Deck 12: Entrepreneurial Finance

Question 1

In the consensus approach, the leader is seen as willing to relinquish his or her priorities and power in the interests of an overall goal, and the appropriate people are included in setting cross-functional or cross-departmental goals and in making decisions.

Answer 1

True

Question 2

When sales exceed $10 million and employees number over 75, the core leadership mode is leading team leaders.

Answer 2

True

Question 3

Firms with higher growth rates are usually found in industries that are also developing rapidly.

Answer 3

True

Question 4

Between $5 million and $15 million in sales and 25 to 75 employees, the core leadership mode is doing.

Question 5

Which of the following can be one of the most disrupting events during a period of explosive growth?

A) Bringing in new members of the venture team
B) Closing a round of expansion funding
C) Expanding of space or facilities
D) Overcoming a challenge from an entrenched competitor
E) Financing

Question 6

No single leadership pattern seems to characterize successful ventures.

Question 7

A challenge in growing firms is:

A) Market opportunities start to diminish, customers have already been reached
B) An abundance of opportunities exist, choosing which to pursue is difficult
C) Hierarchies start to take hold and people come to rely on bureaucratic procedures
D) Formal structures and control start to develop
E) Weaknesses are identified and people must be fired

Question 8

For entrepreneurs, the final scorecard of the value creation process is:

A) Innovation; meeting market need and launching new goods and services
B) Customer satisfaction
C) Happiness of self and employees
D) Longevity of the business
E) Net worth

Question 9

The faster the rate of growth, the greater the potential for difficulty.

Question 10

Organizational climate can be described along six basic dimensions, they are:

A) Clarity, commitment, esprit de corps, recognition, standard, and strength
B) Clarity, commitment, esprit de corps, recognition, responsibility, and standards
C) Clarity, commitment, esprit de corps, recognition, responsibility, and vitality
D) Clarity, commitment, confidence, esprit de corps, responsibility, and strength
E) None of the lists contains the 6 dimensions

Question 11

Culture and climate is created both by the expectations people bring to the organization and by the practices and attitudes of the key leaders.

Question 12

In this stage of the enterprise's life, the defining characteristic is to decide whether or not to destroy or teach and share.

A) Wonder
B) Blunder
C) Thunder
D) Plunder
E) Asunder or return to Wonder

Question 13

Scoring well on the Hay System leads to higher pay, a better position/promotion, and power. It is based on all of the following except:

A) Number of direct reports
B) Sales volume
C) Size of facilities
D) Operating and capital budget
E) All of the answers are components in the assessment

Question 14

By the 1990s, the Hay System had become the leading method of evaluating entrepreneurial performance.

Question 15

Studies have shown that as long as proper systems are in place, organizational culture is not a major factor in how well a particular firm will deal with growth.

Question 16

Until sales reach approximately $5 million and employees number about 25, the core leadership mode is one of leading.

Question 17

Most lead entrepreneurs forgo building consensus and avoid open confrontation choosing to focus on tasks.

Question 18

In the chain of greatness model, an entrepreneurial mind-set and values lead to widespread responsibility and accountability.

Question 19

The chain of greatness is based on the following elements:

A) Vision, Results, Responsibility/Accountability, Perpetual learning culture, and Entrepreneurial mind-set and values
B) Vision, Actions, Results, Evaluation/Feedback, and Resources
C) Vision, Responsibility/Accountability, Organization Structure, Motivation of venture team, and Financial viability of the opportunity
D) Vision, Actions, Results, Resources, Motivation of venture team, and Financial viability of the opportunity
E) Actions, Resources, Results, Evaluation/Feedback, and Viability of opportunity

Question 20

In highly successful ventures, leadership is based on expertise rather than on authority.

Question 21

Describe the common elements of a leadership and a culture that can develop what the authors refer to as a "chain of greatness."

Question 22

In the chain of greatness model, what is fostered by the development of a perpetual learning culture?

Question 23

As the size of the firm increases, what are the three core leadership modes that entrepreneurs are likely to encounter?

Question 24

Describe how effective group communication is facilitated in successful entrepreneurial firms.

Question 25

List four dimensions of organizational climate.

Question 26

In hyper-growth situations where cash burn rates are racing ahead of collections, what measures need to be in place to avoid chaos and possible collapse?

Question 27

List four approaches to entrepreneurial leadership.

Question 28

Describe the organizational structure that is typical of successful entrepreneurial ventures.