Technological change has facilitated ____ and a new form of creative destruction by moving ____ out of the Unites States to countries where labor costs are substantially less.

globalization / lower-skilled jobs

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As entrepreneurial firms achieve noticeable levels of success and a new industry grows, it generally becomes more ____ as a result of so many firms competing for position.

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____ entrepreneurship is characteristic of small lifestyle businesses.

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622 Test 1

Question	Answer
As entrepreneurial firms achieve noticeable levels of success and a new industry grows, it generally becomes more ____ as a result of so many firms competing for position.	fragmented
____ entrepreneurship is characteristic of small lifestyle businesses.	Replicative
The ____ has been called the Decade of Entrepreneurship.	1980s
Women now comprise ____ of all entrepreneurial activity globally.	one-third
Entrepreneurs are taking advantage of several subtrends within the ____ sector, including eco-iconic marketing.	green power
Twitter has been the leader in facilitating a new trend known as ____.	mass mingling
The late 1990s brought the "dot com" bubble and the rush of the ____ community to position itself for what appeared to be a new way of doing business.	venture capital
Entrepreneurship provides many benefits to society, chiefly ____, new industry formation, and ____.	economic growth / job creation
The ____ school of thought proposes an integrated input/output model to describe the entrepreneurial process.	Morris, Lewis, and Sexton
Gartner's conceptual framework for the new venture creation process focuses on three major categories of variables: the individual entrepreneur and what he or she brings to the process; the ____; and the ____.	environment / organization
Early economists recognized that ____ is the primary force behind rising standards of living and that ____ innovation would determine the success of many nations in the future.	technology / technological
Technological change has facilitated ____ and a new form of creative destruction by moving ____ out of the Unites States to countries where labor costs are substantially less.	globalization / lower-skilled jobs
Today, ____ is growing faster than any modern economy.	China
New industries are born when technological change produces a/an ____ opportunity that an enterprising entrepreneur seizes.	novel
Denmark, Israel, United Arab Emirates, and the United States have ____ economies.	innovation-driven
The Small Business Administration (SBA) defines a small business as one with fewer than ____ employees.	500
Entrepreneurs typically have a vision of where they want their businesses to go, and generally that vision is on a regional, national, or (more often) ____ level.	global
The process of new venture formation is characterized by ____ stage(s) and ____ transition(s) or decision points.	four / three
____ is the mechanism that drives an individual to become a nascent entrepreneur because all other opportunities for income appear to be absent or unsatisfactory.	Push *
The Small Business Administration Office of Advocacy reports that ____ of new businesses survive at least five years.	one-half
Firms that are most likely to survive over the long term are those that display superior levels of reliability and accountability in performance, ____, and structure.	processes
More than ____ percent of Salesforce.com's employees are involved in philanthropy.	85
The term entrepreneur has been popular in the United States since the ____.	1980s
The 1970s saw the beginning of three significant trends that would forever change the face of business: macroeconomic turmoil, ____, and the technological revolution.	international competition
The ____ microprocessor affected the technological revolution of the 1970s.	Intel
____ was not alone in asserting that the United States was rapidly and by necessity becoming an entrepreneurial economy.	Peter Drucker
Responding to this entrepreneurial drive, big business in the 1980s found it necessary to downsize and reverse the trend of ____ it had promulgated for so long.	diversification
Toward the end of the 1980s, researchers observed that young entrepreneurial ventures were ____ much earlier than expected and at a much smaller size.	internationalizing
The new millennium ushered in what many refer to as the ____.	knowledge economy
More than perhaps anything else, the 1990s were characterized as the ____.	Information Age
Research has confirmed that entrepreneurs are motivated intrinsically by such things as the desire for ____.	growth
