Chapter 2



Chapter 2Bird (1989) describes different types of risk, what are these? Financial risksRelationship risks Economic, social, career development, psychological and health risksCareer, health, and financial risksApproximately, how many people are employed in SMEs in the UK?2 million18 million14.5 million 16millionThe importance of entrepreneurship has always been fully acknowledged by academia? TrueFalseWhat attributes might make someone more likely to become a successful entrepreneur? The need for achievement and a high-tolerance for ambiguity Willingness to bear risk and Self-efficacy Internal locus of control All of the aboveUntil recently, what did the theory of the firm ignore? Advancing technologyThe role of the individualSocial networksEmerging sources of fundingWhat are the sources of entrepreneurial motivation?IntrinsicExtrinsicNeither of the above Both intrinsic and extrinsic sourcesGartner (1985) describes four ingredients of the value creation process as:The new venture, the organization they create, the environment surrounding the new venture, and the process by which the new venture is createdStarting the new venture, satisfying stakeholders, securing long-term funding, and employing peopleStarting the new venture, the organization they create, the environment surrounding the new venture, and planning the closure of the ventureHolding first-mover status in a market, developing a marketing plan, satisfying stakeholders, undertaking an audit. Entrepreneurs emerged in tandem with the proliferation of the world-wide-web.TrueFalseThe three major schools of entrepreneurial tradition are: Chicago, German and Austrian traditionsAmerican, Australian and Canadian traditionsChinese and Japanese traditionsBritish, French and German traditionsIn what year was the role of the entrepreneur given credit in relation to economic theory?1923188317301768Chapter 31. De Bono describes how many thinking hats?a. One b. Sevenc. Sixd. Twelve 2. What are the two dominant views of creativity? a. Elite view, and creationist viewb. Elite view, and developmental viewc. Developmental view and the capitalist viewd. Artistic view and renaissance view3. Innovation is the process of creating and developing an entirely new idea from scratch. a. Trueb. False4. Innovation can be:a. Disruptiveb. Sustainingc. Nourishingd. Answer a and b5. Opportunity discovery can be enhanced with which of the following? a. Prior knowledgeb. Work experiencec. Education and personal events d. All of the above6. Which of the following represent stages in creative problem solving?a. Preparation, incubation, insight, evaluation, elaborationb. Preparation, insight, evaluation, and elaborationc. Preparation, evaluation and profit-makingd. None of the above7. The blue hat stimulates the discussion.a. Trueb. False8. Identifying business opportunities could be considered to be a linear process. a. Trueb. False9. Shumpeter identifies five types of innovation as: a. A new process, a new market, a new supply chain, a new business/industry, and a new product b. A new process, emerging market, a new supply chain, logistical advance, and a new productc. A new process, a new supply chain, a new product, revived market, a sustainable plan for growthd. None of the above10. According to Horovitz (1997), a true entrepreneur is someone who: a. Knows the right people, can form effective teams, move quickly and deliver on plansb. Is a good team player, has an analytical mind, and is highly intelligentc. Enjoy social situations, is highly educated and from a wealthy backgroundd. Is a natural introvert, usually has few professional connections, and is of limited academic abilityChapter 4What is the reported percentage of women-led businesses internationally?50%33%25%How many thematic areas of research emerged from the Bruni et al. (2004) study of women entrepreneurs?725Which one of these resources is not reported as a challenge to women entrepreneurs?Access to capital Access to networks Access to family support Socio-cultural role of women From the UK Small Business Survey (2014), approximately how many SMEs are led by ethnic minority groups?37,000137,000367,000637,000According to the Department for Communities and Local Government (2013), what percentage of the UK Government Start Up Loans scheme has been taken up by ethnic minority entrepreneurs?3.5%35% 65%85%What are the two biggest challenges for graduate entrepreneurs?a lack of business skills and access to financelosing contact with their university network and forgetting what they learnedfending off multiple job offers and pleasing their parentsWhat is the main difference between disabled entrepreneurs and other diverse groups of entrepreneurs?their identifying characteristic (their impairment) can be temporary variances in their impairment has extreme impact on individual participation their identifying characteristic (their impairment) is identified as a limitation rather than a point of difference all of the above Which of these is a barrier for disabled entrepreneurs entering self-employment?fear of failure too many businesses already in the market loss of welfare benefits What are some of the challenges for grey entrepreneurs?health issues, ageism and the role of technologythe ability to physically set up an office or retail spacea lack of business skills and access to financeAccording to UK Census data (2011), what percentage of the population reported themselves as gay, lesbian or bi-sexual?0.5%1.5%5%15%Chapter 5What is the third sector of the economy?It is the sector of the economy concerned with making profit for individuals and shareholders.It is the sector of the economy populated by charities, associations and social enterprises, which is