Entrepreneurship and Innovation Test
Bank
Course Introduction
This course explores the fundamental concepts, processes, and practices involved in entrepreneurship and innovation. Students will examine how new business ideas are generated, assessed, and developed into successful ventures, with particular attention given to opportunity identification, business model design, resource acquisition, and growth strategies. Through real-world case studies, interactive exercises, and project-based learning, participants will gain practical skills in creating and managing startups, as well as fostering innovation within existing organizations. Emphasis is placed on entrepreneurial thinking, creative problem-solving, strategic planning, and navigating the challenges of a dynamic business environment.
Recommended Textbook
Entrepreneurship Successfully Launching New Ventures 5th Edition by Bruce R. Barringer
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15 Chapters
1124 Verified Questions
1124 Flashcards
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2
Chapter 1: Introduction to Entrepreneurship
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75 Verified Questions
75 Flashcards
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Sample Questions
Q1) Over the past 10 years, the demographic makeup of entrepreneurial firms has remained fairly stable in the United States and around the world.
A)True
B)False
Answer: False
Q2) According to the textbook, entrepreneurs are ________.
A) gamblers
B) moderate risk takers
C) aggressive risk takers
D) forceful risk takers
E) minimal risk takers
Answer: B
Q3) Entrepreneurs are usually moderate, rather than high, risk-takers.
A)True
B)False
Answer: True
Q4) Entrepreneurs are motivated primarily by money.
A)True
B)False
Answer: False
Page 3
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Chapter 2: Recognizing Opportunities and Generating Ideas
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75 Flashcards
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Sample Questions
Q1) In the five-stage creative process, the stage in which the creative idea is put into final form is referred to as the ________ stage.
A) insight
B) preparation
C) incubation
D) elaboration
E) evaluation
Answer: D
Q2) Brainstorming is used to generate a number of ideas quickly.
A)True
B)False
Answer: True
Q3) A(n) ________ is a physical or digital repository for storing ideas.
A) suggestion bank
B) idea depository
C) suggestion pool
D) idea bank
E) proposition pool
Answer: D
Page 4
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Chapter 3: Feasibility Analysis
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75 Verified Questions
75 Flashcards
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Sample Questions
Q1) The mechanics for filling out a First Screen worksheet are complicated.
A)True
B)False
Answer: False
Q2) Foundersuite, Quirky and Unassumer are Web sites that provide access to
A) feedback on business ideas
B) landing pages
C) surveys
D) prototyping services
E) market research
Answer: A
Q3) Quirky is a Web site that allows you to submit product ideas to a community that vets and provides feedback on the ideas.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Developing an Effective Business Model
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Sample Questions
Q1) A ________ is a firm's plan or recipe for how it creates, delivers, and captures value for its stakeholders.
A) commercialization plan
B) business model
C) business plan
D) launch plan
E) tactical model
Q2) Google and its AdWords program is an example of a ________ disruptive business model.
A) low-end
B) new-market
C) high-quality
D) low-price
E) new-channel
Q3) Value-driven businesses focus on minimizing costs wherever possible.
A)True
B)False
Q4) What are core competencies? Provide an example of the core competencies that are utilized by an entrepreneurial firm.
Q5) Describe the Barringer/Ireland Business Model Template and discuss its purpose.
Page 6
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Chapter 5: Industry and Competitor Analysis
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Sample Questions
Q1) The two most common strategies pursued by firms in global industries are the ________ strategy and the ________ strategy.
A) inclusive, multidomestic
B) multidomestic, global
C) multidomestic, worldwide
D) inclusive, global
E) home, worldwide
Q2) What is competitive intelligence? What are some of the ways that a firm can ethically obtain information about its competitors?
Q3) Supplier concentration, switching costs, attractiveness of substitutes, and threat of forward integration are factors that have a direct impact on ________.
