Question 1

Which of the following are concerns for an entrepreneur during the pursuit of an opportunity?

Accepted Answer

A)  Technical uncertainty. 
B)  Competitive uncertainty. 
C)  Market uncertainty. 
D)  Information asymmertry. 
E)  All of the above are concerns. 
A)  Technical uncertainty. 
B)  Competitive uncertainty. 
C)  Market uncertainty. 
D)  Information asymmertry. 
E)  All of the above are concerns. E

Question 2

An entrepreneur obtained money from investors in order to start a business. One of the early things that the entrepreneur did was to buy a new sports car,something she always wanted. This action represents

Accepted Answer

A)  first mover advantage. 
B)  moral hazard. 
C)  self-efficacy. 
D)  franchising. 
E)  nondisclosure agreement. 
A)  first mover advantage. 
B)  moral hazard. 
C)  self-efficacy. 
D)  franchising. 
E)  nondisclosure agreement. B

Question 3

List,describe,and provide an example of the two most common market-based modes of opportunity exploitation.

Accepted Answer

Licensing and franchising are the two most common market-based modes of opportunity exploitation. Licensing is a mode of business in which a person contracts with another to use the latter's business ideas to make products and services for sale to customers in return for a fee. An example of licensing is when a patented product can be sold by another firm as long as it pays the licensing fee to sell that product or service idea. Franchising refers to a situation where an individual person,the franchiser,develops a plan for the provision of a product or service to end customers. An example of a franchise is Kentucky Fried Chicken. Anyone can open one of these as long as he or she agrees to the terms of the franchiser.

Question 4

Through advertisements and word of mouth,Xerox has established a mindset in which consumers believe Xerox is the best copier machine company in the United States. This mindset will keep customers from defecting to its competitors. To which type of competition barrier does this refer?

Accepted Answer

A)  Control of Resources. 
B)  Legal Barriers to Imitation. 
C)  Reputation. 
D)  Innovation. 
E)  Marketing Advantage. 
A)  Control of Resources. 
B)  Legal Barriers to Imitation. 
C)  Reputation. 
D)  Innovation. 
E)  Marketing Advantage.

Question 5

Which of the following is a reason why entrepreneurs use market mechanisms to exploit opportunity?

Accepted Answer

A)  Accelerate the pace of exploitation. 
B)  Minimize adverse selection. 
C)  Minimize shirking by employees. 
D)  To escape defeat by competitors. 
E)  All of the Above. 
A)  Accelerate the pace of exploitation. 
B)  Minimize adverse selection. 
C)  Minimize shirking by employees. 
D)  To escape defeat by competitors. 
E)  All of the Above.

Question 6

Which of the following could an entrepreneur use to make it more difficult for some other business to exploit the same opportunity that the entrepreneur has?

Accepted Answer

A)  Use legal means to block imitation. 
B)  Control resources that are needed to exploit the opportunity. 
C)  Develop loyal customers. 
D)  All of the above (a, b, and c) are correct. 
E)  A and b are correct. 
A)  Use legal means to block imitation. 
B)  Control resources that are needed to exploit the opportunity. 
C)  Develop loyal customers. 
D)  All of the above (a, b, and c) are correct. 
E)  A and b are correct.

Question 7

An entrepreneur needs a comprehensive plan of action in order to achieve overall success. That is,the entrepreneur needs a

Accepted Answer

A)  bankruptcy. 
B)  license. 
C)  strategy. 
D)  monopoly. 
E)  None of the Above. 
A)  bankruptcy. 
B)  license. 
C)  strategy. 
D)  monopoly. 
E)  None of the Above.

Question 8

One way to deal with uncertainty in starting a new business is to start on a small scale.

Accepted Answer

A) True 
 B)False

Question 9

In order to protect information about trade secrets,an entrepreneur required all of the employees of the business to sign a contract that said they would not discuss these secrets with anyone outside of the business,and this requirement would continue for a certain period after they left the business. This type of contract is known as a

Accepted Answer

A)  patent. 
B)  non-disclosure agreement. 
C)  first mover advantage. 
D)  tacit knowledge. 
E)  None of the above. 
A)  patent. 
B)  non-disclosure agreement. 
C)  first mover advantage. 
D)  tacit knowledge. 
E)  None of the above.

Question 10

Explain technical uncertainty.

Accepted Answer

Technical uncertainty refers to what a s

Question 11

Constant improvement of the current product lines and always offering additional features that are better than competitors is known as which barrier to competition?

