Deck 11: Designing an Entrepreneurial Organization

Question 1

There probably is no single best organizational structure for all types of ventures in all situations.

Answer 1

True

Question 2

To design a business effectively, it's important for the entrepreneur to identify the _____ for the business-what the business has to do to be successful.

A) business processes
B) core values
C) organizational culture
D) strategic focus
E) key success factors (KSFs)

Answer 2

E

Question 3

_____ refers to an organization's tendency to develop its own characteristic way of doing things.

A) Organizational  process
B) Design thinking
C) Corporate strategy
D) Corporate  culture
E) Organizational  structure

Answer 3

D

Question 4

Which of the following is NOT a core tenet of the design thinking approach?

A) Design thinking is about objective target markets or employees who perform functions.
B) Design thinking is about flexibility and adaptability to uncertainty.
C) Design thinking involves telling stories.
D) Design thinking is about people's behaviors and emotions.
E) Design thinking is more about doing than talking.

Question 5

In very simplistic terms, organizational culture is the _____ of an organization.

A) personality
B) strategy
C) context
D) purpose
E) design

Question 6

The number of shares authorized when a corporation is formed is purely arbitrary.

Question 7

Software companies are a classic example of a(n) _____ organization.

A) informal
B) centralized
C) distributed
D) hierarchical
E) matrix

Question 8

According to the design thinking approach, workflow should emphasize

A) jobs and tasks assigned to functional departments as a permanent assignment .
B) jobs and tasks assigned to individuals as a permanent assignment .
C) projects managed by specialty divisions .
D) collective ownership and dissemination of jobs .
E) projects assigned to multidisciplinary teams .

Question 9

Of the various areas where mobile businesses can be found, malls pose perhaps the most difficult challenge to secure.

Question 10

Companies are typically distributed in all of the following ways EXCEPT

A) geographically.
B) centrally.
C) organizationally by department or project group.
D) temporally by time zone.
E) by stakeholder groups.

Question 11

Locating a site for a new business normally begins with identifying the area of the country that seems best suited to the type of business the entrepreneur is starting.

Question 12

Using a stock-vesting agreement is one way to make sure that only stock that has been earned will be distributed.

Question 13

As the sources of competitive advantage at startup lose their power and competition intensifies, organizational design and capabilities become less important in a company's long-term success.

Question 14

Today it is much easier for a new venture to achieve total in-house control of its value chain.

Question 15

The Family and Medical Leave Act provides for up to 12 weeks of paid leave for employees who are dealing with family issues.

Question 16

Informal networks are

A) t he same as formal networks.
B) t he skeleton of the body of an organization.
C) t he established policies of an organization.
D) t he real power base in an organization.
E) N one of these are correct.

Question 17

The _____ of a region or community is simply the major source of income for the area.

A) economic base
B) trade area
C) market
D) municipality
E) enterprise zone

Question 18

When entrepreneurs develop job descriptions, they should include _____ to prepare for the eventuality of hiring employees.

A) legal requirements
B) organizational charts
C) behavioral profiles
D) process maps
E) important employment laws

Question 19

Founder's stock is not restricted.

Question 20

An economic base is the region from which an entrepreneur expects to draw customers.

Question 21

Which of the following gives employees the right to participate in the profits of a company at a specified percentage, even though they are not full shareholders with voting rights?

A) Bonus plans
B) Deferred compensation plans
C) C apital appreciation rights
D) P rofit-sharing plans
E) None of these are correct.

Question 22

The entrepreneur and the founding team often perform all the functions when a business is starting, and much of the work is accomplished through a(n) _____ network of relationships.

A) virtual
B) formal
C) informal
D) conventional
E) hierarchical

Question 23

With _____, a series of goals are set by a company with input from an employee, and as the employee reaches each goal, the bonus is given.

A) a  deferred compensation plan
B) a profit-sharing plan
C) capital appreciation rights
D) a  bonus plan
E) a  personal incentive plan

Question 24

Industrial parks are common locations for

A) manufacturing companies.
B) distributors.
C) retail businesses.
D) wholesale businesses.
E) service businesses.

