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Q:
Organizations exist for various purposes but have the same types of objectives.
Q:
An organization's vision outlines what the organization exists to do, given a particular group of customers and customer needs.
Q:
Organizational objectives are the targets toward which the management system is directed.
Q:
The last step in the planning process focuses on developing plans to pursue the chosen alternative for reaching organizational objectives.
Q:
Premises are the assumptions upon which alternatives to reaching organizational objectives are based.
Q:
Of the four primary management functions, organizing usually precedes planning.
Q:
A potential disadvantage of planning is that it can take up too much managerial time.
Q:
The affirmative purpose of planning is to minimize risk by reducing the uncertainties surrounding business conditions and clarifying the consequences of related management activities.
Q:
Planning is the process of determining how the organization will achieve its objectives.
Q:
When Nintendo develops and markets the Wii gaming system, it is an opportunity that has arisen from a ________.
A) new product or service
B) new geographical market
C) new method of production
D) new raw material
E) new method of organizing
Q:
A(n) ________ is an individual who identifies, evaluates, and exploits opportunities.
A) leader
B) entrepreneur
C) supplier
D) distributor
E) opportunist
Q:
Entrepreneurial opportunity is ________.
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
Q:
Which of the following demonstrates the correct sequence in the stages of entrepreneurship?
A) opportunity identification, opportunity evaluation, opportunity exploitation
B) opportunity identification, opportunity exploitation, opportunity evaluation
C) opportunity evaluation, opportunity identification, opportunity exploitation
D) opportunity evaluation, opportunity exploitation, opportunity identification
E) opportunity exploitation, opportunity evaluation, opportunity identification
Q:
________ refers to the identification, evaluation, and exploitation of opportunities.
A) Entrepreneur
B) Entrepreneurial opportunity
C) Entrepreneurial alertness
D) Entrepreneurship
E) Entrepreneurial risk
Q:
One distinction between commercial and social entrepreneurship involves the availability of resources such as funding and employees.
Q:
Social value refers to the basic long-standing needs of society and has little to do with profits.
Q:
Strategic renewal occurs when a firm proactively seeks to create a new product market position that competitors have not recognized.
Q:
Organizational rejuvenation occurs when a firm attempts to alter its own competitive strategy.
Q:
Arm & Hammer used sustained regeneration when it expanded the uses for baking soda by introducing it as a deodorizing ingredient in such products as toothpaste, laundry detergent, etc.
Q:
With respect to corporate entrepreneurship, sustained regeneration occurs when firms develop new culture, processes, or structures to support new product innovations.
Q:
Bank financing occurs when an entrepreneur obtains financing from a financial institution in the form of a loan.
Q:
Venture capitalists generally make larger investments than angel investors.
Q:
Venture capitalists generally make more investments than angel investors.
Q:
All entrepreneurs completely fund operations with their own money or credit cards.
Q:
Exploitation exists when entrepreneurs overestimate the extent to which they can control the outcome of an opportunity.
Q:
Illusion of control refers to the activities and investments committed to gain returns from the new product or service arising from an opportunity.
Q:
Downside loss refers to the resources that an entrepreneur could lose if an opportunity does not succeed.
Q:
Feasibility analysis helps entrepreneurs understand whether an idea is practical.
Q:
When analyzing entrepreneurial opportunities, the opportunity identification step is, "Where the rubber meets the road" and often presents a difficult challenge.
Q:
Information asymmetry refers to an individual's ability to notice and be sensitive to new information about objects, incidents, and patterns of behavior.
Q:
Entrepreneurial alertness refers to an individual's ability to notice and be sensitive to new information about objects, incidents, and patterns of behavior in the environment.
Q:
Opportunities may sometimes arise from the discovery of new geographical markets in which new customers will value the new product or service.
Q:
Opportunity evaluation is the first stage of the entrepreneurial process.
Q:
Entrepreneurship refers to the identification, evaluation and exploitation of opportunities.
Q:
Define social entrepreneurship.
Q:
What is corporate entrepreneurship?
Q:
When do entrepreneurs require external capital? Describe the three primary sources of external capital.
Q:
Describe opportunity exploitation.
Q:
What is entrepreneurial risk? In this context, explain downside loss.
Q:
Explain feasibility analysis.
Q:
Describe the four factors that influence the ability of individuals to identify opportunities.
Q:
What is entrepreneurial opportunity? Which are the types of opportunities as described by Schumpeter?
Q:
Who is an entrepreneur?
Q:
Explain the fundamentals of entrepreneurship.
Q:
Which of the following is true about the differences between commercial and social entrepreneurship?
A) The purpose of commercial entrepreneurship is to create value for the public.
B) Social entrepreneurs are not required to consider issues surrounding sales and costs since they have enough funding from angel investors.
C) Most commercial entrepreneurs rely on donations as sources of funding.
D) Commercial entrepreneurs focus on less quantitative performance measures that are not related to money.
E) Although profits remain somewhat important, social value dominates the goal structure of social entrepreneurship.
Q:
________ refers to the basic long-standing needs of society and has little to do with profits.
A) Commercial value
B) Social value
C) Economic value
D) Psychological value
E) International value
Q:
Bryan has started a nonprofit organization that places the visually impaired in suitable jobs. What type of entrepreneurship is Bryan displaying?
