Innovation and Entrepreneurship Test
Questions
Course Introduction
Innovation and Entrepreneurship explores the principles and practices involved in transforming ideas into valuable products, services, and businesses. This course examines the innovation process, from opportunity recognition and idea generation to market research, business model development, and resource acquisition. Students will gain insights into entrepreneurial thinking, risk assessment, and strategies for launching and managing startups or driving innovation within existing organizations. Through case studies, group projects, and real-world examples, learners will develop practical skills in creativity, problem-solving, and strategic planning to navigate challenges and capitalize on opportunities in dynamic business environments.
Recommended Textbook
Entrepreneurship Theory Process and Practice 9th Edition by Donald F. Kuratko
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15 Chapters
1181 Verified Questions
1181 Flashcards
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Chapter 1: Entrepreneurship: Evolutionary
Development-Revolutionary Impact
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95 Verified Questions
95 Flashcards
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Sample Questions
Q1) Entrepreneurs themselves perceive the concept of risk in which of the following ways:
A) calculated risk taking
B) gambling risk
C) distorted risk taking
D) social risk
Answer: A
Q2) Prepared entrepreneurs who seize opportunities when they arise often appear to be lucky.
A)True
B)False
Answer: True
Q3) The displacement school of thought focuses on the negative side of group phenomena.
A)True
B)False
Answer: True
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Page 3
Chapter 2: The Entrepreneurial Mind-Set in Individuals: Cognition
and Ethics
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97 Verified Questions
97 Flashcards
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Sample Questions
Q1) An entrepreneur can never be certain what actual ethical consequences a decision will have.
A)True
B)False
Answer: True
Q2) Which of the following is not characteristic of the "dark side" of entrepreneurship?
A) an external optimism
B) a desire for success
C) knowing when to take a vacation
D) a sense of distrust
Answer: C
Q3) Firms need to be public about their ethical values and expectations.
A)True
B)False
Answer: True
Q4) The need to achieve can be a source of stress for entrepreneurs.
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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85 Verified Questions
85 Flashcards
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Sample Questions
Q1) Authoritarian management is being replaced by A) networking.
B) independent contractors.
C) Japanese managers.
D) benevolent managers.
Answer: A
Q2) Corporate entrepreneurs generally are power oriented or power hungry.
A)True
B)False
Answer: False
Q3) One reason why corporate entrepreneurship has done so well is that it allows organizations to A) increase salaries.
B) fire the dead wood.
C) encourage high risk taking.
D) tap the innovative talents of their people.
Answer: D
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Page 5
Chapter 4: Social Entrepreneurship and the Global
Environment for Entrepreneurship
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50 Verified Questions
50 Flashcards
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Sample Questions
Q1) For-profit enterprises have yet to make significant contributions to the world of social entrepreneurship.
A)True
B)False
Q2) The Brundtland definition of sustainable development is "meeting the needs of the present without compromising the ability of future generations to meet their needs."
A)True
B)False
Q3) Explain the concept of informal international alliances. What path do entrepreneurs usually follow with respect to informal international alliances?
Q4) List some activities that have come to be associated with social entrepreneurship.
Q5) Social entrepreneurship is rarely a vehicle for sustainable development.
A)True
B)False
Q6) In the context of benefit corporations, what does transparency refer to?
Q7) Why has sustainable development, perhaps, become the most prominent topic of our time?
Page 6
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Chapter 5: Innovation: The Creative Pursuit of Ideas
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95 Verified Questions
95 Flashcards
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Sample Questions
Q1) Which of the following is not a type of innovation?
A) invention
B) duplication
C) adaptation
D) synthesis
Q2) Which of the following statements is True?
A) A good innovator should be a genius.
B) Innovators rarely work in more than one field.
C) Innovators are poor workers.
D) A good innovator uses only the left side of the brain.
Q3) The four phases of the creative process are knowledge accumulation, incubation, idea experience, and evaluation.
A)True
B)False
Q4) Creativity is most likely to occur when the "climate" is right. What is a characteristic of that climate in the workplace?
A) willingness to avoid change
B) employees with similar work habits
C) trustful management that does not exert strict control over employees
D) strict management rules
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Chapter 6: Assessment of Entrepreneurial Opportunities
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82 Verified Questions
82 Flashcards
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Sample Questions
Q1) Which of the following as a factor contributing to new-venture failure?
A) product/market problems.
B) family issues.
C) personality clashes.
D) good management/poor product.
Q2) Feasibility analyses include technical, market, financial, organizational, and competitive analyses.
A)True
B)False
Q3) Which of the following are key questions to ask when screening an idea?
A) Is it proprietary?
B) Can it easily make money?
C) What are its points of discussion?
D) All of the above are correct.
Q4) List and describe three pitfalls in selecting a new venture.
Q5) Proper understanding of the market will help an entrepreneur avoid failure with a new venture.
A)True
B)False
Q6) Explain three major reasons why new ventures fail.
Page 8
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Chapter 7: Pathways to Entrepreneurial Ventures
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75 Verified Questions
75 Flashcards
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Sample Questions
Q1) Uniqueness in a product or service can be demonstrated through a new-new approach or a new-old approach.
A)True
B)False
Q2) 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.
Q3) "Piggybacking" one's way into a new business involves using a ____approach.
A) new-new
B) old-new
C) new-old
D) old-old
Q4) Which of the following costs do not add to the cost of franchising?
A) insurance
B) prepaid utility bills
C) legal and professional fees
D) opening product inventory
Q5) Briefly explain the new-old approach to creating new ventures.
