Business Innovation
Exam Review
Course Introduction
Business Innovation explores the processes, strategies, and mindsets essential for developing new ideas and transforming them into successful products, services, or business models. This course examines the role of innovation in driving competitive advantage, fostering organizational growth, and responding to changes in the market environment. Students will analyze case studies, engage in creative problem-solving, and learn practical tools for generating innovative solutions within entrepreneurial and established business contexts. Emphasis is placed on cultivating an innovation culture, managing change, and evaluating the risks and rewards associated with innovative initiatives.
Recommended Textbook
Entrepreneurship Theory Process and Practice 10th Editionby Donald F. Kuratko
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15 Chapters
444 Verified Questions
444 Flashcards
Source URL: https://quizplus.com/study-set/1416
Page 2
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) Entrepreneurs are high risk takers.
A)True
B)False
Answer: False
Q2) Entrepreneurs are born not made.
A)True
B)False
Answer: False
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
Q4) Entrepreneurs always start their business at a young age.
A)True
B)False
Answer: False
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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) Characteristics often attributed to the entrepreneur include:
A)Commitment, determination, and perseverance
B)Prefers to be a loner
C)Power hungry
D)Ability to be indecisive
Answer: A
Q2) Explain and discuss the "dark side" of entrepreneurship.
Answer: The entrepreneurial profile has its destructive side. First,the need for control can become an obsession. The need for control can cause problems in networking and in an entrepreneurial team. A sense of distrust can cause the entrepreneur to lose sight of reality or focus on trivial things. An entrepreneur's desire for success can also be destructive if the individual becomes more important than the venture itself. The last "dark side" trait is external optimism. When the entrepreneur takes optimism to the extreme,he or she may begin using a fantasy approach to the business. Trends,facts,and reports are ignored because the entrepreneur thinks everything will turn out fine.
Q3) There is a certain psychic risk involved with entrepreneurship.
A)True
B)False
Answer: True
Page 4
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Chapter 3: The Entrepreneurial Mind-Set in Organizations: Corporate Entrepreneurship
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28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/28108
Sample Questions
Q1) Firms do not need to alter management techniques to encourage corporate entrepreneurship since it tends to occur naturally.
A)True
B)False
Answer: False
Q2) One reason that corporate entrepreneurship has become popular is because it allows corporations to tap the innovative talents of the personnel.
A)True
B)False
Answer: True
Q3) Systematic evolution of a product or service into newer or larger markets is referred to as radical innovation.
A)True
B)False
Answer: False
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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
Source URL: https://quizplus.com/quiz/28109
Sample Questions
Q1) Among the advantages for global entrepreneurs of diaspora networks is
A)the speed with which information flows across borders
B)the distrust among traditional trading partners
C)the creation of places where anything can happen
D)the decline in political risks across ethnic communities
Q2) Explain the concept of informal international alliances. What path do entrepreneurs usually follow with respect to informal international alliances?
Q3) Ecopreneurs are concerned
A)only with ecologically sustainable development
B)only with economically sustainable development
C)both ecologically and economically sustainable development
D)neither ecologically nor economically sustainable development
Q4) An L3C is a new legal form for social enterprises known as
A)limited liability corporations
B)low-profit, limited liability companies
C)long-term, low-profit, low-liability companies
D)limited liability laborers
Q5) List some activities that have come to be associated with social entrepreneurship.
Q6) In the context of benefit corporations,what does transparency refer to?
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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) Creativity is most likely to occur when the "climate" is right. The text listed several important characteristics of this climate. What is the right climate?
Q2) Which of the following is a characteristic of creative people?
A)bright but not necessarily brilliant
B)poor image of themselves
C)rigid and dogmatic
D)unmotivated by challenging problems
Q3) Innovation is the process by which entrepreneurs convert opportunities into marketable ideas.
A)True
B)False
Q4) List and briefly explain each of the phases in the creative process.
Q5) Looking for different or unorthodox relationships among elements and people is one way to develop creativity. How might a person develop this capacity?
A)by perceiving in a relational mode
B)by perceiving in a restraining mode
C)by perceiving in a restructured mode
D)by perceiving in a retinal mode
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Chapter 6: Assessment of Entrepreneurial Opportunities
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28111
Sample Questions
Q1) Using the failure prediction model discussed in the chapter,the risk of failure can be reduced by:
A)using less debt as initial financing and generating revenue in the initial stages.
B)using more debt as initial financing and generating less revenue in the initial stages.
C)using more revenue to enhance more debt in the initial stage.
D)all of the above.
Q2) Feasibility analyses include technical,market,financial,organizational,and competitive analyses.
A)True
B)False
Q3) An approach developed as a criteria selection list from which entrepreneurs can gain insights into the viability of their venture is the
A)feasibility criteria approach.
B)time-essence of a venture approach.
C)marketability feasibility approach.
D)comprehensive feasibility approach.
Q4) List and describe three pitfalls in selecting a new venture.
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8
Chapter 7: Pathways to Entrepreneurial Ventures
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28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/28112
Sample Questions
Q1) An advantage to buying an on-going business is A)reduced concern over future operations.
B)time and effort are reduced
C)it may be purchased at a bargain price.
D)all of the above.
Q2) When purchasing an existing business,the prospective owner should conduct an assessment of the business's current group of employees.
A)True
B)False
Q3) The Federal Trade Commission does not provide information on franchise success. A)True
B)False
Q4) Briefly explain the new-old approach to creating new ventures.
Q5) What is the role of business brokers in acquiring an established entrepreneurial venture?
