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Chapter 8: MC

Terms in this set (23)

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
D) Future Work
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
C) Discover; Evaluation
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
D) Durable
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
D) Public Equity
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
D) Personal savings and the contributions of family and friends
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.
B) Venture capital is a form of public equity financing
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
C) Lone wolf entrepreneurs
______________ 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
A) Strategic Alliances
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
D) Clarifying job responsibilities
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
C) Proactive new entry
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
B) Quickly
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
D) Riskiness; Innovativeness
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
A) Imitative
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
C) Adaptive
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
C) Exceptional customer service
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
D) Extensive investment in order to achieve economies of scale
According to the text, which of the following might 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.
A) Incumbent firms are constantly seeking opportunities to specialize in market niches
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
D) to find new sources of raw materials
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
B) Market commonality
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
B) Stronger competitive
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.
A) A tactical action because it is a refinement of an existing strategy
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
D) offer price discounts and rebates
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
B) Market dependence
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