New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank

Preview (31 of 204 Pages)

100%

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 1 preview image

Loading page ...

1Student: ___________________________________________________________________________1.According to Thomas Friedman, his book titled "The World is Flat" refers to the convergence oftechnology and world events that are playing a role in bringing about significant changes in traditionalvalue chains.TrueFalse2.Gearing entrepreneurs for competitiveness is likely to hinder the process of entrepreneurialrevolution.TrueFalse3.Entrepreneurship training works well in schools of business and engineering, but it has not proven to beuseful in fields such as architecture, medicine, and life sciences.TrueFalse4.Entrepreneurship educators believe that expertise, wisdom, and knowledge are housed solely in thefaculty brain or in the library.TrueFalse5.The best entrepreneurship faculties are generally able to determine in advance who among their incomingstudents will be the most effective entrepreneurs.TrueFalse6.David Birch, an MIT researcher, found that new and growing smaller firms had little effect on theeconomy as a whole.TrueFalse7.According to the U.S. Small Business Administration's Office of Advocacy, small firms accounted for allof the net new jobs in 2010.TrueFalse8.A 2010 report by The Guardian Life Small Business Research Institute indicated that women-ownedbusinesses have been steadily decreasing over the past few decades.TrueFalse9.While various surveys of high school seniors indicate a strong interest in entrepreneurship, a 2004 GallupPoll showed that a large percentage of American parents would prefer that their children pursue a lessrisky career.TrueFalse10. According to a study conducted in 2006, the self-employed report the lowest levels of personalsatisfaction, challenge, pride, and remuneration.TrueFalse11. Research in the 1980s and 1990s found that since World War II, small entrepreneurial firms have beenresponsible for half of all innovation and a large percentage of all radical innovation in the UnitedStates.TrueFalse12. Studies indicate that smaller firms generate twice as many innovations per research and development(R&D) dollar spent as the established multinationals.TrueFalse13. Value creation is a linear process as it requires a short-term perspective.TrueFalse

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 2 preview image

Loading page ...

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 3 preview image

Loading page ...

14. Entrepreneurship will result in equal incomes among the masses.TrueFalse15. When the entrepreneurial process will take over, it will result in economic expansion and accompanyingsocial mobility.TrueFalse16. Rick, an entrepreneur, is in the process of selecting a manager for his new venture. To successfully runthe venture, who is he most likely to select?A. Fiona, who prefers minimal investment in human resourcesB. Saeed, who complements the needs of the ventureC. Garcia, who views change and ambiguity as detrimental for the ventureD. Maria, who has a different vision for the venture17. Which of the following is a critical factor in enhancing entrepreneurship?A. Restricting entrepreneurship at the regional levelB. Discouraging entrepreneurs from expressing competitivenessC. Reducing restrictions that block the flow of financeD. Removing programs based on "learning by doing"18. Which of the following is an entrepreneurial transformation that is changing the world?A. Entrepreneurship is now being discouraged in corporate America.B.Entrepreneurship topics and related issues are being removed from the curricula of business schools asthey are self-taught.C. Entrepreneurship is becoming a tool to create social and economic equalities.D. Entrepreneurship is becoming a dominant management model for running nonprofit businesses.19. What is the characteristic of entrepreneurship educators whose views and attitudes toward learning differradically from traditional academic approaches?A. They are faculty centric.B. They do not prefer a work-in-progress philosophy of teaching.C. They do believe that expertise, wisdom, and knowledge are housed solely in the faculty.D. They are likely to see their role as mentors, coaches, and advocates for students.20. What is the difference between entrepreneurial educators and traditional academicians?A. Entrepreneurial educators are faculty centric, whereas traditional academicians are student centric.B.Entrepreneurial educators follow a rigid training module, whereas traditional academicians follow amore hands-on philosophy.C.Entrepreneurial educators treat the learning process as solely occurring in the classroom, whereastraditional academicians treat it as more of an apprenticeship.D. Entrepreneurial educators are opportunity centric, whereas traditional academicians are faculty centric.21. Which of the following is true of new venture creation?A. It is process oriented and not result oriented.B. It gives importance to one's nationality.C. It creates economic and social mobility.D. It reduces competitiveness.22. At the heart of the entrepreneurial process is a(n):A. rigid organizational structure.B. resistance to ambiguity.C. innovative spirit.D. resistance to change.23. Who among the following is most likely to be called a philanthropist?A. Lydia, an entrepreneur, who acquires a foreign companyB. Ahmed, an entrepreneur, who exercises monopoly in the highly profitable oil and natural gas sectorC. Zainab, an entrepreneur, who funds the construction of a public school in her localityD. Eric, an entrepreneur, who sells his innovation in the aviation industry

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 4 preview image

Loading page ...

24. What is true of the majority of America's self-made entrepreneurs?A. They accumulated their wealth through luck.B. They are invisible to most Americans.C. They fit the media stereotype.D. They prefer social status to financial independence.25. Which of the following is a characteristic of private equity creation?A. It is a linear process.B. It requires a long-term perspective.C. It hinders entrepreneurship.D. It targets quick returns on investments made over a short period of time.26. _____ is becoming a dominant management model for running nonprofit businesses and in the emergingfield of social ventures.________________________________________27. _____ entrepreneurship means new venture creation.________________________________________28. _____ showed the highest rate of increase of any minority group in owning businesses according to theU.S. Census Bureau in 2007.________________________________________29. When successful entrepreneurs get involved in the nonprofit sector directly by offering strategicassistance, like long-term planning and leveraging relationships to identify additional resources andfacilitate partnerships, it is referred to as _____ philanthropy.________________________________________30. What is the impact of small firms in driving innovation in the United States?31. Briefly discuss the role of angel investors in the creation of new ventures.32. Briefly discuss the role of successful American entrepreneurs as philanthropists.

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 5 preview image

Loading page ...

