ENT exam 1 - Flashcards | StudyHippo.com

question

Entrepreneurship is a form of creative destruction.

answer

True

question

The entrepreneurial mindset cannot be found within large corporations or socially responsible nonprofit organizations.

answer

False

question

Entrepreneurship can be found in some form in every country, race, age group, and (increasingly) in women as often as in men.

answer

True

question

Entrepreneurial ventures are not responsible for significant job creation.

answer

False

question

Entrepreneurial ventures and small businesses are related, but they are not the same in most respects.

answer

True

question

The vital issue for entrepreneurs is not avoiding failure but minimizing the cost of a possible failure.

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True

question

The term entrepreneur has been in popular use for more than 100 years.

answer

False

question

Economic turmoil has a plus side because it produces opportunities for entrepreneurs who are comfortable with environmental factors outside their control.

answer

True

question

Entrepreneurial ventures are responsible for job creation that is disproportionate to the net total new jobs created in the U.S. over the past 25 years.

answer

True

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The time prior to a firm's birth is called the fuzzy front end.

answer

True

question

As entrepreneurial firms achieve noticeable levels of success and a new industry grows, it generally becomes more ____ as a result of so many firms competing for position.

answer

Fragmented

question

____ entrepreneurship is characteristic of small lifestyle businesses.

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Replicative

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The ____ has been called the Decade of Entrepreneurship.

answer

1980's

question

Women now comprise ____ of all entrepreneurial activity globally.

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one-third

question

Entrepreneurs are taking advantage of several subtrends within the ____ sector, including eco-iconic marketing.

answer

Green Power

question

Twitter has been the leader in facilitating a new trend known as ____.

answer

mass mingling

question

The late 1980s brought the "dot com" bubble and the rush of the ____ community to position itself for what appeared to be a new way of doing business.

answer

Venture Captial

question

Entrepreneurship provides many benefits to society, chiefly ____, new industry formation, and ____.

answer

Economic Growth/ job creation

question

The ____ school of thought proposes an integrated input/output model to describe the entrepreneurial process.

answer

Morris, Lewis, and Sexton

question

Gartner's conceptual framework for the new venture creation process focuses on three major categories of variables: the individual entrepreneur and what he or she brings to the process; the ____; and the ____.

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environment / organization

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Early economists recognized that ____ is the primary force behind rising standards of living and that ____ innovation would determine the success of many nations in the future.

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technology / technological

question

Technological change has facilitated ____ and a new form of creative destruction by moving ____ out of the Unites States to countries where labor costs are substantially less.

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globalization / lower-skilled jobs

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Today, ____ is growing faster than any modern economy.

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China

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New industries are born when technological change produces a/an ____ opportunity that an enterprising entrepreneur seizes.

answer

Novel

question

Denmark, Israel, United Arab Emirates, and the United States have ____ economies.

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innovation driven

question

The Small Business Administration (SBA) defines a small business as one with fewer than ____ employees.

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500

question

Entrepreneurs typically have a vision of where they want their businesses to go, and generally that vision is on a regional, national, or (more often) ____ level.

answer

global

question

The process of new venture formation is characterized by ____ stage(s) and ____ transition(s) or decision points.

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Four/Three

question

____ is the mechanism that drives an individual to become a nascent entrepreneur because all other opportunities for income appear to be absent or unsatisfactory.

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Push

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The Small Business Administration Office of Advocacy reports that ____ of new businesses survive at least five years.

answer

one-half

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Firms that are most likely to survive over the long term are those that display superior levels of reliability and accountability in performance, ____, and structure.

answer

processes

question

More than ____ percent of Salesforce.com's employees are involved in philanthropy.

answer

85

question

The term entrepreneur has been popular in the United States since the ____.

answer

1940's

question

The 1970s saw the beginning of three significant trends that would forever change the face of business: macroeconomic turmoil, ____, and the technological revolution.

answer

international competition

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The ____ microprocessor affected the technological revolution of the 1970s.

answer

Intel

question

____ was not alone in asserting that the United States was rapidly and by necessity becoming an entrepreneurial economy.

answer

Peter Drucker

question

Responding to this entrepreneurial drive, big business in the 1980s found it necessary to downsize and reverse the trend of ____ it had promulgated for so long.