A) threat of new entrants
B) bargaining power of buyers
C) rivalry among existing firms
D) threat of substitutes
E) bargaining power of suppliers
Q4) What is industry analysis? Why is it important for a new venture to complete a thorough analysis of the industry it is entering?
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Chapter 6: Writing a Business Plan
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Sample Questions
Q1) A company's industry analysis and target market analysis are usually included in the same section of its business plan.
A)True
B)False
Q2) The document that lays out specifically how much money a firm needs, where the money will come from, and what the money will be used for is referred to as a(n)
A) sources and uses of funds statement
B) assumptions sheet
C) pro forma financial statement
D) credit and debit statement
E) capital and operational budgeting statement
Q3) The two primary audiences for a firm's business plan are a firm's employees and investors and other external stakeholders.
A)True
B)False
Q4) A business plan can usually be completed in one to three days.
A)True
B)False
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Chapter 7: Preparing the Proper Ethical and Legal Foundation
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Sample Questions
Q1) Corporations are organized as either ________ corporations or ________ corporations.
A) permanent; temporary
B) general; limited
C) voluntary; statutory
D) C; subchapter S
E) regular; limited liability
Q2) It is usually easier for a corporation to raise investment capital than a sole proprietorship or a general partnership because the shareholders are not liable beyond their investment in the firm.
A)True
B)False
Q3) The vast majority of corporations in the United States are public corporations.
A)True
B)False
Q4) The most important thing that any entrepreneur, or team of entrepreneurs, can do to build a strong ethical culture in their organization is to hire an aggressive attorney.
A)True
B)False
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Chapter 8: Assessing a New Venture's Financial Strength and Viability
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75 Flashcards
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Sample Questions
Q1) Describe the purpose of the income statement, the balance sheet, and the statement of cash flows.
Q2) The statement of cash flows summarizes the changes in a firm's cash position for a specified period of time and details why the change occurred.
A)True
B)False
Q3) Susan Howard owns a seafood restaurant in Naples, Florida. She is currently owed $21,000 by a corporation that she catered a series of meetings for and $3,000 on an overdue account. Amanda has $24,000 in ________.
A) accounts receivable
B) inventory
C) accounts collectable
D) accounts obtainable
E) accounts payable
Q4) Stability is a company's ability to meet its short-term financial obligations.
A)True
B)False
Q5) What are forecasts? What role do they play in the preparation of pro forma financial statements?
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Chapter 9: Building a New-Venture Team
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Sample Questions
Q1) In the context of boards of directors, a(n) ________ director is a person who is also an officer of the firm.
A) outside
B) junior
C) inside
D) expert
E) senior
Q2) A(n) ________ is a panel of experts who are asked by a firm's managers to provide counsel and advice on an ongoing basis.
A) consultation board
B) idea panel
C) counseling panel
D) advisory board
E) suggestion panel
Q3) Describe the term "liability of newness" and suggest several ways that a new venture can overcome this handicap.
Q4) Are more firms started by individuals or founding teams? What are the advantages to founding a firm as a team rather than as an individual?
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Page 11
Chapter 10: Getting Financing or Funding
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Sample Questions
Q1) What is an elevator speech? How did it get its name?
Q2) Equity financing (or funding) means ________.
A) exchanging partial ownership in a firm, usually in the form of stock, for funding
B) getting a grant or outright gift
C) getting a loan
D) getting a lease
E) getting a loan guarantee
Q3) A brief, carefully constructed statement that outlines the merits of a business opportunity is called a(n) ________ speech.
A) subway
B) sway
C) bootstrap
D) teaser
E) elevator
Q4) A lease is a written agreement in which the owner of a piece of property allows an individual or business to use the property for a specified period of time in exchange for payments.
A)True
B)False
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Chapter 11: Unique Marketing Issues
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Sample Questions
Q1) What is a brand? How does a new firm develop a brand?
Q2) Once a firm has segmented the market, the next step is to ________.
