Chapter 6 Exam Questions Entrepreneurship

M: Management, 6e (Bateman)

Chapter 6 Entrepreneurship

1) An entrepreneur is NOT a manager but engages in additional activities that all managers do.

2) A small business differs from an entrepreneurial venture.

3) In the context of the entrepreneurial strategy matrix, most small business ventures are in the lower right quadrant where innovation is low and risk is high.

4) A common entrepreneurial malady is an aversion to record keeping.

5) Social capital refers to being part of a social network and having a good reputation.

6) Organizations that encourage intrapreneurship face the obvious risk that this effort can fail.

7) ________ is the pursuit of lucrative opportunities by enterprising individuals under conditions of uncertainty.

A) Entrepreneurship

B) Sugging

C) Bootlegging

D) Skunkworks

E) Incubation

8) ________ is the process by which enterprising individuals initiate, manage, and assume the risks and rewards associated with a business.

A) A start-up

B) A partnership

C) An incubator

D) Entrepreneurship

E) Joint venture

9) A(n) ________ is an enterprise having fewer than 500 employees, independently owned and operated, not dominant in its field, and not characterized by many innovative practices.

A) nonprofit organization

B) small business

C) greenfield venture

D) entrepreneurial venture

E) incubator

10) A(n) ________ is a new business having growth and high profitability as primary objectives.

A) angel-funded-start-up

B) junior enterprise

C) merger

D) entrepreneurial venture

E) greenfield venture

11) When working for a software company, and because Tomas is a(n) ________, he created a new venture based solely on his idea while using his company's proprietary technology.

A) intrapreneur

B) angel investor

C) quasi partner

D) venture capitalist

E) franchisee

12) ________ are new venture creators working inside big companies; they are corporate entrepreneurs, using their company's resources to build a profitable line of business based on a fresh new idea.

A) Intrapreneurs

B) Entrepreneurs

C) Sole proprietors

D) Management novices

E) Licensees

13) Choose the statement that is true of entrepreneurship.

A) Any entrepreneur with a good idea can raise venture capital.

B) Entrepreneurs are their own bosses and independent.

C) Entrepreneurs "get rich quick" and enjoy a lot of leisure time.

D) Entrepreneurs take careful, calculated risks and are not afraid to act on those decisions.

E) If an entrepreneur is talented, he or she will quickly succeed.

14) Identify the correct statement regarding entrepreneurship.

A) Entrepreneurs are gamblers.

B) Entrepreneurs are their own bosses and independent.

C) Entrepreneurs experience stress, but they also have high job satisfaction.

D) Entrepreneurs seek power and control over others.

E) If an entrepreneur is talented, he or she will quickly succeed.

15) Tomas was a manager at a company that produced household appliances. He had many innovative ideas to increase profits. However, his ideas were not received well by the company. So, he left the company to pursue his own business, thus creating a(n)

A) entrepreneurial venture.

B) spin-off.

C) franchise.

D) merger.

E) angel investment.

16) Frances recently started her own business. She has nearly recreated a company she worked for previously. She is innovative and has great management skills and has been able to run her business efficiently and profitably. Frances is a(n)

A) promoter.

B) entrepreneur.

C) manager.

D) intrapreneur.

E) inventor.

17) ________ involves creating new systems, resources, or processes to produce new goods or services and/or serve new markets.

A) Advertising

B) Micropayment

C) Entrepreneurship

D) Profiteering

E) Transporting

18) From the profiles below, identify the person who is most likely to become a successful entrepreneur.

A) Percy enjoys challenges, has a strong social network, has good knowledge of management techniques, and possesses excellent business skills.

B) Dot has an MBA and has been a manager in a corporate office for ten years. She likes a job to be well done and works best when she plans ahead.

C) Kaitlin likes to invent new products, enjoys working in the laboratory, and avoids conflict whenever possible. She has little knowledge of business.

D) Sarah has strong marketing and selling skills, and loves challenges in these areas.

E) Liam is creative, embraces new ideas and products, and likes to motivate others but prefers working by himself.

19) ________ use networks of contacts more than formal authority.

A) Managers

B) Entrepreneurs

C) Small businesses

D) Franchisees

E) Franchisors

20) A common myth about entrepreneurship is that "Any entrepreneur with a good idea can ________ to fund his/her business."

