Description

Chapter: 7 -Problem: 1 >> Identify the three main pathways to entering business for a prospective entrepreneur.
Answer Preview: The three most common meth…

, Chapter: 2 -Problem: 1 >> What is entrepreneurial cognition, and how does it impact the mind-set of entrepreneurs? How does metacognition come into play here?
Answer Preview: In attempting to better understand the driving forces within entrepreneurs, we can gain a more compl…

, Chapter: 4 -Problem: 15 >> When entering the international marketplace, entrepreneurs should follow what five specific steps?
Answer Preview: The five steps are import…

, Chapter: 10 -Problem: 9 >> In your own words, what is market segmentation? What role do demographic and benefit variables play in the segmentation process?
Answer Preview: Market segmentation is identifying the factors that …

, Chapter: 2 -Problem: 9 >> Ethics must be based more on a process than on a static code. What does this statement mean? Do you agree? Why or why not?
Answer Preview: The statement means ethics must be based on societ…

, Chapter: 1 -Problem: 12 >> Define a gazelle, and discuss its importance.
Answer Preview: A gazelle is a fast growing firm with at least 20 percen…

, Chapter: 6 -Problem: 1 >> During the past four months, George Vazquez has been putting together his plan for a new venture. George wants to open a pizzeria near the local university. The area has three pizza enterprises, but George is convinced that demand is sufficient to support a fourth.The major competitor is a large national franchise unit that—in addition to its regular foodservice menu of pizzas, salads, soft drinks
Answer Preview: 1. Yes, the investor is right. George is not offering any spec…

, Chapter: 13 -Problem: 15 >> Explain the concept of entrepreneurial leadership.
Answer Preview: Entrepreneurial leadership can be defined as the en…

, Chapter: 2 -Problem: 8 >> Describe factors associated with the entrepreneurial ego.
Answer Preview: The factors associated with the en…

, Chapter: 12 -Problem: 11 >> What are the five elements included in the marketing segment of a business plan?
Answer Preview: Market niche and mark…

, Chapter: 6 -Problem: 12 >> Describe the contemporary methods of new venture evaluation: design methodology and the Lean Start-Up methodology.
Answer Preview: Mirroring the general design approach of companies like IDEO that tackle problems in industries rang…

, Chapter: 11 -Problem: 13 >> What is ratio analysis? How is horizontal analysis different from vertical analysis?
Answer Preview: Financial statements report on a firms position at a point in time and on its operations over some p…

, Chapter: 10 -Problem: 2 >> Following his graduation from an excellent university with a degree in music and entrepreneurship, Brian Wright was eager to launch a music-related business. Brian always enjoyed working with new technologies as well as listening to music. Because of the proliferation of social media sites on the Internet and the advances in mobile technologies with smartphones, he believed that developing an “app
Answer Preview: 1 Not really. A lot of Brians assumptions are just that things he bel…

, Chapter: 8 -Problem: 2 >> The Friendly Market is a large supermarket located in a city in the Southwest. “Friendly’s,” as it is popularly known, has more sales per square foot than any of its competitors because it lives up to its name. The personnel go out of their way to be friendly and helpful. If someone asks for a particular brand-name item and the store does not carry it, the product will be ordered. If enough custom
Answer Preview: The owner of Friendlys seems to take a lot of pride in the way his store works and seems to have put …

, Chapter: 15 -Problem: 2 >> In the past, most people who wanted to get their foreign sports cars fixed had to turn to the dealer from which they had purchased the car. In recent years, however, auto repair shops that specialize in foreign sports cars have become popular in some areas of the country. When Jack Schultz started his company 10 years ago, he was lucky if he had two cars a day to work on. Today, Jack has 15 people
Answer Preview: Answer 1: Four characteristics we would expect to find in a successful manager of this type of venture are as below Customer management Attitude : Cus…

, Chapter: 8 -Problem: 1 >> When Joyce and Phil Abrams opened their bookstore one year ago, they estimated it would take them six months to break even. Because they had gone into the venture with enough capital to keep them afloat for nine months, they were sure they would need no outside financing. However, sales have been slower than anticipated, and most of their funds now have been used to purchase inventory or meet mont
Answer Preview: 1. A commercial banker would likely be willing to lend money to the Abram ses if they can provide ev…

