Question 1

An entrepreneur started a new business. The first several years were very challenging. However,the entrepreneur believed that the challenges could be met and the business would be successful. This entrepreneur shows

Accepted Answer

The entrepreneur's belief in meeting challenges and eventual success demonstrates tenacity, or persistence and determination in the face of difficulties. The other options do not accurately describe the situation presented.

Question 2

Founders of high growth companies tend to have tenacity. That means

Accepted Answer

Tenacity is defined as the quality or fact of being very determined and not giving up easily. Therefore, the choice that best describes tenacity is E, which states that founders of high growth companies tend not to give up and continue to try even after major setbacks. Choices A, B, and C may also be important qualities for a founder to possess, but they do not specifically address the trait of tenacity. Choice D is incorrect because low self-efficacy means a lack of belief in oneself to accomplish goals, which is the opposite of tenacity.

Question 3

Costs related to the building and equipment of a business are referred to as

Accepted Answer

Fixed costs are expenses that do not vary with the quantity of goods or services produced, such as rent, salaries, and equipment. These costs are necessary to start and operate a business, regardless of its level of production or sales.

Question 4

Which of the following types of companies tend to meet customers' needs better?

Accepted Answer

High-growth companies often focus on innovation, customer satisfaction, and market needs to sustain their growth, making them more likely to meet customers' needs effectively.

Question 5

Because a new business has grown considerably,it can now purchase larger quantities of a certain raw material. Purchasing in larger quantities allows the company to get a lower price per pound of the raw material. Which of the following is related to this situation?

Accepted Answer

Purchasing raw material in larger quantities will lead to economies of scale, resulting in lower average variable costs for the business.

Question 6

An inventor obtained a patent on a product and licensed the right to use the knowledge related to this patent to another company. This represents a

Accepted Answer

The scenario describes a technology license, which is a legal agreement between the patent owner (licensor) and another company or individual (licensee) that permits the licensee to use, manufacture, and sell products or services related to the patented technology. A merger involves two or more companies combining into a single entity, while a merchandise license allows the use of a particular name or image on products for marketing purposes. Trademarks are symbols, logos, or words used to identify a company's products or services. An internal strategy is a plan developed by a company to achieve its goals and objectives.

Question 7

Why might a new business seek to grow?

Accepted Answer

A new business might seek to grow in order to achieve economies of scale, which can result in cost savings and increased profitability. Additionally, growth can lead to market leadership, which can provide the business with a competitive advantage and increased bargaining power. Finally, growth can allow a business to develop a scalable business model, which can support further expansion and long-term success. All three reasons (economies of scale, market leadership, and a scalable business model) are important factors that may motivate a new business to seek growth.

Question 8

After initial success with her business,an entrepreneur studied the current customers and found that they would like a certain feature on a product that is not being offered by anyone now. She incorporated the new feature on the product for her customers. She has used what type of strategy?

Accepted Answer

The entrepreneur has used an innovative business practice by incorporating a new feature on the product based on the feedback from the customers. This shows that she is willing to modify the product to meet the needs of her customers, which could lead to increased customer satisfaction and potentially, business growth.

Question 9

Developing a new product is an example of which of the following strategies?

Accepted Answer

The answer of Developing a new product is an example...

Question 10

Economies of scale means

Accepted Answer

Economies of scale refer to the cost advantages that a business organization experiences as its scale of operation increases. As the production of a good or service increases, the average cost per unit decreases due to the spreading of fixed costs over a larger production volume. The result is an increase in efficiency, productivity and profitability.

Question 11

Two entrepreneurs saw that they both could gain by combining their separate companies into one. They would re-name the company and both would be managers in it. This represents

Accepted Answer

A merger is a combination of two or more companies, often of similar size, to form a single new company. In this case, the entrepreneurs are combining their separate companies into one and becoming managers in the new company, which is a classic example of a merger.

Question 12

An entrepreneur whose business sold wood products approached another small business owner whose company made decorative pieces for homes. The two started a new company together that would use the wood products from the one company to make decorative pieces by the other. This new business is known as

Accepted Answer

The situation described is an example of a joint venture, which is a business arrangement where two or more companies agree to work together on a specific project or business activity. In this case, the two companies have come together to form a new company that combines their respective strengths and resources. A joint venture can be a way for small businesses to pool their resources and expertise to achieve a common goal.

Question 13

The phrase "Listen to your customers. They tell you what they want and you find a way to provide it." refers to which type of strategy?

Accepted Answer

The answer of The phrase "Listen to your customers. They...

Question 14

A strategic alliance between two companies that involves cooperating in research and development is known as

Accepted Answer

A strategic alliance involving cooperation in research and development is known as a technological alliance. Choice A, dynamic capability, refers to a company's ability to adapt and respond to changing market conditions. Choice C, an acquisition, is the purchase of one company by another. Choice D, a spin-in, refers to a company bringing in external technology or knowledge to develop its own capabilities. Choice E, an internal strategy, could refer to a range of strategies implemented solely within a company.

Question 15

Which of the following is a good internal strategies for growth?

Accepted Answer

The answer of Which of the following is a good...

Question 16

Increased new revenues cost less to deliver than current revenues applies to the idea of

Accepted Answer

The concept of increased new revenues costing less to deliver than current revenues is related to having a scalable business model, which means that the business can grow without incurring significant additional costs. When a business can scale, it can take advantage of economies of scale, which leads to lower costs per unit of production, resulting in increased revenue at a lower cost.

Question 17

An entrepreneur wants his business to grow. He is trying to make that happen by focusing on developing new products that can use the same production and marketing facilities and skills that the company already has. This represents what type of strategy?.

Accepted Answer

The strategy described here is internal, as the focus is on utilizing existing resources and capabilities to develop new products and grow the business.

Question 18

Which of the following characteristics is usually not associated with founders of high growth companies?

Accepted Answer

Founders of high growth companies are usually goal-oriented and believe in setting specific goals to achieve success. They are not likely to see setting specific goals as too confining.

Question 19

Recently,Google purchased several companies and made them part of the overall company. This is known as

Accepted Answer

Google purchased several companies, which means that they acquired those companies and made them part of their overall company. This process is known as an acquisition, where one company purchases another company to expand its business.

Question 20

An entrepreneur started a management consulting company. The first several years were very challenging in finding potential clients and building relationships with them,in developing the services that the company would sell to clients,and just "getting known" as a management consulting company. These years required considerable money,but there were few sales. After several years,the company became known and now has many clients and large sales,all the while,expenses are lower than in the first years. This represents the idea of

Accepted Answer

The scenario describes the process of developing a scalable business model. The initial investment and effort required to establish the company and its services eventually yielded long-term success with lower expenses and increased sales. This is a common pattern for businesses with a scalable model, as they can leverage investment in infrastructure and development to generate growing revenue streams.

Quiz 11: Preparing For And Attaining Growth: Strategies For Building Lasting Success