Deck 5: Entrepreneurship

Question 1

Entrepreneurship may involve modifications on what other people are already doing rather than introducing something totally new.

Answer 1

True

Question 2

An incubator organization applies to organizations that inhibit entrepreneurial activity.

Answer 2

False

Question 3

A small-business owner is anyone who owns a major equity stake in a company with fewer than 100 employees.

Answer 3

False

Question 4

Entrepreneurs succeed primarily because they invent new products or services.

Question 5

Entrepreneurs are usually very creative thinkers who are not necessarily competent in their technical skills.

Question 6

Stubbornness as a child predicts entrepreneurial failure due to lack of flexibility.

Question 7

A majority of all successful entrepreneurs act as their own CEOs, needing no help to manage their operations.

Question 8

"An insufficient business plan is worse than no plan at all," says Dave Ferkinhoff, Founder, Eastside Glass Company in Minnesota.

Question 9

Entrepreneurs are people who are realistic in their business plans and not inclined to exaggerate.

Question 10

A business plan deals with the entrepreneur's basic idea.

Question 11

According to the text, McDonald's, Domino's Pizza, and Jiffy Lube are all franchises.

Question 12

A venture capitalist is someone in an existing organization that turns new ideas into profitable realities.

Question 13

Now that Leonard Faulkner has received money from financial backers, he should continue furnishing his business plans to them in the future.

Question 14

During the past 10 years, export sales by small business have declined because of strong name-brand global competitors.

Question 15

For most family businesses to succeed in the long run, they must first draw up a legal agreement on disposing of the business.

Question 16

It is not a good idea to make jobs in family businesses too narrowly defined.

Question 17

Entrepreneurs can make better decisions without the burden of answering to a board of directors, compared to their more structured competitors.

Question 18

An intrapreneur is someone who starts a fast-growth business.

Question 19

CNN and NBC have created environments that have encouraged intrapreneurial activity.

Question 20

Matt Granger enjoys a reputation in his company for being someone who can successfully turn new ideas into profitable realities. Matt could be described as an intrapreneur.

Question 21

Decision-making authority in an intrapreneurial organization is often moved all the way down to first-line managers.

Question 22

Intrapreneurship should stop short of inciting an all-out revolution in an organization's practices.

Question 23

Islands of intrapreneurial activity within an organization are often referred to as skunkworks.

Question 24

According to the Preview reading, what did the owner of Carmin Industries learn about entrepreneurship from the Marine Corps?

A) Opportunities exist for the few, the proud.
B) Depend upon yourself first.
C) Don't think twice about doing things that have not been done before.
D) Imitation is the sincerest form of flattery.

Question 25

Which of the following were not important supports to Carolyn Minerich in establishing Carmin Industries?

A) professional advice from her husband
B) substantial loans from her parents
C) the Jacksonville Small Business Development Center
D) Compass Bank

Question 26

A(n) __________ is someone who manages resources in order to create something new-a new business, a new product or service, or even a new market.

A) stakeholder
B) financial speculator
C) venture capitalist
D) entrepreneur

Question 27

What differentiates highly successful entrepreneurs from less successful entrepreneurs?

A) They offer a higher quality product or service.
B) They make small modifications to what others are already doing.
C) They are both innovator and decision maker.
D) All of the above differentiate the successful entrepreneurs from the unsuccessful ones.

Question 28

Ingrid King is a wealthy businesswoman who wants to give something back to the people. She decides to form an organization that would renovate an old warehouse and subsidize the opening of small businesses. When a television news reporter publicized what she was doing, more than ten hopeful entrepreneurs applied for the subsidization. At present, more than fifteen successful businesses have received help from King. King's organization could be described as a(n) __________.

A) skunkwork
B) organic organization
C) network
D) business incubator

Question 29

The many studies of entrepreneurs that have been conducted over the years indicate that those who succeed have several characteristics in common. Which of the following is not one of the key characteristics?

A) substantial financial backing
B) desire to be independent
C) willingness to make sacrifices
D) need for achievement

Question 30

__________ brought out the entrepreneurial spirit of Adrian Lugo who founded LUGO Construction.

A) Racism
B) Poverty
C) Criminal background
D) Lack of formal education

Question 31

In the early days of Adrian Lugo's construction career, he received the benefit of good __________.