33. Explain the four entrepreneurial transformations that are changing the world.34. How do entrepreneurial faculties drive the rapid explosion of entrepreneurship?35. Describe a typical American entrepreneur.

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 6 preview image

Loading page ...

1 Key1.(p. 05)According to Thomas Friedman, his book titled "The World is Flat" refers to the convergence oftechnology and world events that are playing a role in bringing about significant changes in traditionalvalue chains.TRUEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 01 #12.(p. 05)Gearing entrepreneurs for competitiveness is likely to hinder the process of entrepreneurialrevolution.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 01 #23.(p. 05)Entrepreneurship training works well in schools of business and engineering, but it has not proven tobe useful in fields such as architecture, medicine, and life sciences.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 01 #34.(p. 06)Entrepreneurship educators believe that expertise, wisdom, and knowledge are housed solely in thefaculty brain or in the library.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 01 #45.(p. 06)The best entrepreneurship faculties are generally able to determine in advance who among theirincoming students will be the most effective entrepreneurs.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 01 #56.(p. 07)David Birch, an MIT researcher, found that new and growing smaller firms had little effect on theeconomy as a whole.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 01 #67.(p. 08)According to the U.S. Small Business Administration's Office of Advocacy, small firms accounted forall of the net new jobs in 2010.TRUEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 01 #78.(p. 08)A 2010 report by The Guardian Life Small Business Research Institute indicated that women-ownedbusinesses have been steadily decreasing over the past few decades.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 01 #8

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 7 preview image

Loading page ...

9.(p. 08)While various surveys of high school seniors indicate a strong interest in entrepreneurship, a 2004Gallup Poll showed that a large percentage of American parents would prefer that their childrenpursue a less risky career.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 01 #910.(p. 09)According to a study conducted in 2006, the self-employed report the lowest levels of personalsatisfaction, challenge, pride, and remuneration.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 01 #1011.(p. 11)Research in the 1980s and 1990s found that since World War II, small entrepreneurial firms have beenresponsible for half of all innovation and a large percentage of all radical innovation in the UnitedStates.TRUEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 01 #1112.(p. 11-12)Studies indicate that smaller firms generate twice as many innovations per research and development(R&D) dollar spent as the established multinationals.TRUEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 01 #1213.(p. 14)Value creation is a linear process as it requires a short-term perspective.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 01 #1314.(p. 15)Entrepreneurship will result in equal incomes among the masses.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 01 #1415.(p. 15)When the entrepreneurial process will take over, it will result in economic expansion andaccompanying social mobility.TRUEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 01 #1516.(p. 02)Rick, an entrepreneur, is in the process of selecting a manager for his new venture. To successfullyrun the venture, who is he most likely to select?A. Fiona, who prefers minimal investment in human resourcesB.Saeed, who complements the needs of the ventureC. Garcia, who views change and ambiguity as detrimental for the ventureD. Maria, who has a different vision for the ventureAccessibility: Keyboard NavigationBlooms: ApplyLevel of Difficulty: 3 HardSpinelli - Chapter 01 #16

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 8 preview image

Loading page ...

17.(p. 05)Which of the following is a critical factor in enhancing entrepreneurship?A. Restricting entrepreneurship at the regional levelB. Discouraging entrepreneurs from expressing competitivenessC.Reducing restrictions that block the flow of financeD. Removing programs based on "learning by doing"Accessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 01 #1718.(p. 05)Which of the following is an entrepreneurial transformation that is changing the world?A. Entrepreneurship is now being discouraged in corporate America.B. Entrepreneurship topics and related issues are being removed from the curricula of business schoolsas they are self-taught.C. Entrepreneurship is becoming a tool to create social and economic equalities.D.Entrepreneurship is becoming a dominant management model for running nonprofit businesses.Accessibility: Keyboard NavigationBlooms: UnderstandLevel of Difficulty: 2 MediumSpinelli - Chapter 01 #1819.(p. 06)What is the characteristic of entrepreneurship educators whose views and attitudes toward learningdiffer radically from traditional academic approaches?A. They are faculty centric.B. They do not prefer a work-in-progress philosophy of teaching.C. They do believe that expertise, wisdom, and knowledge are housed solely in the faculty.D.They are likely to see their role as mentors, coaches, and advocates for students.Accessibility: Keyboard NavigationBlooms: UnderstandLevel of Difficulty: 2 MediumSpinelli - Chapter 01 #1920.(p. 06)What is the difference between entrepreneurial educators and traditional academicians?A. Entrepreneurial educators are faculty centric, whereas traditional academicians are student centric.B.Entrepreneurial educators follow a rigid training module, whereas traditional academicians follow amore hands-on philosophy.C.Entrepreneurial educators treat the learning process as solely occurring in the classroom, whereastraditional academicians treat it as more of an apprenticeship.D.Entrepreneurial educators are opportunity centric, whereas traditional academicians are facultycentric.Accessibility: Keyboard NavigationBlooms: UnderstandLevel of Difficulty: 2 MediumSpinelli - Chapter 01 #2021.(p. 08)Which of the following is true of new venture creation?A. It is process oriented and not result oriented.B. It gives importance to one's nationality.C.It creates economic and social mobility.D. It reduces competitiveness.Accessibility: Keyboard NavigationBlooms: UnderstandLevel of Difficulty: 2 MediumSpinelli - Chapter 01 #2122.(p. 11)At the heart of the entrepreneurial process is a(n):A. rigid organizational structure.B. resistance to ambiguity.C.innovative spirit.D. resistance to change.Accessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 01 #22

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 9 preview image

Loading page ...

