MGMT 335 Midterm Exam UPDATED
ACTUAL QUESTIONS AND CORRECT
ANSWERS
What are the three primary reasons people become entrepreneurs and start their own firms? -
CORRECT ANSWER 1.) Desire to be their own boss
2.) Desire to pursue their own ideas
3.) Financial rewards
What are some skills of successful entrepreneurs? - CORRECT ANSWER 1.) Passion for the
business
2.) Product/customer focus
3.) Tenacity despite failure
4.) Execution intelligence
What are some myths about entrepreneurs? - CORRECT ANSWER 1.) Entrepreneurs are born,
not made
2.) Entrepreneurs are gamblers
3.) Entrepreneurs are primarily motivated by money
4.) Entrepreneurs have to be young
What are the different types of start-up firms? - CORRECT ANSWER SALARY
SUBSTITUTE FIRMS
Firms that provide owners with a level of income similar to what they could earn in a conventional
job.
LIFESTYLE FIRMS
Firms that provide owners with the opportunity to pursue a particular lifestyle and make a living at it.
ENTREPRENURIAL VENTURES
Firms that bring new products and services to the market by seizing opportunities regardless of the
resources they currently control.
,What is the impact of entrepreneurial firms? - CORRECT ANSWER - Innovation
- Job creation
- Larger firms
- Society
Which of the following is not one of the five common myths about entrepreneurs?
A.) Entrepreneurs are motivated primarily by money
B.) Entrepreneurs are moderate risk takers
C.) Entrepreneurs should be young and energetic
D.) Entrepreneurs love the spotlight
E.) Entrepreneurs are born not made - CORRECT ANSWER B.) Entrepreneurs are moderate
risk takers
The three primary reasons that people become entrepreneurs and start their own firms are to:
A.) pursue their own ideas, realize financial rewards, and eliminate risk in their lives
B.) do what they were "born" to do, be their own boss, and capture more of the spotlight
C.) take big risks, be their own boss, and do what they were "born" to do
D.) be their own boss, pursue their own ideas, and realize financial rewards
E.) capture more of the spotlight, pursue their own ideas, and take big risks - CORRECT ANSWER
D.) be their own boss, pursue their own ideas, and realize financial rewards
Missouri Steak and Seafood is a restaurant that has been owned by Cameron Peterson for the past nine
years. The restaurant offers a menu that is typical for steak and seafood restaurants, and affords
Cameron a level of income that is similar that what he would earn in a conventional job. Missouri
Steak and Seafood is an example of a:
A.) salary-substitute firm
B.) entrepreneurial firm
C.) standard-of-living firm
, D.) lifestyle firm
E.) everyday-life firm - CORRECT ANSWER A.) salary-substitute firm
What is an opportunity? - CORRECT ANSWER A favorable set of circumstances that creates a
need for a new product, service, or business
- Attractive (high-growth potential)
- Durable
- Timely
- Product, service, or business that adds value for its buyer or end user
What is the window of opportunity? - CORRECT ANSWER Time period for which a firm can
realistically enter a new market
What is involved in finding opportunities? - CORRECT ANSWER - Observing trends
(Political, Economic, Social, Technological, Legal)
- Solving a problem
- Finding gaps in the market place
What personal characteristics affect the type and quality of opportunities recognized as an
entrepreneur? - CORRECT ANSWER - Prior experience
- Social network
- Cognitive factors
- Creativity
What are the three techniques for idea generation? - CORRECT ANSWER 1.) Brainstorming
2.) Focus groups
3.) Library/internet research
ACTUAL QUESTIONS AND CORRECT
ANSWERS
What are the three primary reasons people become entrepreneurs and start their own firms? -
CORRECT ANSWER 1.) Desire to be their own boss
2.) Desire to pursue their own ideas
3.) Financial rewards
What are some skills of successful entrepreneurs? - CORRECT ANSWER 1.) Passion for the
business
2.) Product/customer focus
3.) Tenacity despite failure
4.) Execution intelligence
What are some myths about entrepreneurs? - CORRECT ANSWER 1.) Entrepreneurs are born,
not made
2.) Entrepreneurs are gamblers
3.) Entrepreneurs are primarily motivated by money
4.) Entrepreneurs have to be young
What are the different types of start-up firms? - CORRECT ANSWER SALARY
SUBSTITUTE FIRMS
Firms that provide owners with a level of income similar to what they could earn in a conventional
job.
LIFESTYLE FIRMS
Firms that provide owners with the opportunity to pursue a particular lifestyle and make a living at it.
ENTREPRENURIAL VENTURES
Firms that bring new products and services to the market by seizing opportunities regardless of the
resources they currently control.
,What is the impact of entrepreneurial firms? - CORRECT ANSWER - Innovation
- Job creation
- Larger firms
- Society
Which of the following is not one of the five common myths about entrepreneurs?
A.) Entrepreneurs are motivated primarily by money
B.) Entrepreneurs are moderate risk takers
C.) Entrepreneurs should be young and energetic
D.) Entrepreneurs love the spotlight
E.) Entrepreneurs are born not made - CORRECT ANSWER B.) Entrepreneurs are moderate
risk takers
The three primary reasons that people become entrepreneurs and start their own firms are to:
A.) pursue their own ideas, realize financial rewards, and eliminate risk in their lives
B.) do what they were "born" to do, be their own boss, and capture more of the spotlight
C.) take big risks, be their own boss, and do what they were "born" to do
D.) be their own boss, pursue their own ideas, and realize financial rewards
E.) capture more of the spotlight, pursue their own ideas, and take big risks - CORRECT ANSWER
D.) be their own boss, pursue their own ideas, and realize financial rewards
Missouri Steak and Seafood is a restaurant that has been owned by Cameron Peterson for the past nine
years. The restaurant offers a menu that is typical for steak and seafood restaurants, and affords
Cameron a level of income that is similar that what he would earn in a conventional job. Missouri
Steak and Seafood is an example of a:
A.) salary-substitute firm
B.) entrepreneurial firm
C.) standard-of-living firm
, D.) lifestyle firm
E.) everyday-life firm - CORRECT ANSWER A.) salary-substitute firm
What is an opportunity? - CORRECT ANSWER A favorable set of circumstances that creates a
need for a new product, service, or business
- Attractive (high-growth potential)
- Durable
- Timely
- Product, service, or business that adds value for its buyer or end user
What is the window of opportunity? - CORRECT ANSWER Time period for which a firm can
realistically enter a new market
What is involved in finding opportunities? - CORRECT ANSWER - Observing trends
(Political, Economic, Social, Technological, Legal)
- Solving a problem
- Finding gaps in the market place
What personal characteristics affect the type and quality of opportunities recognized as an
entrepreneur? - CORRECT ANSWER - Prior experience
- Social network
- Cognitive factors
- Creativity
What are the three techniques for idea generation? - CORRECT ANSWER 1.) Brainstorming
2.) Focus groups
3.) Library/internet research
