ch. 8

Question 1

Entrepreneurship

Answer 1

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

Question 2

Opportunity Discovery

Answer 2

-Spontaneous and unexpected OR
-Deliberate search

Question 3

Opportunity viability

Answer 3

-Attractive: there is market demand
-Achievable: practically feasible to realize
-Durable: large enough window of opportunity
-Value creating: benefits must surpass costs

Question 4

Liability of newness

Answer 4

higher difficulty accessing resources than established companies

Question 5

Angel Investors

Answer 5

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

Question 6

Venture capitalists

Answer 6

companies organized to place their investors’ finds in lucrative business opportunities

Question 7

Crowdfunding

Answer 7

funding a venture by pooling small investments from a large number of investors, often raised on the internet

Question 8

Pioneering (entry strategy- entrepreneurship)

Answer 8

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

adv.-
disadv.-risk that product is not accepted by customers

Question 9

Imitative (entry strategy- entrepreneurship)