Business Innovation
Exam Answer Key
Course Introduction
Business Innovation explores the strategies, processes, and tools that organizations use to develop new ideas, products, services, and business models to gain a competitive advantage. This course examines the drivers and barriers to innovation, creative problem-solving techniques, and frameworks for managing change in dynamic business environments. Students will analyze case studies of innovative organizations, understand the role of leadership and culture in fostering innovation, and learn how to implement innovative practices within existing businesses or entrepreneurial ventures. Emphasis is placed on applying critical and creative thinking to real-world business challenges and developing actionable plans for innovation-driven growth.
Recommended Textbook
Entrepreneurship Theory Process and Practice 10th Editionby Donald F. Kuratko
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15 Chapters
444 Verified Questions
444 Flashcards
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Chapter 1: Entrepreneurship: Evolutionary
Development-Revolutionary Impact
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28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/28106
Sample Questions
Q1) The "corridor principle" is best described by which of the following statements?
A)If at first you don't succeed, try, try, again.
B)Being in the right place at the right time.
C)With every new venture launched, new and unintended opportunities arise.
D)Luck happens when preparation meets opportunity.
Answer: C
Q2) Entrepreneurs and gazelles have been credited with making disproportionate contributions to all but which of the following?
A)innovation
B)job creation
C)economic renewal
D)unemployment
Answer: D
Q3) Which of the following statements is true?
A)Entrepreneurship is the ability to create and build a vision from practically nothing.
B)Entrepreneurship is pure luck.
C)Entrepreneurship is simply obtaining financing and starting a business.
D)Entrepreneurship has nothing to do with creating incremental wealth.
Answer: A
Page 3
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Chapter 2: The Entrepreneurial Mind-Set in Individuals:
Cognition and Ethics
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28107
Sample Questions
Q1) When entrepreneurs believe that their accomplishments and setbacks are within their own control and influence,they are exhibiting
A)persistent problem-solving.
B)internal locus of control.
C)external locus of control.
D)opportunity orientation.
Answer: B
Q2) A decision to sell pharmaceuticals that have not been cleared with the Federal Drug Administration is an example of a(n)
A)illegal and ethical decision.
B)legal and unethical decision.
C)illegal and unethical decision.
D)legal and ethical decision.
Answer: C
Q3) A code of conduct is a statement of ethical practices or guidelines to which an enterprise adheres.
A)True
B)False
Answer: True
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Chapter 3: The Entrepreneurial Mind-Set in Organizations: Corporate Entrepreneurship
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28 Verified Questions
28 Flashcards
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Sample Questions
Q1) The major thrust of corporate entrepreneurship is to
A)encourage greater risk taking.
B)raise profitability.
C)encourage innovation.
D)increase morale.
Answer: C
Q2) Firms do not need to alter management techniques to encourage corporate entrepreneurship since it tends to occur naturally.
A)True
B)False
Answer: False
Q3) Individuals may avoid corporate entrepreneurial behavior due to the impact of traditional management techniques.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Social Entrepreneurship and the Global
Environment for Entrepreneurship
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) Explain the concept of informal international alliances. What path do entrepreneurs usually follow with respect to informal international alliances?
Q2) Licensing agreements can involve patents,trademarks,and technical know-how.
A)True
B)False
Q3) Social obligation,social responsibility,and social responsiveness are all ways firms view their interactions with society.
A)True
B)False
Q4) Why has sustainable development,perhaps,become the most prominent topic of our time?
Q5) The most pro-active position for a corporation to take in regard to social responsibility would be termed
A)social obligation.
B)social intensity.
C)social responsiveness.
D)social decisiveness.
Q6) List some activities that have come to be associated with social entrepreneurship.
Page 6
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Chapter 5: Innovation: the Creative Pursuit of Ideas
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28110
Sample Questions
Q1) What are the four types of innovation?
A)invention, extension, synthesis, duplication
B)extension, retention, analysis, duplication
C)synthesis, extension, retention, analysis
D)analysis, synthesis, duplication, retention
Q2) The phase of the creative process when the idea or solution the individual is seeking is discovered is the
A)background or knowledge accumulation.
