Which of the Following Statement Is True for Entrepreneurship

MGT602 MIDTERM

Which of the following statement is true for entrepreneurship? ► Entrepreneurship is the dynamic process of creating incremental wealth (PAGE 4) ► Entrepreneurship involves the management process ► Entrepreneurship does not require the devotion of the necessary time and effort ► Entrepreneurship involves assuming the necessary financing

2-The skills required by entrepreneurs can be classified into three main areas, one of which is: ► Being innovative ► Personal entrepreneurial skills (PAGE 11) ► Social skill ► None of the mentioned options

THREE ENTERPRENEURIAL SKILLS 1) TECHNICAL SKILL 2) BUSINESS MANAGEMENT SKILL 3) PERSONAL ENTERPREUEURIAL SKILL 3-The entrepreneur employs a flat organizational structure with: ► Which is hierarchical in nature? ► Which is formalized? ► Informal networks (PAGE 15) ► None of the mentioned options 4-Following leadership characteristics constitute a successful intrapreneur, except: ► Visionary and flexible ► Creates management options ► Train employees as well as share their experiences (PAGE 20) ► Persists

INTRAPRENEURIAL LEADERSHIP CHARACTERISTICS There are certain individual characteristics needed for a person to be successful Entrepreneurs, including: 1. Understanding the environment 2. Being visionary and flexible 3. Creating management options 4. Encourage teamwork while employing a multi-disciplined approach 5. Encouraging open discussion 6. Building a coalition of supporters, and persisting

5-An opportunity assessment plan should focus on the opportunity and provide the basis to make the decision, and: ► A description of the product or service ► An assessment of the opportunity ► Assessment of the entrepreneur and the team ► All of the mentioned options (PAGE 13)

Opportunity analysis, or an opportunity assessment plan, should focus on the opportunity and provide the basis to make the decision, including: a. A description of the product or service b. An assessment of the opportunity c. Assessment of the entrepreneur and the team d. Specifications of all the activities and resources needed e. The source of capital to finance the initial venture

6-One of the factors making it desirable to create a new venture is: ► The Government ► Teachers (PAGE 6) ► Availability of financial resources ► None of the mentioned options

7-Some of the more frequently used ideas for new entrepreneur include: ► Consumers ► Existing companies ► Distribution channels ► All of the mentioned options (PAGE 38)

SOURCE S OF NEW IDEAS A sound idea for a new product or service, properly evaluated, is essential to successfully launch a new venture. Some of the more frequently used ideas for new entrepreneur include consumers, existing companies, distribution channels, the federal government and research and development. 8-Personal entrepreneurial skills differentiate an entrepreneur from a manager and include ► Inner control (discipline) ► Risk taking ► Innovativeness ► All of the mentioned options (PAGE 11)

Personal entrepreneurial skills differentiate an entrepreneur from a manager and include inner control (discipline), risk taking, innovativeness, persistence, visionary leadership, and being change oriented.

9-The product planning and development process – is divided into five major stages. Which of the following is not a stage of this process? ► Idea stage ► Concept stage ► Production stage (PAGE 43) ► Product development stage This refining process- the product planning and development process – is divided in to five major stages. Idea stage, concept stage, product development stage, test marketing stage and commercializing; it result in the product life cycle.

10-One of the factors making it possible to create a new venture is:

► The Government (PAGE 6)

► Teachers ► Peers ► None of the mentioned options

What makes it possible to form a new company?” Formal education and previous business experience give a potential entrepreneur the skills needed to form and manage a new enterprise. Although educational systems are important in providing the needed business knowledge, individual will tend to be more successful in forming in fields in which they have worked. The government also contributes by providing the infrastructure to help a new venture.

11-Without Top Management , the organization will never be able to make the necessary changes.

COMMITMENT (PAGE 20)

Without top management commitment, the organization will never be able to make the necessary changes

12-Technological innovations refer to new products with significant technological advancements

TRUE (PAGE 8)

13-The Venture Capitalist is a professional money manager who makes risk investments from pool and equity capital to obtain a high rate of return on investment.

TRUE (page 3)

14-The entrepreneur must be able to put forth the necessary Time and effort required for the venture to succeed. True (page 13)

15-In Product Development stage, consumer reaction is determined, often through a consumer panel.

True (page 43)