MHR 300 Final UW-Madison || Final Exam Edition:
Pass with A+ Accuracy!!
A business plan would best be described as the initial rough sketch of an idea for starting a
new venture
True
False correct answers False
The business plan describes all the elements involved in starting the new venture. The
business plan describes the venture and its market, strategies, and future directions. It often
has functional plans for marketing, finance, manufacturing, and human resources.
Most small business ventures are in the ________ category of the entrepreneurial strategy
matrix.
low innovation/high risk
high investment/low risk
low innovation/low risk
high innovation/high risk
high innovation/low risk correct answers Low innovation/high risk
Most small business ventures are in the lower-right quadrant, where innovation is low and
risk is high. They are fairly conventional entries in well-established fields. New restaurants,
retail shops, and commercial outfits involve a sizable investment for the small business
entrepreneur and face direct competition from similar businesses.
Social capital is a competitive advantage in the form of relationships with other people and
the image other people have of you.
True
False correct answers True
Social capital is a competitive advantage in the form of relationships with other people and
the image other people have of you. Social capital helps entrepreneurs gain access to useful
information, gain trust and cooperation from others, recruit employees, form successful
business alliances, receive funding from venture capitalists, and become more successful.
________ are best described as new venture creators working inside big companies.
Entrepreneurs
Sole proprietors
Knowledge workers
Intrapreneurs
Franchisees correct answers Intrapreneurs
Intrapreneurs are new venture creators working inside big companies; they are corporate
entrepreneurs, using their company's resources to build a profitable line of business based on
a fresh new idea.
,Protected environments for new, small businesses are known as business incubators.
True
False correct answers True
Business incubators are protected environments for new, small businesses. Incubators offer
benefits such as low rents and shared costs. Shared staff costs, such as for receptionists and
secretaries, avoid the expense of full-time employees but provide convenient access to
services.
Skunkworks are project teams designated to produce new, innovative products.
True
False correct answers True
Skunkworks are project teams designated to produce a new product. A team is formed with a
specific goal within a specified time frame. In this approach to corporate innovation, risk
takers are not punished for taking risks and failing; their former jobs are held for them.
Entrepreneurs, in part because they are very busy, often fail to use ________.
social capital
emotional intelligence
formal control systems
cost competencies
benchmarking correct answers Formal Control Systems
Entrepreneurs, in part because they are very busy, often fail to use formal control systems.
One common entrepreneurial malady is an aversion to record keeping. Pricing decisions are
based on intuition without adequate reference to costs.
Initial public stock offerings provide a way to raise capital through federally registered and
underwritten sales of shares in the company.
True
False correct answers True
Sometimes companies reach a point at which the owners want to "go public." Initial public
stock offerings (IPOs) offer a way to raise capital through federally registered and
underwritten sales of shares in the company.
Bringing buyers and sellers together and charging a commission for each sale is known as the
________ model.
advertising support
transaction fee
intermediary
affiliate
subscription correct answers Intermediary
, The intermediary model has eBay as the premier example, bringing buyers and sellers
together and charging a commission for each sale.
The primary objective of an entrepreneurial venture is to:
reduce the amount of dividends paid.
create a long term relationship with an investment banking firm.
provide non-profit services.
acquire growth and high profitability.
increase the social capital correct answers Acquire growth and high profitability
An entrepreneurial venture has growth and high profitability as primary objectives.
Entrepreneurs manage aggressively and develop innovative strategies, practices, and
products.
Organizations that encourage intrapreneurship face the obvious risk that the effort can fail.
True
False correct answers True
Organizations that encourage intrapreneurship face an obvious risk: the effort can fail. One
author noted, "There is considerable history of internal venture development by large firms,
and it does not encourage optimism."
When spotting an opportunity, which of the following possibilities involves capitalizing on
new clothing and music trends, the desire for fast food, and growing interest in sports?
Technological discoveries
Government initiatives
Lifestyle and taste changes
Demographic changes
Economic dislocations correct answers Lifestyle and taste changes
Start-ups have capitalized on clothing and music trends, desire for fast food, and growing
interest in sports, which would be considered lifestyle and taste changes. In recent years,
more consumers want to help take care of the environment, and more businesses are
concerned about showing consumers that they care, too.
In order for family-managed businesses to survive and prosper, management guru Peter
Drucker advises them to:
discontinue hiring family members.
hire family members alone.
fill at least one key position with a nonfamily member.
exclude outsiders while planning succession.
allow for minimal performance by family members. correct answers fill at least one key
position with a nonfamily member
Pass with A+ Accuracy!!