, Chapter: 6 -Problem: 13 >> Explain the importance of establishing the legitimacy of a new venture.
Answer Preview: Legitimacy is a resource that enables new …

, Chapter: 3 -Problem: 2 >> What are two reasons that such a strong desire to develop corporate entrepreneurs has arisen in recent years?
Answer Preview: A highly competitive market has risen. …

, Chapter: 3 -Problem: 1 >> When Southwest Airlines first taxied onto the runway of Dallas’s Love Field in 1971, industry gurus predicted it would be a short trip to bankruptcy for the Texas-based airline. But the first short-haul, low-fare, high-frequency, point-to-point carrier took a unique idea and made it fly. Today, Southwest Airlines is the most profitable commercial airline in the world based on domestic passengers c
Answer Preview: (1) Southwest Airlines provides the freedom and encouragement for people to develop new ideas. Herb …

, Chapter: 8 -Problem: 10 >> Some entrepreneurs do not like to seek new-venture financing because they feel that venture capitalists are greedy. In your opinion, is this true? Do these capitalists want too much?
Answer Preview: No. When venture capital…

, Chapter: 13 -Problem: 2 >> Clayton Company has grown 115 percent in the past year and 600-plus percent in the past three years. A large portion of this growth is attributable to Jan Clayton’s philosophy of hiring the best possible computer systems people and giving them the freedom they need to do their jobs.Most of Jan’s personnel operate as part of work teams that analyze, design, and implement computer systems for client
Answer Preview: 1. Life cycle is the progression of the business and its phases over time. Jan's firm is currently …

, Chapter: 15 -Problem: 7 >> What are three of the contextual aspects that must be considered in an effective succession plan?
Answer Preview: Three of the contextual aspects …

, Chapter: 8 -Problem: 7 >> If a person inherited $100,000 and decided to buy stock in a new venture through a private placement, how would Regulation D affect this investor?
Answer Preview: There are no special …

, Chapter: 6 -Problem: 1 >> Explain the challenges involved in new-venture development.
Answer Preview: The main challenges involve the survival …

, Chapter: 6 -Problem: 11 >> Explain the traditional methods of new venture evaluation: profile analysis, feasibility criteria approach, and comprehensive feasibility method.
Answer Preview: The profile analysis is a tool that enables entrepreneurs to judge a business …

, Chapter: 3 -Problem: 6 >> What are five useful rules for innovation?
Answer Preview: Encourage action. Use informal me…

, Chapter: 1 -Problem: 10 >> Describe the “framework of frameworks” approach to entrepreneurship.
Answer Preview: The theories based on combinations similar …

, Chapter: 4 -Problem: 12 >> What are the forms of international alliances?
Answer Preview: The forms are informal in…

, Chapter: 3 -Problem: 10 >> Identify the five specific entrepreneurial climate factors that organizations need to address in structuring their environment.
Answer Preview: Top management support; …

, Chapter: 12 -Problem: 1 >> Pedro Santini has been a computer analyst for five years. In his spare time, he has developed a word processing software program that is more comprehensive and powerful than any on the market. Because he does not have a great deal of money, Pedro believes that the first step in producing and marketing this product should be to obtain the necessary venture capital.The software program has been writ
Answer Preview: In addition to financial questions, what other questions is the venture capitalist likely to ask Pedro? Why does Pedro think the product is best in th…

, Chapter: 3 -Problem: 9 >> Explain the differences between radical and incremental innovation.
Answer Preview: Radical innovation represents inaugural breakthroughs t…

, Chapter: 1 -Problem: 6 >> What are the schools of thought that use the micro view of entrepreneurship?
Answer Preview: The entrepreneurial trait s…

, Chapter: 4 -Problem: 2 >> Define asocial entrepreneur.
Answer Preview: Social entrepreneurs are people who found and/or lead organizations or initiatives …

, Chapter: 11 -Problem: 5 >> Describe how a cash-flow budget is constructed.
Answer Preview: The cash-flow budget is created by f…

