Question 1

_________ is money provided to a business venture that entitles the provider to rights or ownership in the venture and which is not expected to be repaid.

Accepted Answer

Equity financing involves raising money by selling ownership in a business venture, such as stocks or shares, with the understanding that the investor will not receive repayment but will receive benefits such as dividends and voting rights.

Question 2

While ________ may underperform established products in mainstream markets,they often offer features or capabilities appreciated by some fringe customer group.

Accepted Answer

Disruptive innovations are new and novel products or services that may not initially perform as well as established products in mainstream markets. However, they often offer features or capabilities that are appreciated by niche groups, which can eventually drive their adoption and success. Throughput technologies and acquired innovations do not necessarily have this characteristic, and lagging innovations are not likely to offer new or novel features or capabilities.

Question 3

The entrepreneur or team must possess the knowledge and skill necessary to create the products or services the new venture will provide.This refers most directly to the entrepreneur's:

Accepted Answer

Technical competence refers to the specific knowledge and expertise necessary to create the products or services that the new venture will offer. This includes areas such as engineering, programming, or any other technical skills required for the venture. While social skills, marketing competence, and vision are also important for a successful entrepreneurial venture, they are not as directly related to the creation of the product or service.

Question 4

Managers ask if they can retain existing customers and improve targeted coverage of existing and similar new customers,without innovation.Which of the following points about managing risk relates to this question?

Accepted Answer

The answer of Managers ask if they can retain existing...

Question 5

Incremental business process innovations can:

Accepted Answer

Incremental innovations involve small, gradual improvements to existing business processes. While they may not have the potential for significant revenue gains like radical innovations, they also involve less risk and can still generate substantial cost savings. Therefore, choice (B) is the best choice as it accurately describes the benefits of incremental process innovations.

Question 6

___________ is an idea factor involving following demographic and other broad trends and trying to develop ideas that may be relevant and useful.

Accepted Answer

Trend following involves analyzing demographic and other broad trends to develop relevant and useful ideas. Mental invention refers to the creation of new and innovative ideas without necessarily considering trends or data. Market research involves collecting and analyzing data about a specific market or consumer group. Solution spotting refers to the identification of potential solutions to a specific problem or challenge.

Question 7

_______ is an idea factor involving traditional research techniques to find ideas.

Accepted Answer

Market research involves using traditional research techniques to identify market needs and preferences, which can lead to the generation of new product or service ideas. A) Need spotting refers to identifying unmet needs or problems. B) Mental invention involves using imagination to generate ideas. C) Solution spotting involves identifying existing problems and developing solutions for them.

Question 8

Because certain ideal strengths rarely coexist in one individual,__________ is increasingly found to involve teams of people that combine their strengths.

Accepted Answer

Entrepreneurship typically involves a wide range of skills and strengths, including creativity, risk-taking, financial management, marketing, and leadership. It is unlikely for one individual to possess all of these qualities in ideal strengths. Therefore, entrepreneurship often involves team collaboration, with each member contributing their particular strengths to the overall success of the venture.

Question 9

_______ usually take pride in overseeing the smooth,efficient functioning of operations largely as they are.

Accepted Answer

The description given fits the role of an administrator, who is responsible for ensuring that operations run smoothly without much deviation from existing processes. Promoters may focus more on generating excitement and enthusiasm for new ideas and products, while inventors and innovators are more concerned with creating and implementing new solutions.

Question 10

____________ are also referred to as "crowdsourcing" or "open innovation."

Accepted Answer

Ideagoras refer to the practice of obtaining ideas and solutions from a large and diverse group of people, which is also known as crowdsourcing or open innovation. Disruptors, sustainers, and golddiggers do not have specific relevance to this concept.

Question 11

____________ is the process of bringing together creative and innovative ideas and actions with the management and organizational skills necessary to mobilize the appropriate people,money and operating resources to meet an identifiable need and create wealth in the process.

Accepted Answer

Entrepreneurship involves bringing together creative and innovative ideas with management and organizational skills to mobilize resources and create wealth through meeting a need in the market. Market speculation involves making bets on future market changes, while venture capitalism involves providing funding to start-up companies in exchange for ownership. Franchising involves licensing a proven business model to others.

Question 12

Good _______ develop strong management skills,specific business know-how and the ability to organize people.

Accepted Answer

Administrators are typically responsible for managing teams of people and ensuring that business operations run smoothly. Developing strong management skills, specific business knowledge, and organizational abilities are necessary for success in this role. Promoters may focus more on sales and marketing, while inventors and innovators may prioritize developing new products or technologies over management skills.

Question 13

When entrepreneurs can sell their product or service at gross margins in the ________ range,there is an attractive cushion built in that covers the mistakes they are likely to make while developing a new enterprise.

Accepted Answer

Gross margins in the 50+ percent range provide a significant cushion for entrepreneurs, allowing for a greater margin of error as they navigate the challenges of developing a new enterprise. High margins can absorb the costs of mistakes and unforeseen issues more effectively than lower margins.

Question 14

__________ are clever at devising schemes or programs to push a product or service,but aimed more at a quick payoff than a profitable,business building endeavor for the longer term.

Accepted Answer

The term "promoters" refers to individuals who are skilled at creating marketing campaigns to promote a product or service. However, the emphasis is on achieving quick results rather than building a sustainable, profitable business in the long term. This is different from entrepreneurs, who are typically focused on building a successful business over the long term, and inventors, who focus on the development of new products or technologies. Administrators typically focus on managing and overseeing business operations, rather than promoting products or services.

Question 15

Most new ventures find _________ hard to get,so gradually nurturing a relationship with a commercial lender is a wise approach for the new entrepreneur.

Accepted Answer

Debt capital refers to loans or other forms of borrowing that need to be repaid with interest. Most new ventures find it hard to get debt capital, but gradually nurturing a relationship with a commercial lender is a wise approach for the new entrepreneur.

Question 16

Tweaking a business process does not incur much:

Accepted Answer

The answer of Tweaking a business process does not incur...

Question 17

__________ are exceptional for their technical talents,insights and creativity,but their creations are often unsuccessful in becoming commercial realities.

Accepted Answer

The term "inventors" refers to individuals who excel in technical talents, insights, and creativity, but they may not be skilled in commercializing their creations. They may lack the marketing and business skills required to turn their innovations into successful products or services.

Question 18

_________ accrues to good entrepreneurs,but their focus is on opportunities,customers,markets and competition.They do not often seek ________ for its/their own sake.

Accepted Answer

The answer of _________ accrues to good entrepreneurs,but their focus...

Question 19

The ideal ________ has strength in both creativity and management.

Accepted Answer

An entrepreneur is someone who creates and manages a new business venture, and this requires both creativity and management skills. The other options may require some level of creativity or management, but they do not necessarily require both in equal measure.

Question 20

__________ with other firms that have an interest in a possible innovation share the costs and risks associated with the effort.

Accepted Answer

Joint ventures involve two or more firms collaborating and forming a new entity to undertake a specific project or innovation. In this way, the costs and risks are shared among the parties involved. Acquisitions and mergers involve one firm taking over another completely, and joint strategy may involve cooperation but does not typically involve the creation of a new entity to share costs and risks.

Quiz 14: Innovation and Entrepreneurship