Question 1

Martha has recently created a Facebook account. She also understands that she can utilize this to advertise her growing recycling business. This is an example of ________.

Accepted Answer

A)  information symmetry 
B)  market research 
C)  information asset 
D)  social networks 
E)  entrepreneurial risk

Question 2

Exploitation exists when entrepreneurs overestimate the extent to which they can control the outcome of an opportunity.

Accepted Answer

A) True 
 B)False

Question 3

Rick and Jose gain new market information regarding a potential entrepreneurial opportunity. Despite the fact that both of them have gained access to this new information, only one of these individuals has access to additional information suggesting that other competitors are already moving to exploit this opportunity. What is this an example of?

Accepted Answer

A)  information asset 
B)  information assurance 
C)  social networking 
D)  information asymmetry 
E)  information reliability

Question 4

An example of organizational rejuvenation is when Meryl Computers Inc., a computer hardware company, changes policies and procedures within the company to support innovation.

Accepted Answer

A) True 
 B)False

Question 5

The ability of entrepreneurs to understand how to turn a new technology into a product or service that will be valued by consumers refers to the ability to assess ________.

Accepted Answer

A)  information symmetry 
B)  market research 
C)  means-end relationships 
D)  social networks 
E)  entrepreneurial risk

Question 6

Explain the fundamentals of entrepreneurship.

Accepted Answer

The answer of Explain the fundamentals of entrepreneurship....

Question 7

One distinction between commercial and social entrepreneurship involves the availability of resources such as funding and employees.

Accepted Answer

A) True 
 B)False

Question 8

Entrepreneurship refers to the identification, evaluation and exploitation of opportunities.

Accepted Answer

A) True 
 B)False

Question 9

Entrepreneurial opportunity is ________.

Accepted Answer

A)  the activities and investments committed to gain returns from the new product or service arising from the opportunity 
B)  resources (i.e., money, relationships, etc.) the entrepreneur could lose if the opportunity does not succeed 
C)  an occasion to bring into existence new products and services that allow outputs to be sold at a price greater than their cost of production 
D)  an individual's ability to notice and be sensitive to new information about objects, incidents, and patterns of behavior in the environment 
E)  the process in which an individual or group of individuals in an existing corporation create a new organization or instigate renewal or innovation within that corporation

Question 10

When analyzing entrepreneurial opportunities, the opportunity identification step is, "Where the rubber meets the road" and often presents a difficult challenge.

Accepted Answer

A) True 
 B)False

Question 11

Research suggests that organizations started by entrepreneurial teams tend to perform better than those started by individual entrepreneurs working by themselves. What is this attributed to?

Accepted Answer

A)  The new, fresh mindset of entrepreneurs. 
B)  Organizations started by teams have more money. 
C)  Individual organizations do not have the manpower to help. 
D)  The combination of diverse skills, experiences, and relationships of the entrepreneurial team members. 
E)  Entrepreneurial teams use more research for start-up decisions.

Question 12

________ is the second step of the entrepreneurial process.

Accepted Answer

A)  Opportunity identification 
B)  Opportunity selection 
C)  Opportunity evaluation 
D)  Opportunity feedback 
E)  Opportunity success

Question 13

The Internet allowed Netflix to offer customers a new way to rent DVDs and video games. This is an example of ________.

Accepted Answer

A)  new markets 
B)  new raw materials 
C)  new methods of production 
D)  new methods of organizing 
E)  new products

Question 14

Which type of opportunity is Citibank pursuing if it provides services in China?

Accepted Answer

A)  new products or services 
B)  new geographical markets 
C)  new raw materials 
D)  new methods of production 
E)  new methods of organizing

Question 15

What is corporate entrepreneurship?

Accepted Answer

The answer of What is corporate entrepreneurship?...

Question 16

________ refers to the resources that the entrepreneur could lose if the opportunity does not succeed.

Accepted Answer

A)  Downside loss 
B)  Entrepreneurial risk 
C)  Feasibility analysis 
D)  Information asymmetry 
E)  Illusion of control

Question 17

Which of the following is true about social entrepreneurship?

Accepted Answer

A)  Social entrepreneurs often do not have the capital necessary to pay attractive salaries; they must focus on hiring employees who share the organization's purpose. 
B)  Social entrepreneurs are not required to consider issues surrounding sales and costs since they have enough funding from angel investors. 
C)  Social entrepreneurs do not rely on donations as sources of funding. 
D)  Social entrepreneurs focus on more quantitative performance measures that are related to money. 
E)  Social entrepreneurs do not rely on volunteers to help their organizations.

Question 18

The use of corn to make ethanol create a new use for corn. This kind of opportunity comes from which of the following?

Accepted Answer

A)  creation of new products or services 
B)  new geographical market 
C)  creation or discovery of new materials 
D)  discovery of new methods of production 
E)  new methods of organizing

Question 19

Which of the following is true about the differences between angel investors and venture capitalists?

Accepted Answer

A)  Venture capitalists are wealthy individuals who provide capital to new companies. 
B)  Angel investors raise money and then use this money to make investments in new firms. 
C)  Venture capitalists make more investments than angel investors. 
D)  Angel investors tend not to focus on particular industries. 
E)  Venture capitalists typically provide the initial financing to start-up ventures.

Question 20

Entrepreneurial opportunities offering value to communities as opposed to offering value towards personal or shareholder wealth is known as ________ entrepreneurship.

Accepted Answer

A)  corporate 
B)  social 
C)  commercial 
D)  innovative 
E)  strategic

Exam 20: Management and Entrepreneurship: Handling Start-Ups and New Ventures

Martha has recently created a Facebook account. She also understands that she can utilize this to advertise her growing recycling business. This is an example of ________.

Exploitation exists when entrepreneurs overestimate the extent to which they can control the outcome of an opportunity.

An example of organizational rejuvenation is when Meryl Computers Inc., a computer hardware company, changes policies and procedures within the company to support innovation.

The ability of entrepreneurs to understand how to turn a new technology into a product or service that will be valued by consumers refers to the ability to assess ________.

Explain the fundamentals of entrepreneurship.

One distinction between commercial and social entrepreneurship involves the availability of resources such as funding and employees.

Entrepreneurship refers to the identification, evaluation and exploitation of opportunities.

Entrepreneurial opportunity is ________.

When analyzing entrepreneurial opportunities, the opportunity identification step is, "Where the rubber meets the road" and often presents a difficult challenge.

Research suggests that organizations started by entrepreneurial teams tend to perform better than those started by individual entrepreneurs working by themselves. What is this attributed to?

________ is the second step of the entrepreneurial process.

The Internet allowed Netflix to offer customers a new way to rent DVDs and video games. This is an example of ________.

Which type of opportunity is Citibank pursuing if it provides services in China?

What is corporate entrepreneurship?

________ refers to the resources that the entrepreneur could lose if the opportunity does not succeed.

Which of the following is true about social entrepreneurship?

The use of corn to make ethanol create a new use for corn. This kind of opportunity comes from which of the following?

Which of the following is true about the differences between angel investors and venture capitalists?

Entrepreneurial opportunities offering value to communities as opposed to offering value towards personal or shareholder wealth is known as ________ entrepreneurship.