Deck 12: Creating New Ventures

Question 1

Social entrepreneurs are different from conventional commercial entrepreneurs in many respects.Which of the following is not a significant difference between the two types?

A)Personal passion and drive.
B)Motives to create a new venture.
C)Timeframes for development.
D)Resource employed to achieve change.

Answer 1

A

Question 2

Which of the following is not typically associated with innovation by smaller firms:

A)Increased external links.
B)Increased exports.
C)Increased profitability.
D)Increased employment.

Answer 2

C

Question 3

Which of the following is not one of the three basic types of entrepreneur?

A)Wealth.
B)Lifestyle.
C)Innovative.
D)Growth.

Answer 3

A

Question 4

A business plan for a new venture has many components.Which of the following would you not expect to be a significant component in a business plan?

A)Demonstration of technological merit and novelty.
B)Identification of the key markets and customers.
C)Assessment of potential competitors and barriers.
D)Estimations of cash-flow and financial requirements.

Question 5

Successful high-growth new ventures are associated with all but which of the following characteristics?

A)Strong external links and relations.
B)International and export markets.
C)Expenditure on research and technology.
D)Expenditure on design and innovation.

Question 6

A typical psychological profile of an entrepreneur would not necessarily include:

A)High need for achievement.
B)High need for challenging goals.
C)High need for feedback on personal performance.
D)High need for personal wealth.

Question 7

Almost two-thirds of new ventures fail within the first two years.Which of the following is not a common reason for failure?

A)Weak business concept.
B)No strategy for growth.
C)Little management ability or experience.
D)Poor financial control.

Question 8

For an academic entrepreneur based in a university, licensing-out a technology to a commercial partner may be more appropriate than forming a spin-out venture because:

A)the potential for profit is greater.
B)the degree of personal control is greater.
C)it is more appropriate for enabling technologies.
D)it facilitates dual academic and commercial development.

Question 9

Listing on the Alternative Investment Market (AIM) in London is more attractive to many new ventures because of a number of factors.Which of the following is not a common benefit?

A)Lighter regulatory requirements.
B)Lower cost compared to the main financial exchanges.
C)Access to venture capital.
D)Support of nominated professional advisors.

Question 10

Technology entrepreneurs are different to conventional entrepreneurs in all but which of the following ways:

A)Education.
B)Experience.
C)Age.
D)Motives.

Question 11

Which of the following is not a common trigger for the creation of a new venture?

A)Significant event at home or work.
B)Age, education and relevant work experience.
C)Government policy and support.
D)Recognition of an opportunity.

Question 12

What is not a common characteristic of an entrepreneur?

A)Highly reflective and rigorous.
B)Highly disciplined and focused.
C)Emphasis on action and execution.
D)Emphasis on involvement and relationships.

Question 13

Which of the following is not a common source of initial funding for a new venture?

A)Family or friends.
B)Business angels.
C)Venture capitalists.
D)Personal savings or borrowings.

Question 14

The technology clusters in Silicon Valley and Boston in the USA are attributable to a number of historical factors.Which of the follow is not a significant explanatory factor?

A)Close to world-class technological universities.
B)Availability of private venture capital and expertise.
C)Direct government support for industry and innovation clusters.
D)Indirect government support for related industries and research.

Question 15

Which of the following stages of funding of a new venture attract the least investment and interest from venture capitalists?

A)Start-up.
B)Expansion.
C)Management buy-in (MBI).
D)Management buy-out (MBO).