MGMT 5200 midterm exam 1 || with 100% Correct
Answers.
which of the following is an accurate characterization of interest in entrepreneurship? correct
answers there is tremendous interest in entrepreneurship across the world.
Cody Rodgers is the founder of a company named Extreme Sports Apparel. The company makes
apparel products for extreme sports enthusiasts such as rock climbers, triathletes, skateboarders,
and BMX bikers. Cody wants his company to pursue a high level of corporate entrepreneurship.
To achieve that goal, Cody's firm should be ________. correct answers proactive, innovative,
and risk taking
Google is a firm that is proactive, innovative and risk-taking. From this description, we can most
accurately conclude that Google has a high level of ________. correct answers entrepreneurial
intensity
Apple is an established firm that encourages and emphasizes entrepreneurial behavior throughout
its various divisions. According to the textbook, Apple practices ________ entrepreneurship.
correct answers corporate
The three primary reasons that people become entrepreneurs and start their own firms are to
________. correct answers be their own boss, pursue their own ideas, and realize financial
rewards
Kasey Stevenson is starting a firm in the women's clothing industry primarily to pursue financial
rewards. According to the textbook, starting a business to make a lot of money ________. correct
answers often fails to live up to its hype
According to the textbook, entrepreneurs are _____________. correct answers moderate risk
takers
Which of the following statements is incorrect regarding entrepreneurial activity and age range?
correct answers entrepreneurial activity is fairly evenly spread out over age ranges.
Pacific Fishing LLC is a startup that is working on a new technology for the fishing industry.
Because the technology it's working on is highly proprietary, the company is located in the
warehouse district of a large western city. Pacific's founder, Ray Sims, rarely gives interviews
and is careful to not divulge much about what the company is doing. Which of the following
common myths about entrepreneurs does the behavior of its founder, Ray Sims, dispel? correct
answers entrepreneurs love the spotlight.
T/F Entrepreneurs are motivated primarily by money. correct answers false
Which of the following statements is not true about women-owned businesses in the United
States? correct answers in some industries, women own a significant share of the business.
,T/F Over the past 10 years, the demographic makeup of entrepreneurial firms has remained fairly
stable in the United States and around the world. correct answers false
T/F Although interest in entrepreneurship remains high nationwide, the number of women-
owned businesses is decreasing. correct answers false
T/F Unfortunately, statistics show that there is very little interest in entrepreneurship among
young people in the United States. correct answers false
As new products that are better than the existing generation of products are introduced, sales
normally increase because the new products provide consumers increased value or worth. This
process, which is called ________, stimulates economic activity, which is a good thing for the
economy. correct answers creative destruction
In the book The Theory of Economic Development, ________ argued that entrepreneurs develop
new products and technologies that, over time, make current products and technologies obsolete.
This process is called creative destruction. correct answers Joseph Schumpeter
According to the textbook, entrepreneurship has historically had __________. correct answers a
major impact on both the economy and society
T/F Jospeh Schumpeter argued that entrepreneurs develop new products and technologies that
over time make current products and technologies obsolete, and this process, which he called
creative destruction, is good because it stimulates economic activity. correct answers true
T/F Innovation is the process of creating something new, which is central to the entrepreneurial
process. correct answers true
A(n) _______________ is a written document that describes all the aspects of a business venture
in a concise matter. correct answers business plan
A firm's ________ is a plan for how it competes, uses its resources, structures its relationships,
interfaces with customers, and creates value to sustain itself on the basis of the value it creates.
correct answers business model
A(n) _______________ is a favorable set of circumstances that creates the need for a new
product, service, or business. A(n) ____________ is a thought, an impression or a motion.
correct answers opportunity, idea
T/F An idea is a favorable set of circumstances that creates a need for a new product, service, or
business. correct answers false
T/F An opportunity has four essential qualities: It is (1) rare, (2) attractive, (3) timely, and (4)
anchored in a product, service, or business that creates or adds value for its buyer or end user.
correct answers true
, T/F An idea is a thought, impression, or notion. It may or may not meet the criteria of an
opportunity. correct answers true
T/F An idea is a thought, impression, or notion. It may or may not meet the criteria of an
opportunity. correct answers true
GasBuddy and GasPriceWatch.com are companies started to help consumers save money on gas.
Which environmental trend is most likely to have provided the impetus for the creation of these
companies? correct answers economic forces
Economic forces impact the opportunities available to entrepreneurs. Which of the following
alternatives reflects a set of economic forces that would be of interest to entrepreneurs? correct
answers Level of disposable income, new uses of old technologies, and new laws and regulations
Which of the following is not an example of a social force? correct answers changes in interest
rates
An increased focus on health and wellness has resulted in a number of new business ideas
including healthier foods and beverages, yoga instruction and training centers, and nutrition
consulting. An increased focus on health and wellness is an important ________ that is creating
opportunities in many areas for entrepreneurial firms. correct answers social force
The increasing number of social networks on the Internet is attributed to a jump in the number of
people who are wanting to connect with one another online. The increasing number of social.
networks is an important _______ trend. correct answers social
Clothing boutiques and specialty shops often start because there is a need for a particular
product, but large retailers like Wal-Mart and Costco can't sell enough of the item to stock it on
their shelves. If a clothing boutique started to sell designer clothes or clothing for hard-to-fit
people because the clothing wasn't being offered by a larger retailer, the best way to describe
how that idea was recognized is ________. correct answers finding a gap in the marketplace
In 2000, Tish Cirovolo realized that there were no guitars on the market made specifically for
women. As a result, she started Daisy Rock Guitars, a company that makes guitars just for
women. Daisy Rock Guitars are stylish and come in feminine colors, and incorporate design
features that accommodate a woman's smaller hand and build. The best way to describe how
Cirovolo's business idea was recognized is _________________. correct answers finding a gap
in the marketplace
T/F The three ways to identify an opportunity include observing trends, solving a problem, and
finding gaps in the marketplace. correct answers true
T/F Economic factors, social factors, technological advances, and political action and regulatory
changes are the most important trends to follow in trying to identify opportunities. correct
answers true
