Question 1

Essential to the idea of intelligent failure is that this sort of failure ______.

Accepted Answer

Intelligent failure is failure that provides valuable new knowledge, allowing individuals or organizations to learn and improve from their mistakes.

Question 2

Failure as a result of the wrong procedures being set up in the organization so communication breaks down among employees and things begin to fall through the cracks is known as ______.

Accepted Answer

Process inadequacy refers to the situation where the organization has the wrong procedures in place, which causes communication breakdown and employees fail to complete their tasks effectively. This can lead to failure in achieving organizational goals. Uncertainty refers to the lack of clarity or predictability, deviance refers to the violation of organizational norms, and lack of ability refers to the incapacity to perform a task due to insufficient knowledge or skills.

Question 3

What behavior is at the top of the failure spectrum?

Accepted Answer

Deviance is at the top of the failure spectrum because it involves intentional non-compliance with norms, rules, or directives, representing a more severe form of failure compared to inattention, uncertainty, or lack of ability, which might not involve deliberate actions.

Question 4

It is important for entrepreneurs to manage the negative emotions associated with failure so they can ______.

Accepted Answer

Managing negative emotions associated with failure is crucial as it allows entrepreneurs to begin the process of learning from their failure. By understanding what went wrong, entrepreneurs can work on improving their strategies and avoid making the same mistakes in the future. Avoiding the consequences of failure (B) or shifting the blame to others (D) are not productive approaches, and understanding external reasons for failure (C) can sometimes lead to a victim mentality, which may prevent entrepreneurs from taking responsibility and making necessary changes.

Question 5

Sasha developed a new technology for cordless charging of cellphones and other devices,but she misled her investors about the cost of producing the new chargers and the number of units she could supply.Which of the following is the most likely cause of failure here?

Accepted Answer

Deviance refers to behavior that goes against accepted norms and values. In this case, Sasha misled her investors by providing false information, which goes against ethical and legal norms. This behavior ultimately led to failure as the investors may have lost trust in her and the company.

Question 6

Justin opened a physical therapy business in a new location and hired two well-known therapists.Once the business was up and running,Justin began work on launching a restaurant in a neighboring town.With Justin at the restaurant most days,the physical therapy business began to flounder.Which startup failure is represented in this scenario?

Accepted Answer

The failure represented in this scenario is inattention. Justin's lack of attention to the physical therapy business while focusing on the restaurant caused it to flounder.

Question 7

According to the text,why do many see failure as the path by which individuals travel to develop into entrepreneurs?

Accepted Answer

The text states that failure can intensify cognitive processes involved in learning, leading to improvements in future performance. This suggests that many see failure as a path for individuals to develop into entrepreneurs because it can teach them valuable lessons and make them better equipped for future endeavors.

Question 8

Based on the description in the text,Jeff Bezos is a big believer in experimentation,especially when it comes to learning from ______.

Accepted Answer

The text specifically states that Jeff Bezos believes in experimenting and learning from failures, indicating that he values the process of trial and error and sees mistakes as valuable opportunities for growth. Therefore, the best choice is C) failures.

Question 9

What can be said of small failures in the entrepreneurial journey?

Accepted Answer

Small failures are a common occurrence in the entrepreneurial journey. However, they do not necessarily lead to the ultimate failure of the company. Instead, they are periods of setbacks that help the entrepreneur learn from their mistakes and make necessary adjustments to improve their business. These low points are manageable and should be viewed as opportunities for growth and development.

Question 10

Rory and Katie manufactured a smartphone-related product marketed for personal safety.Unsure about the best market segment to target,they developed a product for older adults and the general public but they decided to also market it for children.Which of the following is the most likely cause for failure here?

Accepted Answer

The most likely cause for failure is uncertainty. By targeting multiple market segments that have different needs and interests, Rory and Katie may struggle to effectively communicate the value of their product to each group. This could lead to confusion and uncertainty among potential customers, ultimately impacting sales and overall success.

Question 11

A change in direction in response to a small failure is called a ______.

