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mana 3325 test 1
textbook site quizes for ch 1-4
Question | Answer |
---|---|
Entrepreneurial behavior typically requires | willingness to take risks, drive, and creativity |
_____ is the position of a firm on a continuum ranging from highly conservative to highly entrepreneurial. | Entrepreneurial intensity |
What is the most common reason given for why people choose to become entrepreneurs? | To be their own boss |
Some entrepreneurs report that the financial rewards associated with entrepreneurship can be bittersweet if they are accompanied by ________. | losing control of the firm |
Some characteristics shared by successful entrepreneurs are | passion, product/customer focus., tenacity despite failure. |
What are some common myths about entrepreneurs? | Entrepreneurs are born, not made, Entrepreneurs are gamblers, Entrepreneurs love the spotlight |
What do you call small firms that yield a level of income for their owner that is similar to what they would earn when working for an employer? | salary-substitute firm |
_____ of the 27.5 million businesses in the Unites States are owned by women, minorities, seniors, and young people. | A growing number |
Influence on innovation and job creation best typifies entrepreneurial firms' ________. | economic impact |
The entrepreneurial process is comprised of what steps | deciding to become an entrepreneur, managing and growing the entrepreneurial firm, moving from an idea to an entrepreneurial firm |
T/F According to the textbook In the United States, approximately one-third of new firms fail within their first four years. | True |
T/F Entrepreneur and inventor mean essentially the same thing | False |
T/F Entrepreneurship only pertains to starting new businesses, not existing firms | False |
T/F The average entrepreneur does NOT make more money than someone with a similar amount of responsibility in a traditional job. | True |
T/F The number one characteristic shared by successful entrepreneurs is creativity. | False |
T/F Execution intelligence refers to developing a business model, putting together a new venture team, raising money, establishing partnerships, managing finances and leading and motivating employees. | True |
T/F According to research, most entrepreneurs are born, not made | False |
T/F Only individuals that thrive on taking big risks have the right personality to be an entrepreneur | False |
T/F After winning a medal for diving in the Olympics, Cheryl starts a diving instruction school. This is an example of a lifestyle firm. | True |
T/F In recent years, the fastest growing areas for women-owned firms have been in cosmetology, fashion merchandising, and hair salons. | False |
What are the steps of the entrepreneurial process? | Step 1. Deciding, Step 2. Developing ideas, Step 3. Moving idea to an entrepreneurial firm, Step 4. Managing and growing firm |
What are some of entrepreneurship's importance to the economy and society as a whole: | :-Innovation,-Job creation, improve society, assist larger firms. |
What are some of entrepreneurship's importance to society | Improvements in healthcare, Help people be more productive, Products and services that make our lives easier, Products and services that entertain us, |
What are some of entrepreneurship's importance to Larger firms | :Provide Components, Efficiency, Partnering |
_____ is a favorable set of circumstances that creates a need for a new product, service, or business. | An opportunity |
_____, _____, _____ are some ways to identify an opportunity | observing trends, solving a problem, finding gaps in the marketplace. |
Which environmental force pertains most to a trend such as the continual increase in the use of cellphones? | social forces |
Entrepreneurs can recognize problems and find ways to solve them through steps such as____, _____, & _____ | problems in emerging trends, framing a problem differently than it's been thought of before, and then proposing an appropriate solution, experiencing a problem in one's own life, and then realizing the solution represents a business opportunity. |
_____, _____, & _____ are characteristics shared by those who excel at recognizing opportunities. | prior experience, entrepreneurial alertness, social contacts and ties with others. |
_____ is the process of generating a novel or useful idea. | Creativity |
What is the first stage of the creativity process? | Preparation |
Which technique for generating ideas depends on freewheeling, the carefree expression of ideas free of rules or restraints? | Brainstorming |
Focus groups usually work best as a ________. | follow up to brainstorming |
An underutilized source of information for generating business ideas is ________. | the library |
T/F An idea is a favorable set of circumstances that creates a need for a new product, service, or business. | False |
T/F Window of opportunity relates to the time period in which a firm can realistically enter a new market | True |
T/F As an entrepreneur, it is important to be aware of changes in trends | True |
T/F Major retailers that serve large groups of customers with similar needs by competing mainly on price would be an example of finding gaps in the marketplace | False |
T/F Often, entrepreneurs are able to pursue an opportunity even before it is recognized as an opportunity | False |
T/F Entrepreneurial alertness is largely a learned skill. | True |
T/F It is more likely that an entrepreneur will get a business idea through a weak-tie relationship (infrequent interaction between casual acquaintances), than through a strong-tie relationship (frequent interaction between friends and co-workers). | True |
T/F Studies show that less than a quarter of start-up ideas emerge from a person's prior work experience | False |
T/F Brainstorming sessions are structured discussions that stay focused on one idea until an opportunity is identified. | False |
T/F Much of the effectiveness of a focus group session depends on the careful recruiting of over 20 participants. | False |
What are the essential qualities of an opportunity? | -Attractive, Durable, Timely, Anchored in or relates to a product or service that creates or adds value for its user |
Researchers have identified several characteristics that tend to make some people better at recognizing opportunities than others. | prior experience, better at sizing up the marketplace, extensive social and professional contacts, and creativity |
