Entrepreneurship 9th Edition by Hisrich – Test Bank

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INSTANT DOWNLOAD COMPLETE TEST BANK WITH ANSWERS

 

Entrepreneurship 9th Edition by Hisrich – Test Bank

 

Sample  Questions

 

Chapter 02 Entrepreneurial Intentions and Corporate Entrepreneurship Answer Key

True / False Questions

  1. Robert Mondavi Winery was the first Californian to produce and market premium wines that were expected to compete with European wines.
    TRUE

 

Difficulty: Medium

p.33

 


 

  1.  Corporate entrepreneurship is most strongly reflected in entrepreneurial activities as well as in top management orientations in organizations.
    TRUE

 

Difficulty: Easy

p.37

 

  1. Corporate venturing consists of creating something new of value either by redefining the company’s current products or services, developing new markets, or forming more formally autonomous or semiautonomous units or firms.
    TRUE

 

Difficulty: Hard

p.37

 

  1. Traditionally managed firms commitment to opportunity is revolutionary with long duration.

FALSE

 

Difficulty: Medium

  1. 38

 

 

  1. Entrepreneurially managed firm structure is usually flat with multiple informal networks.

TRUE

 

Difficulty: Medium

  1. 38

 

 

  1. Entrepreneurially run firms are driven by controlled resources whereas traditionally managed firms are driven by perception of opportunity.

FALSE

 

Difficulty: Medium

p.38

  1. Entrepreneurs focus on how to minimize resources needed whereas traditional firms focus on accumulating resources.
    TRUE

Difficulty: Medium

p.39

  1. The typical corporate culture has a climate and a reward system that favor activist decision making.
    FALSE

 

Difficulty: Medium

p.40-41

 

  1. In encouraging a culture for corporate entrepreneurship, using older, proven, technology is recommended in order to increase stability in the organization.

FALSE

 

Difficulty: Easy

p.41

  1. Most managers in a corporation are capable of being successful corporate entrepreneurs with the correct training.
    FALSE

 

Difficulty: Easy

p.44

  1. In an encouraging climate for corporate entrepreneurship, rewards should be based on the attainment of established performance goals.
    TRUE

 

Difficulty: Easy

p.44

  1. It is important for an entrepreneur to understand all aspects of the environment. Part of this ability is reflected in the individual’s level of creativity, which generally increases with age and education in most individuals.
    FALSE

 

Difficulty: Hard

p.45

  1. The corporate entrepreneur to have the ability to encourage teamwork and use a multidisciplined approach, which violates organizational practices and structures taught in most business schools.
    TRUE

 

Difficulty: Medium

p.46

  1. For an organization with a traditional environment, it is best to facilitate an external process to establish an entrepreneurial environment.
    TRUE

 

Difficulty: Medium

p.46

  1. An organization that wants to become more entrepreneurial must learn to be more productive with fewer resources.
    TRUE

 

Difficulty: Easy

p.47

  1. Entrepreneurial activities tend to immediately affect the bottom line, and hence are seldom overlooked and receive extensive funding and support.
    FALSE

 

Difficulty: Medium

p.47

  1. Corporate ventures are totally independent units, hence the equity portion of the compensation is particularly difficult to handle.
    FALSE

 

Difficulty: Medium

p.47

  1. One study found that new ventures started within a corporation performed better than those started independently by entrepreneurs.
    FALSE

 

Difficulty: Easy

p.47-48

 

  1. Generally, independent, venture-capital-based start-ups by entrepreneurs tend to outperform corporate start-ups significantly.

TRUE

 

Difficulty: Medium

p.48

  1.  An entrepreneur with loss-orientation would talk about the business-failure with a close friend or relative.
    TRUE

 

Difficulty: Easy

p.50

  1. An entrepreneur’s recovery from grief is detrimental to society.
    FALSE

 

Difficulty: Med

p.50

 

 

 

 

 

 

 

Multiple Choice Questions

  1. Robert Mondavi came up with all of the following process innovations except:
    A.steel fermentation tanks
    B. vacuum corking of bottles
    C. labels that indicated when the wine was cold
    D. aging wines in new French oak barrels

 

Difficulty: Hard

p.33

 

 

 

 

  1. In 1994 Robert Mondavi came up with:
  2. a capsule-free, flange-top bottle design.
  3. a new flavor of wine cooler that revolutionized the industry.
  4. a new brand of liquor with a unique marketing campaign.
  5. a way to vacuum cork bottles.