Accepted Answer

A pivot is a strategic change in direction in response to a small failure or setback. It involves a shift in focus or approach to achieve success. Failure, termination, and retrenchment do not necessarily involve a change in direction or strategic shift.

Question 12

______ is caused by crossing an ethical boundary,leading to mismanagement of the venture.

Accepted Answer

Deviance refers to behavior that violates social norms and ethics. When an ethical boundary is crossed, it can lead to mismanagement of the venture, causing deviance. Inattention, lack of ability, and uncertainty can also contribute to mismanagement, but they are not necessarily caused by an ethical boundary being crossed.

Question 13

Amy C.Edmondson,professor of leadership and management at Harvard Business School,describes a spectrum for failure that runs from blameworthy to praiseworthy.According to Edmondson,a praiseworthy reason for failure is ______.

Accepted Answer

According to the given information, a praiseworthy reason for failure is "exploratory experimentation", which involves conducting market tests to get early feedback. Therefore, the correct choice is D.

Question 14

Founding CEO Alison led a team of talented programmers.The company quickly grew.Alison eventually stepped down as CEO because while she had strong technical skills,she realized she did not have the vision and skillset a CEO needed to lead a large corporation.Which of the following is likely the reason Alison stepped down?

Accepted Answer

Alison recognized her limitations in vision and skillset necessary for leading a large corporation, indicating a self-awareness of her lack of ability in certain areas required for the CEO role, rather than issues related to process, uncertainty, or inattention.

Question 15

The quality that enables people to work hard and sustain interest in their long-term goals is ______.

Accepted Answer

The quality that enables people to work hard and sustain interest in their long-term goals is grit. Grit is defined as passion and perseverance for long-term goals, working strenuously towards challenges and maintaining effort and interest over years despite failure, adversity, and plateaus in progress. Fear of failure, leadership, and the entrepreneurial mindset may be important factors in achieving goals, but grit is specifically the quality that enables people to work hard and sustain interest in their long-term goals.

Question 16

According to the text,we don't always hear about the reasons for business failures because ______.

Accepted Answer

Expressing the emotions of failure is difficult, as admitting failure is unpleasant, which is why we don't always hear about the reasons for business failures.

Question 17

Studies show that individuals who are ______ will go out of their way to avoid failure.

Accepted Answer

Individuals who are raised to believe that failure is unacceptable tend to avoid situations where the risk of failure is high. They may also become very self-critical and focus on their mistakes and shortcomings, which can lead to further avoidance of challenges. This mindset can be detrimental to personal growth and development.

Question 18

According to Stanford psychologist Carol Dweck,people with ______ tend to believe that intelligence and talent is something we're born with,and they avoid failure at all costs.

Accepted Answer

People with a fixed mindset tend to believe that intelligence and talent are predetermined and cannot be changed through effort or learning. They fear failure and are less likely to take risks or try new things because they believe their abilities are fixed. In contrast, those with a growth mindset believe that intelligence and talent can be developed through effort and persistence.

Question 19

Nour operated a successful massage and health spa in a lucrative resort location.She handled all reservations herself and if a customer called to make an appointment when she wasn't in the spa,she asked her employees to leave her a note.The notes sometimes went missing,resulting in angry customers.Which startup failure type is most likely represented in this scenario?

Accepted Answer

The scenario represents process inadequacy as the failure type since the spa's reservation system is not effective and reliable due to the flawed process of leaving notes that sometimes go missing.

Question 20

Which of the following describes a successful entrepreneur's typical reaction to failures,particularly small ones?

Accepted Answer

Successful entrepreneurs understand that failures are inevitable and see them as opportunities to learn and grow their business. They use failures as a chance to identify what went wrong, make necessary adjustments, and capture new opportunities that may arise as a result. Avoiding failures altogether is often impossible, and trying to make failures happen would not be a productive mindset for long-term success. Cutting losses and getting out of the business early may be necessary in some cases, but it is not a typical reaction for successful entrepreneurs.

Quiz 11: Anticipating Failure