question

According to the text, for an entrepreneurial start-up to be successful, three ingredients are critical. What are they? A. good ideas, a team of investors, and a business plan B. a viable opportunity, available resources, and a qualified and motivated founding team C. an opportunity, a marketing plan, and office space D. management, marketing, and money

answer

B

question

Which of the following is not a common source of new business opportunities? A. current or past work experiences B. suggestions by family or friends C. chance event D. future work

answer

D

question

The process of identifying, selecting, and developing new venture opportunities is known as _____________. A. innovativenessB. bootstrappingC. opportunity recognition D. brainstorming

answer

C

question

Generally speaking, the opportunity recognition process consists of two phases of activity. They are ______________ and _____________. A. global search; recycling profits B. value creation; affordability C. discovery; evaluation D. global search; valuation

answer

C

question

Which of the following is NOT one of the characteristics of an entrepreneurial opportunity? A. attractive B. affordable C. achievable D. value creating

answer

B

question

When an opportunity is attractive long enough for it to be successfully developed and deployed, it is said to be _____________. A. value creating B. affordable C. achievable D. durable

answer

D

question

Which of the following terms is used to refer to opportunities that are practical and physically possible? A. durable B. valuable C. achievable D. sustainable

answer

C

question

Which of the following is not a primary source of financing for entrepreneurial start-ups? A. investments by family and friends B. personal savings C. private investors D. public equity

answer

D

question

According to a study by the Kaufmann Foundation, which of the following is the largest source of funding for businesses that have been operating at least five years? A. loans B. venture capital C. public financing D. angel financing

answer

A

question

The majority of entrepreneurial start-ups are financed through monies from _____________. A. bank financing B. SBA loans C. venture-capital financing D. personal savings and the contributions of family and friends

answer

D

question

Private individuals who provide seed capital to young ventures are known as _____________. A. angels B. gazelles C. cash cows D. rising stars

answer

A

question

Which of the following statements about venture capital is not true? A. Entrepreneurs raise venture capital by selling shares of ownership in their business. B. Venture capital is a form of public equity financing. C. Venture capital is used to finance rapid growth or large capital expenditures. D. Venture capital groups can often provide helpful management advice.

answer

B

question

Based on statistics reported in the text, which of the following statements is not true? A. Firms that obtain venture-capital funding receive an average of over $1 million each. B. Total investment in start-up firms averages about $80,000 in the first year of the activity of the firm. C. Among the 100 fastest-growing new businesses identified by Entrepreneur magazine, 61 percent obtained start-up funding from personal savings. D. Ninety percent of the companies financed with venture capital funds fail.

answer

D

question

According to the text, new ventures launched by entrepreneurial teams are more likely to be successful than ventures launched by _____________. A. established corporations B. bootstrappers C. lone wolf entrepreneurs D. individual investors

answer

C

question

Which of the following is the most important resource for a start-up activity? A. social recognition B. land C. personnel D. money

answer

D

question

______________ provide(s) a key avenue for growth for many young and small firms through partnering to obtain resources and/or expand into new markets. A. Strategic alliances B. Bootstrappers C. Lone wolf entrepreneurs D. Research & development

answer

A

question

The U.S. Small Business Administration supports small business through all of the following EXCEPT A. government contracting. B. underwriting loans. C. investing venture capital. D. training and counseling.

answer

C

question

Which of the following is NOT one of the three characteristics of entrepreneurial leadership mentioned by the text? A. vision B. dedication and drive C. commitment to excellence D. clarifying job responsibilities

answer

D

question

Vision is an important element of entrepreneurial leadership because _____________. A. the entrepreneur has to envision realities that do not yet exist B. a vision statement must be part of the documentation used to obtain venture financing C. organizations cannot function without a detailed and operational vision D. banking institutions require it

answer

A

question

Which of the following is NOT a common new entry strategy according to the text? A. imitative new entry B. adaptive new entry C. proactive new entry D. pioneering new entry

answer

C

question

Seeking products or services that have been successful in one market and introducing the same basic product or service in another segment of the market is referred to as _____________. A. imitative new entry B. adaptive new entry C. proactive new entry D. pioneering new entry