not for personal profit.It is the sector of the economy controlled by the government.It is the sector of the economy equivalent to the black economy.What is the social economy?It is derived from at least the sector of the economy populated by charities, associations and social enterprises that provide some income from trading.It is the sector of the economy where local people swop skills and abilities without the exchange of money.The social economy is populated by third sector firms that do not trade. The social economy is the sector of the economy where cash-in-hand jobs are not declared for tax purposes.What is social enterprise?Social enterprises are not for personal profit organisations that derive the majority of their income from the government.Social enterprises are not for personal profit organisations that derive the majority of their income from grants and donations.Social enterprises are for personal profit but have a social mission.Social enterprises are not for personal profit enterprises that derive a minimum of 25% to 50% of their income from trading.Which of the following best describes the position of social entrepreneurship within the within the economy?Social entrepreneurship is restricted to the third sector.Social entrepreneurship is restricted to the social economy.Social entrepreneurship can exist in any of the three sectors of the economy.Social entrepreneurship is mainly a public sector activity.Which of the following is true of the Social Innovation School of thought on Social Entrepreneurship?Primacy of social missionThat the organisation is 100% reliant on earned incomeThat the firm does not make a profitThe organisation distributes profit to shareholdersWhich is the following is true of the earned income school of thought on social entrepreneurship?The SE must derive 50% of income from trading.The SE must generate 100% of income from trading.The SE can take 50% of the firm’s turnover for personal use.The organisation derives 50% of its funding from the government.J. Gregory Dees is a proponent of which school of thinking on social entrepreneurship?The earned income schoolThe social innovation schoolA combination of the twoNone of the aboveWhich of the following best describes social capital?Social capital belongs to an individual and can be depleted through use.Social capital exists between individuals and can be depleted through use.Social capital exists between individuals and cannot be depleted through use.None of the aboveProviding an incontestable definition of social entrepreneurship is difficult because...It is a pre-paradigmatic discipline.There is uncertainly if it is a genuine practice.It is hard to define.All of the aboveSocial entrepreneurship is different to social enterprise because...It is an individual rather than collective activity.Social enterprises sometimes rely on a variety of income streams.Not all social enterprises are entrepreneurial.All of the aboveChapter 6What is corporate entrepreneurship?A powerful solution to corporation staleness, lack of innovation and stagnated growthActivities that enhance a corporation’s ability to innovate, take risk and seize opportunitiesDevelopment of new business within established corporationsAll of the aboveWhy is corporate entrepreneurship important?Defining the parameters of your market shareUnderstanding which market is profitable Ensuring the long-term sustainability of a corporationAll of the aboveWhich of the following is not of the four models of corporate entrepreneurship?The enablerThe opportunistThe marketerThe advocateAll of the following are true, except:The enabler – corporation provides funding and management attention to prospective projectsThe opportunist – corporation has no deliberate approach to corporate entrepreneurship The marketer – corporation establishes a full-service groupThe advocate – corporation evangelises for corporate entrepreneurship, but business units provide the primary fundingWhich environmental turbulence has created a need for new management practices?Human resources managementCompetitorsProductionAll of the aboveWhich of the following is not of the four schools of thought?Entrepreneurial behaviourIntrapreneurshipCorporate venturingBringing the market insideWhat are the advantages of corporate venturing?It is often highly motivating to the staff involvedIt brings innovation and knowledge into the organisation from external sourcesExternal sources of finance may be more easy to accessAll of the aboveWhat are the disadvantages of corporate venturing?It facilitates the creation of operating units with their own culturesIt requires investment normally in the form of equity, which can be riskyThe investing company will have complete control of the innovationAll of the aboveWhat is intrapreneurship?A process whereby individuals inside corporations pursue opportunities independent of the resources they currently controlA process to expand the scope of operations and investmentsA process to facilitate the investment opportunities in profitable projects All of the aboveWhich of the following is of the six types of corporate entrepreneurship outcomes?New products or servicesNew marketsNew internal processesAll of the aboveChapter 7It is estimated that family owned businesses comprise_________ all small firms across most countries.Around 50%Around two thirdsOver 70%Less than 20%The United Kingdom’s oldest family owned business is:John Lewis partnershipBosch GroupMarks and SpencerR.J. Balson and SonsFamily businesses that survive to the third generation and beyond is:Relatively smallLess than 30%Around 24%14%Which three dimensions are commonly used to help identify the differences between family businesses and other businesses?Ownership, management