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Diversification

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Toward the end of the 1980s, researchers observed that young entrepreneurial ventures were ____ much earlier than expected and at a much smaller size.

answer

internationalizing

question

More than perhaps anything else, the 1990s were characterized as the ____.

answer

Information Age

question

The new millennium ushered in what many refer to as the ____.

answer

Knowledge economy

question

Entrepreneurship is a personal journey that begins in the mind of the nascent entrepreneur.

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True

question

Entrepreneurs start businesses for many reasons, but the number one reason appears to be their need for independence and to create something new.

answer

True

question

The chances of success for a new business startup are determined primarily by the size of the initial financial investment.

answer

False

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In an entrepreneurial endeavor, risk is correlated with reward; that is, the greater the risk taken, the greater the reward expected.

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False

question

Research has determined that effective and efficient business planning correlates with business success

answer

False

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The Internet has made it possible for those who want to be entrepreneurs to launch a business at relatively low cost.

answer

True

question

The "traditional entrepreneur" is an entrepreneur who starts a bricks-and-mortar business and builds it to a point where the wealth created can be harvested.

answer

True

question

Today many enterprising people are turning to nonprofit ventures to realize their entrepreneurial dreams.

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True

question

Entrepreneurs can choose to start a new venture from scratch, buy an existing business and build it, or start a venture inside a large existing organization.

answer

True

question

One of the biggest problems that scientists and engineers face when they decide to consider entrepreneurship is the expectation that there should be formulas and straightforward "right or wrong" answers.

answer

True

question

Research has confirmed that entrepreneurs are motivated intrinsically by such things as the desire for ____.

answer

Growth

question

When it comes to the Inc. 500 Fastest Growing Private Companies, the ____ is not a predictor of ultimate success.

answer

Amount of start up capital

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Most of the great businesses that have been successful for at least 50 years (companies such as Walt Disney, Sony, and Merck) did not start with a/an ____.

answer

Great idea

question

The goal of most entrepreneurs is to reduce the level of ____ in any venture.

answer

risk

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In general, venture capitalists say that they will take a ____ and a large market opportunity in a fast-growing area over a great idea any day

answer

great team

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The 2008 Global Entrepreneurship Monitor Report found that men and women in the ____ age bracket are responsible for 36 percent of all the entrepreneurial activity in the United States and for 22 percent of the activity globally.

answer

45-98

question

Peter Drucker asserted, "The entrepreneurial mystique, it's not magic, it's not mysterious, and it has nothing to do with the genes. It is ____."

answer

discipline

question

In the United States, ____ entrepreneurship is most prevalent.

answer

necessity-driven

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___ comprise over two-thirds of all sole proprietorships, partnerships, and S-corporations in the United States.

answer

Serial entrepreneurs

question

An entrepreneur who owns a minority or majority stake in several ventures is called a ____ entrepreneur.

answer

portfolio

question

An entrepreneur who starts one business and then moves on to start another is classified as a ____ entrepreneur.

answer

serial

question

Nourish International, a nonprofit run by ____, raises money to help eradicate global poverty.

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Students

question

Robert Chambers used the ____ organizational structure as a vehicle to help low-income people make better purchasing decisions when it came to cars.

answer

nonprofit

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Entrepreneurial-like ventures inside large companies are called ____.

answer

corporate ventures

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____ refers to an autonomous group with a mandate to find and develop new products for the company that may even be external to the company's core competencies.

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Skunk Words

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A very specific task that an entrepreneur can undertake to prepare for success is to find/be a ____.

answer

mentor

question

The probability of survival and success tends to go up with businesses that have more ____.

answer

investors

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____ is the exchange of information and resources among individuals, groups, or organizations whose common goals are to mutually benefit and create value for the members.

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Networking

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The ____ in a professional network are the entrepreneur's acquaintances and business contacts.

