Question 1

The book illustrates various types of processes. A typically linear process (A to B) contains:
A) a given start, a given goal, clear checkpoints along the way
B) a flow where the starting point and end goal are difficult to pinpoint and are figured out along the way
C) a flow where search and learn are the primary tools used to reach the goal
D) an open process where the goal is successively established
E) a process where one travels from A to B in a detailed, orderly manner

Accepted Answer

A linear process typically has a given start and a given goal, with clear checkpoints along the way to mark progress.

Question 2

The following is a potential definition of a process: "a series or flow of activities that lead to a result over time."

Accepted Answer

This definition accurately describes a process as a set of sequential steps or actions that produce a desired outcome or output over a period of time.

Question 3

Suppose a course of events was described in the following manner: it was an open and free process involving restrictions, which provided checkpoints which pointed all activities in a specific direction. Is this a description of a process?
A) Yes - a non-linear process
B) Yes - a typical search-and-learn process
C) No - rather a type of free improvisation
D) No - rather a let it be and we'll see what happens

Accepted Answer

A,B

Question 4

Enact and enactment are mentioned throughout the book to describe certain aspects in the entrepreneurial process (processes of change). These words imply people collaborate to stage reality and that this takes place through discussion and actions which create meaning.

Accepted Answer

Enact and enactment are used throughout the book to describe how individuals come together to create a new reality through their actions, discussions, and shared meanings. This process involves collaboration and the creation of new meanings and interpretations of the world around them.

Question 5

Numerous researchers have found that a sound entrepreneur has and uses entrepreneurial judgement when faced with uncertain situations. This means:
A) using discretion and avoiding business with low financial returns
B) using discretion when choosing people to work with
C) subjectively assessing and making major decisions in real time based on available - and often incomplete - information
D) choosing the right market at the right time

Accepted Answer

Entrepreneurial judgement involves subjectively assessing and making major decisions in real time based on available - and often incomplete - information when faced with uncertain situations. This is different from using discretion to avoid low financial returns (A), choosing the right people to work with (B), or choosing the right market at the right time (D).

Question 6

When one traditionally discusses management control, one typically defines a sequence of activities. What is that sequence?
A) analyze - decide - plan - implement - control - correct
B) act - follow up - measure - act again
C) analyze - measure - control variants - reorganize - follow up
D) plan - act - organize - monitor - follow up
E) decide - follow up - find scapegoats - punish - reorganize

Accepted Answer

The traditional sequence of management control activities includes analyzing the situation, making decisions, planning, implementing the plan, controlling the process, and making corrections as necessary. This sequence is designed to ensure that organizational goals are met efficiently and effectively.

Question 7

Strategic analysis, market analysis, cost/revenue analyses, budgeting, financing analysis, organization, strategic planning and operational planning are all methods and tools which contribute to the rational decision-making process.

Accepted Answer

These methods and tools are commonly used in the rational decision-making process in businesses and organizations.

Question 8

A business plan typically has the following components. Which four of the following are incorrect?
A) Best practice analysis
B) Business idea
C) Benchmarking
D) Financial analysis
E) Implementation plan
F) Stakeholder analysis
G) Strategic analysis
H)People, the team
I)Risk analysis
J)Bottom line
K)Financial solidity calculation

Accepted Answer

The answer of A business plan typically has the following...

Question 9

The following are included in the financial analysis section of a business plan: (three are incorrect)
A) Financing, capital planning
B) Sales scenarios
C) Liquidity planning
D) Market analysis
E) Break-even analysis
F) Income budget
G)SWOT analysis
H)Value curve

Accepted Answer

Financing and capital planning, sales scenarios, and income budget are all important components of a business plan, but are not specifically part of the financial analysis section. The financial analysis section typically includes an analysis of market conditions, a SWOT analysis to assess the company's strengths, weaknesses, opportunities, and threats, and a value curve to illustrate the company's value proposition compared to its competitors. Liquidity planning and break-even analysis are also common parts of the financial analysis section.

Question 10

A strategic analysis in a business plan typically includes the following: (four are correct)
A) Offering
B) Competition analysis
C) Market analysis
D) Milestone planning
E) Target group analysis
F) PESTEL analysis
G) Our unique value-creating components - value curve

Accepted Answer

B) Competition analysis: This is a crucial aspect of a strategic analysis since it helps you understand your competitors, identify their strengths and weaknesses, and devise strategies that will help you differentiate yourself in the market.

C) Market analysis: This looks at the industry and market environment to help determine the target market, the size of the market, growth rates, consumer trends and preferences, competitive forces, distribution channels, and more.

F) PESTEL analysis: This looks at the macro-environmental factors, such as Political, Economic, Social, Technological, Environmental, and Legal, and analyzes how they may impact the business.

G) Our unique value-creating components - value curve: This helps identify the unique value proposition, strengths, and weaknesses of the business, how it creates value for customers, and how it differentiates itself from competitors.

Question 11

Supporters of the business plan as a crucial tool for entrepreneurs explain how it forces them to think through their offering early in the process and how it, for example, will be produced, packaged and distributed to reach and create value for the customer (and the business owner).

Accepted Answer

Supporters of the business plan argue that it helps entrepreneurs think through various aspects of their offering, including production, packaging, distribution, and customer value.

Question 12

Supporters of the business plan as a crucial tool for entrepreneurs explain how it forces them to strategically analyze the branch and market, penetrating and testing it as far as they can, without taking risks and jumping in blindly.

Accepted Answer

Supporters believe that a business plan helps entrepreneurs strategically analyze the market and branch without taking blind risks.