, Chapter: 11 -Problem: 10 >> Describe the internal rate of return method. When would an entrepreneur use this method? Why?
Answer Preview: Future cash flows are discounted; however, they are discounted at a rate that makes the NP…

, Chapter: 13 -Problem: 10 >> Comparing the entrepreneurial focus with the administrative focus involves five major areas of consideration. What are these areas?
Answer Preview: Strategic orientation, com…

, Chapter: 9 -Problem: 12 >> Explain the limited liability partnership.
Answer Preview: The limited liability partnership (LLP) is a relatively new f…

, Chapter: 12 -Problem: 14 >> Why should a business plan be updated?
Answer Preview: There are several reasons for updating a business plan; for example, fin…

, Chapter: 1 -Problem: 4 >> What are the schools of thought that use the macro view of entrepreneurship?
Answer Preview: The environment school …

, Chapter: 7 -Problem: 1 >> Chris Wasserberg is a salesperson for a Fortune 100 firm. He has a bachelor’s degree in marketing and is one of the firm’s best salespeople. Chris will likely become a sales manager if he stays with the firm. However, this is doubtful, because he hopes to start his own business.Since he was hired seven years ago, Chris has managed to build a nest egg of $160,000. He now is looking for a business t
Answer Preview: 1. Chris's idea of building a doghouse at a range of $250 to $500 is a unique idea as it gives him the competitive advantage on pricing over most of …

, Chapter: 4 -Problem: 1 >> Not long ago, the average person was not aware of such delicacies as sushi and kiwi. Today, they flourish as accepted foods throughout the world. With that in mind, Susan Marring proposes a new enterprise to solve some of the environmental challenges facing our planet. “Insects for Tomorrow” is the name of her new venture idea. She plans to raise insects under hygienic conditions and sell them to
Answer Preview: 1. There are a few reasons why this concept could be viable . First , as the author notes , insects are already eaten by people in many parts of the w…

, Chapter: 3 -Problem: 12 >> What are the roles of middle managers in corporate entrepreneurship? Be specific.
Answer Preview: Middle managers endorse, refine, and shepherd entrepreneurial opportunities and iden…

, Chapter: 1 -Problem: 5 >> What is the micro view of entrepreneurship?
Answer Preview: The micro view of entrepren…

, Chapter: 6 -Problem: 9 >> List four major types of problems that new ventures confront.
Answer Preview: Marketing and sales, pro…

, Chapter: 8 -Problem: 4 >> Why would a venture capitalist be more interested in buying a convertible debenture for $500,000 than lending the new business $500,000 at a 4 percent interest rate?
Answer Preview: With a convertible debenture, t…

, Chapter: 2 -Problem: 14 >> What is the concept of entrepreneurial motivation, and how has it been depicted?
Answer Preview: Examining why people start businesses and how they differ from those who do not(or from tho…

, Chapter: 3 -Problem: 3 >> What are some of the corporate obstacles that must be overcome to establish a corporate entrepreneurial environment?
Answer Preview: The firm needs to emphasize individual …

, Chapter: 3 -Problem: 8 >> Identify the four key elements on which managers should concentrate to develop a corporate entrepreneurship strategy.
Answer Preview: The four key elements are dev…

, Chapter: 10 -Problem: 4 >> Which is of greater value to the entrepreneur, primary or secondary data? Why?
Answer Preview: Secondary data are of greater value b…

, Chapter: 7 -Problem: 3 >> Describe what dimensions the “Newness Framework” is based on.
Answer Preview: The dimensions of the Newness Framework a…

, Chapter: 1 -Problem: 3 >> What is the macro view of entrepreneurship?
Answer Preview: The macro view of entrepreneurship presents a …

, Chapter: 2 -Problem: 1 >> Paul Medwick is a commercial banker. In the past month, he has received loan applications from three entrepreneurs. All three have fledgling businesses with strong potential. However, Paul believes it is important to look at more than just the business itself; the individual also needs close scrutiny.The three entrepreneurs are(1) Robin Wood, owner of a small delicatessen located in the heart of a
Answer Preview: 1 . Of the three applicants , I think Robin Wood comes closest to having the mind set of an ideal en…

