Unformatted text preview: AEM120 Principles of Entrepreneurship and Business PRACTICE FINAL EXAM - HARD 1. Fall 2007 Pedro David Prez This exam is composed of 50 questions, a mixture of multiple choice, matching, and binary questions. You will have exactly 75 minutes to complete the exam. Please allocate your time accordingly. Make sure you leave yourself enough time at the end to have the bubble sheet completely filled out before time is called. No additional time will be allocated for this activity. If you have questions about anything, do not hesitate to ask. Just raise your hand and we will come to your seat. After you have completed your exam, print your name in the space below, sign and date the Honor Code. GOOD LUCK!!! 2. 3. 4. Name (please print) _____________________________________________________ Student ID Number _____________________________ Honor Code: I affirm that I have abided by the guidelines set forth in the Cornell University Code of Conduct: Signature ______________________________________________________________ Date ________________________________ PART I. Allocate each of the following to the appropriate category a. b. c. d. e. Characteristics of the business opportunity Characteristics of the venture team Components of the Venture Capital valuation method Techniques for existing market research Techniques for new market research 1. Anthropological expeditions 2. Appropriate strategy 3. Compelling product description 4. Conjoint analysis 5. Experience 6. Externally observable competitive advantage 7. Extrapolation 8. Focus groups 9. Honesty 10. Interviews with experts 11. Investment 12. Large market 13. Lead users 14. Motivation 15. Passion 16. Perceptual mapping 17. Price-Earnings ratio 18. Rate of return of investment 19. Repertory grid 20. Scenarios 21. Survey 22. Terminal value 23. Years of investment PART II. Please answer the following questions Associate the phases of the entrepreneurship process with their relevant aspects 24. Opportunity recognition 25. Resource assemblage 26. Launching the startup 27. Building a successful venture 28. Harvest a. Buttressed by social competence, trust building and stress management b. It is all about social networks c. Knowledge and experience are determinant d. The business plan must be ready by now e. You are not for sale Order the following initial components of the startup according to the level of risk they generally run in the startup 29. Board of directors/advisors 30. Entrepreneur(s) 31. Initial hires 32. Investors 33. Startup team a. Runs the most risk b. Runs the second most risk c. Third d. Fourth e. Runs the least amount of risk Match the following entrepreneurial profiles with the form of ownership that is most likely to succeed for their startup ventures. 34. Bobby is a just graduated Ph.D. in chemistry. He believes that his research findings can be turned into a valuable biotech company. 35. Cathy is a Hollywood producer looking for financing for her next movie; 36. Earl has just retired from a successful corporate career. Earl and his wife, Elsie, reckon that they can work for another 10 to 15 years and they'd like to open a business "to keep busy"; however, they do not have an idea they'd like to exploit. 37. Roger and Margaret are MD's: Roger is an OB/GYN and Margaret is a pediatrician. They are married and expect that starting a practice together will leverage their knowledge while allowing them to work under the same roof;
38. Shirley is a freelance photographer. She enjoys her work and likes the freedom to accept or reject assignments. Anyways, freelance photography is an extension of her favorite hobby. a. b. c. d. e. Corporation Franchise Limited partnership Partnership Sole proprietorship 39. Which of the following human psychological biases is characteristic of entrepreneurs? a. Availability heuristic b. Anchoring and adjustment heuristic c. Confirmation bias d. Optimistic bias e. Representative heuristic 40. New firms do the majority of the industrial R&D of the United States a. True b. False 41. New firms are higher on the learning curve than established firms a. True b. False 42. Causal ambiguity can be a source of tacit knowledge a. Yes b. No 43. Which of the following is not a psychological bias that is particularly relevant to the entrepreneurial attitude? a. Bias for action b. Confirmation bias c. Optimistic bias d. Planning fallacy e. Self-efficacy We have seen that starting small, forming alliances, and seeking legitimacy are strategies that help entrepreneurs manage information asymmetry and uncertainty. Assign to each of the strategies above the element of information asymmetry and uncertainty that it addresses the least 44. Starting small 45. Forming alliances 46. Seeking legitimacy a. Technical uncertainty b. Competitive uncertainty c. Market uncertainty d. Information asymmetry What aspects of Victor Vroom's expectancy theory model correspond to the fundamental aspects of motivation? 47. Motivation 48. Expectancy 49. Instrumentality 50. Valence a. Effort b. Performance c. Rewards d. Personal values ...
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This test prep was uploaded on 12/14/2007 for the course AEM 1200 taught by Professor Perez,p.d. during the Fall '06 term at Cornell.
- Fall '06