answer

A

question

When launching a new venture, finding a way to begin doing business must ______________ generate cash flow, build credibility, attract good employees, and overcome the liability of newness. A. slowly B. quickly C. steadily D. painlessly

answer

B

question

Pandora entered the radio business in 2000 using the Music Genome Project system that analyzes music for its underlying traits as a means to distinguish itself. It was using ______________ entry strategy. A. a pioneering B. an imitative C. an adaptive D. a creative

answer

A

question

The new entry strategy that a firm choses is dependent upon the ______________ and the ______________ of the new business concept. A. riskiness; cost B. riskiness; potential sales C. idea; innovativeness D. riskiness; innovativeness

answer

D

question

Smell-O-Vision designed an invention to pump odors into movie theatres. It flopped, in spite of its innovativeness. What kind of new entry strategy was the company using to penetrate the market? A. imitative B. pioneering C. adaptive D. differentiated

answer

B

question

Square provides a means for small businesses to process credit and debit card sales without signing up for a traditional credit card arrangement of monthly fees and minimum charges. It used which new entry strategy to enter the market initially? A. imitative B. pioneering C. adaptive D. Differentiated

answer

A

question

Tom Monahan, a business creativity coach, says that every new idea is merely a spin of an old idea. A company that enters the market by offering a product or service that is somewhat new and sufficiently different in order to create value for customers by capitalizing on current trends is using which new entry strategy? A. imitative B. pioneering C. adaptive D. differentiated

answer

C

question

In 2005, Plum Organics entered the market with organic baby food and snack foods for children. It now has over 20 products and is listed at number 63 on the Inc 500 list of fastest growing private companies. It used which new entry strategy in 2005? A. imitative B. pioneering C. adaptive D. differentiated

answer

C Most new entrants use a strategy somewhere between pure imitation and pure pioneering. That is, they offer a product or service that is somewhat new and sufficiently different to create new value for customers and capture market share. Such firms are adaptive in the sense that they are aware of marketplace conditions and conceive entry strategies to capitalize on current trends.

question

Which of the following is not a factor that makes it more difficult for new ventures to be successful as differentiators? A. The strategy is thought to be expensive to put into action. B. Establishing a brand, important to a differentiation strategy, is thought to be expensive. C. Superior innovation is often very costly. D. Customer service is often costly, but it does not affect a differentiation strategy.

answer

D

question

Amazon is an example of a company that used the differentiation strategy to enter the market. The differentiation features included _____________. A. minimal customer service B. traditional back office logistics C. exceptional customer service D. traditional delivery logistics

answer

C

question

One of the ways entrepreneurs achieve success is by using resources more efficiently. This is an example of how entrepreneurs use ______________ strategy. A. an imitative B. a low-cost leader C. a differentiation D. a combination

answer

B

question

Entrepreneurial firms that pursue a low-cost leadership strategy use all of the following to achieve lower costs except _____________. A. cost-saving technology such as the Internet B. simple organizational structures C. rapid decision making D. extensive investment in order to achieve economies of scale

answer

D

question

When an industry is mature, a ______________ strategy is considered to be one of the most effective approaches for a new entrant. A. focus B. differentiation C. overall low-cost D. small business

answer

A

question

According to the text, which of the following does not make it difficult for entrepreneurial firms to effectively pursue a strategy of differentiation? A. Incumbent firms are constantly seeking opportunities to specialize in market niches. B. Differentiation strategies are often expensive to enact. C. It may be difficult for a young firm to establish a strong brand identity. D. Implementing superior new technologies may be challenging for entrepreneurial firms.