A) corporate social entrepreneurship
B) intrapreneurship
C) commercial entrepreneurship
D) corporate entrepreneurship
E) social entrepreneurship
Q:
________ involves the recognition, evaluation, and exploitation of opportunities that create social value as opposed to personal or shareholder wealth.
A) Corporate social entrepreneurship
B) Intrapreneurship
C) Intrepreneurship
D) Corporate entrepreneurship
E) Social entrepreneurship
Q:
Coral Inc. is a company specializing in the manufacture of crystal ware. It is based out of Charleston, South Carolina, and has a profitable market share in the southern states of Florida and Georgia as well. The managers at Coral Inc. are aware of entrepreneurial opportunities outside these states. After a decade of successful business in these three states, the company has decided to reach out to a larger market. This will mean hiring more resources and greater financial investments. Which of the following, if true, would MOST strengthen the argument for expanding the business to other states?
A) The company is struggling to maintain its products' quality because of the increasing bargaining power of suppliers.
B) Customers in these states are showing interest in buying more products of the same product category.
C) Recent financial results show that their competitors are incurring losses.
D) Market research indicates that very limited changes in existing products will be required to attract prospective customers in neighboring states.
E) Melamine kitchenware items are doing better business than glass and crystal.
Q:
________ occurs when a firm proactively seeks to create a new product market position that competitors have not recognized.
A) Sustained regeneration
B) Organized rejuvenation
C) Public hosting
D) Strategic renewal
E) Domain definition
Q:
________ occurs when a firm attempts to alter its own competitive strategy.
A) Public hosting
B) Sustained regeneration
C) Organized rejuvenation
D) Strategic renewal
E) Domain definition
Q:
________ involves improving the firm's ability to execute strategies and focuses on new processes instead of new products.
A) Sustained regeneration
B) Project hosting
C) Organizational rejuvenation
D) Strategic renewal
E) Domain definition
Q:
Which of the following is the most frequently used type of corporate entrepreneurship?
A) sustained regeneration
B) organized rejuvenation
C) domain definition
D) strategic renewal
E) project hosting
Q:
________ occurs when firms develop new culture, processes, or structures to support new product innovations in current markets as well as with existing products in new markets.
A) Domain definition
B) Organized rejuvenation
C) Strategic renewal
D) Sustained regeneration
E) Project hosting
Q:
Which of the following is true about corporate entrepreneurship?
A) Corporate entrepreneurs focus on less quantitative performance measures that are not related to money.
B) The purpose of corporate entrepreneurship is to create value for the public.
C) Corporate entrepreneurs face more difficulties attracting capital from angel investors, venture capitalists, or banks.
D) Corporate entrepreneurship results in new companies that often continue to work closely with the parent company.
E) Corporate entrepreneurs often face difficulties in the form of hiring and compensating employees.
Q:
Beth heads the team of designers at La Belle, Inc., a well-known brand for designer bags. She is an extraordinary designer herself and is also an excellent manager to her team. In the past, La Belle has successfully implemented many of her innovative ideas to their benefit. The company has now decided that Beth should be given the responsibility of managing their new business unit that specializes in clothes, shoes, and other accessories. What type of entrepreneurship is displayed in this scenario?
A) intrapreneurship
B) creative destruction
C) corporate social entrepreneurship
D) social entrepreneurship
E) corporate entrepreneurship
Q:
________ is 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.
A) Corporate social entrepreneurship
B) Intrapreneurship
C) Intrepreneurship
D) Corporate entrepreneurship
E) Social entrepreneurship
Q:
Which of the following is true about banking finance?
A) Like angel investors and venture capitalists, banks invest in a business.
B) Banks are more interested in ensuring that the entrepreneur's opportunity will survive long enough to ensure repayment.
C) Banks typically focus on investing in a small number of industries.
D) Banks are concerned with the long-term potential for returns.
E) Banks typically provide more capital as the new venture becomes more established.
Q:
Which of the following is true about the differences between angel investors and venture capitalists?
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.
Q:
Which of the following best describes an angel investor?
A) Families and friends of an entrepreneur are not angel investors.
B) Angel investors raise money and then use this money to make investments in new firms.
C) Angel investors make fewer investments than venture capitalists.
D) Angel investors focus on a small number of industries.
E) Angel investors provide the initial financing to start-up ventures.
Q:
________ are firms that raise money from investors and then use this money to make investments in new firms.
A) Angel investors
B) Venture capitalists
C) Banking institutions
D) Entrepreneurs
E) Insurance companies
Q:
Jose has successfully initiated a business of repairing cars. However, without immediate income to sustain the business, he may have to shut shop. His friend, Adam, invests in the company and gives the company a much-required boost. Adam is an example of a(n) ________.
A) bank financier
B) venture capitalist
C) angel investor
D) crowd funder
E) private equity investor
Q:
Entrepreneurs are most likely to exploit an opportunity when ________.
