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textbook site quizes for ch 1-4
Entrepreneurial behavior typically requires | willingness to take risks, drive, and creativity |
_____ is the position of a firm on a continuum ranging from highly conservative to highly entrepreneurial. | Entrepreneurial intensity |
What is the most common reason given for why people choose to become entrepreneurs? | To be their own boss |
Some entrepreneurs report that the financial rewards associated with entrepreneurship can be bittersweet if they are accompanied by ________. | losing control of the firm |
Some characteristics shared by successful entrepreneurs are | passion, product/customer focus., tenacity despite failure. |
What are some common myths about entrepreneurs? | Entrepreneurs are born, not made, Entrepreneurs are gamblers, Entrepreneurs love the spotlight |
What do you call small firms that yield a level of income for their owner that is similar to what they would earn when working for an employer? | salary-substitute firm |
_____ of the 27.5 million businesses in the Unites States are owned by women, minorities, seniors, and young people. | A growing number |
Influence on innovation and job creation best typifies entrepreneurial firms' ________. | economic impact |
The entrepreneurial process is comprised of what steps | deciding to become an entrepreneur, managing and growing the entrepreneurial firm, moving from an idea to an entrepreneurial firm |
T/F According to the textbook In the United States, approximately one-third of new firms fail within their first four years. | True |
T/F Entrepreneur and inventor mean essentially the same thing | False |
T/F Entrepreneurship only pertains to starting new businesses, not existing firms | False |
T/F The average entrepreneur does NOT make more money than someone with a similar amount of responsibility in a traditional job. | True |
T/F The number one characteristic shared by successful entrepreneurs is creativity. | False |
T/F Execution intelligence refers to developing a business model, putting together a new venture team, raising money, establishing partnerships, managing finances and leading and motivating employees. | True |
T/F According to research, most entrepreneurs are born, not made | False |
T/F Only individuals that thrive on taking big risks have the right personality to be an entrepreneur | False |
T/F After winning a medal for diving in the Olympics, Cheryl starts a diving instruction school. This is an example of a lifestyle firm. | True |
T/F In recent years, the fastest growing areas for women-owned firms have been in cosmetology, fashion merchandising, and hair salons. | False |
What are the steps of the entrepreneurial process? | Step 1. Deciding, Step 2. Developing ideas, Step 3. Moving idea to an entrepreneurial firm, Step 4. Managing and growing firm |
What are some of entrepreneurship's importance to the economy and society as a whole: | :-Innovation,-Job creation, improve society, assist larger firms. |
What are some of entrepreneurship's importance to society | Improvements in healthcare, Help people be more productive, Products and services that make our lives easier, Products and services that entertain us, |
What are some of entrepreneurship's importance to Larger firms | :Provide Components, Efficiency, Partnering |
_____ is a favorable set of circumstances that creates a need for a new product, service, or business. | An opportunity |
_____, _____, _____ are some ways to identify an opportunity | observing trends, solving a problem, finding gaps in the marketplace. |
Which environmental force pertains most to a trend such as the continual increase in the use of cellphones? | social forces |
Entrepreneurs can recognize problems and find ways to solve them through steps such as____, _____, & _____ | problems in emerging trends, framing a problem differently than it's been thought of before, and then proposing an appropriate solution, experiencing a problem in one's own life, and then realizing the solution represents a business opportunity. |
_____, _____, & _____ are characteristics shared by those who excel at recognizing opportunities. | prior experience, entrepreneurial alertness, social contacts and ties with others. |
_____ is the process of generating a novel or useful idea. | Creativity |
What is the first stage of the creativity process? | Preparation |
Which technique for generating ideas depends on freewheeling, the carefree expression of ideas free of rules or restraints? | Brainstorming |
Focus groups usually work best as a ________. | follow up to brainstorming |
An underutilized source of information for generating business ideas is ________. | the library |
T/F An idea is a favorable set of circumstances that creates a need for a new product, service, or business. | False |
T/F Window of opportunity relates to the time period in which a firm can realistically enter a new market | True |
T/F As an entrepreneur, it is important to be aware of changes in trends | True |
T/F Major retailers that serve large groups of customers with similar needs by competing mainly on price would be an example of finding gaps in the marketplace | False |
T/F Often, entrepreneurs are able to pursue an opportunity even before it is recognized as an opportunity | False |
T/F Entrepreneurial alertness is largely a learned skill. | True |
T/F It is more likely that an entrepreneur will get a business idea through a weak-tie relationship (infrequent interaction between casual acquaintances), than through a strong-tie relationship (frequent interaction between friends and co-workers). | True |
T/F Studies show that less than a quarter of start-up ideas emerge from a person's prior work experience | False |
T/F Brainstorming sessions are structured discussions that stay focused on one idea until an opportunity is identified. | False |
T/F Much of the effectiveness of a focus group session depends on the careful recruiting of over 20 participants. | False |
What are the essential qualities of an opportunity? | -Attractive, Durable, Timely, Anchored in or relates to a product or service that creates or adds value for its user |
Researchers have identified several characteristics that tend to make some people better at recognizing opportunities than others. | prior experience, better at sizing up the marketplace, extensive social and professional contacts, and creativity |
The most effective businesses emerge from a process that includes ____, ____, & _____ | writing a business plan, testing the feasibility of the idea, recognizing a business idea. |