A) go public

B) use a skunkworks

C) use formal control systems

D) raise venture capital

E) start a franchise

21) Paul is more deliberate and slower to act, and he tends to avoid risk. Paul is better suited to be a(n) ________ than a(n) ________.

A) franchisee; franchisor

B) manager; entrepreneur

C) franchisor; franchisee

D) entrepreneur; manager

E) entrepreneur; small business owner

22) A small business is often defined as having fewer than ________ employees, as well as being independently owned and operated.

A) 500

B) 400

C) 300

D) 200

E) 100

23) Paige independently owns and operates HiZ Inc., a company with 22 employees. She manages aggressively and expects rapid sales and profit growth. Paige's company is considered a(n) ________ venture.

A) entrepreneurial

B) intrapreneurial

C) franchise

D) small business

E) dependent

24) ________ create new independent businesses with the benefit of corporate support.

A) Corporate managers

B) Intrapreneurs

C) Observers

D) Franchisors

E) Franchisees

25) Suzette's husband told her, "I admire your boldness, but I'm not sure that you should open that business. I've heard that entrepreneurs are ________." Suzette replied, "That's a common myth. In fact, entrepreneurs take very careful, calculated risks and are not afraid to act on those decisions."

A) inventors

B) gamblers

C) promoters

D) planners

E) investors

26) Entrepreneurs experience stress, but they also have high job satisfaction. They tend to be ________ healthy and ________ likely to retire than those who work for others.

A) less; more

B) more; more

C) more; less

D) less; less

E) equally; equally

27) Entrepreneurs start their own firms for all of the following reasons EXCEPT the

A) challenge.

B) profit potential.

C) enormous satisfaction.

D) opportunity to manage other people.

E) hope that lies ahead.

28) Ramon, I believe that you will succeed," said Juan, his mentor. "When an entrepreneur is contemplating a new business, the very first step is to have ________. You are on the right track."

A) a great idea

B) financial capital

C) a good location

D) family support

E) investors

29) In the context of successful business models for e-commerce, sites that pay commissions to other sites to drive business to their own sites involve the ________ model.

A) transaction fee

B) advertising support

C) intermediary

D) affiliate

E) subscription

30) In the context of successful business models for e-commerce, the ________ model involves charging monthly or annual fees for website visits or access to website content.

A) transaction fee

B) advertising support

C) intermediary

D) affiliate

E) subscription

31) RanMark Corp. brings buyers and sellers together and charges a commission for each sale. RanMark Corp. is a(n) ________ business model.

A) transaction fee

B) advertising support

C) intermediary

D) affiliate

E) subscription

32) The side street effect refers to

A) the appearance of unexpected opportunities as one follows a plan.

B) a corporate spin-off not sanctioned by the corporation.

C) using corporate resources to pursue entrepreneurial activities.

D) the entrepreneurial ventures that are marginally successful but never experience significant growth.

E) the lack of focus seen in many entrepreneurs.

33) ________ is an entrepreneurial alliance between an innovator who has created at least one successful store and wants to grow and a partner who manages a new store of the same type in a new location.

A) Franchising

B) An initial public offering

C) Bootlegging

D) The subscription model

E) The affiliate model

34) Tonda spotted, created, and exploited a(n) ________ for ride-sharing services for elderly customers that big companies had ________ and, in so doing, she captured the market with her simpler, cheaper, more accessible, and more convenient services.

A) business incubator; monopolized

B) opportunity; avoided

C) intrapreneurship; avoided

D) opportunity; rejected

E) intrapreneurship; failed at

35) A new technique for extracting oil and gas—called "fracking"—spurred an economic boom in the formerly sleepy town of Oilville, located in what had been thought to be a depleted oil field. Workers swarmed into the town, and Karen started a laundry service to meet their needs. In this case, Karen had spotted an entrepreneurial opportunity created by the new extraction technique, or a ________, which in turn created an oil boom, or a(n) ________.

A) technological discovery; economic dislocation

B) technological discovery; government initiative

C) government initiative; lifestyle change

D) technological discovery; lifestyle change

E) calamity; economic dislocation

36) ________ helps an entrepreneur succeed.

A) Encouragement of centralization

B) Tolerance of ambiguity and uncertainty

C) Risk aversion

D) Maintenance of the status quo

E) Fending off constructive criticism

37) Beane Inc., an entrepreneurial venture, does not have any distinctive services when compared with the well-established competitors in the same field, and the business will require a sizable investment. In which quadrant of the entrepreneurial strategy matrix will the venture be placed?

