Entrepreneurship: Theory, Process, and Practice 10th Edition by Donald F. Kuratko Test bank
14. Mountain gap strategies refer to:
| a. | unique resources |
| b. | unique locations |
| c. | unique resources |
| d. | unique markets |
| a. | explain the process of obtaining patents |
| b. | model the various factors that characterize the entrepreneurial process |
| c. | explain intrapreneurship |
| d. | explain the process of obtaining venture capital |
ANS: B
Short Answer:
- Name and describe four of the ten major myths of management.
ANS:
One of the myths of management says that entrepreneurs are born, not made. This myth implies that entrepreneurs cannot be taught how to be successful. It says that they must be born with certain traits, such as aggressiveness, initiative, drive, and skill in human relations. However, recent recognition of entrepreneurship as a discipline is helping to dispel this myth. Another myth is the “all you need is money” myth, which says businesses fail because of inadequate financing. Actually, poor financing usually indicates other problems such as managerial incompetence, poor investments, and poor planning. A third myth says that entrepreneurs are either inventors or innovators. While many inventors and innovators are entrepreneurs, many entrepreneurs excel at other profit-seeking activities. A final myth is that all you need is luck. “Luck happens when preparation meets opportunity” means that being prepared for situations can lead to success when the time is right.
- List and categorize the schools of entrepreneurial thought.
ANS:
The schools of entrepreneurial thought can be grouped into two major headings, macro and micro. The macro view of entrepreneurship presents a broad array of factors. These include external factors, which sometimes cannot be controlled. In the macro view, the environmental school of thought deals with external factors that affect the possible lifestyle of the entrepreneur. Also under macro, the financial/capital school looks for seed and growth capital to develop the entrepreneur. The displacement school is the final macro view. It holds that the group affects or eliminates certain factors that project the individual into an entrepreneurial venture. The micro view examines factors specific to entrepreneurship and part of the “internal” locus of control. The entrepreneurial trait school says that successful entrepreneurs usually exhibit similar characteristics. The venture opportunity school focuses on opportunities in directions other than where the entrepreneur is presently headed. The final school, the strategic formulation school, emphasizes the planning process in successful venture development.
- Provide a comprehensive definition of entrepreneurship.
ANS:
Entrepreneurship is the dynamic process of creating incremental wealth. This wealth is created by individuals who assume the major risks in terms of equity, time, and/or career commitment of providing value for some product or service. The product or service itself may or may not be new or unique but value must somehow be infused by the entrepreneur by securing and allocating the necessary skills and resources.