ENTP 1020 Midterm 1 (100% Accurate)

What percentage of firms survive at least 5 years? correct answers 25%-75% What does business research say about how much entrepreneurs earn relative to employees? correct answers Mixed: Some make more, some make less Over the past 40 years is the number start-up firms relative to the total number of firms increasing, decreasing, or staying constant? correct answers Decreasing because new ideas are getting harder to generate. What is value creation? correct answers The outcome of a single transaction WTP - Cost Buyer Surplus + Sellers Surplus What is WTP? correct answers The maximum amount the consumer is willing to pay In dollars the total addressable market for the automobile industry? correct answers More than $10B Which of the following is the LEAST LIKELY to be true about sunk costs? correct answers As a business grows and marries, sunk costs decrease Which of the following is not a core managerial practice? correct answers -growth management Which best describes the views of Deci (1971)? correct answers -Tying compensation to work reduces intrinsic motivation Paying teachers based off of standardized student test scores can be dangerous because teachers might be less likely to teach what can not be measured (T/F) correct answers True What is the danger of paying a doctor based off of how many patients survive? correct answers -They only take low-risk patients What is the danger of awarding a CEO based on quarterly earnings? correct answers -not focused on long-term business goals or ethics Key features of commitment devices correct answers -Immutable Consequences -Mutable Consequences -voluntary It's easy to move to a system of OKRs when your entrepreneurial firm grows to 100 employees (t/f) correct answers False What happened in the $10 bill auction correct answers -It sold for more than it's worth because of competition maybe