A) high innovation/low risk

B) high innovation/high risk

C) low innovation/low risk

D) low innovation/high risk

E) medium innovation/low risk

38) Most small business ventures are located in the ________ quadrant of the entrepreneurial strategy matrix.

A) upper left

B) low risk

C) upper right

D) lower right

E) high innovation

39) In the context of the entrepreneurial strategy matrix, a novel product idea that involves a large financial investment would be described as

A) high innovation/low risk.

B) high innovation/high risk.

C) low innovation/low risk.

D) low innovation/high risk.

E) low innovation/no risk.

40) In the context of the entrepreneurial strategy matrix, a ________ is most likely to have the highest risks and returns.

A) clothing outfit

B) tax preparation service

C) new passenger vehicle

D) new restaurant

E) lawn mowing service

41) Identify which is true of entrepreneurial ventures.

A) Companies offering mundane products cannot hope to gain competitive advantage.

B) For start-ups, failure is an exception rather than the rule.

C) Successful companies do not always require a cutting-edge technology or an exciting new product.

D) Acquiring venture capital is essential to the success of all start-up businesses.

E) The odds of survival of an entrepreneurial venture worsen if it grows to at least 10 or 20 people.

42) The odds of survival for a new venture improve if

A) there is an economic downturn.

B) there is novelty.

C) it is small.

D) it grows to at least 10 or 20 people.

E) it has revenues of $1 million.

43) ________ is a benefit of business incubators.

A) An information silo

B) High security

C) Provision of venture capital

D) A shared cost

E) Guaranteed profitability

44) What is the role of the economic environment in the success of entrepreneurial ventures?

A) Increases in the money supply and the supply of bank loans lead to improved prospects and increased sources of capital.

B) Entrepreneurial success is not affected by the economic environment; a good idea will prevail in all external conditions.

C) Entrepreneurial success is affected only by the talent and behavior of individuals, not by the economic environment.

D) Downturns in the economic environment offer no opportunity for entrepreneurial success.

E) A robust economy and the resulting increase in credit and demand boost the rate of new business formation, but a troubled economy has little effect on new ventures.

45) What is the role of business incubators?

A) They provide new and small businesses with information silos.

B) They protect consumers from fraud.

C) They provide enhanced wellness benefits to employees of large businesses.

D) They provide a protected environment for new and small businesses.

E) They provide opportunities for exponential growth without competition.

46) Entrepreneurs are NOT

A) tolerant of stress.

B) risk takers.

C) able to resolve problems.

D) making only safe decisions.

E) risk managers.

47) Business incubators, often located in industrial parks or abandoned factories, are

A) protected environments for new, small businesses.

B) protected environments for established, large businesses.

C) unprotected environments for established, small businesses.

D) unprotected environments for new, large businesses.

E) unprotected environments for commercial businesses.

48) Ernesto decides to open a Mexican restaurant serving street tacos and fajitas. This will be one of several such restaurants in his small town. This entrepreneurial venture, like most small businesses, is characterized by ________ risk and ________ innovation.

A) moderate; moderate

B) moderate; high

C) low; high

D) high; low

E) high; high

49) In the context of common management challenges, leadership deteriorates into micromanagement when entrepreneurs fail to

A) train a successor.

B) monitor financial performance.

C) delegate work.

D) enjoy work.

E) adapt to an information silo.

50) The success of an entrepreneurial venture is often jeopardized by the death of its founder. ________ is an important measure to minimize this problem.

A) Conservative use of funds

B) Succession planning

C) Record keeping

D) Decreased delegation

E) Going public

51) ________ offer a way for a business to raise capital through federally registered and underwritten sales of shares in a company.

A) Initial public stock offerings

B) Venture capital funds

C) Skunkworks

D) Bootleggings

E) Franchises

52) In order for family-managed businesses to survive and prosper, management guru Peter Drucker advised them to

A) refrain from having someone outside the family help plan succession.

B) discontinue hiring outsiders as they are more objective.

C) fill at least one key position with a nonfamily member.

D) offer initial public stock offerings as soon as possible.

E) tolerate mediocre performance by family members.

53) According to Peter Drucker, which of the following statements is true of managing a family business?

A) Mediocre performance by family members employed in the company may be tolerated.

B) The business should be aggressively managed.

C) The business should not hire outsiders as they contribute expertise the family might not have.

D) Someone outside the family and the business should help plan succession.

