Question 1

The ideal ________ has strength in both creativity and management.

Accepted Answer

An entrepreneur is someone who starts and runs a business, which requires both creativity (in developing the concept and product/service) and management skills (in running the operations and finances). Administrators, promoters, and inventors may excel in one area but may not have the balance of both creativity and management that is necessary for entrepreneurship.

Question 2

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

Accepted Answer

Administrators are individuals who possess strong management skills, specific business know-how, and the ability to organize people. They are responsible for overseeing the day-to-day operations of a business, setting goals, creating budgets, developing marketing strategies, and leading teams. While promoters, inventors, and innovators are all important contributors to the success of a business, they may not have the same level of management expertise as administrators.

Question 3

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 4

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

Accepted Answer

Administrators are known for their ability to maintain and improve existing systems, rather than creating new ones. They are typically highly organized and detail-oriented, with a focus on efficiency and productivity.

Question 5

___________ 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 examining demographic and other broad trends to develop relevant and useful ideas. Mental invention involves generating new and creative ideas without necessarily following trends. Market research involves gathering information about consumers and their behaviors to inform product development. Solution spotting involves identifying problems and developing solutions to them.

Question 6

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 the funds borrowed from banks or other financial institutions that need to be repaid with interest over a specific period. Most new ventures find it hard to get patient money, which refers to long-term financing from investors who do not expect a quick return on investment. Friendly sources and equity financing may not always be available or feasible options for new entrepreneurs, making debt capital the best choice for funding their venture. Gradually building a relationship with a commercial lender can be beneficial for future financing needs as well.

Question 7

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

Accepted Answer

Disruptive innovations are often considered inferior in mainstream markets but offer new features or capabilities that appeal to niche customer groups.

Question 8

__________ 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

Promoters are focused on short-term gains rather than long-term business building. They are skilled at creating marketing schemes or programs to boost sales without necessarily considering the long-term sustainability of the business. Administrators are more focused on managing and organizing the day-to-day operations of a business, while inventors and entrepreneurs are typically focused on creating new products or services and building a successful business around them.

Question 9

Incremental business process innovations can:

Accepted Answer

Incremental business process innovations are small and gradual improvements made to current processes, which are implemented to increase efficiency and productivity, reduce costs, and enhance customer satisfaction. They are less disruptive than radical innovations and involve lower risks. However, incremental innovations can also generate substantial revenue gains or cost savings for the company. Therefore, option B is the best choice as it states that incremental innovations can generate more revenue gain or cost savings with less risk than radical innovations.

Question 10

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

Accepted Answer

Market research involves collecting data through traditional research techniques such as surveys, focus groups, and interviews to identify customer needs and preferences, which can lead to new product or service ideas. Option A (Need spotting) is similar to market research but is more focused on identifying specific gaps or problems that can be addressed with a new product or service. Option B (Mental invention) refers to the ideation process where ideas are generated through brainstorming or creative thinking, while option C (Solution spotting) involves identifying existing problems and finding innovative solutions to solve them.

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 is the only choice that encompasses bringing together creative ideas with management and organizational skills to create wealth. Market speculation is focused on taking risks with financial investments, venture capitalism is focused on investing in start-ups or early stage companies, and franchising is a form of business expansion through licensing.

Question 12

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 13

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

Accepted Answer

Crowdsourcing and open innovation are commonly referred to as ideagoras. This term refers to a marketplace for ideas, where participants can share and collaborate on ideas with others. Disruptors refer to companies or individuals who disrupt traditional business models or industries, sustainers refer to those who maintain or preserve existing systems, and golddiggers refer to individuals who are primarily motivated by financial gain. None of these terms specifically relate to crowdsourcing or open innovation.

Question 14

_________ 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 providing money to a business venture in exchange for ownership or equity in the venture. The provider of equity financing is not expecting the money to be repaid, but rather hopes to earn a return on their investment through the success and growth of the company.

Question 15

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

Accepted Answer

Entrepreneurship involves a wide range of skills, such as creativity, risk-taking, strategic thinking, financial acumen, and communication. Since it is rare to find an individual who excels in all of these areas, entrepreneurship often involves a team of people who can complement each other's strengths. Adminstration, invention, and promotion may also benefit from teamwork but do not necessarily require it to the extent that entrepreneurship does.

Question 16

Tweaking a business process does not incur much:

Accepted Answer

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

Question 17

_________ 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 18

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 knowledge and skill necessary to create the products or services the new venture will provide. Social skills, marketing competence, and vision and capacity to inspire are all important traits for an entrepreneur, but they are not directly related to the ability to create the products or services.

Question 19

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

Accepted Answer

Inventors are people who are exceptional for their technical talents, insights, and creativity in creating new inventions or products. However, their creations may not always be successful in becoming commercial realities as they may lack the skills required for marketing and commercializing their inventions. Marketers are responsible for promoting and selling existing products or services, while innovators and intrapreneurs are more focused on improving and creating new products or services within an established organization.

Question 20

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

Accepted Answer

In joint ventures, two or more firms collaboratively work together to develop and market a new product or service. By doing so, they share the costs and risks associated with the effort. This allows firms to leverage their unique strengths, capabilities, and resources, and bring new innovations to market more efficiently and effectively. Acquisitions and mergers involve one company buying or merging with another company, whereas joint strategy may involve collaboration but does not necessarily involve sharing costs and risks.

Quiz 14: Innovation and Entrepreneurship