Q6) Franchisees have the option of using the logo and symbols of the franchisor. A)True B)False
Q7) Why did the Federal Trade Commission enact the Franchise Rule?
Page 9
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Chapter 8: Sources of Capital for Entrepreneurs
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28113
Sample Questions
Q1) What is the potential future of crowdfunding sites to raise capital with respect to entrepreneurs?
Q2) Major trends in the venture capital field today include all of the following except A)less specialized and more homogenous funds
B)emerging feeder funds
C)decrease in start-up investment amounts
D)global reach
Q3) The entrepreneur should ask the venture capitalist _____ questions. A)at most ten
B)exactly twenty
C)an unlimited number of D)no
Q4) Informal risk capitalists are often referred to as "business angels."
A)True
B)False
Q5) Because the advantages of going public outweigh the disadvantages,it is in a corporation's best interest to go public.
A)True
B)False
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Chapter 9: Legal Challenges of Entrepreneurial Ventures
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28114
Sample Questions
Q1) What are the uses of trademarks and how can they be invalidated?
Q2) It often is possible to obtain more capital and a better range of skills in a sole proprietorship than in a partnership.
A)True
B)False
Q3) The owner of a copyright may do all of the following except
A)reproduce the work.
B)deduct the intrinsic value of the rights from one's taxes
C)perform the work publicly.
D)display the work publicly.
Q4) A copyright provides exclusive rights to creative individuals for the protection of their artistic productions.
A)True
B)False
Q5) Chapter 7,Chapter 9,and Chapter 11 are the most common forms of bankruptcy. A)True
B)False
Q6) Define a patent and describe its limitations.
Q7) What does a copyright protect?
Q8) What are the rules for avoiding pitfalls in selecting trademarks?
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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) Explain the new marketing concept?
Q2) Social media marketing is the application of online collaborative media for marketing purposes.
A)True
B)False
Q3) Pricing procedures are the same for all types of ventures.
A)True
B)False
Q4) 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
Q5) What is skimming?
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
Q6) What is guerrilla marketing?
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 that is a statement of estimated income and expenses over a specified period of time is referred to as an
A)anticipated budget.
B)operating budget.
C)entrepreneurial budget.
D)expected results budget.
Q2) Define break-even analysis and identify some useful methods for finding the break-even point.
Q3) A variable cost
A)changes in the same direction and in inverse proportion to changes in operating activity.
B)changes in the opposite direction and in direct proportion to changes in operating activity.
C)changes in the same direction and in direct proportion to changes in operation activity.
D)is synonymous with labor costs
Q4) What is included in an operating budget and how is this helpful?
Q5) Explain what a cash flow budget tells a manager/owner.
Q6) Explain pro forma statements.
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Chapter 12: Developing an Effective Business Plan
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28117
Sample Questions
Q1) Which of the following is a critical factor to be considered in the management segment?
A)suppliers
B)location of the plant
C)organizational structure
D)product design
Q2) What is the significance of a harvest strategy segment in a business plan?
A)It is important for the entrepreneur to plan for a liquidity event as an exit strategy.
B)It is important for the entrepreneur to know how to buy up troubled companies.
C)It is important for the entrepreneur to indicate how the business will increase in value.
D)It is important for the entrepreneur to designate how the business will recruit new talent to the enterprise.
Q3) An entrepreneur is much better off preparing his or her own business plan rather than hiring someone else,even if more experienced,to prepare it.
A)True
B)False
Q4) How does a business plan benefit the entrepreneur?
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15
Chapter 13: Strategic Entrepreneurial Growth
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28118
Sample Questions
Q1) A reason for lack of strategic planning has been found to be
A)lack of preference.
B)time sharing.
C)lack of expertise.
D)lack of dominance.
Q2) Define strategic planning and describe the five basic steps that must be followed in establishing a strategic plan.
Q3) The entrepreneurial strategy matrix measures:
A)risk and security.
B)commitment and time.
C)risk and innovation.
D)opportunity and time.
Q4) Which of the following factors would not be considered a key dimension that shapes the strategic management activities of a growing firm?
A)speed of decision making
B)internal political problems
C)environmental uncertainty
D)lack of knowledge
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) The price/earnings ratio (multiple of earnings) method is determined by dividing the market price of common stock by retained earnings.
A)True
B)False
Q2) List some of the questions to ask before making a potential purchase and explain why each is important.
Q3) __________ refers to conducting a thorough analysis of every facet of an existing business.
A)Due diligence
B)Industry capitalization
C)Knowledge acquisition
D)Risk assessment
Q4) Closely held ventures usually suffer from which of the following shortcomings?
A)a lack of management depth
B)overcapitalization
C)insufficient controls
D)internal conflict
Q5) What should be considered in analyzing a business and what are some weaknesses of small business?
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Chapter 15: Harvesting the Entrepreneurial Venture
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/28120
Sample Questions
Q1) A harvest plan defines how and when the owners and investors will realize an actual cash return on their investment.
A)True
B)False
Q2) Succession pressure inside the firm exists
A)when the founder wants to give up authority.
B)when family members want to keep and manage the business.
C)nonfamily employees don't want the business.
D)competition-is hurting the business.
Q3) Which of the following steps should be carried out third when deciding to sell a business?
A)Publicize the offer to sell.
B)Value the business.
C)Finalize the prospective buyers.
D)Time the sale appropriately.
Q4) An entrepreneurial successor is someone who is interested in efficiency and the effective use of resources.
A)True B)False
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