answer

A

question

Intense rivalry involving actions and responses among similar competitors vying for the same customers in a marketplace is known as _____________. A. competitive dynamics B. resource similarity C. threat of substitutes D. pioneering new entry

answer

A

question

Which of the following is not one of the reasons a company might launch new competitive actions? A. to obtain first mover advantages B. to improve market position C. to capitalize on growing demand D. to find new sources of raw materials

answer

D

question

BCG authors Stalk and Lachenauer published a book in which they listed competitive strategy for winning against incumbent rivals. Which of the following is not one of their suggested strategies? A. devastate profit sanctuaries of rivals B. plagiarize with pride and deceive the competition C. unleash massive and overwhelming force D. lower competitor costs

answer

D

question

Aircraft makers Boeing and Airbus have a high degree of ______________ because they make very similar products and have many buyers in common. A. dynamic capabilities B. market commonality C. first mover advantages D. equity funding

answer

B

question

The Wall Street Journal and the New York Times have seen the intensity of their rivalry increase. One factor driving this is that the Wall Street Journal has moved from financial news reporting to general national and global news reporting and finally, to adding local New York news. The rivalry of these two news providers has increased due to _____________. A. increased dynamic capabilities B. increased market commonality C. erosion of first mover advantages D. the choice of tactical over strategic actions

answer

B

question

When any two firms have both a high degree of market commonality and highly similar resources, a ______________ threat is present. A. weaker competitive B. stronger competitive C. successful marketing D. stronger marketing

answer

B

question

Which of the below best describes the competitive tendencies of small firms? A. Small firms tend to signal their competitive actions long before they launch those actions, because they lack legitimacy in the marketplace B. Small firms typically have more resources available as they undertake competitive attacks than do large firms. C. Small firms are more nimble and can respond quickly to competitive attacks. D. Small firms are more nimble and cannot respond quickly to competitive attacks.

answer

C

question

Southwest Airlines began its no frills, no meals strategy in the late 1960s as a direct assault on the major carriers of the day. What type of competitive action does this represent? A. A tactical action because it is a refinement of an existing strategy. B. A strategic action because is includes a refinement of an existing strategy. C. A strategic action because it was a breakthrough innovative offer. D. A guerilla offensive because it is fast and will surprise its rivals.

answer

A

question

All of the following are examples of strategic actions a firm might take EXCEPT _____________. A. partner with competitors to reduce competitionB. expand into neglected marketsC. change product packaging D. tie up raw materials sources

answer

C

question

The best example of a tactical action that a company might use in response to a competitive attack is to _____________. A. acquire the competitor B. target the markets of the rival C. expand into new geographical areas D. offer price discounts and rebates

answer

D

question

Which of the following is not a factor that affects how a competitor will respond to a competitive attack? A. how dependent the competitor is on that industry or particular market segment B. the degree of market power and reputation of the company that initiated the attack C. the resources which are available for a firm to respond D. the stock market reaction to the initial competitive attack

answer

D

question

Which of the following refers to a situation where a company has a high concentration of its business in a particular industry market? A. competitor resources B. market dependence C. resource similarity D. actor's reputation

answer

B

question

A firm is considering a large price cut on its leading product as a way to gain market share. One executive strongly disagrees with the price cut. He observes that they are in the same marketplace as their rivals and do not have any competitive advantages in their cost structure. If they cut prices, their competitors will likely do the same. The end result is that everyone will make less money. These arguments are an example of ________________. A. a strategy of forbearance B. a strategy of co-opetition C. a hardball strategy whereby competitive actions are not undertaken without a clear advantage D. a weakness strategy that leads a company into constant decline

answer

A

question

A firm is considering a large price cut on its leading product as a way to gain market share. One executive strongly disagrees with the price cut. He observes that they are in the same marketplace as their rivals and do not have any competitive advantages in their cost structure. If they cut prices, their competitors will likely do the same. The end result is that everyone will make less money. These arguments are an example of ________________. A. a strategy of forbearance B. a strategy of co-opetition C. a hardball strategy whereby competitive actions are not undertaken without a clear advantage D. a weakness strategy that leads a company into constant decline

answer

A

question

A firm is considering a large price cut on its leading product as a way to gain market share. One executive strongly disagrees with the price cut. He observes that they are in the same marketplace as their rivals and do not have any competitive advantages in their cost structure. If they cut prices, their competitors will likely do the same. The end result is that everyone will make less money. These arguments are an example of ________________. A. a strategy of forbearance B. a strategy of co-opetition C. a hardball strategy whereby competitive actions are not undertaken without a clear advantage D. a weakness strategy that leads a company into constant decline

answer

A

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