 

Difficulty: Hard

  1. 35
  2. Corporate entrepreneurship is best described as:
    A.the hiring of former Entrepreneurs.
    B. entrepreneurial action within an organization.
    C. the process of buying acquiring entrepreneurial firms.
    D. the process of hiring consultants to teach a firm how to be more creative.

 

Difficulty: Medium

p.36

  1. _____ includes initiative and risk taking, as well as competitive aggressiveness and boldness.
    A. New business venturing
    B. Self-renewal
    C. Innovativeness
    D. Proactiveness

 

Difficulty: Easy

p.37

  1. New product development falls under which of the four major components of corporate entrepreneurship?
    A.New business venturing
    B. Self-renewal
    C. Innovativeness
    D. Proactiveness

 

Difficulty: Medium

p.37

  1. In regards to the differences between the entrepreneurial and administrative focuses which of the following is correct?
    A.Entrepreneurs focus on slow steady growth and managers focus on rapid growth
    B. Entrepreneurs rent or sporadically use resources; managers like to own resources
    C. Entrepreneurs are driven by controlled resources; managers by opportunity
    D. Entrepreneurs tend to use a hierarchical management structure; managers use a more fluid, flat approach

 

Difficulty: Medium

p.38

 

  1. Having an entrepreneurial orientation towards the control of resources means:
    A.that one focuses on accessing others’ resources.
    B. that one focuses on purchasing resources.
    C. that one has a belief that resources are unlimited and therefore easy to obtain.
    D. that one focuses on using a hierarchy management structure in allocating resources

 

Difficulty: Medium

p.39

  1. Entrepreneurial culture and growth orientation consists of all of the following except:
    A.encouraging employees to generate ideas.
    B. focusing on opportunities.
    C. the desire to grow at a slow and controlled pace.
    D. being creative.

 

Difficulty: Easy

p.41

 

  1. All these are characteristics of an entrepreneurial environment except:
    A.there are short term horizons.
    B. new ideas are encouraged.
    C. the organization operates on frontiers of technology.
    D. it uses a multidiscipline teamwork approach.

 

Difficulty: Medium

p.43

  1. Which of the following is true about corporate entrepreneurship?
    A.Equity in a new venture should not be used as a reward due to its uncertain value
    B. A company must be willing to invest money without a guarantee of a return in the short term
    C. Teams should be segmented by department
    D. Top management should not be involved in the process

 

Difficulty: Medium

p.43-44

 

 

  1. Which is NOT a leadership characteristic of a corporate entrepreneur according to the text?
  2. Flexibility and vision
  3. Persistence
  4. Encourages teamwork
  5. Encourages colleagues to follow hierarchy

 

Difficulty: Medium

p.45

 

  1. The first step in establishing corporate entrepreneurship in an organization is:
    A.finding mid level managers to champion ideas
    B. developing ways to get closer to customers
    C. learn to be more productive with fewer resources
    D. securing commitment from top management

 

Difficulty: Medium

p.46

 

  1. A sufficient time for top management to be committed to corporate entrepreneurship is:
  2. at least one year.
  3. at least two years.
  4. at least three years.
  5. at least ten years.

 

Difficulty: Hard

p.46

 

  1. Which of the following would NOT occur in the second stage of establishing corporate entrepreneurship in an organization?
  2. Ideas that top management is interested in supporting are identified.
  3. Identify an evaluation system for involved employees.
  4. The amount of risk money available is specified.
  5. Overall program expectations and target results of each corporate venture are established.

 

Difficulty: Medium

p.46

 

  1. When establishing corporate entrepreneurship in an organization rewards should:
    A.be tied to the department in which the idea originated
    B. be tied to the parent company’s stock performance
    C. be tied to the performance of the entrepreneurial unit created from the idea
    D. not be changed from whatever current system is being used so that risk is encouraged

 

Difficulty: Medium

p.47

  1. Which of the following is true?
    A.Independent, venture-capital-based start-ups by entrepreneurs tend to outperform corporate start-ups significantly.
    B. New ventures started within a corporation performed better than those started independently by entrepreneurs.
    C. Independent entrepreneurs find difficulty in maintaining a long-term commitment.
    D. Corporate ventures become profitable twice as fast as independent ventures.

