Question 1

Which of the following is not one of the seven questions to ask when identifying a new opportunity?

Accepted Answer

A)  What is your idea? 
B)  Who will it matter to? 
C)  Where will you do it? 
D)  How will you pull off your "What"? 
E)  Why will this be attractive to investors?

Question 2

Refer to the scenario below to answer the following questions.
Angela's Thesis Coaching Company (Scenario)
Angela is finally starting to feel more at ease with her business. Six months since the launch of her Ph.D. Thesis Masters she is starting to see revenues climb and her associates are producing great work-and more importantly, her customers are happy. Ph.D. Thesis Masters (PTM) provides coaching and research services for masters and Ph.D. students working on their theses. Angela discovered that many students need help with much of the grunt work of formatting, meeting deadlines, and doing secondary research of the existing literature.
Her associates are Ph.D. graduates who have successfully completed their theses and can now guide other students and help them with the related pressures and quality guidelines. Angela has worked out a formula where she charges student clients $75 per hour and pays her associates $45, leaving her with a $30 gross profit (or gross margin) for every hour of work completed. Her customers are happy and her associates are happy.
-To get here, Angela had to do complete a number of research tasks herself, the majority of which had to do with the potential of the student market, competitors, and the viability of her associates model, as well as ongoing understanding of how her services need to evolve. This type of research is most likely _________________.

Accepted Answer

A)  curiosity-driven research 
B)  research and development 
C)  focus group research 
D)  applied research 
E)  qualitative research

Question 3

In a short essay describe the nature of opportunities and role of entrepreneurial managers linking these to the importance of entrepreneurship in today's business world. Give specific examples where possible to illustrate your answers.

Accepted Answer

The answer of In a short essay describe the nature...

Question 4

Which of the following is NOT an organizing issue for an entrepreneur when creating a new venture?

Accepted Answer

A)  organization design and structure 
B)  human resource management 
C)  how to encourage and make changes 
D)  sales management 
E)  encouraging innovation

Question 5

The ability to adapt and fashion new tools to solve problems is referred to as _____________.

Accepted Answer

A)  management capacity 
B)  management innovation 
C)  leadership basics 
D)  management norms 
E)  leadership valuation

Question 6

Social responsibility and ethics do not play an important role in an entrepreneurial startup.

Accepted Answer

A) True 
 B)False

Question 7

Lisa has been hired by Lexman Corporation, a large mutlinational hydro-electric engineering firm, to launch a brand-new business under a different name. Funding will come from Lexman, but they want to take a hands-off approach and let Lisa run it as if it were her own business. The enterprise will market small, low-cost solar generators that individual homeowners can purchase and then easily relocate to a new home if they move. Executives at Lexman have told Lisa that the main objective in the first three years is growth and market penetration and then more of a focus on profit in year 4 and beyond. This is definitely a(n) __________.

Accepted Answer

A)  protective investment 
B)  entrepreneurial misadventure 
C)  entrepreneurial venture 
D)  social venture 
E)  social investment

Question 8

Being a change agent and supporting innovation together represent the single most important function of an entrepreneur in the early years of the venture.

Accepted Answer

A) True 
 B)False

Question 9

In face of change, an entrepreneur must take into consideration how the change impacts the company and immediately_______________.

Accepted Answer

A)  prepare a new business plan 
B)  plan for sale of the company 
C)  organize a new R & D project 
D)  explain changes to employees 
E)  hire an external consultant

Question 10

Research supports entrepreneurial innovation, but not all types of research are the same. Research that focuses on investigative activities that an organization conducts to lead to discoveries that will fuel new products or procedures is known as _____________________.

Accepted Answer

A)  applied research 
B)  R & D 
C)  curiosity-driven research 
D)  competitor intelligence 
E)  value-added research

Question 11

Refer to the scenario below to answer the following questions.
A Mature Café (Scenario)
Sarah has been growing and operating her café in an upscale neighbourhood. She is happy with how the business has continued to increase in revenues as her customer base has become loyal over the years. She has just over 30 employees, two of whom are managers.
The lease on the space is coming up for renewal and this has brought up the notion of leaving the business and exploring other interests she has in travelling through Africa and Southeast Asia. Sarah has worked hard and she wants to be sure she gets as much out of the business as she put into it.
Another factor is the increasing competition in the area and the sinking feeling she has that it will be next to impossible to differentiate her business from the big chains opening on several street corners. Her fear is that her sales may have plateaued and there in fact will be a decrease in sales in the near future.
-It is difficult for Sarah to sell her business, as it would be for many entrepreneurs. She has created it from nothing and sees all of her heart and soul in the venture. She has consoled herself that it is at least worth a lot of money-perhaps enough for her to retire on (and she is only 42). She needs to be sure she gets a(n) _______________ so she can decide clearly if it is worthwhile to sell the business.

