Deck 16: Business Growth and the Entrepreneur

Question 1

Company growth is not always a simple, linear progression.

Answer 1

True

Question 2

As a business grows, the entrepreneur's leadershipstyle and necessary skills must change.

Answer 2

True

Question 3

Experts advise owners of growing companies to micromanage their businesses.

Answer 3

False

Question 4

Micromanagement of a company may result in high employee turnover.

Question 5

Overtrading refers to a situation in which the company sells inventory too quickly.

Question 6

A craftsman entrepreneur does not trust people easily and/or prefers not to delegate.

Question 7

In the classic entrepreneurial style the entrepreneur supervises everything closely.

Question 8

Most entrepreneurs do not like the start-up phase of a business.

Question 9

One key to success is to match the style of management with the entrepreneur's personality.

Question 10

As a company grows, the loss of a family atmosphere may cause the entrepreneur to be dissatisfied.

Question 11

The entrepreneur's leadership and motivation skills are more important in the early years of a business than once the company is larger.

Question 12

As a company grows, an entrepreneur's job is less well-defined.

Question 13

As a company grows, the growth may conflict with
personal goals.

Question 14

Which of the following is not one of the six stages of business development?

A) Conception
B) Survival
C) Stabilization
D) Administration

Question 15

Which of the following is false?

A) As a company grows, the entrepreneur must move from direct supervision to indirect manangement.
B) Micromanagement of a firm may inhibit growth.
C) Micromanagement may cause high employee turnover.
D) None of the above.

Question 16

Management problems in the early years of the business include

A) time management.
B) setting goals.
C) measuring performance.
D) all of the above.

Question 17

If an entrepreneur micromanages, he or she

A) ignores details.
B) is involved in all aspects of the company.
C) hires top quality people and gives them freedom to make decisions.
D) does not give employees any feedback on their performance.

Question 18

If a company incurs short-term costs that it cannot pay while it is growing it is known as

A) overtrading.
B) insolvency.
C) growth orientation.
D) transitional costs.

Question 19

Overtrading is a situation when

A) a company does not do a good job.
B) a company incurs short-term costs that it cannot meet while pursuing growth.
C) a company decreases costs and increases profit.
D) receives orders for more inventory that what is in stock.

Question 20

The entrepreneur is most likely to have direct control over company operations in which stage?

A) Start-up
B) Growth
C) Maturity
D) Control remains the same through all stages.

Question 21

The authors of The New Venture Handbook recommend

A) owning more than one business.
B) determining why you want to start a business.
C) owning only one business throughout an entrepreneurial career.
D) tailoring the size of the company to the entrepreneur's personality.

Question 22

Which of the following is not a management style identified by the authors of The New Venture Handbook?

A) Craftsman
B) Coordinator
C) Creator
D) Classic management

Question 23

If an entrepreneur outsources work, he or she

A) subcontracts work out to other companies.
B) does all of the work himself.
C) has employee teams to help manage.
D) creates jobs to meet employee skills.

Question 24

Outsourcing may allow an entrepreneur to

A) avoid the maturity stage in a business.
B) have a large business without many employees.
C) avoid bankruptcy.
D) all of the above.

Question 25

An entrepreneur who does not trust people easily and/or prefers not to delegate is known as a

A) classic entrepreneur.
B) coordinator.
C) craftsman.
D) technician.

Question 26

An entrepreneur who outsources or subcontracts many functions is known as a

A) classic entrepreneur.
B) coordinator.
C) craftsman.
D) technician.

Question 27

An entrepreneur who hires employees but monitors and supervises everything very closely is known as a

A) classic entrepreneur.
B) coordinator.
C) craftsman.
D) technician.

Question 28

The company named "My Virtual Corp." grew very large by using which management style?

A) Classic
B) Outsourcing
C) Craftsman
D) Technician

Question 29

The classic management style works only if the entrepreneur

A) is good at delegating.
B) hires a good employee team.
C) subcontracts work to other entrepreneurs.
D) admits that he controls everything and makes that clear to employees.

Question 30

The size of the business may be limited if the entrepreneur

A) is a craftsman.
B) outsources work.
C) hires employee teams.
D) uses a departmental structure.