B)incubation process.
C)idea experience.
D)evaluation and implementation.
Q3) The four basic types of innovation are invention,extension,duplication,and synthesis.
A)True
B)False
Q4) Creative talents can be improved through practice and awareness of habits that can cause problems. However,there are ways to increase creativity; one area is to recognize relationships. Explain what is meant by this.
Q5) List and briefly explain each of the phases in the creative process.
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Chapter 6: Assessment of Entrepreneurial Opportunities
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) The entrepreneurial motivations of individuals relate to the entrepreneur,the environment,and the venture.
A)True
B)False
Q2) Which of the following is critical to a product's success?
A)timing
B)marketing approach
C)objectivity
D)all of the above
Q3) Most entrepreneurs are objective when they evaluate their new idea.
A)True
B)False
Q4) List and describe three pitfalls in selecting a new venture.
Q5) Overall market understanding rather than a time-consuming focus on market niches is sufficient for an evaluation.
A)True
B)False
Q6) Explain three major reasons why new ventures fail.
Q7) What sorts of legal issues can be overlooked when assessing an entrepreneurial opportunity?
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Chapter 7: Pathways to Entrepreneurial Ventures
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28 Verified Questions
28 Flashcards
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Sample Questions
Q1) When purchasing an existing business,the prospective owner should conduct an assessment of the business's current group of employees.
A)True
B)False
Q2) What is the role of business brokers in acquiring an established entrepreneurial venture?
Q3) Franchisees have the option of using the logo and symbols of the franchisor.
A)True
B)False
Q4) A key question to ask when buying an on-going small business is which of the following?
A)How old is the business?
B)Where should you retire someday?
C)Can you become a millionaire by buying this business?
D)How many personnel are going to remain?
Q5) Why did the Federal Trade Commission enact the Franchise Rule?
Q6) The prospective investor should get as much information as possible on the franchisor.
A)True
B)False
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Chapter 8: Sources of Capital for Entrepreneurs
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) Sophisticated investors are wealthy individuals who invest more or less regularly in new and/or early- and late-stage ventures.
A)True
B)False
Q2) Which is one of the most important questions for entrepreneurs to ask regarding venture capitalists?
A)What is it like to work with their firm?
B)Are they good communicators?
C)Are they wealthy?
D)Are they good at financial computation?
Q3) The most common source of debt financing is A)trade credit.
B)factoring.
C)commercial banks.
D)finance companies.
Q4) A disadvantage of debt financing is
A)regular interest payments.
B)possible cash flow enhancement.
C)inhibition of growth and development due to equity investments.
D)relinquishment of ownership.
Page 10
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Chapter 9: Legal Challenges of Entrepreneurial Ventures
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) When considering bankruptcy,entrepreneurs as sole proprietors normally prefer
A)Chapter 5.
B)Chapter 7.
C)Chapter 11.
D)Chapter 13.
Q2) Works created after January 1,1978,have a copyright for the life of the author plus
A)70 years.
B)50 years.
C)14 years.
D)10 months.
Q3) A trademark is a distinctive name,mark,or symbol that is identified with a company's product.
A)True
B)False
Q4) Laws governing intellectual property rights include copyrights,trademarks,and leases.
A)True
B)False
Q5) What does a copyright protect?
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Chapter 10: Marketing Challenges for Entrepreneurial Ventures
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28115
Sample Questions
Q1) Of the following,which is not associated with entrepreneurial tactics in market research?
A)guerrilla marketing
B)lead user research
C)in-person interviews
D)blog monitoring
Q2) What is meant by pricing for the life cycle?
A)that pricing needs to be adjusted at each stage in a product's life cycle
B)that pricing needs to be increased at each stage in a product's life cycle
C)that pricing of new products needs to start out low and end high
D)that pricing of new products needs to start out high and end low
Q3) What is penetration pricing?
A)setting price to maximize profit
B)setting price to maximize market share
C)setting price to switch customers to new product lines
D)setting price to match the competition
Q4) Identify and describe two pricing models pertinent to the social media age?
