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Edition Certo
Modern Management, 15e (Certo)
Chapter 2 Management and Entrepreneurship: Handling Start-Ups and New Ventures
1) ________ refers to the identification, evaluation, and exploitation of opportunities.
A) Entrepreneur
B) Entrepreneurial opportunity
C) Entrepreneurial alertness
D) Entrepreneurship
E) Entrepreneurial risk
Answer: D
Learning Obj: LO 2.1: An understanding of the three stages of entrepreneurship
Difficulty: Easy
Classification: Concept
2) Which of the following demonstrates the correct sequence in the stages of entrepreneurship?
A) opportunity identification, opportunity evaluation, opportunity exploitation
B) opportunity identification, opportunity exploitation, opportunity evaluation
C) opportunity evaluation, opportunity identification, opportunity exploitation
D) opportunity evaluation, opportunity exploitation, opportunity identification
E) opportunity exploitation, opportunity evaluation, opportunity identification
Answer: A
Learning Obj: LO 2.1: An understanding of the three stages of entrepreneurship
Difficulty: Challenging
Classification: Concept
3) Entrepreneurial opportunity is ________.
A) the activities and investments committed to gain returns from the new product or service
arising from the opportunity
B) resources (i.e., money, relationships, etc.) the entrepreneur could lose if the opportunity does
not succeed
C) an occasion to bring into existence new products and services that allow outputs to be sold at
a price greater than their cost of production
D) an individual's ability to notice and be sensitive to new information about objects, incidents,
and patterns of behavior in the environment
E) the process in which an individual or group of individuals in an existing corporation create a
new organization or instigate renewal or innovation within that corporation
Answer: C
Learning Obj: LO 2.1: An understanding of the three stages of entrepreneurship
Difficulty: Moderate
Classification: Concept
1
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,DOWNLOAD THE Test Bank for Modern Management Concepts and Skills 15th
Edition Certo
4) A(n) ________ is an individual who identifies, evaluates, and exploits opportunities.
A) leader
B) entrepreneur
C) supplier
D) distributor
E) opportunist
Answer: B
Learning Obj: LO 2.1: An understanding of the three stages of entrepreneurship
Difficulty: Easy
Classification: Concept
5) Research suggests that organizations started by entrepreneurial teams tend to perform better
than those started by individual entrepreneurs working by themselves. What is this attributed to?
A) The new, fresh mindset of entrepreneurs.
B) Organizations started by teams have more money.
C) Individual organizations do not have the manpower to help.
D) The combination of diverse skills, experiences, and relationships of the entrepreneurial team
members.
E) Entrepreneurial teams use more research for start-up decisions.
Answer: D
Learning Obj: LO 2.1: An understanding of the three stages of entrepreneurship
Difficulty: Moderate
Classification: Concept
6) George has been researching if he should open a business on his own or with a partner/group.
The combination of diverse skills, experiences, and relationship from an entrepreneurial team
would offer George a/an ________.
A) team benefit
B) combination plus
C) advantage group
D) team advantage
E) team bonus
Answer: D
Learning Obj: LO 2.1: An understanding of the three stages of entrepreneurship
Difficulty: Challenging
Classification: Application
7) Entrepreneurship refers to the identification, evaluation and exploitation of opportunities.
Answer: TRUE
Learning Obj: LO 2.1: An understanding of the three stages of entrepreneurship
Difficulty: Easy
Classification: Concept
2
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mynursytest.store
, DOWNLOAD THE Test Bank for Modern Management Concepts and Skills 15th
Edition Certo
8) Explain the fundamentals of entrepreneurship.
Answer: Entrepreneurship refers to the identification, evaluation, and exploitation of
opportunities. Opportunities, in a general sense, are appropriate or favorable occasions. In the
entrepreneurship context, though, the definition of opportunity is slightly different from this
general definition. Specifically, an entrepreneurial opportunity is an occasion to bring into
existence new products and services that allow outputs to be sold at a price greater than their cost
of production. In other words, entrepreneurial opportunities exist when individuals are able to
sell new products and services at a price that produces a profit.
Although entrepreneurship has a broad definition, the term still involves starting new businesses.
Learning Obj: LO 2.1: An understanding of the three stages of entrepreneurship
AACSB: Analytical Thinking
Difficulty: Challenging
Classification: Concept
9) Who is an entrepreneur?
Answer: An entrepreneur is an individual who identifies, evaluates, and exploits opportunities.
Many associate the term "entrepreneur" with one individual starting a new business, but it is not
always the case. Many entrepreneurs work with others when identifying, evaluating, and
exploiting entrepreneurial opportunities. Research suggests that organizations started by
entrepreneurial teams tend to perform better than those started by individual entrepreneurs
working by themselves. Many attribute this "team advantage" to the combination of diverse
skills, experiences, and relationships of the entrepreneurial team members. In addition, as new
organizations grow, they require leaders with new skills. Consequently, assembling a team
makes it easier for entrepreneurs to add team members with these new skills as the venture
expands.
Learning Obj: LO 2.1: An understanding of the three stages of entrepreneurship
Difficulty: Easy
Classification: Concept
10) Opportunities may arise from the creation or discovery of ________.
A) new research
B) new raw materials
C) ethics
D) more capital
E) social networks
Answer: B
Learning Obj: LO 2.2: An overall appreciation for the opportunity concept and an understanding
of the primary types of entrepreneurial opportunities
Difficulty: Easy
Classification: Concept
3
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mynursytest.store
Edition Certo
Modern Management, 15e (Certo)
Chapter 2 Management and Entrepreneurship: Handling Start-Ups and New Ventures
1) ________ refers to the identification, evaluation, and exploitation of opportunities.
