Chapter 1 MGMT 375 – Flashcards
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Entrepreneurial education
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-has become extremely popular. -universities are not able to meet the demand. -more courses are being offered in entrepreneurship. ALL OF THE ABOVE
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Dirk wants to be in control. He's tired of taking orders from others and wants to feel a sense of accountability for the outcome of his work. Dirk displays the entrepreneurial characteristic of
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The desire for immediate feedback
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Juan is able to work well in a constantly changing atmosphere and has little concern for what tomorrow will bring. Juan demonstrates which of the following characteristics of a typical entrepreneur?
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Tolerance for Ambiguity
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Entrepreneurs start businesses for a number of reasons including
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An opportunity to make a difference
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A significant benefit of starting your own company is
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contribute to society and to be recognized for your efforts
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Mary and Ted are discussing starting a new business and are asking themselves a series of questions like; "What is the worst that could happen if we fail?" "How likely is that to happen?" They are assessing which potential drawback of small business ownership?
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Risk of losing your entire investment
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Potential drawbacks of small business ownership include:
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a high likelihood of a lower quality of life while starting and establishing the small business
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More businesses are started by individuals between ________ than at any other age.
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25-34
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The growth of entrepreneurship is being fed by:
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Technological Advances
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Companies started by women differ from companies started by men in that:
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Womens companies start smaller
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Minorities cite which of the following as the primary barrier to their entrepreneurship?
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Discrimination
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When building a home-based business, it is important that the entrepreneur:
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keep friends and neighbors from disturbing him/her while working at home.
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When running a home-based business
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you still need to dress for work and for client meetings.
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"Copreneurs" are marked by:
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A division of labor by expertise
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Successful copreneurs are marked by what characteristics?
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Mutual respect for each others talents
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A major threat that family businesses face is:
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Management succession
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Bill and Sally have been tired of the corporate rat race. They leave their investment banking positions in New York, move to Colorado and start a business raising Mohair sheep. This couple is an example of the entrepreneurial phenomenon of:
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Corporate Castoffs
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Small businesses thrive in every industry, but the majority of them are in the:
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Service Industries
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More businesses fail because of ________ than for any other reason.
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Inexperienced Management
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Tom was a financial consultant who liked to work with his hands, especially in making furniture. He quit his rat race financial job to start a small custom furniture business. After struggling for several years, he closed it and went back to financial services. Tom discovered that there was a big difference between making furniture for himself and running a customer furniture manufacturing business. Tom's business failed because of:
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Lack of Experience
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Entrepreneurial businesses fall victim to this circumstance because they think it only benefits large companies. Without it, a firm has no sustainable basis for survival.
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A lack of strategic planning
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One key to success with a business start up is to begin with enough ________:
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Capital
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The location of the business is especially important for what type of start-up businesses?
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Retail
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A key characteristic of a successful entrepreneur is:
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Learning to fail intelligently because failure is a natural part of the creative process
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The key ingredient-the crucial element-to avoiding the failure of a new business is:
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Prepare a solid business plan
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The key to effective financial management in a start-up is:
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To have adequate start-up capital and how to manage cash effectively
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The most important change due to Expansion occurs in:
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Managerial Expertise
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Primary cause of business failure is:
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Incompetent Management
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Forces driving the entrepreneurial trend in our economy include?
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Several factors are driving the boom in entrepreneurship including entrepreneurs portrayed as heroes, better entrepreneurial education, economic and demographic factors, a shift to a service economy, technology advances, more independent lifestyles, and increased international opportunities
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Management Incompetence includes
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Secrecy, Over-sensitivity, love of procedure, focusing on small tasks, long hours
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Customer service, convenience, speed and quality are all examples of
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Setting your business apart from others
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Joanne is thinking about running her own business. What risks does she face?
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Losing her entire invested capital
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Despite their magnitude, family businesses face a major threat — a threat from within: management succession.
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TRUE
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When an entrepreneur develops a relationship with a manager in a large established company in order to draw on the corporate manager's experience, it is called "Copreneurship."
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FALSE
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Research shows that for "Copreneurship" to work, responsibilities must be divided by gender.
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FALSE
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One important characteristic of successful "copreneurs" is their ability to separate their business life from their personal life, so that one doesn't consume the other.
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TRUE
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"Corporate dropouts" are middle managers who are laid off from large corporations and decide to start their own businesses rather than return to a corporate job.
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FALSE- people who dropout of corporate race to start their own business
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Small businesses create more jobs than either medium or large businesses.
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TRUE
