Question 1

Innovation-driven economies are economies that are typical in countries that compete on the basis of:

Accepted Answer

The answer of Innovation-driven economies are economies that are typical...

Question 2

Factor-driven economies are economies that are typical in countries that compete on the basis of:

Accepted Answer

Factor-driven economies rely on basic factors like unskilled labor and natural resources for their economic growth and competitiveness rather than more advanced factors like technology, business sophistication, or innovation.

Question 3

The traditional firm:

Accepted Answer

The traditional firm is defined as a business organization that operates in the home country for many years and gradually evolves into international trade. Option (A) is incorrect because developing strategies for expanding abroad is not a characteristic of a traditional firm. Option (B) is incorrect because a traditional firm does not have a borderless view of the world from the outset. Option (D) is incorrect because achieving superior performance in international business is not the primary focus of a traditional firm. Option (E) is incorrect because a traditional firm does not necessarily seek competitive advantage from the use of resources and sale of outputs in multiple countries.

Question 4

The most common form of bootstrapping is:

Accepted Answer

Using a personal credit card for financing is the most common form of bootstrapping. It involves using personal resources to support and grow a business, which is a direct and immediate form of self-financing.

Question 5

Owner financing, sweat equity, and minimization of the accounts receivable are the different types of:

Accepted Answer

Owner financing, sweat equity, and minimization of accounts receivable are all examples of bootstrapping, which refers to using one's own resources and creativity to fund and grow a business. The other options listed are different types of external financing.

Question 6

Efficiency-driven economies are:

Accepted Answer

Efficiency-driven economies are characterized by having a focus on increasing productivity and efficiency in order to compete with other countries in the global market. This is achieved through investing in education, technology, and innovation. Therefore, option B, which describes countries with well-developed higher education, organized markets, and the ability to harness existing technology, best represents efficiency-driven economies. Option A is incorrect as efficiency-driven economies are still influenced by world economic cycles and exchange rate fluctuations. Option C is more representative of innovation-driven economies, while option D describes all types of economies, not just efficiency-driven. Option E is incorrect as all economies are sensitive to world economic cycles and exchange rate fluctuations.

Question 7

Bias for action refers to:

Accepted Answer

Bias for action refers to the propensity to act or decide without customary analysis or sufficient information. It is a key trait of successful entrepreneurs who are willing to take calculated risks and make quick decisions in order to seize opportunities. Option A describes blue ocean strategy, option B describes a mission statement, option C describes social entrepreneurship, and option E describes bootstrapping.

Question 8

_____ refer(s) to the annual assessment of the national level of entrepreneurial activity across countries, started as a partnership between London Business School and Babson College.

Accepted Answer

The Global Entrepreneurship Monitor (GEM) refers to the annual assessment of the national level of entrepreneurial activity across countries, which was started as a partnership between London Business School and Babson College. The Doing Business Index, Global Competitiveness Index, Index of Economic Freedom, and The World Bank Doing Business Reports are all different measures of business environment and economic development, but not specifically focused on entrepreneurial activity.

Question 9

Efficiency-driven economies are economies that are typical in countries that compete on the basis of:

Accepted Answer

Efficiency-driven economies compete on the basis of their production processes and increased product quality, prioritizing efficiency over innovation. This type of economy is often found in developing countries with low levels of technological advancement and an abundant supply of low-skilled labor and natural resources.

Question 10

Which of the following is an example of a factor-driven economy?

Accepted Answer

Factor-driven economies are those that rely on large amounts of unskilled labor and natural resources. Egypt has a large population and a significant amount of natural resources, making it an example of a factor-driven economy.

Question 11

The pillars associated with _____ economies are institutions, infrastructure, macroeconomic stability, and health and primary education.

Accepted Answer

These pillars are typically associated with factor-driven economies, which rely on low labor and production costs and abundant natural resources for their competitive advantage.

