemingly backwards step,doing a thorough evaluation of their business idea might be a wise exercise because Vincent and Alice could discover answers to some important questions such as ________.

A)Are you ready to work hard?
B)Does the marketplace need you?
C)Do you have a full support of your family?
D)Do you ever plan on having the time for a personal life in the near future?

Question 43

In a fear-of-failure culture managers are hesitant to try new things in case they might fail leading to a stagnant organization.Alternatively,start-ups need ________ culture that will enable the adaptive capacity of an organization.

A)customer focused
B)curiosity-driven
C)learning-and-discovery
D)entrepreneurial

Question 44

In one survey it was discovered that the biggest source of ideas for entrepreneurial ventures is ________.

A)family and friends' suggestions
B)personal hobbies
C)working in the same industry
D)other innovative products

Question 45

The test whether the entrepreneurial business model is repeatable and scalable is through ________.

A)customer validation
B)customer discovery
C)feasibility study
D)contingency planning

Question 46

A business plan ________.

A)guides organizational decisions
B)ensures financial backing
C)provides guidelines for hiring practices
D)is the blueprint for innovation and creativity

Question 47

Entrepreneurial start-ups need customer development teams that have a ________.

A)clear focus on the objectives
B)learning-and-discovery culture
C)targeted business model
D)culture of flexibility and risk-taking

Question 48

The execution stage of starting an entrepreneurial venture consists of ________.

A)customer creation and company building
B)consumer research and product development
C)customer validation and customer discovery
D)company building and customer discovery

Question 49

The model for company building starts with ________.

A)an innovative idea
B)raising financing
C)customer discovery
D)market research

Question 50

Two key elements of a feasibility study are analyzing ________ and researching ________.

A)market stability; availability of labour
B)customer demand; tax implications
C)financing options; market demand
D)competitors; financing

Question 51

The most important thing an entrepreneur does before launching a venture is to complete a ________.This is a written document that summarizes a business opportunity and articulates how the identified opportunity is to be exploited.

A)market strategy
B)business plan
C)financial projection
D)feasibility study

Question 52

As the entrepreneurial venture matures and the opportunity becomes clear,owners can look to increase financing from ________.

A)chartered banks
B)family and friends
C)angel investors
D)godfather investors

Question 53

You are a management consultant specializing in business planning for new ventures.You are meeting with a group of four investors who want you to develop a business plan for their new bio-diesel company.You tell them that the full business plan is really the second step.The first step is to complete a ________,which will eventually form the basis of the business plan.

A)market penetration evaluation
B)strategic plan
C)business plan
D)feasibility study

Question 54

Before preparing a business plan it is important to examine the viability of a proposed venture idea.To do this it is good practice to complete a(n)________.

A)strategic plan
B)feasibility study
C)economic impact study
D)demographic study

Question 55

Shelley is very excited about launching her new business-providing customized and personalized umbrellas.Her business will be completely online,and she is convinced she has thought everything through.The last step is getting investors interested in her venture,but they do not seem to be as excited as she is.When they ask her what the business is about,she can speak about it,but her documentation is confusing.She is concerned that she will never find the necessary investment or financing to get the business off the ground.What is the first thing you would recommend Shelley do?

A)Forget about investors and approach chartered banks.
B)Ask family and friends to invest.
C)Write a detailed market analysis.
D)Write a business plan.

Question 56

A learning-and-discovery culture enables ________.

A)the adaptive capacity of an organization
B)increased focus on innovation and risk-taking
C)discovery of customer wants and needs
D)enhanced funding for research and development

Question 57

The steps in the model for company building include all of the following EXCEPT ________.

A)customer validation
B)customer creation
C)company building
D)company growth

Question 58

The next big step Deborah should complete is ________.

A)a business plan
B)to establish an advisory board
C)a feasibility study
D)to meet with venture capitalists

Question 59

Business model is about ________ while delivering products or services to customers.