Question 13

Research has shown that while planning and drafting a business plan does not necessarily ensure greater profitability, it does increase the likelihood that the venture will reach the introduction phase and once there, the enterprise will have considerably better prospects of sustained growth and survival.

Accepted Answer

This statement is supported by research and suggests that although a business plan may not guarantee profitability, it can improve the chances of the venture reaching the introduction phase and experiencing sustained growth and survival.

Question 14

Criticism of the business plan and its prevalence state that it:
(choose the correct alternatives, those which have been criticized)
A) lays out a plan A in great detail - when a plan B and C are also necessary
B) can easily become focused on "me and my idea," forgetting the customer
C) only covers issues relevant to banks and other creditors
D) is poorly structured and demands too much of readers
E)passivates and diverts one's focus away from action
F) takes time away from important activities
G) is far too vague and does not go into enough detail
H)amounts to useless pen-pushing and is neither read nor used

Accepted Answer

Criticism of business plans often includes their focus on a single plan without considering alternatives (A), becoming too self-centered and neglecting the customer's perspective (B), diverting focus from action and being overly passive (E), consuming valuable time that could be spent on other important activities (F), and being considered as mere paperwork that lacks practical use (H).

Question 15

A business plan is a symbol of the understanding of how one - according to the non-linear model - gets from A to B

Accepted Answer

A business plan is a formal document that outlines the goals of a business, strategies for achieving those goals, and the time frame for success. It does not specifically symbolize the understanding of a non-linear path from A to B, but rather provides a structured approach to planning and executing business strategies.

Question 16

Sarasvathy proposes a packet that, according to her, reflects the entrepreneur's way of thinking and working. What are the three main components of this packet?
A) a checklist
B) an ideology
C) logic
D) a handbook for business planning
E) calculation schemes
F) methods
G) principles

Accepted Answer

Sarasvathy's packet reflects the entrepreneur's way of thinking and working through logic, methods, and principles, which are essential components of her theory of effectuation.

Question 17

Sarasvathy calls her process - the entrepreneurial method - :
A) causation
B) cause-and-effect
C) effectuation
D) entrepreneurialism
E) liberation

Accepted Answer

Sarasvathy refers to her process as "effectuation". This term is derived from the word "effect", meaning to bring about or accomplish, and emphasizes the idea of taking action based on what is currently available and within one's control, rather than trying to predict the future and plan accordingly (causation). Sarasvathy's entrepreneurial method is based on five principles of effectuation: bird-in-hand (starting with what you have), affordable loss (taking calculated risks), lemonade (turning setbacks into opportunities), patchwork quilt (leveraging partnerships and resources), and pilot in the plane (maintaining control over the venture).

Question 18

The term causation most closely corresponds to:
A) the non-linear model's method of analyzing and reacting
B) the linear model's method of analyzing and acting
C) the discovery model's method of analyzing and acting
D) the creation model's method of analyzing and acting

Accepted Answer

The answer of The term causation most closely corresponds to:
A)...

Question 19

The term effectuation most closely corresponds to:
A) the non-linear model's method of analyzing and reacting
B) the linear model's method of analyzing and acting
C) the discovery model's method of analyzing and acting
D) the creation model's method of analyzing and acting

Accepted Answer

The answer of The term effectuation most closely corresponds to:
A)...

Question 20

Sarasvathy's effectuation model is a process.

Accepted Answer

Sarasvathy's effectuation model is a process that entrepreneurs use to create new ventures by taking a set of actions towards a certain goal. It is not a static framework, but rather a dynamic process that involves continuous iteration and adaptation to changing circumstances.

Quiz 5: The Process

The book illustrates various types of processes. A typically linear process (A to B) contains:

The following is a potential definition of a process: "a series or flow of activities that lead to a result over time."

Suppose a course of events was described in the following manner: it was an open and free process involving restrictions, which provided checkpoints which pointed all activities in a specific direction. Is this a description of a process?

Enact and enactment are mentioned throughout the book to describe certain aspects in the entrepreneurial process (processes of change). These words imply people collaborate to stage reality and that this takes place through discussion and actions which create meaning.

Numerous researchers have found that a sound entrepreneur has and uses entrepreneurial judgement when faced with uncertain situations. This means:

When one traditionally discusses management control, one typically defines a sequence of activities. What is that sequence?

Strategic analysis, market analysis, cost/revenue analyses, budgeting, financing analysis, organization, strategic planning and operational planning are all methods and tools which contribute to the rational decision-making process.

A business plan typically has the following components. Which four of the following are incorrect?

The following are included in the financial analysis section of a business plan: (three are incorrect)

A strategic analysis in a business plan typically includes the following: (four are correct)

Supporters of the business plan as a crucial tool for entrepreneurs explain how it forces them to think through their offering early in the process and how it, for example, will be produced, packaged and distributed to reach and create value for the customer (and the business owner).

Supporters of the business plan as a crucial tool for entrepreneurs explain how it forces them to strategically analyze the branch and market, penetrating and testing it as far as they can, without taking risks and jumping in blindly.

Criticism of the business plan and its prevalence state that it: (choose the correct alternatives, those which have been criticized)

A business plan is a symbol of the understanding of how one - according to the non-linear model - gets from A to B

Sarasvathy proposes a packet that, according to her, reflects the entrepreneur's way of thinking and working. What are the three main components of this packet?

Sarasvathy calls her process - the entrepreneurial method - :

The term causation most closely corresponds to:

The term effectuation most closely corresponds to:

Sarasvathy's effectuation model is a process.