23.(p. 13)Who among the following is most likely to be called a philanthropist?A. Lydia, an entrepreneur, who acquires a foreign companyB. Ahmed, an entrepreneur, who exercises monopoly in the highly profitable oil and natural gas sectorC.Zainab, an entrepreneur, who funds the construction of a public school in her localityD. Eric, an entrepreneur, who sells his innovation in the aviation industryAccessibility: Keyboard NavigationBlooms: ApplyLevel of Difficulty: 3 HardSpinelli - Chapter 01 #2324.(p. 14)What is true of the majority of America's self-made entrepreneurs?A. They accumulated their wealth through luck.B.They are invisible to most Americans.C. They fit the media stereotype.D. They prefer social status to financial independence.Accessibility: Keyboard NavigationBlooms: UnderstandLevel of Difficulty: 2 MediumSpinelli - Chapter 01 #2425.(p. 14)Which of the following is a characteristic of private equity creation?A. It is a linear process.B.It requires a long-term perspective.C. It hinders entrepreneurship.D. It targets quick returns on investments made over a short period of time.Accessibility: Keyboard NavigationBlooms: UnderstandLevel of Difficulty: 2 MediumSpinelli - Chapter 01 #2526.(p. 05)_____ is becoming a dominant management model for running nonprofit businesses and in theemerging field of social ventures.EntrepreneurshipBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 01 #2627.(p. 08)_____ entrepreneurship means new venture creation.ClassicalBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 01 #2728.(p. 08)_____ showed the highest rate of increase of any minority group in owning businesses according tothe U.S. Census Bureau in 2007.African Americans/BlacksBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 01 #2829.(p. 13-14)When successful entrepreneurs get involved in the nonprofit sector directly by offering strategicassistance, like long-term planning and leveraging relationships to identify additional resources andfacilitate partnerships, it is referred to as _____ philanthropy.high-engagementBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 01 #29

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 10 preview image

Loading page ...

30.(p. 11-12)What is the impact of small firms in driving innovation in the United States?The U.S. Department of Commerce found that since World War II, small entrepreneurial firms havebeen responsible for half of all innovation and 95 percent of all radical innovation in the United States.Other studies showed that research and development at smaller entrepreneurial firms were moreproductive and robust than at large firms; smaller firms generated twice as many innovations per R&Ddollar spent as the giants, twice as many innovations per R&D scientist as the giants, and 24 times asmany innovations per R&D dollar versus those large firms with more than 10,000 employees.Blooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 01 #3031.(p. 13)Briefly discuss the role of angel investors in the creation of new ventures.The angel investor market in 2010, following a considerable contraction in investment dollars in2008 and 2009, exhibited a rise in investment dollars and in the number of investments. Similar tothe venture capitalists, these angels bring far more than money to the entrepreneurial process. Assuccessful entrepreneurs themselves, they bring experience, networks, wisdom, and maturity to thecompanies they fund. As directors and advisors, they function as coaches, confidants, mentors, andcheerleaders.Blooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 01 #3132.(p. 13-14)Briefly discuss the role of successful American entrepreneurs as philanthropists.A lesser known and largely ignored role of American entrepreneurs is that of philanthropistsand creative community leaders. A majority of new buildings, classrooms, athletic facilities, anduniversities have been funded by an entrepreneur who wanted to give back. When a successfulentrepreneur gets involved in the nonprofit sector, the engagement involves strategic business skillslike long-term planning, board and executive recruitment, coaching, and leveraging relationships.These high-engagement philanthropists have a stronger focus and deeper investments in a smaller,more select number of investment partners, and a healthy ambition for the long-term reach of theirefforts.Blooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 01 #3233.(p. 05)Explain the four entrepreneurial transformations that are changing the world.Evidence and trends point to at least four entrepreneurial transformations that profoundly impact howthe world lives, works, learns, and enjoys leisure. They are as follows:1. Entrepreneurship is the new management paradigm: Entrepreneurial thinking and reasoning—so common in dynamic, higher-potential, and robust new and emerging firms—are now becominginfused and embedded into the strategies and practices of corporate America.2. Entrepreneurship has spawned a new education paradigm for learning and teaching.3. Entrepreneurship is becoming a dominant management model for running nonprofit businesses andin the emerging field of social ventures.4. Entrepreneurship is rapidly transcending business schools: Engineering, life sciences, architecture,medicine, music, liberal arts, and K-12 are new academic grounds that are exploring and embracingentrepreneurship in their curricula.Blooms: UnderstandLevel of Difficulty: 2 MediumSpinelli - Chapter 01 #33

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 11 preview image

Loading page ...

34.(p. 06-07)How do entrepreneurial faculties drive the rapid explosion of entrepreneurship?The energizing process for faculty and students alike is also driving the rapid explosion ofentrepreneurship education worldwide. First, the field seems to attract, by its substance and nature,highly entrepreneurial people. Historically, entrepreneurial thinkers and doers have been few andfar between in the vast majority of schools in the United States and abroad. These creative, can-do, resilient, and passionate people bring their entrepreneurial ways of thinking, acting, doing, andbuilding to their courses, their research, and their institutions. They are the change agents—the moversand shakers. Second, their entrepreneurial bent brings a new mind-set to universities and schools:They think and act like owners. They are creative, courageous, and determined to make it work andhappen; they build teams, practice what they preach, are institution builders, and do not let myopicallegiance to their disciplines impede becoming better educators. Students, deans, and colleaguescan be energized by the leading-by-example pace they establish. Third, entrepreneurship facultiesconstantly think in terms of opportunity. Entrepreneurial faculty realize that money follows superiorteams and superior opportunities, so they create them. They find ways to innovate, raise money, andimplement curricula in resource-strapped universities. They match innovative ideas with wealthyentrepreneurs and their foundations to raise money and launch programs. Fourth, they create powerfulstrategic alliances with others—colleagues, alumni, and entrepreneurs by practicing the teamworkprinciples of entrepreneurship they teach. There is something exciting and compelling about beingaround highly intelligent and creative entrepreneurs as the centerpiece of your subject matter. Theyinvariably inspire other faculty and students as well.Blooms: UnderstandLevel of Difficulty: 2 MediumSpinelli - Chapter 01 #3435.(p. 14)Describe a typical American entrepreneur.American entrepreneurs typically accumulated their wealth through hard work, self-discipline,planning, and frugality—all very entrepreneurial virtues. Two-thirds of them still working areself-employed and are self-made. The vast majority (80 percent) are ordinary people who haveaccumulated their wealth in one generation, live below their means, and prefer financial independenceto social status. Majority of them are invisible to most Americans and do not fit the media stereotype.They get rich slowly, with the average millionaire being 57 years old. Their businesses are ordinaryones they started and built like ambulance services, citrus farming, cafeteria services, consultingservices, janitorial services, job training schools, meat processors, mobile home parks, pestcontrollers, newsletter publishers, rice farmers, and sandblasting contractors.Blooms: UnderstandLevel of Difficulty: 2 MediumSpinelli - Chapter 01 #35

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 12 preview image

Loading page ...

