Question 1

Regulatory or political changes are more likely than any other change to help businesses improve productivity.

Accepted Answer

A) True 
 B)False  False

Question 2

Technological changes are a source of entrepreneurial opportunities because they make it possible for people to do things in new and more productive ways.

Accepted Answer

A) True 
 B)False  True

Question 3

The economist who believes that entrepreneurial opportunities exist because people have different information is

Accepted Answer

A)   Josef Schumpeter.
B)   David W. Cravens.
C)   Israel Kirzner.
D)   Benjamin Piercy.
E)   Michelle Clark. C

Question 4

The way in which an entrepreneurial opportunity is developed and the source of the opportunity are independent of each other.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following conditions would be most favorable to an entrepreneurial company?

Accepted Answer

A)   Low intensity of R&D.
B)   High intensity of R&D.
C)   Locus of innovation is with large companies.
D)   High fixed costs to start a company.
E)   An industry that is in the mature stage of the life cycle.

Question 6

Explain why it might be more difficult for an established firm to invent a new technology or a new product than it would be for a new firm.

Accepted Answer

The answer of Explain why it might be more difficult...

Question 7

Success at entrepreneurial activity requires the entrepreneur to develop a business idea that can defend against competition

Accepted Answer

A) True 
 B)False

Question 8

Research shows that small entrepreneurial businesses react to changes,and take advantage of opportunities,faster than do large businesses.

Accepted Answer

A) True 
 B)False

Question 9

The probability that a new firm will survive,the likelihood that a new firm will go public,the amount of sales growth it will have,and the level of profits it will earn have been shown to be as much as ten times higher in a favorable industry than in an unfavorable one.

Accepted Answer

A) True 
 B)False

Question 10

The birth,maturation,,and death of an industry is what researchers call

Accepted Answer

A)   business development.
B)   the stages of entrepreneurial success.
C)   the industry life cycle.
D)   the development of success.
E)   none of the above.

Question 11

An entrepreneurial opportunity can be exploited through the

Accepted Answer

A)   creation of a new product or service.
B)   opening of a new market.
C)   development of a new way of organizing.
D)   introduction of a new production process.
E)   all of the above.

Question 12

Scale economies exist anytime that there is a much larger cost to producing the last unit of something than there is to produce the first unit of something

Accepted Answer

A) True 
 B)False

Question 13

In which of the following situations would a new firm have a higher chance of performing better?

Accepted Answer

A)   Capital intensive.
B)   Advertising intensive.
C)   Concentrated industry.
D)   R&D intensive.
E)   Dominant design.

Question 14

There are many more types of cars targeted at different types of buyers than there are types of frozen corn targeted at different types of buyers. This is an example of

Accepted Answer

A)   a lack of R&D in the food industry.
B)   industries differing in their degree of market segmentation.
C)   the car industry having more money to offer a wider variety of products.
D)   all of the above.
E)   none of the above.

Question 15

Industries that have greater R&D intensity are more favorable to new firms than industries that have lesser R&D intensity.

Accepted Answer

A) True 
 B)False

Question 16

Changes in human populations represent

Accepted Answer

A)   technological changes.
B)   political changes.
C)   productivity changes.
D)   demographic changes.
E)   micro level changes.

Question 17

The textbook mentions that because Barnes & Noble spent a large amount of money to build its regular bookstores,it resisted selling books on the Internet. Barnes & Noble resisted selling book on the Internet because of

Accepted Answer

A)   the low capital intensity required to sell on the Internet.
B)   fears that sales on the Internet would cannibalize sales in the stores.
C)   fears that books were in the early stage of the industry life cycle.
D)   fears that the technology required would not be challenging.
E)   fears that books could not be amortized.

Question 18

Which of the following is an example of an advantage that an established firm has over a new firm?

Accepted Answer

A)   Companies face a learning curve when they develop any product or service.
B)   Business depends a great deal on reputation.
C)   Many businesses face economies of scale.
D)   New companies often find it difficult to compete with established companies because they lack complementary assets.
E)   All of the above

Question 19

Which of the following situations,and the related industry,would be associated with higher rates of new business formations?

Accepted Answer

A)   A large manufacturing company invents a new production process.
B)   A university researcher invents a new idea for a product and publishes the results in a public report.
C)   A company invents a new product and secures a patent on it.
D)   An advertising company found a more productive way to interact with its clients.
E)   The top management team of a large company is discussing a new way to market a certain product.

Question 20

Which of the following companies is most likely to have the largest/best economies of scale?

Accepted Answer

A)   A small company.
B)   A company producing a small number of one type of product.
C)   A company that has a large market share in an industry.
D)   A company that has a small market share in an industry.
E)   A company that has high fixed costs and a small market share.

Exam 2: Entrepreneurial Opportunities: Their Origins, Forms, and Suitability For New Ventures

Regulatory or political changes are more likely than any other change to help businesses improve productivity.

Technological changes are a source of entrepreneurial opportunities because they make it possible for people to do things in new and more productive ways.

The economist who believes that entrepreneurial opportunities exist because people have different information is

The way in which an entrepreneurial opportunity is developed and the source of the opportunity are independent of each other.

Which of the following conditions would be most favorable to an entrepreneurial company?

Explain why it might be more difficult for an established firm to invent a new technology or a new product than it would be for a new firm.

Success at entrepreneurial activity requires the entrepreneur to develop a business idea that can defend against competition

Research shows that small entrepreneurial businesses react to changes,and take advantage of opportunities,faster than do large businesses.

The probability that a new firm will survive,the likelihood that a new firm will go public,the amount of sales growth it will have,and the level of profits it will earn have been shown to be as much as ten times higher in a favorable industry than in an unfavorable one.

The birth,maturation,,and death of an industry is what researchers call

An entrepreneurial opportunity can be exploited through the

Scale economies exist anytime that there is a much larger cost to producing the last unit of something than there is to produce the first unit of something

In which of the following situations would a new firm have a higher chance of performing better?

There are many more types of cars targeted at different types of buyers than there are types of frozen corn targeted at different types of buyers. This is an example of

Industries that have greater R&D intensity are more favorable to new firms than industries that have lesser R&D intensity.

Changes in human populations represent

The textbook mentions that because Barnes & Noble spent a large amount of money to build its regular bookstores,it resisted selling books on the Internet. Barnes & Noble resisted selling book on the Internet because of

Which of the following is an example of an advantage that an established firm has over a new firm?

Which of the following situations,and the related industry,would be associated with higher rates of new business formations?

Which of the following companies is most likely to have the largest/best economies of scale?