When it comes to the Inc. 500 Fastest Growing Private Companies, the ____ is not a predictor of ultimate success.	amount of startup capital
Most of the great businesses that have been successful for at least 50 years (companies such as Walt Disney, Sony, and Merck) did not start with a/an ____.	great idea
The goal of most entrepreneurs is to reduce the level of ____ in any venture.	risk
In general, venture capitalists say that they will take a ____ and a large market opportunity in a fast-growing area over a great idea any day	great team
The 2008 Global Entrepreneurship Monitor Report found that men and women in the ____ age bracket are responsible for 36 percent of all the entrepreneurial activity in the United States and for 22 percent of the activity globally.	45-98
Peter Drucker asserted, "The entrepreneurial mystique, it's not magic, it's not mysterious, and it has nothing to do with the genes. It is ____."	discipline
In the United States, ____ entrepreneurship is most prevalent.	opportunity-driven
____ comprise over two-thirds of all sole proprietorships, partnerships, and S-corporations in the United States.	Home-based businesses
An entrepreneur who owns a minority or majority stake in several ventures is called a ____ entrepreneur.	portfolio
An entrepreneur who starts one business and then moves on to start another is classified as a ____ entrepreneur.	serial
Nourish International, a nonprofit run by ____, raises money to help eradicate global poverty.	students
Robert Chambers used the ____ organizational structure as a vehicle to help low-income people make better purchasing decisions when it came to cars.	nonprofit
Entrepreneurial-like ventures inside large companies are called ____.	corporate ventures
____ refers to an autonomous group with a mandate to find and develop new products for the company that may even be external to the company's core competencies.	Skunk works
A very specific task that an entrepreneur can undertake to prepare for success is to find/be a ____.	mentor
The probability of survival and success tends to go up with businesses that have more ____.	potential
____ is the exchange of information and resources among individuals, groups, or organizations whose common goals are to mutually benefit and create value for the members.	Networking
The ____ in a professional network are the entrepreneur's acquaintances and business contacts.	weak ties
Entrepreneurs rely on their ____ for objective advice.	weak ties
____ serve as gateways to other networks, exerting influence between groups or networks rather than within groups.	Network brokers
Which of the following is not a barrier to becoming self-employed?	Lack of training
____ is a critical part of the everyday life of an entrepreneur and is a skill that must be developed and exercised carefully.	Making effective decisions
____ facilitates a new venture's identity and legitimacy as well as creates a competitive advantage that is difficult to replicate.	Storytelling
Critical entrepreneurial skills include ____.	-opportunity recognition -leadership and people management -written and oral communication -"leadership and people management" and "written and oral -communication" only All of these choices
Entrepreneurial leaders have a distinct advantage over ____ leaders because they see themselves as part of a team.	both "heroic" and "charismatic"
One of the best ways to discover an opportunity is to study a/an ____ in depth.	industry
Companies engage in skunk works, ____ and ____ to simulate an entrepreneurial environment within the organization.	intrapreneurship / acquisition
An entrepreneur's ____ are the foundation for the business and are always reflected in the business and in the way customers are treated.	core values
A/An ____ is a group of companies that are engaged in similar or related activities.	industry
Entrepreneurs differ from others who have ideas in that they know how to extract ____ from those ideas to creative commercial potential.	value
____ sees opportunity arising from shifts in external factors in the market or industry, such as regulation, technological changes, and changes in customer preferences.	Discovery theory
In ____, entrepreneurs create opportunities via their actions, reactions, and experiments around new products, services, and business models.	creation theory
Creativity is the basis for ____, which is discovering something that did not exist previously.	invention
____ is finding a new way to do something or improving on an existing product or service.	Innovation
Noller developed a formula that suggests that creativity is a function of three dynamics: knowledge, imagination, and ____.	evaluation