 

Difficulty: Medium

p.47-48

  1. Which company, discussed in our text as an example of corporate entrepreneurship, created a high quality monitor that was used by NASA?
    A.HP
    B. IBM
    C. APPLE
    D. TOSHIBA

 

Difficulty: Medium

p.49

 

  1. Which company, discussed in our text as an example of corporate entrepreneurship, created the independent business unit concept?
  2. HP
    B.IBM
    C. APPLE
    D. TOSHIBA

 

Difficulty: Medium

p.49

 

 

  1. When would an entrepreneur be pronounced to have recovered from the grief of a lost business?
    A. On the availability of equally challenging entrepreneurial opportunities.
    B. Upon a simultaneous engagement in an analysis of the failed business.
    C. On having evaluated and absorbed the lessons learnt from the failed business.
    D. Thoughts about the events surrounding, and leading up to the loss of the business, no longer generate a negative emotional response.

 

Difficulty: Med

p.50

  1. In the loss-orientation process of grief recovery, when are painful memories likely to dominate most?
    A. In the early phase of grief.
    B. In the medial stage of grief.
    C. In the later stage of grief.
    D. Each time a related negative thought comes to mind.

 

Difficulty: Easy

p.50

  1. Why is loss-orientation physically and mentally exhausting?
    A. Since it involves psychological counseling.
    B. Since it involves confrontation.
    C. Since it advocates change of lifestyle.
    D. Since it takes a long time to recover from grief.

 

Difficulty: Med

p.50

  1. Why does restoration-orientation have adverse effects on an individual’s health?
    A. Since it involves suppression by mental effort.
    B. Since it prescribes physical diversions like a hobby.
    C. Since it involves regular physical exertion via exercise.
    D. Since it involves mental catharsis to bring out the grief.

 

Difficulty: Med

p.50

  1. Which of the following is most effective in grief-recovery?
    A. Restoration-orientation
    B. Loss-orientation
    C. Dual process
    D. Grief recovery process

 

Difficulty: Easy

p.50

 

Essay Questions

  1. Identify and briefly describe the 4 major parts of corporate entrepreneurship.

    1. New business venturing: These entrepreneurial activities consist of creating something new of value either by redefining the company’s current products or services, developing new markets, or forming more formally autonomous or semiautonomous units or firms.
    2. Organizational innovativeness refers to product and service innovation. It includes new product development, product improvements, and new production methods and procedures.
    3. Self-renewal is the transformation of an organization through the renewal of the key ideas on which it is built. Includes a redefinition of the business concept, reorganization, and the introduction of system wide changes to increase innovation.
    4. Proactiveness includes initiative and risk taking, as well as competitive aggressiveness and boldness, which are particularly reflected in the orientations and activities of top management. A proactive organization tends to take risks by conducting experiments; it also takes initiative and is bold and aggressive in pursuing opportunities. Organizations with this proactive spirit attempt to lead rather than follow competitors in such key business areas as the introduction of new products or services, operating technologies, and administrative techniques.

Answer will vary.

 

Difficulty: Medium

p.36-37

  1. Discuss three major ways in which managerial and entrepreneurial decision making differs.

    Eight areas of difference students can choose from:
    1. strategic orientation
    2. commitment to opportunity
    3. commitment of resources
    4. control of resources
    5. management structure
    6. reward philosophy
    7. growth orientation
    8. entrepreneurial culture

    Basic differences in each dimension:

     

 

Source: This table is taken from T. Brown, P. Davidsson, and J. Wiklund, “An Operationalization of Stevenson’s Conceptualization of Entrepreneurship as Opportunity-Based Firm Behavior,” Strategic Management Journal 22 (2001), p. 955.

Answer will vary.