Accepted Answer

A)  Control over key resources. 
B)  Obtaining a legal monopoly. 
C)  Feature contribution. 
D)  Innovation. 
E)  None of the above. 
A)  Control over key resources. 
B)  Obtaining a legal monopoly. 
C)  Feature contribution. 
D)  Innovation. 
E)  None of the above.

Question 12

Franchising,a market-based mode,usually requires less capital than a hierarchical mode business .

Accepted Answer

A) True 
 B)False

Question 13

Suppose you wanted to open up a pizza place in Chestnut,AZ. This is a small town with no existing restaurants. You,as the entrepreneur,would be considered which of the following business structures?

Accepted Answer

A)  Monopoly. 
B)  Joint Venture. 
C)  Sole proprietorship. 
D)  Trade Secret. 
E)  Alliance. 
A)  Monopoly. 
B)  Joint Venture. 
C)  Sole proprietorship. 
D)  Trade Secret. 
E)  Alliance.

Question 14

Which of the following would allow an entrepreneur to establish a legal monopoly?

Accepted Answer

A)  Obtain a patent. 
B)  Become vertically integrated. 
C)  Get a government permit. 
D)  Choices a and c are correct. 
E)  Choices a and b are correct. 
A)  Obtain a patent. 
B)  Become vertically integrated. 
C)  Get a government permit. 
D)  Choices a and c are correct. 
E)  Choices a and b are correct.

Question 15

Which of the following statements is not true when being the first mover or the first firm to serve customers in a market?

Accepted Answer

A)  When network externalities are present, being the first mover is an advantage. 
B)  Being the first mover gives the entrepreneur the first chance at obtaining life long customers. 
C)  Being the first mover is advantageous when there are high switching costs for customers. 
D)  Being the first mover will give the entrepreneur a chance to set the market standard. 
E)  All of the above statements are true. 
A)  When network externalities are present, being the first mover is an advantage. 
B)  Being the first mover gives the entrepreneur the first chance at obtaining life long customers. 
C)  Being the first mover is advantageous when there are high switching costs for customers. 
D)  Being the first mover will give the entrepreneur a chance to set the market standard. 
E)  All of the above statements are true.

Question 16

A business that is totally owned by an entrepreneur is known as a hierarchical mode type of business.

Accepted Answer

A) True 
 B)False

Question 17

Market-based modes refers to knowledge on how to do something but is not written down or codified.

Accepted Answer

A) True 
 B)False

Question 18

A potential disadvantage of establishing alliances with an established firm as part of an entrepreneurial strategy is that the alliance partner might use its size and power to control the business relationship.

Accepted Answer

A) True 
 B)False

Question 19

A chemist developed a way to mix three chemicals together in such a way that they result in a very strong,yet flexible glue. Only the chemist knows how to do this. It is known as a/an

Accepted Answer

A)  arrow's paradox. 
B)  trade secret. 
C)  government permit. 
D)  franchise effect. 
E)  self-efficacy. 
A)  arrow's paradox. 
B)  trade secret. 
C)  government permit. 
D)  franchise effect. 
E)  self-efficacy.

Question 20

What is a competitive advantage and why does an entrepreneur need it?

Accepted Answer

A competitive advantage means that a bus

Which of the following are concerns for an entrepreneur during the pursuit of an opportunity?

An entrepreneur obtained money from investors in order to start a business. One of the early things that the entrepreneur did was to buy a new sports car,something she always wanted. This action represents

List,describe,and provide an example of the two most common market-based modes of opportunity exploitation.

Through advertisements and word of mouth,Xerox has established a mindset in which consumers believe Xerox is the best copier machine company in the United States. This mindset will keep customers from defecting to its competitors. To which type of competition barrier does this refer?

Which of the following is a reason why entrepreneurs use market mechanisms to exploit opportunity?

Which of the following could an entrepreneur use to make it more difficult for some other business to exploit the same opportunity that the entrepreneur has?

An entrepreneur needs a comprehensive plan of action in order to achieve overall success. That is,the entrepreneur needs a

One way to deal with uncertainty in starting a new business is to start on a small scale.

Explain technical uncertainty.

Constant improvement of the current product lines and always offering additional features that are better than competitors is known as which barrier to competition?

Franchising,a market-based mode,usually requires less capital than a hierarchical mode business .

