Unit 7

Question 1

Innovation

Answer 1

A type of change where new ideas can lead to breakthroughs or incremental improvements

Question 2

Entrepreneurship

Answer 2

Organzing, managing, and assuming all business risks.

Question 3

Social entrepreneur

Answer 3

Focuses mostly on broader social missions designed to achieve large scale results

Question 4

Locus of control

Answer 4

Whether you think circumstances are under your direct control (internal) or outside (external) of your control.

Question 5

Venture capital

Answer 5

Dollars provided by investors that involve high risk/high earning potential

Question 6

Cost minimizations

Answer 6

Only costs are compares because outcomes are equal

Question 7

Cost effectiveness

Answer 7

Outcomes values in natural units. Measures both costs and outcomes between competing alternatives.

Question 8

Cost utility

Answer 8

Difference in quantity and quality of life

Question 9

What is six sigma

Answer 9

Quality improvement technique… something about 99.99% accurate

Question 10

What is intrepreneurship

Answer 10

A person who operates as an entrepreneur but is an employee of the organization

Question 11

Difference between intra and entrepreneurs

Answer 11

Intra have existing support networks, entrepreneurs often start without them. Intra must work within the corporate hierarchy. Intra faces career risk, entrepreneurs face financial risk

Question 12

5 strategies of intrapreneurship

Answer 12

Define the opportunity or problem
Build support
Mobilize resources
Execute the project
Complete the venture

Question 13

How are the micro and macro views of entrepreneurship different

Answer 13

Micro focuses on describing internal entrepreneurship characteristics (internal locus of control)
Macro focuses on external components of entrepreneurial effectiveness.

Question 14

3 factors of concern in the macro view of entrepreneurship

Answer 14

Environmental, financial/capital, displacement

Question 15

Various approaches to entrepreneurship

Answer 15

Events approach: Articulates innovation, triggering events, implementation and growth in order to be effective. Emphasizes that these processes do not occur in succession.
Assessment approach: Comprehensive mix of attributes, characteristics and behaviors that define an individuals potential
Multidimensional model: 4 broad categories must be considered (individual, environmental, organization and process). Dynamic process

Question 16

Elements included in a business valuation

Answer 16

Understand earnings before interest, tax and debt payments.

Question 17

What is EBITDA

Answer 17

Revenues-expenses (Expenses don’t include interest, tex, depreciation and amortization)
Earnings Before Interest, Tax depreciation, Debt payments or Amortization

Question 18

Differentiate strategy from operational effectiveness

Answer 18

Strategy involves competitive advantage
Operational effectiveness conducts activities that are similar to the competitors but offer improvements (Increased speed, higher quality, cheaper price)

Question 19

Describe the 4 categories of risk incurred by entrepreneurs

Answer 19

Financial risk: Capital/economic resources
Career risk: Potential to find other work if previous venture fails
Social risk: Increased commitments take away from friends and family and other social aspects of life.
Psychological risk: Psychological barrier of having to engage in risky business endeavors.

Question 20

Characteristics of a learning organization

Answer 20

Shared vision,