Term
| A scientist involved in top-secret research makes breakthrough discoveries that would advance the frontiers of his field. He has, however, no interest in identifying the practical uses of his findings. Does this describe an entrepreneur? |
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Definition
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Term
| ________ are individuals who create something new inside an existing company instead of through the route of founding a new venture. |
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Definition
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Term
| The entrepreneurial process usually begins when someone recognizes an opportunity. Recognizing an opportunity usually consists of: |
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Definition
| finding a useful combination of elements that already exist. |
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Term
| Full understanding of entrepreneurship can be gained only through careful consideration of: |
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Definition
| macro and micro approaches |
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Term
| Deciding to build rather than rent the buildings needed for the venture Is this part of the entrepreneurial process? |
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Definition
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Term
| Aspects of the world that can have only one value that does not change are known as: |
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Definition
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Term
| means of acquiring knowledge |
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Definition
| Observation, reflection and experimentation |
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Term
| Assume that many entrepreneurs believe that factor X causes result Y to occur. A researcher found however that factor X occurred after result Y was observed. Therefore, factor X could not have caused result Y. This approach to understanding cause and effect is known as: |
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Definition
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Term
| Focusing on the behavior and thoughts of individuals or groups of individuals to better understand the entrepreneurial process can be done through a "bottom-up" perspective, also known as the: |
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Definition
| micro perspective (The micro perspective focuses on the behavior and thoughts of individuals to better understand the entrepreneurial process.) |
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Term
| According to the text, entrepreneurship is: |
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Definition
1. a process.
2. a commitment.
3. a chain of events that takes place over time. |
|
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Term
| How many individuals are currently self-employed in the U.S.? |
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Definition
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Term
| An entrepreneur wants to explore whether a product with a blue package sells better than the very same product with a red package. The color of the package is the only thing that is changed and the product is put into test marketing to see if the blue package or red package sells more. This is known as: |
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Definition
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Term
| What does the macro level of analysis that is related to entrepreneurship include? |
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Definition
|
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Term
|
Definition
| A prediction that has not yet been tested |
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Term
| Changes in what might allow for an entrepreneurial opportunity? |
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Definition
1. Technology
2. Political conditions
3. Economy |
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Term
| What ways can an entrepreneur exploit an opportunity? |
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Definition
1. Create a new product or service.
2. Develop a new way to produce a product.
3. Find a new market for an existing product. |
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Term
| You want to start a business. What should be the first thing for you to do? |
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Definition
| Identify industries that are favorable to new firms. |
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Term
| In several states, especially Florida, Texas, California, and Arizona, Spanish speaking immigrants have created opportunities for supermarkets to carry lines of foods and have created a need for Spanish language radio stations. Which of the three major sources of opportunity is being described? |
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Definition
| Social and Demographic change |
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Term
| When considering how entrepreneurs can develop business ideas to take advantage of five different types of opportunities, what is least likely to be a major entrepreneurial opportunity? |
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Definition
| Focus on existing products and produce one very similar. |
|
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Term
| what is the knowledge conditions in an industry? |
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Definition
1. R and D intensity.
2. The locus of innovation.
3. The nature of the innovation process. |
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Term
| When companies produce the technology that can be turned into an opportunity, it is called: |
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Definition
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Term
| There are three attributes of demand conditions that are favorable to new firm formation. What are they? |
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Definition
| Market size, market growth, market segmentation |
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Term
| When the fixed cost that an entrepreneur faces when founding a new firm is amortized, the expected returns to founding a firm are ________ in a smaller market than in a larger market. |
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Definition
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Term
| The fact that there are only a few brands of adhesive tape targeted to different types of buyers, but there are many brands of clothing targeted to different buyers is an example of: |
|
Definition
| industries differing in their degree of market segmentation. |
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Term
| The fact that there are only a few brands of adhesive tape targeted to different types of buyers, but there are many brands of clothing targeted to different buyers is an example of: |
|
Definition
| industries differing in their degree of market segmentation. |
|
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Term
| categories of users, or adopters, which type tends to be largest? |
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Definition
| People who adopt the product in the "middle of the curve." |
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Term
| New firms do much better when industries are: |
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Definition
| young than when they are older. |
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Term
| What is NOT one of the four aspects of the structure of an industry that make it easier for a person to found a successful new firm? |