Difficulty: Medium

p.37-41

 

 

  1. Identify 5 of the 12 characteristics of an entrepreneurial environment.

 

TABLE 2.3 Characteristics of an Entrepreneurial Environment

  • Organization operates on frontiers of technology
  • New ideas encouraged
  • Trial and error encouraged
  • Failures allowed
  • No opportunity parameters
  • Resources available and accessible
  • Multidiscipline teamwork approach
  • Long time horizon
  • Volunteer program
  • Appropriate reward system
  • Sponsors and champions available
  • Support of top management

 

Students can choose 5 of the 12 from table 2.3 above.

 

Difficulty: Medium

  1. 43

 

  1. Identify the seven leadership characteristics of a corporate entrepreneur.

 

TABLE 2.4 Leadership Characteristics of a Corporate Entrepreneur

  • Understands the environment
  • Is visionary and flexible
  • Creates management options
  • Encourages teamwork
  • Encourages open discussion
  • Builds a coalition of supporters
  • Persists

 

Students should summarize table 2.4 above. Instructor could ask less characteristics for a less difficult question.

 

Difficulty: Hard

p.45

 

 

  1. Explain the dual process model of coping with negative emotions.

 

Student should define process as shifting between a loss orientation and a

restoration orientation. The student should also explain the two types of loss:

 

loss orientation An approach to negative emotions that involves working through, and processing, some aspect of the loss experience and, as a result of this process, breaking emotional bonds to the object lost.

restoration orientation An approach to negative emotions based on both avoidance and a proactiveness toward secondary sources of stress arising from a major loss.

 

The entrepreneur can benefit from both orientations while minimizing the costs of maintaining either for too long.

 

Difficulty: Medium

p.50

 

 

  1. Explain the benefits, or practical implications, of using the dual process model of coping with negative emotions.

 

  1. Helps to reduce feelings of shame and embarrassment.
  2. Realizing that psychological and physiological outcomes caused by the feelings of loss are “symptoms” can reduce secondary sources of stress and may also assist with the choice of treatment.
  3. Understanding that there is a process can provide entreprenuers some comfort that their current feelings of loss, sadness, and helplessness will eventually diminish.
  4. The recovery and learning process can be enhanced by some degree of oscillation between

a loss orientation and a restoration orientation

  1. Recovery from loss offers an opportunity to increase one’s knowledge of entrepreneurship. This provides benefits to the individual and society.

 

Difficulty: Medium

p.50

 

Chapter 04 Creativity and the Business Idea Answer Key
 

True / False Questions

  1. Pierre Omidyar came up with the idea for eBay.

TRUE

 

Difficulty: Easy

p.85

  1. Trends often provide one of the greatest opportunities for starting a new venture.
    TRUE

Difficulty: Medium

p.88

 


  1. Clean energy and organic foods are current market trends.

TRUE

 

Difficulty: Medium

p.88

  1. Members of the distribution channel are usually good sources of ideas for new products.
    TRUE

Difficulty: Medium
p.90

  1. The files of the U.S. Patent Office are kept confidential and entrepreneurs cannot study their contents.
    FALSE

Difficulty: Medium
p.90-91

 

 

  1. The largest source of new ideas is the U.S. Patent Office.
    FALSE

Difficulty: Easy

p.92

 

  1. Focus groups consist of 15 to 25 participants who are asked specific objective functions.
    FALSE

Difficulty: Hard
p.92

  1. The focus group is an excellent method for initially screening ideas and concepts.
    TRUE

Difficulty: Medium
p.92

 

 

  1. Focus groups have been used for a variety of purposes since the 1920’s.

FALSE

 

Difficulty: Medium

p.92

 

  1. 10.The drawback with problem inventory analysis is that it cannot be used to test a new product idea.
    FALSE

Difficulty: Hard
p.93

  1. Like the focus group, problem inventory analysis focuses on specific problems in a general product category.
    FALSE

Difficulty: Hard
p.93

 

  1. Brainwriting is a written form of brainstorming.

TRUE

 

Difficulty: Easy

p.93

  1. Creativity tends to decrease with age.
    TRUE

Difficulty: Medium
p.94

 

  1. Brainstorming is an unstructured process used for generating possible ideas about a problem within a limited time frame through the spontaneous contributions of participants.
    TRUE

Difficulty: Easy
p.94-95

  1. In reverse brainstorming the focus is on all the things that are right about an idea.
    FALSE

Difficulty: Medium
p.95 

  1. The Gordon method, like most other methods, begins with group members not knowing the exact nature of the problem.
    FALSE

