mgmt quiz 6 – Flashcards
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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 entrepreneur is not a manager but engages in additional activities that all managers do.
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false
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Entrepreneurs experience stress, but they also have high job satisfaction.
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true
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Business incubators, often located in industrial parks or abandoned factories, are protected environments for new, small businesses.
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true
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As the business grows, entrepreneurs often hesitate to delegate work they are used to doing.
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true
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The pursuit of lucrative opportunities by enterprising individuals under conditions of uncertainty is known as:
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entrepreneurship
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While working at a software company, Ronald has created a new venture based solely on his idea while using his company's proprietary technology. Ronald can be described as a(n):
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intrepreneur
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Eddie was a manager at a company that produced household appliances. He had many innovative ideas to increase profit. However, his ideas were not received well by the company. So, he left the company to pursue his own business. His new business is known as a(n):
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entrepreneurial venture
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When creating a new business one should start with:
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a great idea
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In the context of successful business models for e-commerce, the _____ model involves charging fees to direct Internet website visitors to other companies' websites.
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affiliate
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Laura, an enterprising individual, wants to open a store in her town. She wants her store to be of the same type as a popular coffee chain that is successfully operating in a city nearby. Laura wants to become a(n):
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franchise
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the side effect refers to:
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the appearance of unexpected opportunities as one follows a plan.
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Which of the following characteristics helps an entrepreneur succeed?
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Tolerance of risk, ambiguity, and uncertainty
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In the context of the entrepreneurial strategy matrix, a novel product idea that involves a large financial investment would be described as:
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high innovation/high risk
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Which of the following is true of entrepreneurial ventures?
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Successful companies do not always require a cutting-edge technology or an exciting new product.
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_____ are protected environments for new, small businesses offering low rents and shared costs.
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business incubators
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In the context of common management challenges, leadership deteriorates into micromanagement when entrepreneurs fail to:
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delegate work
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The success of entrepreneurial venture is often jeopardized by the death of the founder. Which of the following is an important measure to minimize this problem?
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succession planning
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_____ offer a way for a business to raise capital through federally registered and underwritten sales of shares in the company.
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initial public stock offerings
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According to Peter Drucker, which of the following is true with respect to managing a family business?
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Someone outside the family and the business should help plan succession.
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Entrepreneurs, in part because they are very busy, often fail to use _____, resulting in inadequate margins to support growth.
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formal control systems
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A description of the good or service, an assessment of the opportunity, an assessment of the entrepreneur, specification of activities and resources needed to translate the idea into a viable business, and the source(s) of capital together make up a(n):
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opportunity analysis
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Which of the following is a function of business plan?
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to ensure the success of the business
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Which of the following key planning elements involves a competitive advantage that can be defended and should be focused on customer?
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opportunity
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People's judgment of a company's acceptance, appropriateness, and desirability, generally stemming from company goals and methods that are consistent with societal values is known as:
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legitimacy
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As an organization grows, the successful entrepreneur will:
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develop an effective top management team.
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Orlando works as a technician for a large manufacturer of biomedical equipment. Orlando has discovered a way to produce disposable products in large quantities that will be useful in research facilities. His employer has given Orlando and a selected team of researchers the resources to develop this idea. This project is referred to as:
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a skunkwork
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Successfully fostering and managing intrapreneurship involves:
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rewarding risk taking.
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The tendency of an organization to engage in activities designed to identify and capitalize successfully on opportunities to launch new ventures by entering new or established markets with new or existing goods or services is known as:
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entrepreneurial orientation
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The most dangerous risk in intrapreneurship is that of:
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over relying on a single large project.
