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Related Flashcards
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Cards In This Set
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71. There is a difference between a small business and an entrepreneurship venture.
True False |
TRUE
Entrepreneurship occurs when an enterprising individual pursues a lucrative opportunity. A small business is defined as having fewer than 100 employees, being independently owned and operated, not dominant in its field, and not characterized by many innovative practices. |
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72. A small business is often defined as having fewer than 100 employees, as well as being independently owned and operated.
True False |
TRUE
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73. 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.
True False |
TRUE
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74. Successful entrepreneurs anticipate difficulties and cushion their business to help it weather setbacks.
True False |
TRUE
Entrepreneurs are realistic about risk. |
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75. Initial public stock offerings offer a way to raise capital through federally registered and underwritten sales of shares in the company.
True False |
TRUE
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76. Social capital is a competitive advantage in the form of relationships with other people and the image other people have of you.
True False |
TRUE
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77. Today's large corporations are passive bystanders in the entrepreneurial explosion.
True False |
FALSE
Large corporations are more than passive bystanders in the entrepreneurial explosion. Even established companies try to find and pursue new and profitable ideas. |
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78. Bootlegging refers to official job assignments in which employees work to create new products and processes of their own choosing.
True False |
FALSE
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79. 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.
True False |
TRUE
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80. Ed McAlister was a manager at DRA Corporation, a company that produced household appliances. Ed had many innovative ideas for the company. He became frustrated and left the corporation to pursue his own business. His new business venture could be considered
A. entrepreneurship. B. a spin-off. C. corporate espionage. D. a corporate skunkworks. E. corporate theft. |
A. entrepreneurship.
Independent entrepreneurs are individuals who establish a new organization without the benefit of corporate support. |
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81. Lark recently started her own business. She has nearly recreated a company she worked for when she was in college, except that she has great business acumen and has been able to run the company much more efficiently and thus profitably. Lark would best be classified as a
A. promoter. B. entrepreneur. C. manager/administrator. D. intrapreneur. E. inventor. |
C. manager/administrator.
According to Figure 7.1, successful entrepreneurs are innovators and also have good knowledge and skills in management, business, and networking. In contrast, manager-administrators may be great at ensuring efficient operations but aren't necessarily innovators. |
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82. When creating a new business one should start with
A. an untapped market. B. a product. C. a great idea. D. good timing. E. social responsibility. |
C. a great idea.
Many entrepreneurs and observers say that in contemplating your business, you must start with a great idea. |
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83. Howard Berke started Konarka Technologies to create solar cells in response to rising oil prices, which is an example of what category of possibilities when spotting opportunities?
A. Economic dislocations B. Demographic changes C. Lifestyle and taste changes D. Calamities E. Government initiatives and rule changes |
A. Economic dislocations
Rising oil prices, which would be considered an economic dislocation, have spurred a variety of developments related to alternative energy or energy efficiency. |
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84. Laura is interested in running a business and wants to open the same type of store her sister has in another town, a Massage Bliss, a popular new chain. Laura wants to become a(n)
A. business incubator. B. innovator. C. franchisor. D. franchisee. E. intrapreneur. |
D. franchisee.
A franchisee is a partner in an entrepreneurial alliance who manages a new store of the same type in a new location according to the terms of the alliance with the franchisor. |
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85. Which of the following characteristic(s) contribute(s) to entrepreneurs' success?
A. Commitment and determination tolerance of risk, ambiguity and uncertainty B. Motivation to excel C. Leadership D. Opportunity obsession E. All of the above are characteristics that contribute to the entrepreneur's success. |
E. All of the above are characteristics that contribute to the entrepreneur's success.
Successful entrepreneurs have the following characteristics: commitment and determination, leadership, opportunity obsession, tolerance of risk, ambiguity, and uncertainty, creativity, self-reliance, and ability to adapt, and motivation to excel. |
