Question 1

The skill and experiences that are necessary for an entrepreneur to have in order to make a business grow successfully are known as

Accepted Answer

Managerial capacity is the most important skill that an entrepreneur should possess to make a business grow successfully. This includes the ability to develop and execute business plans, manage finances, hire and manage employees, and communicate effectively with investors, customers, and partners. Other skills like growth skills, human resource practices, global expansion, and external strategy are also important, but they are built on top of strong managerial skills.

Question 2

Explain how "dynamic capabilities" can help a small business grow and be successful.

Accepted Answer

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Question 3

Why is developing new products or services that are related to the ones a company already offers a better way to grow than to get involved in products or services that are quite different?

Accepted Answer

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Question 4

Define tenacity and explain how it tends to be related to growing a company.

Accepted Answer

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Question 5

Explain why established firms are usually more efficient than are new firms.

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Question 6

Explain why high-growth companies tend to get into relationships with other companies more so than slow-growth companies.

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Question 7

Which of the following tend to be related to successful high growth of a new business?

Accepted Answer

All of the factors listed (human resource practices, characteristics of the founder, and attributes of the company) have been found to significantly impact the success and growth of a new business. Therefore, the best choice is D, as all of the options are correct.

Question 8

Which of the following tend to be associated with entrepreneurs of high-growth companies?

Accepted Answer

Tenacity, growth vision, and high self-efficacy tend to be associated with entrepreneurs of high-growth companies. Therefore, option D, i.e. all of the above (a, b, and c) are correct.

Question 9

Fixed costs

Accepted Answer

Fixed costs are not directly linked to sales (A) and can be represented by equipment in a business (C), as they do not vary with the level of output or sales.

Question 10

Internal strategies for growth include

Accepted Answer

New product development is an internal strategy for growth as it involves expanding the company's product offerings without relying on external entities such as mergers or acquisitions. This approach allows companies to use their existing resources and expertise to develop new products that can attract new customers or satisfy the needs of existing ones. Options B, C, and D all involve external entities and are therefore not considered internal strategies for growth.

Question 11

Explain why managerial capacity might limit a company's growth.

Accepted Answer

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Question 12

Which of the following statements is not true?

Accepted Answer

Each statement (A, B, and C) reflects common characteristics or strategies of high-growth companies, such as a strong commitment to growth, offering unique products or services, and adopting motivational practices for employees.

Question 13

Two companies are producing breakfast cereal. One company produces 10,000 boxes at an average cost of $1 per box. The other company produces 100,000 boxes at an average cost of $.75 per box. This example demonstrates the concept of

Accepted Answer

This example demonstrates economies of scale, where the larger company is able to produce at a lower cost per unit due to the higher volume of production.

Question 14

A pharmaceutical company spends large amounts of money in developing new prescription drugs. Once the new drug is approved for use,it frequently can be produced and marketed for considerably less money than it took to develop,so the profit margins are large if one considers only the money spent during production and marketing. This situation represents the idea of

Accepted Answer

The situation described represents a scalable business model, where the initial investment in research and development can be recouped through the production and marketing of the drug at a lower cost, resulting in high profit margins.

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