Deck 7: Entrepreneurship

Question 1

A small business is often defined as having fewer than 100 employees,as well as being independently owned and operated.

Answer 1

True

Question 2

Entrepreneurs start their own firms to get rich quickly.

Answer 2

False

Question 3

eBay is an example of the affiliate model.

Answer 3

False

Question 4

Franchising is an entrepreneurial alliance between two organizations,the franchisor and the franchisee.

Question 5

Entrepreneurs are gamblers.

Question 6

The advertising support model involves charging fees for goods and services.

Question 7

Margarita Morales independently owns and operates Great Gifts,a small business with 45 employees.She tends not to manage particularly aggressively and expects normal,moderate sales,profits and growth.Margarita's business would be considered an entrepreneurial venture.

Question 8

In the transaction fee model,fees are charged to bring buyers and sellers together.

Question 9

Natural disasters can provide an attractive opportunity for entrepreneurs.

Question 10

Great companies have always had success from the start.

Question 11

A franchisor is an innovator who has created at least one successful store and seeks partners to operate the same concept in other local markets.

Question 12

Entrepreneurship occurs when an enterprising individual pursues a lucrative opportunity.

Question 13

Entrepreneurs spot,create,and exploit opportunities.

Question 14

An entrepreneurial venture is a new business having growth and high profitability as primary objectives.

Question 15

The intermediary model involves charging fees to bring buyers and sellers together.

Question 16

Corporate managers who create new independent businesses with assets purchased from the corporation are called intrapreneurs.

Question 17

Successful entrepreneurs are innovators and also have good knowledge and skills in management,business,and networking.

Question 18

The affiliate model involves charging fees to advertise on a site.

Question 19

Observers say that in contemplating your business,you must start with a great idea.

Question 20

There is a difference between a small business and an entrepreneurship venture.

Question 21

Amazon.com uses the transaction fee model.

Question 22

Entrepreneurs have been characterized as high risk takers and risk maximizers.

Question 23

Acquiring venture capital is not essential to the success of most start-up businesses;in fact,it is rare.

Question 24

To be successful,entrepreneurs need to learn to micromanage.

Question 25

The pursuit of lucrative opportunities by enterprising individuals is called

A)intrapreneurship.
B)independence.
C)business incubating.
D)entrepreneurship.
E)social experimentation.

Question 26

Skunkworks are project teams designated to produce new products.

Question 27

Start-ups have at least two major liabilities: being new and growing too fast.

Question 28

Bootlegging refers to official job assignments in which employees work to create new products and processes of their own choosing.

Question 29

Successful entrepreneurs anticipate difficulties and cushion their business to help it weather setbacks.

Question 30

The best business plans convey five key factors: the people,the opportunity,the competition,the context,and risk and reward.

Question 31

Entrepreneurial orientation is 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.

Question 32

Today's large corporations are passive bystanders in the entrepreneurial explosion.

Question 33

Legitimacy is people's judgment of a company's acceptance,appropriateness,and desirability,generally stemming from company goals and methods that are consistent with societal values.

Question 34

Social capital is a competitive advantage in the form of relationships with other people and the image other people have of you.

Question 35

Initial public stock offerings offer a way to raise capital through federally registered and underwritten sales of shares in the company.

Question 36

A business plan describes only the basic idea involved in starting a new venture.

Question 37

Organizations that encourage intrapreneurship face the obvious risk that the effort can fail.

Question 38

Entrepreneurial ventures can be characterized along two dimensions: innovation and risk.

Question 39

A common entrepreneurial malady is an aversion to record keeping.

Question 40

Business incubators are protected environments for new,small businesses.

Question 41

The practice of charging fees to advertise on an Internet site is called the

A)transaction fee model.
B)advertising support model.
C)intermediary model.
D)affiliate model.
E)subscription model.

Question 42

Howard Berke started Konarka Technologies to create solar cells in response to rising oil prices,which is an example of what category of possibilities when spotting opportunities?

A)Economic dislocations
B)Demographic changes
C)Lifestyle and taste changes
D)Calamities
E)Government initiatives and rule changes

Question 43

Lark recently started her own business.She has nearly recreated a company she worked for when she was in college,except that she has great business acumen and has been able to run the company much more efficiently and thus profitably.Lark would best be classified as a

A)promoter.
B)entrepreneur.
C)manager/administrator.
D)intrapreneur.
E)inventor.