E) The business should "go public" as soon as possible.

54) Entrepreneurs, in part because they are very busy, often fail to use ________, resulting in inadequate margins to support growth.

A) formal control systems

B) a forward-thinking orientation

C) an opportunity analysis

D) venture capital

E) total quality management systems

55) Pierce's new business rocketed upwards in its first year, but its progress stagnated thereafter. His mentor noted that Pierce was having a hard time "letting go"—giving his two best employees responsibility to take on assignments that they were obviously ready to handle. In fact, Pierce was needlessly and constantly "looking over their shoulder" to check their work. As evidenced by these reasons, Pierce's entrepreneurial venture was being threatened by his failure to

A) delegate.

B) plan.

C) go public.

D) use formal control systems.

E) properly use funds.

56) Robinson Linens has made the decision to "go public" through an initial public stock offering (IPO). Robinson Linens undertook this process to

A) reduce capital, reduce debt, improve the balance sheet, and enhance net worth.

B) raise capital, reduce debt, improve the balance sheet, and dissolve net worth.

C) raise capital, reduce debt, improve the balance sheet, and enhance net worth.

D) raise debt, raise capital, improve the balance sheet, and enhance net worth.

E) raise debt, reduce capital, improve the balance sheet, and enhance net worth.

57) In the context of starting an entrepreneurial venture, the first formal step is to

A) secure the finances.

B) write a business plan.

C) conduct an opportunity analysis.

D) get others to support one's ideas.

E) hire the right people.

58) A description of the good or service, an assessment of the opportunity, an assessment of the entrepreneur, and specification of activities and resources needed to translate your idea into a viable business, and your source(s) of capital together make up a(n)

A) value chain.

B) control system.

C) opportunity analysis.

D) business audit.

E) organization chart.

59) The purpose of an opportunity analysis is to

A) obtain financing.

B) negotiate agreements with suppliers.

C) excite potential customers.

D) specify resources needed to translate an idea into a viable business.

E) work out the details of marketing, finance, and manufacturing.

60) A(n) ________ describes all the elements involved in starting a new venture.

A) business plan

B) control system

C) value chain

D) initial public stock offering

E) organization chart

61) A function of a business plan is to

A) improve the balance sheet and enhance net worth.

B) raise capital through federally registered shares of the company.

C) improve credibility with customers and other stakeholders.

D) determine the viability of one's enterprise.

E) create a long-term relationship with an investment banking firm.

62) A(n) ________ often devotes too much attention to financial projections while neglecting other important information that is important to investors.

A) business audit

B) accounting analysis

C) business plan

D) value chain

E) business incubator

63) ________ is/are a key factor that an entrepreneur should have clearly thought out. It will include a competitive advantage that can be defended, with a focus on the customer.

A) Opportunity

B) Risk and reward

C) People

D) Competition

E) Context

64) ________ comes from people's judgment of a company's acceptance, appropriateness, and desirability, generally stemming from company goals and methods that are consistent with societal values.

A) Social capital

B) Bootlegging

C) Legitimacy

D) The strategic window

E) The side street effect

65) How can an entrepreneur generate legitimacy?

A) by avoiding constructive criticism

B) by being risk-averse

C) by removing standards established by credentialing associations

D) by visibly conforming to expectations created by governments

E) by maintaining the status quo

66) In the context of key planning elements, which of the following is true of what venture capital firms consider important for an entrepreneurial venture?

A) They believe that a strong marketing campaign is the best for an entrepreneurial venture.

B) They believe that a good quality product is the best bet for an entrepreneurial venture.

C) They believe that the venture with the highest projected profit is the best.

D) They believe that the greater the strength of a venture, the better it is.

E) They believe that what counts is a person's ability to execute an idea.

67) ________ is a competitive advantage in the form of relationships with other people and the image other people have of an entrepreneur.

A) Social capital

B) Community standing

C) Legitimacy

D) Quality of life

E) Opportunity analysis

68) Jake has asked Len to be a primary investor in his entrepreneurial start-up. Len first wants to carefully study Jake's business plan, in particular these key factors:

A) the clients, the opportunity, the competition, the context, and the risk/reward.

B) the people, the opportunity, the competition, the context, and the risk/reward.

C) the clients, the other investors, the suppliers, the context, and the opportunities/threats.

D) the people, the other investors, the suppliers, the context, and the opportunities/threats.

E) the people, the threats, the partners, the context, and the risk/reward.