Which of the following is not one of the four stages of the creative process identified by Wallas?	Association
No time for creativity, lack of confidence, and absence of creative skills are all examples of ____ roadblocks.	creativity
Creativity is the behavior that results in ____.	innovation
____ on a regular basis trains the mind to shift quickly into the creative mode.	Contemplation
According to Rosabeth Moss Kanter, accountability, collaboration, and initiative are all elements of ____.	confidence
Reducing some of the risk of entrepreneurship and building confidence can be achieved by ____.	conducting a feasibility analysis
Closing the door, shutting off the phone, and turning off email to prepare to do some creative thinking are all examples of how you can ____.	minimize distractions
____ is one of the most successful new product idea companies in the world.	IDEO
Most business ideas stem from a/an ____ that an entrepreneur sees in his or her immediate environment.	problem
The second most commonly cited source of new venture ideas is ____.	business associates
Thinking like a/an ____ can stimulate the natural creativity in everyone.	child
Creative ____ is about linking imagination and intelligence, emotion, and logic to arrive at the optimal opportunity.	problem solving
The best question to ask to define a problem is ____?	what is the source of the problem
A/An ____ reflects all the possible choices to solve the problem and its related outcomes.	decision tree
Which of the following rules does not apply to idea generation?	Evaluate individual ideas before modifying them
The ____ produces about three times as many ideas per unit of time and these ideas are generally of much higher quality.	hybrid process
____ involves getting ideas down on paper and then organizing the ideas and creating themes.	Brainwriting
The principle of ____ means looking for the strengths or positive aspects of a problem definition first.	Affirmative Judgment
____ is concerned with the process of commercializing or extracting value from ideas.	Commercialization
The vast majority of innovations today are ____.	incremental
____ innovations can find no identifiable market in the earliest stages of development.	Disruptive
In 2006, ____ percent of successful products were developed in collaboration with others.	79
Strictly speaking, Schumpeter did not see ____ as innovation even if they generated economic growth.	incremental improvements
____ is concerned with the process of commercializing or extracting value from ideas.	Innovation
The two fundamental activities that comprise a/an ____ are creating and capturing value.	business model
A ____ is the community of partners, suppliers, and other members of the value chain with which the venture does business.	value network
Which of the following is not a component of a business model?	Action plan
The strategic choices that a business model addresses should reflect both the ____ and the ____ processes.	value creation / value capture
Entrepreneurs must create a great story to describe how they will make value for all except which of the following?	Internet
The business concept should ____.	be a quick "elevator pitch"
Which of the following is not essential to a business concept?	Revenue model
What of the following is not a benefit to the customer?	Uniqueness
A precise ____ increases the chances that the business concept will meet the customers' needs.	customer definition
What of the following components of the business concept is least likely to ensure the success of the venture?	Money
A new venture's ____ will convey its specific assets and capabilities, and make the venture more comprehensible and compelling.	story
The first two steps in building a business model involve ____ and ____.	identifying position in the value chain / creating customer value
In a/an ____ cost structure, the primary costs of the business come from customer acquisition.	marketing
The more information an entrepreneur acquires through ____, the higher the chance that his or her predictions will be close to the mark, risk will be reduced and uncertainty managed.	feasibility analysis
The feasibility analysis is about ____ a new business concept.	testing
The feasibility analysis includes all of the following except ____.	investor analysis
Which type of business is most likely to be launched on the strength of a feasibility analysis alone?	Internet-related business
Which of the following is one of the three broad questions that a feasibility analysis answers?	Do the capital requirements, based on estimates of sales and expenses, make sense?