A)ensuring adequate applied research
B)how a company creates value for itself
C)how to best meet the marketplace needs
D)securing sustainable financial backing

Question 60

At the heart of every successful entrepreneurial venture is the articulation of a strong and distinctive ________,an analysis of the benefits,costs,and other value to the target customer and other groups within and outside of the organization.

A)bottom-line analysis
B)value proposition
C)market valuation
D)equity assessment

Question 61

When Angela was working on her ________ to determine the viability of her idea,she worked extra hard to clarify how much her services could be worth to a potential client,how the services would be appreciated,and how she would differentiate herself from the competition,in other words,her ________.

A)feasibility study; value proposition
B)business plan; market acceptance
C)business plan; value proposition
D)feasibility study; marketing plan

Question 62

An analysis of the benefits,costs,and value that an organization can deliver to its customers is commonly known as a value proposition.

Question 63

Failure is a clear indication that one is not suited to entrepreneurial career.

Question 64

The business plan is a written document that defines and articulates how the particular opportunity will be developed and exploited.

Question 65

The blueprint or road map for an entrepreneurial venture is the business plan.

Question 66

To develop tidal energy fully,you will likely need to conduct a wide range of research into what technology exists already,known as ________,and look for the gaps that would provide opportunities for further ________.

A)research and development; curiosity-driven research
B)curiosity-driven research; applied research
C)research and development; applied research
D)applied research; research and development

Question 67

Lisa has discovered an opportunity in her own industry: landscaping.She wants to get the business started right away.It would be wise for her to skip the detailed planning process and dive in so that opportunity does not pass her by.

Question 68

Sarah needs to do some work to figure out what the true worth of the customer experience is to her clientele.She needs to clarify what her customers truly appreciate about her café that is not the same as her competitors.She needs to redevelop her ________.

A)business name
B)value proposition
C)supplier network
D)menu and product variety

Question 69

When Philip asks you to look at the potential viability of the business opportunity of tidal energy,he is really asking you to complete a ________.

A)commercialization study
B)feasibility study
C)business plan
D)research and development plan

Question 70

Lily's feasibility study for her new web design company was loaded with extra details that most entrepreneurs don't seem to bother with.She was proud of the fact that it included a lot of supporting information that made the final document really thick-sure to impress her backers.This was an example of a good approach to doing a feasibility study.

Question 71

Henrik wanted to launch a new business focusing on custom hockey stick manufacturing-allowing semi-pro hockey players access to similar custom technology that NHL players receive.His potential financial backers kept pushing him to clarify the cost-benefit to his customers since it meant charging 15 percent to 20 percent more for an off-the-shelf hockey stick.They wanted to know his value proposition.

Question 72

The idea for the marine tidal energy is not brand new,and the technology still holds a great deal of opportunity.Once you have thoroughly researched the venture's feasibility,the next most important step is to ________.

A)research competitors
B)find possible customers
C)develop a business plan
D)create a marketing strategy

Question 73

One final part of completing a feasibility study is uncovering potential sources of financing.

Question 74

It is not vital that an entrepreneur develop a business plan when planning a venture.

Question 75

You notice that the possibility of operating at a loss was not even considered a possibility by Alice and Vincent.Had they done a proper ________,they probably would have at least been aware that this could happen.

A)feasibility study
B)business plan
C)value proposition
D)cash flow projection

Question 76

According to one study,nearly two-thirds of respondents said that working in the same industry was the major source of ideas for a new venture.

Question 77

Customer creation is the first step in the model for company building.

Question 78

You recommend they redo their feasibility study with some of the new information they have gathered in their first year of operations.Given the speed with which Vincent and Alice launched their business,it will likely provide additional details about ________.

A)potential success of their idea
B)human resource needs and financing
C)competitors and customer needs
D)impact on the partners' personal lives

Question 79

In evaluating an idea for an entrepreneurial opportunity,a commonly used,structured approach called a feasibility study analyzes the various aspects of a proposed venture.

Question 80

The feasibility study and business plan are key parts of the value proposition.