Difficulty: Medium
p.95

 

  1. In the checklist method, a new idea is developed through a list of related issues or suggestions.

TRUE

 

Difficulty: Easy

p.95

 

  1. Developing a new idea through a chain of word associations is known as the checklist method.

FALSE

 

Difficulty: Easy

p.97

  1. Forced relationships is a method of forcing confrontations in focus groups.
    FALSE

Difficulty: Medium
p.97

  1. The collective notebook method involves members recording their ideas at least once a day for about a week.
    TRUE

Difficulty: Easy
p.97

 

  1. Attribute listing is an idea-finding technique that requires the entrepreneur to list the attributes of an item or problem and then look at each from a variety of viewpoints.
    TRUE

Difficulty: Medium
p.98

  1. In parameter analysis a new idea is developed through a list of related issues or suggestions.
    FALSE

Difficulty: Medium
p.98 

  1. Using the big-dream approach, a new idea is developed through a list of related issues or suggestions.
    FALSE

Difficulty: Hard
p.98

  1. The big-dream approach requires the entrepreneur to dream about the problem and its solution, thinking big.
    TRUE

Difficulty: Easy
p.98

  1. Creative synthesis is closely connected to the technique of parameter analysis.
    TRUE

Difficulty: Hard
p.98-99 

 

  1. Nanotechnology would be classified as a breakthrough technology.
    TRUE

Difficulty: Easy
p.99 

  1. The product Spanx is an example of an ordinary innovation.
    TRUE

Difficulty: Medium

p.100

  1. New products may be classified from the viewpoint of either the consumer or the firm.
    TRUE

Difficulty: Medium
p.101

  1. Discontinuous innovations have the least disrupting influence on established consumption patterns.
    FALSE

Difficulty: Medium
p.101-102

  1. When a firm classifies a new product the two key factors used are market and technology newness.
    TRUE

Difficulty: Medium
p.102 

 

  1. The entrepreneur’s ability to recognize a business opportunity is a result of his or her knowledge and experience.
    TRUE

Difficulty: Medium

p.103

  1. When evaluating new product development, the criteria should be exclusive and subjective.
    FALSE

Difficulty: Medium
p.103

  1. The product life cycle consists of five main stages.
    FALSE

Difficulty: Medium
p.104

  1. One evaluation method successfully used in the concept stage is the systematic market evaluation checklist.
    FALSE

Difficulty: Medium

p.106/109

 

  1. In the concept stage, the refined idea is tested to determine consumer acceptance.

TRUE

 

Difficulty: Medium

p.106

  1. In the test market stage of product planning, the refined product idea is tested to determine customer acceptance.
    FALSE

Difficulty: Medium

p.109

 

  1. Only the test marketing phase of product planning provides actual sales results to judge the product’s customer appeal.
    TRUE

 

Difficulty: Medium
p.109 

  1. In the product development stage, consumer reaction to the physical product/service is determined.
    TRUE

Difficulty: Medium
p.109

  1. Total U.S. e-commerce spending grew by 12% from 2010-2011.
    TRUE

 Difficulty: Medium

p.109

  1. The entrepreneur should always design and build his own webpage to maintain strategic control.
    FALSE

 

Difficulty: Medium
p.110

 

  1. An online company’s front-end operations involve integration of customer orders with distribution channels.
    FALSE

Difficulty: Medium
p.110

  1. Every website should have search capabilities.
    TRUE

Difficulty: Easy
p.111

  1. Using electronic databases to track customer information violates federal laws regarding individual privacy.
    FALSE

Difficulty: Hard

p.112

 

Multiple Choice Questions

  1. Trends for the next decade include all of the following except:
    A.Green products
    B. New age music
    C. Clean energy
    D. Health Maintenance

Difficulty: Easy
p.88

  1. Which of the following statements is true?
    A.Customers form the largest source of new ideas for entrepreneurs.
    B. While members of the distribution channel may be willing to provide new ideas for entrepreneurs, they may not help market them.
    C. The Federal Government is not a source of new ideas since the patent information they collect is confidential.
    D. Potential entreprenuers should establish a formal method for monitoring and evaluating competitive products and services on the market.