The most effective businesses emerge from a process that includes ____, ____, & _____ | writing a business plan, testing the feasibility of the idea, recognizing a business idea. |
______ is an example of primary research | administering surveys |
_____ is an assessment of the overall appeal of the product or service being proposed. | Product/service feasibility analysis |
_____, ______, & ______ are normally included in the concept test | a description of the product or service, the intended target market, the benefits of the product or service. |
_____, ______, & ______ are suitable questions to ascertain Product/Service Desirability | Does it make sense, Is this a good time to introduce the product or service in the market, Are there any fatal flaws in the product or service's basic design or concept? |
_____, ______, & _____are characteristics of attractive industries | the industry is young, the industry is fragmented, the industry has high operating margins. |
_____ is conducted to determine whether a proposed business has sufficient management expertise, organizational competence, and resources to successfully launch its business. | Organizational feasibility analysis |
The ability to obtain intellectual property protection on key aspects of the business is most likely an issue related to _____. | resource sufficiency |
What is the final step of a comprehensive feasibility analysis? | financial feasibility analysis |
The projected financial return to assess whether the venture is financially feasible considers _____, ______, & _____ | amount of capital invested, existing alternatives for the money being invested, risks assumed in launching the business. |
T/F The process of determining if a business idea is viable is the development of a business plan | False |
T/F Many entrepreneurs make the mistake of identifying a business idea and then jumping directly to writing a business plan to describe and gain support for the idea. | True |
T/F A concept test is the first physical depiction of a new product. | False |
T/F Some entrepreneurs conduct their initial product/ service feasibility analysis by simply talking about their product or service idea with others before deciding to move forward | True |
T/F Three important ways to accumulate evidence that there will be healthy demand for a product or service are with library, Internet and gumshoe research. | True |
T/F An industry is a group of firms producing a similar product or service | True |
T/F A target market is a place within a larger market segment that represents a broader group of customers with different needs | False |
T/F Two of the most important factors related to management prowess are passion for the business idea and understanding the markets in which the firm will participate. | True |
T/F The adequacy of the labor pool poses a resource sufficiency issue | True |
T/F For feasibility analysis, it is not typically required that an entrepreneur do a rigorous financial assessment | True |
What are the major components of a comprehensive feasibility analysis? | Product/service feasibility analysis, Industry/market feasibility analysis, Organizational feasibility analysis, Financial feasibility analysis |
What is the four step process effective businesses emerge from | Recognizing a business idea, Testing the feasibility of the idea, Writing a business plan, Launching the business |
A business plan is important for the following reasons ____, _____, & _____ | forces you to systematically think through each aspect of a new venture, provides an investor with something to react to, is a selling document that enables a company to present itself to potential suppliers and business partners. |
Which type of business plan is meant primarily for an internal audience? | operational business plan |
Why is the executive summary perhaps the most important section of the business plan? | If this section of the plan fails to attract an investor's interest, he or she is unlikely to read the remainder of the plan. |
What does the business plan call noteworthy or significant events | a milestone |
In which section of a business plan should the results of the feasibility analysis typically be presented? | Company Description |
In which section of a business plan should issues like facilities and equipment be discussed? | Operations Plan |
What are pro forma financial statements | forward-looking financial projections |
Most business plan writers interpret a firm's pro forma financial statements through ________. | ratio analysis |
____, _____, & _____ are commonly found in the appendix of a business plan | resumes of top management, photo, product prototype diagrams. |
What characterizes the first meeting to present the business plan to investors? | The meeting typically lasts about an hour: 20-minutes for a PowerPoint presentation, and 40-minutes for questions. |
T/F A full business plan should be written at the beginning of the entrepreneurial process | False |
T/F A business plan is important not just for outside investors and suppliers, but also current and potential employees. | True |
T/F The process of writing a business plan is NOT as valuable as the plan itself. | False |
T/F As it is good to ensure that a business plan looks as professional as possible, a consultant or outside advisor should be the primary author of the plan. | False |
T/F Because the executive summary appears at the beginning of the business plan, it should be created before the rest of the plan is created. | False |
T/F A Board of Advisers has legal responsibility for the firm and gives binding advice | False |
T/F The organizational chart should be presented in a graphical format if possible. | True |
T/F The pro forma financial statements are the heart of the financial section of a business plan | True |
T/F The appendix of a business plan should NOT contain any information that is vital to the plan | False |
T/F Whether at an initial meeting with investors, or on subsequent occasions, an investor who seems particularly negative may benefit the entrepreneur. | True |
Why is a business plan important? | A business plan forces you to think through every aspect of the new venture, and it communicates the merits of a new venture investors or bankers |
The executive summary is _______ to the business plan, and as such, is the ____ important section of the plan. | it is meant to be a “summary” of the plan itself, it is arguably the “most” important section of the business plan if it fails the reader is unlikely to read the remainder of the plan. |