Question 1

Researchers have identified three major changes that give rise to sources of opportunity for entrepreneurs. List,describe,and give an example of each of the three major changes.

Accepted Answer

The answer of Researchers have identified three major changes that...

Question 2

Almost all personal computers (PCs)use the same type of processing components. This type of use of the components is known as

Accepted Answer

The use of the same type of processing components in almost all personal computers is an example of dominant design. Dominant design refers to a situation where a particular design or technology becomes the standard or dominant design for a particular product or industry.

Question 3

Explain why an industry that has a greater R&D intensity tends to be more favorable to a new business than an industry that has a low R&D intensity.

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The answer of Explain why an industry that has a...

Question 4

Identify the five ways to develop an opportunity that are presented in chapter two. Explain how they are different from the sources of opportunity.

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Question 5

Which of the following companies is most likely to have the largest/best economies of scale?

Accepted Answer

A company that has a large market share in an industry is most likely to have the largest/best economies of scale because it is producing a large number of products, which reduces the average cost of production due to spread fixed costs over more units. This allows them to lower their prices and gain more customers, leading to more sales and profits.

Question 6

New businesses tend to do better when their business ideas are embedded in

Accepted Answer

Human capital refers to the skills, knowledge, and experience that individuals possess, which are essential for the success of a new business. Having a talented and experienced team is crucial to developing innovative ideas and implementing them effectively. While monetary and physical capital are important, they are not sufficient for long-term success if the business lacks human capital. Therefore, new businesses tend to do better when their business ideas are embedded in human capital.

Question 7

In which of the following situations would a new firm have a higher chance of performing better?

Accepted Answer

A new firm would have a higher chance of performing better in an R&D intensive industry because innovation and technological advancements are highly valued in these industries, and new firms have the potential to introduce novel ideas and technology that can disrupt the market.

Question 8

The textbook mentions that because Barnes & Noble spent a large amount of money to build its regular bookstores,it resisted selling books on the Internet. Barnes & Noble resisted selling book on the Internet because of

Accepted Answer

Barnes & Noble's resistance to selling books on the Internet was due to their fear that it would cannibalize sales in their physical stores. They had invested a large amount of money in building their bookstores and were concerned that online sales would take away from their in-store business.

Question 9

List and discuss the four dimensions of industry differences that influence the relative success of new firms.

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The answer of List and discuss the four dimensions of...

Question 10

Changes in human populations might present opportunities for entrepreneurs because

Accepted Answer

Population growth can lead to increased demand for products or services, which presents an opportunity for entrepreneurs. Changes in population characteristics, such as demographics or lifestyles, can also create new opportunities for products or services targeted towards those specific groups. However, there is no guarantee that a population growth will allow a business to increase its prices, so option C is incorrect. Option D is partially correct, but option E is a more comprehensive and accurate answer.

Question 11

Changes in human populations represent

Accepted Answer

Changes in human populations most commonly refer to demographic changes, such as changes in birth rates, death rates, migration patterns or age distribution.

Question 12

Which of the following situations,and the related industry,would be associated with higher rates of new business formations?

Accepted Answer

B) A university researcher inventing a new idea for a product and publishing the results in a public report would likely lead to higher rates of new business formations. This is because the public availability of the new idea allows entrepreneurs and existing businesses to explore and exploit the innovation, potentially leading to the creation of new companies or ventures to develop, produce, and market products based on the new idea.

Question 13

Which of the following types of changes are most likely to provide opportunities to redistribute wealth from one person to another?

Accepted Answer

Political and regulatory changes often have a direct impact on the distribution of wealth through taxation policies, subsidies, and other governmental interventions.

Question 14

Starting a new company is easiest in which of the following conditions?

Accepted Answer

Starting a new company is easiest in an industry that has many segmented markets. This allows for a company to target a specific niche and carve out a unique space for itself. It also allows for lower competition and potentially higher profitability. Industries in the mature stage of their life cycle may have high competition and established players, while industries with high fixed costs to get started may require significant initial investment. Low R&D intensity industries may not offer much opportunity for innovation and differentiation. Few segmented markets also leave limited room for a new company to differentiate itself.

Question 15

Things that are used along with the entrepreneur's new product that help to produce or distribute that product are called

Accepted Answer

Complementary assets are resources that are used along with the entrepreneur's new product to help produce or distribute the product. These assets can include specialized equipment, knowledge or skills, relationships with suppliers or customers, and other resources that are necessary for the success of the product. Complementary assets are critical for entrepreneurs because they often cannot afford to acquire everything they need to produce and distribute their products on their own.

Question 16

Explain why the concept of a dominant design is important to entrepreneurship.

Accepted Answer

The answer of Explain why the concept of a dominant...

Question 17

Explain why it might be more difficult for an established firm to invent a new technology or a new product than it would be for a new firm.

Accepted Answer

The answer of Explain why it might be more difficult...

Question 18

Capital intensity in an industry refers to

Accepted Answer

Capital intensity in an industry refers to the degree to which the industry requires more money (capital) as compared to labor to produce its products or services. Higher capital intensity industries typically have higher initial start-up costs and ongoing expenses related to technology, equipment, and facilities.

Question 19

New companies tend to be more successful when they develop products and services that are discrete. Which of the following is the most likely to be a discrete product?

Accepted Answer

The answer of New companies tend to be more successful...

Question 20

Which of the following conditions would be most favorable to an entrepreneurial company?

Accepted Answer

High intensity of R&D is favorable for entrepreneurial companies as it allows for innovation and the development of unique products or services, giving them a competitive edge in the market.

Quiz 2: Entrepreneurial Opportunities: Their Origins, Forms, and Suitability For New Ventures