Question 1

Which of the following is true about the differences between commercial and social entrepreneurship?

Accepted Answer

A)  The purpose of commercial entrepreneurship is to create value for the public. 
B)  Social entrepreneurs are not required to consider issues surrounding sales and costs since they have enough funding from angel investors. 
C)  Most commercial entrepreneurs rely on donations as sources of funding. 
D)  Commercial entrepreneurs focus on less quantitative performance measures that are not related to money. 
E)  Although profits remain somewhat important, social value dominates the goal structure of social entrepreneurship. 
A)  The purpose of commercial entrepreneurship is to create value for the public. 
B)  Social entrepreneurs are not required to consider issues surrounding sales and costs since they have enough funding from angel investors. 
C)  Most commercial entrepreneurs rely on donations as sources of funding. 
D)  Commercial entrepreneurs focus on less quantitative performance measures that are not related to money. 
E)  Although profits remain somewhat important, social value dominates the goal structure of social entrepreneurship. E

Question 2

Opportunities may arise from the creation or discovery of ________.

Accepted Answer

A)  new research 
B)  new raw materials 
C)  ethics 
D)  more capital 
E)  social networks 
A)  new research 
B)  new raw materials 
C)  ethics 
D)  more capital 
E)  social networks B

Question 3

Why is an organization's capital base important for social entrepreneurs?

Accepted Answer

A)  Capital helps entrepreneurs improve social networking. 
B)  Capital helps management make better decisions. 
C)  Capital creates opportunity for philanthropy. 
D)  Social entrepreneurs do not have access to the venture capital and bank financing available to commercial entrepreneurs. 
E)  Capital helps identify potential employees and volunteers. 
A)  Capital helps entrepreneurs improve social networking. 
B)  Capital helps management make better decisions. 
C)  Capital creates opportunity for philanthropy. 
D)  Social entrepreneurs do not have access to the venture capital and bank financing available to commercial entrepreneurs. 
E)  Capital helps identify potential employees and volunteers. D

Question 4

Jose has successfully initiated a business of repairing cars. However, without immediate income to sustain the business, he may have to shut his shop. His friend, Adam, invests in the company and gives the company a much-required boost. In this situation, Adam is a(n) ________.

Accepted Answer

A)  bank financier 
B)  venture capitalist 
C)  angel investor 
D)  crowd funder 
E)  private equity investor 
A)  bank financier 
B)  venture capitalist 
C)  angel investor 
D)  crowd funder 
E)  private equity investor

Question 5

Beth heads the team of designers at La Belle, Inc., a well-known brand of designer bags. She is an extraordinary designer and manages her team excellently. In the past, La Belle has successfully implemented many of Beth's innovative ideas to their benefit. The company has now decided that Beth should be given the responsibility of managing their new business unit that specializes in clothes, shoes, and other accessories. What type of entrepreneurship is displayed in this scenario?

Accepted Answer

A)  intrapreneurship 
B)  creative destruction 
C)  corporate social entrepreneurship 
D)  social entrepreneurship 
E)  corporate entrepreneurship 
A)  intrapreneurship 
B)  creative destruction 
C)  corporate social entrepreneurship 
D)  social entrepreneurship 
E)  corporate entrepreneurship

Question 6

A company starting to distribute their existing products in a new country is gaining from which type of opportunity?

Accepted Answer

A)  creation of new products or services 
B)  new geographical market 
C)  creation or discovery of new raw materials 
D)  discovery of new methods of production 
E)  new methods of organizing 
A)  creation of new products or services 
B)  new geographical market 
C)  creation or discovery of new raw materials 
D)  discovery of new methods of production 
E)  new methods of organizing

Question 7

Which of the following is true about bank financing?

Accepted Answer

A)  Like angel investors and venture capitalists, banks invest in a business. 
B)  Banks are more interested in ensuring that the entrepreneur's opportunity will survive long enough to ensure repayment. 
C)  Banks typically focus on investing in a small number of industries. 
D)  Banks are concerned with the long-term potential for returns. 
E)  Banks typically provide more capital as the new venture becomes more established. 
A)  Like angel investors and venture capitalists, banks invest in a business. 
B)  Banks are more interested in ensuring that the entrepreneur's opportunity will survive long enough to ensure repayment. 
C)  Banks typically focus on investing in a small number of industries. 
D)  Banks are concerned with the long-term potential for returns. 
E)  Banks typically provide more capital as the new venture becomes more established.

