Question 1

An entrepreneurial team advantage can be equated to ________ as those on the team share their experiences and knowledge.
A)entrepreneurial alertness
B)information asymmetry
C)social networks
D)feasibility analysis
E)illusion of control

Accepted Answer

Information asymmetry occurs when one party has more or better information than the other, often leading to an advantage. In the context of an entrepreneurial team, this advantage comes from team members sharing their unique experiences and knowledge, thereby reducing information asymmetry within the team while potentially maintaining it externally against competitors or in the market.

Question 2

What is entrepreneurial opportunity? Which are the types of opportunities as described by Schumpeter?

Accepted Answer

The answer of What is entrepreneurial opportunity? Which are the...

Question 3

Describe the five factors that influence the ability of individuals to identify opportunities.

Accepted Answer

The answer of Describe the five factors that influence the...

Question 4

Information asymmetry refers to an individual's ability to notice and be sensitive to new information about objects,incidents,and patterns of behavior.

Accepted Answer

Information asymmetry occurs when one party in a transaction has more or superior information compared to another. This often happens in transactions where the seller knows more about the product than the buyer.

Question 5

Betty and David decide to conduct a survey to observe people's reaction to their innovative idea for a new product.With the help of an organization that conducts primary research,the couple is able to acquire responses of people from their town with a population of less than 500.The results are very encouraging and they decide to start their company.What error have they committed?
A)hypercorrection
B)cognitive distortion
C)law of small numbers
D)defense mechanism
E)overregularization

Accepted Answer

They committed the error of the law of small numbers by assuming that the small sample size from their town is representative of a larger population's reaction to their product. This can lead to overgeneralization and potentially inaccurate predictions about the broader market acceptance of their idea.

Question 6

Martha recently created a Facebook account.She understands that she can utilize the account to advertise her growing recycling business.This is an example of ________.
A)information symmetry
B)market research
C)information asset
D)a social network
E)entrepreneurial risk

Accepted Answer

Martha is using Facebook, which is a platform for connecting with others and sharing content, making it an example of a social network. This platform can be leveraged for advertising purposes, highlighting its role as a social network in this context.

Question 7

Entrepreneurial alertness refers to an individual's ability to notice and be sensitive to new information about objects,incidents,and patterns of behavior in the environment.

Accepted Answer

Entrepreneurial alertness is the concept that describes an entrepreneur's ability to notice and be sensitive to new business opportunities and information in their environment, including new ways of doing things, market gaps, or innovative products.

Question 8

Rick and Jose gain new market information regarding a potential entrepreneurial opportunity.Despite the fact that both of them have gained access to this new information,only one of these individuals has access to additional information suggesting that other competitors are already moving to exploit this opportunity.What is this an example of?
A)information asset
B)information assurance
C)social networking
D)information asymmetry
E)information reliability

Accepted Answer

This scenario is an example of information asymmetry, where one party (in this case, one of the individuals) has more or better information than the other, affecting decision-making and potentially leading to an advantage in a competitive situation.

Question 9

What will entrepreneurs study in a feasibility analysis?
A)customer demands,structure of the industry,ability to provide the new product or service
B)ways to increase production and cut corners on costs
C)strategic planning
D)the likelihood of a product or service affecting the generation gap
E)entrepreneurial alertness

Accepted Answer

A feasibility analysis involves evaluating the viability of a new product or service by assessing customer demands, the structure of the industry, and the ability to provide the new product or service.

Question 10

________ is the second step of the entrepreneurial process.
A)Opportunity identification
B)Opportunity selection
C)Opportunity evaluation
D)Opportunity feedback
E)Opportunity success

Accepted Answer

Opportunity evaluation is the second step of the entrepreneurial process, where the identified opportunity is assessed for its feasibility and potential for success.

Question 11

Mike wants to start his own laundry service.However,he intends to first study the market and consider factors such as who his competitors are,how they function,their market shares,and how he can attract prospective customers before he decides whether his plan is viable.Mike is engaging in ________.
A)benchmarking
B)entrepreneurial risk management
C)feasibility analysis
D)exploitation
E)angel investing

Accepted Answer

Feasibility analysis is the process of assessing the viability of a new venture or project by analyzing various factors such as market competition, potential customer base, and overall market conditions, which is exactly what Mike is doing by studying the market and competitors before launching his laundry service.

Question 12

What occurs when an entrepreneur decides whether he or she has just a good idea or a viable opportunity that will provide the desired outcomes?
A)opportunity identification
B)opportunity selection
C)opportunity evaluation
D)opportunity feedback
E)opportunity success

Accepted Answer

Opportunity evaluation is the process where an entrepreneur assesses a business idea to determine if it is a viable opportunity that can meet desired outcomes, considering factors like market demand, competition, and resource requirements.

Question 13

________ is a type of evaluation that helps entrepreneurs understand whether an idea is practical.
A)Illusion of control
B)Entrepreneurial risk management
C)Strategic planning
D)Feasibility analysis
E)Entrepreneurial alertness

Accepted Answer

Feasibility analysis is a type of evaluation specifically designed to assess the practicality of a proposed business idea or project. It helps entrepreneurs determine whether their idea is viable and has the potential for success before committing significant resources.