Accepted Answer

A)  psychiatrist to help her with her emotions 
B)  second opinion from her closest friends 
C)  lawyer to draft a purchase and sale agreement 
D)  business valuation 
E)  accountant to tell her what the tax implications might be if she sells

Question 12

For successful companies ____________ matter more than R & D in enabling innovation.

Accepted Answer

A)  employee talent and knowledge 
B)  the right business plan and execution 
C)  feasibility studies 
D)  hiring processes 
E)  employee personality

Question 13

You are the entrepreneur behind a two-year-old firm whose main business is engineering and servicing road salting equipment. You entered the field via an innovation in salt distribution technology that reduces the need for environmentally damaging road salt by 25 percent and yet provides effective coverage in icy conditions. You are continually engaging in _____________ via worldwide sources to seek other, complementary innovations and developments so you can enhance your services to clients.

Accepted Answer

A)  applied research 
B)  R & D 
C)  curiosity-driven research 
D)  competitor intelligence 
E)  value-added research

Question 14

As an entrepreneur, you need to be able to retain the good employees you have hired. The main reason being that when talented employees leave a new venture, ______________ can be negatively affected.

Accepted Answer

A)  customer service 
B)  payroll expenses 
C)  the value proposition 
D)  operating expenses 
E)  potential new employees

Question 15

In evaluating an idea for an entrepreneurial venture you need to examine the marketplace considerations as well as the ______________ considerations in order to obtain a balanced view.

Accepted Answer

A)  personal 
B)  financing 
C)  ethnocentric 
D)  demographic 
E)  neoconservative

Question 16

Entrepreneurship is ________________.

Accepted Answer

A)  the process of starting a brand-new enterprise with four employees or less 
B)  the process of starting a new organization, generally in response to an opportunity 
C)  the process of taking an organization or venture private and away from the public domain 
D)  the development of an idea into a feasibility and subsequent business plan up to but not surpassing the actual start of the venture's operations 
E)  becoming less and less significant to the Canadian economy as most jobs now are created by large companies

Question 17

describe the three main types of research that could be conducted by an entrepreneurial venture, with the knowledge that a venture could be involved in any one of the three and not necessarily all of them at any one time. Please provide a clear example (or scenario) that illustrates each of the three types.

Accepted Answer

The answer of describe the three main types of research...

Question 18

The final step in the entrepreneurial process is _______________.

Accepted Answer

A)  identifying the customers 
B)  preparing a marketing plan 
C)  managing the venture 
D)  choosing a leader 
E)  conducting research

Question 19

Refer to the scenario below to answer the following questions.
A New Subsidiary (Scenario)
Philip works for a large multinational corporation with offices in 23 countries, 64,000 employees worldwide, and $8 billion in annual sales. The company was involved in several different industries: automotive parts, rapid transit systems, and recreational vehicles. Philip is the executive vice-president of new technology ventures.
Philip wants you to investigate and potentially launch a business focusing on alternative energy systems. The first area you are to explore is the potential business opportunity of ocean tidal energy. You are to explore what technology already exists that can be exploited, what additional technology development is needed, and figure out the viability of the tidal energy as an entrepreneurial venture.
-When Philip asks you to look at the potential viability of the business opportunity of tidal energy, he is really asking you to complete a ______________.

Accepted Answer

A)  commercialization study 
B)  feasibility study 
C)  business plan 
D)  research and development plan 
E)  applied theory study

Question 20

Shelley is very excited about launching her new business-providing customized and personalized umbrellas. Her business will be completely online, and she is convinced she has thought everything through. The last step is getting investors interested in her venture, but they do not seem to be as excited as she is. When they ask her what the business is about, she can speak about it, but her documentation is confusing. She is concerned that she will never find the necessary investment or financing to get the business off the ground. What is the first thing you would recommend Shelley do?

Accepted Answer

A)  Forget about investors and talk to one of the chartered banks. 
B)  Ask family and friends to invest. 
C)  Take out a mortgage on her house to finance her venture. 
D)  Write a business plan. 
E)  Take a vacation.

Exam 4: Managing Entrepreneurially