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weak ties

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Entrepreneurs rely on their ____ for objective advice.

answer

weak ties

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____ serve as gateways to other networks, exerting influence between groups or networks rather than within groups.

answer

Network Brokers

question

Which of the following is not a barrier to becoming self-employed?

answer

Lack of Training

question

____ is a critical part of the everyday life of an entrepreneur and is a skill that must be developed and exercised carefully.

answer

Making Effective decisions

question

____ facilitates a new venture's identity and legitimacy as well as creates a competitive advantage that is difficult to replicate.

answer

Storytelling

question

Critical entrepreneurial skills include ____.

answer

All of these

question

Entrepreneurial leaders have a distinct advantage over ____ leaders because they see themselves as part of a team.

answer

both "heroic" and "charismatic"

question

One of the best ways to discover an opportunity is to study a/an ____ in depth.

answer

industry

question

Companies engage in skunk works, ____ and ____ to simulate an entrepreneurial environment within the organization.

answer

intrapreneurship / acquisition

question

An entrepreneur's ____ are the foundation for the business and are always reflected in the business and in the way customers are treated.

answer

core values

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A/An ____ is a group of companies that are engaged in similar or related activities.

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industry

question

Creativity enables entrepreneurs to differentiate their businesses from competitors so that customers will notice them.

answer

True

question

Stage seven of Norman Seeff's creative process represents the emotional fulfillment of the original dream.

answer

True

question

Common types of roadblocks to creativity are personal, relational, and environmental.

answer

False

question

The illumination step in Wallas's creative process brings the idea to an outcome.

answer

False

question

Discovery theory and creation theory help explain how entrepreneurial opportunities happen.

answer

True

question

Entrepreneurs erect roadblocks that prevent them from being creative.

answer

True

question

The environment in which a person works can either stimulate or discourage creativity.

answer

True

question

The creative journey begins with maintaining a journal of one's thoughts and ideas.

answer

True

question

Entrepreneurs build businesses based on concepts that never existed before.

answer

False

question

One of the most effective ways that entrepreneurs have of finding opportunity is to see a problem and seek a solution.

answer

True

question

Entrepreneurs differ from others who have ideas in that they know how to extract ____ from those ideas to creative commercial potential.

answer

Value

question

____ sees opportunity arising from shifts in external factors in the market or industry, such as regulation, technological changes, and changes in customer preferences.

answer

Discovery theory

question

In ____, entrepreneurs create opportunities via their actions, reactions, and experiments around new products, services, and business models.

answer

Creation theory

question

Creativity is the basis for ____, which is discovering something that did not exist previously.

answer

invention

question

5. ____ is finding a new way to do something or improving on an existing product or service.

answer

innovation

question

Noller developed a formula that suggests that creativity is a function of three dynamics: knowledge, imagination, and ____.

answer

evaluation

question

Which of the following is not one of the four stages of the creative process identified by Wallas?

answer

association

question

No time for creativity, lack of confidence, and absence of creative skills are all examples of ____ roadblocks.

answer

Creativity

question

Creativity is the behavior that results in ____.

answer

innovation

question

____ on a regular basis trains the mind to shift quickly into the creative mode.

answer

Contemplation

question

According to Rosabeth Moss Kanter, accountability, collaboration, and initiative are all elements of ____.

answer

Confidence

question

Reducing some of the risk of entrepreneurship and building confidence can be achieved by ____.

answer

conducting a feasibility analysis

question

Closing the door, shutting off the phone, and turning off email to prepare to do some creative thinking are all examples of how you can ____.

answer

minimize distractions

question

____ is one of the most successful new product idea companies in the world.

answer

IDEO

question

Most business ideas stem from a/an ____ that an entrepreneur sees in his or her immediate environment.

answer

problem

question

The second most commonly cited source of new venture ideas is ____.

answer

Business associates

question

Thinking like a/an ____ can stimulate the natural creativity in everyone.

answer

Child

question

Creative ____ is about linking imagination and intelligence, emotion, and logic to arrive at the optimal opportunity.

answer

problem solving

question

The best question to ask to define a problem is ____?

answer

what is the source of the problem

question

A/An ____ reflects all the possible choices to solve the problem and its related outcomes.

answer

decision tree

question

Which of the following rules does not apply to idea generation?

answer

Evaluate individual ideas before modifying them

question

The ____ produces about three times as many ideas per unit of time and these ideas are generally of much higher quality.

answer

hybrid process

question

____ involves getting ideas down on paper and then organizing the ideas and creating themes.

answer

Brainwriting

question

The principle of ____ means looking for the strengths or positive aspects of a problem definition first.

answer

Affirmative Judgment

question

____ is concerned with the process of commercializing or extracting value from ideas.

answer

innovation

question

____ is the process that moves an innovation from the laboratory to the market.

answer

Commercialization

question

The vast majority of innovations today are ____.

