Question 1

Bill and his founding team were talented programmers.The hard-working team handled all aspects of the business and continued doing so as the business grew.Soon, there were problems with the accounting system, and issues arose because they had misclassified an employee as a general contractor.Which of the following would be a likely cause of failure?
A)lack of ability
B)process inadequacy
C)uncertainty
D)inattention

Accepted Answer

A

Question 2

Frances had a wonderful product, but her salesforce frequently argued over sales tactics and territories.Conflicts arose over issues unrelated to the business, such as lifestyles and work start times.Which top reason for startup failures was represented in this scenario?
A)no market need
B)not the right team
C)poor marketing
D)lost focus

Accepted Answer

This scenario represents the top reason for startup failure "not the right team." Frances' salesforce is not functioning effectively due to conflicts and personal issues. This indicates a problem with the team dynamics and composition.

Question 3

A pivot would be described as which of the following?
A)a difficult situation that changes the nature of your business
B)the nature of the obstacle that must be overcome to avoid failure
C)a change in direction in response to a small failure
D)a catastrophic failure

Accepted Answer

A pivot is a change in direction in response to a small failure or realization that the current strategy is not working as intended, often used in business to adjust and improve.

Question 4

What is the typical reaction of successful entrepreneurs to failures, particularly small failures?
A)they have very few failures because they do everything to avoid them
B)they get out of the business as early as possible in order to cut their losses
C)they see failures as opportunities to build on what they learned or capture new opportunities
D)they try to make failures happen to increase the overall creative tension

Accepted Answer

Successful entrepreneurs see failures as an opportunity to learn and improve. They understand that small failures are a part of the journey towards success, and they use them to grow and adapt their strategies.

Question 5

A "big fail" would be typical of which of the following?
A)a situation that requires a quick reaction
B)a situation that requires a change in direction
C)a process that unfolds over time
D)a process that represents an obstacle that must be overcome

Accepted Answer

A "big fail" typically refers to a process that unfolds over time, where the failure becomes apparent as the process progresses.

Question 6

Which of the following would describe a "business failure"?
A)a business that does not meet its financial projections
B)the termination of a commercial organization due to bankruptcy or liquidation
C)failure to meet stockholder expectations
D)a business that is not earning as much as it costs to run the business

Accepted Answer

Business failure refers to the termination of a commercial organization due to bankruptcy or liquidation.

Question 7

What can be said of small failures in the journey of the entrepreneur?
A)they generally contribute to the overall failure of the company
B)they usually have no ultimate effect on the business or the entrepreneur
C)they are the low points but are manageable and help the entrepreneur learn
D)they can spin out of control

Accepted Answer

The answer of What can be said of small failures...

Question 8

Casey just learned that a competitor to his fast-food restaurant is opening up.Casey responds by revising his menu to include more ethnic specialties and starts a customer loyalty club that gives free drinks for every five visits.This is an example of which of the following?
A)a marketing plan
B)a pivot
C)a small failure
D)an over reaction

Accepted Answer

Casey's response to the new competitor is a pivot, which is a strategic change in direction taken in response to feedback or a change in the market. By revising the menu and introducing a loyalty program, Casey is adapting his business to better meet the needs of his customers and stay competitive. A marketing plan would involve a more comprehensive and long-term strategy for promoting the business, while a small failure or overreaction would not adequately describe Casey's actions.

Question 9

What is one of the consequences of fear of failure?
A)We fail to tackle the reasons behind the failure.
B)It leads to excess worry.
C)We eventually learn to avoid failure altogether.
D)It leads to dishonesty.

Accepted Answer

Fear of failure can lead us to avoid tackling the reasons behind the failure, as we are afraid of the potential consequences.

Question 10

Peter discovered difficulties in his business, a home-decorating company that sold blinds, window wear, and fabric-based solutions.Peter won many awards for his designs and was very well liked by his talented employees.They all worked hard at building the business.However, his business soon suffered losses due to misplaced orders and incorrectly executed projects.Which of the following would be the most likely cause of the failure?
A)lack of ability
B)process inadequacy
C)uncertainty
D)inattention

Accepted Answer

The issues of misplaced orders and incorrectly executed projects suggest that there may be flaws in the business processes. Therefore, process inadequacy is the most likely cause of the business's failure. Lack of ability or inattention could also have contributed to the problem, but there is no direct evidence to suggest this. Uncertainty is not a likely cause based on the information provided.

Question 11

What is the major advantage of business failure?
A)Once the business is closed, stressed is reduced.
B)Avoiding failure makes the entrepreneur more vigilant.
C)Failure makes learning for future performance more intensive.
D)Those who aren't suited for business get our early.

Accepted Answer

The major advantage of business failure is that it can create a significant learning opportunity for future success. When entrepreneurs fail, they are forced to critically evaluate their mistakes, identify what led to the failure, and develop strategies to avoid similar problems in future ventures. This intense learning process can help entrepreneurs evolve and become more knowledgeable about the industry and the factors that affect their success.

Question 12

Ellen has been in business for less than 3 months.Because she wants to build the client base, she has delegated all operations and "back room" functions to her new team.As she continues to concentrate on marketing, what potential cause of failure might occur?
A)lack of ability
B)process inadequacy
C)uncertainty
D)inattention

Accepted Answer

Ellen's focus on marketing while delegating all other operations might lead to inattention to crucial business functions, potentially causing failure.

