MGT1100 Chapter 7 revision

People who engage in ________ take advantage of opportunities to create new products or services, or change existing ones.

• entrepreneurship
• social responsibility

• marketing
• investment

Annabel operates a local hardware store that she inherited from her parents. When she took over, she updated the point-of-sale equipment and installed a customer database. Annabel is a(n)

• entrepreneur

• small business owner

• venture capitalist

• retail clerk

Brandon is examining the state of the economy, the regulatory situation, social trends, and the local labor supply. This would indicate Brandon is ________.

• performing a SWOT analysis

• exploring the entrepreneurial context

• self-employed

• a small business owner

The purpose of examining the state of the economy, the regulatory situation, social trends, and the local labour supply is to ________.

• identify possible customers and employees

• locate resources for use in the new business

• determine who are the major players in the market

• identify opportunities and possible competitive advantages

Entrepreneurship is important to the overall economy since entrepreneurs ________.

• push out efficient firms

• often fail their way to success

• help keep markets competitive

• don't compete with established businesses

Arthur Fry thought his glue was a failure because it didn't stick permanently, but when applied to small squares of paper, it became the popular Post-It ® note. Arthur Fry took advantage of ________.

• a process need

• the unexpected

• a market structure

• changes in perception

"Put a motor on a bicycle? You must be crazy!" Yet that is exactly what William Harley and Walter Davidson did. These two founders of the best-known American motorcycle company saw opportunity in ________.

• the incongruous

• the unexpected

• demographics

• changes in perception

In the days before sterile adhesives, bandages were tied onto the patient. Next came adhesive tape with small squares of gauze attached, but making these in the doctors' office was tedious and time consuming. Finally Earle Dickson invented the Band-Aid for his wife, who needed a bandage she could apply to herself for small kitchen burns. Dickson saw ________.

• the unexpected

• a new industry

• new knowledge

• a process need

Before Henry Ford and Frederick W. Taylor collaborated, automobiles were built by craftsmen, one at a time. After the establishment of the assembly line, Ford was able to produce automobiles faster than his competitors but with equivalent quality and sell them for a fraction of the cost. Ford saw opportunity in ________.

• industry structure

• the unexpected

• changing perceptions

• demographic shifts

Emmanuel wants total control over the decisions related to his business but is concerned that should the business fail, his personal assets are at risk. Fallon has chosen the ________ form of ownership.

• sole proprietorship

• C corporation

• general partnership

• S corporation