Question 14

________ is the first step of the entrepreneurial process.
A)Opportunity identification
B)Opportunity evaluation
C)Risk identification
D)Opportunity feedback
E)Risk evaluation

Accepted Answer

Opportunity identification is considered the first step in the entrepreneurial process as it involves recognizing a problem or need that can be addressed by creating a new business or service.

Question 15

________ is the likelihood and magnitude of the opportunity's downside loss.
A)Illusion of control
B)Entrepreneurial risk
C)Entrepreneurial alertness
D)Exploitation
E)Entrepreneurial opportunity

Accepted Answer

Entrepreneurial risk refers to the potential for loss in an entrepreneurial venture. It encompasses the likelihood and magnitude of downside loss associated with pursuing a particular opportunity, including financial, market, and operational risks.

Question 16

________ refers to the resources that the entrepreneur could lose if the opportunity does not succeed.
A)Downside loss
B)Entrepreneurial risk
C)Feasibility analysis
D)Information asymmetry
E)Illusion of control

Accepted Answer

Downside loss refers to the potential resources or capital that an entrepreneur risks losing if their business opportunity fails.

Question 17

Which of the following is true of an individual who has a low level of entrepreneurial alertness?
A)They are more likely to identify potential entrepreneurial opportunities.
B)They spend most of their time giving feedback to employers.
C)They are more likely to dismiss or ignore new information and overlook potential opportunities.
D)They are more likely to follow the new market opportunities.
E)They have low entrepreneurial risk.

Accepted Answer

Individuals with low entrepreneurial alertness are less attuned to new information that could signal opportunities, making them more likely to overlook or dismiss potential opportunities. This is because entrepreneurial alertness involves the ability to notice things without engaging in active search, meaning those with lower levels of alertness might miss out on recognizing new possibilities.

Question 18

The ability of entrepreneurs to understand how to turn a new technology into a product or service that will be valued by consumers refers to the ability to assess ________.
A)information symmetry
B)market research
C)means-end relationships
D)social networks
E)entrepreneurial risk

Accepted Answer

Means-end relationships refer to understanding how a particular means (in this case, a new technology) can be used to achieve a desired end (a product or service valued by consumers). This ability is crucial for entrepreneurs as it involves identifying the potential applications and value of new technologies in the market.

Question 19

________ refers to an individual's ability to notice and be sensitive to new information about objects,incidents,and patterns of behavior in the environment.
A)Social networking
B)Entrepreneurial opportunity
C)Entrepreneurial alertness
D)Feasibility analysis
E)Entrepreneurial risk

Accepted Answer

Entrepreneurial alertness is the term that describes an individual's ability to notice and be sensitive to new information about objects, incidents, and patterns of behavior in the environment. This concept is crucial for entrepreneurs as it enables them to identify new opportunities that others might overlook.

Question 20

Although an opportunity may exist,it needs to be recognized first.This is ________.
A)opportunity feedback
B)opportunity evaluation
C)opportunity exploitation
D)opportunity identification
E)opportunity cost

Accepted Answer

Opportunity identification is the process of recognizing and defining a potential opportunity. This step is crucial before any evaluation, exploitation, or feedback can occur, as it involves the initial recognition that an opportunity exists.

Quiz 2: Management and Entrepreneurship: Handling Start-Ups and New Ventures

An entrepreneurial team advantage can be equated to ________ as those on the team share their experiences and knowledge.

What is entrepreneurial opportunity? Which are the types of opportunities as described by Schumpeter?

Describe the five factors that influence the ability of individuals to identify opportunities.

Information asymmetry refers to an individual's ability to notice and be sensitive to new information about objects,incidents,and patterns of behavior.

Martha recently created a Facebook account.She understands that she can utilize the account to advertise her growing recycling business.This is an example of ________.

Entrepreneurial alertness refers to an individual's ability to notice and be sensitive to new information about objects,incidents,and patterns of behavior in the environment.

What will entrepreneurs study in a feasibility analysis?

________ is the second step of the entrepreneurial process.

Mike wants to start his own laundry service.However,he intends to first study the market and consider factors such as who his competitors are,how they function,their market shares,and how he can attract prospective customers before he decides whether his plan is viable.Mike is engaging in ________.

What occurs when an entrepreneur decides whether he or she has just a good idea or a viable opportunity that will provide the desired outcomes?

________ is a type of evaluation that helps entrepreneurs understand whether an idea is practical.

________ is the first step of the entrepreneurial process.

________ is the likelihood and magnitude of the opportunity's downside loss.

________ refers to the resources that the entrepreneur could lose if the opportunity does not succeed.

Which of the following is true of an individual who has a low level of entrepreneurial alertness?

The ability of entrepreneurs to understand how to turn a new technology into a product or service that will be valued by consumers refers to the ability to assess ________.

________ refers to an individual's ability to notice and be sensitive to new information about objects,incidents,and patterns of behavior in the environment.

Although an opportunity may exist,it needs to be recognized first.This is ________.