Ch. 13 kuratko quiz

New ventures are important to the economy in terms of innovation and

employment

Which of the following stages of venture development requires major changes in entrepreneurial strategy?

growth

All of the following are characteristics of entrepreneurial cultures except

hierarchy

The entrepreneurial strategy matrix measures _____ and _____

risk and security

In an entrepreneurial culture, strategic orientation is driven by

a perception of opportunity

T/F: Formal planning can be divided into strategic and nonstrategic.

false

T/F: Participation by subordinates in a strategic plan is never appropriate.

false

Which of the following management principles emanated from Steve Jobs?

put a dent in the universe

T/F:

true

T/F: Research has shown a distinct lack of planning on the part of new ventures.

true

T/F: Research indicates that strategic planning enhances a firm's performance.

true

T/F: The actual need for systematic planning will vary with the nature, size, and structure of the business.

true

Formation of long-range plans for effective management in light of a venture's strengths and weaknesses is referred to as _____ planning.

strategic

The second stage of venture development is

start-up activities

A SWOT analysis refers to

strengths, weaknesses, opportunities, and threats

In many new small ventures, planning is often

lacking

The past is the best predictor of the future according to the _____ mind-set.

managerial

Which of the following would be considered a fatal mistake in strategic planning, according to researcher Michael E. Porter?

no real competitive advantage

T/F: Small firm owners/managers are usually very open and trusting about their businesses and the decisions that affect them.

false

The entrepreneurial strategy matrix measures _____ and _____.

risk and innovation

A new venture's lack of strategic planning can be the result of

lack of expertise

T/F: During the growth stage of a venture, entrepreneurs shift into a managerial style.

true

Unique managerial concerns of growing ventures encompass all of the following except

agency problems

Which of the following is not a distinct form of tolerance for failure?

an experimental failure

Which of the following are the three types of leadership of consequence to new ventures described by the text?

visionary, strategic, and managerial

T/F: A SWOT analysis refers to analyzing strengths, weaknesses, opportunities, and threats.

True

In the entrepreneurial strategy matrix, the creation of something new and different is categorized as a(n)

innovation

A growth-oriented mind-set values

flexibility

In the entrepreneurial strategy matrix, the probability of a major financial loss is categorized as a(n)

risk

Analysis of a firm's external and internal environments provides the firm with the information to develop

strategic intent and strategic mission

Emerging ventures that are rapidly expanding with constantly increasing personnel size and market operations will need

to formalize planning because there is a great deal of complexity

T/F: In a management structure, there is a need for clearly defined authority and responsibility.

true

T/F: Many research studies suggest that strategic planning influences a venture's survival.

true

T/F: Most entrepreneurs are unfamiliar with planning information sources.

true

The one-person-band syndrome is

failure to delegate

T/F: High- and low-performing firms have many similarities and differences in their long-range planning efforts.

True

T/F: Misunderstanding industry attractiveness can be a fatal flaw in strategic planning.

True

T/F: The "best" strategic plan will be influenced by the abilities of the entrepreneur, the complexity of the venture, and the nature of the industry.

True

T/F: Wealth creation occurs at the intersection of entrepreneurial and strategic actions.

True

Small business owners are often guarded about their businesses, which leads to

distrust of others when formulating a strategic plan

Which of the following strategies is not included in the "I-r"section of the entrepreneurial strategy matrix?

explore joint venture options

T/F: Four specific managerial actions are necessary during the growth stage: control, responsibility, intolerance of failure, and change.

false

T/F: In principle, incumbents and entrepreneurs face the same challenges in finding new strategic positions, whereas in practice, incumbents often have an edge.

false

T/F: Lack of expertise has never been considered a reason for the lack of strategic planning in new ventures.

false

Which of the following is not perceived as a difficulty in long-range planning?

favorable market conditions

The reason many small business managers lack expertise is that they are

generalists

New venture managers lack knowledge in the strategic planning process because they

have minimal exposure to the planning process

T/F: Many new ventures find strategic planning difficult because entrepreneurs are typically specialists.

false