MGMT 325 Test 2 | Questions with 100% Correct Answers

MGMT 325 Test 2 | Questions with 100% Correct Answers _____ occurs when an enterprising individual pursues a lucrative opportunity. A. Bootlegging B. Franchising C. Intrapreneurship D. Entrepreneurship E. Business incubation According to many entrepreneurs and observers, when creating a new business, one should start with: A. strategic positioning. B. social capital. C. great ideas. D. domain selection. E. social responsibility. With which of the following models does a site pay commissions to other sites to drive business to its own sites? A. Transaction fee model B. Advertising support model C. Intermediary model D. Affiliate model E. Subscription model Bringing buyers and sellers together and charging a commission for each sale is known as the _____ model. A. transaction fee B. advertising support C. intermediary D. affiliate E. subscription The Draconian Times requires regular viewers of its online articles to pay a monthly fee to maintain uninterrupted access to its content. This is an example of the _____ model. A. bootlegging fee B. advertising support C. intermediary D. affiliate E. subscription Dr. Gerry began helping women in South Rhodia obtain microloans. This act is a typical example of: A. social entrepreneurship. B. skunkworks. C. the subscription model. D. bootlegging. E. business incubation. Generally, which of the following characteristics contributes to entrepreneurs' success? A. Commitment to work-life balance B. Tolerance of risk and uncertainty C. Discounting of own weaknesses D. Comfort with the status quo E. Obsession with earning money What characteristics do successful entrepreneurs who are decisive, tenacious, disciplined, and willing to sacrifice possess? A. Leadership B. Commitment and determination C. Opportunity obsession D. Creativity, self-reliance, and ability to adapt E. Motivation to excel Most small business ventures are in the _____ category of the entrepreneurial strategy matrix. A. high innovation/high risk B. low innovation/low risk C. high innovation/low risk D. low innovation/high risk E. high investment/low risk A novel product idea that involves a large financial investment would be categorized as involving: A. high innovation/low risk. B. high innovation/high risk. C. low innovation/low risk. D. low innovation/high risk. E. low innovation/uncertain risk. Which of the following is one of the major liabilities of start-ups? A. Acuteness B. Completeness C. Validness D. Complexness E. Smallness Success of entrepreneurial ventures is often jeopardized by the death of the founder. Which of the following is an important measure to minimize this problem? A. Conservative use of funds B. Adequate succession planning C. Systematic recordkeeping D. Decreased delegation E. Going public IPO is an acronym that stands for: A. instant public obligation. B. initial public obligation. C. initial public stock offering. D. immediate principal obligation. E. innovative process for organizing. _____ provides a lasting source of competitive advantage. A. Social capital B. Venture capital C. Bootlegging D. Horse trading E. Emotional intelligence Which of the following nonfinancial resources is crucial to the success of a new business? A. Transaction fees B. Bootleggers C. Cheerleaders D. Top management teams E. Horse traders The first step to building organizational support for an intrapreneur's idea that involves explaining the idea and seeking approval to look for wider support is called: A. making cheerleaders. B. bootlegging. C. horse trading. D. clearing the investment. E. getting the blessing. While building support for one's idea, getting together people who will offer support before formal approval from higher levels is known as: A. making cheerleaders. B. bootlegging. C. horse trading. D. clearing the investment. E. getting the blessing. "Horse trading," "making cheerleaders," "getting the blessing," and "clearing the investment" are the steps in: A. opportunity analysis. B. patent processing. C. external strategic alliance formation. D. building support for an intrapreneurial idea. E. creating a partnership. _____ refers to informal efforts—as opposed to official job assignments—in which employees work to create new products and processes of their own choosing and initiative. A. Benchmarking B. Skunkworks C. Bootlegging D. Horse trading E. Buffering Viviana works in the software development team for a large corporation. Her employer encourages employees to pursue new ideas on company premises and therefore she has a side project involving applications for small kitchen appliances. In this scenario, Viviana's employer appears to support ____. A. bootlegging B. skunkworks C. spin-offs D. delegation E. corporate espionage The tendency of an organization to engage in activities designed to identify and capitalize successfully on opportunities to launch new ventures by entering new or established markets with new or existing goods or services is called ____. A. entrepreneurial orientation B. oligopolistic behavior C. cartelism D. intrapreneurial separation E. bootlegging Scenario A. Chelsea leaves her job at a car manufacturing company and starts her own business. Her objective is to attain maximum growth and earn high profits. Jessica, her friend, who works at the same company has started a business venture utilizing the resources of the company. Henry, her colleague, states that he would make a successful entrepreneur as he is a gambler, and believes that a good idea and talent leads to success within a year. He has also scored 665 in his SATs. In Scenario A, Henry's beliefs are some examples of the _____ of entrepreneurship. A. challenges B. opportunities C. threats D. myths E. facts By leaving her job and starting her own business, Chelsea has become a(n) ____. A. business incubator B. entrepreneur C. intrapreneur D. horse trader E. bootlegger Scenario C. Two entrepreneurs, Raymond and Christy, were discussing about the potential for success or failure of their ventures. They described their start-ups in the following manner: 1. Raymond stated that he had very little money invested, but he was the first in the market with his product. 