Question 1

Deanna leaves her job at a refrigerator manufacturing company and starts her own business. Her objective is to attain maximum growth and earn high profits. Deanna's friend Callie still works at the refrigerator manufacturing company, where she has started a business venture utilizing the company's resources. Gus, her colleague, states that he would make a successful entrepreneur because he is a gambler and believes that a good idea and talent lead to success within a year.By leaving her job and starting her own business, Deanna has become a(n)

Accepted Answer

Deanna is an entrepreneur because she has started her own business with the objective of attaining maximum growth and earning high profits. She is taking financial risks and creating something new in the market. Choice A, business incubator, refers to a company or organization that provides resources and support to help start-ups grow. Choice C, intrapreneur, refers to an employee who takes on an entrepreneurial role within a company. Choices D and E, horse trader and bootlegger, are not relevant to the scenario.

Question 2

Successfully fostering and managing intrapreneurship requires the company to

Accepted Answer

Intrapreneurship involves taking risks and attempting new ventures within a company. To successfully foster and manage intrapreneurship, it is important to reward risk taking, as this encourages employees to take initiative and come up with innovative ideas. Discouraging bootlegging (the unauthorized development of projects) and minimizing competition can also help to establish a supportive environment for intrapreneurship. However, focusing on one project or managing many small projects may not necessarily be the best approach, as the goal of intrapreneurship is to encourage employees to explore multiple ideas and take risks.

Question 3

________ are project teams designated to produce a new product.

Accepted Answer

Skunkworks are project teams designated to produce a new product, typically working in secrecy and with a high degree of autonomy from the parent company. Bootleggers, intrapreneurs, affiliates, and incubators are not necessarily focused solely on producing a new product.

Question 4

"Horse trading," "making cheerleaders," "getting the blessing," and "clearing the investment" are the steps in

Accepted Answer

"Horse trading," "making cheerleaders," "getting the blessing," and "clearing the investment" are all steps in building support for an intrapreneurial (internal entrepreneurial) idea within a company. "Opportunity analysis and business planning" is a broader process that may include some of these steps, but is not solely focused on building support within a company. "Patent development and processing" is a specific process related to intellectual property, and "external strategic alliance formation" and "creating a corporate partnership" are focused on forming partnerships with outside companies, which may involve some similar steps but are not the same as building support within one's own company.

Question 5

Veronica, a manager, has a new project idea. Before she begins building support for her idea, she begins by ________, which is explaining the idea to her boss to get his approval to seek wider support.

Accepted Answer

The answer of Veronica, a manager, has a new project...

Question 6

People who have an entrepreneurial orientation tend to

Accepted Answer

Individuals with an entrepreneurial orientation tend to be innovative, looking for new opportunities and ways to improve existing products or services. They are not necessarily cautious, reactive, aggressive or dependent, so options A, C, D and E are incorrect.

Question 7

The tendency of an organization to engage in activities designed to identify and capitalize successfully on opportunities to launch new ventures by entering new or established markets with new or existing goods or services is called

Accepted Answer

The tendency described is a characteristic of an entrepreneurial orientation, which emphasizes innovation, risk-taking, and proactivity in seeking out and exploiting new opportunities. The other options do not accurately reflect this concept.

Question 8

Malia works in the software development team for a large corporation. Her employer encourages employees to pursue new ideas on company premises, and therefore she has a side project involving applications for small kitchen appliances. In this scenario, Malia's employer appears to support

Accepted Answer

Bootlegging refers to employees working on projects, often innovative, on their own initiative, sometimes without formal approval, but within the company's premises and resources.

Question 9

Louise and Cecile want to start an online matchmaking service. They decide who will assume the various roles in the company, evaluate who their target customers will be, research their competitors and how they will differentiate themselves, assess the financial and regulatory issues they might expect to face, and anticipate the future risks they might encounter. Which of the following situations is most likely to happen as a result of Louise and Cecile forgetting to include certain elements in their business plan?

Accepted Answer

If Louise and Cecile forget to decide how to get their message out to customers, they will have a difficult time reaching their target audience and generating interest in their matchmaking service. This could ultimately lead to failure of their business.

Question 10

Sarah, like Progressive Solutions, Inc., the company that employs her, has an entrepreneurial orientation. Recently, she was delighted to learn that Progressive Solutions' executives had anticipated a future market, recognized their lack of a technology to exploit that market, and had acquired exclusive rights to license a technology that would, in two years, put them in a premier competitive position in that market. Sarah admires her employer's ________ in anticipating future problems and opportunities.

