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Chapter 07 Entrepreneurship Answer Key
True / False Questions
1.
Donna independently owns and operates Punkin's Pies, a small business with about 30
employees. She is happy with the size of her business and the average profits it generates.
From this scenario, Donna's business can be considered an entrepreneurial venture.
2.
Entrepreneurial venture is just another name for a small business.
3.
To be successful, entrepreneurs should be innovators and also have good knowledge and
skills in management, business, and networking.
4.
In the subscription model for e-commerce, fees are charged to bring buyers and sellers
together.
5.
The entrepreneurial strategy matrix allows one to conceptualize ventures along two
dimensions: investment and risk.
6.
Bad economic conditions make it especially difficult for an entrepreneurial organization to
expand.
7.
Entrepreneurs are frequently challenged by an aversion to record keeping.
8.
The best business plans convey five key factors: the financing, the opportunity, the
competition, the succession plan, and risk and reward.
9.
Large corporations are merely passive bystanders in the entrepreneurial explosion.
10.
Organizations that encourage intrapreneurship face the obvious risk that the effort can
fail.
Multiple Choice Questions
11.
Entrepreneurship occurs when an enterprising individual pursues a(n) _____.
12.
A small business usually has fewer than _____ employees.
13.
Which of the following would be classed as an entrepreneurial venture?
14.
Which of the following statements about entrepreneurs and risk is the most accurate?
15.
Nora works for a corporation and is using the company's resources to build a new line of
business for her employers. Nora is a(n) _____.
16.
Most entrepreneurs start their own firms because they
17.
The essential ingredients in any recipe for entrepreneurial success are a great product or
idea, a viable market, and _____.
18.
Which of the following descriptions of entrepreneurs is true?
19.
Julieta decided that a growing Latino population has created an opportunity to market her
family's salsa recipes. Which type of opportunity is she focusing on?
20.
_____ is an entrepreneurial alliance between two organizations.
21.
A(n) _____ is an innovator who has created at least one successful store and seeks
partners to operate the same concept in other local markets.
22.
Which of the following e-commerce models has advertisers pay for access to the
demographic group that visits the operator's site?
23.
Which of the following online businesses is the most likely to use the transaction fee
model?
24.
Which of the following online businesses uses the intermediary model of e-commerce?
25.
Which of the following e-commerce models are online newspapers most likely to use?
26.
Two major liabilities of start-ups are
27.
YouChuse is on online business that allows people to upload their original artwork to be
imprinted on cards and calendars, which are then offered for sale. What e-commerce
model is YouChuse most likely using?
28.
Protected environments for new, small business are known as _____.
29.
One of the most common reasons that entrepreneurial ventures fail is
30.
Initial public stock offerings provide a way to raise capital through
31.
Serena prepares a document that outlines her plan to open a new candy company,
including descriptions of the product, the market, her strategies, and the future direction
she envisions for the company. This document is a(n) _____.
32.
If a business's goals and methods are consistent with societal values, it is considered
_____.
33.
_____ is a competitive advantage that exists in your relationships with other people and
the image other people have of you.
34.
_____ are project teams designated to produce new, innovative products.
35.
People who have an entrepreneurial orientation tend to
36.
_____ occurs when an enterprising individual pursues a lucrative opportunity.