answer

incremental

question

____ innovations can find no identifiable market in the earliest stages of development.

answer

Disruptive

question

In 2006, ____ percent of successful products were developed in collaboration with others.

answer

79

question

Strictly speaking, Schumpeter did not see ____ as innovation even if they generated economic growth.

answer

incremental improvements

question

Drucker's five questions are the basis for the development of the business concept.

answer

False

question

Business concepts are developed quickly and can be funded and operational within two days.

answer

False

question

A business concept is a concise description of an opportunity that contains seven essential elements.

answer

False

question

Business models are doomed to failure when the underlying logic about the future is incorrect.

answer

True

question

The value proposition is the benefit that the company derives from the product or service it will produce?in other words, it is the reason for the company to be in business.

answer

False

question

Most businesses produce either a product or a service, but not both.

answer

False

question

How to deliver the benefit to the customer is the issue addressed by the distribution channel element of the business concept.

answer

True

question

Investors are moving away from written business plans in favor of a brief, well constructed executive summary or pitch.

answer

True

question

An effective business model should be built in seven stages.

answer

False

question

Stage 3 of the business model is to calculate how to create value for the customer.

answer

False

question

The two fundamental activities that comprise a/an ____ are creating and capturing value.

answer

action plan

question

A ____ is the community of partners, suppliers, and other members of the value chain with which the venture does business.

answer

value network

question

Which of the following is not a component of a business model?

answer

action plan

question

The strategic choices that a business model addresses should reflect both the ____ and the ____ processes.

answer

value creation / value capture

question

Entrepreneurs must determine how they will make value for all except which of the following?

answer

Internet

question

The business concept should ____.

answer

be a quick "elevator pitch"

question

Which of the following is not essential to a business concept?

answer

Revenue model

question

What of the following is not a benefit to the customer?

answer

Uniqueness

question

A precise ____ increases the chances that the business concept will meet the customers' needs.

answer

customer definition

question

What of the following components of the business concept is least likely to ensure the success of the venture?

answer

Money

question

A new venture's ____ will convey its specific assets and capabilities, and make the venture more comprehensible and compelling.

answer

story

question

The first two steps in building a business model involve ____ and ____.

answer

identifying position in the value chain / creating customer value

question

In a/an ____ cost structure, the primary costs of the business come from customer acquisition.

answer

marketing

question

The more information an entrepreneur acquires through ____, the higher the chance that his or her predictions will be close to the mark, risk will be reduced and uncertainty managed.

answer

feasibility analysis

question

The feasibility analysis is about ____ a new business concept.

answer

testing

question

The feasibility analysis includes all of the following except ____.

answer

investor analysis

question

Which type of business is most likely to be launched on the strength of a feasibility analysis alone?

answer

Internet-related business

question

Which of the following is one of the three broad questions that a feasibility analysis answers?

answer

Do the capital requirements, based on estimates of sales and expenses, make sense?

question

Many weak business concepts can be eliminated from consideration ____.

answer

by answering a few simple questions

question

Most successful startups involve ____.

answer

teams rather than solo entrepreneurs

question

The value chain consists of the ____.

answer

distribution channel

question

In general, the ____ is the one who pays for the product.

answer

customer

question

A clear and precise definition of the ____ increases the chances that the business concept will meet the needs of the market.

answer

customer

question

Most businesses today produce both products and services that provide ____, which gives the company a competitive advantage.

answer

multiple revenue streams

question

The question of how to deliver the benefit to the customer is answered by ____.

answer

distribution channel

question

A/An ____ starts with a concept statement, specifying the pain or need in the market, the potential first customer, the value proposition for that customer, and how the value proposition will be delivered to the customer.

answer

quick screen

question

For a new product or service to be successful, it should ____.

answer

solve a problem that customers have

question

One part of the feasibility analysis addresses the business process. This part is called the ____.

answer

product/service analysis

question

____ with customers should give the entrepreneur confidence that the solution being provided is recognized as valuable by customers.

answer

market research

question

____ is very different from a business model because it considers more than the customer and how the new venture will create and capture value; it considers the competition.

answer

Strategy

question

Entrepreneurs identify their primary customers by recognizing a need, or pain, in the market.