Suppose you wanted to open up a pizza place in Chestnut,AZ. This is a small town with no existing restaurants. You,as the entrepreneur,would be considered which of the following business structures?

Which of the following would allow an entrepreneur to establish a legal monopoly?

Which of the following statements is not true when being the first mover or the first firm to serve customers in a market?

A business that is totally owned by an entrepreneur is known as a hierarchical mode type of business.

Market-based modes refers to knowledge on how to do something but is not written down or codified.

A potential disadvantage of establishing alliances with an established firm as part of an entrepreneurial strategy is that the alliance partner might use its size and power to control the business relationship.

A chemist developed a way to mix three chemicals together in such a way that they result in a very strong,yet flexible glue. Only the chemist knows how to do this. It is known as a/an

What is a competitive advantage and why does an entrepreneur need it?

Entrepreneurship:: A Field, an Activity - and a Way of Life

Entrepreneurial Opportunities: Their Origins, Forms, and Suitability For New Ventures

Cognitive Foundations of Entrepreneurship: Creativity and Opportunity Recognition

What Entrepreneurs Need to Know Before They Start: Acquiring and Interpreting Information About Markets Competitors and Government

Assembling the Team: Acquiring and Utilizing Essential Human Capital

Financial Resources For New Ventures: How To Get Them, How To Manage Them

Writing An Effective Business Plan: Building A Road Map to Success

Legal Issues Relating To New Ventures: Protecting Your Reputation, Your Assets, And Your Ideas

Marketing in a New Venture

Preparing For And Attaining Growth: Strategies For Building Lasting Success

Managing New Ventures For Growth

Exit Strategies For Entrepreneurs: The Concluding Act

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Exam 10: Strategy: Planning For Competitive Advantage

Which of the following are concerns for an entrepreneur during the pursuit of an opportunity?

An entrepreneur obtained money from investors in order to start a business. One of the early things that the entrepreneur did was to buy a new sports car,something she always wanted. This action represents

List,describe,and provide an example of the two most common market-based modes of opportunity exploitation.

Through advertisements and word of mouth,Xerox has established a mindset in which consumers believe Xerox is the best copier machine company in the United States. This mindset will keep customers from defecting to its competitors. To which type of competition barrier does this refer?

Which of the following is a reason why entrepreneurs use market mechanisms to exploit opportunity?

Which of the following could an entrepreneur use to make it more difficult for some other business to exploit the same opportunity that the entrepreneur has?

An entrepreneur needs a comprehensive plan of action in order to achieve overall success. That is,the entrepreneur needs a

One way to deal with uncertainty in starting a new business is to start on a small scale.

Explain technical uncertainty.

Constant improvement of the current product lines and always offering additional features that are better than competitors is known as which barrier to competition?

Franchising,a market-based mode,usually requires less capital than a hierarchical mode business .

Suppose you wanted to open up a pizza place in Chestnut,AZ. This is a small town with no existing restaurants. You,as the entrepreneur,would be considered which of the following business structures?

Which of the following would allow an entrepreneur to establish a legal monopoly?

Which of the following statements is not true when being the first mover or the first firm to serve customers in a market?

A business that is totally owned by an entrepreneur is known as a hierarchical mode type of business.

Market-based modes refers to knowledge on how to do something but is not written down or codified.

A potential disadvantage of establishing alliances with an established firm as part of an entrepreneurial strategy is that the alliance partner might use its size and power to control the business relationship.

A chemist developed a way to mix three chemicals together in such a way that they result in a very strong,yet flexible glue. Only the chemist knows how to do this. It is known as a/an

What is a competitive advantage and why does an entrepreneur need it?

Entrepreneurship:: A Field, an Activity - and a Way of Life

Entrepreneurial Opportunities: Their Origins, Forms, and Suitability For New Ventures

Cognitive Foundations of Entrepreneurship: Creativity and Opportunity Recognition

What Entrepreneurs Need to Know Before They Start: Acquiring and Interpreting Information About Markets Competitors and Government

Assembling the Team: Acquiring and Utilizing Essential Human Capital

Financial Resources For New Ventures: How To Get Them, How To Manage Them

Writing An Effective Business Plan: Building A Road Map to Success

Legal Issues Relating To New Ventures: Protecting Your Reputation, Your Assets, And Your Ideas

Marketing in a New Venture

Preparing For And Attaining Growth: Strategies For Building Lasting Success

Managing New Ventures For Growth

Exit Strategies For Entrepreneurs: The Concluding Act

Filters