1 SummaryCategory# of QuestionsAccessibility: Keyboard Navigation25Blooms: Apply2Blooms: Remember24Blooms: Understand9Level of Difficulty: 1 Easy24Level of Difficulty: 2 Medium9Level of Difficulty: 3 Hard2Spinelli - Chapter 0135

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 13 preview image

Loading page ...

2Student: ___________________________________________________________________________1.The psychological motivation of entrepreneurial behavior states that the need for achievement is the needto build a relationship with others.TrueFalse2.In the context of psychological motivation of entrepreneurial behavior, the need for power is the need toinfluence others to achieve a goal.TrueFalse3.In the context of entrepreneurial behavior, the need for affiliation is the need to excel.TrueFalse4.Entrepreneurs motivated purely by monetary reward typically build companies of substantial value.TrueFalse5.All successful business people share characteristics of raw energy and intelligence.TrueFalse6.The third volume of the Praeger Perspectives examines people and refers to a wide and diverse range ofcontextual factors that influence the entrepreneur and the entrepreneurial process.TrueFalse7.Successful entrepreneurs possess a well-developed capacity to exert influence without formal power.TrueFalse8.Entrepreneurs are self-starters who are internally driven by a strong desire to compete and attainchallenging goals.TrueFalse9.Research has shown that an entrepreneur is more driven by the conservation of resources, whereas amanager is more opportunity-driven.TrueFalse10. Studies show a strong connection between the presence of role models and the emergence ofentrepreneurs.TrueFalse11. Entrepreneurs are their own bosses and completely independent.TrueFalse12. Successful entrepreneurs seek power and control over others.TrueFalse13. Which of the following is defined as the need for measurable personal accomplishment?A. The need for achievementB. The need for powerC. The need for affiliationD. The need for attachment14. Which of the following is the least characteristic motivational need of successful entrepreneurs?A. AchievementB. ControlC. PowerD. Affiliation

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 14 preview image

Loading page ...

15. Which of the following volumes of the Praeger Perspectives proceeds through the life cycle of a newventure startup by tackling several key steps in the course of action?A. PeopleB. ProcessC. PlaceD. Plan16. Which of the following is not an entrepreneurial attribute?A. Being a calculated risk takerB. Being a perfectionistC. Being obsessed with value creationD. Being intensely curious in the face of risk17. In the context of creativity, self-reliance, and adaptability, which of the following attitudes of anentrepreneur is desirable?A. Skepticism about conflicts and failureB. Ability to be a lone wolfC. Restlessness with the status quoD. High need for status and power18. In thetroikaof the foundation of a successful new venture, which of the following is an externalenvironmental influence?A. Value creationB. Ethical behaviorC. FocusD. Adaptability19. Successful entrepreneurs consistently focus on:A. seizing a market-based opportunity.B. obtaining resources.C. networking.D. making money.20. When compared to an entrepreneur, a manager is more:A. resource-driven.B. opportunity-driven.C. creative.D. innovative.21. According to research, which of the following statements about entrepreneurs is false?A. Many successful entrepreneurs are well educated.B. Most successful entrepreneurs start companies in their early 20s.C. Most successful entrepreneurs follow a pattern of apprenticeship.D. Family firms spawn entrepreneurs.22. According to research studies on the career paths of entrepreneurs and the self-employed, which of thefollowing is the central factor for a successful venture creation?A. NetworkingB. The ability to marshal resourcesC. Experience and know-howD. The ability to attract and motivate an effective team23. According to an old maxim, how long will venture capitalists work with a startup before declaring thecompany a "lemon"?A. Up to a yearB. About two and a half yearsC. At least three yearsD. Three to five years

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 15 preview image

Loading page ...

24. Which of the following is the most important component of opportunity recognition?A. Experimenting with new ideasB. Exhibiting low tolerance toward changeC. Being risk aversiveD. Being a perfectionist25. Which of the following statements demystifies the myth that entrepreneurs are gamblers?A. Entrepreneurs consider an idea and an opportunity as the same.B. Successful entrepreneurs try to influence the odds, often by getting others to share the risk.C. Successful entrepreneurs are completely independent and their own bosses.D. Entrepreneurs are driven by instant gratification through high salaries and perks.26. Which of the following is a reality and not a persistent myth about entrepreneurs?A. Entrepreneurs are born, not made.B. Entrepreneurs are gamblers.C. Solo entrepreneurs limit their own potential for growth.D. Entrepreneurs should be young, energetic, and in their 20s.27. Which of the following is a myth about successful entrepreneurs?A. They are driven by the need for achievement.B. They are driven by the need to control others.C. They have the ability to exert influence.D. They have the ability to be patient even in adverse situations.28. According to venture investors, what is the realistic time frame for growing a high potential business tothe point where a capital gain can be realized?A. 1-3 yearsB. 2-5 yearsC. 5-7 yearsD. 7-8 years29. Successful entrepreneurs are driven by:A. the quest for power for its own sake.B. a personal need for authority expressed by control over others.C. the quest for achievement and results.D. a need to seek money as an end in itself.30. The need for _____ is the need to excel and the need for measurable personal accomplishment.________________________________________31. The need to build a relationship with others is known as the need for ___.________________________________________32. The first volume of the Praeger Perspectives deals with _____ and takes a broad view of entrepreneurshipas a form of human action, pulling together the current research with respect to cognitive, economic,social, and institutional factors that influence entrepreneurial behavior.________________________________________33. An entrepreneur who displays a high energy level and a sense of urgency is known as a ___.________________________________________34. Based on the entrepreneurial leadership paradigm, when the competencies of others are sought and used,it is referred to as ___.________________________________________35. Entrepreneurs who are internally driven by a strong desire to compete and attain challenging goals aretypically known as ___.________________________________________

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 16 preview image

Loading page ...

