Question 1

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

Accepted Answer

Feasibility analysis involves assessing the practicality and viability of an idea or business venture. This evaluation helps entrepreneurs determine if their idea is feasible in terms of its market potential, financial viability, and operational feasibility. It also helps identify potential obstacles or challenges that may arise in bringing the idea to fruition.

Question 2

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

Accepted Answer

The answer of ________ refers to the resources that the...

Question 3

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 actually refers to a situation where one party has more or better information than another party in a transaction, which can lead to an imbalance of power and potentially unfair outcomes.

Question 4

________ is the second step of the entrepreneurial process.

Accepted Answer

The answer of ________ is the second step of the...

Question 5

What will entrepreneurs study in a feasibility analysis?

Accepted Answer

In a feasibility analysis, entrepreneurs typically study customer demands to determine if there is a market for their product or service. They also examine the structure of the industry to identify any obstacles or competition. Additionally, they assess their ability to provide the new product or service, including any necessary resources or expertise.

Question 6

________ is the first step of the entrepreneurial process.

Accepted Answer

Opportunity identification is the first step of the entrepreneurial process where entrepreneurs identify potential opportunities in the market or problems that need solving. This process involves identifying customer needs, analyzing market trends, and recognizing potential gaps in the market. Once an opportunity is identified, the entrepreneur can move on to evaluating its feasibility, potential profitability, and the resources needed to pursue it.

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

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?

Accepted Answer

This scenario describes information asymmetry, where one party has access to additional information that the other party does not have. Rick and Jose have gained new market information, but only one of them has access to the information about competitors moving to exploit the opportunity, which creates an asymmetric information situation.

Question 9

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

Accepted Answer

Opportunity identification means recognizing the existence of an opportunity. It is the first step towards taking advantage of an opportunity. Option A (opportunity feedback) implies receiving feedback on an opportunity, which is not the same as recognizing it. Option B (opportunity evaluation) refers to assessing the merits and feasibility of an opportunity - this step comes after opportunity identification. Option C (opportunity exploitation) refers to taking advantage of an opportunity once it has been identified. Option E (opportunity cost) refers to the benefits forgone by choosing one option over another.

Question 10

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

Accepted Answer

Martha's use of Facebook for advertising her recycling business demonstrates the utilization of social networks as a tool for promoting business activities.

Question 11

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

Accepted Answer

Individuals with low levels of entrepreneurial alertness are more likely to dismiss or ignore new information and overlook potential opportunities. They may not be actively looking for opportunities or may not recognize them even when they are presented.

Question 12

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

Accepted Answer

Entrepreneurial risk refers to the potential downside loss in pursuing an opportunity, including financial and personal costs. It is important for entrepreneurs to assess and manage these risks before committing resources to the opportunity.

Question 13

________ 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 refers to an individual's ability to notice and be sensitive to new information about objects, incidents, and patterns of behavior in the environment. This is a key skill for entrepreneurs in identifying and seizing new opportunities.

Question 14

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?

Accepted Answer

When an entrepreneur decides whether he or she has just a good idea or a viable opportunity that will provide the desired outcomes, it is the process of opportunity evaluation. This involves assessing the feasibility, market potential, and profitability of the idea to determine if it is worth pursuing as a business opportunity. Therefore, choice C - opportunity evaluation is the best answer.

Question 15

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 are able to get the responses of people from their town. The results are very encouraging and they decide to start their company. What error have they committed?

Accepted Answer

The error they have committed is the law of small numbers, which refers to drawing conclusions based on a small sample size. While the results may be encouraging, they may not accurately represent the larger population's reaction to the product. Therefore, Betty and David may face issues when they scale up their business, and the product may not perform as well as they expect.

Question 16

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 17

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

Accepted Answer

Mike is engaging in feasibility analysis, which involves assessing the viability and potential success of a business idea by examining factors like competition, market share, and customer demand.

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 ________.

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

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

Accepted Answer

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

Question 20

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

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.

Quiz 20: Management and Entrepreneurship: Handling Start-Ups and New Ventures

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

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

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

________ is the second step of the entrepreneurial process.

What will entrepreneurs study in a feasibility analysis?

________ is the first step of the entrepreneurial process.

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.

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

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

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

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

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

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

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 ________.

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

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