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Definition
| Experience of the founder of the business that is being started. |
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Term
| 3 examples of an advantage that an established firm has over a new firm. |
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Definition
1. Companies face a learning curve when they develop any product or service.
2. Business depends a great deal on reputation.
3. Many businesses face economies of scale. |
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Term
| What condition makes starting a new company easiest? |
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Definition
| An industry that has many segmented markets |
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Term
An entrepreneur came up with an idea that has a high potential to create something new for which customers
would pay. What process does this refer to? |
|
Definition
|
|
Term
|
Definition
| the mental processes through which we acquire information, enter it into storage, transform it, and use it to accomplish a wide range of tasks. |
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|
Term
| Which type of memory holds a limited amount of information for brief periods of time? |
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Definition
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|
Term
| A dancer is performing a long dance, relying on memory to get every movement right. This is an example of: |
|
Definition
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|
Term
| What is a cognitive framework representing knowledge and assumptions about specific aspects of the world? |
|
Definition
|
|
Term
|
Definition
| simple rules for making complex decisions or drawing inferences in a rapid and seemingly effortless manner. |
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Term
| For something to be considered a result of creativity, it must be: |
|
Definition
|
|
Term
| What is consistent with the field of cognitive science? |
|
Definition
| That basic cognitive processes underlie creative thought. |
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|
Term
The confluence approach states that creativity can emerge out of the convergence of several basic resources,
including: |
|
Definition
1. intellectual abilities.
2. a broad and rich knowledge base.
3. an appropriate style of thinking. |
|
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Term
| The most useful way of gaining a broad and rich knowledge base from the point of view of becoming an entrepreneur is: |
|
Definition
a. having varied work experience.
b. having lived in many different places.
c. having a broad social network. |
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Term
Assume that when you hear the phrase "military aircraft," you visualize certain types of airplanes. What
cognitive framework are you using when you recall the types of airplanes? |
|
Definition
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|
Term
A person is making a complex decision. The person is relying heavily on some information she remembers,
even though it might not be very accurate. Relying on that information represents: |
|
Definition
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|
Term
The people who develop new drinks at Starbucks study such things as popular colors, popular cars, and
popular clothes to get ideas when they create new drinks. This approach represents: |
|
Definition
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|
Term
People tend to use simple rules, or "rules of thumb," as guides in making decisions. These simple rules are
known as: |
|
Definition
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Term
| 1 I am thinking about starting a new business. Which of the following types of information do I need to know? |
|
Definition
Government regulations related to the type of products that I want to produce.
b. Marketing information related to the products that I want to produce.
c. Information regarding various laws that strongly affect all businesses. |
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|
Term
Most people have a tendency to pay more attention to information that agrees with a belief or preference that
they have, paying less or no attention to information that disagrees. This is known as: |
|
Definition
|
|
Term
| There are several techniques for obtaining useful marketing information, including: |
|
Definition
1. Customer Surveys
2. Perceptual mapping
3. Focus groups |
|
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Term
A technique used in a focus group to help identify the key dimensions along which focus group members
perceive and evaluate various products is know as: |
|
Definition
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|
Term
In preparing to start a business, an entrepreneur is studying information about potential customers and how
they might react to a certain product. The entrepreneur is studying which type of information? |
|
Definition
|
|
Term
| How might governmental policies and regulations affect a new business? |
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Definition
1. They might make it easier to run a new business.
2. They might make it harder to run new ventures |
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Term
A person owns shares of stock in a corporation. The profits and losses are paid to the shareholders who pay
any taxes due as individuals, according to their own tax bracket. Which type of corporation is this? |
|
Definition
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|
Term
| For which of the following reasons might a state government offer tax incentives to companies? |