Question 31

A craftsman is most likely to

A) use a departmental structure.
B) have employee teams.
C) delegate to managers.
D) own a one-person business.

Question 32

If an entrepreneur feels comfortable delegating he is likely to

A) be a craftsman.
B) use the classic entrepreneurial management style.
C) use employee teams.
D) supervise everything closely.

Question 33

If the preferred style of management is the craftsman, coordinator, or classic the company should

A) be high-tech.
B) have many employees.
C) not be too complex.
D) have employee teams.

Question 34

Once the start-up stage is over the level of challenge for the entrepreneur may seem to

A) be uncontrollable.
B) increase.
C) decrease.
D) prevent growth.

Question 35

If a business is very complex it will only grow successfully if the entrepreneur

A) is comfortable giving up control.
B) is a craftsman.
C) uses the classic entrepreneurial management style.
D) all of the above.

Question 36

An entrepreneur's style of management should be matched with the

A) style used by competitors.
B) work to be performed each week.
C) hours of the company's operation.
D) entrepreneur's personality.

Question 37

As a company grows, the entrepreneur may be dissatisfied because

A) the challenge of the start-up phase is gone.
B) the family atmosphere no longer exists.
C) the role of the entrepreneur changes.
D) all of the above.

Question 38

Most entrepreneurs find the early years of business ownership very

A) monotonous.
B) rewarding.
C) frightening.
D) depressing.

Question 39

As a company grows,

A) the role of the entrepreneur changes.
B) the entrepreneur may hire managers to supervise employees.
C) the company becomes more structured.
D) all of the above.

Question 40

When a company is small, the direct interaction between the entrepreneur and employees contributes to

A) the company's failure.
B) a family atmosphere.
C) conflicts with personal goals.
D) the entrepreneur's unhappiness.

Question 41

The entrepreneur's ability to complete a certain task (such as repairing cars, cooking meals, etc.) is most important in the

A) early years of the company.
B) growth phase of the company.
C) last years of the company.
D) first week the company is open.

Question 42

As a company grows, the entrepreneur should focus on his/her

A) technical ability to complete a task.
B) written communication.
C) management and motivation skills.
D) public speaking.

Question 43

As a company grows, the entrepreneur's job

A) becomes clearer.
B) more manageable.
C) less well-defined.
D) more challenging.

Question 44

If a company grows larger and faster than expected this may cause problems because

A) entrepreneurs do not want success to be easy.
B) there may be conflicts with personal goals.
C) the owner will be tempted to take a large salary.
D) the start-up phase was too short.

Question 45

An organizational structure known as a "simple structure" is most often used when a company

A) first begins.
B) goes through rapid growth.
C) is in the maturity stage.
D) has many employees.

Question 46

As a company grows, the entrepreneur may become dissatisfied. Which of the following is not a cause of dissatisfaction?

A) The challenge of the start-up is gone.
B) The company's family atmosphere increases.
C) The entrepreneur's job changes.
D) There may be conflicts with personal goals.

Question 47

As a company grows, the entrepreneur may become dissatisfied. Which of the following is one of the causes of the dissatisfaction?

A) The company generates a larger profit.
B) It seems to be a greater challenge than the start-up phase.
C) The company's family atmosphere often disappears.
D) The entrepreneur's job never changes.

Question 48

As the owners of McGuffey's Restaurant opened more outlets sales at the first restaurant decreased because

A) customers were going to the newer restaurants.
B) the family atmosphere no longer existed.
C) they could not get adequate inventory.
D) all of the above.

Question 49

If an entrepreneur becomes unhappy with the growth of the company there are several options including

A) keeping the company small.
B) rediscovering the entrepreneurial spirit.
C) selling all of the company or part of it.
D) all of the above.

Question 50

If the family atmosphere is lost during the growth stage of the business this may result in

A) entrepreneurial dissatisfaction.
B) poor employee morale.
C) financial losses.
D) all of the above.

Question 51

If an entrepreneur is unhappy with a growing company he may

A) sell a portion of the company.
B) sell the company and accept a job elsewhere.
C) sell the business and start another one.
D) all of the above.

Question 52

If an entrepreneur is unhappy with a growing company options include

A) cashing in.
B) rediscovering the entrepreneurial spirit.
C) implementing measures to keep the company small.
D) all of the above.