Question 1

Small businesses and entrepreneurial firms create the majority of new jobs in the US economy

Accepted Answer

True

Question 2

Most small businesses in the US are in retail trade and construction industries.

Accepted Answer

False

Question 3

Opportunity recognition is the process of identifying, selecting, and developing entrepreneurial opportunities

Accepted Answer

True

Question 4

Opportunity recognition involves two phases of activity: discovery and evaluation

Accepted Answer

True

Question 5

The evaluation phase of opportunity recognition includes the \"Aha!\" experience that often leads to new venture development

Accepted Answer

False

Question 6

The majority of entrepreneurial start-ups are financed with personal savings and the contributions of family and friends

Accepted Answer

True

Question 7

The majority of entrepreneurial firms are started with financing from venture capitalists and banks

Accepted Answer

False

Question 8

Angel investors are private individuals who provide equity investments for seed capital during the early stages of a new venture

Accepted Answer

True

Question 9

As investors, venture capitalists rarely provide any help or services to entrepreneurial firms other than financing

Accepted Answer

False

Question 10

Venture capital funding for entrepreneurial ventures is usually available only after the start-up has become a going concern and established track record

Accepted Answer

True

Question 11

Venture capital is a form of public equity financing used to help young firms grow rapidly

Accepted Answer

False

Question 12

To obtain venture capital financing, business founders often have to give up some ownership and control of their business

Accepted Answer

True

Question 13

Venture capitalists and angel investors regard the management team as the most important asset of an entrepreneurial venture

Accepted Answer

True

Question 14

Because of the Small Business Administration and government regulations, small businesses are rarely allowed to bid on government contracts

Accepted Answer

False

Question 15

An entry wedge is a type of entrepreneurial strategy firms can use to enter into business

Accepted Answer

True

Question 16

Founders using a pioneering new entry strategy look for opportunities to capitalize on proven market successes

Accepted Answer

False

Question 17

Adaptive new entry involves offering a radical new product or highly innovative service

Accepted Answer

False

Question 18

Rather than fighting over existing customers, firms pursing a \"blue ocean\" strategy seek opportunities in uncontested markets

Accepted Answer

True

Question 19

\"Blue ocean\" strategies rarely provide sustainable advantages because they are easily imitated

Accepted Answer

False

Question 20

Because new ventures are typically small, they usually don\'t have high economies of scale relative to competitors

Accepted Answer

True

Question 21

Entrepreneurial firms are often in a strong position to use combination strategies because they have the flexibility to approach situations uniquely

Accepted Answer

True

Question 22

Entrepreneurial competitive dynamics refers to a cycle of actions and responses between firms competing for the same customers

Accepted Answer

True

Question 23

Entrepreneurial new entry is often perceived as a competitive threat because most market needs are being met, either directly or indirectly, by an existing firm

Accepted Answer

True

Question 24

Market commonality is the extent to which rivals draw from the same types of resources

Accepted Answer

False

Question 25

When attacked, older and larger firms tend to respond more quickly but their responses are often more predictable

Accepted Answer

False

Question 26

Cutting prices or increasing marketing efforts are examples of tactical competitive actions

Accepted Answer

True

Question 27

In the context of competitive dynamics, tactical actions involve major commitment of distinctive and specific resources to strategic initiatives

Accepted Answer

False

Question 28

Refinements or extensions of existing strategies are often referred to as tactical actions

Accepted Answer

True

Question 29

Forbearance is a particularly aggressive type of competitive attack

Accepted Answer

False

Question 30

Co-opetition, where competitors work together behind the scenes, is a form of illegal tacit collusion

Accepted Answer

False

Question 31

For an entrepreneurial start-up to be successful, three ingredients are critical. What are they?

Accepted Answer

1. Viable opportunity  2. Available resources  3. Qualified and motivated founding team

Question 32

Which of the following is a common source of new business opportunities?

Accepted Answer

(A. Current or past work experiences  B. Suggestions by family or friends  C. Chance event)  D. ALL OF THESE

Question 33

The process of identifying, selecting, and developing new venture opportunities is known as

Accepted Answer

opportunity recognition

Question 34

Generally speaking, the opportunity recognition process consists of two phases of activity. They are

Accepted Answer

discovery and evaluation

Question 35

Which of the following is NOT one of the characteristics of an entrepreneurial opportunity?

Accepted Answer

affordable

Question 36

When an opportunity is attractive long enough for it to be successfully developed and deployed, it is said to be

Accepted Answer

durable

Question 37

Which of the following terms is used to refer to opportunities that are practical and physically possible?

Accepted Answer

achievable

Question 38

Financing for entrepreneurial start-ups includes which of the following?

Accepted Answer

All of these

Question 39

Which of the following sources of entrepreneurial financing are available to ventures that have already started to conduct business and generate sales?

Accepted Answer

All of these

Question 40

The majority of entrepreneurial start-ups are financed with

Accepted Answer

personal savings and the contributions of family and friends

Question 41

Private individuals who provide seed capital to young ventures are known as

Accepted Answer

angels

Question 42

All of the following statements about venture capital are true EXCEPT

Accepted Answer

venture capital is a form of public equity financing

Question 43

Based on statistics reported in the text, which of the following statements is FALSE?

Accepted Answer

Ninety percent of the companies financed with venture capital funds fail

Question 44

According to the text, new ventures launched by entrepreneurial teams are more likely to be successful than ventures launched by

Accepted Answer

\"lone wolf\" entrepreneurs

Question 45

Which of the following types of resources contribute to the success of entrepreneurial firms?

Accepted Answer

All of these

Question 46

__________ provide(s) a key avenue for growth for many young and small firms through partnering to obtain resources and/or expand into new markets

Accepted Answer

Strategic alliances

Question 47

The US Small Business Administration supports small business through all of the following EXCEPT

Accepted Answer

investing venture capital

Question 48

Which of the following is NOT one of the three characteristics of entrepreneurial leadership mentions by the text?

Accepted Answer

Clarifying job responsibilities

Question 49

Why is vision such an important element of entrepreneurial leadership?

Accepted Answer

Because the entrepreneur has to envision realities that do not yet exist

Question 50

Which of the following is NOT a common new entry strategy according to the text?

Accepted Answer

proactive new entry

Question 51

Seeking products or services that have been successful in one market and introducing the same basic product or service in another segment of the market is referred to as

Accepted Answer

imitative new entry

Question 52

Which of the following is NOT a key element of blue ocean strategy?

Accepted Answer

Highlight incremental improvements to capture market share

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