and board membershipCorporate governance, company size and environmental contextManagement, leadership and cultureFamily relationships, company culture and succession planningAccording to the Centre for Family Business at the University of St. Gallen, Switzerland, which continent contains the highest proportion of the largest family businesses in the world?North AmericaAsiaEuropeSouth AmericaWhich of the following situations commonly influences family relationships in family businesses?Less qualified family members are promoted ahead of non-family members (nepotism)Sibling rivalry amongst multiple family members working in the companyThe owners inability to perform multiple roles effectivelyAll of the aboveWhat aspects of a family business do professional managers commonly retain even if family ownership has decreased significantly? Continue to hire and retain family membersFamily name and key individualsPhysical assets and tangible assets like brand namesProducts and nonfamily membersWhich of the following cultural attributes endow family businesses with operating advantages?“Sense of future”Founder’s example inspires and motivatesReputationAll of the aboveWhich of the following is not an approach for ensuring the transition of ownership between generations?“Stop-gap manager”“Change agent”“Sibling partnership”“The crown prince”Which areas of family business are poorly researched?Gender and ethnicitySuccession planning and ownershipCompany culture and family relationshipsOwnership and corporate governanceChapter 8If trait research had been successful, we would ______________, whereas if behavioural studies were correct, we would ___________.teach people certain traits; teach people certain behaviourschange jobs to suit people; change people to suit jobsonly hire women; hire either men or womenselect the right person for the job; train leadersBlake and Mouton’s Managerial Grid has all of the following management styles except:TeamDemocraticAuthority-obedienceCountry clubImpoverishedIn leadership trait theory what is a trait?A list of the key things that a leader should do to be great.The list of key behaviours a leader exhibits.A list of the things that make leaders different to everyone else.A list of key characteristics that makes a leader great.For the Ohio State leadership studies the perfect leader:Combines a focus on the task and the employeeInspires workers to aim higher and achieve moreFocuses on the task and getting things done.Is concerned about the small details and how to increase productivityContingency theory is based on the assumption that the ideal leader:?Provides clear instructions to the followers so that they know what they are doing.Shapes their leadership style depending on the situation.Knows what their strengths are and makes the most out of them.Spends time with their followers and therefore listens and responds to their needs.A leader high in initiating structure would be characterized as doing which of the following?focusing on performance evaluationassigning group members to particular taskstreating all subordinates as equalhelping subordinates with personal problemsA transactional leader is one who:Is the ideal form of leadershipInspires people and has strong interactions with themDoes deals with people in order to get them to do things the leader wantsWorks for long-term goals of the organizationWhich of the following is not a characteristic of a transformational leader?communicates high expectationsinspires exertion of extra effort for goal achievementtreats all employees collectively as oneprovides vision and sense of missionThe graphic portrayal of a two-dimensional view of leadership style by Blake and Mouton is known as the:autocratic-democratic continuum.Transactional-transformational stylesmanagerial grid.None of the aboveWhat is the new form of leadership:Entrepreneurial LeadershipManagerial LeadershipCorporate LeadershipPhilanthropic LeadershipChapter 9Firms in small countries internalize at or soon after inception mostly because:Advance in international communication and information technologyTechnological change in production and transportation Integration of world’s financial marketLimited size of domestic marketsDifferent from International Business, International Entrepreneurship does not study:“the process of an entrepreneur conducting business activities across national boundaries”Well established multinational companies’ strategyEarly internationalised firms being born global firms and International new ventures Building international entrepreneurial capability for growth, firm needs (what is an incorrect answer?)Articulating a global purpose.Employ local employees onlyInstitutional Bridging: Preference and Capacity for cross-cultural CollaborationStrategic Alliances buildingInternational New Ventures are not:Local firmsMultinational traderGeographically focused start-upsGlobal start-upsIn recognizing the business opportunities, active search requiredImagination Experience and knowledge of the foundersThe ability to connect the dotsSuperior research skills and ability to scan the environmentInternational entrepreneurs are typically characterised as:Cross cultural background with global visionResilientAmbitious DeterminedFirms who operate in multiple markets and focus on specific regions where needs are specialised are:a. Global start-upsb. Export/Import start-upsc. Multinational tradersd. Geographically focused start-ups8. International Entrepreneurship study is a branch of International Business concerns a business organisation that from inception, seeks to derive significant competitive advantage from the use of resources and the sale outputs in multiple countries is branch of Strategic