Question 25

Which of the following employment laws applies to companies of any size?

A) Immigration Reform and Control Act
B) Americans with Disabilities Act
C) Fair Labor Standards Act Equal Pay Provisions
D) Family and Medical Leave Act
E) All of these are correct.

Question 26

The initial stock issued to the first shareholders of a corporation is sometimes referred to as _____ stock.

A) preferred
B) founder's
C) reacquired
D) treasury
E) t racking

Question 27

A way in which startups become more flexible and responsive, as well as grow more rapidly, is by forming _____, or teams of businesses, to share resources and reduce costs.

A) virtual partners
B) strategic alliances
C) research teams
D) temporary networks
E) centralized databases

Question 28

During an interview, understanding who the candidate is can be effectively accomplished in part by asking

A) the age of the candidate.
B) open-ended questions.
C) lifestyle questions.
D) questions about personal beliefs.
E) closed-ended questions.

Question 29

The Age Discrimination in Employment Act applies to all companies with _____ or more employees.

A) 20
B) 50
C) 70
D) 100
E) 300

Question 30

Abigail is preparing to interview candidates for an administrative assistant position at her new startup. Which of the following questions is OK for Abigail to ask?

A) Are you married?
B) What are the ages of your children?
C) What is your age?
D) What is your nation of origin?
E) None of these are correct.

Question 31

_____ are subject to the ERISA rules for employee retirement programs.

A) Stock options
B) Profit-sharing plans
C) Bonus plans
D) Capital appreciation rights
E) Deferred compensation plans

Question 32

Using a(n) _____ agreement is one way to make sure that only stock that has been earned will be distributed.

A) employee stock ownership
B) shareholder
C) stock-vesting
D) minority ownership
E) preferred stock

Question 33

Which of the following is NOT a formal interdependent process?

A) The p lanning system
B) Control mechanisms
C) Compensation
D) Team building
E) Reward policies

Question 34

Which of the following is NOT a component that makes up the design of an entrepreneurial company?

A) P rocesses
B) People
C) Location
D) Culture
E) None of these are correct.

Question 35

Which of the following refers to a basic ownership interest in a company whereby holders share in both the successes and the failures of the business and benefit through dividends and the appreciating value of the company?

A) C ommon stock
B) Founder's stock
C) Preferred stock
D) Reacquired stock
E) None of these are correct.

Question 36

At startup, the organization chart is more likely to be _____, reflecting the fact that the entrepreneur and the founding team often perform all the functions when the business is starting.

A) flat
B) open
C) tall
D) virtual
E) hierarchical

Question 37

A(n) _____ is the region from which you expect to draw customers.

A) economic base
B) enterprise zone
C) community center
D) trade area
E) market

Question 38

Capital appreciation rights are also known as "_____ stock."

A) diluted
B) phantom
C) preferred
D) common
E) founder's

Question 39

Title VII of the Civil Rights Act amended the original Civil Rights Act to include discrimination

A) against people with physical or mental disabilities.
B) on the basis of sex.
C) on the basis of religion.
D) on the basis of gender identity.
E) on the basis of national origin.

Question 40

All of the following are alternatives to conventional business locations EXCEPT a(n)

A) incubator.
B) shared space.
C) long-term building  lease.
D) temporary tenant agreement.
E) mobile location.

Question 41

Describe the considerations for choosing a retail site. 
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Question 42

Discuss human resource leasing.

Question 43

Describe incubators.

Question 44

Briefly discuss the core tenets of a design thinking approach.

Question 45

Identify the issues that must be contemplated before giving someone ownership rights in a company.

Question 46

Briefly discuss founder's stock.

Question 47

Briefly explain why choosing the right location is so important for a startup.

Question 48

List the four levels that companies are typically distributed on.

Question 49

Under the laws administered by the Equal Employment Opportunity Commission (EEOC),  what aspects of an applicant's life should  you refrain from asking  before the point of hire?

Question 50

Define strategic alliances. What potential benefits do strategic alliances offer? What problems can occur when using strategic alliances?