Accepted Answer

Proactiveness refers to a company's ability to anticipate future problems and opportunities and take action to address them. In this case, Sarah's employer, Progressive Solutions, has demonstrated proactiveness by identifying a future market and acquiring the necessary technology to remain competitive in that market. Therefore, option C is the best choice.

Question 11

Deanna leaves her job at a refrigerator manufacturing company and starts her own business. Her objective is to attain maximum growth and earn high profits. Deanna's friend Callie still works at the refrigerator manufacturing company, where she has started a business venture utilizing the company's resources. Gus, her colleague, states that he would make a successful entrepreneur because he is a gambler and believes that a good idea and talent lead to success within a year.Gus's beliefs are some examples of the ________ of entrepreneurship.

Accepted Answer

Gus's beliefs about entrepreneurship being a gamble and relying solely on a good idea and talent leading to quick success are examples of myths about entrepreneurship.

Question 12

While building support for one's idea, getting together people who will offer support before formal approval from higher levels is known as

Accepted Answer

Making cheerleaders refers to the process of gathering support from others for an idea or project before seeking formal approval from higher authorities, ensuring a base of support that can help in getting the idea approved.

Question 13

The first step to building organizational support for an intrapreneur's idea that involves explaining the idea to his or her boss and seeking approval to look for wider support is called

Accepted Answer

The answer of The first step to building organizational support...

Question 14

The most dangerous risk in corporate entrepreneurship is possibility of

Accepted Answer

Relying too heavily on a single large project can be risky because if that project fails, it could have a significant negative impact on the company's finances and reputation. It's important to diversify investments and work on multiple projects to spread the risk. Supporting innovative and creative behaviors, working on underfunded projects, tolerating and encouraging bootlegging, and rewarding risk takers can all be beneficial for corporate entrepreneurship if managed appropriately.

Question 15

Marcia decides to offer one of her subordinates, Pierre, his pick of tasks on a new project in exchange for his vocal support of it at an upcoming meeting. In this case, Marcia is

Accepted Answer

Marcia is engaging in horse trading, which is the act of exchanging favors or promises in order to gain support or achieve a desired outcome. She is offering Pierre his choice of tasks in exchange for his vocal support at the meeting.

Question 16

Chang works as a materials scientist for a paint manufacturer. He has developed a material that does not work well in paint, but it could have applications as a deck sealant. Chang has been made the team lead for a group of scientists tasked with determining some marketable uses for the new material. The group could be referred to as

Accepted Answer

The term "skunkworks" refers to a group within a company that is given the freedom and resources to work on innovative projects outside of the normal company structure. In this case, Chang's team is tasked with finding new uses for a material that was not originally intended for the paint industry, making them a good example of a skunkworks team.

Question 17

Katrina, Vice President of Marketing for a yacht manufacturer, has developed a radically different marketing strategy. Before she presents the idea to the CEO, she first consults with the other vice presidents to get their input and support. This step in building support for an idea is known as

Accepted Answer

Making cheerleaders involves seeking the support and endorsement of others within the organization to build momentum and consensus for an idea or initiative. By consulting with other vice presidents, Katrina is effectively turning them into advocates or "cheerleaders" for her marketing strategy.

Question 18

Deanna leaves her job at a refrigerator manufacturing company and starts her own business. Her objective is to attain maximum growth and earn high profits. Deanna's friend Callie still works at the refrigerator manufacturing company, where she has started a business venture utilizing the company's resources. Gus, her colleague, states that he would make a successful entrepreneur because he is a gambler and believes that a good idea and talent lead to success within a year. Deanna's business would be considered an example of

Accepted Answer

Deanna's business venture where she is starting her own business to attain maximum growth and earn high profits is an example of entrepreneurship.

Question 19

Which of the following stages for building support for an idea involves guaranteeing the project's technical and political feasibility, often with a formal presentation to higher management?

Accepted Answer

"Getting the blessing" involves ensuring the project's technical and political feasibility, often culminating in a formal presentation to higher management to gain their support and approval.

Question 20

________ refers to informal efforts, as opposed to official job assignments, in which employees work to create new products and processes of their own choosing and initiative.

Accepted Answer

Bootlegging refers to the informal efforts by employees to develop new products or processes on their own initiative, outside of their official job assignments. This term captures the essence of employees working "under the radar" to innovate or solve problems without explicit organizational approval or resources.

Quiz 7: Entrepreneurship