Chapter 7 Practice Questions

Front 1

entrepeneurship occurs when

Back 1

an enterprising individual pursues a lucrative opportunity

Front 2

a small business is often defined as

Back 2

having fewer than 100 employees, as well as being independently owned and operated

Front 3

primary objectives of an entrepreneurial venture

Back 3

new business having growth and high profitability

Front 4

franchisor

Back 4

an innovator who created as least one successful store and seeks partners to operate the same concept in other local markets

Front 5

small business

Back 5

business having fewer than 100 employees, independently owned and operated, not dominant in its field and not characterized by many innovative practices

Front 6

intrapreneurs

Back 6

corporate entrepreneurs; new venture creators working within a large organization

Front 7

advertising support model

Back 7

practice of charging fees to advertise on an internet site

Front 8

affiliate model

Back 8

charging fees to direct internet site visitors to other companies' sites

Front 9

subscription model

Back 9

charging periodic fees for internet site visits or access to site content

Front 10

intermediary model

Back 10

web site bring buyers and sellers together and charges a commission for each sale

Front 11

premier example of the intermediary model

Back 11

eBay

Front 12

upper left quadrant of entrepreneurial strategy matrix

Back 12

idea requiring little financial investment, innovation is high, and little risk

Front 13

bottom right quadrant of entrepreneurial strategy matrix

Back 13

big investment, innovation is low and risk is high

Front 14

most small business ventures are in the blank entrepreneurial strategy matrix

Back 14

low right quadrant

Front 15

upper left quadrant of entrepreneurial strategy matrix

Back 15

highest risks and returns

Front 16

business incubators

Back 16

protected environments for new, small businesses offering low rents and shared costs

Front 17

IPO is an acronym that stands for

Back 17

initial public stock offering

Front 18

IPOs are a way for

Back 18

a business to raise capital through federally registered and underwritten sales of shares in the company

Front 19

the first formal step in planning is

Back 19

to do an opportunity analysis

Front 20

opportunity analysis

Back 20

description of the good or service, an assessment of the opportunity, an assessment of the entrepreneur, specification of activities and resources needed to translate the idea into a viable business and the sources of capital together

Front 21

fundamental reason for creating an opportunity analysis

Back 21

to analyze whether or not to proceed

Front 22

business plan

Back 22

formal planing step that focuses on the entire venture and describes all the elements involved in stating it

Front 23

horse trading

Back 23

amelie decides to offer one of her subordinates, Jason, his pick of tasks on a new project in exchange for his vocal support of it at an upcoming meeting

Front 24

steps in building support for an intrapreneurial idea

Back 24

horse trading, making cheerleaders, getting the blessing, and clearing the investment

Front 25

skunkworks

Back 25

orlando staples works as a technician for a large manufacturer of biomedical equipment. orlando has discovered a way to produce disposable products in large quantities which would be useful for use in research facilities. orlando's employer has given orlando and a selected team of researchers the resources to develop this idea

Front 26

bootlegging

Back 26

informal efforts, as opposed to official job assignments, in which employees work to create new products and processes of their own choosing and initiative