______ is an example of primary research | administering surveys |
_____ is an assessment of the overall appeal of the product or service being proposed. | Product/service feasibility analysis |
_____, ______, & ______ are normally included in the concept test | a description of the product or service, the intended target market, the benefits of the product or service. |
_____, ______, & ______ are suitable questions to ascertain Product/Service Desirability | Does it make sense, Is this a good time to introduce the product or service in the market, Are there any fatal flaws in the product or service's basic design or concept? |
_____, ______, & _____are characteristics of attractive industries | the industry is young, the industry is fragmented, the industry has high operating margins. |
_____ is conducted to determine whether a proposed business has sufficient management expertise, organizational competence, and resources to successfully launch its business. | Organizational feasibility analysis |
The ability to obtain intellectual property protection on key aspects of the business is most likely an issue related to _____. | resource sufficiency |
What is the final step of a comprehensive feasibility analysis? | financial feasibility analysis |
The projected financial return to assess whether the venture is financially feasible considers _____, ______, & _____ | amount of capital invested, existing alternatives for the money being invested, risks assumed in launching the business. |
T/F The process of determining if a business idea is viable is the development of a business plan | False |
T/F Many entrepreneurs make the mistake of identifying a business idea and then jumping directly to writing a business plan to describe and gain support for the idea. | True |
T/F A concept test is the first physical depiction of a new product. | False |
T/F Some entrepreneurs conduct their initial product/ service feasibility analysis by simply talking about their product or service idea with others before deciding to move forward | True |
T/F Three important ways to accumulate evidence that there will be healthy demand for a product or service are with library, Internet and gumshoe research. | True |
T/F An industry is a group of firms producing a similar product or service | True |
T/F A target market is a place within a larger market segment that represents a broader group of customers with different needs | False |
T/F Two of the most important factors related to management prowess are passion for the business idea and understanding the markets in which the firm will participate. | True |
T/F The adequacy of the labor pool poses a resource sufficiency issue | True |
T/F For feasibility analysis, it is not typically required that an entrepreneur do a rigorous financial assessment | True |
What are the major components of a comprehensive feasibility analysis? | Product/service feasibility analysis, Industry/market feasibility analysis, Organizational feasibility analysis, Financial feasibility analysis |
What is the four step process effective businesses emerge from | Recognizing a business idea, Testing the feasibility of the idea, Writing a business plan, Launching the business |
A business plan is important for the following reasons ____, _____, & _____ | forces you to systematically think through each aspect of a new venture, provides an investor with something to react to, is a selling document that enables a company to present itself to potential suppliers and business partners. |
Which type of business plan is meant primarily for an internal audience? | operational business plan |
Why is the executive summary perhaps the most important section of the business plan? | If this section of the plan fails to attract an investor's interest, he or she is unlikely to read the remainder of the plan. |
What does the business plan call noteworthy or significant events | a milestone |
In which section of a business plan should the results of the feasibility analysis typically be presented? | Company Description |
In which section of a business plan should issues like facilities and equipment be discussed? | Operations Plan |
What are pro forma financial statements | forward-looking financial projections |
Most business plan writers interpret a firm's pro forma financial statements through ________. | ratio analysis |
____, _____, & _____ are commonly found in the appendix of a business plan | resumes of top management, photo, product prototype diagrams. |
What characterizes the first meeting to present the business plan to investors? | The meeting typically lasts about an hour: 20-minutes for a PowerPoint presentation, and 40-minutes for questions. |
T/F A full business plan should be written at the beginning of the entrepreneurial process | False |
T/F A business plan is important not just for outside investors and suppliers, but also current and potential employees. | True |
T/F The process of writing a business plan is NOT as valuable as the plan itself. | False |
T/F As it is good to ensure that a business plan looks as professional as possible, a consultant or outside advisor should be the primary author of the plan. | False |
T/F Because the executive summary appears at the beginning of the business plan, it should be created before the rest of the plan is created. | False |
T/F A Board of Advisers has legal responsibility for the firm and gives binding advice | False |
T/F The organizational chart should be presented in a graphical format if possible. | True |
T/F The pro forma financial statements are the heart of the financial section of a business plan | True |
T/F The appendix of a business plan should NOT contain any information that is vital to the plan | False |
T/F Whether at an initial meeting with investors, or on subsequent occasions, an investor who seems particularly negative may benefit the entrepreneur. | True |
Why is a business plan important? | A business plan forces you to think through every aspect of the new venture, and it communicates the merits of a new venture investors or bankers |
The executive summary is _______ to the business plan, and as such, is the ____ important section of the plan. | it is meant to be a “summary” of the plan itself, it is arguably the “most” important section of the business plan if it fails the reader is unlikely to read the remainder of the plan. |
What are the major differences between traditionally managed firms and entrepreneurially managed firms?
Strategic orientation of an entrepreneurial firm is driven by the presence or generation of new opportunities and the commitment to taking these opportunities rapidly. b. The traditionally managed firm is not only slow to act on an opportunity, but the commitment is usually for a longer time span. 3.
What is the first step in the process of corporate entrepreneurship?
The Entrepreneurial Process.
Idea Generation: every new venture begins with an idea. ... .
Opportunity Evaluation: this is the step where you ask the question of whether there is an opportunity worth investing in. ... .
Planning: Once you have decided that an opportunity, you need a plan for how to capitalize on that opportunity..
Which of the following is true of corporate venturing?
Which of the following is true of corporate venturing? It is the adding of new businesses or portions of new businesses via equity investments to the corporation.
Do corporate ventures become profitable twice as fast as independent ventures?
Corporate ventures become profitable twice as fast as independent ventures. A. Independent, venture-capital-based start-ups by entrepreneurs tend to outperform corporate start-ups significantly.