Many weak business concepts can be eliminated from consideration ____.	by answering a few simple questions
Most successful startups involve ____.	teams rather than solo entrepreneurs
The value chain includes the ____.	distribution channel
In general, the ____ is the one who pays for the product.	customer
A clear and precise definition of the ____ increases the chances that the business concept will meet the needs of the market.	customer
Most businesses today produce both products and services that provide ____, which gives the company a competitive advantage.	multiple revenue streams
The question of how to deliver the benefit to the customer is answered by ____.	the distribution channel
A/An ____ starts with a concept statement, specifying the pain or need in the market, the potential first customer, the value proposition for that customer, and how the value proposition will be delivered to the customer.	quick screen
For a new product or service to be successful, it should ____.	solve a problem that customers have
One part of the feasibility analysis addresses the business process. This part is called the ____.	product/service analysis
____ with customers should give the entrepreneur confidence that the solution being provided is recognized as valuable by customers.	Market research
____ is very different from a business model because it considers more than the customer and how the new venture will create and capture value; it considers the competition.	Strategy
A/An ____ is a grouping of competitors that an entrepreneur targets.	market
A/An ____ analysis includes the political, sociocultural, economic, and technological environments in which the new venture will operate.	PEST
The industry in which a new venture will operate is the business's ____.	external environment
Google, Wikipedia, journals, and trade magazines are examples of ____.	secondary sources
To access the timeliest information, it is important to gather ____ on an industry.	primary data
As more firms enter an industry, intense ____ occurs.	differentiation
The ____ period moves the industry from many companies and high product costs, to a more stable industry with only a few efficient firms.	shakeout
____ change is found in industries where resources turn over frequently and must continually be replaced.	Creative
____ has provided a way of effectively looking at the structure of an industry and at a company's competitive strength and positioning relative to that industry and to the markets it serves.	Porter's Five Forces
Brand equity, advertising expense, and the rate of industry growth are part of which of Porter's forces?	Intensity of competitive rivalry
The "first customer" is the customer who pays for the product or service and is the customer with the most ____.	pain
"How is the industry described?," "Is the industry growing?," and "Where are the opportunities?" are all examples of the questions that should be answered when conducting the ____.	industry analysis
It is best to begin researching the industry by using ____ information about the industry.	secondary
Birth, growth and adaptation, and shakeout are stages of the ____ life cycle.	industry
A new industry goes through volatile and rapid changes as companies and their respective technologies jockey for position and the right to determine industry standards. This is what stage of the industry life cycle?	Growth and adaptation
____ change takes place as companies in the industry grow geographically and increase profits through innovations in operations, processes, distribution, and technology.	Progressive
The model most commonly used to help an entrepreneur analyze an industry is ____.	Porter's Five Forces Model
What is the phrase that is associated with the costs to produce a product when those costs have declined relative to the price of industry's goods and services?	Economies of scale
To analyze specific aspects of the macro-environment, an entrepreneur should use ____.	a PEST analysis
Analyzing the government, demographics, cost of capital, and rate of change are all part of the ____.	PEST analysis
Identifying and profiling the first customer, estimating potential demand from that customer, and identifying subsequent customer segments and needs to grow the company are goals of market research for ____.	a new company
The ____ is an unserved niche that enables the entrepreneur to enter a market with no direct competition for a time.	first customer
A good starting point for gathering secondary market data is ____.	the Internet
The market research process has ____ steps.	four
The second step in the market research process is ____.	researching secondary data
Observation, online or in-person surveys, phone surveys, interviews, and informal focus group are all ways to collect ____ data.	primary
____ is the first step in an anthropological approach to customer observation.	Induction
Providing more opportunity for clarification and discussion, the observation of nonverbal communication, and the high response rate are all examples of the advantages of ____.	structured interviews
Age, income level, education, and buying habits are all components of the ____.	customer profile
A/An ____ lays out the benefits, distribution channel, product/service, and potential competition for each identified customer segment.	customer matrix
The main reason for new product development failure is lack of ____.	good market and industry analysis
Initial market tests are accomplished using a working ____ of near production quality.	prototype
