Question 1

New ventures face several disadvantages due to their small size.

Accepted Answer

New ventures often have limited resources, less brand recognition, and less established networks compared to larger and more established companies, which can put them at a disadvantage.

Question 2

New ventures have several advantages due to their small size.

Accepted Answer

New ventures have the advantage of being small, which allows for more flexibility, agility, and the ability to innovate quickly. They can also make decisions quickly without being hindered by bureaucracy or extensive decision-making processes.

Question 3

It is important for the owner of a growing venture to maintain all decision-making authority

Accepted Answer

As a venture grows, it becomes increasingly difficult for one person to make all the decisions. It is important for the owner to delegate decision-making authority to trusted employees and experts in various areas. This allows for more efficient and effective decision-making and can ultimately lead to the long-term success of the venture.

Question 4

Owners of smaller growing ventures should learn to use time as a resource and not allow time to use them.

Accepted Answer

Time management is crucial for small business owners as they often have limited resources and need to utilize their time effectively in order to grow their business. Those who do not manage their time well may find themselves overwhelmed and unable to effectively achieve their goals.

Question 5

Entrepreneurs should strive to continue educating themselves on industry changes and managerial best practices.

Accepted Answer

Continuing education is important for entrepreneurs to stay up-to-date on industry trends, regulations, and new technologies, which can help them make informed decisions and remain competitive in the market. It can also help entrepreneurs develop new skills and managerial practices that can improve their business operations and leadership abilities.

Question 6

The level of failure the entrepreneur experienced and learned from at the start of the venture can be regarded as less than the level expected, tolerated, and learned from in the growth stage.

Accepted Answer

The level of failure expected, tolerated, and learned from tends to increase in the growth stage as the stakes get higher and the business becomes more complex. Therefore, the level of failure experienced and learned from in the start-up stage may be significant, but it is typically less than what is experienced and learned from in the growth stage.

Question 7

During the growth stage, an entrepreneur must transition into a more managerial style that focuses on the planning and organizational ability needed to run a business

Accepted Answer

During the growth stage, an entrepreneur must shift from being hands-on and reactive to being more strategic and proactive in managing the business. This requires a more managerial style that emphasizes planning, organization, delegation, and leadership in order to sustain the business's growth and competitiveness.

Question 8

Managerial assistance from outside of the organization is dangerous and should be avoided.

Accepted Answer

Managerial assistance from outside of the organization can bring new perspectives, expertise, and experience that the organization may not have internally. However, it should be carefully considered and managed to ensure that it aligns with the organization's goals and values. It is not necessarily dangerous, but it does come with potential risks and must be approached with caution.

Question 9

Before entering a foreign market, it is important to study the unique culture of the potential customers.

Accepted Answer

Understanding the unique culture and norms of the potential customers is important for successful entry into a foreign market. It helps businesses tailor their products and marketing strategies to fit the local preferences and avoid cultural missteps.

Question 10

Growth of the venture can often raise many ethical challenges, necessitating the formation of as strong ethical code within the firm.

Accepted Answer

As a venture grows, it may face various ethical dilemmas such as conflict of interest, fair competition, and social responsibility. Therefore, it is essential for the firm to establish a strong ethical code to ensure that it operates in an ethical and socially responsible manner.

Question 11

EBay pulled its operations out of China just two years after entering the country in 2006

Accepted Answer

eBay entered China in 2002 but faced strong competition from local companies like Alibaba's Taobao, leading to its withdrawal from the Chinese market by 2006.

Question 12

Hiring local talent who understand the market and empowering them with real decision-making authority is important while expanding to other countries

Accepted Answer

Hiring local talent can provide valuable insights into the market and cultural nuances that may affect business operations. Empowering them with decision-making authority can also lead to better decision-making and help build trust with local partners and customers.

Question 13

Which of the following is NOT an advantage commonly enjoyed by small ventures?

Accepted Answer

Better market knowledge is not exclusively enjoyed by small ventures. Large corporations also have the resources to conduct extensive market research and have access to a wider range of data and information. The other options are commonly cited advantages for small ventures.

Question 14

Which of the following is NOT one of the critical steps involved in Time Management?

Accepted Answer

The answer of Which of the following is NOT one...

Question 15

Which of the following are common expectations that communities have for small business owners? (Select all that apply)

Accepted Answer

The answer of Which of the following are common expectations...

Question 16

Though challenging during the growth stage, _______________ (through conferences, publications, and college courses) is an important way for growing entrepreneurs to stay abreast of industry changes and maintain a competitive edge.

Accepted Answer

Continuing management education, through conferences, publications, and college courses, helps entrepreneurs to stay informed about the latest industry trends and to learn new skills and strategies, which can give them a competitive edge. Regular vacation (B) and careful bookkeeping (C) are important for entrepreneurs, but they are not as directly related to staying informed and competitive in the industry. Networking (D) is also important, but it is not a substitute for continuing education.

Question 17

Venture-backed private companies (founded after 2003) that have grown in value to at least $1 billion are commonly referred to as ______________.

Accepted Answer

The term "unicorn" has been used to describe venture-backed private companies that have achieved a valuation of at least $1 billion since the venture capitalist Aileen Lee coined the term in 2013. "Superstars" and "rockstars" are not commonly used terms for this category of companies. "Unsustainable" may or may not be an appropriate term for a particular unicorn, but it does not describe the entire category.

Question 18

Using a sharp _______________ on what they set out to do, top management teams in high growth firms stay clearly directed on the specific strategic challenges in their industry.

Accepted Answer

The phrase "sharp market focus" fits in context in describing how top management teams in high growth firms stay directed on specific strategic challenges in their industry. The other choices are not as relevant in describing this concept.

Question 19

During the growth stage, managers can assess whether they have a good blend of control and participation by asking which of the following questions?

Accepted Answer

All of the options are valid questions to assess whether there is a good balance of control and participation in the organization. Option A evaluates the trust factor between managers and employees, option B evaluates whether resources are being allocated in a fair and equal manner, and option C assesses the level of autonomy and trust given to employees. Therefore, the best answer is D as all the options are valid ways to evaluate the balance of control and participation.

Question 20

During the growth stage, it is essential that an entrepreneur practice _______________ in order to free up his or her time to focus on planning and the challenges of business growth.

Accepted Answer

Effective delegation is key during the growth stage as the entrepreneur needs to delegate tasks to others to free up their time and focus on growing the business. Tolerance of failure, responsibility, and working late may also be important traits for an entrepreneur, but they do not directly address the need for delegation during the growth stage.

Quiz 12: Scaling Ventures: The Future