18 Questions
According to the passage, what does the first stage of the application of Catastrophe theory refer to?
The gradual buildup of knowledge and experiences which enables access to the imperceivable
What is the significance of the concept of 'unrealized entrepreneurship' according to the passage?
It recognizes the relevance of policy in engendering entrepreneurship through the encouragement of information access and imagination
What does the 'Allocative Efficiency' in Leibenstein's Theory of Entrepreneurship refer to?
The efficiency with which resources and factors of production are combined to satisfy effective demand
According to the passage, what is the second stage of the application of Catastrophe theory?
The accumulated pressure which builds up behind inertia to change
What is the relationship between the initial catastrophe change and the subsequent lesser catastrophe changes according to the passage?
The initial catastrophe change leads to a substantial number of lesser catastrophe changes in different parts of the circular flow
What does the passage suggest about the concept of 'unrealized entrepreneurship'?
It recognizes the potential for entrepreneurial opportunities that are not being realized
According to the passage, what represents a more fundamental 'catastrophe' for a firm?
The purchase of an additional machine
What are the 'normal factor' and 'splitting factor' mentioned in the passage?
The normal factor is information, and the splitting factor is imagination
According to the passage, what happens when the amount of information made available to or combined with the stock of imagination is gradually increased?
A natural different perception is enabled which was hitherto inaccessible
How does the passage describe the application of Catastrophe theory to entrepreneurship?
It is necessarily speculative
What is the key point made about the resale of equipment in the passage?
The resale value is the same as the purchase price when new
What is the key implication of the passage's discussion of the 'splitting factor'?
Firms should carefully manage their information flows to enable new perceptions
Which of the following is the first step in determining capital requirements according to the text?
Putting together a business model or plan
What does the text suggest is more important for a business, liquidity or profitability?
Liquidity is more important than profitability
What is a potential consequence of calculating capital requirements too conservatively?
You may not be able to compensate for unforeseen financial problems
What does the text suggest about the relationship between capital requirements planning and other parts of a business plan?
Capital requirements planning is closely linked with all other parts of the business plan
What does the text suggest is a potential consequence of calculating capital requirements too generously?
It will be more expensive if you fund with loans
What are examples of capital projects mentioned in the text?
Systems upgrades and adding a plant
Test your knowledge on how firms decide on technology choices in production processes, considering factors such as orders, output increase, labor intensity, and buying new machines.
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