Q5) What is guerrilla marketing?
Q6) What is skimming and what are its effects?
Q7) Explain the new marketing concept? Page 12
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Chapter 11: Financial Preparation for Entrepreneurial Ventures
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28116
Sample Questions
Q1) A budget is one of the most powerful tools that an entrepreneur can use in planning business operations.
A)True
B)False
Q2) Capital budgeting is designed to show
A)how many projects, in total, should be selected.
B)which project is most profitable.
C)which of several mutually exclusive projects should be selected
D)how to evaluate projects based on rates of return.
Q3) Which of the following are forms of pro forma statements?
A)income statements
B)balance sheets
C)costs of goods sold
D)a and b
Q4) Break-even analysis is a technique commonly used to assess the A)rate of return on investment.
B)expected product profitability.
C)net present value.
D)total costs.
14
Q5) List the elements of a capital budget and define its main objective.
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Chapter 12: Developing an Effective Business Plan
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) An indicator of the planning pitfall of "failure to anticipate roadblocks" is A)recognition of future problems.
B)making no admission of possible flaws in the plan.
C)having a contingency or alternative plan.
D)pursuing a good work force.
Q2) What are some of the errors made in the preparation of a business plan that minimize an entrepreneur's chance for success?
Q3) The easiest way to avoid the pitfall of no commitment or dedication is to designate that the venture is a hobby or a whim.
A)True
B)False
Q4) The entrepreneur should expect to encounter a friendly and supportive audience when presenting the business plan to potential financial sources.
A)True
B)False
Q5) What is the basic structure of a business plan?
Q6) How does a business plan benefit the entrepreneur?
Q7) How should an entrepreneur prepare to present his or her business plan?
Page 15
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Chapter 13: Strategic Entrepreneurial Growth
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) In the strategy matrix model,innovation is defined as
A)an invention.
B)something new and different.
C)copying and improving on competitor's products.
D)using practical milestones.
Q2) The "best" strategic plan will be influenced by the abilities of the entrepreneur,the complexity of the venture,and the nature of the industry.
A)True
B)False
Q3) All of the following are characteristic of entrepreneurial cultures except:
A)action orientation
B)hierarchy
C)episodic use of required resources
D)multiple informal networks
Q4) Misunderstanding industry attractiveness can be a fatal flaw in strategic planning. A)True
B)False
Q5) Does strategic planning pay off?
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Chapter 14: Valuation of Entrepreneurial Ventures
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28119
Sample Questions
Q1) Emotional bias is not an underlying issue in valuing a business.
A)True
B)False
Q2) Sales and earnings of a venture are projected from
A)historical projections
B)historical financials
C)data on start-ups
D)property values
Q3) When considering physical facilities,the entrepreneur should be concerned about
A)which facilities are owned versus leased.
B)which facilities are used for production.
C)whether adequate capital is maintained.
D)facility upkeep.
Q4) If cash flow is deemed the most important consideration in buying a business,which valuation method is likely to be used?
A)adjusted tangible book value
B)price/earnings ratio
C)high equity/low debt
D)discounted earnings
Q5) Explain the purpose of a letter of intent.
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Chapter 15: Harvesting the Entrepreneurial Venture
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) The harvest decision may come when the venture has grown to a stage where an IPO is a possibility.
A)True
B)False
Q2) The president of a successful lumberyard has decided to retire in a year. There are two relatives working in the lumberyard who want to take over,but have little business knowledge. The president wants to keep the company in family hands. What should be done so the company stays in the family?
Q3) Bill and James Raymond have worked for their father's company for 15 years. Their father,who is president and now wants to retire,wants his sons jointly to take over the company. Bill and James have never agreed on anything. Should their father try another succession plan?
Q4) A harvest plan
A)is similar to a will.
B)defines when and how business owners will realize a cash return on investment.
C)leaves the business to the next generation.
D)is simple to implement.
Q5) What are the four critical steps to consider in developing a succession strategy in a family business?
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