Deck 16: Strategic Entrepreneurship

Question 1

Entrepreneurship is not the exclusive domain of small,young firms.

Answer 1

True

Question 2

Entrepreneurs and their firms are engines of the creative destruction process.

Answer 2

True

Question 3

Entrepreneurial leaders are noted for encouraging inclusive and democratic decision-making within organizations.

Answer 3

False

Question 4

Compared to underdeveloped countries,governments in developed economies impose more procedures and a higher total cost for new start-ups.

Question 5

There are no hard and fast rules on whether entrepreneurial firms should internationalize rapidly or slowly.

Question 6

As a general rule,entrepreneurs' previous international experience differentiates rapid internationalization from slow/no internationalization.

Question 7

Entrepreneurial leaders in large organization simply do not exist.

Question 8

Children from wealthy families are less likely to start new businesses.

Question 9

Entrepreneurial leaders have a personality not suited to single owner-manager firms.

Question 10

One problem for failed entrepreneurs is that many will not acknowledge failure and thus avoid exiting the business despite escalating losses.

Question 11

Transaction costs are qualitatively higher in international markets.

Question 12

Selling out can be a viable exit strategy.

Question 13

Development of entrepreneurship around the world depends on avoiding the impact of formal institutions that govern how entrepreneurs start up new ventures.

Question 14

Personal traits of entrepreneurs are no different than non-entrepreneurs.

Question 15

There are striking differences in government regulations concerning start-ups.

Question 16

Harsh bankruptcy laws become exit barriers,but not significant barriers to entry.

Question 17

The personal traits of entrepreneurs have been the primary motivating force in China and Southeast Asia,not the environments that set formal and informal rules.

Question 18

Most scholars now agree that entrepreneurship is a result of both nature and nurture.

Question 19

Behaviour of entrepreneurs differs from non-entrepreneurs.

Question 20

Innovative,proactive and risk-seeking behaviour crosses national borders.

Question 21

Intrapreneur is an internal entrepreneur.

Question 22

Entrepreneurs can only be found at the top of organizations.

Question 23

Cautions that should be acknowledged by entrepreneurs is that it may be difficult to:

A) Predict consumer preferences
B) Effectively price innovative products/services
C) Build sufficient capacity
D) All of the above

Question 24

Which of the following traits would tend to prevent entrepreneurs from establishing new firms?

A) Strong desire for achievement
B) Willingness to take risks and tolerate ambiguity
C) The tendency to be a serial entrepreneur
D) None of the above

Question 25

Entrepreneurial leadership is commonly seen to be at odds with modern economies.

Question 26

A potential benefit of an initial public offering (IPO):

A) Can increase firm's financial stability
B) Focus on short-term results
C) Fiduciary duty
D) Entrepreneurs' freedom of action

Question 27

Entrepreneurs are people who:

A) Habitually chase after every opportunity they identify
B) Habitually create and innovate to build something of recognized value around perceived opportunities
C) Own a small or medium sized business
D) Come up with innovative ideas

Question 28

One general conclusion that we can reach regarding entrepreneurship is that:

A) Regulatory burdens on new start-ups are much easier in poorer countries
B) The less entrepreneur-friendly a country's formal institutional requirements are the more likely entrepreneurship will contribute to economic development
C) Individualistic and low uncertainty-avoidance societies tend to foster relatively more entrepreneurship
D) Informal institutions do not affect entrepreneurships

Question 29

Which would tend to result in a greater level of entrepreneurship?

A) Ability to reduce the bargaining power of buyers
B) Fewer numbers of incumbents
C) Capital-intensive industries
D) Weak bargaining power of suppliers

Question 30

Factors that encourage innovation and entrepreneurship include all of the following except:

A) Human resources systems that reward innovative behavior
B) Systems that facilitate creation of new products, processes, and services
C) Low levels of slack financial resources
D) A culture that encourages innovation

Question 31

Entrepreneurship:

A) Can occur both within firms and independently of them
B) Is a process that may lead to the creation of new value
C) Involves recognizing or creating an opportunity, assembling resources to pursue it, and managing those resources to bring the new venture into being
D) All of the above

Question 32

In a manufacturing setting,the purchase of the right to use another firm's proprietary technology is referred to as:

A) Direct exporting
B) Licensing
C) Franchising
D) Exporting

Question 33

Overall,the micro,informal interpersonal relationships among managers of various units,may create a micro-macro link.

Question 34

Suppose you are an SME with limited financial resources.In view of that,your best choice for entering foreign markets would be:

A) Foreign direct investment
B) Licensing or franchising
C) Direct exporting
D) None of the above

Question 35

Which best describes entrepreneurs?