36. Although the skills of a manager and an entrepreneur overlap in the area of solid management skills, amanager is more driven by the conservation of resources, while the entrepreneur is more ___.________________________________________37. Numerous studies show a strong connection between the presence of _____ and the emergence ofsuccessful entrepreneurs.________________________________________38. Successful entrepreneurs are not gamblers; they take ___.________________________________________39. Most successful entrepreneurs have had a _____ to help them achieve their dreams and goals, bothimplicitly and explicitly.________________________________________40. Write a short note on the Praeger Perspectives.41. In the context of the seven dominant themes of desirable and acquirable attitudes and behavior ofentrepreneurs, briefly describe the role of creativity, self-reliance, and adaptability.42. Discuss any two myths and realities about entrepreneurs.43. Describe at least three important aspects of courage in entrepreneurship.

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 17 preview image

Loading page ...

2 Key1.(p. 29)The psychological motivation of entrepreneurial behavior states that the need for achievement is theneed to build a relationship with others.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #12.(p. 29)In the context of psychological motivation of entrepreneurial behavior, the need for power is the needto influence others to achieve a goal.TRUEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #23.(p. 29)In the context of entrepreneurial behavior, the need for affiliation is the need to excel.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #34.(p. 29)Entrepreneurs motivated purely by monetary reward typically build companies of substantialvalue.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #45.(p. 30)All successful business people share characteristics of raw energy and intelligence.TRUEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #56.(p. 31)The third volume of the Praeger Perspectives examines people and refers to a wide and diverse rangeof contextual factors that influence the entrepreneur and the entrepreneurial process.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #67.(p. 33)Successful entrepreneurs possess a well-developed capacity to exert influence without formalpower.TRUEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #78.(p. 34)Entrepreneurs are self-starters who are internally driven by a strong desire to compete and attainchallenging goals.TRUEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #8

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 18 preview image

Loading page ...

9.(p. 35)Research has shown that an entrepreneur is more driven by the conservation of resources, whereas amanager is more opportunity-driven.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #910.(p. 36)Studies show a strong connection between the presence of role models and the emergence ofentrepreneurs.TRUEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #1011.(p. 37)Entrepreneurs are their own bosses and completely independent.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #1112.(p. 38)Successful entrepreneurs seek power and control over others.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #1213.(p. 29)Which of the following is defined as the need for measurable personal accomplishment?A.The need for achievementB. The need for powerC. The need for affiliationD. The need for attachmentAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #1314.(p. 30)Which of the following is the least characteristic motivational need of successful entrepreneurs?A. AchievementB.ControlC. PowerD. AffiliationAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #1415.(p. 30)Which of the following volumes of the Praeger Perspectives proceeds through the life cycle of a newventure startup by tackling several key steps in the course of action?A. PeopleB.ProcessC. PlaceD. PlanAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #15

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 19 preview image

Loading page ...

16.(p. 31)Which of the following is not an entrepreneurial attribute?A. Being a calculated risk takerB.Being a perfectionistC. Being obsessed with value creationD. Being intensely curious in the face of riskAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #1617.(p. 31)In the context of creativity, self-reliance, and adaptability, which of the following attitudes of anentrepreneur is desirable?A. Skepticism about conflicts and failureB. Ability to be a lone wolfC.Restlessness with the status quoD. High need for status and powerAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #1718.(p. 33)In thetroikaof the foundation of a successful new venture, which of the following is an externalenvironmental influence?A.Value creationB. Ethical behaviorC. FocusD. AdaptabilityAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #1819.(p. 33)Successful entrepreneurs consistently focus on:A.seizing a market-based opportunity.B. obtaining resources.C. networking.D. making money.Accessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #1920.(p. 35)When compared to an entrepreneur, a manager is more:A.resource-driven.B. opportunity-driven.C. creative.D. innovative.Accessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #2021.(p. 36)According to research, which of the following statements about entrepreneurs is false?A. Many successful entrepreneurs are well educated.B.Most successful entrepreneurs start companies in their early 20s.C. Most successful entrepreneurs follow a pattern of apprenticeship.D. Family firms spawn entrepreneurs.Accessibility: Keyboard NavigationBlooms: UnderstandLevel of Difficulty: 2 MediumSpinelli - Chapter 02 #21

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 20 preview image

Loading page ...

22.(p. 36)According to research studies on the career paths of entrepreneurs and the self-employed, which of thefollowing is the central factor for a successful venture creation?A. NetworkingB. The ability to marshal resourcesC.Experience and know-howD. The ability to attract and motivate an effective teamAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #2223.(p. 38)According to an old maxim, how long will venture capitalists work with a startup before declaring thecompany a "lemon"?A. Up to a yearB.About two and a half yearsC. At least three yearsD. Three to five yearsAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 2 MediumSpinelli - Chapter 02 #2324.(p. 36)Which of the following is the most important component of opportunity recognition?A.Experimenting with new ideasB. Exhibiting low tolerance toward changeC. Being risk aversiveD. Being a perfectionistAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #2425.(p. 37)Which of the following statements demystifies the myth that entrepreneurs are gamblers?A. Entrepreneurs consider an idea and an opportunity as the same.B.Successful entrepreneurs try to influence the odds, often by getting others to share the risk.C. Successful entrepreneurs are completely independent and their own bosses.D. Entrepreneurs are driven by instant gratification through high salaries and perks.Accessibility: Keyboard NavigationBlooms: UnderstandLevel of Difficulty: 2 MediumSpinelli - Chapter 02 #2526.(p. 37)Which of the following is a reality and not a persistent myth about entrepreneurs?A. Entrepreneurs are born, not made.B. Entrepreneurs are gamblers.C.Solo entrepreneurs limit their own potential for growth.D. Entrepreneurs should be young, energetic, and in their 20s.Accessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #2627.(p. 38)Which of the following is a myth about successful entrepreneurs?A. They are driven by the need for achievement.B.They are driven by the need to control others.C. They have the ability to exert influence.D. They have the ability to be patient even in adverse situations.Accessibility: Keyboard NavigationBlooms: UnderstandLevel of Difficulty: 2 MediumSpinelli - Chapter 02 #27