answer

True

question

The North American Industry Classification System (NAICS) is the classification system that was developed by the United States, Canada, and Mexico to identify industries and to allow for common standards and statistics across North America.

answer

True

question

Industries remain static or stable over time, so it is easy for the entrepreneur to research and understand the industry.

answer

False

question

There are seven stages in the industry life cycle.

answer

False

question

For every industry, the life cycle stages occur at different times and vary in duration.

answer

True

question

Radical change occurs in industries when an innovation results in the obsolescence of previous technology and drives old-line companies out of business.

answer

True

question

The government can limit entry to an industry or market through strict licensing requirements and by limiting access to raw materials via laws or high taxes and to certain locations by means of zoning restrictions.

answer

True

question

Target market research provides some of the least important data needed to decide who the first customer will be.

answer

False

question

The market research process consists of seven steps.

answer

False

question

The most important data that entrepreneurs can collect on potential customers are primary data derived from observation, online or in-person surveys, phone surveys, interviews, and informal focus groups.

answer

True

question

A/An ____ is a grouping of competitors that an entrepreneur targets.

answer

market

question

A/An ____ analysis includes the political, sociocultural, economic, and technological environments in which the new venture will operate.

answer

PEST

question

The industry in which a new venture will operate is the business's ____.

answer

external environment

question

Google, Wikipedia, journals, and trade magazines are examples of ____.

answer

secondary sources

question

To access the timeliest information, it is important to gather ____ on an industry.

answer

primary data

question

As more firms enter an industry, intense ____ occurs.

answer

differentiation

question

The ____ period moves the industry from many companies and high product costs, to a more stable industry with only a few efficient firms.

answer

shakeout

question

____ change is found in industries where resources turn over frequently and must continually be replaced.

answer

Creative

question

____ has provided a way of effectively looking at the structure of an industry and at a company's competitive strength and positioning relative to that industry and to the markets it serves.

answer

Porter's 5 forces

question

Brand equity, advertising expense, and the rate of industry growth are part of which of Porter's forces?

answer

Intensity of competitive rivalry

question

The "first customer" is the customer who pays for the product or service and is the customer with the most ____.

answer

pain

question

"How is the industry described?", "Is the industry growing?", and "Where are the opportunities?" are all examples of the questions that should be answered when conducting the ____.

answer

industry analysis

question

It is best to begin researching the industry by using ____ information about the industry.

answer

Secondary

question

Birth, growth and adaptation, and shakeout are stages of the ____ life cycle.

answer

industry

question

A new industry goes through volatile and rapid changes as companies and their respective technologies jockey for position and the right to determine industry standards. This is what stage of the industry life cycle?

answer

Growth and Adaptation

question

____ change takes place as companies in the industry grow geographically and increase profits through innovations in operations, processes, distribution, and technology.

answer

Progressive

question

The model most commonly used to help an entrepreneur analyze an industry is ____.

answer

Porter's Five Forces Model

question

What is the phrase that is associated with the costs to produce a product when those costs have declined relative to the price of industry's goods and services?

answer

Economies of scale

question

To analyze specific aspects of the macro-environment, an entrepreneur should use ____.

answer

PEST analysis

question

Analyzing the government, demographics, cost of capital, and rate of change are all part of the ____.

answer

PEST analysis

question

Identifying and profiling the first customer, estimating potential demand from that customer, and identifying subsequent customer segments and needs to grow the company are goals of market research for ____.

answer

a new company

question

The ____ is an unserved niche that enables the entrepreneur to enter a market with no direct competition for a time.

answer

first customer

question

A good starting point for gathering secondary market data is ____.

answer

the internet

question

The market research process has ____ steps.

answer

four

question

The second step in the market research process is ____.

answer

researching secondary data

question

Observation, online or in-person surveys, phone surveys, interviews, and informal focus group are all ways to collect ____ data.

answer

primary

question

____ is the first step in an anthropological approach to customer observation.

answer

Induction

question

Providing more opportunity for clarification and discussion, the observation of nonverbal communication, and the high response rate are all examples of the advantages of ____.

answer

structured interviews

question

Age, income level, education, and buying habits are all components of the ____.

answer

customer profile

question

A/An ____ lays out the benefits, distribution channel, product/service, and potential competition for each identified customer segment.

answer

customer matrix

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