ENM 5420 Midterm Exam | Updated, Complete Solutions

ENM 5420 Midterm Exam | Updated, Complete Solutions Work environments with a lack of technical-excellence incentives can positively influence the entrepreneurial intentions of some employees. (True of False) True If an entrepreneur evaluates her existing job to have an EA of 2 and the value of a new venture to be 6, she shouldn't take the new venture. (True of False) False Which of the following is the most critical component necessary to turn an idea into an enterprise? a. A Viable Opportunity b. Understanding of the Competitive Landscape c. Customer Need d. Market Potential In the first five years after Facebook's Initial Public Offering (IPO), by about what percentage did the value of the company increase? a. 80 Percent b. 1000 Percent c. 300 Percent d. 20 Percent The process by which new, creative firms disrupt existing markets could be called: a. Creative Destruction b. Dynamic Capitalism c. Dynamic Disequilibrium d. All of the Above What was the entrepreneurial activity rate (the number of U.S. adults engaged in setting up or managing a new enterprise) between 1999 and 2015? a. 12 Percent b. 10 Percent c. 7 Percent d. 2 Percent Which of the following is not one of the elements of Intellectual Capital? a. Organizational Capital b. Financial Capital c. Human Capital d. Social Capital Which of the following is not a component of the utility function U as defined by Douglas and Shepherd, 1999: a. Reward b. Independence c. Risk d. Income Is a good idea sufficient to ensure an entrepreneur's success? (True or False) False Which of the five largest (by market capitalization) U.S. public companies received most of their early external funding from venture capital funds? a. Google/Alphabet Inc. b. Apple c. Microsoft d. Berkshire Hathaway ________ is an arrangement in which users might pay for the service ________. a. ETC; incrementally b. Modular Innovation; at their leisure c. "Brave new world"; all at once d. SaaS; on a monthly basis An Open Source Innovation Community might take the form of: a. A series of disruptive innovations b. A visionary leader c. The reuse and recombination of knowledge d. A collection of collaboration firms. A "unicorn" is: a. A high-valued private company b. An innovation that is both disruptive and convergent c. An opportunity with very high cost d. An aggressive growth strategy To find an opportunity, entrepreneurs should focus on where a potential customer experiences significant a. Ambivalence b. Inspiration c. Satisfaction d. Pain Problems that are difficult to describe often yield entrepreneurial opportunities. (True or False) True Fewer than three very good opportunities are needed for most entrepreneurs to have an entrepreneurially activity life. (True or False) True What does the T in ETC stand for? a. Try b. Test c. Top d. To Which of the following would not necessarily describe a product that has undergone Incremental Innovation? a. Cheaper b. Better c. Faster d. Bigger Paul Graham's suggestion to travel to New York and take high-resolution pictures for Airbnb customers was a scalable method for increased profitability. (True or False) False Which of the following is a way to generate Primary Data in the context of the customer development process? a. Brainstorming with a team b. Engaging with customers c. Speaking with a renowned CEO who heads a venture similar to yours d. Using services unrelated to your proposed venture Who should create the mission statement? a. Employees at the lowest level of the company b. The head of the entrepreneurial team c. The entrepreneurial team and other employees Which of the following firms was listed as having Access as the primary value and Experience as the secondary value? a. Starbucks b. Nordstrom c. Mercedes d. AT&T Which of these was given as a possible element of a mission statement? a. Focus Groups b. Competitive Advantage c. Rate of Change d. Vision Coherence Value propositions and USP's are for stakeholders as well as customers. (True or False) True In Alex Osterwalder's business model canvas, which of the following is one of the first three building blocks? a. Customer Segments b. Key Activities c. Key Partners d. Customer Relationships Which of the following is not one of the five values offered to a customer? a. Quality b. Experience c. Access d. Service Which of the following is not one of the four elements of a vision? a. Clarity b. Uniqueness c. Purpose d. Creativity Which of the following would not be part of eBay's mission statement? a. Provide a global online marketplace b. Enable worldwide economic opportunity c. Enlist a world-class marketing team d. Allow users to trade anything The value proposition does not accomplish which of the following? a. Outlines the importance of the product. b. Equates the value to monetary worth. c. Describes what is offered to the customer. d. States what he customer is Smaller mission statements may branch off the main one. (True or False) True Which of the following is not one of the four stages of an industry life cycle? a. Decline b. Maturation c. Stability d. Emergence Which of the following is not one of the six questions for creating a sound, dynamic strategy? a. Where will we be active? b. With whom will we compete and cooperate? c. Why are we pursuing this objective? d. How will we reach profitability? A strategy can state both "what to do" and "what not to do." (True or False) True A dominant design ________. a. Tells customers how to correctly utilize the service. b. Produces a series of products serving the same strategy. c. Provides a reference point for a number of product offerings. d. Allows certain competitors a clear advantage. Strategies are always static, never dynamic. (True or False) False It is stated that, to be competitive, a firm must have all of the following except: a. A unique ability to manage common resources. b. Unique and valuable resources. c. A willingness to accept other types of resources. d. The ability to exploit a firm's resources. The core competencies of a firm should match the requirements of its business. (True or False) True Core competencies, like assets, deteriorate as they are applied and shared. (True or False) False To be useful, a plan must do all of the following except: a. Be aware of the Firm's strengths b. Divide equity equally c. Be action-oriented d. Utilize opportunities An industry necessarily consists of all of the following except: a. Businesses attentive to a single customer base b. A group of firms c. Manufacturers of similar goods and services d. A number of enterprises that serve one another. Emergent Markets have: a. Usually slow revenue growth b. No established industry rules c. Moderate uncertainty d. High competitiveness Characteristics of an invention do not include: a. Breadth b. Importance c. Opportunity d. Radicalness Alphabet can fund ________ thanks to ________.