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 21 preview image

Loading page ...

28.(p. 38)According to venture investors, what is the realistic time frame for growing a high potential businessto the point where a capital gain can be realized?A. 1-3 yearsB. 2-5 yearsC. 5-7 yearsD.7-8 yearsAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #2829.(p. 38)Successful entrepreneurs are driven by:A. the quest for power for its own sake.B. a personal need for authority expressed by control over others.C.the quest for achievement and results.D. a need to seek money as an end in itself.Accessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #2930.(p. 29)The need for _____ is the need to excel and the need for measurable personal accomplishment.achievementBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #3031.(p. 29)The need to build a relationship with others is known as the need for ___.affiliationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #3132.(p. 30)The first volume of the Praeger Perspectives deals with _____ and takes a broad view ofentrepreneurship as a form of human action, pulling together the current research with respect tocognitive, economic, social, and institutional factors that influence entrepreneurial behavior.peopleBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #3233.(p. 34)An entrepreneur who displays a high energy level and a sense of urgency is known as a ___.pacemakerBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #3334.(p. 34)Based on the entrepreneurial leadership paradigm, when the competencies of others are sought andused, it is referred to as ___.mentoringBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #3435.(p. 34)Entrepreneurs who are internally driven by a strong desire to compete and attain challenging goals aretypically known as ___.self-startersBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #3536.(p. 35)Although the skills of a manager and an entrepreneur overlap in the area of solid management skills, amanager is more driven by the conservation of resources, while the entrepreneur is more ___.opportunity-drivenBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #36

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 22 preview image

Loading page ...

37.(p. 36)Numerous studies show a strong connection between the presence of _____ and the emergence ofsuccessful entrepreneurs.role modelsBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #3738.(p. 37)Successful entrepreneurs are not gamblers; they take ___.calculated risksBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #3839.(p. 39)Most successful entrepreneurs have had a _____ to help them achieve their dreams and goals, bothimplicitly and explicitly.personal strategyBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #3940.(p. 30-31)Write a short note on the Praeger Perspectives.The Praeger Perspectives is a three volume series from 2007 that researched entrepreneurship fromthree perspectives: people, process, and place. This study brings together insights into the field ofentrepreneurship by some of the leading scholars in the world. The first volume,people, takes abroad view of entrepreneurship as a form of human action, pulling together the currentresearchwith respect to cognitive, economic, social, and institutional factors that influence entrepreneurialbehavior. The second volume,process, proceeds through the life cycle of a new venture startup bytackling several key steps in the process: idea, opportunity, team building, resource acquisition,growth management, and entering global markets. The third volume in the series examinesplace,which refers to a wide and diverse range of contextual factors that influence the entrepreneur and theentrepreneurial process.Blooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #4041.(p. 34)In the context of the seven dominant themes of desirable and acquirable attitudes and behavior ofentrepreneurs, briefly describe the role of creativity, self-reliance, and adaptability.High levels of uncertainty and rapid change characterizing new ventures require organizations thatcan respond quickly. The most successful entrepreneurial teams have the ability to focus on a goalwith outstanding execution, while being flexible enough to shift when the market and circumstancesrequire it. At the same time, entrepreneurs are not afraid of failing; rather, they are more intent onsucceeding.Blooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 02 #41

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 23 preview image

Loading page ...

42.(p. 37)Discuss any two myths and realities about entrepreneurs.Myth 1—Entrepreneurs are born, not made.Reality—While entrepreneurs are born with certain native intelligence, a flair for creating, andenergy, these talents by themselves are like unmolded clay or an unpainted canvas. The making of anentrepreneur occurs by accumulating the relevant skills, know-how, experiences, and contacts over aperiod of years and includes large doses of self-development. The creative capacity to envision andthen pursue an opportunity is a direct descendant of at least 10 or more years of experience that lead topattern recognition.Myth 2—Anyone can start a business.Reality—Entrepreneurs who recognize the difference between an idea and an opportunity, andwho think big enough, start businesses that have a better chance of succeeding. Luck, to the extentit is involved, requires good preparation. The easiest part is starting. What is hardest is surviving,sustaining, and building a venture so its founders can realize a harvest. Perhaps only one in 10 to 20new businesses that survive five years or more results in a capital gain for the founders.Blooms: UnderstandLevel of Difficulty: 2 MediumSpinelli - Chapter 02 #4243.(p. 33)Describe at least three important aspects of courage in entrepreneurship.Courage has at least three important aspects in entrepreneurship. The first aspect is moral strengthand principles. This refers to the character and the personal integrity to know right from wrong,and the will and commitment to act accordingly. The second aspect of courage is being a fearlessexperimenter. Fearless experimentation suggests restlessness with convention and a rejection of thestatus quo. This relentless experimentation is enhanced by a third aspect of courage, which is a lackof fear of failing at the experiment and a lack of fear of conflicts that may arise. In other words, thereis a mental toughness that is quite impervious to fears but is not ignorant or oblivious to possibleconsequences.Blooms: UnderstandLevel of Difficulty: 2 MediumSpinelli - Chapter 02 #43

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 24 preview image

Loading page ...

