Question 1

A determination of the appeal benefit which an acquisition needs to bring to the entrepreneur and/or the company needs to be recognized and validated.

Accepted Answer

The answer of A determination of the appeal benefit which...

Question 2

Organic growth implies growing a business from within,using its existing business lines as a basis for such growth.

Accepted Answer

Organic growth is the process of developing and expanding a business using its existing products, services, and operations, rather than through mergers, acquisitions, or external investments. This type of growth is often seen as more sustainable and less risky than other growth strategies.

Question 3

Immediate need to gain access to a particular market is a reason why developing a new business opportunity from the ground up represents significantly greater risk.

Accepted Answer

When developing a new business opportunity from the ground up, there is a greater risk because gaining access to a particular market may take time and resources, which can delay the success of the business. However, if the market is already established, such as in a franchise or licensing agreement, there is less risk in terms of market access.

Question 4

A determination of the value improvements which an acquisition needs to bring to the entrepreneur and/or the company needs to be recognized and validated.

Accepted Answer

The answer of A determination of the value improvements which...

Question 5

Expertise focuses on the linkage which key individuals and managers have with key external stakeholders and which are critical to the business venture's success.

Accepted Answer

The answer of Expertise focuses on the linkage which key...

Question 6

A determination of the value advantage which an acquisition needs to bring to the entrepreneur and/or the company needs to be recognized and validated.

Accepted Answer

It is important for entrepreneurs and companies to determine the value advantage that an acquisition can bring before proceeding with the acquisition. This ensures that the acquisition will be beneficial in terms of adding value to the entrepreneur or company.

Question 7

A determination of the value creation which an acquisition needs to bring to the entrepreneur and/or the company needs to be recognized and validated.

Accepted Answer

The answer of A determination of the value creation which...

Question 8

Assessing the Fit refers to conducting a search as to potential candidates for acquisition.

Accepted Answer

Assessing the Fit refers to evaluating how well a potential acquisition aligns with the acquiring company's strategic goals, culture, and operational capabilities, not the search for candidates.

Question 9

Acquisition growth implies growing a business from within,using its existing business lines as a basis for such growth.

Accepted Answer

Acquisition growth involves acquiring other businesses to expand a company's operations, not growing from within based on existing business lines.

Question 10

Integrating the operations refers to conducting a search as to potential candidates for acquisition.

Accepted Answer

Integrating operations typically refers to the process of combining and coordinating different functions or departments within a company, especially after a merger or acquisition, rather than searching for acquisition candidates.

Question 11

Motivation focuses on the linkage which key individuals and managers have with key external stakeholders and which are critical to the business venture's success.

Accepted Answer

Motivation typically refers to the internal drive or reasons that individuals have to achieve goals, rather than their external linkages with stakeholders.

Question 12

Determine the Price refers to conducting a search as to potential candidates for acquisition.

Accepted Answer

Determine the Price refers to the process of valuing a target company, whereas conducting a search for potential acquisition candidates is known as sourcing.

Question 13

Synthetic growth implies growing a business from within,using its existing business lines as a basis for such growth.

Accepted Answer

The answer of Synthetic growth implies growing a business from...

Question 14

The long-term capital commitment required to generate the scale needed to ensure profitability and sustainability is a reason why developing a new business opportunity from the ground up represents significantly greater risk.

Accepted Answer

Developing a new business opportunity from the ground up requires a significant long-term capital commitment to achieve the necessary scale for profitability and sustainability. Therefore, it represents a higher level of risk.

Question 15

"Skin in the Game" focuses on the linkage which key individuals and managers have with key external stakeholders and which are critical to the business venture's success.

Accepted Answer

"Skin in the Game" by Nassim Nicholas Taleb primarily discusses the concept of risk-taking and accountability, emphasizing that individuals should have a personal stake in the outcomes of their decisions, rather than focusing on the linkage with external stakeholders.

Question 16

Intrinsic growth implies growing a business from within,using its existing business lines as a basis for such growth.

Accepted Answer

The answer of Intrinsic growth implies growing a business from...

Question 17

Creating new market space as a first mover is a reason why developing a new business opportunity from the ground up represents significantly greater risk.

Accepted Answer

Developing a new business opportunity as a first mover can be risky due to untested markets and uncertain demand, but creating new market space can also offer significant competitive advantages and opportunities for growth.

Question 18

The length of time it may take to develop the competencies or capabilities internally to successfully compete is a reason why developing a new business opportunity from the ground up represents significantly greater risk.

Accepted Answer

Developing competencies and capabilities internally takes time, resources, and investment. This can lead to a longer period before the business becomes profitable or competitive, increasing the risk associated with starting a new business opportunity from scratch.

Question 19

Determine the Price focuses on business valuation.

Accepted Answer

"Determine the Price" implies determining the value or price of a business, which is a key aspect of business valuation.

Question 20

Identify the Target refers to conducting a search as to potential candidates for acquisition.

Accepted Answer

Identifying the target refers to conducting a search for potential candidates for acquisition.

Quiz 15: Analyzing New Business Ventures