MBA 622 Midterm Exam Questions And
Answers 100% Verified
Entrepreneurship - ANSWER the process by which individuals, either on their own or in
organizations, pursue opportunities without regard to the resources they currently
control (Stevenson)
Entrepreneurship mindset - ANSWER -opportunity focused
-risk taking
-innovative
-growth oriented
External Economic variables - ANSWER economic environment, competition, new
laws/regulations, labor supply, sources of capital, and more
Economic growth - ANSWER technological innovation is critical
-tech lowers the cost of information and producing
Globalization - ANSWER means goods and services can be traded anywhere in the
world
New Industry formation - ANSWER are born when tech change produces a novel
opportunity that an enterprising entrepreneur seizes
SBA - ANSWER U.S Small Business Administration
SBA definition of small business - ANSWER a firm with fewer than 500 employees
,Small businesses - ANSWER -represent 99.7% of all employers and pay more than 45%
of total US private payroll
-have generated 65% of net new jobs over the past 15 years
Economic development in 3 Categories of countries - ANSWER -Factor driven
-Efficiency driven
-Innovation driven
Factor-driven economies - ANSWER Created out of necessity and rely on unskilled labor
and extraction of natural resources
Efficiency-driven economies - ANSWER growing and in need of improving their
production processes and quality of goods produced
Innovation-driven economies - ANSWER the most advanced and where business
compete based on innovation and entrepreneurship
3 Primary Characteristics of Startups - ANSWER -Innovative
-value creating
-growth oriented
Risk in entrepreneurial process - ANSWER inherent part but, with more info over time
and validation from the market is the impact of that risk
Fuzzy front end - ANSWER occurs prior to launch
-the entrepreneur must gather info about the industry and market, test the business
model, and determine the conditions under which she will move forward
Push entrepreneur - ANSWER the mechanism that drives someone to become a nascent
entrepreneur because all other opportunities for income appear to be absent or
,unsatisfactory
Pull entrepreneur - ANSWER the mechanism that attracts an individual to an opportunity
and creates a "burning desire" to launch a business and capture a market
SBA start up stats - ANSWER -half will survive 5 years or more
-1/3 will survive 10 years or more
Common reasons for start-up failure - ANSWER -entrepreneurs come up with a solution
looking for a problem; they have not identified a real need in the market
-the solution does not differ from what is already in the market
-the business model is not tested
Start-ups that survive - ANSWER display superior levels of reliability and accountability
in performance, processes, and structure
The vital issue for an entrepreneur - ANSWER is to minimize the cost of possible failure
to recover quickly
Current Entrepreneurial Trends - ANSWER -digital anonymity
-return to Domestic Manufacturing & Craft
-Big data
-The lean startup movement
6 Myths of Entrepreneurship - ANSWER -it takes a lot of money to start a business
-it takes a great idea
-the bigger the risk, the bigger the reward
-a business plan is required for success
-entrepreneurship is for the young and reckless
, -entrepreneurship cannot be taught
Paths to entrepreneurship - ANSWER • The home-based entrepreneur
• The serial or portfolio entrepreneur
• The nonprofit entrepreneur
• The corporate entrepreneur
Home-based Entrepreneur - ANSWER -some of these are hobbies, consulting, or free
lance businesses
-many others compete with large brand-name businesses
-Tech has made it possible to do business from anywhere
-SBA: 51% of small businesses are home-based
The Serial Entrepreneur (Portfolio) - ANSWER -interested with the thrill of starting a
business that they like, and once established, they move on to create another
Portfolio Entrepreneur - ANSWER owns a stake in several ventures
Nonprofit Entrepreneur - ANSWER -typically focus on educational, religious or
charitable goals
-they seek tax-exempt status so that they can attract donations
-NPOs can and should make a profit but, it must stay within the firm
Corporate Entrepreneur - ANSWER -encouraged in existing organizations
-4 models: Opportunistic, Enabler, Advocate, Producer
General Characteristics of Entrepreneurs - ANSWER more likely to come from poor or
middle-class families than from wealth