2. Christy stated that her investment in the business was very less and that her product was similar to those in the market. According to the entrepreneurial strategy matrix, Raymond's scenario can be described as involving: A. low innovation/high risk. B. low innovation/ low risk. C. high innovation/low risk. D. high innovation/high risk. E. high investment/no risk. Scenario D. George has begun the planning process for his entrepreneurial venture. He has completed an assessment of his vision to operate a full shuttle service for the elderly, for which he feels there is a strong market. He has a good understanding of the availability of his own resources and his personal traits to manage the business. Now he is prepared to start compiling functional plans for marketing, finance, and human resources so that he can obtain the financing he will need to start. He is also contemplating how to develop the right reputation and create the proper networks to find employees and customers as well as get advice from fellow businesspeople. When George worries about his network and his business's reputation, he is concerned with: A. social capital. B. venture capital. C. horse trading. D. bootlegging. E. corporate standing. Entrepreneurship occurs when an enterprising individual pursues a lucrative opportunity. TRUE Entrepreneurs are best characterized as gamblers in their approach to risk. FALSE New venture creators working inside big companies are called intrapreneurs. TRUE Entrepreneurs' primary motivation to start their own firms is most often to get rich quickly. FALSE A great idea is one of the essential ingredients in a successful entrepreneurial venture. TRUE Natural disasters can provide opportunities for entrepreneurs. TRUE A franchisor is an innovator who has created at least one successful store and seeks partners to operate the same concept in other local markets. TRUE In e-commerce, the advertising support model involves advertisers paying for access to the demographic group that visits the operator's site. TRUE Online travel agents typically use the transaction fee model for e-commerce. TRUE The entrepreneurial strategy matrix allows one to conceptualize ventures along two dimensions: investment and risk. FALSE Bad economic conditions make it especially difficult for an entrepreneurial organization to expand. FALSE The reason for nearly all financial failures of entrepreneurial ventures is the lack of adequate start-up capital. FALSE Entrepreneurs are frequently challenged by an aversion to record keeping. TRUE The best business plans convey five key factors: the people, the opportunity, the competition, the context, and risk and reward. TRUE Organizations that encourage intrapreneurship face the obvious risk that the effort can fail. TRUE The _____ structure is an organizational form that emphasizes flexibility. A. systematic B. mechanistic C. bureaucratic D. scientific E. organic A _____ is the knowledge, expertise, or skill that underlies a company's ability to be a leader in providing a range of specific goods or services. A. dynamic network B. continuous process C. core capability D. cognitive ability E. knowledge flow Which of the following statements is true about strategic alliances? A. Managers typically do not devote enough time to screen potential partners, for a strategic alliance, in financial terms. B. For the alliance to work, the partners should consider one another's areas of expertise. C. The most successful strategic alliances have the same research interests. D. Strategic alliances often slow down the work of two organizations. E. Manufacturing costs are often increased by using a strategic alliance. Which of the following types of organizations pursues activities such as engaging in disciplined thinking, searching constantly for new knowledge, benchmarking, and sharing ideas throughout the organization via information systems? A. Mechanistic organizations B. Learning organizations C. High-involvement organizations D. Monolithic organizations E. Pluralistic organizations In a _____ organization, top management ensures that there is consensus about the direction in which the business is heading. A. learning B. high-involvement C. mechanistic D. network E. customer-centric Diseconomies of scale refers to the: A. environmental forces that inherently have a negative impact on business growth. B. realization of lower per-unit costs. C. costs associated with an organization being too big. D. use of materials or processes in related products or services. E. fluctuations in the economy. Which of the following involves eliminating functions, hierarchical levels, or even whole units? A. Reengineering B. Domain selection C. Downsizing D. Buffering E. Benchmarking Survivor's syndrome refers to the: A. loss of productivity and morale in employees who remain after downsizing. B. guilt on the part of management for going ahead with the downsizing. C. slump in market share after a new company enters the market. D. lack of motivation in the people who got laid off to find new jobs. E. distress experienced by employees who have been laid off. In a business unit setup, kaizen refers to ____. A. zero defects B. total quality management C. value chain D. continuous improvement E. rightsizing The sequence of activities that flow from raw materials to the delivery of a good or service, with additional value created at each step, is known as ____. A. competitive analysis B. the value chain C. customer analysis D. total quality management E. the strategic triangle Will is the marketing head of a firm. He usually strives for long-term improvement rather than short-term profit, regardless of the economic environment. In the context of Deming's 14 points of quality, this is an example of: A. creating constancy of purpose. B. adopting a new philosophy. C. improving constantly and forever the system of production and service. D. taking action to accomplish the transformation. E. offering training and retraining. According to Deming's 14 points of quality, which of the following has to be eliminated, as they are contrary to the idea of continuous improvement? A. Numerical quotas B. Retraining programs C. Value chains D. Strategic alliances E. Just-in-time operations One of the most important contributors to total quality management has been the introduction of statistical tools to analyze the causes of product defects in an approach called ____. A. six sigma quality B. concurrent engineering C. value chain management D. computer-integrated manufacturing E. kanban Which of the following is one of the criteria for receiving the Malcolm Baldrige National Quality Award? A. Use of JIT B. Extensive training for workers C. Technological innovation D. Customer and market focus E. ISO 9001 certification Executives at a pharmaceuticals company have been working with a consultant to implement ISO 9001. They have established the company's vision and goals, and have been working hard to provide inspiration to their employees and establish trust. Which of the following principles is the company addressing here? A. Involvement of people B. Strategic quality planning C. Mutually beneficial supplier relationships D. Process approach to management E. Leadership Which of the following is true of small batch technologies? A. The organization is bureaucratic. B. Decision making is centralized. C. The emphasis is on mutual adjustment among people. D. Most procedures are formal. E. They provide a low variety of high-volume services. An operation that achieves increased efficiency while simultaneously improving effectiveness is best described as practicing ____. A. lean manufacturing B. ISO 9001 C. mass customization D. concurrent engineering E. JIT operations