A) Entrepreneur
B) Entrepreneurial opportunity
C) Entrepreneurial alertness
D) Entrepreneurship
E) Entrepreneurial risk
Answer: D
Learning Obj: LO 2.1: An understanding of the three stages of entrepreneurship
Difficulty: Easy
Classification: Concept
2) Which of the following demonstrates the correct sequence in the stages of entrepreneurship?
A) opportunity identification, opportunity evaluation, opportunity exploitation
B) opportunity identification, opportunity exploitation, opportunity evaluation
C) opportunity evaluation, opportunity identification, opportunity exploitation
D) opportunity evaluation, opportunity exploitation, opportunity identification
E) opportunity exploitation, opportunity evaluation, opportunity identification
Answer: A
Learning Obj: LO 2.1: An understanding of the three stages of entrepreneurship
Difficulty: Challenging
Classification: Concept
3) Entrepreneurial opportunity is ________.
A) the activities and investments committed to gain returns from the new product or service
arising from the opportunity
B) resources (i.e., money, relationships, etc.) the entrepreneur could lose if the opportunity does
not succeed
C) an occasion to bring into existence new products and services that allow outputs to be sold at
a price greater than their cost of production
D) an individual's ability to notice and be sensitive to new information about objects, incidents,
and patterns of behavior in the environment
E) the process in which an individual or group of individuals in an existing corporation create a
new organization or instigate renewal or innovation within that corporation
Answer: C
Learning Obj: LO 2.1: An understanding of the three stages of entrepreneurship
Difficulty: Moderate
Classification: Concept
1
Copyright © 2019 Pearson Education, Inc.
mynursytest.store
,DOWNLOAD THE Test Bank for Modern Management Concepts and Skills 15th
Edition Certo
4) A(n) ________ is an individual who identifies, evaluates, and exploits opportunities.
A) leader
B) entrepreneur
C) supplier
D) distributor
E) opportunist
Answer: B
Learning Obj: LO 2.1: An understanding of the three stages of entrepreneurship
Difficulty: Easy
Classification: Concept
5) Research suggests that organizations started by entrepreneurial teams tend to perform better
than those started by individual entrepreneurs working by themselves. What is this attributed to?
A) The new, fresh mindset of entrepreneurs.
B) Organizations started by teams have more money.
C) Individual organizations do not have the manpower to help.
D) The combination of diverse skills, experiences, and relationships of the entrepreneurial team
members.
E) Entrepreneurial teams use more research for start-up decisions.
Answer: D
Learning Obj: LO 2.1: An understanding of the three stages of entrepreneurship
Difficulty: Moderate
Classification: Concept
6) George has been researching if he should open a business on his own or with a partner/group.
The combination of diverse skills, experiences, and relationship from an entrepreneurial team
would offer George a/an ________.
A) team benefit
B) combination plus
C) advantage group
D) team advantage
E) team bonus
Answer: D
Learning Obj: LO 2.1: An understanding of the three stages of entrepreneurship
Difficulty: Challenging
Classification: Application
7) Entrepreneurship refers to the identification, evaluation and exploitation of opportunities.
Answer: TRUE
Learning Obj: LO 2.1: An understanding of the three stages of entrepreneurship
Difficulty: Easy
Classification: Concept
2
Copyright © 2019 Pearson Education, Inc.
mynursytest.store
, DOWNLOAD THE Test Bank for Modern Management Concepts and Skills 15th
Edition Certo
8) Explain the fundamentals of entrepreneurship.
Answer: Entrepreneurship refers to the identification, evaluation, and exploitation of
opportunities. Opportunities, in a general sense, are appropriate or favorable occasions. In the
entrepreneurship context, though, the definition of opportunity is slightly different from this
general definition. Specifically, an entrepreneurial opportunity is an occasion to bring into
existence new products and services that allow outputs to be sold at a price greater than their cost
of production. In other words, entrepreneurial opportunities exist when individuals are able to
sell new products and services at a price that produces a profit.
Although entrepreneurship has a broad definition, the term still involves starting new businesses.
Learning Obj: LO 2.1: An understanding of the three stages of entrepreneurship
AACSB: Analytical Thinking
Difficulty: Challenging
Classification: Concept
9) Who is an entrepreneur?
Answer: An entrepreneur is an individual who identifies, evaluates, and exploits opportunities.
Many associate the term "entrepreneur" with one individual starting a new business, but it is not
always the case. Many entrepreneurs work with others when identifying, evaluating, and
exploiting entrepreneurial opportunities. Research suggests that organizations started by
entrepreneurial teams tend to perform better than those started by individual entrepreneurs
working by themselves. Many attribute this "team advantage" to the combination of diverse
skills, experiences, and relationships of the entrepreneurial team members. In addition, as new
organizations grow, they require leaders with new skills. Consequently, assembling a team
makes it easier for entrepreneurs to add team members with these new skills as the venture
expands.
Learning Obj: LO 2.1: An understanding of the three stages of entrepreneurship
Difficulty: Easy
Classification: Concept
10) Opportunities may arise from the creation or discovery of ________.
A) new research
B) new raw materials
C) ethics
D) more capital
E) social networks
Answer: B
Learning Obj: LO 2.2: An overall appreciation for the opportunity concept and an understanding
of the primary types of entrepreneurial opportunities
Difficulty: Easy
Classification: Concept
3
Copyright © 2019 Pearson Education, Inc.
mynursytest.store
