Question 1

________ is a value required when an opportunity is attractive long enough for it to be successfully developed and deployed.

Accepted Answer

For an opportunity to be viable, it needs to have four qualities, one of which is it must be durable. This means the opportunity must be attractive long enough for the development and deployment to be successful; that is, the window of opportunity must be open long enough for it to be worthwhile.

Question 2

According to the text,new ventures launched by entrepreneurial teams are more likely to be successful than ventures launched by

Accepted Answer

Managers need to have a strong base of experience, extensive domain knowledge, and an ability to make rapid decisions and change direction as needed. In the case of start-ups, more is better. New ventures that are started by teams of three, four, or five entrepreneurs are more likely to succeed in the long run than are ventures launched by lone wolf entrepreneurs.

Question 3

Which of the following terms is used to refer to opportunities that are practical and physically possible?

Accepted Answer

For an opportunity to be viable, it needs to have four qualities, one of which is it must be achievable. This means the opportunity must be practical and physically possible.

Question 4

Generally speaking the opportunity recognition process consists of two phases of activity.They are ________ and ________.

Accepted Answer

Opportunity recognition refers to more than just the "Eureka" feeling that people sometimes experience at the moment they identify a new idea. Although such insights are often very important, the opportunity recognition process involves two phases of activity (discovery and evaluation), which lead to viable new venture opportunities.

Question 5

The majority of entrepreneurial start-ups are financed through monies from

Accepted Answer

The majority of new firms are low-budget start-ups launched with personal savings and the contributions of family and friends.

Question 6

The U.S.Small Business Administration supports small business through all the following except

Accepted Answer

In the United States, the federal government provides support for entrepreneurial firms in two key arenas, financing and government contracting. The Small Business Administration (SBA) has several loan guarantee programs designed to support the growth and development of entrepreneurial firms. The government itself does not typically lend money but underwrites loans made by banks to small businesses. The SBA also offers training, counseling, and support services through its local offices and Small Business Development Centers.

Question 7

________ are private individuals who provide seed capital to young ventures.

Accepted Answer

Angel investors, private individuals who provide equity investments for seed capital during the early stages of a new venture, favor companies that already have a winning business model and dominance in a market niche.

Question 8

According to a study by the Kauffman Foundation,which of the following is the largest source of funding for businesses that have been operating at least five years?

Accepted Answer

According to the Kauffman Foundation study, after five years of operation, the largest source of funding is from loans taken out by the business.

Question 9

________ is the process of identifying,selecting,and developing new venture opportunities.

Accepted Answer

To determine which ideas are strong enough to become new ventures, entrepreneurs must go through a process of identifying, selecting, and developing potential opportunities. This is the process of opportunity recognition.

Question 10

________ provide(s)a key avenue for growth for many young and small firms through partnering to obtain resources and to expand into new markets.

Accepted Answer

Strategic alliances provide a key avenue for growth by entrepreneurial firms. By partnering with other companies, young or small firms can expand or give the appearance of entering numerous markets and/or handling a range of operations.

Question 11

Vision is an important element of entrepreneurial leadership because

Accepted Answer

Vision may be the most important asset of an entrepreneur. Entrepreneurs envision realities that do not yet exist. Without a vision, most entrepreneurs would never even get their venture off the ground.

Question 12

Which of the following is not one of the characteristics of an entrepreneurial opportunity?

Accepted Answer

For an opportunity to be viable, it needs to have four qualities:attractive, achievable, durable, and value creating.

Question 13

Which of the following is the most important resource for a start-up activity?

Accepted Answer

Resources are an essential component of a successful entrepreneurial launch. For start-ups, the most important resource is usually money because a new firm typically has to expend substantial sums just to start the business. However, financial resources are not the only kind of resource a new venture needs. Human capital and social capital are also important.

Question 14

Opportunities can be found through a structured search process.The example of Ancient Ales with their innovative line of craft beers demonstrates which of the following types of structured search?

Accepted Answer

Sometimes, the best ideas are not actually new ideas. Opportunities in industries can often be discovered by looking to the past to find good ideas that have slipped out of practice but might now be valued by the market again. For example, Sam Calagione, founder of Ancient Ales, developed an innovative line of craft beers by using ancient brewing techniques and ingredients that differ from modern brews.

Question 15

Jeannine Fradelizio noticed that at parties she hosted,guests would set down their wine glasses and forget which one was their glass.She designed the Wine Glass Writer to solve this problem.She used the process of

Accepted Answer

Experienced entrepreneurs discussing ways to look for new entrepreneurial opportunities identify several ways to undertake a structured search for entrepreneurial ideas. One of these is to look at personal frustrations with current products or processes. This activity is called opportunity recognition, the process of discovering and evaluating changes in the business environment, such as a new technology, sociocultural trends, or shifts in consumer demand, that can be exploited.

Question 16

Which of the following is not one of the three characteristics of entrepreneurial leadership mentioned by the text?

Accepted Answer

Entrepreneurs put themselves to the test and get their satisfaction from acting independently, overcoming obstacles, and thriving financially. To do so, they must embody three characteristics of leadership which are vision, dedication and drive, and commitment to excellence.

Question 17

Which of the following is not a primary source of financing for entrepreneurial start-ups?

Accepted Answer

The majority of new firms are low-budget start-ups launched with personal savings and the contributions of family and friends. Angel investors, private individuals who provide equity investments for seed capital during the early stages of a new venture, favor companies that already have a winning business model and dominance in a market niche.

Question 18

Which of the following is not a common source of new business opportunities?

Accepted Answer

For new business start-ups, opportunities come from many sources including current or past work experiences, hobbies that grow into businesses or lead to inventions, suggestions by friends or family, or a chance event that makes an entrepreneur aware of an unmet need.

Question 19

Which of the following statements about venture capital is false?

Accepted Answer

Start-ups that involve large capital investments or extensive development costs may seek venture capital, a form of private equity financing through which entrepreneurs raise money by selling shares in the new venture. Venture capitalists nearly always have high performance expectations from the companies they invest in, but they also provide important managerial advice and links to key contacts in an industry.

Question 20

According to the text,for an entrepreneurial start-up to be successful,three ingredients are critical.What are they?

Accepted Answer

Beyond merely identifying a venture concept, the opportunity recognition process also involves organizing the key people and resources that are needed to go forward. The three factors that are needed, therefore, to successfully proceed are opportunity, resources, and entrepreneur(s).

Quiz 8: Entrepreneurial Strategy and Competitive Dynamics