Question 1

A(n) ________ is an enterprise having fewer than 500 employees, independently owned and operated, not dominant in its field, and not characterized by many innovative practices.

Accepted Answer

The description fits the definition of a small business, which is an enterprise with fewer than 500 employees, independently owned and operated, not dominant in its field, and not characterized by many innovative practices. Nonprofit organizations are not necessarily small businesses, and greenfield ventures and entrepreneurial ventures typically have a focus on innovation and growth. Incubators are entities that help support and grow startups, but are not themselves small businesses.

Question 2

In the context of the entrepreneurial strategy matrix, most small business ventures are in the lower right quadrant where innovation is low and risk is high.

Accepted Answer

True

Question 3

Identify the correct statement regarding entrepreneurship.

Accepted Answer

Entrepreneurs often experience stress due to the demands of running a business, but they also tend to have high job satisfaction because they are pursuing their passion and have control over their work.

Question 4

Tomas was a manager at a company that produced household appliances. He had many innovative ideas to increase profits. However, his ideas were not received well by the company. So, he left the company to pursue his own business, thus creating a(n)

Accepted Answer

Tomas leaving the company to pursue his own business indicates that he started a new venture, which is an entrepreneurial venture.

Question 5

A small business differs from an entrepreneurial venture.

Accepted Answer

A small business is usually focused on maintaining a steady income and serving existing customers, while an entrepreneurial venture usually involves creating something new and innovative with the potential to grow and expand rapidly.

Question 6

________ are new venture creators working inside big companies; they are corporate entrepreneurs, using their company's resources to build a profitable line of business based on a fresh new idea.

Accepted Answer

Intrapreneurs are individuals who work within a company and act as entrepreneurs, developing new projects, products, or processes within the organization. They are responsible for innovating and creating new business ventures that can lead to increased profits for the company.

Question 7

Social capital refers to being part of a social network and having a good reputation.

Accepted Answer

Social capital is the set of resources that come from being part of a social network and having a good reputation within that network. These resources can include information, support, and access to opportunities.

Question 8

Frances recently started her own business. She has nearly recreated a company she worked for previously. She is innovative and has great management skills and has been able to run her business efficiently and profitably. Frances is a(n)

Accepted Answer

Frances is an entrepreneur, as she has started her own business with innovative management skills and has been able to run it efficiently and profitably. An intrapreneur is an employee who works within an existing organization to develop and implement new ideas, while a promoter creates a buzz around a product or service. A manager oversees the day-to-day operations of a business, but may not necessarily be the owner or founder. An inventor, on the other hand, creates new products or technologies.

Question 9

An entrepreneur is NOT a manager but engages in additional activities that all managers do.

Accepted Answer

Entrepreneurs can be managers as well, especially in the early stages of their ventures, where they often take on managerial roles in addition to their entrepreneurial responsibilities.

Question 10

A(n) ________ is a new business having growth and high profitability as primary objectives.

Accepted Answer

An entrepreneurial venture is a new business that seeks growth and high profitability as primary objectives. This type of business is typically characterized by innovation, risk-taking, and a strong desire to create something new and valuable in the marketplace. The other answer choices are not directly related to the definition of an entrepreneurial venture.

Question 11

________ is the process by which enterprising individuals initiate, manage, and assume the risks and rewards associated with a business.

Accepted Answer

Entrepreneurship is the only choice that accurately describes the process of creating and managing a new business venture, including the assumption of financial risks in hopes of achieving financial and personal success. A start-up, partnership, incubator, and joint venture are all related to the process of entrepreneurship, but only entrepreneurship accurately encompasses the entire process of creating and developing a new business.

Question 12

From the profiles below, identify the person who is most likely to become a successful entrepreneur .

Accepted Answer

Percy has a strong social network, enjoys challenges, possesses excellent business skills, and has good knowledge of management techniques. These traits are all important qualities of successful entrepreneurs. Additionally, Percy's strong social network can help with networking and building connections in the business world.

Question 13

________ is the pursuit of lucrative opportunities by enterprising individuals under conditions of uncertainty.

Accepted Answer

Entrepreneurship is the pursuit of lucrative opportunities under uncertain conditions. It involves taking calculated risks, being innovative, and creating value for customers. Sugging refers to a deceptive sales practice, bootlegging refers to the unauthorized production or distribution of goods, skunkworks refers to a group within a company that works on innovative projects in secrecy, and incubation refers to the process of developing and nurturing new business ideas.

Question 14

________ involves creating new systems, resources, or processes to produce new goods or services and/or serve new markets.

Accepted Answer

Entrepreneurship involves identifying and creating new business opportunities through the development of new systems, processes or resources to produce new goods or services that serve new markets. This can involve taking risks and innovating to create something new and valuable. Advertising, micropayment, profiteering, and transporting are not necessarily related to creating new businesses or markets.

Question 15

Choose the statement that is true of entrepreneurship.

Accepted Answer

Successful entrepreneurship involves taking calculated risks and making strategic decisions rather than relying on luck or talent alone. While entrepreneurs can have more independence and control over their work, it is not a guaranteed path to wealth or leisure time. Venture capital is also not guaranteed for anyone with a good idea, as investors will carefully evaluate the potential for success and profitability.

Question 16

A common entrepreneurial malady is an aversion to record keeping.

Accepted Answer

Many entrepreneurs are focused on the creative and visionary aspects of running a business, and may feel that record keeping and accounting tasks are tedious or unimportant. However, proper record keeping is essential for tracking income, expenses, and financial performance, and is necessary for making informed decisions and meeting legal requirements.

Question 17

When working for a software company, and because Tomas is a(n) ________, he created a new venture based solely on his idea while using his company's proprietary technology.

Accepted Answer

An intrapreneur is an employee who applies entrepreneurial mindset and principles within a company to create new products, services or processes. In this scenario, Tomas is an intrapreneur who has created a new venture using his company's proprietary technology.

Question 18

________ use networks of contacts more than formal authority.

Accepted Answer

Entrepreneurs typically rely on their networks of contacts, such as mentors, advisors, and other business owners, to gain information, resources, and opportunities, rather than solely relying on formal authority. Managers may also use networks, but they typically have more formal authority within established organizations. Small businesses, franchisees, and franchisors may use both formal authority and networks to varying degrees.

Question 19

Organizations that encourage intrapreneurship face the obvious risk that this effort can fail.

Accepted Answer

Intrapreneurship involves taking risks and trying new things within an established organization, which means there is always a risk that the effort will fail.

Question 20

A common myth about entrepreneurship is that "Any entrepreneur with a good idea can ________ to fund his/her business."

Accepted Answer

Raising venture capital is a popular way for entrepreneurs to secure funding for their business ideas. However, it is not a guarantee and many other factors, such as market demand and competition, also play a role in determining the success of a business. Going public, using a skunkworks, using formal control systems, and starting a franchise are all potential options for entrepreneurs, but they may not be applicable or feasible for every business idea.

Quiz 6: Entrepreneurship