Deck 4: Seeking Opportunity

Question 1

Historically, women have been under-represented in the entrepreneur population.

Answer 1

True

Question 2

A great team with a mediocre idea is better than a mediocre team with a great idea.

Answer 2

True

Question 3

Early majority users fall in the first half of the total set of an innovation's users, and compared to innovators, tend to be less responsive to technological or innovative content, and more responsive to practical features and credibility.

Answer 3

True

Question 4

Innovators are similar to the majority of an innovation's users and are willing to help the producers improve their product/service/experience.

Question 5

Large firms provide most of America's new innovations.

Question 6

Large firms provide most of America's new jobs.

Question 7

Small firms generally lack the experience, industry recognition, and customer
familiarity that larger firms command.

Question 8

Initial public offerings (IPOs) sell stock in a new venture to individual and institutional investors.

Question 9

Skunkworks are independent units in larger organizations that are temporarily given autonomy to develop new ideas.

Question 10

First movers always win out over second movers.

Question 11

Most individuals have all of the skills and knowledge necessary to maximize the chances of success for a new venture.

Question 12

An incremental innovation is a significant departure from currently available product or service offerings.

Question 13

Utilitarian resources are not directly required to produce a good or service, but are helpful for acquiring needed resources.

Question 14

Product innovations do not change the offering itself, but change the way in which the organization operates.

Question 15

Laggards are the users in a community who are slowest to adopt a new product.

Question 16

Minnesota-based 3M provides each engineer with 15% of his/her time to develop new products.

Question 17

Initiatives that are intended to improve the deployment of the organization's resources by improving processes or entering adjacent market niches, for example, require more conventional roles in which top management directs, middle managers implement and operating management conforms to the established game plane.

Question 18

A corporate new venture can be developed separately from the structure, systems, controls or culture of the parent organization in order to promote corporate entrepreneurship.

Question 19

Ambidextrous organizations manage the inconsistent demands of supporting current businesses while developing new entrepreneurial opportunities.

Question 20

Structural isolation always requires a separate business unit.

Question 21

Which of the following is not true about the Crocs strategy?

A) Acquired the factories and suppliers of the resin material
B) Filed (and won) lawsuits against imitators
C) Pursued a high-cost differentiation model
D) Developed models for consumers with certain health needs

Question 22

Which of the following is the best example of a "blue ocean" strategy?

A) Cirque du Soleil
B) Google
C) Crocs
D) Heart Zones

Question 23

Which of the following is least necessary for a new business idea to be viable?

A) Attractive
B) Low capital requirement
C) Attainable
D) Value-creating

Question 24

What is the average failure rate of businesses after ten years?

A) 10%
B) 45%
C) 75%
D) 90%

Question 25

What percentage of Fortune 100 firms started with less than $100,000?

A) 10%
B) 45%
C) 75%
D) 90%

Question 26

Which of the following is true about the Body Shop?

A) Founded by Gordon Roddick
B) Began with a large product line
C) Current CEO is Anita Roddick
D) Recently bought by L'Oreal

Question 27

Which of the following is usually not the first stage of new venture funding?

A) Personal finance
B) Angel investor
C) Venture capitalist
D) Initial Public Offering

Question 28

Which of the following is not a category of firm customers?

A) Innovators
B) Inventors
C) Early adopters
D) Early majority users

Question 29

Which of the following is not true about Jeff Bezos?

A) Started Amazon with a $300,000 loan from his parents
B) Began in the garage of a rented two-bedroom house in a Seattle suburb
C) Within the first 30 days, sold books in 50 states and forty-five countries
D) Turned a profit in company's first year

Question 30

Which of the following is a characteristic of entrepreneurs?

A) High replication
B) Low tolerance for ambiguity
C) Low perseverance
D) Positive attitude towards risk

Question 31

A __________ entrepreneur starts a number of entrepreneurial efforts over time.

A) Proactive
B) Serial
C) Social
D) Transformational

Question 32

Which of the following is not a component of an organization's entrepreneurial orientation?

A) Autonomy
B) Innovativeness
C) Proactiveness
D) Synchronicity

Question 33

What percentage of a firm's development portfolio consists of incremental innovations?

A) 1-5%
B) 10-15%
C) 50-55%
D) 85-90%

Question 34

What advantage do second movers have over first movers?

A) Being the first to market
B) Defining the characteristics of an innovation in the minds of buyers
C) Gaining name recognition and brand loyalty
D) Learning from successes and failures

Question 35

Which of the following is not a type of entrepreneurial risk?

A) Business
B) Corporate
C) Financial
D) Personal

Question 36

_______ is the time sensitive match between the entrepreneur's recognition of opportunity and occurrence of market need.

A) Feasibility
B) First mover
C) Synchronicity
D) Utility

Question 37

What is the typical range of venture capital investments?

A) $50 - $5,000
B) $50,000 - $500,000
C) $500,000 - $5 million
D) $50 million - $500 million

Question 38

Which of the following is a benefit of corporate entrepreneurship?

A) Existing resources
B) Low failure rates
C) Core rigidities
D) Inertia

Question 39

Which of the following is true of ambitious or radical corporate entrepreneurship efforts?

A) Intent is to develop incremental competencies or capabilities.
B) Operating managers do not experiment with new ideas.
C) All projects are approved.
D) Champions help to stimulate allocation of capital and required cooperation.

Question 40

_________ strategy attempts to optimize current performance while simultaneously preparing for strategic changes that are expected to be necessary in the future.

A) Dual
B) Radical
C) Skunkworks
D) Utilitarian

Question 41

What are the signals of opportunity development capacity?

Question 42

What are the processes of opportunity development?

Question 43

What are the differences between small firm and corporate entrepreneurship?

Question 44

What is the difference between a utilitarian and an instrumental resource? Provide an example of each.

Question 45

Explain the s-curve of product adoption.

Question 46

What are some of the advantages of developing a venture with an entrepreneurial team?

Question 47

Define and describe four sources of new venture financing.