A) decide on a position within the segment
B) settle on pricing
C) select a target market
D) establish the company's brand
E) immediately decide on the "4Ps" of the marketing strategy
Q3) A niche market is a place within a market segment that represents a narrow group of customers with similar interests.
A)True
B)False
Q4) Which of the following statements is correct regarding the concept of branding?
A) Brands cannot be built through advertising, public relations, sponsorships, social media, or similar techniques.
B) A company doesn't normally want its customers to identify with its brand.
C) Startups usually start with an established brand.
D) A brand can be one of a company's most valuable assets.
E) A brand can denote a negative impression of a company.
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Page 13
Chapter 12: The Importance of Intellectual Property
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Sample Questions
Q1) Copyright law protects any work of authorship ________.
A) 90 days after it is approved by the U.S. Copyright Office
B) one year after it assumes a tangible form
C) the moment it assumes a tangible form
D) as soon as it is approved by the U.S. Copyright Office
E) 30 days after it assumes a tangible form
Q2) Pictorial, graphic, and sculptural works can be protected via copyrights.
A)True
B)False
Q3) An intellectual property audit is conducted to determine the intellectual property a company owns.
A)True
B)False
Q4) A trademark is a form of intellectual property protection that grants to the owner of a work of authorship the legal right to determine how the work is used and to obtain the economic benefits from the work.
A)True
B)False
Q5) What is a copyright? What is protected by a copyright?
Q6) What is a trademark? Why are trademarks important?
Page 14
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Chapter 13: Preparing for and Evaluating the Challenges of Growth
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Sample Questions
Q1) The What Went Wrong feature in Chapter 13 focuses on Wesabe, a Web-based company that was launched in 2006 to help people manage their personal finances. According to Marc Hedlund, one of Wesabe's cofounders, the company failed for two primary reasons. First, it didn't allow a partner to provide it with an essential service that it decided to build on its own. Second, it ________.
A) didn't hire an experienced CEO
B) didn't achieve a large enough critical mass of users
C) didn't implement a revenue model fast enough
D) didn't utilize both internal and external growth strategies
E) misunderstood its users
Q2) According to Penrose, ________ services generate new market, product and service ideas, while ________ services administer the routine functions of the firm and facilitate the profitable execution of new opportunities.
A) managerial; entrepreneurial
B) administrative; business
C) entrepreneurial; managerial
D) business; commercial
E) commercial; administrative
Q3) What is the organizational life cycle and why is it important?
Page 15
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Chapter 14: Strategies for Firm Growth
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Sample Questions
Q1) External growth strategies rely on establishing relationships with third parties, such as mergers, acquisitions, strategic alliances, joint ventures, licensing, and franchising.
A)True
B)False
Q2) New product development is a low-risk growth strategy.
A)True
B)False
Q3) Two years ago, Cameron Jones and Mary Scott each owned a small chain of smoothie restaurants in New York City. Just recently, they decided to pool their interests and combine their individual chains of restaurants into one chain. What Cameron and Mary did with their firms is called a(n) ________.
A) licensing agreement
B) strategic alliance
C) acquisition
D) joint venture
E) merger
Q4) An advantage of internal growth is that it is a rapid form of growth.
A)True
B)False
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Chapter 15: Franchising
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Sample Questions
Q1) Jim Pierce just purchased the rights to develop multiple School of Rock franchises in Germany. Jim just purchased a(n) ________ franchise arrangement.
A) concurrent
B) indirect
C) lateral
D) direct
E) subordinate
Q2) Which of the following is not an industry in which business format franchises predominate?
A) Soft drink bottlers
B) Business services
C) Hotels and motels
D) Quick service restaurants
E) Automotive service and repair
Q3) What is the difference between a product and trademark franchise and a business format franchise? Which type of franchise is most common for entrepreneurial firms?
Q4) How can a person tell if franchising is right for them?
Q5) List and explain three of the common misconceptions about franchising.
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