Innovation and Entrepreneurship Actual Exam Questions And Answers

Innovation and Entrepreneurship Actual Exam Questions And Answers reader of business plan should be able to quickly understand the core idea of how the - ANSWER- product or service works and how it will be further developed in the future. taxation affected by two factors: - ANSWER- the national tax regime whether to form a corporate body; if so, a double taxation might be the result, i.e., taxation of the corporation and the entrepreneur Compared to partnerships, there are significant differences: - ANSWER- Liability and risks of the owners (shareholders) are limited to their initial share capital (i.e., their capital contribution). The obligations of a corporate enterprise are limited to its assets. corporate enterprise has its own asset sphere. Corporations have different corporate governance functions From the 1930s to the 1960s, entrepreneurship experienced a high growth rate. t/f - ANSWER- false From the 1970s on, entrepreneurship did not show much growth t/f - ANSWER- false Should aspiring entrepreneurs be overly secretive with their ideas? t/f - ANSWER- false The eight year survival rate for incorporated start-ups in the US is only around 50%. t/f - ANSWER- true Is innovation important for the strength and stability of an economy? t/f - ANSWER- true Innovation is the recognition or development of something new. t/f - ANSWER- false Invention is the process of creating something new. t/f - ANSWER- false As nations become more prosperous, entrepreneurial activity.... - ANSWER- declines Entrepreneurial activity opportunity is the percentage of the adult population that is trying to start or has started a small business to exploit a perceived opportunity. t/f - ANSWER- true Entrepreneural activity necessity is the percentage of adults who are trying to start or have started a small business because all other options for work are either absent or unsatisfactory. t/f - ANSWER- true called this development the 'Entrepreneurial Revolution' - ANSWER- Bygrave and Zacharakis underlying causes of Entrepreneurial Revolution - ANSWER- Cultural and social norms: Many individuals started their own businesses. Government: governments reduced capital gains tax, triggering investment activity. R&D transfer: In the US, publicly-sponsored research now patented by organizations. Physical infrastructure: Doing business online requires less physical infrastructure than in traditional 'brick and mortar' businesses. Human infrastructure: entrepreneurial experts help people who are starting or expanding companies. In some countries such as Germany, publicly sponsored programs like Existenzgründer-Program sponsored by the Federal Government exist in order to assist would-be entrepreneurs. Education, training, and professionalism: more colleges and universities integrate courses on innovation and entrepreneurship into their curriculum. Boone and Kurtz draw attention to the rapid globalization of business in the last decades also creating _________________________________ who can market their products abroad and hire _____________________ - ANSWER- opportunities for entrepreneurs talent internationally. Boone and Kurtz argue that entrepreneurs are actually different from - ANSWER- 'small business owners' How are entrepreneurs different from small business owners? - ANSWER- entrepreneurs seek expansion as a major goal. 'lifestyle' entrepreneurs— people who start a business to gain greater flexibility in their working hours and who want more control of their lives. What all these individuals have in common is that their business model is limited by the working hours they manage to invest small businesses are the most important entrepreneurial ventures'entrepreneurial revolution' has been driven mostly by small businesses. 'lifestyle' entrepreneurs— - ANSWER- people who start a business to gain greater flexibility in their working hours and who want more control of their lives Personal traits emphasized of an entrepreneur - ANSWER- uniqueness of personality, their innovative nature, ability to create something new Jean-Baptiste Say, an economist, says the economy was based on three factors: - ANSWER- human labor, capital, and real estate Coordination of production factors is a - ANSWER- core function in business administration. entrepreneur is the most important production factor, as it combines - ANSWER- knowledge with labor workforce. The major function of an entrepreneur is the - ANSWER- coordination of production factors . profit which the entrepreneur makes is - ANSWER- his reward for that coordination the 'interest' he earns from his employed capital premium earned for taking risks In order to be successful, the entrepreneur must possess several unique features: - ANSWER- good judgment, perseverance, knowledge of the world, and an understanding of commerce administrative/supervisory skills ability to overcome obstacles and misfortunes, and not to be dictated by anxiety or fear Frank Hyneman Knight, an economist, drew attention to the importance of - ANSWER- uncertainty important economists - ANSWER- Jean-Baptiste Say Frank Hyneman Knight Schumpeter entrepreneur specializes in __________________________ and copes skillfully with __________________. - ANSWER- decision-making uncertainty the quality of decision-making which leads to superior ____________ - ANSWER- profits in a free society it is not possible to separate the following three factors from one another: - ANSWER- uncertainty, freedom of decision-making, and responsibility/control go hand-in-hand Wages and payment are differential depending on - ANSWER- freedoms, responsibilities, and risk According to Schumpeter, an entrepreneur is a person who - ANSWER- destroys the existing economic order by introducing new products and services and new methods of production by creating new forms of organization by exploiting new raw materials. Pioneer-entreprenuers - ANSWER- Entrepreneurs offering innovation. Innovation - ANSWER- Realizing and successfully marketing inventions. so-called pioneer-entrepreneur is a destroyer of economic _________________. - ANSWER- equilibria The entrepreneur enforces - ANSWER- innovation , technical or organizational inventions, new combinations of resources, or new applications entrepreneur is not necessarily an inventor, but rather assumes the role of an - ANSWER- enabler who puts inventions into practice. entrepreneur role is characterized by - ANSWER- creating innovation rather than by making inventions Schumpeter's famous term is - ANSWER- creative destruction creative destruction means - ANSWER- challenging and then destroying the established product, brand, business model, etc., by developing, introducing, and offering a superior one, thereby replacing old with new. Creative destruction - ANSWER- Destroying an established business and replacing it with business innovation John Kao said Entrepreneurship is the attempt to create ______ through recognition of business _______________. It is the management of ___________________ appropriate to opportunity and, by utilizing communicative and ______________________ skills, to mobilize ___________________________________ resources necessary to bring a project to function. - ANSWER- value opportunity risk-taking management human, financial, and material 'Internal' entrepreneurs provide the - ANSWER- drive, energy, and vision to push forward risky new ideas Intrapreneurship is ihe process of - ANSWER- promoting innovation within the organizational structures of established companies with the aim of retaining the entrepreneurial spirit. The main objectives of intrapreneurship are: - ANSWER- making large companies more flexible and innovative, (SMEs) providing employees with more responsibility/decision-making freedom (decentralization) providing 'leaner' organizational structures creating entrepreneurial spirit even in large conglomerates decentralization - ANSWER- providing employees with more responsibility/decision-making freedom