MAN 4701 EXAM 1 FSU QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+
Entrepreneurial Opportunity Ans✓✓✓An occasion to create new
products or services that can be sold at a price greater than their cost of
creation
Five Types of Opportunities Ans✓✓✓- Creation of new products and
services
- Discovery of new geographical markets where new customers will
appreciate new products or services
- Creation or discovery of new raw materials or discovering alternative
uses for existing raw materials
- Discovery of new methods of production
- New methods of organizing
Five factors determine whether individuals identify opportunities
Ans✓✓✓- Entrepreneurial alertness
- Information asymmetry
- Social networks
- Cross-cultural experience
- Identification of means-ends relationships
Feasibility Analysis Ans✓✓✓A study of the practicality of an idea to
support a business
, Two factors that influence the accuracy of an Entrepreneur's Risk
Percepetions Ans✓✓✓- Law of Small Numbers
- Illusion of Control
Law of Small Numbers Ans✓✓✓Relying on small samples of
information to make decisions
Illusion of Control Ans✓✓✓Overestimating the extent to which an
individual can control the outcome of an opportunity
Opportunity Exploitation Ans✓✓✓Activities and investments
committed to gain returns from new products or services
An opportunity should be exploited when Ans✓✓✓- Customers will
value new products or services AND they provide market demand
- Perceive have support of important stakeholders
- Perceive management team is capable
Internal Financing Ans✓✓✓Entrepreneur's own funds or credit cards
Three Forms of External Financing Ans✓✓✓- Angel Investors
- Venture Capitalists
- Bank Financing
DETAILED ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+
Entrepreneurial Opportunity Ans✓✓✓An occasion to create new
products or services that can be sold at a price greater than their cost of
creation
Five Types of Opportunities Ans✓✓✓- Creation of new products and
services
- Discovery of new geographical markets where new customers will
appreciate new products or services
- Creation or discovery of new raw materials or discovering alternative
uses for existing raw materials
- Discovery of new methods of production
- New methods of organizing
Five factors determine whether individuals identify opportunities
Ans✓✓✓- Entrepreneurial alertness
- Information asymmetry
- Social networks
- Cross-cultural experience
- Identification of means-ends relationships
Feasibility Analysis Ans✓✓✓A study of the practicality of an idea to
support a business
, Two factors that influence the accuracy of an Entrepreneur's Risk
Percepetions Ans✓✓✓- Law of Small Numbers
- Illusion of Control
Law of Small Numbers Ans✓✓✓Relying on small samples of
information to make decisions
Illusion of Control Ans✓✓✓Overestimating the extent to which an
individual can control the outcome of an opportunity
Opportunity Exploitation Ans✓✓✓Activities and investments
committed to gain returns from new products or services
An opportunity should be exploited when Ans✓✓✓- Customers will
value new products or services AND they provide market demand
- Perceive have support of important stakeholders
- Perceive management team is capable
Internal Financing Ans✓✓✓Entrepreneur's own funds or credit cards
Three Forms of External Financing Ans✓✓✓- Angel Investors
- Venture Capitalists
- Bank Financing