69) Chris's new business is failing. In desperation, he asks his most experienced investor, Gerardo, for advice. Gerardo says, "Chris, I'm glad you asked. As a(n) ________ investor, I've seen other businesses struggle, and I believe that I can help your business recover. In fact, I'll probably be willing to make further investments if I can have some say-so in what steps you take to recover."

A) sophisticated

B) nonprofessional

C) affiliate model

D) intermediary model

E) junior

70) Susan has been planning to open a child care center and has been asked by the small business center to create a document that includes the market, strategies, and future directions. This document is a(n)

A) initial public offering.

B) income statement.

C) balance sheet.

D) business plan.

E) opportunity analysis.

71) ________ is the first step toward building organizational support for an idea that involves explaining the idea and seeking approval to look for wider support.

A) Making cheerleaders

B) Bootlegging

C) Horse trading

D) Clearing the investment

E) Getting the blessing

72) The stage for building support for an idea, or ________, means guaranteeing a project's technical and political feasibility, often with a formal presentation to higher management.

A) cheerleading

B) bootlegging

C) horse trading

D) clearing the investment

E) getting the blessing

73) Bill, let me give you some advice," said his mentor, Ted. "Before seeking formal approval for your project from higher levels of management, spend some time getting support from your peers, or as it is often called

A) making cheerleaders.

B) bootlegging.

C) horse trading.

D) clearing the investment.

E) getting the blessing.

74) Elena, a manager, has a new project idea. Before she begins building support for her idea, she begins by ________, which is explaining the idea to her boss to get his approval to seek wider support.

A) making cheerleaders

B) bootlegging

C) horse trading

D) clearing the investment

E) gettting the blessing

75) Blanche works as a respected senior engineer for a large manufacturer of pharmaceutical process equipment. Several researchers within the company have discovered an innovative way to repackage pharmaceutical drugs. The company has given Blanche the opportunity and responsibility to lead a fully funded project team for 12 months to develop this idea. She is excited to lead this ________ team.

A) spin-off

B) skunkworks

C) bootlegging

D) social capital

E) venture capital

76) Informal efforts, as opposed to official job assignments, in which employees work to create new products and processes of their own choosing and initiative refer to

A) spin-offs.

B) skunkworks.

C) bootlegging.

D) horse trading.

E) sponsorship.

77) Syd works as a technician for a large manufacturer of biomedical equipment. He has discovered a technique to produce composite materials more efficiently. The company encourages its employees to pursue new ideas on company premises. Syd's company supports

A) bootlegging.

B) skunkworks.

C) spin-offs.

D) delegation.

E) corporate espionage.

78) An organization that resists entrepreneurial initiative

A) faces the risk of overrelying on a single project.

B) may lose its ability to adapt when conditions require change.

C) spreads intrapreneurial efforts over many small-scale projects.

D) represents the process of changing the status quo.

E) may fail while awaiting the completion of one large, innovative project.

79) The most dangerous risk in intrapreneurship is that of

A) spreading intrapreneurial efforts over too many projects.

B) overrelying on a single large project.

C) working on too many underfunded projects.

D) maintaining the status quo.

E) engaging in prospects that are too risky.

80) In the context of entrepreneurial orientation, ________ occurs when an organization is willing to commit significant resources and perhaps borrow heavily to venture into the unknown.

A) independent action

B) innovativeness

C) risk taking

D) competitive aggressiveness

E) proactiveness

81) In the context of entrepreneurial orientation, an organization with a tendency of ________ grants individuals and teams the freedom to exercise their creativity, champion promising ideas, and carry them through to completion.

A) independent action

B) innovativeness

C) risk taking

D) competitive aggressiveness

E) proactiveness

82) Noah has a new idea to revamp the mail processing at his large company. His boss tells him to go for it and report back on the barriers and efficiencies of his idea, thereby endorsing the ________ approach.

A) job sharing

B) spinoff

C) skunkworks

D) job shadowing

E) benchmarking

83) Meghan, like ForwardPlan, Inc., the company that employs her, has an entrepreneurial orientation. Recently, she was delighted to learn that ForwardPlan executives had anticipated a future market, recognized their lack of a technology to exploit that market, and had acquired exclusive rights to license a technology that would, in two years, put them in a premier competitive position in that market. Meghan admires her employer's ________ in anticipating future problems and opportunities.

