Chapter 7

Question 1

What is entrepreneurship?

Answer 1

The pursuit of lucrative opportunities by enterprising individuals. Discovering, evaluating, and capitalizing on opportunities to create new and future goods and services.

Question 2

What is a small business?

Answer 2

A business having fewer than 100 employees, independently owned and operated, not dominant in its field, and not characterized by innovative practices.

Question 3

What is an entrepreneurial venture?

Answer 3

A new business having growth and high profitability as primary objectives.

Question 4

What is a skunkworks?

Answer 4

A project team designated to produce a new, innovative product.

Question 5

What is bootlegging?

Answer 5

Informal work on projects, other than those officially assigned, of employees’ own choosing and initiative.

Question 6

What is entrepreneurial orientation?

Answer 6

The tendency of an organization to identify and capitalize successfully on opportunities to launch new ventures by entering new or established markets with new or existing goods or services.
*allow independent action
*innovativeness
*risk taking
*proactiveness
*competitive aggressiveness

Question 7

What is franchising?

Answer 7

An entrepreneurial alliance between a franchisor (an innovator who has created at least one successful store and wants to grow) and a franchisee (a partner who manages a new store of the same type in a new location).

Question 8

What are the models for selling on the internet?

Answer 8

1. Transaction fee model: charging fees for goods and services. 2. Subscription models: charging fees for site visits. 3. Advertising support model: charging fees to advertise on a site. 4. Intermediary model: charging fees to bring buyers and sellers together. 5. Charging fees to direct site visitors to other companies’ sites.

Question 9

What is social entrepreneurship?

Answer 9

Leveraging resources to address social problems.