 

Difficulty: Medium

  1. 90-92

 

  1. Patents filed with the U.S. Patent Office:
    A.are not disclosed to the public.
    B. are the property of the U.S. Government.
    C. frequently suggest other new products.
    D. are only accessible to public limited companies.

Difficulty: Medium
p.90-91

  1. The Occupational Safety and Health Act (OSHA) mandated that first-aid kits be available in business establishments employing more than three people. A newly formed company was successful in developing first-aid kits that allowed companies to comply with the standards of the act. This is an example of:
    A.distribution channels as an excellent source for new ideas.
    B. existing products and services as a source for new ideas.
    C. potential consumers as a source for new ideas.
    D. government regulations as a source for new product ideas.

Difficulty: Medium
p.92 

48.The largest source of new product ideas is:
A. the U.S. Patent Office.
B. the entrepreneur’s research and development.
C. customers.
D. the federal government.

Difficulty: Medium
p.92 

  1. Focus groups use which of the following methods?
    A.A moderator leads the group in an open, in-depth discussion.
    B. A moderator asks each individual in the group questions, interview style.
    C. Each participant fills out a questionnaire, followed by individual exit interviews.
    D. Each participant obtains new ideas and solutions by focusing on problems.

Difficulty: Hard
p.92

  1. Brainstorming groups should:
    A.contain an expert in the field to be discussed.
    B. be serious and work-oriented.
    C. try to generate as many ideas as possible.
    D. encourage criticism of ideas from other participants in the group.

Difficulty: Medium
p.92-93

  1. _____ is not desirable when brainstorming is in process.
    A. “Freewheeling”
    B. Idea combination and improvement
    C. Generating a large quantity of ideas
    D. Criticism

Difficulty: Medium
p.93 

  1. In this method, instead of generating new ideas themselves, consumers are provided with a list of problems in a general product category. What method is the author referring to here?
    A.Reverse brainstorming
    B. Problem inventory analysis
    C. Brainstorming
    D. Focus groups

Difficulty: Medium
p.93 

  1. Creativity declines with
    A.training and tradition.
    B. education and work experience.
    C. age, education and lack of use.
    D. mental health and work experience.

Difficulty: Medium
p.94

  1. Probably the most well known and widely used technique for creative problem solving is:
    A.brainstorming.
    B. focus groups.
    C. forced relationships.
    D. scientific method.

Difficulty: Medium
p.94

  1. Reverse brainstorming is much like brainstorming except that:
    A.criticism is not allowed.
    B. the technique is based on finding solutions.
    C. the group need not be careful to maintain good morale.
    D. the process usually involves identification of everything wrong with an idea.

Difficulty: Medium
p.95

 

  1. Which of the following problem-solving techniques begins with group members not knowing the exact nature of the problem?
    A.Parameter analysis
    B. Matrix charting
    C. The Gordon method
    D. Free association

Difficulty: Hard
p.95

  1. In the ________ method a new idea is developed through a list of related issues or suggestions.
    A.Gordon
    B. checklist
    C. collective notebook
    D. matrix charting

Difficulty: Hard
p.95

  1. In the ________ method, a word is written down, then another, creating a chain of ideas.
    A.reverse brainstorming
    B. matrix charting
    C. heuristic
    D. free association

Difficulty: Medium
p.97 

  1. Which of the following creative methods involves having participants write down their ideas several times a day?
    A.Collective notebook method
    B. Parameter analysis
    C. Brainstorming
    D. Forced relationship

Difficulty: Medium
p.97 

  1. This problem-solving method requires the entrepreneur to list the properties of an item or problem and then look at each from a variety of viewpoints.
    A.Value analysis
    B. Attribute listing
    C. Brainwriting
    D. Big-dream approach

Difficulty: Medium
p.98

 

  1. This problem-solving method involves developing new ideas by thinking without constraints.
    A.Value analysis
    B. Attribute listing
    C. Big-dream approach
    D. Brainwriting

Difficulty: Medium
p.98

  1. Creative synthesis is an important aspect of the _________ method of creative problem solving.
    A.brainwriting
    B. forced association
    C. attribute listing
    D. parameter analysis

Difficulty: Hard
p.98-99

  1. Parameter analysis consists of two main aspects which are:
    A.creative synthesis and parameter identification.
    B. breakthrough innovation and forced association.
    C. attribute listing and parameter identification.
    D. parameter variation and verification.