Question 44

Ed McAlister was a manager at DRA Corporation,a company that produced household appliances.Ed had many innovative ideas for the company.He became frustrated and left the corporation to pursue his own business.His new business venture could be considered

A)entrepreneurship.
B)a spin-off.
C)corporate espionage.
D)a corporate skunkworks.
E)corporate theft.

Question 45

Entrepreneurs differ from inventors in that they

A)have greater skills in management,business and networking.
B)are more innovative and creative.
C)are less innovative and creative.
D)have additional marketing and selling skills.
E)have limited ability to ensure efficient operations.

Question 46

An individual who establishes a new organization without the benefit of corporate sponsorship is called a(n)

A)intrapreneur.
B)entrepreneur.
C)sole proprietor.
D)management novice.
E)licensee.

Question 47

Which of the following is a factor that contributes to the formation of entrepreneurial organizations?

A)Entrepreneurs are lone wolves and cannot work with others.
B)Entrepreneurs want the whole show to themselves.
C)Entrepreneurs hope that enormous satisfaction lies ahead.
D)Entrepreneurs are motivated solely by the quest for the almighty dollar.
E)Entrepreneurs seek power and control over others.

Question 48

Capitalizing on new clothing and music trends,the desire for fast food,and growing interest in sports are examples of which category of possibilities when spotting opportunity?

A)Technological discoveries
B)Demographic changes
C)Lifestyle and taste changes
D)Economic dislocations
E)Calamities

Question 49

An individual who establishes a new organization without the benefit of corporate sponsorship is a(n)

A)entrepreneur.
B)intrapreneur.
C)stockholder.
D)franchisee.
E)licensee.

Question 50

New venture creators working inside big corporations are called

A)entrepreneurs.
B)intrapreneurs.
C)independent entrepreneurs.
D)subsidiaries.
E)franchisees.

Question 51

Laura is interested in running a business and wants to open the same type of store her sister has in another town,a Massage Bliss,a popular new chain.Laura wants to become a(n)

A)business incubator.
B)innovator.
C)franchisor.
D)franchisee.
E)intrapreneur.

Question 52

A new business having growth and high profitability as primary objectives is a(n)

A)start-up.
B)corporation.
C)governmental agency.
D)entrepreneurial venture.
E)small operation management.

Question 53

Working at Microsoft,Rohan has created a new venture based solely on his idea and Microsoft's proprietary technology.Rohan can be described as a(n)

A)intrapreneur.
B)independent entrepreneur.
C)spin-off employee.
D)venture capitalist.
E)franchisee.

Question 54

Intrapreneurs are

A)independent entrepreneurs.
B)bootleggers.
C)corporate entrepreneurs.
D)external entrepreneurs.
E)business incubators.

Question 55

Charging fees to direct Internet site visitors to other companies' sites is called the

A)transaction fee model.
B)advertising support model.
C)intermediary model.
D)affiliate model.
E)subscription model.

Question 56

When creating a new business one should start with

A)an untapped market.
B)a product.
C)a great idea.
D)good timing.
E)social responsibility.

Question 57

Intrapreneurs are

A)unit managers who create new businesses with corporate assets.
B)new-venture creators working within a large organization.
C)individuals who establish a new organization with corporate support.
D)individuals who establish a new organization without corporate support.
E)bootleggers.

Question 58

Your roommate is interested in starting a business and everybody has been giving her different information about being an entrepreneur.Since you have been studying about entrepreneurship and new ventures,which of these would you tell her is true?

A)Anyone can start a business.
B)Entrepreneurs are their own bosses and completely independent.
C)Entrepreneurs "get rich quick" and enjoy a lot of leisure time.
D)Successful entrepreneurs take very careful,calculated risks.
E)All of these are true about entrepreneurs.

Question 59

A business having fewer than 100 employees,independently owned and operated,not dominant in its field and not characterized by many innovative practices is a(n)

A)nonprofit opportunity.
B)small business.
C)global start-up.
D)entrepreneurial venture.
E)incubator.

Question 60

Charging periodic fees for Internet site visits or access to site content is called the

A)transaction fee model.
B)advertising support model.
C)intermediary model.
D)affiliate model.
E)subscription model.

Question 61

A novel product idea that involves a large financial investment would be described as

A)high innovation/low risk.
B)high innovation/high risk.
C)low innovation/low risk.
D)low innovation/high risk.
E)low innovation/uncertain risk.

Question 62

Which of the following characteristics contribute to entrepreneurs' success?