2 SummaryCategory# of QuestionsAccessibility: Keyboard Navigation29Blooms: Remember38Blooms: Understand5Level of Difficulty: 1 Easy37Level of Difficulty: 2 Medium6Spinelli - Chapter 0243

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 25 preview image

Loading page ...

3Student: ___________________________________________________________________________1.Entrepreneurship results in the creation, enhancement, realization, and renewal of value, not just forowners, but for all participants and stakeholders.TrueFalse2.The classic expression of entrepreneurship is the raw start-up company, an innovative idea that developsinto a high-growth company.TrueFalse3.Too much control and an obsession with orderliness are prerequisites to a successful entrepreneurialapproach.TrueFalse4.Entrepreneurship requires inflexible strategies and tactics that are not nimble.TrueFalse5.Building long-term equity requires large, continuous reinvestment in people, products, and services inadvance of revenues.TrueFalse6.One of the biggest strategic mistakes aspiring entrepreneurs make is that they think too small.TrueFalse7.Small, simple businesses that are more affordable, more manageable, and less demanding are moreprofitable than high-potential ventures.TrueFalse8.While government data, research, and business mortality statisticians may not agree on the precise failureand survival figures for new businesses, they do agree that moderate success is the rule, not the exceptionwith new ventures.TrueFalse9.Knowing the difference between a good idea and a real opportunity is vital for would-beentrepreneurs.TrueFalse10. In case of competition, the entrepreneurial task is to find a way to direct the arena of competition towardthe areas where a new venture is at a competitive disadvantage.TrueFalse11. The threshold concept proposes that the odds of success change as a venture reaches a critical mass ofover $8 million in sales and 50 employees.TrueFalse12. Successful entrepreneurs avoid creating their own investment pools, and they do not compete directlywith venture capitalists for deals.TrueFalse13. Like venture capitalists, private investors are constrained by having to invest a lot of money in arelatively short period.TrueFalse14. Private investors are funding more and more early-stage businesses, enabling risk mitigation beforelarger, institutional venture funds invest.TrueFalse

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 26 preview image

Loading page ...

15. There is often a direct correlation between creativity and innovation and the level of resources availableat the start of a venture.TrueFalse16. "Durability" refers to the market advantage a company can enjoy by developing proprietary barriers toentry.TrueFalse17. In entrepreneurial companies, bootstrapping is a way of life that can create significant competitiveadvantages.TrueFalse18. One of the leading practices of fast-growth companies to achieve market penetration is to initially deliverproduct and service benefits at below-market prices.TrueFalse19. Fast-growth firms maintain control by selectively granting employee stock ownership.TrueFalse20. While developing management strategies, fast-growth firms are careful not to link a defined exit strategyin the business plan with what the lead entrepreneur envisions as his or her long-term objectives.TrueFalse21. The most effective entrepreneurial leaders of fast-growth companies avoid linking job performancestandards to a business plan practice top-down management and administration.TrueFalse22. What is at the heart of the entrepreneurial process?A. Innovation and creativityB. Opportunity recognitionC. Team workD. Marshalling resources23. The entrepreneurial process starts with:A. strategy.B. networks.C. team.D. opportunity.24. According to the threshold concept, which of the following ventures is likely to overcome failure?A. A venture that reaches a critical mass of 10 people with $500,000 in revenuesB. A venture that reaches a critical mass of 5 people with $2 million in revenuesC. A venture that reaches a critical mass of 15 people with $2.5 million in revenuesD. A venture that reaches a critical mass of 6 people with $1.5 million in revenues25. According to the Timmons Model, which of the following is true of resources as a key element in anentrepreneurial process?A. An entrepreneur should stay away from bootstrapping, especially with new ventures.B.An entrepreneur must understand that having too much money early on in the venture is the biggestfactor that contributes to its success.C.An entrepreneur must avoid doing more with fewer resources as it is detrimental to a company'scompetitive advantage.D. An entrepreneur must strive to minimize and control resources, but not necessarily own them.26. Which of the following forms the base of the Timmons Model?A. ProfitabilityB. SustainabilityC. LifestyleD. Harvest

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 27 preview image

Loading page ...

27. In entrepreneurship, "durability" of an opportunity relates to the:A. return on investment.B. market demand.C. barriers to entry.D. market readiness.28. Which of the following refers to consumer trends and behaviors that seek new products or services?A. Entrepreneurial durabilityB. Market readinessC. Business plan feasibilityD. Product diversification29. Considering that the entrepreneurial process is opportunity-driven, in which of the followingcircumstances is there a possibility of greater opportunity?A. When there are greater gaps in available information and knowledgeB. When there are greater consistencies in existing services and qualityC. When there are fewer inconsistencies in lead and lag timesD. When there is less robustness of the gross and net margins30. Fast-growth firms should strive to create high-impact, new product and service improvements withdevelopment expenditures that account for no more than approximately _____ percent of revenues.A. 2B. 6C. 10D. 1531. Which of the following is one of the leading financial practices of fast-growth firms?A. Refraining from linking an entrepreneur's long-term objectives to a defined exit strategy in a businessplanB. Granting stock ownership to every employeeC. Anticipating only a single round of financingD. Utilizing financing vehicles that retain an entrepreneur's voting control32. Entrepreneurs for whom issues of family roots and location take precedence and thereby wish to be withand work with their family may lead them to develop a ________ business.________________________________________33. A(n) _____ provides the language and code for communicating the quality of the three driving forces ofthe Timmons Model and of their fit and balance.________________________________________34. In the entrepreneurial process depicted in the Timmons Model, the required shape, size, and depth of ateam and resources are established by the shape, size, and depth of a(n) ____.________________________________________35. Rounding out the Timmons model of the three driving forces is the concept of _____ between and amongthese forces.________________________________________36. Building a ________ venture means achieving economic, environmental, and social goals withoutcompromising the same opportunity for future generations.________________________________________37. As depicted in the Timmons Model, the entrepreneurial process can be appreciated as a constantbalancing act, requiring continual assessment, revised strategies and tactics, and a(n) _____ approach.________________________________________

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 28 preview image

Loading page ...