____ product development provides a young firm with a network of expertise that it couldn't afford to hire in-house.	Outsourcing
A ____ consists of a novel and confidential formula, device, idea, process, pattern, or compilation of information that gives the owner a competitive advantage in the marketplace.	trade secret
____ protect original works of authors, composers, screenwriters, and computer programmers.	Copyrights
To qualify for ____, the work must be in a fixed and tangible form; that is, one must be able to see or hear it.	federal copyright protection
The ____ prohibits the falsification, alteration, or removal of copyright management data on digital copies, making it a crime to circumvent an encrypted work without authorization.	Digital Millennium Copyright Act
Like patents, ____ can suffer from infringement, counterfeiting, or misappropriation.	trademarks
Poor execution, time-to-market increases, and missed first-to-market opportunities are some of the problems associated with ____.	lack of new product development resources
Lack of good market analysis, technical problems, and human error are reasons for ____.	new product failure
Opportunity recognition, technical feasibility analysis, and prototype building and field testing are elements of the ____.	product development cycle
____ can be defined as the activity that transforms a set of requirements into a format that brings all the elements into an integrated whole or system.	Product design
The probability of success for a new product launch is about ____ percent.	60
Intellectual-property rights are protected by ____.	patents trademarks copyrights trade secrets All of these choices
Beginning in the late 1990s, what percent of the Fortune 100 companies' market capitalization was based on intellectual property?	75 percent
A ____ is the primary means of protecting an original invention.	patent
Customer identification, customer validation, and ____ are all part of the product development cycle.	business creation
What percent of all patents come from large companies?	80 percent
In the context of patent protection, ____ is knowledge that is publicly available or was published prior to the date of the inventionthat is, before the filing of the patent application.	prior art
The three major categories of patents are design patents, business method patents, and ____ patents.	utility
The need of Internet companies to protect their ways of doing business is addressed by a/an ____ patent.	business method
Which of the following is not eligible for a patent?	A naturally occurring substance
In 2006, the ____ was signed into law to provide relief to owners whose marks have been tarnished by third-party marks.	Trademark Dilution Revision Act
____ is knowledge that is publicly available or was published prior to the date of the inventionthat is, before the filing of the patent application.	Prior art
____ patents are the most common type of patent.	Utility
Most countries require that an invention be manufactured in the country within ____ of the issuance of the foreign patent.	three years
A ____ is a way for inventors to use the term patent pending.	provisional patent
The ____ protects inventors from infringers who would violate a patent by making small, insignificant changes in the claims.	doctrine of equivalents
____ is found if a trademark is likely to cause confusion with a trademark already existing in the marketplace.	Infringement
Under the Copyright Extension Act of 1998, a copyright lasts for the life of the holder plus ____ years.	70
____ staff is a way for a new business to enjoy the advantages of having the kind of skilled work force available to major corporations without incurring so many of the expenses.	Leasing
All of the following are part of an entrepreneur's extended network except ____.	customers
Which of the following is not a professional advisor to an entrepreneur?	Board of directors
____ status or legitimacy is derived principally from the entrepreneur's education and experience.	Achieved
The chances of success are greater when the lead entrepreneur and the team share the same ____ for the new venture.	vision
____ are more likely to make the mistake of putting structure on the organization before its time.	Startup teams
Increasingly, we are seeing more firms founded by ____ going international from startup.	startup teams
Which of the following is not an independent contractor you would expect to find on an entrepreneur's extended team?	Board of advisors
The intense effort required of a startup can be shared when the entrepreneur uses a ____.	founding team
When an entrepreneur decides to use a team effort to create the new venture, he or she generally looks for people who have ____ skills.	complementary
A high-tech venture with significant up-front funding and the potential for exponential growth requires a management team of ____.	experienced professionals
Attorneys can provide the new venture with a wealth of support, which includes all the following except ____.	preparing financial statements
An accountant can help a growing business in all of the following except ____.	preparing documents for acquisition of intellectual-property rights
A/an ____ is an advocate, but a/an ____ is bound by rules and ethics that do not permit advocacy.	lawyer / accountant
To determine whether the accounting and control procedures are adequate once the new venture is beyond the startup phase and is growing consistently, ____.	an annual audit is needed