Page 9
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Chapter 8: Sources of Capital for Entrepreneurs
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86 Flashcards
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Sample Questions
Q1) Frugality is deemed a bootstrapping technique.
A)True
B)False
Q2) Many new ventures find that debt financing is
A) necessary.
B) a waste of time.
C) not an important consideration.
D) their major source of funds.
Q3) Equity capital is often raised through:
A) public stock offerings.
B) option sales.
C) donations.
D) preferred issues.
Q4) Venture capitalists are quick to invest.
A)True
B)False
Q5) Venture capitalists, surprisingly, require little information before they make an investment.
A)True
B)False
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Chapter 9: Legal Challenges of Entrepreneurial Ventures
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Sample Questions
Q1) Which is not one of the major sections of the bankruptcy act?
A) straight bankruptcy
B) reorganization
C) adjustments of debts
D) liquidation
Q2) A patent is an intellectual property right.
A)True
B)False
Q3) An example of a trademark is a logo.
A)True
B)False
Q4) What percentage of issued patents is considered commercially valuable?
A) a very small percentage
B) a very large percentage
C) about a third
D) about half
Q5) Because of the fair use doctrine, it is sometimes difficult to establish infringement.
A)True
B)False
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Chapter 10: Marketing Challenges for Entrepreneurial Ventures
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77 Verified Questions
77 Flashcards
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Sample Questions
Q1) In defining research objectives, the entrepreneur should include
A) local weather
B) consumer tastes
C) competitors research objectives
D) market experts
Q2) What is guerrilla marketing?
Q3) 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
Q4) Several aspects distinguish social media marketing from the traditional marketing. The textbook discusses all of the following except:
A) relevancy
B) control versus contributions
C) trust building
D) two-way communication
Q5) Identify and describe one shortcoming of a sales-driven marketing philosophy?
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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Sample Questions
Q1) In the simple linear regression analysis equation, Y = a + bx, b represents A) the slope of the line.
B) expected sales.
C) the constant.
D) the factor on which sales are dependent.
Q2) Explain what a cash flow budget tells a manager/owner.
Q3) The rate used to adjust future cash flows to determine their value in present-period terms is the
A) current interest rate.
B) cost of capital.
C) rate determined by the ratio of assets to liabilities.
D) present value.
Q4) More established ventures will use a sales forecast model where the estimation of current sales will increase a certain percentage over the prior period's sales. This percentage is based upon
A) newly established sales only.
B) an inventory analysis.
C) a trend line analysis.
D) past experience.
Page 14
Q5) What is included in an operating budget and how is this helpful?
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Chapter 12: Developing an Effective Business Plan
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81 Verified Questions
81 Flashcards
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Sample Questions
Q1) The completed business plan provides the entrepreneur with A) a tool for communicating with financial sources.
B) a sense of well-being.
C) a product-launch timetable.
D) a nicely designed booklet.
Q2) Which of the following statements about a business plan is True?
A) It is the entrepreneur's road map for profits.
B) It is the minimum document required by financial sources.
C) It allows the entrepreneur to avoid pitfalls in starting a new venture.
D) It describes the entrepreneur's ideas and thoughts.
Q3) Planning is not essential to the success of an undertaking.
A)True
B)False
Q4) To avoid the pitfall of "no market niche" (segment), do what?
A) conduct a market analysis
B) imitate the competition
C) clearly target a niche
D) create a market niche
Q5) What is the basic structure of a business plan?
Q6) How does a business plan benefit the entrepreneur?
Page 15
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Chapter 13: Strategic Entrepreneurial Growth
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52 Flashcards
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Sample Questions
Q1) The textbook describes three types of leadership of consequence to new ventures. What are they?
A) competitive, innovative, and strategic
B) competitive, innovative, and visionary
C) visionary, strategic, and managerial
D) visionary, managerial, and competitive
Q2) In the entrepreneurial strategy matrix, the creation of something new and different is categorized as
A) an innovation.
B) a risk.
C) a time lag.
D) a psychological commitment.
Q3) Improved performance is often the result of better planning.
A)True
B)False
Q4) Most entrepreneurs are unfamiliar with planning information sources.
A)True
B)False
Q5) Describe what typically takes place during the new-venture development life-cycle stage.
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Chapter 14: Valuation of Entrepreneurial Ventures
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) Book value of a firm is also known as
A) balance sheet method.
B) income statement method.
C) capitalized earnings approach.
D) fixed price method.
Q2) Which of the following are considered methods for valuation of a venture?
A) return on investment
B) stock market method
C) multiple of earnings
D) a and c are correct
Q3) The timing of projected income or cash flows is not a critical factor in establishing the value of a firm.
A)True
B)False
Q4) In the context of buying a business, a known commodity may command a higher price for what reason?
A) historical projections have intrinsic value
B) avoiding start-up costs has value
C) property values are variable
D) the value of a founder's stock decreases over time
Page 17
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Chapter 15: Harvesting the Entrepreneurial Venture
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Sample Questions
Q1) Once the decision is made to harvest the business, the way forward is easy.
A)True
B)False
Q2) The first source of succession often is
A) nonfamily outsiders.
B) professional managers.
C) family and in-house personnel.
D) friends of the family.
Q3) Nepotism policies are lawful unless they have an "adverse impact" on women or minority groups (as in the Oakland Scavenger Company case).
A)True
B)False
Q4) If the successor and the business environment have a "right fit," the successor will be minimally effective.
A)True
B)False
Q5) Some entrepreneurs are easy to replace, and some cannot be replaced.
A)True
B)False
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