A business plan would best be described as the initial rough sketch of an idea for starting a
new venture
True
False correct answers False
The business plan describes all the elements involved in starting the new venture. The
business plan describes the venture and its market, strategies, and future directions. It often
has functional plans for marketing, finance, manufacturing, and human resources.
Most small business ventures are in the ________ category of the entrepreneurial strategy
matrix.
low innovation/high risk
high investment/low risk
low innovation/low risk
high innovation/high risk
high innovation/low risk correct answers Low innovation/high risk
Most small business ventures are in the lower-right quadrant, where innovation is low and
risk is high. They are fairly conventional entries in well-established fields. New restaurants,
retail shops, and commercial outfits involve a sizable investment for the small business
entrepreneur and face direct competition from similar businesses.
Social capital is a competitive advantage in the form of relationships with other people and
the image other people have of you.
True
False correct answers True
Social capital is a competitive advantage in the form of relationships with other people and
the image other people have of you. Social capital helps entrepreneurs gain access to useful
information, gain trust and cooperation from others, recruit employees, form successful
business alliances, receive funding from venture capitalists, and become more successful.
________ are best described as new venture creators working inside big companies.
Entrepreneurs
Sole proprietors
Knowledge workers
Intrapreneurs
Franchisees correct answers Intrapreneurs
Intrapreneurs are new venture creators working inside big companies; they are corporate
entrepreneurs, using their company's resources to build a profitable line of business based on
a fresh new idea.
,Protected environments for new, small businesses are known as business incubators.
True
False correct answers True
Business incubators are protected environments for new, small businesses. Incubators offer
benefits such as low rents and shared costs. Shared staff costs, such as for receptionists and
secretaries, avoid the expense of full-time employees but provide convenient access to
services.
Skunkworks are project teams designated to produce new, innovative products.
True
False correct answers True
Skunkworks are project teams designated to produce a new product. A team is formed with a
specific goal within a specified time frame. In this approach to corporate innovation, risk
takers are not punished for taking risks and failing; their former jobs are held for them.
Entrepreneurs, in part because they are very busy, often fail to use ________.
social capital
emotional intelligence
formal control systems
cost competencies
benchmarking correct answers Formal Control Systems
Entrepreneurs, in part because they are very busy, often fail to use formal control systems.
One common entrepreneurial malady is an aversion to record keeping. Pricing decisions are
based on intuition without adequate reference to costs.
Initial public stock offerings provide a way to raise capital through federally registered and
underwritten sales of shares in the company.
True
False correct answers True
Sometimes companies reach a point at which the owners want to "go public." Initial public
stock offerings (IPOs) offer a way to raise capital through federally registered and
underwritten sales of shares in the company.
Bringing buyers and sellers together and charging a commission for each sale is known as the
________ model.
advertising support
transaction fee
intermediary
affiliate
subscription correct answers Intermediary
, The intermediary model has eBay as the premier example, bringing buyers and sellers
together and charging a commission for each sale.
The primary objective of an entrepreneurial venture is to:
reduce the amount of dividends paid.
create a long term relationship with an investment banking firm.
provide non-profit services.
acquire growth and high profitability.
increase the social capital correct answers Acquire growth and high profitability
An entrepreneurial venture has growth and high profitability as primary objectives.
Entrepreneurs manage aggressively and develop innovative strategies, practices, and
products.
Organizations that encourage intrapreneurship face the obvious risk that the effort can fail.
True
False correct answers True
Organizations that encourage intrapreneurship face an obvious risk: the effort can fail. One
author noted, "There is considerable history of internal venture development by large firms,
and it does not encourage optimism."
When spotting an opportunity, which of the following possibilities involves capitalizing on
new clothing and music trends, the desire for fast food, and growing interest in sports?
Technological discoveries
Government initiatives
Lifestyle and taste changes
Demographic changes
Economic dislocations correct answers Lifestyle and taste changes
Start-ups have capitalized on clothing and music trends, desire for fast food, and growing
interest in sports, which would be considered lifestyle and taste changes. In recent years,
more consumers want to help take care of the environment, and more businesses are
concerned about showing consumers that they care, too.
In order for family-managed businesses to survive and prosper, management guru Peter
Drucker advises them to:
discontinue hiring family members.
hire family members alone.
fill at least one key position with a nonfamily member.
exclude outsiders while planning succession.
allow for minimal performance by family members. correct answers fill at least one key
position with a nonfamily member