A) Those who identify and exploit previously unexplored opportunities
B) Founders and owners of new businesses
C) Managers of small or medium sized firms
D) All of the above

Question 36

Which of the following are not true in regards to small and medium-sized enterprises (SMEs).

A) They create approximately 50% of total value added in the world.
B) They generate 60-90% of employment, depending on where they are located.
C) Each year 4-6% of adult working population in North America, Western Europe, Central and Eastern Europe attempt to start a new venture.
D) Around the world, a majority of entrepreneurial firms succeed within 6 years

Question 37

Entrepreneurial leaders are typically associated with transactional leadership styles.

Question 38

Entrepreneurs need to ensure that:

A) Resources are developed and changed and used to exploit opportunities ahead of rivals
B) Capabilities exist to exploit opportunities ahead of rivals
C) Value chains exist to exploit opportunities ahead of rivals
D) External networks are utilised ahead of rivals

Question 39

To achieve success,entrepreneurial resources must be:

A) Of low value so as to reduce cost
B) Organizationally embedded
C) Non-core competencies that are hard to imitate
D) All of the above

Question 40

Effective entrepreneurship involves:

A) Seeing opportunities and deliberating over the best ways of addressing them
B) Launching different products and services to see which the market accepts
C) Identifying windows of opportunities and having the competency and capability to exploit them
D) Creating opportunities for others to exploit.

Question 41

Identify the five paths an entrepreneurial start-up may take.

Question 42

Intrapreneurship is:

A) The establishment and fostering of entrepreneurial activity within large organizations
B) Inter-organizational entrepreneurial activity
C) Entrepreneurial activity within peer networks
D) Senior team entrepreneurial activity

Question 43

The structure of an intrapreneurial organization is likely to be:

A) Hierarchical
B) Flat
C) Fluid
D) Bureaucratic

Question 44

Innovation is at the heart of an entrepreneurial mindset and is important for success. However,what if a person does not tend to be creative? Should that person not consider forming an SME?

Question 45

Are all visionary leaders entrepreneurs?

A) Mostly, but not always
B) Yes, always
C) No, the two are incompatible
D) Rarely

Question 46

Which of the four implications above are the most important for the entrepreneur and which is the easiest and fastest for that person to implement?

Question 47

When an entrepreneurial business fails it is likely to be because:

A) The opportunity identified can no longer be effectively addressed by the start-up.
B) The market remains a niche and never really grows
C) A and B above
D) It continues to serve only a local need

Question 48

Identify what is felt to motivate entrepreneurs.

Question 49

Intrapreneurial activity is likely to be:

A) Outcome focused on issues that imply real change
B) Less ambitious than entrepreneurial activity, based around improvements
C) Vision challenging and changing
D) Risky, but potentially highly rewarding

Question 50

Identify four implications for action by the savvy entrepreneur?

Question 51

Suppose you are convinced that you have a product/service that has a huge overseas potential but your funds are very limited and you do not wish to seek partners,investors,or creditors to exploit the opportunity. What can you do?

Question 52

Entrepreneurship:

A) Has a necessarily pragmatic side to it
B) Has a paradigm of innovation
C) Sometimes, focuses on the softer people aspects of activity
D) All the above

Question 53

A successful economy,it is claimed,requires entrepreneurial activity because:

A) Opportunities will continually present themselves
B) Organizations must innovate and search for opportunities to rewrite the rules of competition
C) Cooperation between companies is essential in the new economy
D) Hyper-competition requires new business models

Question 54

Identify the characteristics of intrapreneurs.

Question 55

How might intrapreneurial activity be structurally encouraged?

A) Special task forces and development groups
B) Allowing individual managers the opportunity freedom, and possibly, capital, to try out new ideas
C) Change is seen as an opportunity rather than threat
D) All the above

Question 56

The industry changes that become an opportunity that an entrepreneur typically seeks to exploit can be:

A) Incremental only
B) Dynamic only
C) Incremental and dynamic
D) All of the above

Question 57

Archetypal small businesses begin as entrepreneurial start-ups but then settle into a less entrepreneurial existence,identify their likely characteristics.

Question 58

Visionary growth of an entrepreneurial start-up implies discontinuous change and requires visionary leadership,Mintzberg (1973)highlighted four points summarizing this,what are they?

Question 59

Entrepreneurs are motivated by:

A) High risks, high stakes and, potentially, high results
B) Low risks, low stakes and moderate results
C) Achievement, power, influence and independence
D) Power, control and independence

Question 60

Are there approaches that one can follow which will likely enable a person who isn't necessarily creative to be more innovative than would otherwise have been the case?

Question 61

What are some of the features found in firms that have high levels of innovation and entrepreneurship?