A) competitive aggressiveness

B) innovativeness

C) proactiveness

D) independent action

E) dependent action

84) If a company is striking fast to beat competitors to the punch, tackle them head-to-head, and analyze and target competitors' weaknesses, then they are practicing

A) opportunity analysis.

B) competitive aggressiveness.

C) proactiveness.

D) innovativeness.

E) ethical patterns.

85) Companies should tolerate, and even encourage, informal efforts in which employees work to create new products and processes of their own choosing and initiative. Such efforts are known as

A) bootlegging.

B) entrepreneurial orientation.

C) competitive aggressiveness.

D) risk-taking.

E) horse trading.

86) All of the following steps are needed to build support for a project EXCEPT

A) horse trading.

B) making cheerleaders.

C) clearing the investment.

D) venture capitalists.

E) getting a blessing.

87) Sabrina, Vice President of Development for a large automobile manufacturer, has developed a radically different marketing strategy. Before she presents the idea to the CEO, she first consults with the other vice presidents to get their input and support. This step in building support for an idea is known as

A) horse trading.

B) making cheerleaders.

C) getting the blessing.

D) clearing the investment.

E) persistence and logic.

88) In building support for your idea, you might engage in horse trading. This involves

A) ensuring that your immediate boss understands and approves your idea.

B) offering promises of payoffs from the project in return for support, time, money, and other resources that peers and others contribute.

C) ensuring that your peers back your idea before you commit to it.

D) engaging in informal work of your own choosing and initiative.

E) making a formal presentation to higher-level managers to ensure that the idea is feasible.

89) Organizations with an entrepreneurial orientation are more likely to be successful, particularly for

A) conducting business internationally.

B) low-reward (low-profit) businesses.

C) conducting business domestically.

D) low-risk businesses.

E) maintaining the status quo.

90) Organizations that encourage ________ face an obvious risk: the effort can fail.

A) entrepreneurship

B) intrapreneurship

C) bootlegging

D) innovativeness

E) benchmarking

91) Your roommate excitedly tells you that she has decide to become an entrepreneur. Her primary reason, she says, is that entrepreneurship is a perfect match for her because she is a gambler by nature. Unfortunately, your roommate has described one of the myths of entrepreneurship. In fact, entrepreneurs are not gamblers. They take careful, calculated ________ and are not afraid to act on their ________.

A) positions; facts

B) measurements, results

C) risks; hunches

D) risks, decisions

E) measurements; decisions

92) "As a budding entrepreneur 40 years ago, I naively looked forward to being my own boss and ________," said Joe Martini, CEO of Martini & Sons, to his son, Buddy. "I didn't realize that, in fact, I would have to answer to many ________, including partners, customers, suppliers, creditors, employees, and families."

A) independent; stakeholders

B) dependent; promoters

C) independent; promoters

D) independent; social capitalists

E) dependent; stakeholders

93) "There are many good reasons why you might want to go into business for yourself," said Dr. Peter Parillo to his PhD candidate, Ram Yadav. "But these good reasons do not include

A) seeking challenge, profit potential, and enormous satisfaction."

B) watching the market embrace your ideas and products."

C) seeking power and control over others."

D) finding one's progress or ideas blocked at big corporations."

E) finding conventional paths to economic success closed."

94) "I am so proud of my former marketing students," said Dr. Sarah Markham. "So many have become successful entrepreneurs because they were able to spot, create, or exploit ________ in a variety of ways."

A) adventures

B) opportunities

C) risks

D) gambles

E) benchmarking targets

95) "My niche is designing smartphone apps for senior citizens, a growing market due to the aging of the Baby Boomer generation," said entrepreneur programmer Rich Webb. "Examples include apps for helping a shopper find his car in a parking lot, for keeping track of medications, and for monitoring blood pressure." Rich is developing entrepreneurial opportunities based upon events and trends as they unfold—in this case, due to

A) lifestyle and taste changes.

B) demographic changes.

C) economic dislocations.

D) calamities.

E) government initiatives and rule changes.

96) The recovery and rebuilding efforts on the Texas Gulf Coast due to Hurricane Harvey's devastation will require years. Many volunteers and companies have temporarily moved into the area to provide help. To provide housing for workers for these organizations, entrepreneur Stu Lester developed Temp-Lodging Corporation. Stu's business opportunity was created as a result of

A) a technological discovery.

B) demographic changes.

C) an economic dislocation.

D) a calamity.

E) government initiatives and rule changes.