Difficulty: Medium
p.98

 

  1. What type of innovation is illustrated by the ideas of the airplane and penicillin?
  2. ordinary innovation
  3. continuous innovation
  4. technological innovation
  5. breakthrough innovation

 

Difficulty: Medium

p.99

  1. Which of the following was not discussed in the text as a breakthrough innovation?
    A.The airplane
    B. The Internet
    C. Spanx
    D. Penicillin

Difficulty: Medium
p.99

 

  1. Which of the following is defined as having some disruptive influence on established consumption patterns?
    A.Continuous Innovations
    B. Dynamically Continuous Innovations
    C. Discontinuous Innovations
    D. Breakthrough Innovations

Difficulty: Hard
p.102

  1. Continuous innovations are described as:
    A.having the least disrupting influence on established consumption patterns.
    B. having some disruptive influence on established consumption patterns.
    C. having no disruptive influence on established consumption patterns.
    D. having to establish new consumption patterns due to the creation of a previously unknown product.

Difficulty: Hard
p.102 

  1. The opportunity recognition process contains all of the following except:
    A.work experience
    B. reformation
    C. entrepreneurial alertness
    D. networks

Difficulty: Hard
p.103

  1. The _______ is defined as the stages each product goes through from introduction to decline.
    A.entrepreneurial decision making process
    B. test marketing process
    C. product planning and development process
    D. product life cycle

Difficulty: Medium
p.104

 

 

  1. How many stages are in the product planning and development process?
  2. Two
  3. Three
  4. Four
  5. Five

 

Difficulty: Medium

p.104

 

  1. In what stage would you use the systematic market evaluation checklist?
    A.Idea stage
    B. Concept stage
    C. Product development stage
    D. Commercialization stage

Difficulty: Hard
p.106

  1. In the idea stage of the product planning and development process:
    A.conversational interviewing is used.
    B.product samples are given out.
    C. systematic market evaluation is used.
    D. multiple brand comparison is used.

Difficulty: Hard
p.106 

  1. In what stage would it be most beneficial to use conversational interviews?
    A.Idea stage
    B. Concept stage
    C. Product development stage
    D. Commercialization stage

Difficulty: Medium
p.106-108 

  1. In which stage of the product planning and development process would it be appropriate to give product samples to a panel of potential customers?
    A.Idea stage
    B.Concept stage
    C. Product development stage
    D. Commercialization stage

Difficulty: Hard
p.109

  1. The stage in the product planning and development process in which actual sales results are available is the:
    A.idea stage.
    B. concept stage.
    C. product development stage.
    D. test marketing stage.

Difficulty: Easy
p.109

 

  1. Which area of e-commerce experienced the largest increase in sales from 2010-2011?
    A.Digital content and subscriptions
    B. Events tickets
    C. Consumer Electronics
    D. Jewelry and watches

Difficulty: Medium

p.109

  1. Total internet spending was roughly _____ billion in 2011.
    A.150
    B. 200
    C. 250
    D. 300

Difficulty: Hard

p.109

  1. What area of e-commerce experienced the third largest increase in sales, 17%, from 2010-2011?
  2. Digital content and subscriptions
    B. Events tickets
    C. Consumer Electronics
    D.Jewelry and watches

 

Difficulty: Hard

p.109

 

  1. E-commerce in the U.S. grew by ____ between 2010 and 2011.
  2. 10%
  3. 11%
  4. 12%
  5. 13%

 

Difficulty: Hard

p.109

  1. Orders and sensitive information should be transferred:
    A.through credit card companies.
    B. by banner ads.
    C. over secure servers.
    D. through open telephone lines.

