Entrepreneurship Fundamentals Quiz
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Questions and Answers

What motivates empire builders in entrepreneurship?

  • Community service
  • Company growth (correct)
  • Achieving personal satisfaction
  • Creating a sustainable business model

Poor management is a major reason for the failure of small firms.

True (A)

What is considered the most common source of new venture ideas?

  • Magazines and other publications
  • Trade shows and conventions
  • Prior work experience (correct)
  • Social contacts

What is a key ingredient for a successful entrepreneur?

<p>Managerial skills</p> Signup and view all the answers

Statistics Canada assists entrepreneurs by providing business management seminars and advice.

<p>False (B)</p> Signup and view all the answers

The final step in preparing a personal balance sheet is to deduct total liabilities from total _______.

<p>assets</p> Signup and view all the answers

Which key factor is crucial for starting a high-growth venture?

<p>Choosing the right industry to enter</p> Signup and view all the answers

________ is a social venture developed by Shannon Tessier and Zack Patterson.

<p>CHANCE</p> Signup and view all the answers

Match the following steps to prepare a personal balance sheet with their correct order:

<p>Estimate the current market value of assets = Step 1 List all debts (liabilities) = Step 3 Deduct total liabilities from total assets = Step 5 Add up the total assets = Step 2 Add up the total liabilities = Step 4</p> Signup and view all the answers

What is the main reason according to the argument for companies giving back to communities?

<p>Utilizing society's resources (D)</p> Signup and view all the answers

Which of the following organizations does NOT assist entrepreneurs?

<p>Statistics Canada (C)</p> Signup and view all the answers

Lifestyle ventures include only large-scale businesses.

<p>False (B)</p> Signup and view all the answers

Empire builders aim to revolutionize markets and industries with an insatiable thirst for _______.

<p>growth</p> Signup and view all the answers

A major characteristic of empire builders is their focus on community involvement.

<p>False (B)</p> Signup and view all the answers

The rate of growth of the ________ influences the growth patterns of startups within it.

<p>industry</p> Signup and view all the answers

Match the following social trends to their descriptions:

<p>99 Lives = A concept related to balancing work and personal life Being Alive = Focus on health and well-being Anchoring = Establishing a stable base in life decisions CHANCE = Social venture for aiding needy children</p> Signup and view all the answers

What is one reason businesses should be concerned with social responsibility?

<p>Cost savings due to efficient operations (D)</p> Signup and view all the answers

Companies have no obligation to reimburse society for negative consequences of their activities.

<p>False (B)</p> Signup and view all the answers

What are the three key questions in Blanchard and Peale's Ethics Check?

<ol> <li>Is it legal? 2. Is it balanced? 3. How will it make you feel about yourself?</li> </ol> Signup and view all the answers

The creation of a clearly identifiable market niche is associated with consumers interested in __________.

<p>health and the environment</p> Signup and view all the answers

Match the following key concepts with their descriptions:

<p>Social Responsibility = Businesses should minimize negative impacts on society Ethics Check = A method to assess decisions in various ethical dimensions Market Niche = A specific segment of consumers focused on sustainability Innovation = Adaptation in response to social values and demands</p> Signup and view all the answers

What is the first thing you need to start a business?

<p>An idea (B)</p> Signup and view all the answers

Being socially responsible does not require companies to innovate.

<p>False (B)</p> Signup and view all the answers

List one benefit of a positive organizational image.

<p>Attracts customers or enhances brand loyalty.</p> Signup and view all the answers

Which of the following is NOT listed as a business opportunity for 2016?

<p>Home gardening services (A)</p> Signup and view all the answers

The 'ideal business' is one that requires hiring employees and managing them.

<p>False (B)</p> Signup and view all the answers

What is the first step in the opportunity selection process?

<p>Identify your business and personal objectives.</p> Signup and view all the answers

The opportunity selection process contains a total of __________ steps.

<p>six</p> Signup and view all the answers

Which of the following is a promising industry segment?

<p>Senior services (A)</p> Signup and view all the answers

Match the following opportunity selection steps with their descriptions:

<p>Identify your business and personal objectives = Determine what you want to achieve Learn more about your favourite industries = Research potential areas of interest Identify promising industry segments = Locate industries with market potential Brainstorm solutions = Develop ideas for identified problems Compare possible solutions with your objectives = Assess alignment between solutions and goals Focus on the most promising opportunities = Prioritize the best choices</p> Signup and view all the answers

Name one advantage of a business that requires no labor force.

