Deck 1: New Ventures: The Quiet Giant

Question 1

Entrepreneurship can only exist within the context of a newly created business.

Answer 1

False

Question 2

Due to the harsh regulatory environment in the United States, the amount of net new ventures that have been created has decreased on average for the past ten years.

Answer 2

False

Question 3

Small firms made up 99.7 percent of U.S. employing firms.

Answer 3

True

Question 4

The well-established support network that exists among entrepreneurs is one of the main advantages of starting a new business.

Question 5

The lack of a well-established support network is one of the major drawbacks of starting a firm.

Question 6

Lack of initial capital is the number one reason why most new ventures fail.

Question 7

A key factor in a person's decision to behave entrepreneurially is the existence of a viable business idea.

Question 8

Being the owner/manager for a new business has several benefits with being able to provide family members with a place of employment.

Question 9

The major issue regarding legal concerns when first starting up a business is obtaining competent legal advice early on can often prevent infringement disputes.

Question 10

The quest for new venture creation and the willingness to sustain that venture are directly related to an entrepreneur's prior work experiences

Question 11

New and emerging ventures make two indispensable contributions to the world economy. They are:

A) Not integral to renewal process of market economies
B) Generate a majority portion of world GDP
C) Support established market structures by benefiting major corporations through partnerships.
D) Mechanism by which millions enter the economic and social mainstream of our global society.

Question 12

______________ Is one of the 11 common characteristics of entrepreneurs

A) High need for status and power
B) External Locus of control
C) Willingness to take unforeseen risks
D) Tolerance for ambiguity

Question 13

What is one of the advantages of starting a new venture?

A) Well established support network
B) Opportunity for self-reliance
C) Consistent routine and stable workplace
D) Well defined roles and responsibilities

Question 14

What are some of the disadvantages of starting a new venture?

A) Bureaucracy of the organization as employees compete for positions
B) Sales fluctuations and uncertain revenue cyclicality
C) Dealing with laws and regulations regarding starting business
D) Lack of a well-established support network

Question 15

Why is lack of marketing research a new venture management trap for new entrepreneurs?

A) Market research would allow a new venture to know exactly how much money they will make
B) Changes in market conditions can leave a firm poorly positioned to seize a market share
C) Market research provides the roadmap for what a new venture should do for the next 10 years
D) Changes in market conditions can be easily predicted with just a little market research performed

Question 16

What is a failure to diversify market? (In the context of new ventures)

A) Selling only one product to the market which could possibly go out of style within a short timeframe
B) Not having enough companies within a portfolio so that the risk isn't properly diversified away
C) Contracting all of the firm's output to one buyer for all of its products
D) Having multiple products, but receiving the lion's share of revenue from one product

Question 17

What is the number one reason why new ventures fail?

A) Lack of initial capital raised
B) Fraud initiated by new employees
C) Natural Disaster or event related losses
D) Lack of understanding how to run an enterprise

Question 18

The decision to behave entrepreneurially is the result of the interaction of several factors which include:

A) The existence of a viable business idea
B) The individual's personal characteristics
C) The relevant business environment
D) All of the above

Question 19

What does the chapter highlight as the key to addressing and resolving the world's existing & emerging challenges?

A) Big data
B) Technological innovation and advancement coming out of Silicon Valley
C) Cross cultural collaboration and diverse entrepreneurial talent
D) None of the above

Question 20

With respect to the integrated definition of entrepreneurship described in chapter 1, elaborate what this meaning of entrepreneurship entails. Be sure to touch on the five essential ingredients.

Question 21

What is an Exponential Organization and why is it important?

Question 22

Imagine you are a New Venture consultant for Cecil regarding his starting a cloud storage business. What do you see as his major issues, and how do you propose he manages it successfully?

Question 23

What are some of the disadvantages of starting a new venture? How can these issues be mitigated?

Question 24

What are some of the specific cause of new venture failure as outlined in the chapter?