97) Personalized medicine separates people into different groups, with treatments being tailored to the individual patient based on their predicted response or risk of disease. Personalized medicine is enabled by new diagnostic and monitoring approaches that provide understanding of the molecular basis of disease, particularly genomics. Entrepreneurial opportunities for software and hardware that arise in personalized medicine are made possible by

A) technological discoveries.

B) lifestyle changes.

C) demographic changes.

D) government rule changes.

E) economic dislocations.

98) Josh uses his father's yard equipment to start up a lawn mowing business during summer break from school, to earn enough money to buy books in the fall. According to the entrepreneurial strategy matrix, Josh's business can be described as

A) low innovation/high risk.

B) low innovation/low risk.

C) high innovation/low risk.

D) high innovation/high risk.

E) high innovation/no risk.

99) Adriana is seeking investors for her start-up firm to develop robotic rovers to collect and analyze dust samples from the surface of the planet Mercury. According to the entrepreneurial strategy matrix, Adriana's business can be described as

A) low innovation/high risk.

B) low innovation/low risk.

C) high innovation/low risk.

D) high innovation/high risk.

E) high innovation/no risk.

100) José is opening up a family diner at a busy intersection along an interstate highway. According to the entrepreneurial strategy matrix, José's business can be described as

A) low innovation/high risk.

B) low innovation/low risk.

C) high innovation/low risk.

D) high innovation/high risk.

E) high innovation/no risk.

101) Karen Stemler, CEO of the parent company of Hamburgers-To-Go, the largest fast food franchise in the world, has approved an expenditure of $1.5 million to develop a software app for remote custom "design" and ordering of burgers. According to the entrepreneurial strategy matrix, Karen's software app venture can be described as

A) low innovation/high risk.

B) low innovation/low risk.

C) high innovation/low risk.

D) high innovation/high risk.

E) high innovation/no risk.

102) Eliza Reyes seeks to open a new apparel business. She has completed the first formal stage of the planning process—the opportunity analysis. In so doing, she has

A) prepared for an initial public offering (IPO).

B) performed a strengths/weaknesses/opportunities/threats (SWOT) analysis.

C) developed a means to employ formal control systems.

D) described the service, assessed the opportunity, assessed herself, and specified the activities and resources (including funding) needed to move the idea to a viable business.

E) created a business plan.

103) Julie Raymond has conducted an opportunity analysis of her proposed new entrepreneurial venture. Based upon this analysis, she believes that her idea is viable. Julie will now proceed to the next step of the planning process for entrepreneurial ventures, that is, a(n)

A) environmental analysis.

B) SWOT analysis.

C) promotional plan.

D) operational plan.

E) business plan.

104) Jacob has been developing contacts and heightening his profile in his community; that is, he has been creating his ________. He knows that nonfinancial resources will be crucial to the success of his entrepreneurial venture.

A) social capital

B) side street effect

C) small business

D) start-up capital

E) demographic change

105) Fred's boss told him, "This one-year confidential project is a great intrapreneurial opportunity for you. You will be teamed with some of the best minds in the company and you and your team members will earn a significant reward if you develop the proposed new, innovative product. And, on top of that, I'll hold your current job open for you if you decide that you want it after the project is over. Not many professionals have an opportunity to work on a(n) ________ as I've described. Congratulations!"

A) IPO

B) skunkworks

C) business incubator

D) side street effect

E) business plan

106) Distinguish between a small business and an entrepreneurial venture.

107) What are some of the reasons people become entrepreneurs?

108) Describe the differences between entrepreneurs, inventors, promoters, and managers.

109) In the context of the opportunity for starting a business, what are some of the possibilities that entrepreneurs can exploit?

110) What are the five business models that have proven successful for e-commerce?

111) Describe some of the characteristics that make a person more likely to succeed as an entrepreneur.

112) In the context of the entrepreneurial strategy matrix, describe the four kinds of new ventures.

113) Describe the major management challenges associated with entrepreneurship.

114) Describe the five key planning elements used in developing the best business plans.

115) Describe the five tendencies that determine entrepreneurial orientation.

116) Compare and contrast entrepreneurs and intrapreneurs.

117) How are entrepreneurs and inventors different? Give an example.

118) Discuss how an entrepreneur decides on an economic opportunity.

119) List and describe the differences between the transaction fee model and the intermediary model using examples.

120) Describe the characteristics of a successful entrepreneur.