, Chapter: 11 -Problem: 4 >> Describe how an operating budget is constructed.
Answer Preview: The operating budget is constr…

, Chapter: 7 -Problem: 13 >> How can a prospective franchisee evaluate a franchise opportunity? Explain.
Answer Preview: The key to evaluating the value of a prospective f…

, Chapter: 8 -Problem: 6 >> What is the objective of Regulation D?
Answer Preview: Regulation D eases th…

, Chapter: 13 -Problem: 14 >> Define the one-person-band syndrome.
Answer Preview: The one-person-band syndrome exists when an entrepreneur refuse…

, Chapter: 1 -Problem: 11 >> Explain the predominance of new ventures in the economy.
Answer Preview: During the past 10 years over 400,000 new businesses were incorporated per year Newer entr…

, Chapter: 3 -Problem: 7 >> What are three advantages of developing a corporate entrepreneurial philosophy?
Answer Preview: Companies that promote personal growth attract the best p…

, Chapter: 1 -Problem: 7 >> What are the three specific types of displacement?
Answer Preview: Political disp…

, Chapter: 9 -Problem: 11 >> What is the ULPA? Describe it.
Answer Preview: The ULPA is the Uniform Limited Partnership …

, Chapter: 9 -Problem: 14 >> What is a limited liability company?
Answer Preview: A limited liability company (LLC) is a hybrid form of business between a part…

, Chapter: 13 -Problem: 4 >> Does strategic planning really pay off for entrepreneurial ventures?
Answer Preview: Yes. Improved performance is often the …

, Chapter: 8 -Problem: 8 >> How has crowdfunding changed the landscape of new-venture financing?
Answer Preview: Crowdfunding allows new ventures to seek funding by r…

, Chapter: 15 -Problem: 8 >> In what way can forcing events cause the replacement of an owner/manager?Cite three examples.
Answer Preview: A forcing event will require the entrepreneur …

, Chapter: 2 -Problem: 3 >> Is it true that most successful entrepreneurs have failed at some point in their business careers? Explain.
Answer Preview: The most effective entrepreneurs are …

, Chapter: 3 -Problem: 4 >> What are some of the innovative principles identified by James Brian Quinn that companies need to establish?
Answer Preview: According to James Brian Quinn, a noted expert on innovat…

, Chapter: 7 -Problem: 2 >> What is the new-new approach to starting a new venture?How does this approach differ from a new-old approach?
Answer Preview: New-new is when you enter a market with a new product or service. Examples of recent new-new entri…

, Chapter: 9 -Problem: 9 >> Identify the legal forms available for entrepreneurs structuring their ventures: sole proprietorship, partnership, and corporation.
Answer Preview: Sole proprietorshiplocal and state licenses that are necessary to begin operations. If t…

, Chapter: 10 -Problem: 1 >> Six months ago, Roberta O’Flynn opened a small office supply store. Roberta sells a wide range of general office merchandise, including numerous software packages, photocopying paper, printer cartridges, computer accessories, tablets, envelopes, writing instruments, and computer thumb drives, as well as a limited range of office desks, chairs, and lamps.Several office supply stores in the local ar
Answer Preview: 1. Yes, the information Roberta is seeking be of value to her in competing in that market because it…

, Chapter: 11 -Problem: 2 >> Dennis Darby owns a small manufacturing firm that produces electronic components for use in helicopters. Most of his business is a result of military and aircraft manufacturer contracts, although 11 percent of revenues come from firms that own or rent helicopters. The latter are typically large Fortune 500 companies or leasing/rental firms that work on a contractual basis for clients.Dennis would
Answer Preview: Selling price $800 Unit variable cost ($400) Unit contribution margin $400 Fixed cost $35,000 Additi…

, Chapter: 7 -Problem: 9 >> What is meant by the term franchise?
Answer Preview: A franchise is any arrangement …

, Chapter: 4 -Problem: 4 >> Social enterprise can be classified into distinct categories. List some of the categories.
Answer Preview: Some types of social enterpr…

Additional Information

11 Reviews for Entrepreneurship Theory Process Practice Textbook Questions And Answers