Question 13

Justin opened a physical therapy business in a new location and hired two key therapists well known in the area.Recently, the therapists informed Justin that they are starting their own physical therapy clinic and have been talking with all the referring physicians, telling them of their plan.Which top reason for startup failures was represented in this scenario?
A)bad location
B)no market need
C)get outcompeted
D)not the right team

Accepted Answer

The reason for this startup failure is that the two key therapists, who were part of the original team and likely played a significant role in the success of the business, are leaving to start their own clinic. This highlights the importance of having the right team in place to ensure the success of a startup.

Question 14

We often fail to hear about the reasons for business failures.Why is this the case?
A)Expressing the emotions of failure are difficult so people do not talk about the failure.
B)People may be unaware of their role in the failure.
C)People blame external reasons for their failure.
D)No one is interested in hearing about failures.

Accepted Answer

Expressing the emotions of failure are difficult so people do not talk about the failure.

Question 15

What is one of the consequences of fear of failure?
A)People can learn to avoid failure.
B)The emotional reaction inhibits us from learning from the experience.
C)It leads to dishonesty.
D)It leads to excess worry.

Accepted Answer

Fear of failure can cause an emotional reaction that inhibits us from learning from our experiences. We may become so preoccupied with avoiding failure that we miss important opportunities for growth and development.

Question 16

Which of the following is one of the conclusions of Amy Edmondson?
A)all failures are blameworthy
B)failures exist on a spectrum that range from praiseworthy to blameworthy
C)failure is always bad in some way
D)failure comes from lack of skills

Accepted Answer

Amy Edmondson argues that failures exist on a spectrum that includes both blameworthy and praiseworthy failures, depending on the context and circumstances. She advocates for a culture that encourages learning from failures rather than punishing them, in order to improve organizational learning and resilience.

Question 17

If we develop the ability to see the learning opportunity in failure, which of the following will occur?
A)we will lose the emotional fear reaction to failure
B)we will be able to anticipate failure as natural and embrace the learning opportunity
C)we will see that failure can be avoided altogether
D)we will know how to react to the "big failure"

Accepted Answer

By seeing failure as a learning opportunity, we can anticipate it as a natural part of the process and embrace the lessons it offers, rather than fearing it or believing it can be completely avoided.

Question 18

This type of failure is caused by crossing an ethical boundary, leading to mismanagement of the venture:
A)inattention
B)deviance
C)lack of ability
D)uncertainty

Accepted Answer

Deviance refers to breaking social or ethical norms, which can lead to mismanagement of the venture. This type of failure can occur when individuals engage in illegal activities or behave unethically in managing the business, leading to negative consequences.

Question 19

Steve operated a successful massage and health spa in a lucrative resort location.He used the same business model when he built a new spa in the next town.While he had the same services, and the same quality, the business failed.Which of the top reasons for startup failure might be represented in this scenario?
A)product mis-timed
B)pivot gone bad
C)pricing/cost issues
D)investor interest

Accepted Answer

The failure could be due to pricing/cost issues, as the new location might have different economic conditions or customer expectations, affecting the business's ability to attract and retain clients at the same pricing model.

Question 20

Steve and Carl manufactured a smartphone-related product marketed for personal safety.Not knowing who the market would be, they developed the product for the senior citizen market and also the general public.They also had a version of the product for children.Which of the following might be a cause for failure?
A)inattention
B)deviance
C)lack of ability
D)uncertainty

Accepted Answer

The cause for failure could be uncertainty, as Steve and Carl did not have a clear understanding of their target market before developing the product. This could lead to the product not resonating with either the senior or general public markets, and the children's version not being enough to sustain the business. Inattention or lack of ability could also contribute to failure, but without further context, it is less likely to be the primary cause. Deviance, or intentional deviation from norms, is not applicable in this scenario.

Quiz 11: Learning From Failure

Frances had a wonderful product, but her salesforce frequently argued over sales tactics and territories.Conflicts arose over issues unrelated to the business, such as lifestyles and work start times.Which top reason for startup failures was represented in this scenario?

A pivot would be described as which of the following?

What is the typical reaction of successful entrepreneurs to failures, particularly small failures?

A "big fail" would be typical of which of the following?

Which of the following would describe a "business failure"?

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

Casey just learned that a competitor to his fast-food restaurant is opening up.Casey responds by revising his menu to include more ethnic specialties and starts a customer loyalty club that gives free drinks for every five visits.This is an example of which of the following?

What is one of the consequences of fear of failure?

What is the major advantage of business failure?

Ellen has been in business for less than 3 months.Because she wants to build the client base, she has delegated all operations and "back room" functions to her new team.As she continues to concentrate on marketing, what potential cause of failure might occur?

We often fail to hear about the reasons for business failures.Why is this the case?

What is one of the consequences of fear of failure?

Which of the following is one of the conclusions of Amy Edmondson?

If we develop the ability to see the learning opportunity in failure, which of the following will occur?

This type of failure is caused by crossing an ethical boundary, leading to mismanagement of the venture: