Entrepreneurship and Innovation
Exam Questions
Course Introduction
Entrepreneurship and Innovation explores the fundamental principles and practices involved in creating, developing, and scaling new ventures within various industries. This course examines the entrepreneurial mindset, opportunity recognition, business model development, and resource acquisition, alongside the processes of fostering innovation in products, services, and organizational structures. Through the analysis of case studies, interactive discussions, and practical assignments, students will gain insight into the challenges and strategies associated with launching startups and driving innovation in both established organizations and emerging markets. Emphasis is placed on critical thinking, creative problem-solving, and the development of skills essential for successful entrepreneurial leadership in a dynamic global economy.
Recommended Textbook
Entrepreneurship A Process Perspective 2nd Edition by Robert A. Baron
Available Study Resources on Quizplus
13 Chapters
745 Verified Questions
745 Flashcards
Source URL: https://quizplus.com/study-set/637
Page 2
Chapter 1: Entrepreneurship:: A Field, an Activity - and a Way of Life
Available Study Resources on Quizplus for this Chatper
55 Verified Questions
55 Flashcards
Source URL: https://quizplus.com/quiz/12071
Sample Questions
Q1) One reason that more people are choosing to be entrepreneurs,rather than entering the workforce through pre-existing companies,is because many people in the younger generation prefer a job allowing them independence and freedom.
A)True
B)False
Answer: True
Q2) There is some evidence that entrepreneurial people think and reason differently than other people. The different way of thinking and reasoning is part of what is known as
A) micro analysis.
B) technology transfer.
C) observation.
D) entrepreneurial cognition.
E) experimentation.
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Entrepreneurial Opportunities: Their Origins, Forms,
and Suitability For New Ventures
Available Study Resources on Quizplus for this Chatper
61 Verified Questions
61 Flashcards
Source URL: https://quizplus.com/quiz/12072
Sample Questions
Q1) Scale economies exist anytime that there is a much larger cost to producing the last unit of something than there is to produce the first unit of something
A)True
B)False
Answer: False
Q2) Which of the following would be the first thing for an entrepreneur to do?
A) Chose a reputable attorney.
B) Create a marketing plan.
C) Find a partner to share the responsibilities with.
D) Identify industries that are favorable to new firms.
E) Hire employees.
Answer: D
Q3) The most common means of developing an opportunity tend to take the form of new products or services.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Cognitive Foundations of Entrepreneurship:
Creativity and Opportunity Recognition
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/12073
Sample Questions
Q1) An entrepreneur running an ice cream store that makes and sells its own ice cream comes up with a new flavor for ice cream while thinking about the new colors and fashions of clothes coming out. This represents which of the following cognitive processes?
A) Availability bias.
B) Best way approach.
C) Factual knowledge.
D) Working memory.
E) Pattern recognition.
Answer: E
Q2) The process through which individuals conclude that they have identified the potential to create something new that has the capacity to generate economic value is called
A) idea generation.
B) creativity.
C) human cognition.
D) opportunity recognition.
E) none of the above.
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: What Entrepreneurs Need to Know Before They
Start: Acquiring and Interpreting Information About Markets
Competitors and Government
Available Study Resources on Quizplus for this Chatper
59 Verified Questions
59 Flashcards
Source URL: https://quizplus.com/quiz/12074
Sample Questions
Q1) Why is it important for entrepreneurs to gather marketing information before starting a new venture and what are some ways of gathering information?
Q2) Focus groups are made up of at least 50 people who are similar to potential customers and who meet for one to two hours to describe their perceptions of and reactions to relevant products.
A)True
B)False
Q3) People in a group are making a decision as a group. The members do not want to bring up information that they think is critical of the decision being discussed. This is known as groupthink.
A)True
B)False
Q4) The best way to gather information about whether or not potential customers will buy a new product is to ask them.
A)True
B)False
Q5) Explain the "discovery test."
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Assembling the Team: Acquiring and Utilizing
Essential Human Capital
Available Study Resources on Quizplus for this Chatper
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/12075
Sample Questions
Q1) In the "Big Five," the extent to which individuals are creative,curious,and have wide-ranging interests versus being practical and have narrow interests is referred to as
A) extraversion-introversion.
B) agreeableness.
C) motives.
D) emotional stability.
E) openness to experience.
Q2) When people are alike on various dimensions,which of the following usually occurs?
A) They are more comfortable in each other's presence.
B) They feel that they know each other better.
C) They are more confident that they sill be able to predict each others' future reactions.
D) A and C only.
E) A, B, and C will usually occur.
Q3) By hiring friends and family members,entrepreneurs are able to acquire human resources quickly,without costly searches.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 6: Financial Resources For New Ventures: How To
Them, How To Manage Them
Available Study Resources on Quizplus for this Chatper
61 Verified Questions
61 Flashcards
Source URL: https://quizplus.com/quiz/12076
Sample Questions
Q1) When new ventures are very young,they rarely obtain debt financing and tend to obtain equity financing instead.
A)True
B)False
Q2) Total assets divided by total debt is called
A) the income statement ratio.
B) debt ratio.
C) operating expenses.
D) cost of sales.
E) profit margin.
Q3) An investor will provide money for a start-up business only if the entrepreneur will agree to giving the investor the right to approve any purchase or sale of assets totaling $100,000 or more. This is know as
A) a proforma statement.
B) a breakeven statement.
C) a mandatory redemption.
D) a covenant.
E) a business angel.
Q4) Define illiquidity premium and explain why it would be used.
Page 8
Q5) Define debt and equity financing and discuss how they differ from each other.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Writing An Effective Business Plan: Building A
Road Map to Success
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/12077
Sample Questions
Q1) According to the text,when writing a business plan,
A) anything more than 10 to 20 pages is almost certainly overkill.
B) anything more than 40 to 50 pages is almost certainly overkill.
C) the longer the better..
D) the shorter the better..
E) None of these are correct. A business plan should be at least 100 pages.
Q2) Which of the following statements is NOT true about business plans?
A) A carefully prepared and well reasoned business plan will help with the process of planning.
B) Once developed, a business plan should not change and should remain constant as the business develops.
C) A business plan will explain what the new venture is trying to accomplish.
D) A business plan should mention how the business will go about attaining its goals.
E) All of the above correctly describes a business plan.
Q3) The seven deadly sins of a business plan are potential threats,but should not be considered very important when showing the plan to possible investors.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Legal Issues Relating To New Ventures:
Available Study Resources on Quizplus for this Chatper
55 Verified Questions
55 Flashcards
Source URL: https://quizplus.com/quiz/12078
Sample Questions
Q1) In a limited partnership,the general partner is the person who manages the business.
A)True
B)False
Q2) Assume that you work for a certain business and sign a nondisclosure agreement. That means you cannot discuss secret information of your employer with others outside of the business.
A)True
B)False
Q3) Describe an S Corporation. Examine the requirements and the consequences if such requirements are not met.
Q4) A manager who owns a used car company sells a car to a person who is a minor. A contract is signed by the minor,the minor makes a down payment,and takes the car home. Later,the minor decides that he does not want the car and refuses to make any more payments. This contract is binding on the minor and he must make the payments.
A)True
B)False
Q5) Compare and contrast a sole proprietorship and a franchise.
Page 10
Q6) Explain "consideration" as a basic element of a contract.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Marketing in a New Venture
Available Study Resources on Quizplus for this Chatper
56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/12079
Sample Questions
Q1) Product improvements are a function of time,not effort.
A)True
B)False
Q2) Entrepreneurs are most successful when they start a company that meets a real need.
A)True
B)False
Q3) Established businesses tend to not compete with new products or services on the early part of the S curve.
A)True
B)False
Q4) The idea that an existing company might have a difficult time developing a new product for a new market because it listens closely to current customers is known as A) conjoint analysis.
B) policy capturing.
C) tyranny of the current market.
D) first mover advantage.
E) the S curve.
Q5) Identify and explain an example using the product development S-curve?
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Strategy: Planning For Competitive Advantage
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/12080
Sample Questions
Q1) Which of the following statements is not true when being the first mover or the first firm to serve customers in a market?
A) When network externalities are present, being the first mover is an advantage.
B) Being the first mover gives the entrepreneur the first chance at obtaining life long customers.
C) Being the first mover is advantageous when there are high switching costs for customers.
D) Being the first mover will give the entrepreneur a chance to set the market standard.
E) All of the above statements are true.
Q2) Writing goals as part of a comprehensive business plan can help an entrepreneur to be more successful.
A)True
B)False
Q3) Why do people tend to have such a hard time accepting an entrepreneur's business idea as legitimate? What should entrepreneurs do to convince people of their idea?
Q4) What is a competitive advantage and why does an entrepreneur need it?
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Preparing For And Attaining Growth: Strategies
For Building Lasting Success
Available Study Resources on Quizplus for this Chatper
54 Verified Questions
54 Flashcards
Source URL: https://quizplus.com/quiz/12081
Sample Questions
Q1) Fixed costs
A) are costs that are not directly linked to sales.
B) depend upon the amount of a product sold.
C) are represented by equipment in a business.
D) Choices a and b are correct.
E) Choices a and c are correct.
Q2) "Scalable business model" refers to the idea that new increased revenues cost less to deliver than current revenues.
A)True
B)False
Q3) Which of the following statements is not true?
A) High-growth companies are more committed to growth than slower-growing companies.
B) High-growth companies provide products or services that customers cannot get elsewhere more so than slower-growing companies.
C) High-growth companies adopt practices such as profit sharing that tend to motivate employees more so than do slower-growing companies.
D) All of the above statements (a, b, and c) are not true.
E) All of the above statements (a, b, and c) are true.
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Managing New Ventures For Growth
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/12082
Sample Questions
Q1) Mark Ripa doesn't want to leave his job because he has too much time invested at his organization and he would lose 10% of his pension plan if he leaves. This is known as which type of employee retention strategy?
A) Organizational commitment.
B) Continuance commitment.
C) Affective commitment.
D) Normative commitment.
E) Employee stock ownership plans (ESOPs).
Q2) An entrepreneur believes that her employees will act in the ways they promised because they know they will be punished if they do not,the manager is relying upon
A) identification-based trust.
B) calculus-based trust.
C) justice-based trust.
D) personal-based trust.
E) None of the above are true.
Q3) The authors of the textbook say that outsourcing the hiring of employees should not be done.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 13: Exit Strategies For Entrepreneurs: The
Concluding Act
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/12083
Sample Questions
Q1) Money received today is worth more than money that will be received in the future. This principle is known as
A) inflation.
B) time value of money.
C) depreciation.
D) decreased worth.
E) minimizing value.
Q2) Amie Cosmetology decided to sell its company to outsiders. In order to get a good bid,executives put together a marketing document that is designed to attract interest in their business. This document is known as a
A) succession plan.
B) marketing advertisement.
C) selling enhancement tool.
D) selling memorandum.
E) multi-purpose tool.
Q3) The balance sheet method of calculating the net worth of a company is assets minus liabilities.
A)True
B)False
Page 15
To view all questions and flashcards with answers, click on the resource link above.