38. What are the central themes or driving forces that dominate a highly dynamic entrepreneurial process?39. According to the Timmons Model, what are the three driving forces of an entrepreneurial process?40. Write a brief note on the importance of timing in the entrepreneurial process.41. Discuss the overall paradoxical conflict inherent in the entrepreneurial process.42. Discuss the potential advantages and disadvantages of lifestyle ventures.

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 29 preview image

Loading page ...

3 Key1.(p. 77)Entrepreneurship results in the creation, enhancement, realization, and renewal of value, not just forowners, but for all participants and stakeholders.TRUEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 03 #12.(p. 77)The classic expression of entrepreneurship is the raw start-up company, an innovative idea thatdevelops into a high-growth company.TRUEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 03 #23.(p. 78)Too much control and an obsession with orderliness are prerequisites to a successful entrepreneurialapproach.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 03 #34.(p. 78)Entrepreneurship requires inflexible strategies and tactics that are not nimble.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 03 #45.(p. 78)Building long-term equity requires large, continuous reinvestment in people, products, and services inadvance of revenues.TRUEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 03 #56.(p. 78)One of the biggest strategic mistakes aspiring entrepreneurs make is that they think too small.TRUEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 03 #67.(p. 78)Small, simple businesses that are more affordable, more manageable, and less demanding are moreprofitable than high-potential ventures.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 03 #78.(p. 79)While government data, research, and business mortality statisticians may not agree on the precisefailure and survival figures for new businesses, they do agree that moderate success is the rule, not theexception with new ventures.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 03 #8

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 30 preview image

Loading page ...

9.(p. 80)Knowing the difference between a good idea and a real opportunity is vital for would-beentrepreneurs.TRUEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 03 #910.(p. 80)In case of competition, the entrepreneurial task is to find a way to direct the arena of competitiontoward the areas where a new venture is at a competitive disadvantage.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 03 #1011.(p. 80)The threshold concept proposes that the odds of success change as a venture reaches a critical mass ofover $8 million in sales and 50 employees.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 03 #1112.(p. 81)Successful entrepreneurs avoid creating their own investment pools, and they do not compete directlywith venture capitalists for deals.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 03 #1213.(p. 81)Like venture capitalists, private investors are constrained by having to invest a lot of money in arelatively short period.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 03 #1314.(p. 81)Private investors are funding more and more early-stage businesses, enabling risk mitigation beforelarger, institutional venture funds invest.TRUEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 03 #1415.(p. 82)There is often a direct correlation between creativity and innovation and the level of resourcesavailable at the start of a venture.TRUEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 03 #1516.(p. 83)"Durability" refers to the market advantage a company can enjoy by developing proprietary barriers toentry.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 03 #1617.(p. 84)In entrepreneurial companies, bootstrapping is a way of life that can create significant competitiveadvantages.TRUEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 03 #17

New Venture Creation: Entrepreneurship for the 21st Century 10th Edition Test Bank - Page 31 preview image

Loading page ...

18.(p. 88)One of the leading practices of fast-growth companies to achieve market penetration is to initiallydeliver product and service benefits at below-market prices.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 03 #1819.(p. 88)Fast-growth firms maintain control by selectively granting employee stock ownership.TRUEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 03 #1920.(p. 88)While developing management strategies, fast-growth firms are careful not to link a defined exitstrategy in the business plan with what the lead entrepreneur envisions as his or her long-termobjectives.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 03 #2021.(p. 88)The most effective entrepreneurial leaders of fast-growth companies avoid linking job performancestandards to a business plan practice top-down management and administration.FALSEAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 03 #2122.(p. 77)What is at the heart of the entrepreneurial process?A. Innovation and creativityB.Opportunity recognitionC. Team workD. Marshalling resourcesAccessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 2 MediumSpinelli - Chapter 03 #2223.(p. 77)The entrepreneurial process starts with:A. strategy.B. networks.C. team.D.opportunity.Accessibility: Keyboard NavigationBlooms: RememberLevel of Difficulty: 1 EasySpinelli - Chapter 03 #2324.(p. 80)According to the threshold concept, which of the following ventures is likely to overcome failure?A. A venture that reaches a critical mass of 10 people with $500,000 in revenuesB. A venture that reaches a critical mass of 5 people with $2 million in revenuesC.A venture that reaches a critical mass of 15 people with $2.5 million in revenuesD. A venture that reaches a critical mass of 6 people with $1.5 million in revenuesAccessibility: Keyboard NavigationBlooms: UnderstandLevel of Difficulty: 2 MediumSpinelli - Chapter 03 #24

Preview Mode

This document has 204 pages. Sign in to access the full document!

Report

Study Now!

Document Details

Related Documents

Launching Dilly's Corner Pet Shop: A Comprehensive Business Plan for Success

Foundations of Entrepreneurship: Key Concepts, Characteristics, and Strategic Decisions

An Analysis of the Failure of Realtime Worlds Ltd.: Causes, Consequences, and Lessons for Future Business Strategies

Test Bank for Entrepreneurship: Successfully Launching New Ventures, 6th Edition

Test Bank for Essentials of Entrepreneurship and Small Business Management, 9th Edition

Essentials of Entrepreneurship and Small Business Management, 9th Edition Solution Manual

Canadian Entrepreneurship And Small Business Management, 9th Edition Solution Manual

Small Business Management, Sixth Canadian Edition Solution Manual

Solution Manual For Entrepreneurship: Starting and Operating Small Business, 5th Edition

Nonverbal Behavior In Interpersonal Relations, 6th Edition Test Bank

Company

Explore

Study Tools