Entrepreneurship Final Exam Study Guide Question and Answers

Entrepreneurship Final Exam Study Guide Question and Answers Entrepreneurial Intensity Answer: Google is a firm that is proactive, innovative, and risk taking. From the description, we can most accurately conclude that Google has a high level of this: Passion For Business Answer: #1 characteristic of a successful entrepreneurs Fails to live up to it's hype Answer: When an individual starts a fi rm primarily to pursue financial rewards, starting a business solely to make money results 12.7% of Adults Answer: According to Global Entrepreneurship monitor, this percentage of adults in the US are either starting a business or are running a business t hat has been in existence for less than 3.5 years Proactive, Innovative, Risk -Taking Answer: Cody Rodgers is the founder of a company named Extreme Sports Apparel. The company makes apparel products for extreme sports enthusiast s such as rock climbers, t riathlete, and skateboards. Cody wants his company to pursue a high level of corporate entrepreneurship, To achieve this goal, Cody's firm should be: Entrepreneurship is NOT this Answer: the process by which individuals pursue opportunities within the con straints they control Why people become entrepreneurs Answer: 1) Be their own boss 2) Pursue own ideas 3) Realize financial rewards Moderate Risk Taker Answer: This is not a characteristic of an entrepreneur Salary Substitute Firm Answer: Individual earns level of income that is similar to what they would earn in a conventional job Lifestyle Firm Answer: Better accommodates an individual's lifestyle Opportunity Answer: a favorable set of circumstances that create a need for a prod uct or service business Window of Opportunity Answer: wants to open a business when it is realistic to enter a new market, metaphor Idea Answer: Is a thought/impression/notion Observing trends, solving problems, finding gaps in market place Answer: thre e ways to identify an opportunity Economic Forces Answer: GasBuddy and GasPriceWatch.com are companies started to help consumers save money on gas. Which environmental tread is most likely to impute for creation of these companies Social Force Answer: Is an increased focus on health and wellness, is a __________ that is creating opportunities in many areas for entrepreneurial firms Threshold of being a good idea Answer: Is not a good criterion for testing an idea against? Feasibility analysis Answer: is the process of determining whether a business idea is viable Primary Research Answer: Research that is collected by person/persons completing an analysis Secondary Research Answer: Probes data that has already been collected Example of primar y research Answer: Talking to industry experts, feedback from prospective customers, administering surveys Example of secondary research Answer: trade journals, government officials Societal Feasibility Answer: Not 1 of the 4 areas of a feasibility analy sis Concept test Answer: Involves showing a preliminary description of a product or service idea to prospective customers to gauge customer interest, desirability and purchase intent Non -Financial Resources Answer: This is the focus in organizational fea sibility Two important factors in management prowess Answer: 1) the passion the sole entrepreneur or the management team has for the business and 2) the extent to which the management team or sole entrepreneur understands the market in which the firm will participate