The firm's ____ should be thought of as a business partner who can be a source of information and networking; help make decisions regarding capital needs; and assist in preparing pro forma operations and cash-flow analyses.	banker
The entrepreneurial team owns all or the majority of the stock in a ____.	privately owned corporation
A board member who is a founder, employee, or retired manager of the firm is a/an ____.	inside board member
A board member with no direct connection to the business is a/an ____.	outside board member
When choosing people to serve on the board of directors, consider those who have all of the following characteristics except ____.	exploitive behavior
The board is headed by the chairperson, who, in a new, private venture, is typically the ____.	lead entrepreneur
An informal panel of experts and other people who are interested in seeing the new venture succeed is a/an ____.	advisory board
A/An ____ consists of individuals whom the entrepreneur respects and trusts. They serve as a sounding board for ideas and act as coaches.	personal mentor board
Parties who run their own businesses and are hired by the entrepreneur to do a specific job are ____.	independent contractors
One of the biggest incentives for taking on the risk of a startup venture is the opportunity to acquire a/an ____ stake and participate in the potential upside if the startup is a success.	equity
There are two types of ____ agreements: a cross-purchase agreement and a stock redemption agreement.	buy-sell
Which of the following is a service that consultants do not provide?	Bringing the activity in-house
Because they tend to be fairly expensive, consultants are best used for ____.	critical one-time advice or problem solving
The Law of Agency defines the terms employee and independent contractor ____.	on issues of taxation
The functions assumed by a professional employer organization include ____ functions.	payroll and human resource
Pro forma financials are a key part of the ____.	business plan
The bottom line for any new venture is to have ____.	positive cash flow
Determining what resources are needed, when they are needed, and how to acquire them is a critical piece of the ____.	feasibility analysis
Which of the following would not be considered a startup resource?	Feasibility analysis
Which of the following is not one of the categories into which the resources of a company are often divided?	Value chain
Creating a ____ is the first step in calculating startup capital requirements.	process map
Once the entrepreneur determines where the new venture lies in the value chain, he or she must create a ____.	timeline
Whenever there is competitive rivalry, prices tend to be ____.	lower
How a product or service is priced is a function of the company's ____.	goals
Which of these pricing strategies will help a new firm maximize cash flow?	Raise price and reduce direct costs
____ starts with a high price to establish uniqueness; then drops the price as competitors enter the market.	Price skimming
It is important to ensure that the final price to the customer or end user is tolerable, given all the mark-ups along the value chain. This is called ____.	product bundle pricing
One mistake that entrepreneurs make is to set their prices so that they cover ____ costs plus a margin the entrepreneur is expecting to achieve.	total
Entrepreneurs can reach a price that can be tested in the market by considering costs, competitor pricing, and ____.	Both "feedback from customers" and "feedback from value chain partners"
In figuring ____, entrepreneurs must convert time to dollars and consider an opportunity cost.	customer acquisition cost
Internet ventures have unique metrics because they typically start with three types of "customers": visitors, contributors, and ____.	distributors
____ is found by subtracting variable costs from revenues and dividing the difference by revenues to yield a percentage.	Contribution margin
Which of the following is not a technique that can help entrepreneurs arrive at a realistic forecast of demand for their product or service?	Prepare revenue forecasts
In a manufacturing business, which of the following is not part of the calculations used to forecast the costs of goods sold (COGS)?	Product delivery
In service businesses, the cost of goods sold (COGS) is equivalent to the time expended to ____ and ____ the service.	produce / deliver
Which of the following is not part of direct selling expenses?	Telephone expenses
Indirect selling expenses are not linked to the sale of a specific product and include interest, telephone expenses, and ____.	postal charges
In manufacturing businesses, forecasting expenditures is a bit more complex because ____ must be derived first.	cost of goods sold
Entrepreneurs need to remember that ____ costs are the biggest costs the business will bear.	employee
A/an ____ statement is, essentially, a cash budget or sources and uses statement.	direct cash flow
The ____ is an amount of cash that is often based on the sales and collection cycle of the business.	safety margin
For ____ companies, the actual delivery costs must be based initially on information gathered from other companies in the industry.	service
The best way, and sometimes the only way, to accurately gauge customer demand is to ____.	go into limited production
\____ represent(s) how the startup uses its cash to cover its overhead before it generates a positive cash flow from operations.	Monthly burn rate
A month-by-month timeline shows a year in the life of a business with key milestones and anticipated ____.	triggers

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