Difficulty: Medium

p.111

 

 

  1. What percentage of small businesses have a website?
  2. 60%
  3. 70%
  4. 80%
  5. 90%

 

Difficulty: Medium

p.110

 

  1. Which of the companies below were not listed by the book as offering free web hosting?
  2. Zymic
  3. Amazon
  4. 000Webhost
  5. Webs

 

Difficulty: Hard

p.112

 

 

Short Answer/Essay Questions

  1. Discuss both the Gordon method and Forced Relationship creative problem solving techniques.

    A. Gordon method – unlike many other creative problem-solving techniques, begins with group members not knowing the exact nature of the problem. This ensures that the solution is not clouded by preconceived ideas and behavioral patterns. The entrepreneur starts by mentioning a general concept associated with the problem. The group responds by expressing a number of ideas. Then a concept is developed, followed by related concepts, through guidance by the entrepreneur. The actual problem is then revealed later, enabling the group to make suggestions for implementation or refinement of the final solution.
    B. Forced relationships – is the process of forcing relationships among some product combinations. It asks questions about objects or ideas in an effort to develop a new idea. The new combination and concept is developed through a five-step process:
    1. Isolate the elements of the problem.
    2. Find the relationships between these elements.
    3. Record the relationships in an orderly form.
    4. Analyze the resulting relationships to find ideas or patterns.
    5. Develop new ideas from these patterns.

Answer will vary.

Difficulty: Medium

p.95

 

  1. Discuss brainstorming, its definitions and tips for having a successful brainstorming session.

 

Brainstorming can generate ideas about a problem in a limited time frame through the spontaneous contributions of participations.

Tips:

Use problem statement that is not too broad or specific

No member should be an expert

Use 8-12 participants

All ideas should be recorded

No criticizing or evaluating during the session

 

Difficulty: Medium/Hard depending upon detail required by instructor

p.95

 

 

  1. Give 5 examples of questions that could be asked using the checklist method.

 

Answer could include any of the following:

  • Put to other uses? New ways to use as-is? Other uses if modified?
  • Adapt? What else is like this? What other ideas does this suggest? Does past offer

parallel? What could I copy? Whom could I emulate?

  • Modify? New twist? Change meaning, color, motion, odor, form, shape? Other

changes?

  • Magnify? What to add? More time? Greater frequency? Stronger? Larger? Thicker?

Extra value? Plus ingredient? Duplicate? Multiply? Exaggerate?

  • Minify? What substitute? Smaller? Condensed? Miniature? Lower? Shorter? Lighter?

Omit? Streamline? Split up? Understated?

  • Substitute? Who else instead? What else instead? Other ingredient? Other material?

Other process? Other power? Other place? Other approach? Other tone of voice?

  • Rearrange? Interchange components? Other pattern? Other layout? Other sequence?

Transpose cause and effect? Change track? Change schedule?

  • Reverse? Transpose positive and negative? How about opposites? Turn it backward?

Turn it upside down? Reverse roles? Change shoes? Turn tables? Turn other cheek?

  • Combine? How about a blend, an alloy, an assortment, an ensemble? Combine units?

Combine purposes? Combine appeals? Combine ideas?

 

Difficulty: Medium (instructor could make more difficulty by asking for more questions)

p.95

  1. Identify and describe the three majors types of innovation.

    A. Breakthrough – fewest in number, protection is important via patents, trademarks, copyrights, examples given by the text include: penicillin, the steam engine, the computer, the airplane, the automobile, the Internet, and nanotechnology.
    B. Technological – occurs more frequently than breakthrough innovation and in general is not at the same level of scientific discovery and advancement. These are very meaningful innovations, as they do offer advancements in the product/market area. As such, they usually need to be protected. Such innovations as the personal computer, the flip watch for containing pictures, voice and text messaging, and the jet airplane are examples of technological innovations.
    C. Ordinary – occurs most frequently, these more numerous innovations usually extend a technological innovation into a better product or service or one that has a different—usually better—market appeal. These innovations usually come from market analysis and pull, not technology push. In other words, the market has a stronger effect on the innovation (market pull) than the technology (technology push). One ordinary innovation (Spanx) was developed by Sara Blakely, who wanted to get rid of unsightly panty lines. Examples used Spanx and gloves/slippers for yoga.

Answer will vary.

 

Difficulty: Medium

p.99-100

  1. List, in order, the stages of the product planning and development process.
  2. Idea
  3. Concept
  4. Product Development
  5. Test marketing stage
  6. Commercialization stage

 

Difficulty: Easy, to increase difficulty ask students to describe each stage

p.104

 

 

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