Question 12

Chad's economy is dependent on oil reserves and is very sensitive to world economic cycles, commodity prices, and fluctuations in exchange rates.Hence, one could term this economy as an example of:

Accepted Answer

Chad's economy is primarily based on its natural resources, particularly its oil reserves. This makes it a factor-driven economy, as its economic growth is largely determined by the availability and utilization of these resources. The country may also be greatly affected by external factors such as changes in commodity prices and exchange rates, which further contribute to its classification as a factor-driven economy.

Question 13

The probability of the success of a business venture depends:

Accepted Answer

The probability of the success of a business venture depends on a combination of factors such as a good opportunity, the right entrepreneurial team, and the necessary resources and capabilities. A good opportunity alone may not lead to success if there is a lack of a capable team or sufficient resources. Similarly, having a strong team or necessary resources alone may not be enough to capitalize on an opportunity without the right opportunity. Therefore, E is the best choice as it includes all the essential factors that contribute to the success of a business venture.

Question 14

Time and motion indicators:

Accepted Answer

Time and motion indicators measure how long it takes to complete a regulatory goal, such as a production process or a service delivery. This is important for businesses to optimize their operations and efficiency. It is not related to political or economic stability, early adopters, or social culture. While it may indirectly impact factor-driven economies, it is not directly associated with them.

Question 15

A(n) _____ is an affluent individual who provides capital for a business start-up.

Accepted Answer

An angel investor is a high net worth individual who invests in early-stage start-ups, often providing capital in exchange for equity or ownership in the company. They typically invest in industries they are knowledgeable about, and often offer guidance and support to the entrepreneurs they invest in. Social entrepreneurs are individuals who start businesses with the goal of addressing a social or environmental issue, while venture capitalists are investors who provide funding to more established companies in exchange for a stake in the company. Intrapreneurs are employees within an organization who develop and launch new business ventures within the company, and small-time business owners are typically individuals who start and run small, independently owned businesses.

Question 16

_____ refer(s) to a system that ranks nations quantitatively according to a weighted index of 12 assessed pillars.

Accepted Answer

The Global Competitiveness Index (GCI) is a system that ranks nations quantitatively according to a weighted index of 12 assessed pillars. These pillars include institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labor market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation. The index is published annually by the World Economic Forum.

Question 17

Tom Peters and Robert Waterman, authors of "In Search of Excellence," identified _____ as a distinguishing feature of agile, entrepreneurial firms.

Accepted Answer

Tom Peters and Robert Waterman identified a "bias for action" as a distinguishing feature of agile, entrepreneurial firms in their book "In Search of Excellence." This means that these firms are quick to take action and make decisions, rather than getting bogged down in analysis paralysis.

Question 18

Which of the following is an example of an innovation-driven economy?

Accepted Answer

The United States is widely recognized as an innovation-driven economy due to its highly developed research and development infrastructure, abundant venture capital funding, and entrepreneurial culture. It is home to some of the world's most innovative companies, including Apple, Google, and Facebook.

Question 19

The Brazilian economy competes on production and product quality.Therefore, one could term the Brazilian economy as an example of:

Accepted Answer

An efficiency-driven economy competes on the basis of production efficiency and product quality. Brazil is known for its production efficiency in industries such as agriculture, mining, and manufacturing, which has fueled its economic growth. Therefore, B is the best choice. Factors such as natural resources and low labor costs may contribute to its competitiveness, but they are not the main driving force behind its economy. Innovation-driven economies focus on developing new technologies and products, which is not a defining feature of the Brazilian economy. Venture capitalism and bootstrapping are funding and startup strategies, respectively, and do not accurately describe the Brazilian economy.

Question 20

A(n) _____ refers to a business organization that seeks to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries.

Accepted Answer

A born-global firm is a business organization that seeks to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries. This type of firm is different from traditional internationalization models, as it starts as a global business from the beginning rather than gradually expanding into international markets.

Quiz 11: Global Entrepreneurship and Intrapreneurship