Question 8

Even if an entrepreneur's idea is feasible, opportunities are associated with risk. In this context, ________ refers to the resources reduced if an opportunity does not succeed.

Accepted Answer

A)  illusion of control 
B)  law of small numbers 
C)  downside loss 
D)  exploitation 
E)  feasibility analysis 
A)  illusion of control 
B)  law of small numbers 
C)  downside loss 
D)  exploitation 
E)  feasibility analysis

Question 9

Explain feasibility analysis.

Accepted Answer

When evaluating opportunities, entrepren

Question 10

When an entrepreneur obtains financing from a financial institution in the form of a loan, it is termed as ________.

Accepted Answer

A)  angel investing 
B)  capital investments 
C)  bank financing 
D)  loan sharking 
E)  corporate funding 
A)  angel investing 
B)  capital investments 
C)  bank financing 
D)  loan sharking 
E)  corporate funding

Question 11

An entrepreneurial team advantage can be equated to ________ as those on the team share their experiences and knowledge.

Accepted Answer

A)  entrepreneurial alertness 
B)  information asymmetry 
C)  social networks 
D)  feasibility analysis 
E)  illusion of control 
A)  entrepreneurial alertness 
B)  information asymmetry 
C)  social networks 
D)  feasibility analysis 
E)  illusion of control

Question 12

Describe the four factors that influence the ability of individuals to identify opportunities.

Accepted Answer

The four factors that influence the abil

Question 13

________ is a type of evaluation that helps entrepreneurs understand whether an idea is practical.

Accepted Answer

A)  Illusion of control 
B)  Entrepreneurial risk management 
C)  Strategic planning 
D)  Feasibility analysis 
E)  Entrepreneurial alertness 
A)  Illusion of control 
B)  Entrepreneurial risk management 
C)  Strategic planning 
D)  Feasibility analysis 
E)  Entrepreneurial alertness

Question 14

The pursuit of entrepreneurial opportunities for the purpose of generating sales and profits is called ________.

Accepted Answer

A)  commercial entrepreneurship 
B)  intrapreneurship 
C)  intrepreneurship 
D)  corporate entrepreneurship 
E)  social entrepreneurship 
A)  commercial entrepreneurship 
B)  intrapreneurship 
C)  intrepreneurship 
D)  corporate entrepreneurship 
E)  social entrepreneurship

Question 15

________ is the process in which an individual or group of individuals in an existing corporation create a new organization or instigate renewal or innovation within that corporation.

Accepted Answer

A)  Corporate social entrepreneurship 
B)  Intrapreneurship 
C)  Entrepreneurship 
D)  Corporate entrepreneurship 
E)  Social entrepreneurship 
A)  Corporate social entrepreneurship 
B)  Intrapreneurship 
C)  Entrepreneurship 
D)  Corporate entrepreneurship 
E)  Social entrepreneurship

Question 16

________ refers to the activities and investments committed to gain returns from the new product or service arising from the opportunity.

Accepted Answer

A)  Exploitation 
B)  Information asymmetry 
C)  Entrepreneurial risk 
D)  Illusion of control 
E)  Social value 
A)  Exploitation 
B)  Information asymmetry 
C)  Entrepreneurial risk 
D)  Illusion of control 
E)  Social value

Question 17

________ is the third step of the entrepreneurial process.

Accepted Answer

A)  Opportunity identification 
B)  Opportunity evaluation 
C)  Opportunity exploitation 
D)  Opportunity selection 
E)  Opportunity improvement 
A)  Opportunity identification 
B)  Opportunity evaluation 
C)  Opportunity exploitation 
D)  Opportunity selection 
E)  Opportunity improvement

Question 18

Angel investors and venture capitalists provide ________ for entrepreneurial opportunities.

Accepted Answer

A)  consulting 
B)  management 
C)  research analysis 
D)  financing 
E)  feasibility analysis 
A)  consulting 
B)  management 
C)  research analysis 
D)  financing 
E)  feasibility analysis

Question 19

A(n) ________ is an individual who identifies, evaluates, and exploits opportunities.

Accepted Answer

A)  leader 
B)  entrepreneur 
C)  supplier 
D)  distributor 
E)  opportunist 
A)  leader 
B)  entrepreneur 
C)  supplier 
D)  distributor 
E)  opportunist

Question 20

Strategic renewal occurs when a firm proactively seeks to create a new product market position that competitors have not recognized.

Accepted Answer

A) True 
 B)False

Which of the following is true about the differences between commercial and social entrepreneurship?

