pivot
effectuation
Sometimes the place you live (landlocked Indiana) is not the best market for your product
(surfboards). By selling his surfboards over his website, Finn was using the strategy of taking it on
the road.
References
Multiple Choice Learning Objective:
01-06 Recognize the
seven key strategies
of the
entrepreneurial way.
Which of the following is true of corporate entrepreneurship?
It involves the creation of self-sustaining charitable and civic organizations.
It involves revitalizing government agencies.
It is a form of entrepreneurship in which people own their own for-profit business.
It involves bringing new products or services to a market.
In corporate entrepreneurship, the focus is typically on bringing new products or services to market,
or opening up new markets for a firm.
References
Multiple Choice Learning Objective:
01-01 Understand
the scope of small
business in the
United States.
88.
Award: 1.00 point
89.
Award: 1.00 point
Social entrepreneurship primarily involves a person or group
creating new charitable and civic organizations, which are financially self-sufficient.
bringing new products or services to market.
owning their own for-profit business.
revitalizing government agencies.
Social entrepreneurship involves creating new charitable and civic organizations, which are
financially self-sufficient.
References
Multiple Choice Learning Objective:
01-01 Understand
the scope of small
business in the
United States.
One of the seven key strategies of the entrepreneurial way is pivot, also called
perseverence.
crowdsourcing.
effectuation.
the corridor principle.
The pivot approach is also called the corridor principle.
References
Multiple Choice Learning Objective:
01-06 Recognize the
seven key strategies
of the
entrepreneurial way.
90.
Award: 1.00 point
When following this strategy of the entrepreneurial way, instead of planning a firm and then looking
for resources, the entrepreneur starts with the resources they have and thinks about the best way to
use those resources.
take it on the road
pivot
bird in the hand
scale back
This describes the bird in the hand strategy.
References
Multiple Choice Learning Objective:
01-06 Recognize the
seven key strategies
of the
entrepreneurial way.
91.
Award: 1.00 point
Effectuation refers to
the degree of attention a target market pays to an idea or organization.
an approach used to create alternatives in uncertain environments.
transforming a high-growth venture into a small business.
a process of a person becoming an owner by inheriting or getting a stake in a family
business.
Effectuation is an approach used to create alternatives in uncertain environments.
References
Multiple Choice Learning Objective:
01-06 Recognize the
seven key strategies
of the
entrepreneurial way.
92.
Award: 1.00 point
What is the difference between a high-performing small business and a high-growth venture? Which
of the two includes unicorns?
High-performing small businesses tend to level off after success defined by sales of between
$100,000 and $1,000,000, depending on the industry. These firms grow at rates between 5 and 15
percent a year, maximizing profitability while remaining manageably small. In contrast, high-growth
ventures aim to achieve growth rates of 25 percent or more a year, with sales of more than $1
million. These firms aim to become big businesses and pursue high levels of professionalization and
external funding. This type of organization includes unicorns that have valuations of $1 billion or
more.
References
Essay Learning Objective:
01-02 Differentiate
between small
businesses and
high-growth
ventures.
93.
Award: 1.00 point
94.
Award: 1.00 point
Compare a lifestyle or part-time firm with a traditional small business. What are the differences?
A lifestyle or part-time firm typically has sales of $25,000 a year or less, which provides enough
profit to supplement an income but not enough to live on. These businesses start and stay very
small, often only operating seasonally or when the owner wants to work at the business. Growth
levels off quickly. In contrast, a traditional small business is the smallest full-time business and most