<p>Less government paperwork and regulations.</p> Signup and view all the answers

Wakeboarding and rollerblading are examples of sporting trends that can create business ideas.

<p>True (A)</p> Signup and view all the answers

In the model for small business growth, the key issue in the inception chapter is:

<p>Finding growth opportunities (C)</p> Signup and view all the answers

In the model for small business growth, the key issue in the maturity chapter is:

<p>Increasing competition (D)</p> Signup and view all the answers

In the model for small business growth, the key issue in the survival chapter is:

<p>Obtaining customers (B)</p> Signup and view all the answers

What type of ideas typically provide customers with a product or service that does not exist in their market but already exists somewhere else?

<p>Type A ideas (D)</p> Signup and view all the answers

Product and market research in the inception chapter is described as:

<p>Little (B)</p> Signup and view all the answers

Fashion products usually have extremely long life cycles.

<p>False (B)</p> Signup and view all the answers

Product and market research in the survival chapter is characterized as:

<p>Moderate (B)</p> Signup and view all the answers

The first plan you will write for your new venture is the business plan.

<p>False (B)</p> Signup and view all the answers

Name one characteristic of Type B ideas.

<p>Technically new product or process.</p> Signup and view all the answers

The failure rate of franchised businesses is reported to be ______ than that for independently established firms.

<p>lower</p> Signup and view all the answers

What is the main purpose of conducting a feasibility study?

<p>To evaluate the potential of a business idea before proceeding with a business plan.</p> Signup and view all the answers

Which of the following is NOT a demographic factor?

<p>Hobbies (B)</p> Signup and view all the answers

In the model for small business growth, product and market research in the survival chapter is considered to be __________.

<p>moderate</p> Signup and view all the answers

Describe Type C ideas in entrepreneurship.

<p>Concepts for performing old functions in new and/or better ways.</p> Signup and view all the answers

The five basic elements in the opportunity recognition process developed by Lumpkin, Hills, and Shrader are irrelevant to entrepreneurial success.

<p>False (B)</p> Signup and view all the answers

Match each type of entrepreneurial idea with its description:

<p>Type A = New product in an existing market Type B = Technically innovative solutions Type C = Improvement on existing ideas</p> Signup and view all the answers

Flashcards

Empire Builders

Entrepreneurs who are driven primarily by achieving company growth and are often associated with a relentless pursuit of expansion and market domination.

Essential Business Skills

The skills needed to effectively lead a company in various functional areas, crucial for entrepreneurs due to limited resources.

Personal Balance Sheet

A financial statement that summarizes an individual's assets (what they own) and liabilities (what they owe), revealing their net worth.

Giving Back to the Community

An argument that companies have a responsibility to contribute positively to the communities they operate in because they benefit from society's resources, including infrastructure and workforce.

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Social Responsibility & Reimbursement

Companies should compensate society for negative externalities caused by their operations, like noise pollution, unpleasant smells, traffic congestion, and harmful emissions.

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Benefits of Social Responsibility

Businesses should be concerned with being socially responsible because it can lead to cost savings through efficiency, improve their image and reputation, create niche markets appealing to socially conscious consumers, and drive innovation to incorporate social values into their strategy.

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Blanchard and Peale's Ethics Check

A three-part ethical checklist developed by Kenneth Blanchard and Norman Vincent Peale to help individuals analyze dilemmas and make ethical decisions. It considers legality, fairness, and personal integrity.

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Crucial First Step for Business Start-up

The first crucial step in starting a business is identifying a viable idea or opportunity. It sets the foundation for everything else that follows.

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High-growth venture

A venture that aims to achieve significant growth and expansion, often driven by a strong vision and ambition for market dominance.

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Chosen Industry

The specific industry or market that a new venture chooses to enter. Its growth rate often plays a significant role in the success of the venture.

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Prior Work Experience

The most common source of new business ideas, often stemming from the founder's prior work experience.

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Entrepreneurial Help Centers

Governmental organizations that offer support, guidance, and resources to entrepreneurs, enabling them to establish and grow their businesses.

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Evolving Social Trends

The evolving trends and shifts in society that can influence business opportunities, including lifestyle, technology, and consumer behavior.

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Faith Popcorn's 'Clicking'

An influential book by Faith Popcorn that outlines various social and lifestyle trends and their potential impact on consumer behavior and businesses.

