A+ Answers

Question 1
Apple Inc. is a firm that is proactive, innovative and risk-taking. From this description, we can most accurately conclude that Apple has a high level of:
A. enterprise focus.
B. innovative intensity.
C. entrepreneurial intensity.
D. creative intensity.
Question 2
Netflix is an established firm that encourages and emphasizes entrepreneurial behavior throughout its various divisions. According to the textbook, Netflix practices:
A. tactical entrepreneurship.
B. corporate entrepreneurship.
C. strategic entrepreneurship.
D. enterprise entrepreneurship.
Question 3
The three primary reasons that people become entrepreneurs and start their own firms are to:
A. gain prestige, realize financial rewards, and eliminate risk in their lives.
B. do what they were “born” to do, be their own boss, and gain prestige.
C. take advantage of government subsidies, pursue their own ideas, and realize financial rewards.
D. be their own boss, pursue their own ideas, and realize financial rewards.
Question 4
Which of the following is the correct sequence for the four steps in the entrepreneurial process?
A. deciding to become an entrepreneur, developing successful business ideas, moving from an idea to an entrepreneurial firm, managing the growing entrepreneurial firm
B. developing successful business ideas, deciding to become an entrepreneur, moving from an idea to an entrepreneurial firm, managing and growing the entrepreneurial firm
C. developing successful business ideas, moving from an idea to an entrepreneurial firm, deciding to become an entrepreneur, managing and growing the entrepreneurial firm
D. deciding to become an entrepreneur, moving from an idea to an entrepreneurial firm, developing successful business ideas, managing and growing the entrepreneurial firm
Question 5
As new products that are better than the existing generation of products are introduced, sales normally increase because the new products provide consumers increased value or worth. This process, which is called __________, stimulates economic activity, which is a good thing for the economy.
A. creative destruction
B. repetitive destruction
C. inventive replacement
D. iterative replacement
Question 6
According to the textbook, Google, Facebook, and Zynga are examples of __________ firms.
A. lifestyle
B. salary-substitute
C. industry-standard
D. entrepreneurial
Question 7
According to the textbook, there are three types of startup firms: entrepreneurial firms, lifestyle firms, and:
A. civil firms.
B. salary-substitute firms.
C. standard-of-living firms.
D. innovative firms.
Question 8
The Savvy Entrepreneurial Firm featured in Chapter 1 focuses on Revio Mobile (maker of Angry Birds) and Zeo, two companies that have produced successful products. The feature’s main purpose is to illustrate the importance of __________ as a key characteristic of the founders of entrepreneurial firms.
A. execution intelligence
B. passion for the business
C. tenacity despite failure
D. product/customer focus
Question 9
The number one characteristic shared by successful entrepreneurs is:
A. a desire to achieve financial rewards.
B. passion for the business.
C. a desire to fulfill a lifetime dream.
D. a desire to bring a revolutionary new product or service to market.
Question 10
Which of the following is correct regarding opportunities and ideas?
A. An opportunity is a thought, an impression, or a notion.
B. An idea almost always meets the criteria of an opportunity.
C. An opportunity and an idea are essentially the same thing.
D. It’s important to discern whether a particular idea meets the criteria for an opportunity.
Question 11
The three ways to identify an opportunity include:
A. observing trends, solving a problem, and finding gaps in the marketplace.
B. observing trends, conducting brainstorming sessions, and studying industry trade journals.
C. observing trends, talking to consumers, and finding gaps in the marketplace.
D. studying industry trade journals, talking to consumers, and solving a problem.
Question 12
An increased focus on health and wellness has resulted in a number of new business ideas including healthier foods and beverages, yoga instruction and training centers, and nutrition consulting. An increased focus on health and wellness is an important __________ that is creating opportunities in many areas for entrepreneurial firms.
A. economic force
B. social force
C. regulatory force
D. technological advances
Question 13
If a new firm was launched to help public schools comply with The No Child Left Behind Act 02, that opportunity was created by:
A. changes in social forces.
B. changes in economic forces.
C. political actions and regulatory changes.
D. demographic changes.
Question 14
Clothing boutiques and specialty shops often start because there is a need for a particular product but large retailers like Wal-Mart and Costco can’t sell enough of the item to stock it on their shelves. If a clothing boutique started to sell designer clothes or clothing for hard-to-fit people because the clothing wasn’t being offered by a larger retailer, the best way to describe how that idea was recognized is:
A. finding a gap in the marketplace.
B. observing trends.
C. talking to consumers.
D. solving a problem.
Question 15
The ability to notice things without engaging in deliberate search is referred to as:
A. cognitive awareness.
B. individual awareness.
C. cognitive alertness.
D. entrepreneurial alertness.
Question 16
An individual who identifies a business idea on his or her own is referred to as a(n):
A. functional entrepreneur.
B. solo entrepreneur.
C. individual entrepreneur.
D. lone entrepreneur.
Question 17
__________ are characterized by frequent interactions that form between coworkers, friends, and spouses.
A. Balanced relationships
B. Lateral-tie relationships
C. Moderate-tie relationships
D. Strong-tie relationships
Question 18
__________ is the process of generating a novel or useful idea.
A. Innovation
B. Visualization
C. Creativity
D. Envisioning
Question 19
In the five-stage creative process, the flash of recognition, or what is sometimes referred to as the “eureka” experience, occurs in the:
A. insight stage.
B. preparation stage.
C. incubation stage.
D. elaboration stage.
Question 20
A(n) __________ is a physical or digital repository for storing ideas.
A. suggestion pool
B. idea pool
C. suggestion bank
D. idea bank