Entrepreneurship MCQ: Entrepreneurship Chapter 2

What is Restoration orientation ?

Restoration orientation :

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

Identify The seven leadership characteristics of a corporate entrepreneur.

The seven 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

Proactiveness

It 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.

What is Self-renewal ?

Self-renewal

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.

Organizational innovativeness

Refers to product and service innovation. It includes new product development, product improvements, and new production methods and procedures.

What is New business venturing ?

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.

What is a dual process of coping with negative emotions?

Answer: It is a process of shifting between loss orientation and restorative orientation. Loss Orientation is an approach that involves working through, and processing, some aspect of the loss experience, and as a result, breaking the emotional bonds to the object lost. Restorative Engagement is an approach tot he negative emotions based on both avoidance and a proactiveness toward secondary sources of stress arising from a major loss.

Why does the book devote almost a whole page to coping with negativity?

Answer: Because as an Entrepreneur, you will fail. A lot. And you will hear no more than you fail. Negativity will surround you and always be present. Therefore, being able to learn from failure, and take the negative emotions you will feel and learn how to be receptive to them, you will be able to be proactive in your next action steps, to always be improving. As a side note, be careful to not confuse constructive criticism for negativity. As Alexis Ohanian (founder of Reddit) says) "Be thankful for the constructive critics, and eat your haters for breakfast"

What are the components of the "reward system" as it applies to corporate entrepreneurship?

Answer: The corporate entrepreneur needs to be appropriately rewarded for all the energy, effort, and risk taking expended in the creating of a new venture. Rewards should be based on the attainment of established performance goals. An equity position in the new venture is one of the best rewards for motivating and eliciting the amount of activity and effort needed for success.

Why does an entrepreneur need to understand every aspect of their environment?

To establish a successful corporate venture, the individual must be creative and and have a broad understanding of the internal and external environments of the corporation. The reason for this is apparent in decision making.

According to the textbook, what is entrepreneurial orientation toward opportunity?

Answer: It describes firms that are committed to taking action on potential opportunities and therefore can pursue opportunities rapidly, making the most of windows of opportunity.

In the Barefoot Wine guest lecture, who was Bob?

Answer: Bob was Robert Mondavi. Mondavi is the son of italian immigrants and the leader of one of the largest wine companies in the world, building his empire on California wines.

Most Gazelles are seeded by Venture Capital

Answer: False

What are gazelles (in business not the animal kingdom)?

Answer: These are companies experiencing significant growth, year after year. They have at least 20% annual sales growth consistently for at least 5 years.

How is the decisiveness of entrepreneurs described?

Answer: They have the ability to make quick decisions under conditions of high uncertainty. This goes hand in hand with a high tolerance of ambiguity.

What are the three most common sources of ideas?

Replicated an idea from the previous job
A systematic search
"Lucked up"

Why is it so important to pull out from the employer before step 5, Business Plan Creation?

Answer: By keeping your day job, you will delay the dream! Too many entrepreneurs get bogged down at work and do not find the time to write the business plan. You need to commit yourself to the creation of your plan. Nothing can stand in your way or hold you back.

What is the average half-life of a CEO if their company is sold, acquired, or merged?

Answer: 3 years

What are the main Characteristics of an Intrapreneurial Manager?

Answer: Directly from the slide: -Has a clear vision of the project -Wants to do the entire project -Knows the project meets a given need -Is a leader