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Lifestyle Venture

A venture that is primarily focused on providing a lifestyle for the owner, often involving small businesses or solo entrepreneurship.

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Social Venture

A venture that is driven by a strong social mission or desire to make a positive impact on society, often addressing social or environmental issues.

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Type A Entrepreneurial Idea

A product or service that already exists but is new to a specific market, like introducing a popular bar concept from another city.

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Type B Entrepreneurial Idea

A brand new product or process often involving technical innovation, like developing software to solve a specific business problem.

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Type C Entrepreneurial Idea

Utilizing existing methods in a new or improved way, like a restaurant offering better customer service or faster delivery times.

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What is the crucial first step in business start-up?

The initial step in the entrepreneurial journey, where you discover an opportunity or a need for a product or service.

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Opportunity Recognition Process

The stage where an entrepreneur identifies a gap in the market or a problem to be solved, setting the foundation for their business.

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Franchised business failure rate

The rate at which businesses with a franchise model fail is lower compared to independently owned businesses.

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Fashion product life cycle

Fashion items tend to have a short lifespan because trends change quickly, creating a faster demand for new styles.

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What are psychographic factors?

Demographic factors, like age, income, and location, influence business choices, but psychographic factors, like values and lifestyle, also play a crucial role.

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Spotting Trends

Observing current trends in fashion, sports, and entertainment to identify potential business opportunities. For example, noticing the popularity of wakeboarding could lead to a new watersports equipment store.

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Opportunity Selection Process

A process of evaluating potential business ideas based on factors like market demand, feasibility, and alignment with your goals.

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Labour force considerations for startups

The challenge of managing employees, including payroll, benefits, regulations like safety and human rights, and effective leadership.

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Venture Opportunity Screening Model (VOSM)

A model used to assess the viability of business opportunities by examining five key factors: market size, market growth, competitive intensity, profitability, and risk.

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Step 1: Define your objectives

Identify your goals, both personal and business, to guide your decision-making.

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Step 2: Research your favorite industries

Focus on industries that excite you and align with your skills and passions.

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Step 3: Identify promising industry segments

Identify specific segments within the chosen industry with promising growth potential.

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Step 4: Identify problem areas and brainstorm solutions

Look for problems that need solutions and brainstorm innovative ideas to address them.

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Key Issue in Inception Stage

The primary focus in this initial stage of business growth is acquiring customers to establish a foundation for future expansion. Think of it as building the first bricks of your business.

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Key Issue in Maturity Stage

The key challenge during this period is staying ahead in an increasingly competitive market. You need to find strategies to maintain your position among established players.

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Key Issue in Survival Stage

The most crucial aspect in this early phase is securing customers to ensure business survival. It's like finding the first few passengers for your ship to stay afloat.

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Product & Market Research in Inception Stage

The level of product and market research is minimal in the initial stage of a business. It's like exploring a new territory with limited knowledge.

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Product & Market Research in Survival Stage

Product and market research plays a more significant role in the survival stage. It's like getting to know the terrain better after first entering the market.

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Feasibility Study Order

A feasibility study comes after writing a business plan, not before. It's like checking for any potential risks and limitations before starting a journey.

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Purpose of Feasibility Study

A feasibility study helps determine if a business idea is worth pursuing in the real world. It's a process similar to evaluating the viability of a project before investing.

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What is a Feasibility Study?

A feasibility study helps evaluate the feasibility of a business idea. It's like a pre-launch test to ensure a project has a good chance of success.