Opportunities may arise from the creation or discovery of ________.

Why is an organization's capital base important for social entrepreneurs?

Jose has successfully initiated a business of repairing cars. However, without immediate income to sustain the business, he may have to shut his shop. His friend, Adam, invests in the company and gives the company a much-required boost. In this situation, Adam is a(n) ________.

A company starting to distribute their existing products in a new country is gaining from which type of opportunity?

Which of the following is true about bank financing?

Even if an entrepreneur's idea is feasible, opportunities are associated with risk. In this context, ________ refers to the resources reduced if an opportunity does not succeed.

Explain feasibility analysis.

When an entrepreneur obtains financing from a financial institution in the form of a loan, it is termed as ________.

An entrepreneurial team advantage can be equated to ________ as those on the team share their experiences and knowledge.

Describe the four factors that influence the ability of individuals to identify opportunities.

________ is a type of evaluation that helps entrepreneurs understand whether an idea is practical.

The pursuit of entrepreneurial opportunities for the purpose of generating sales and profits is called ________.

________ is the process in which an individual or group of individuals in an existing corporation create a new organization or instigate renewal or innovation within that corporation.

________ refers to the activities and investments committed to gain returns from the new product or service arising from the opportunity.

________ is the third step of the entrepreneurial process.

Angel investors and venture capitalists provide ________ for entrepreneurial opportunities.

A(n) ________ is an individual who identifies, evaluates, and exploits opportunities.

Strategic renewal occurs when a firm proactively seeks to create a new product market position that competitors have not recognized.

Principles of Modern Management: Concepts and Skills

Managers, Society, and Sustainability

Management and Diversity

Managing in the Global Arena

Plans and Planning Tools

Making Decisions

Strategic Planning: Strategies, Tactics, and Competitive Dynamics

Fundamentals of Organizing

Responsibility, Authority, and Delegation

Human Resource Management

Organizational Change: Stress, Conflict and Virtuality

Influencing and Communication

Leadership

Motivation

Groups and Teams

Managing Organization Culture

Controlling, Information, and Technology

Production and Control

Appendix 1: Managing History and Current Thinking

Encouraging Creativity and Innovation

Filters

Exam 20: Management and Entrepreneurship: Handling Start-Ups and New Ventures

Which of the following is true about the differences between commercial and social entrepreneurship?

Opportunities may arise from the creation or discovery of ________.

Why is an organization's capital base important for social entrepreneurs?

Jose has successfully initiated a business of repairing cars. However, without immediate income to sustain the business, he may have to shut his shop. His friend, Adam, invests in the company and gives the company a much-required boost. In this situation, Adam is a(n) ________.

A company starting to distribute their existing products in a new country is gaining from which type of opportunity?

Which of the following is true about bank financing?

Even if an entrepreneur's idea is feasible, opportunities are associated with risk. In this context, ________ refers to the resources reduced if an opportunity does not succeed.

Explain feasibility analysis.

When an entrepreneur obtains financing from a financial institution in the form of a loan, it is termed as ________.

An entrepreneurial team advantage can be equated to ________ as those on the team share their experiences and knowledge.

Describe the four factors that influence the ability of individuals to identify opportunities.

________ is a type of evaluation that helps entrepreneurs understand whether an idea is practical.

The pursuit of entrepreneurial opportunities for the purpose of generating sales and profits is called ________.

________ is the process in which an individual or group of individuals in an existing corporation create a new organization or instigate renewal or innovation within that corporation.

________ refers to the activities and investments committed to gain returns from the new product or service arising from the opportunity.

________ is the third step of the entrepreneurial process.

Angel investors and venture capitalists provide ________ for entrepreneurial opportunities.

A(n) ________ is an individual who identifies, evaluates, and exploits opportunities.

Strategic renewal occurs when a firm proactively seeks to create a new product market position that competitors have not recognized.

Principles of Modern Management: Concepts and Skills

Managers, Society, and Sustainability

Management and Diversity

Managing in the Global Arena

Plans and Planning Tools

Making Decisions

Strategic Planning: Strategies, Tactics, and Competitive Dynamics

Fundamentals of Organizing

Responsibility, Authority, and Delegation

Human Resource Management

Organizational Change: Stress, Conflict and Virtuality

Influencing and Communication

Leadership

Motivation

Groups and Teams

Managing Organization Culture

Controlling, Information, and Technology

Production and Control

Appendix 1: Managing History and Current Thinking

Encouraging Creativity and Innovation

Filters