A) customers are likely to continue using the same product
B) there is no market demand, but an opportunity to create market demand
C) they perceive that they have the support of important stakeholders
D) they want to enhance the prospects of the opportunity by training an incapable management team
E) they feel they do not have access to the resources needed to ensure high levels of organizational performance
Q:
________ refers to the activities and investments committed to gain returns from the new product or service arising from the opportunity.
A) Exploitation
B) Information asymmetry
C) Entrepreneurial risk
D) Illusion of control
E) Social value
Q:
________ is the third step of the entrepreneurial process.
A) Opportunity identification
B) Opportunity evaluation
C) Opportunity exploitation
D) Opportunity selection
E) Opportunity improvement
Q:
Jerry starts his own business even when he is advised by family and friends that it is not a suitable opportunity. His friends feel that the market is uncertain and new entry at this juncture is inadvisable. Jerry soon realizes that his friends were right and he should have taken their advice. In spite of himself, he is forced to admit that the market situation is such that it would take more than a good entrepreneur to survive. This is an example of ________.
A) exploitation
B) anchoring
C) information bias
D) illusion of control
E) reactance
Q:
Which of the following is true about factors that adversely influence the accuracy of an entrepreneur's risk perceptions?
A) An entrepreneur's belief in the law of small numbers increases the risk he or she perceives with an opportunity.
B) Because individuals are more likely to obtain good information and less likely to obtain bad information, small samples of information are likely biased negatively.
C) Most entrepreneurs have access to large databases.
D) The control that an entrepreneur feels with respect to the opportunity's outcome may influence perceptions of the idea's risk.
E) Law of small numbers and the illusion of control positively influence the accuracy of risk perceptions when evaluating opportunities.
Q:
Which of the following, if true, would most weaken Jack's argument?
A) Other companies that have ventured into this area have met with mixed results.
B) Increased working capital can lead to a liquidity crunch for the firm.
C) The firm has not made any significant investments in the recent past.
D) The investment required is minimal and complements the company's existing lines of business.
E) The firm will have to overcome several entry barriers to take advantage of this opportunity.
Q:
Cicada Inc. is a small firm involved in the design and manufacture of residential and commercial furniture. The company has recently identified an attractive opportunity that would serve their growth and revenue plans well, but Jack Walters, one of the company's founding members, vehemently opposes the idea.Which of the following, if true, would most strengthen Jack's argument?A) The cost of borrowing funds to finance this endeavor is lower than the rate of return on the investment.B) The company has underestimated the extent to which they can control the outcome of the opportunity.C) The company has historically used small, but relevant, samples of information to arrive at their decisions.D) Jack generally has a tendency to avoid risks and has vetoed several viable business opportunities in the past.E) Though the probability of failure is minimal, the downside loss could threaten existing operations.
Q:
Betty and David decide to do a survey to get people's reaction to their innovative idea for a new product. With the help of an organization that conducts primary research, the couple are able to get the response of people from their town. The results are very encouraging and they decide to start their company. What error have they committed?
A) hypercorrection
B) cognitive distortion
C) law of small numbers
D) defence mechanism
E) overregularization
Q:
________ refers to the resources that the entrepreneur could lose if the opportunity does not succeed.
A) Downside loss
B) Entrepreneurial risk
C) Feasibility analysis
D) Information asymmetry
E) Illusion of control
Q:
________ is the likelihood and magnitude of the opportunity's downside loss.
A) Illusion of control
B) Entrepreneurial risk
C) Entrepreneurial alertness
D) Exploitation
E) Entrepreneurial opportunity
Q:
Mike wants to start his own laundry service. However, he intends to first study the market and consider factors like who his competitors are, how they function, their market shares, how he can attract prospective customers, etc., before he decides whether his plan is viable. Mike is engaging in ________.
A) benchmarking
B) entrepreneurial risk management
C) feasibility analysis
D) exploitation
E) angel investing
Q:
________ is a type of evaluation that helps entrepreneurs understand whether an idea is practical.
A) Illusion of control
B) Entrepreneurial risk management
C) Strategic planning
D) Feasibility analysis
E) Entrepreneurial alertness
Q:
________ is the second step of the entrepreneurial process.
A) Opportunity identification
B) Opportunity selection
C) Opportunity evaluation
D) Opportunity feedback
E) Opportunity success
Q:
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 ________.
A) information symmetry
B) market research
C) information asset
D) entrepreneurial alertness
E) entrepreneurial risk
Q:
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?
A) information asset
B) information assurance
C) social networking
D) information asymmetry
E) information reliability
Q:
________ refers to an individual's ability to notice and be sensitive to new information about objects, incidents, and patterns of behavior in the environment.
A) Social networking
B) Entrepreneurial opportunity
C) Entrepreneurial alertness
D) Feasibility analysis
E) Entrepreneurial risk
Q:
________ is the first step of the entrepreneurial process.
A) Opportunity identification
B) Opportunity evaluation
C) Opportunity exploitation
D) Opportunity feedback
E) Risk evaluation
Q:
Which of the following is an example of an opportunity that arose from the use of a new method of organizing?
A) using corn to produce ethanol
B) using the Internet to sell a product
C) raising chicken without antibiotics
D) an American bank providing services in China
E) the invention of the heart stent