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Study Notes

Multiple Choice Questions

  • The higher the number of desirable responses on the Entrepreneurial Quiz, the more likely you are to agree with successful entrepreneurs.
  • Despite scoring high on the Entrepreneurial Quiz, your venture is unlikely to succeed if you fail to demonstrate commitment, determination, and perseverance.
  • A study of entrepreneurs found that openness to change, personal initiative, and perseverance are the principal reasons for entrepreneurial success.
  • Successful entrepreneurs are driven to achieve their goals and exceed initially set standards, making them challenge-oriented.
  • The best entrepreneurs are well-aware of their strengths and weaknesses, and the competitive environment they operate in. This makes them reality-oriented.
  • Most entrepreneurs are good, quick learners and listeners.
  • The three types of reactions are cognition, affect, and behavior.
  • The predisposition for innovation is personality.
  • All of the following are subscales in Robinson's EAO Model, except desire for retribution.
  • Freedom Fighters/Craftspeople entrepreneurs might be characterized as identifying with their craft over business ownership initially.
  • Venture capitalists typically have companies growing by over 30 percent annually.
  • Capital aggregators benefit from the economies of scale when volume expands.
  • Managing people, inventory, capital, and money are all considered entrepreneurial skill sets.
  • Purchasing supplies, inventory management, and physical facility management are considered part of directing business operations.
  • Job experience, organizational activities, and managing a home can help acquire skills relevant to entrepreneurial endeavors.
  • The personal net worth range for starting a business is generally thought to be $20,000 - $50,000.
  • Your credit rating is based on your prior history in borrowing and repaying money.
  • Researchers can identify common attributes, attitudes, and experiences among entrepreneurs that lead to success.
  • High energy, good health, and emotional stability are key "un-learnable" attributes of successful entrepreneurs.
  • High intelligence and conceptual ability are considered largely “innate” traits.
  • The Managerial Skills Inventory can help assess skills in areas such as financial accounting, human resources, and ethics.
  • The “typical entrepreneur” is often depicted as the Empire Builder type, characterized by constant project pursuit and market dominance.

True/False Questions

  • Researchers are unable to identify a set of common attributes, attitudes, and experiences among entrepreneurs leading to success. (FALSE)
  • There is considerable evidence that suggests the "right stuff" needed to become a successful entrepreneur can be learned. (TRUE)
  • Most entrepreneurs are self-confident and have a strong ego. (TRUE)
  • High energy, good health, and emotional stability are often considered unlearnable qualities for entrepreneurs. (TRUE)
  • High intelligence and conceptual ability are among the most learnable attributes of successful entrepreneurs. (FALSE)
  • The Managerial Skills Inventory Questionnaire can be used to develop an inventory of skills and capabilities in financial accounting, human resources and ethics. (FALSE)
  • Most entrepreneurs are self-confident and have a strong ego. (TRUE)
  • Most entrepreneurs are self-confident and have a strong ego. (TRUE)
  • Researchers are unable to identify a set of common attributes, attitudes, and experiences among entrepreneurs that appear to lead to success.(FALSE)
  • The "right stuff" needed to become a successful entrepreneur can be learned. (TRUE)

Short Answer Questions

  • Most critical attribute shared by successful entrepreneurs is a combination of perseverance and dedication.
  • "Not-so-learnable" traits of an entrepreneur include high energy, good health, emotional stability, creativity, high intelligence, and conceptual ability, the capacity to see a better future and the ability to inspire others to envision it.
  • Describe the three entrepreneurial archetypes developed by John Warrillow.
  • These include Craftspeople, Freedom Fighters, and Empire Builders.
  • List and describe the five basic elements of the opportunity recognition process developed by Lumpkin, Hills, & Shrader. (A diagram is required here)
  • Describe, with an example, each of the three basic categories into which new entrepreneurial concepts fall.
  • Type A: Replicating successful business models (e.g., a locally based restaurant copycatting a popular chain from elsewhere).
  • Type B: Creating new products or services using existing technology. (e.g., a new mobile app for managing appointments)
  • Type C: Improving existing products or services in new ways. (e.g., an online store that provides faster shipping than competitors).
  • What are the reasons many businesses should be more socially responsible?
  • List the reasons why businesses should be concerned with being more socially responsible.
  • Provide examples of the type of material included in the appendix of a business plan.
  • Examples include: product specifications, team member resumes, lists of possible clients/suppliers, etc.
  • State and describe the "seven deadly sins" of a business plan, as identified by Eric Ries’ Lean Startup model. (Information on these sins should be included, and references to the relevant sources).
  • Outline the key components of the vision statement and mission statement of a business.
  • Compare and contrast summary business plans with operational business plans.
  • Describe how a cash flow forecast helps assess a business's financial feasibility.
  • Describe fixed and variable expenses.
  • What are the five key areas that must be considered when evaluating marketing concerns of a prospective business?
  • List the key financial factors you must consider before buying a business.
  • Describe the advantages and disadvantages of buying an existing business.

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Test your knowledge on the key concepts and motivations in entrepreneurship. This quiz covers the characteristics of successful entrepreneurs, common sources of venture ideas, factors necessary for starting high-growth ventures, and the importance of community engagement. Challenge yourself and see how well you understand entrepreneurship principles.

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