Deck 2: The Entrepreneurial Mind: Crafting a Personal Entrepreneurial Strategy

Question 1

The highly dynamic, changing character of technology, markets, and competition make it impossible to know all your competitors today, let alone five years from now.

Answer 1

True

Question 2

Entrepreneurship can include organizations of all types and in all stages.

Answer 2

True

Question 3

There is often a direct correlation between creativity and innovation and the level of resources available at the start of a venture.

Answer 3

True

Question 4

To achieve market penetration, fast growth firms must initially deliver product and service benefits at below-market prices.

Question 5

Small, simple businesses are more affordable, more manageable, less demanding, and less risky than high-potential ventures.

Question 6

Entrepreneurship does not occur in the public sector.

Question 7

The Threshold Concept proposes that the odds of success change as a venture reaches a critical mass of over $8 million in sales and 50 employees.

Question 8

Private investors have less stringent investment criteria than venture capitalists and are therefore an easier sell.

Question 9

Many successful entrepreneurs have created their own investment pools, but they do not compete directly with venture capitalists for deals.

Question 10

For creativity and innovation to prosper, rigour and discipline must accompany the process.

Question 11

By focusing on the needs of their customers, large companies leave themselves vulnerable to attack from start-ups.

Question 12

Fast growth firms maintain control by selectively granting employee stock ownership.

Question 13

Failure is part of the dynamics of innovation and economic renewal.

Question 14

While government data, research, and business mortality statisticians may not agree on the precise failure and survival figures for new businesses, they do agree that moderate success is the rule, not the exception with new ventures.

Question 15

The most effective entrepreneurial leaders of fast-growth companies practice top-down management and administration.

Question 16

Entrepreneurship results in the creation, enhancement, realization, and renewal of value, not just for owners, but for all participants and stakeholders.

Question 17

It is appropriate for an entrepreneur to 'think money first' with opportunities that will require venture funding at the seed stage.

Question 18

Unlike the venture capitalists, private investors are a prime source for less capital-intensive start-ups and early-stage businesses.

Question 19

One of the biggest mistakes aspiring entrepreneurs make is that they think too small.

Question 20

Bootstrapping can create significant competitive advantages.

Question 21

From year to year, Canadian venture capital activity:

A) Is relatively consistent.
B) Is consistent in the amount of dollars invested, but the number of deals varies.
C) Is consistent in the number of deals, but the volume of dollars invested varies.
D) Varies in both the amount of dollars invested and in the number of deals.
E) Is steadily increasing.

Question 22

Discuss the potential advantages and disadvantages of lifestyle ventures.

Question 23

Start-up failure rates vary by:

A) Industry
B) Province/Territory
C) Age of business (how old the venture is)
D) Market conditions and the stage of the business cycle
E) All of the answers are correct

Question 24

What are the three driving forces of the Timmons Model of the entrepreneurial process?

Question 25

Discuss the overall paradoxical conflict inherent in the entrepreneurial process.

Question 26

Discuss the liability of newness and liability of smallness arguments.

Question 27

Most entrepreneurs launching businesses, particularly the first time, run out of what quicker than they bring in customers and profitable sales?

Question 28

Over 50 percent of ideas presented to investors in the form of a business plan or a proposal attract enough interest to merit a due diligence review.

Question 29

The entrepreneurial process is iterative, it is based on what?

Question 30

The entrepreneurial process starts with the:

A) Strategy
B) Networks
C) Team
D) Opportunity
E) Money

Question 31

Fast growth firms should strive to create high impact, new product and service improvements with development expenditures that account for no more than approximately ________ percent of revenues.

A) 2
B) 6
C) 10
D) 15
E) 20

Question 32

A successful start-up venture, in addition to the strong leadership from the main entrepreneur, almost always involves building a team with what?

Question 33

Fast growth firms are careful not to link a defined exit strategy in the business plan with what the lead entrepreneur envisions as his or her long-term objectives.

Question 34

As exemplified with Model in the Timmons Model, opportunity, team, and resources ___________.

A) must be equal to one another
B) change in importance from one time period to the next
C) are all held together with communication
D) are all held together by leadership
E) rarely match

Question 35

Nearly ________ percent of the Canadian population is actively working on a new venture.

A) 1
B) 5
C) 10
D) 15
E) 25

Question 36

A good opportunity will exhibit which of the following:

A) Gaps in available information and knowledge
B) Inconsistencies in existing service and quality
C) High rates of change, discontinuities, and even chaos
D) All of the answers are correct

Question 37

Entrepreneurs with no desire to be with and work with their family may lead to develop a lifestyle venture.

Question 38

What is at the heart of the entrepreneurial process?

A) Innovation and creativity
B) Opportunity recognition
C) Teamwork
D) Marshalling resources
E) Cash flow

Question 39

To make money, you first have to ________ money.

A) earn
B) want
C) understand
D) find
E) lose