RPTM Exam 3 Study Guide Question and answers 100% correct
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RPTM
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RPTM
RPTM Exam 3 Study Guide Question and answers 100% correct RPTM Exam 3 Study Guide
Entrepreneurship - correct answer a well thought out shift of resources from an area of low productivity to an area of potentially higher productivity and financial yield.
example: lemonade stand. Take water,...
RPTM Exam 3 Study Guide
Entrepreneurship - correct answer ✔a well thought out shift of resources
from an area of low productivity to an area of potentially higher productivity
and financial yield.
example: lemonade stand. Take water, add some lemon and sugar (or a
powdered mix, purchased for a few dollars at the store), make a sign.
*60%* of entrepreneurs come up with their ideas from experience on a prior
job or from an area of strong personal interest.
10 Myths of Entrepreneurship - correct answer ✔Myth 1: Entrepreneurs are
high-risk takers.
Myth 2: Entrepreneurs are born.
Myth 3: Entrepreneurs are mainly motivated to get rich.
Myth 4: Entrepreneurs give little attention to their personal life.
Myth 5: Entrepreneurs are often high-tech wizards
Myth 6: Entrepreneurs are loners and introverts
Myth 7: Entrepreneurs are job hoppers
Myth 8: Entrepreneurs finance their business with venture capital
Myth 9: Entrepreneurs are often ruthless or deceptive
Myth 10: Entrepreneurs have limited dedication
Innovation - correct answer ✔any act that endows resources with new
capacity to create wealth
,Systematic Innovation - correct answer ✔involves a purposeful and
organized search for changes in the environment, and then a systematic
analysis of the opportunities that such changes may offer
8 Sources for Innovation - correct answer ✔1. unexpected success or failure,
2. incongruities,
3. process need,
4. industry and market structures.
5. demographics,
6. changes in perception,
7. new knowledge, and
8. the bright idea.
Source 1: Unexpected Success or Failure - correct answer ✔When a
company or an organization experiences unexpected success or failure, it
may point to new opportunities. In order to fully take advantage of this source
of innovation, an organization usually has its structure and resources in place
sufficiently to capitalize.
a. Example: Unexpected Success or Failure
In the 1990s, snowboarding began to gain popularity as a winter sport. Many
ski shops carried one or two snowboards to satisfy the few customers who
were interested in snowboarding. The stores that noticed snowboard
purchases increasing, and then allocated more floor space to the sport, took
advantage of this "unexpected success".
Source 2: Incongruities - correct answer ✔When there is a discrepancy or
dissonance (lack of similarity and harmony) between an existing situation and
what should logically be happening, there may be an opportunity for
,innovation. If an organization realizes this and reallocates resources, it can
capitalize!
a. Example: Incongruities
The state of Virginia has historically been known as a "football state", where
most young men played football in the fall. The story goes that the Director of
a Parks and Recreation department for a large city in Virginia noticed that
youth soccer was not popular yet in Virginia, even when it was catching fire in
neighboring states. He decided to offer soccer leagues, and every single
league filled to capacity. Soon, he had a thriving soccer program, and it was
all thanks to him realizing that there was an incongruity between what was
happening in his territory and what was happening in comparable territories.
Source 3: Process Need - correct answer ✔"Process Need" is a task-
focused innovation that perfects a process that already exists by replacing a
"weak link" or by redesigning the process around new knowledge.
a. Example: Process Need
"E-Z Pass" was likely invented while someone was sitting in line, waiting to
pay a highway toll. There was a clear imperfection that the implementation of
the E-Z Pass corrected by making tolls easier and more efficient.
Source 4: Industry and Market Structures - correct answer ✔Sometimes, an
industry is simply not doing things well. In this source for innovation,
entrepreneurs search for a flaw in the basic nature of the industry and seek to
change the nature of the industry. Often, these changes are simple, but have
profound effects.
, a. Example: Industry and Market Structures
Steve Wynn, the Las Vegas business mogul, is known for transforming the
casino and hotel industry in Las Vegas. He found that most of Las Vegas
used to give away free food and cheap hotel rooms, and he had a theory that
people would still frequent the casinos if the rooms and food were higher
quality and were sold at a higher price. His theory proved to be correct, and
his hotels consistently profited more in their hotel and food and beverage
operations than the competition.
Source 5: Demographics - correct answer ✔Demographics shift quickly, and
those who are prepared to cater to new demographics can see great financial
return.
a. Example: Demographics
The "baby boomer" generation is one of the largest generations we have ever
seen in the United States. As this generation rapidly retires from the
workforce, companies that offer programming catered towards them will find
great success.
Source 6: Changes in Perception - correct answer ✔Changes in perception
breed changes in meaning. Often, the facts of a certain activity or product do
not change, but perceptions do, which leads to opportunity.
a. Example: Changes in Perception
The fitness industry sees changes in perception quite often. The benefits of
healthy eating and an active lifestyle have been known for years; however,
some companies have recently taken advantage of the societal shift towards
wellness. These companies, such as CrossFit and Orange Theory, have
created welcoming fitness environments that attract those who are taking
wellness seriously.
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