Technology Choices in Production

According to the passage, what does the first stage of the application of Catastrophe theory refer to?

The accumulated pressure which builds up behind inertia to change
The gradual buildup of knowledge and experiences which enables access to the imperceivable (correct)
The catastrophe change that occurs when the first entrepreneurial event is innovated
The substantial number of lesser catastrophe changes that follow the initial breakthrough

What is the significance of the concept of 'unrealized entrepreneurship' according to the passage?

It emphasizes the need to focus on realized entrepreneurship rather than unrealized entrepreneurship
It suggests that potentially viable development is washed or lost due to unrealized entrepreneurship
It recognizes the irrelevance of policy in engendering entrepreneurship
It recognizes the relevance of policy in engendering entrepreneurship through the encouragement of information access and imagination (correct)

What does the 'Allocative Efficiency' in Leibenstein's Theory of Entrepreneurship refer to?

The efficiency with which entrepreneurs manage their operations to minimize costs
The efficiency with which resources and factors of production are combined to satisfy effective demand (correct)
The efficiency with which entrepreneurs identify and exploit new business opportunities
The efficiency with which entrepreneurs allocate their personal resources to entrepreneurial activities

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 (C) Signup and view all the answers

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 (C) Signup and view all the answers

What does the passage suggest about the concept of 'unrealized entrepreneurship'?

It recognizes the potential for entrepreneurial opportunities that are not being realized (C) Signup and view all the answers

According to the passage, what represents a more fundamental 'catastrophe' for a firm?

The purchase of an additional machine (D) Signup and view all the answers

What are the 'normal factor' and 'splitting factor' mentioned in the passage?

The normal factor is information, and the splitting factor is imagination (C) Signup and view all the answers

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 (A) Signup and view all the answers

How does the passage describe the application of Catastrophe theory to entrepreneurship?

It is necessarily speculative (A) Signup and view all the answers

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 (D) Signup and view all the answers

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 (C) Signup and view all the answers

Which of the following is the first step in determining capital requirements according to the text?

Putting together a business model or plan (A) Signup and view all the answers

What does the text suggest is more important for a business, liquidity or profitability?

Liquidity is more important than profitability (D) Signup and view all the answers

What is a potential consequence of calculating capital requirements too conservatively?

You may not be able to compensate for unforeseen financial problems (B) Signup and view all the answers

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 (B) Signup and view all the answers

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 (A) Signup and view all the answers

What are examples of capital projects mentioned in the text?

Systems upgrades and adding a plant (B) Signup and view all the answers

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