A) mentoring
B) governmental support programs
C) self-confidence levels
D) family support and encouragement

Question 32

Daniel Driesenga's strategy was to focus his Michigan-based engineering firm on __________.

A) new products and services
B) sales and marketing professionalism
C) local needs of customers
D) expanding the geographic scope

Question 33

Carmen Anaya indicated on her entrepreneurial quotient questionnaire that her parents were first-generation U.S. citizens and that as a child she preferred to be alone. These factors would have a(n) __________ effect on her score.

A) increase
B) reduction
C) zero
D) not applicable

Question 34

A study of CEOs who were winners of awards in the Ernst & Young LLP Entrepreneur of the Year Program revealed several leading strategic practices they have used to sustain rapid growth for their companies. Which of the following is not among those identified?

A) Delivering products and services that are perceived as the highest quality to expanding market segments.
B) Generating new customers that expand revenue by about 30 percent annually.
C) Formulating the strategic early in the life of the firm.
D) Maintaining financial control of the firm.

Question 35

Which of the following was a strategic action employed by Daniel Driesenga who founded Driesenga & Associates?

A) undercutting the prices of his competitors
B) focusing on customer service
C) seeking investors through the stock markets
D) investing in state-of-the art computer technology

Question 36

A study of entrepreneurs who had a history of success in the market revealed that a majority of the top management was organized in teams, with 67 percent of the teams ranging in size from three to six managers. However, not all of these successful entrepreneurs used teamwork. What percent of the entrepreneurs acted alone in their top management role?

A) less than 5 percent
B) 10 percent
C) 20 percent
D) slightly less than 50 percent

Question 37

Which of the following questions would typically not be asked in a survey predicting if you have "the right stuff" to succeed as an entrepreneur?

A) Did you enjoy participating in group activities in school?
B) Were you a stubborn child?
C) Are you willing to take risks?
D) All of the above are typical questions.

Question 38

According to the text, which of the following is not one of the questions a person should ask when making a decision whether to start or buy a new business?

A) Can I run the company at first as a home-based business?
B) Can I continue working for someone else and put in time on my own business after hours?
C) Is there a way that I can begin the enterprise in stages or with a limited investment?
D) To what extent can I keep the creation of the new business a secret from my current employer?

Question 39

Dennis Gertmenian, who founded Ready Pac Produce, was so busy with the daily production of his operations that he neglected __________.

A) other key family members
B) environmental concerns
C) long-term planning
D) the outside world

Question 40

Ready Pac's board of directors was able to advise the business owner that his plan to build a new processing plant in Soledad, CA should be __________.

A) pursued before interest rates changed
B) thrown into the trash can
C) a buy, rather than build strategy
D) none of the above

Question 41

Top managers in firms fostering intrapreneurship need to __________.

A) provide incentives and rewards for risk taking
B) provide a flexible organizational design
C) show commitment for intrapreneurial activities
D) all of the above

Question 42

Islands of intrapreneurial activity within an organization are often referred to as __________.

A) skunkworks
B) technodes
C) playzones
D) chopshops

Question 43

Managers who are trying to stimulate intrapreneurial activity in organizations must meet all of the following challenges except __________.

A) allowing intrapreneurial activities to flourish as a part of the organization's normal day-to-day operations
B) generating ideas that result in products that the organization can market
C) tying rewards to performance of the actual intrapreneurial units
D) All of the challenges above must be met by managers.

Question 44

Russell Bradley is the executive vice president for a large electronics firm. Over time, Bradley has come to realize that his firm's push to create new products has led to the creation of small islands of intrapreneurial activity. These islands are also known as __________.

A) brainstorming teams
B) magic shops
C) skunkworks
D) serial entrepreneurs

Question 45

No one can predict whether an entrepreneur will be successful in business, but there are characteristics that entrepreneurs have in common. Northwestern Mutual Life Insurance Company's quiz highlighted in the Self-Management Competency "Your Entrepreneurial Quotient," identifies several characteristic of entrepreneurs. What are five of these characteristics?

Question 46

Describe how Adrian Lugo used his self-management competency to become successful in the construction industry.

Question 47

What are four of the personal attributes of an entrepreneur?

Question 48

What are the organizational characteristics that encourage intrapreneurship?