Deck 3: The Entrepreneurial Process

Question 1

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

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

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

Question 8

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

Question 9

By following the prevailing best-management practices,large corporations have been able to successfully thwart competitive challenges of young entrepreneurial firms.

Question 10

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

Question 11

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

Question 12

Bootstrapping can create significant competitive advantages.

Question 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

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 18

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

Question 19

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

Question 20

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

Question 21

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

Question 22

What is at the heart of the entrepreneurial process?

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

Question 23

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 an ________ approach.

Question 24

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

Question 25

Entrepreneurs with a desire to be with and work with their family may lead them to develop a ________ business.

Question 26

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
D) All of the above

Question 27

What are the three driving forces of the Timmons Model?

Question 28

"Durability" of an opportunity relates to:

A) Return on Investment
B) Market demand
C) Barriers to entry
D) All of the above

Question 29

Discuss the potential advantages and disadvantages of lifestyle ventures.

Question 30

What is at the base of the Timmons Model?

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

Question 31

Discuss the overall paradoxical conflict inherent in the entrepreneurial process.

Question 32

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

Question 33

Which of the following is not a factor in why big companies fail to respond effectively to entrepreneurial competition?

A) Arrogance
B) Staying close to their customers
C) Bureaucracy
D) All are factors

Question 34

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

Question 35

The entrepreneurial process starts with the:

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

Question 36

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 37

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