Answers 100% Verified
Entrepreneurship - ANSWER the process by which individuals, either on their own or in
organizations, pursue opportunities without regard to the resources they currently
control (Stevenson)
Entrepreneurship mindset - ANSWER -opportunity focused
-risk taking
-innovative
-growth oriented
External Economic variables - ANSWER economic environment, competition, new
laws/regulations, labor supply, sources of capital, and more
Economic growth - ANSWER technological innovation is critical
-tech lowers the cost of information and producing
Globalization - ANSWER means goods and services can be traded anywhere in the
world
New Industry formation - ANSWER are born when tech change produces a novel
opportunity that an enterprising entrepreneur seizes
SBA - ANSWER U.S Small Business Administration
SBA definition of small business - ANSWER a firm with fewer than 500 employees
,Small businesses - ANSWER -represent 99.7% of all employers and pay more than 45%
of total US private payroll
-have generated 65% of net new jobs over the past 15 years
Economic development in 3 Categories of countries - ANSWER -Factor driven
-Efficiency driven
-Innovation driven
Factor-driven economies - ANSWER Created out of necessity and rely on unskilled labor
and extraction of natural resources
Efficiency-driven economies - ANSWER growing and in need of improving their
production processes and quality of goods produced
Innovation-driven economies - ANSWER the most advanced and where business
compete based on innovation and entrepreneurship
3 Primary Characteristics of Startups - ANSWER -Innovative
-value creating
-growth oriented
Risk in entrepreneurial process - ANSWER inherent part but, with more info over time
and validation from the market is the impact of that risk
Fuzzy front end - ANSWER occurs prior to launch
-the entrepreneur must gather info about the industry and market, test the business
model, and determine the conditions under which she will move forward
Push entrepreneur - ANSWER the mechanism that drives someone to become a nascent
entrepreneur because all other opportunities for income appear to be absent or
,unsatisfactory
Pull entrepreneur - ANSWER the mechanism that attracts an individual to an opportunity
and creates a "burning desire" to launch a business and capture a market
SBA start up stats - ANSWER -half will survive 5 years or more
-1/3 will survive 10 years or more
Common reasons for start-up failure - ANSWER -entrepreneurs come up with a solution
looking for a problem; they have not identified a real need in the market
-the solution does not differ from what is already in the market
-the business model is not tested
Start-ups that survive - ANSWER display superior levels of reliability and accountability
in performance, processes, and structure
The vital issue for an entrepreneur - ANSWER is to minimize the cost of possible failure
to recover quickly
Current Entrepreneurial Trends - ANSWER -digital anonymity
-return to Domestic Manufacturing & Craft
-Big data
-The lean startup movement
6 Myths of Entrepreneurship - ANSWER -it takes a lot of money to start a business
-it takes a great idea
-the bigger the risk, the bigger the reward
-a business plan is required for success
-entrepreneurship is for the young and reckless
, -entrepreneurship cannot be taught
Paths to entrepreneurship - ANSWER • The home-based entrepreneur
• The serial or portfolio entrepreneur
• The nonprofit entrepreneur
• The corporate entrepreneur
Home-based Entrepreneur - ANSWER -some of these are hobbies, consulting, or free
lance businesses
-many others compete with large brand-name businesses
-Tech has made it possible to do business from anywhere
-SBA: 51% of small businesses are home-based
The Serial Entrepreneur (Portfolio) - ANSWER -interested with the thrill of starting a
business that they like, and once established, they move on to create another
Portfolio Entrepreneur - ANSWER owns a stake in several ventures
Nonprofit Entrepreneur - ANSWER -typically focus on educational, religious or
charitable goals
-they seek tax-exempt status so that they can attract donations
-NPOs can and should make a profit but, it must stay within the firm
Corporate Entrepreneur - ANSWER -encouraged in existing organizations
-4 models: Opportunistic, Enabler, Advocate, Producer
General Characteristics of Entrepreneurs - ANSWER more likely to come from poor or
middle-class families than from wealth