A)Commitment to work-life balance
B)Tolerance of risk,ambiguity and uncertainty
C)Discounting of own weaknesses
D)Comfort with the status quo
E)Obsessed with earning money

Question 63

eBay helps auction buyers and sellers find one another for an online sale and then collects a percentage of that purchase,which is considered to be an example of the

A)transaction fee model.
B)advertising support model.
C)intermediary model.
D)affiliate model.
E)subscription model.

Question 64

Successful entrepreneurs who are decisive,tenacious,disciplined and who are willing to sacrifice are examples of which characteristic of successful entrepreneurs?

A)Leadership
B)Commitment and determination
C)Opportunity obsession
D)Creativity,self-reliance and ability to adapt
E)Motivation to excel

Question 65

___________ are a way for a business to raise capital through federally registered and underwritten sales of shares in the company.

A)IPOs
B)Venture capital funds
C)Skunkworks
D)Bootleggings
E)Franchises

Question 66

Which of the following characteristic(s)contribute(s)to entrepreneurs' success?

A)Commitment and determination tolerance of risk,ambiguity and uncertainty
B)Motivation to excel
C)Leadership
D)Opportunity obsession
E)All of the above are characteristics that contribute to the entrepreneur's success.

Question 67

_____________ are protected environments for new,small businesses offering low rents and shared costs.

A)Skunkworks
B)Business incubators
C)Spin-offs
D)Bootleggings
E)Global start-ups

Question 68

Economic forces that may favor the formation of new businesses include all but which one of the following?

A)Increases in the money supply
B)Economic downturns
C)Real economic growth
D)Improved stock market performance
E)Increased supply of bank loans

Question 69

Census Bureau statistics indicate that most start-up businesses with employees are financed through

A)the Small Business Administration.
B)venture capital.
C)personal assets or those of family.
D)the owners' credit cards.
E)skunkworks.

Question 70

Cambridge Counseling will have no services that are particularly distinctive compared with competitors in this well-established field,and the business will require a sizable investment.Which part of the entrepreneurial strategy matrix would they be located in?

A)Top-left quadrant
B)Top-right quadrant
C)Bottom-left and top-left quadrant
D)Bottom right quadrant
E)Bottom-right and top-left quadrant

Question 71

Dimitri,a successful entrepreneur,formed Med-Monitor,a producer of a distinctive flat monitor screen used in the medical field.He is a very open-minded person who has no problem learning quickly and is very skilled at coming up with new ideas.Which of the following characteristics does Dimitri have?

A)Leadership
B)Commitment and determination
C)Opportunity obsession
D)Creativity,self-reliance and ability to adapt
E)Motivation to excel

Question 72

A product that represents a novel idea requiring little financial investment would be displayed in the __________ of the entrepreneurial strategy matrix.

A)upper-left quadrant
B)lower-left quadrant
C)upper-right quadrant
D)lower-right quadrant
E)center

Question 73

The odds of survival of a small business decrease if

A)it employs over 10 to 20 people.
B)the venture has revenues of more than $2 to $3 million.
C)the company is pursuing opportunities with growth potential.
D)the business is a successful franchise.
E)the economy is weak.

Question 74

Many entrepreneurs choose to open their own business because they want to "call their own shots." This trait is also a common source of difficulty for entrepreneurs because they also

A)fail to train a successor.
B)inadequately monitor financial performance.
C)fail to delegate.
D)are poor bosses.
E)fail to plan for contingencies.

Question 75

Benefits of business incubators include

A)free rent.
B)high security.
C)venture capital.
D)access to shared services.
E)guaranteed profitability.

Question 76

Most small business ventures are in the _________ entrepreneurial strategy matrix.

A)upper-left quadrant
B)lower-left quadrant
C)upper-right quadrant
D)lower-right quadrant
E)center

Question 77

Entrepreneurs face failure in which of the following situations?

A)Only the public sector.
B)Only the private sector.
C)Only in less-developed nations.
D)Only in not-for-profits.
E)In any organization.

Question 78

Success of entrepreneurial ventures is often jeopardized by the death of the founder.Which of the following is an important measure to minimize this problem?

A)Conservative use of funds
B)Adequate succession planning
C)Thorough record keeping
D)Decreased delegation
E)Going public

Question 79

IPO is an acronym that stands for

A)instant public obligation.
B)initial public obligation.
C)initial public stock offering.
D)immediate principal obligation.
E)intermediate public stock offering.

Question 80

Based upon the Entrepreneurial Strategy Matrix,which of the following products is most likely to have the highest risks and returns?

A)Velcro fasteners
B)Tax preparation service
C)New pharmaceutical drug
D)New restaurant
E)Lawn-mowing service