business Flashcards
Entrepreneurship motives The most common reason for choosing to become an entrepreneur is according the course Välj ett alternativ: To be independant To be my own boss To become rich(er) Develope own ideas
To be my own boss
GEM and TEA
GEM and TEA stands for:
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GEM = Global Entrepreneurship Monitor, TEA=Total Early Stage Entrepreneurship Activity
GEM = General Entrepreneurship Monitor, TEA=Total Entrepreneurship Early Stage Activity
GEM = Global Entrepreneurship Monitor, TEA=Total Entrepreneurship Acclompishment
GEM = General Entrepreneurship Monitor, TEA=Total Entrepreneurship Activity
GEM = Global Entrepreneurship Monitor, TEA=Total Early Stage Entrepreneurship Activity
Opportunity identification
The three ways to identify opportunities could according the course be divided in:
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1. Observe trends 2. Solving problems 3. Be creative
1. Observe trends 2. Solving problems 3. Finding gaps in the market place
1. Observe trends 2. Be creative 3. Be in the right place
1. Observe trends 2. Be creative 3. Look for problems to be solved
- Observe trends 2. Solving problems 3. Finding gaps in the market place
Entrepreneurial creativity
Entrepreneurial creativity is a process which according the course book can be split in five
development steps which are
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Preparation, Incubation, Insight, Evaluation, Elaboration
Preparation, Incubation, Planning, Implementation, Evaluation
Preparation, Incubation, Insight, Planning, Elaboration
Preparation, Planning, Insight, Evaluation, Elaboration
Preparation, Incubation, Insight, Evaluation, Elaboration
Creativity process - incubation
What does incubation mean in an entrepreneurial context?
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Flash of recognition when the solution to a problem is seen
The stage of the creative process during which an entrepreneur considers the idea or thinks
about a problem
The planning stage of the implementation of a business after that an idea has been
processed
Bringing the background, experience and knowledge to recognize an opportunity
The stage of the creative process during which an entrepreneur considers the idea or thinks
about a problem
Growth
According the book there are several reasons to manage for growth in a company. Which one is
here the most correct one?
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A reason for growth could be to improve economy of scale and scope, which lowers the
total cost per sold unit, which increases competitiveness
Feasibility study
Why should an entrepreneur do a feasibility study?
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To determine if a business is viable
To determine the level of resources needed for realisation
Because it is a required part of a business plan
To prove to investors the value of investing in the business
To determine if a business is viable
Business models
What is differentiating a disruptive business model from a standard business model?
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Disruptive business models are new and change the way business is conducted in an
industry while standard business models are the ones already in use by market actors
Disruptive business models means creating completely new types of marketsby invention
of new products,. like I-phone 15 years ago
Disruptive business models is a modification of a standard business model while standard
business models are the ones practiced by market leaders
Disruptive business models are the ones competing with low cost and price, like Ryan Air
while standard business models are the ones with normal price and cost levels
Disruptive business models are new and change the way business is conducted in an
industry while standard business models are the ones already in use by market actors
The best description of entrepreneurship is according the course: Välj ett alternativ: Starting a new company Turning an idea into a business To create new business models To add value and enhance business models
Turning an idea into a business
The most well known and spread business model format presented in the course is
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The CANVAS business plan template
The CANVAS business model template
The Income/Loss statement, Cash flow statement and Balance sheet
The Barringer Ireland business model template
The CANVAS business model template
Five forces model
Which of the following statements is wrong, regarding the five forces model?
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It was developed by Michael Porter and was published in his book in 1980
The five forces model is best used as a management tool after a business has been
started
Two of the five forces are a) threat of substitutes b) rivalry among existing firms
The five forces model is used for determining industry profitability and understanding
industry structure
The five forces model is best used as a management tool after a business has been
started
Bargaining power of buyers
The bargaining power of suppliers……………
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is a negative factor for an industry when there are few and large suppliers to that industry
is not depending on the relative size of the buying and selling company but only on the
number of suppliers available
is a negative factor for an industry when there are many small and alternative suppliers to
that industry
is a positive factor for an industry with few and large suppliers
s a negative factor for an industry when there are few and large suppliers to that industry
Competition
Direct competitors means
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Competitors satisfying the same needs for the same customer
Competitors offering identical or similar products
Competitors that are engaged in direct sales to end users.
Competitors with offerings at equal or similar commercial conditions like price, leadtime
and service
Competitors offering identical or similar products
Legal foundations
What is the difference between public and private corporations?
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Both types of corporations are owned by shareholders, but only shares of a public
corporation are traded at public stock markets
Public corporations are subject to supervision by the state while private corporations have
no external reporting duties
Public corporations are owned by the state while private corporations are privately owned
Public corporations are subject to double taxation but private corporations are only single
taxed (only profit but not the share dividends are taxed)
Both types of corporations are owned by shareholders, but only shares of a public
corporation are traded at public stock markets
Organizational feasibility
Which are the two components of organizational feasibility to be considered in a feasibility
analysis?
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The first component is financial prowess, which means evaluating the ability to finance the
venture. The other component is resource sufficiency, which means valuing the nonfinancial resources, like physical space, key employees and key equipment
The first component is management prowess, which means evaluating the ability of the
venture team. The other component is resource sufficiency, which means valuing the nonfinancial resources, like physical space, key employees and key equipment
The first component is management prowess, which means evaluating the ability of the
venture team. The other component is financial sufficiency, which means valuating if there
are enough financial resources
The first component is management, which means that there is a team. The other
component is resource sufficiency, which are found as assets in the balance sheet of the
budget
The first component is management prowess, which means evaluating the ability of the
venture team. The other component is resource sufficiency, which means valuing the nonfinancial resources, like physical space, key employees and key equipment
