Deck 3: The Entrepreneurial Process

Question 1

Entrepreneurship requires inflexible strategies and tactics that are not nimble.

Answer 1

False

Question 2

"Durability" refers to the market advantage a company can enjoy by developing proprietary barriers to entry.

Answer 2

False

Question 3

In entrepreneurial companies,bootstrapping is a way of life that can create significant competitive advantages.

Answer 3

True

Question 4

The classic expression of entrepreneurship is the raw start-up company,an innovative idea that develops into a high-growth company.

Question 5

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

Question 6

Building long-term equity requires large,continuous reinvestment in people,products,and services in advance of revenues.

Question 7

In case of competition,the entrepreneurial task is to find a way to direct the arena of competition toward the areas where a new venture is at a competitive disadvantage.

Question 8

Successful entrepreneurs avoid creating their own investment pools,and they do not compete directly with venture capitalists for deals.

Question 9

While developing management strategies,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 10

Like venture capitalists,private investors are constrained by having to invest a lot of money in a relatively short period.

Question 11

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 12

One of the leading practices of fast-growth companies to achieve market penetration is to initially deliver product and service benefits at below-market prices.

Question 13

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

Question 14

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

Question 15

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 16

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

Question 17

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

Question 18

Knowing the difference between a good idea and a real opportunity is vital for would-be entrepreneurs.

Question 19

Private investors are funding more and more early-stage businesses,enabling risk mitigation before larger,institutional venture funds invest.

Question 20

Too much control and an obsession with orderliness are prerequisites to a successful entrepreneurial approach.

Question 21

Considering that the entrepreneurial process is opportunity-driven,in which of the following circumstances is there a possibility of greater opportunity?

A) When there are greater gaps in available information and knowledge
B) When there are greater consistencies in existing services and quality
C) When there are fewer inconsistencies in lead and lag times
D) When there is less robustness of the gross and net margins

Question 22

According to the Timmons Model,which of the following is true of resources as a key element in an entrepreneurial process?

A) An entrepreneur should stay away from bootstrapping,especially with new ventures.
B) An entrepreneur must understand that having too much money early on in the venture is the biggest factor that contributes to its success.
C) An entrepreneur must avoid doing more with fewer resources as it is detrimental to a company's competitive advantage.
D) An entrepreneur must strive to minimize and control resources,but not necessarily own them.

Question 23

Which of the following refers to consumer trends and behaviors that seek new products or services?

A) Entrepreneurial durability
B) Market readiness
C) Business plan feasibility
D) Product diversification

Question 24

The most effective entrepreneurial leaders of fast-growth companies avoid linking job performance standards to a business plan practice top-down management and administration.

Question 25

What is at the heart of the entrepreneurial process?

A) Innovation and creativity
B) Opportunity recognition
C) Team work
D) Marshalling resources

Question 26

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

Question 27

A(n)_____ provides the language and code for communicating the quality of the three driving forces of the Timmons Model and of their fit and balance.

Question 28

Which of the following is one of the leading financial practices of fast-growth firms?

A) Refraining from linking an entrepreneur's long-term objectives to a defined exit strategy in a business plan
B) Granting stock ownership to every employee
C) Anticipating only a single round of financing
D) Utilizing financing vehicles that retain an entrepreneur's voting control

Question 29

In entrepreneurship,"durability" of an opportunity relates to the:

A) return on investment.
B) market demand.
C) barriers to entry.
D) market readiness.

Question 30

In the entrepreneurial process depicted in the Timmons Model,the required shape,size,and depth of a team and resources are established by the shape,size,and depth of a(n)____.

Question 31

Rounding out the Timmons model of the three driving forces is the concept of _____ between and among these forces.

Question 32

The entrepreneurial process starts with:

A) strategy.
B) networks.
C) team.
D) opportunity.

Question 33

As depicted in the Timmons Model,the entrepreneurial process can be appreciated as a constant balancing act,requiring continual assessment,revised strategies and tactics,and a(n)_____ approach.

Question 34

Building a ________ venture means achieving economic,environmental,and social goals without compromising the same opportunity for future generations.

Question 35

Entrepreneurs for whom issues of family roots and location take precedence and thereby wish to be with and work with their family may lead them to develop a ________ business.

Question 36

What are the central themes or driving forces that dominate a highly dynamic entrepreneurial process?

Question 37

Write a brief note on the importance of timing in the entrepreneurial process.

Question 38

According to the threshold concept,which of the following ventures is likely to overcome failure?

A) A venture that reaches a critical mass of 10 people with $500,000 in revenues
B) A venture that reaches a critical mass of 5 people with $2 million in revenues
C) A venture that reaches a critical mass of 15 people with $2.5 million in revenues
D) A venture that reaches a critical mass of 6 people with $1.5 million in revenues

Question 39

According to the Timmons Model,what are the three driving forces of an entrepreneurial process?

Question 40

Which of the following forms the base of the Timmons Model?

A) Profitability
B) Sustainability
C) Lifestyle
D) Harvest

Question 41

Discuss the potential advantages and disadvantages of lifestyle ventures.

Question 42

Discuss the overall paradoxical conflict inherent in the entrepreneurial process.