Sample Test
One of the ways entrepreneurs achieve success is by using resources more efficiently. This is an example of how entrepreneurs use ______________ strategy. an imitative A. an imitative B. a low-cost leader C. a differentiation D. a combination
B
Which of the following statements about venture capital is not true? A. Entrepreneurs raise venture capital by selling shares of ownership in their business. B. Venture capital is a form of public equity financing. C. Venture capital is used to finance rapid growth or large capital expenditures. D. Venture capital groups can often provide helpful management advice
B.
. When an organization with a simple structure increases its sales revenue and volume of outputs, it is most likely to develop a ______________ structure A. divisional B. product-market C. functional D. geographic
C
A simple structure is characterized by _____________. A. high specialization and low centralization B. low formality and low creativity C. high formality and low centralization D. low specialization and high centralization
D.
Angel investors are private individuals who provide equity investments for seed capital during the later stages of a new venture. True or False?
False
As an industry matures, there are greater opportunities for change and so innovations tend to be more radical. True or False?
False
As investors, venture capitalists rarely provide any help or services to entrepreneurial firms other than financing. True or False?
False
Corporate business incubators often provide physical space and business services to internal ventures, but not funding. True or False?
False
Corporate venturing that is focused permeates all parts of the organization and involves every member of the organization. True or False?
False
In a simple structure where the owner manager makes most of the important decisions, extensive rules and regulations are used to maintain order. True or False?
False
Opportunity recognition involves two phases of activity: discovery and execution. True or False?
False
Radical innovations are evolutionary applications of novel ideas within existing paradigms. True or False?
False
The evaluation phase of opportunity recognition occurs when an entrepreneur has an insight about a new business venture, often based on prior knowledge. T or F?
False
The majority of entrepreneurial firms are started with financing from venture capitalists and banks. True or False?
False
The strategy and structure of a firm change as the firm increases in size, diversifies into new product markets, and limits its geographic scope. True or False?
False
The term innovation refers primarily to an invention that uses the latest technologies. True or False?
False
To enhance integration and control of related product market activities, the functional structure minimizes centralization. True or False?
False
Venture capital is a form of public equity financing used to help young firms grow rapidly. True or False?
False
A major disadvantage of adopting a divisional structure is the tendency for managers to focus on short-term objectives. True or False?
True
A small firm with a simple structure often fosters creativity and individualism because of its informal atmosphere. True or False?
True
As firms grow, owner managers often need to hire functional specialists to handle the increased information-processing burden. True or False?
True
Because new ventures typically are small, they usually do not have high economies of scale relative to competitors. True or False?
True
Business incubators are designed to support fledgling entrepreneurial ventures until they can operate as stand-alone businesses. True or False?
True
Corporate entrepreneurship is sometimes called intrapreneurship. True or False?
True
Disruptive innovations are those that overturn markets by providing an altogether new approach to meeting customer needs. True or False?
True
Firms using a focused approach to corporate entrepreneurship typically separate corporate venturing activities from ongoing operations of the firm. True or False?
True
Opportunity recognition is the process of identifying, selecting, and developing entrepreneurial opportunities. True or False?
True
Process innovations are often associated with a low cost leadership strategy. True or False?
True
Product innovations are commonly associated with a differentiation strategy. True or False?
True
Radical innovation often involves open-ended experimentation which can be very time consuming. True or False?
True
The majority of entrepreneurial start-ups are financed with personal savings and the contributions of family and friends. T or F?
True
The term, angel investors, refers to private individuals who provide seed capital to young ventures. True or False?
True
Three key interdependent strategic leadership activities are: designing the organization; determining its direction; and nurturing a culture dedicated to excellence and ethical behavior. True or False?
True
Venture capital funding for entrepreneurial ventures is usually available only after the start-up has become a going concern and established a track record. True or False?
True
