Question 1

As successful entrepreneurs realize that they cannot do everything by themselves,they must decide on an appropriate organizational structure if they want to continue to effectively carry out the activities of the venture.

Accepted Answer

This statement is true. As a venture grows and expands, it becomes increasingly difficult for one person or a small team to handle all aspects of the business. A well-designed organizational structure helps ensure that tasks are properly delegated and responsibilities are clearly defined, which contributes to the overall success of the venture.

Question 2

Curiosity-driven research and applied research are essentially the same thing: both generate new knowledge that can be used in some practical or commercially driven way.

Accepted Answer

Curiosity-driven research is focused on exploring and expanding our understanding of the world, without a specific practical goal in mind. It seeks to answer fundamental questions and generate knowledge for its own sake. Applied research, on the other hand, is targeted at solving specific problems or creating new products or technologies. While both types of research can contribute to practical or commercial applications, they have different primary motivations and approaches.

Question 3

The choice of an appropriate organizational structure is an important decision when organizing an entrepreneurial venture.In a short essay,explain how structure and the necessary human resources management contribute to the success of the organization.Provide clear examples of strategies for employee recruitment and retention.

Accepted Answer

The answer of The choice of an appropriate organizational structure...

Question 4

Being a change agent and supporting innovation together represent the single most important function of an entrepreneur in the early years of the venture.

Accepted Answer

Being a change agent and supporting innovation are crucial for entrepreneurs in the early stages of their venture as it helps them to adapt to the market and create a unique selling point for their products or services. Without these skills, it can be challenging for an entrepreneur to survive in today's competitive business environment.

Question 5

Angela's Thesis Coaching Company (Scenario)
Angela is finally starting to feel more at ease with her business. Six months since the launch of her Ph.D. Thesis Masters she is starting to see revenues climb and her associates are producing great work—and more importantly, her customers are happy. Ph.D. Thesis Masters (PTM) provides coaching and research services for masters and Ph.D. students working on their theses. Angela discovered that many students need help with much of the grunt work of formatting, meeting deadlines, and doing secondary research of the existing literature.
Her associates are Ph.D. graduates who have successfully completed their theses and can now guide other students and help them with the related pressures and quality guidelines. Angela has worked out a formula where she charges student clients $75 per hour and pays her associates $45, leaving her with a $30 gross profit (or gross margin) for every hour of work completed. Her customers are happy and her associates are happy.
-With approximately 10 associates serving the company's clients,Angela was challenged by the leadership duties she had to perform.Originally,she thought it would be easier because they were professionals who were working independently.But what she found was that it was a bit like doing what Max Depree says in the book-that good leadership is a lot like leading a ________.

Accepted Answer

Angela's experience reflects the concept that good leadership involves managing a group of professionals who, while working independently, need to be harmonized towards a common goal, much like a jazz ensemble where each member has the freedom to improvise but still needs to work in sync with the others.

Question 6

Recruitment and retention are the two main human resource challenges entrepreneurs face as their ventures grow.It is insufficient to simply look at getting the right people into the business without considering how to keep them in the long run.

Accepted Answer

Recruitment and retention are both important for the growth and success of a business. While getting the right people is important, it is equally important to retain them in the long run to maintain continuity and stability in the organization.

Question 7

Management innovation is about the skills managers have in ________.

Accepted Answer

Management innovation involves finding new ways to manage and solve problems, which includes identifying innovative tools and processes to improve how work is done. While hiring the right employees, identifying customer demand, and continually adjusting the business plan are important components of effective management, they do not fully capture the essence of management innovation.

Question 8

Research directed toward acquiring new knowledge rather than toward a practical objective is known as curiosity-driven research.

Accepted Answer

Curiosity-driven research, also known as fundamental or basic research, aims to expand our understanding of the world and is not tied to any specific practical application. Its main focus is on acquiring new knowledge rather than solving immediate problems or meeting specific commercial objectives.

Question 9

Growing a Web-Development Company (Scenario)
Vincent and Alice are partners in a one-year-old web development business called Spy-der Web Execution. Vincent comes from a graphic design background and specializes in the look and feel of web projects. Alice comes from the computer gaming industry and is a highly experienced programmer and web developer—with a particular leaning toward Wordpress as a website backbone.
So far they have brought in less business than they had anticipated—about 25 percent less. As a result, they are operating at just a little below break even, and it is costing them about $500 a month to cover expenses (including rent on a small office space where they meet clients). The situation is disappointing and was not anticipated by either Vincent or Alice.
As with many businesses like this that are easy to get into with little investment, they did not do a full feasibility study or business plan. They are unsure about how to divide up their responsibilities (who is responsible for what), and therefore neither person is proactively going after new business, managing each project's budget, and determining even if they are making money on the work.
You are now in the role of advising the partners about a number of issues.
-Of all the key elements of organizing their venture,the two-person partnership would likely have been least concerned about ________.

Accepted Answer

As a two-person partnership, employee retention would not have been a key concern. They do not have employees to retain. Instead, their focus would have been on gaining clients and delivering quality work. The other options (organization design and structure, research and development, leading change) are all key elements that they should have considered when starting their business.

Question 10

The main human resource challenge an entrepreneur faces is recruiting,ensuring they find the right people and bring them into the venture.After that,things start to take care of themselves.

Accepted Answer

While recruiting the right people is a significant challenge for entrepreneurs, it is not the only challenge they face. Other challenges include managing and motivating employees, providing adequate training and development, and creating a positive work culture. These challenges continue even after the recruitment process has been completed.

Question 11

Kurt has built his new healthy snack company over the past year into a viable business with six employees.He is focused on innovating the company's products to fit with the current trends among older population to lead healthier lives.He understands clearly that among other things innovation must consider creating ________.

