MGMT chapter 7 True/False – Flashcards
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Entrepreneurship occurs when an enterprising individual pursues a lucrative opportunity.
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True
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Margarita Morales independently owns and operates Great Gifts, a small business with 45 employees. She tends not to manage particularly aggressively and expects normal, moderate sales, profits and growth. Margarita's business would be considered an entrepreneurial venture
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False
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There is a difference between a small business and an entrepreneurship venture.
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True
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A small business is often defined as having fewer than 100 employees, as well as being independently owned and operated.
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True
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An entrepreneurial venture is a new business having growth and high profitability as primary objectives
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True
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Entrepreneurs are gamblers.
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False
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Corporate managers who create new independent businesses with assets purchased from the corporation are called intrapreneurs.
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False
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Entrepreneurs start their own firms to get rich quickly.
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False
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Successful entrepreneurs are innovators and also have good knowledge and skills in management, business, and networking.
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True
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Observers say that in contemplating your business, you must start with a great idea.
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True
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Great companies have always had success from the start.
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False
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Entrepreneurs spot, create, and exploit opportunities
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True
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Natural disasters can provide an attractive opportunity for entrepreneurs.
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True
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A franchisor is an innovator who has created at least one successful store and seeks partners to operate the same concept in other local markets.
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True
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Franchising is an entrepreneurial alliance between two organizations, the franchisor and the franchisee.
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True
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In the transaction fee model, fees are charged to bring buyers and sellers together.
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False
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The advertising support model involves charging fees for goods and services.
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False
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The intermediary model involves charging fees to bring buyers and sellers together.
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True
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The affiliate model involves charging fees to advertise on a site.
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True
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eBay is an example of the affiliate model.
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False
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Amazon.com uses the transaction fee model.
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True
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Entrepreneurs have been characterized as high risk takers and risk maximizers.
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False
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Entrepreneurial ventures can be characterized along two dimensions: innovation and risk.
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True
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Start-ups have at least two major liabilities: being new and growing too fast.
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False
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Acquiring venture capital is not essential to the success of most start-up businesses; in fact, it is rare.
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True
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Successful entrepreneurs anticipate difficulties and cushion their business to help it weather setbacks.
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True
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Business incubators are protected environments for new, small businesses.
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True
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To be successful, entrepreneurs need to learn to micromanage.
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False
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A common entrepreneurial malady is an aversion to record keeping.
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True
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Initial public stock offerings offer a way to raise capital through federally registered and underwritten sales of shares in the company.
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True
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A business plan describes only the basic idea involved in starting a new venture.
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False
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The best business plans convey five key factors: the people, the opportunity, the competition, the context, and risk and reward.
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True
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Legitimacy is people's judgment of a company's acceptance, appropriateness, and desirability, generally stemming from company goals and methods that are consistent with societal values.
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True
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Social capital is a competitive advantage in the form of relationships with other people and the image other people have of you.
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True
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Today's large corporations are passive bystanders in the entrepreneurial explosion.
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False
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Skunkworks are project teams designated to produce new products.
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True
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Bootlegging refers to official job assignments in which employees work to create new products and processes of their own choosing.
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False
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Organizations that encourage intrapreneurship face the obvious risk that the effort can fail.
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True
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Entrepreneurial orientation is the tendency of an organization to identify and capitalize successfully on opportunities to launch new ventures by entering new or established markets with new or existing goods or services.
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True