Management concerns firms who want to go abroad after being well established in the domestic markets9. Institutional Bridging is the ability to To bridge an institutional difference between countriesTo close the cultural gap between countriesto replicate a previously known business model in a new marketto translate business concepts and opportunities to adapt into different national contexts 10. Which is NOT a characteristic of an international entrepreneur?International experiences Innovative mindset, entrepreneurial orientation International reputationInternational marketing capabilities Chapter 10What percentage of UK businesses fail in their first year of operation:50%60%45%20%.What is an appropriate definition of business failure:End of a business venture due to not meeting financial needsFailing to live up to expectationsNot setting adequate business objectivesDiscovering a gap in the marketWhich two can be classed as voluntary forms of exit:Administration and SellSell and LiquidationBankruptcy and LiquidationAdministration and BankruptcyWhat is the main reason for business closure:Bankruptcy and LiquidationsFinancial failuresNo longer fulfilling owners objectivesSelling on the ventureBusiness failure can be seen as a positive concept due to:Losing lots of moneyGaining vital business experienceCreating trust with financial lendersEstablishing a physical baseA firm can fail due to:Tax avoidanceDeveloping brand equity Poor managerial skillsInfrequent internal communication 6. Which factor will increase the likelihood of business failure?a. Age of the entrepreneurb. Booming economyc. Larger firmsd. Being based in London7. Grief and financial strain cause an entrepreneur to: a. Increase their level of stress b. Accessibility to future capital c. Motivation d. Creative destruction 9. You can prevent business failure by: a. Employing a large team b. Ignoring international culture c. Increase your initial stock to save money in future d. Securing adequate capital 10. When receiving payment from customers it is important to: a. Provide a long credit rating b. Have good account receivables c. Allow customers to choose their repayments to maintain good customer service d. Focus on one demographicChapter 11Enterprise policy has become important but it does NOT:Generate unemploymentContribute to GDPIncrease competitionDrives innovation Entrepreneurship policy dominantly supports:EntrepreneursGrowing businessesMultinationalsBusiness AngelsWhat is ‘niche’ entrepreneurship policy?Added-on policies to existing policiesSpecific policies for targeted groupsReduces time and costs for those starting their own businessAssists in reducing barriers, supporting targeted groups and promotes entrepreneurship culture4. Which group is not classed as a ‘targeted’ group?WomenMenEthnic minoritiesDisabled5. Why should the government assist entrepreneurs and SMEs with enterprise policy?To make them richerHelp the poorEconomic growthIncrease equality6. Name an issue NOT faced by SMEs:Internal capacity and capabilityExternal environmentVision of the business ownerLack of government support 7. Why has enterprise policy become so important?It is the only policy which assists in economic growthIt is a simple policy which suits all economiesIt has revolutionised how entrepreneurs and SMEs do businessNone of the above8. Which of the following is an example of a strategic policy instrument?Bank loanMentoringVenture capitalLoan guarantee9. Why is entrepreneurship education important?Promotes enterprising skills and assists with the transition from education to workCan assist all graduates in setting up their own businessIt covers all areas of business managementNone of the above10. Which of the following is not a policy instrument used to support entrepreneurship:PromotingFinancingTargetingAll of the aboveChapter 121. Business Ethics is:The study of how to generate profitThe study of issues of right and wrong behaviour in businessThe study of criminal activity in businessThe study of how to avoid prosecution2. Stakeholders are:EmployeesInvestorsA group or individual affected by the activities of the businessAll of the above3. The “father” of stakeholder theory is:Milton FriedmanEdward FreemanMorgan FreemanRichard de George4. A business activity is considered to be ethically neutral whenIt causes no harmIt has no ethical contentIt conforms to the lawIt has attracted no complaints5. Ethics and the law overlap. Which of these statements apply?All ethical activities are captured by law and regulationAll laws and regulations reflect an ethical standardMany of a society’s fundamental values are captured in law and regulation.Ethical standards do not exist outside the law6. Business transactions are based on:Mutual trustRegulationFear of prosecutionMutual misinformation7. A company which commits to the Living Wage is:More ethical than its rivalsMaking a public commitment to its valuesMaking an advertising statementShaming its rivals8. Milton Friedman argued against CSR activities on the basis that:They cost too much moneyA company is not a human being and therefore cannot make moral decisionsThey don’t make profit for the companyThere are better ways to advertise.9. Theories of Business Ethics are regarded as:A branch of applied philosophyA branch of pure philosophyA method of ensuring compliance with the lawA purely academic study10. Company X is a successful global corporation. It might be argued that Company X has responsibilities beyond simply making profit because:Its activities have a major impact on the lives of millionsThe law requires that it do soIt can afford to be philanthropicIt is good public relations to do so. ................
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