Accepted Answer

The answer of Kurt has built his new healthy snack...

Question 12

Studies have shown that visionary companies outperformed nonvisionary ones by six times based on standard financial criteria.To become a visionary organization the entrepreneur must articulate a coherent,inspiring,and ________.

Accepted Answer

To become a visionary organization, it is important for the entrepreneur to articulate an attractive vision of the future that inspires and motivates their team to work towards a common goal. While having a visionary business plan or exciting product/service may contribute to the organization's success, it is ultimately the vision that drives the company's overall purpose and strategy. Additionally, having a customer service oriented organization may be important for maintaining customer satisfaction, but it may not necessarily contribute to the development of a visionary culture.

Question 13

Typically,entrepreneurs are looking to hire individuals who are both high-potential people who can perform multiple roles during the different stages of business growth,as well as those who connect well with the venture's culture.

Accepted Answer

Entrepreneurs prioritize hiring individuals who are versatile and adaptable to take on different roles in the venture's growth stages. Additionally, entrepreneurs value individuals who share the same values and fit in with the venture's culture to maintain a cohesive and productive team.

Question 14

Of the many hats an entrepreneur wears,being a change agent is the least important.This is because during the first two years of the venture,operational excellence rules and little should change in the enterprise during this time.

Accepted Answer

Being a change agent is actually very important for an entrepreneur, as they need to adapt and evolve their business continually to stay competitive and relevant. While operational excellence is important, it is not the only factor in the success of a venture, and making necessary changes can help ensure long-term success.

Question 15

Angela's Thesis Coaching Company (Scenario)
Angela is finally starting to feel more at ease with her business. Six months since the launch of her Ph.D. Thesis Masters she is starting to see revenues climb and her associates are producing great work—and more importantly, her customers are happy. Ph.D. Thesis Masters (PTM) provides coaching and research services for masters and Ph.D. students working on their theses. Angela discovered that many students need help with much of the grunt work of formatting, meeting deadlines, and doing secondary research of the existing literature.
Her associates are Ph.D. graduates who have successfully completed their theses and can now guide other students and help them with the related pressures and quality guidelines. Angela has worked out a formula where she charges student clients $75 per hour and pays her associates $45, leaving her with a $30 gross profit (or gross margin) for every hour of work completed. Her customers are happy and her associates are happy.
-When she started the company,Angela wanted to be sure she could develop a loyal team of skilled thesis coaches and researchers.Without them being full-time employees,this can be difficult since she cannot guarantee them the hours they want.However,Angela was great at ________,getting them to join her team,by offering them a higher hourly rate and the freedom to work with other research companies.To ensure ________ in the long run,she offered them a potential partnership in the overall business-and this was attractive to some of her associates.

Accepted Answer

The first blank relates to how Angela convinced skilled thesis coaches and researchers to join her team, which is recruitment. The second blank relates to how Angela keeps her associates with her, which is retention. Therefore, the best choice is C, recruitment and retention. The given explanation also mentions the potential partnership in the overall business offered by Angela, which confirms the choice C.

Question 16

For many entrepreneurs,one of the challenges of their growing enterprise is having to share decision-making and operating responsibilities with those hired to support the enterprise.

Accepted Answer

The answer of For many entrepreneurs,one of the challenges of...

Question 17

Phil's new online dating company is growing faster than he anticipated.Just six weeks since launching,he is panicking because he is no longer capable of handling the increasing demands of his growing enterprise.Clearly,the first thing Phil should do is hire an operations manager to decide on what the organization structure should look like.

Accepted Answer

While hiring an operations manager could be beneficial, the first step Phil should take is to assess the specific needs and challenges of his business to determine the most critical roles and structures required for scaling effectively. This strategic planning should guide hiring decisions.

Question 18

In organizing a business venture,the entrepreneur must address four main issues: organizational design and structure,human resource management,how to stimulate and make changes,and the continuing importance of innovation.

Accepted Answer

The statement is true. These four issues are important for entrepreneurs to consider when starting and running a business venture.

Question 19

Max DePree,the former head of Herman Miller,thinks organization leadership is similar to that of leading a jazz band.He says that the leader of a jazz band has the "beautiful opportunity to ________."

Accepted Answer

Max DePree believes that the leader of a jazz band has the "beautiful opportunity to draw the best out of the other musicians" similar to how an organizational leader should focus on bringing out the best in their employees.

Question 20

Growing a Web-Development Company (Scenario)
Vincent and Alice are partners in a one-year-old web development business called Spy-der Web Execution. Vincent comes from a graphic design background and specializes in the look and feel of web projects. Alice comes from the computer gaming industry and is a highly experienced programmer and web developer—with a particular leaning toward Wordpress as a website backbone.
So far they have brought in less business than they had anticipated—about 25 percent less. As a result, they are operating at just a little below break even, and it is costing them about $500 a month to cover expenses (including rent on a small office space where they meet clients). The situation is disappointing and was not anticipated by either Vincent or Alice.
As with many businesses like this that are easy to get into with little investment, they did not do a full feasibility study or business plan. They are unsure about how to divide up their responsibilities (who is responsible for what), and therefore neither person is proactively going after new business, managing each project's budget, and determining even if they are making money on the work.
You are now in the role of advising the partners about a number of issues.
-One of the activities the two partners have engaged in effectively is keeping abreast of what is happening in the marketing world as well as what web developers around the world are creating and the related technological innovations along the way.This is a great example of ________.

Accepted Answer

The answer of Growing a Web-Development Company (Scenario)
Vincent and Alice...

Quiz 5: Managing Entrepreneurially