|
Definition
1. Locating in certain geographic regions.
2. Choosing to renovate and improve older buildings that have been designated as having historical significance.
3. For research and development activities that are directed towards discovering information that is technological in nature. |
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Term
Which U.S. government program has a goal of helping minority-owned businesses enter the economic
mainstream by encouraging federal agencies to award a certain percentage of their contracts to what are
known as small, disadvantaged businesses? |
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Definition
| Business development program |
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Term
| What program has a goal of increasing economic life in a disadvantaged geographical area? |
|
Definition
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|
Term
| What factor usually affects the success of a new business venture? |
|
Definition
1. Knowledge and Skills
2. Social networks
3. Talents |
|
|
Term
| When two people are alike on various dimensions what usually occurs? |
|
Definition
| They feel like they know each other better |
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|
Term
While there may be numerous disadvantages to choosing a business partner based on similarity, the authors
of the textbook say that the most serious is: |
|
Definition
|
|
Term
In the "Big Five," the extent to which a person is hardworking, organized, dependable, and persevering is
defined as: |
|
Definition
|
|
Term
| Extraversion, one of the "Big Five" dimensions, is: |
|
Definition
| the degree to which individuals are gregarious, assertive, and sociable versus being reserved, timid, and quiet. |
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Term
As I run my small business, I regularly attend meetings and functions in the community because I like to see,
and speak with, the people whom I know in other businesses and government positions. These people are
my: |
|
Definition
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|
Term
Assume you want to start a business so you make a list of all the people you know who might have
information, contacts, or who might be able to help you in some way. You are making a list of your: |
|
Definition
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|
Term
Assume that after completing one assignment in a class with a high grade, you concluded it was because of
your studying. On another assignment, the grade was low and you concluded it was because the assignment
was not written well. You are exhibiting: |
|
Definition
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|
Term
I have a tendency to attribute successful outcomes to my own skills but unsuccessful ones to other people or
things. This is known as: |
|
Definition
|
|
Term
| What interferes with good constructive criticism? |
|
Definition
| Criticism is focused on personal faults of the recipient. |
|
|
Term
| A result of hiring temporary employees is that they: |
|
Definition
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|
Term
In giving feedback to an employee, a supervisor says, "The goal is to make fifty of these products per hour
with no defects. Over the last week, you have made about forty products per hour with no defects. We need
to find a way for you to make fifty." This feedback, or criticism, is: |
|
Definition
|
|
Term
| Venture capital can provide advantages to entrepreneurs in which of the following ways? |
|
Definition
| It can add credibility to a new business. |
|
|
Term
Which of the following is a common problem that investors have when they invest in a new business started
by an entrepreneur? |
|
Definition
| Entrepreneurs might have information that investors don't have and the entrepreneurs can use this to obtain investments that they might use for their own benefit. |
|
|
Term
An investor is considering two new businesses but wants to invest in only one. The investor is going to
decide which one based upon an assessment of the entrepreneurs in each business. However, the investor
seems to be unable to distinguish between the two entrepreneurs in terms of which one has the desired
qualities and which one doesn't. This is known as: |
|
Definition
|
|
Term
| In starting a new business, which of the following questions is the least important for an entrepreneur to ask? |
|
Definition
| What should my salary be? |
|
|
Term
What can be used by an entrepreneur to help determine how much money will be needed to
start a new business? |
|
Definition
|
|
Term
| a. Proforma income statements estimate the profit and loss for the new business. True or False? |
|
Definition
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|
Term
Assume that an investor will provide money for your new business only if she can get the money back when
she wants it. This is known as: |
|
Definition
| mandatory redemption right. |
|
|
Term
|
Definition
| is defined as total assets divided by total debt. |
|
|
Term
Several investors have formed a small group to pool a relatively small amount of money from each investor
to invest in each of 15 different businesses. This is known as: |
|
Definition
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|
Term
Which of the following can be used to estimate the amount of cash that a business will need over a certain
period of time? |
|
Definition
|
|
Term
What is the name of the program that is designed to help guarantee loans to new and small businesses to
finance inventory or accounts receivables? |
|
Definition
|
|
Term
| An investor is performing due diligence before investing in a new business. What does that mean? |
|
Definition
The investor is checking out essentially all aspects of the new business to see if they are reasonable
and to see if everything is "in order." |
|
|
Term
Assume that an investor will provide money for you to start a business only if you will agree to giving the
investor the right to approve any purchase totaling $10,000 or more. This is known as a: |
|
Definition
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