Chapter #8

Question 1

The creation of new value by an existing organization or new venture that involves the assumption of risk.

Answer 1

Entrepreneurship

Question 2

The process of discovering and evaluating changes in the business environment, such as new technology, sociocultural trends, or shifts in consumer demand, that can be exploited.

Answer 2

Opportunity Recognition

Question 3

Private individuals who provide equity investments for seed capital during the early stages of a new venture.

Answer 3

Angel Investors

Question 4

Companies organized to place their investors’ funds in lucrative business opportunities.

Answer 4

Venture Capitalists

Question 5

Funding a venture by polling small investments from a large number of investors; often raised on the Internet.

Answer 5

Crowdfunding

Question 6

Leadership appropriate for new ventures that requires courage, belief in one’s convictions, and the energy to work hard even in difficult circumstances; and that embodies vision, dedication and drive, and commitment to excellence.

Answer 6

Entrepreneurial Leadership

Question 7

A strategy that enables a skilled and dedicated entrepreneur, with a viable opportunity and access to sufficient resources, to successfully launch a new venture.

Answer 7

Entrepreneurial Strategy

Question 8

A firm’s entry into an industry with a radical new product or highly innovative service that changes the way business is conducted.

Answer 8

Pioneering new entry

Question 9

A firm’s entry into an industry with products or services that capitalize on proven market successes and that usually have a strong marketing orientation.

Answer 9

Imitative New Entry