Question 1

Which best describes entrepreneurs?
a. Those who identify and exploit previously unexplored opportunities.
b. Founders and owners of new businesses.
c. Managers of small existing firms i.e. those with fewer than 500 employees).
d. All of the above.
e. None of the above.

Accepted Answer

The answer of Which best describes entrepreneurs?
a. Those who identify...

Question 2

Harsh bankruptcy laws become exit barriers but not significant barriers to entry.

Accepted Answer

The answer of Harsh bankruptcy laws become exit barriers but...

Question 3

Which of the following would be least likely to enhance the credibility of a SME?
a. Specialize in standardized commodities such as books and airline tickets.
b. Use E-commerce sites.
c. Deal in products in which quality is an issue with consumers.
d. Form strategic alliances with larger firms.
e. Willingness to take ownership of intermediated goods and services.

Accepted Answer

The answer of Which of the following would be least...

Question 4

Entrepreneurs and their firms are engines of the creative destruction process.

Accepted Answer

Entrepreneurs and their firms drive innovation and competition, which can lead to the destruction of older businesses and products. This process of creative destruction is seen as an important driver of economic growth and progress.

Question 5

Personal traits of entrepreneurs are no different than non-entrepreneurs.

Accepted Answer

Research suggests that entrepreneurs tend to possess certain personality traits such as risk-taking, resilience, creativity, and a desire for autonomy, which may differ from those of non-entrepreneurs.

Question 6

To achieve success, entrepreneurial resources must be:
a. Of low value so as to reduce cost.
b. Common.
c. Non-core competencies that are hard to imitate.
d. Organizationally embedded.
e. All of the above.

Accepted Answer

The answer of To achieve success, entrepreneurial resources must be:
a....

Question 7

Behavior of entrepreneurs differs from non-entrepreneurs.

Accepted Answer

Entrepreneurs have a different mindset and approach to taking risks and managing their businesses compared to non-entrepreneurs. They are more comfortable with uncertainty and have a higher tolerance for risk. They also tend to exhibit more creativity, independence, and a willingness to innovate.

Question 8

Suppose you are an SME with limited financial resources. In view of that, your best choice for entering foreign markets would be:
a. Foreign direct investment.
b. Licensing or franchising.
c. Direct exporting.
d. None of the above.
e. Any of the above.

Accepted Answer

The answer of Suppose you are an SME with limited...

Question 9

Exporting only after receiving unsolicited foreign inquiries is best described as:
a. Direct exporting.
b. Indirect exporting.
c. Passive or sporadic exporting.
d. Inactive exporting.
e. None of the above.

Accepted Answer

The answer of Exporting only after receiving unsolicited foreign inquiries...

Question 10

Indirect, subtle attacks that large rivals may not immediately recognize as competitive challenges are hallmarks of which of the following five entrepreneurial strategies?
a. Growth.
b. Innovation.
c. Network.
d. Financing and Governance.
e. Harvest and Exit.

Accepted Answer

The answer of Indirect, subtle attacks that large rivals may...

Question 11

One general conclusion that we can reach regarding entrepreneurship is that:
a. Regulatory burdens on new start-ups are much easier in poorer countries.
b. The less entrepreneur-friendly a country's formal institutional requirements are the more likely entrepreneurship will contribute to economic development.
c. Informal institutions do not affect entrepreneurships.
d. Individualistic and low uncertainty-avoidance societies tend to foster relatively more entrepreneurship.
e. Collectivistic societies may result in relatively higher levels of entrepreneurship.

Accepted Answer

The answer of One general conclusion that we can reach...

Question 12

In recent years, the country with the least number of bankruptcies was:
a. Japan.
b. France.
c. Great Britain.
d. Germany.
e. The United States.

Accepted Answer

The answer of In recent years, the country with the...

Question 13

Cautions that should be acknowledged by entrepreneurs is that it may be difficult to:
a. Predict consumer preferences.
b. Effectively price innovative products/services.
c. Build sufficient capacity.
d. All of the above.
e. None of the above.

Accepted Answer

The answer of Cautions that should be acknowledged by entrepreneurs...

Question 14

Which of the following are NOT true in regards to small and medium-sized enterprises SMEs).
a. They create approximately 50% of total value added in the world.
b. They generate 60-90% of employment, depending on where they are located.
c. Each year 4-6% of adult working population in North America, Western Europe, Central and Eastern Europe attempt to start a new venture.
d. Around the world, a majority of entrepreneurial firms including 60% of start-ups in the US) succeed within 6 years.
e. Entrepreneurship is not the exclusive domain of small, young firms.

Accepted Answer

The answer of Which of the following are NOT true...

Question 15

Which of the following is NOT an example of one of the five entrepreneurial strategies?
a. Use speed and stealth to disrupt and pre-empt competitors.
b. Emphasize analysis over action.
c. Less novel, but substantially new ways of doing business can also be innovative.
d. Centrally located network positions are most helpful.
e. Selling an equity stake to outside investors.

Accepted Answer

The answer of Which of the following is NOT an...

Question 16

A potential benefit of an initial public offering IPO):
a. Can increase firm's financial stability.
b. Focus on short-term results.
c. Fiduciary duty.
d. Entrepreneurs' freedom of action.
e. Increased scrutiny by stakeholder groups.

Accepted Answer

The answer of A potential benefit of an initial public...

Question 17

In a manufacturing setting, the purchase of the right to use another firm's proprietary technology is referred to as:
a. Direct exporting.
b. Licensing.
c. Franchising.
d. Exporting.
e. Importing.

Accepted Answer

The answer of In a manufacturing setting, the purchase of...

Question 18

One problem for failed entrepreneurs is that many will not acknowledge failure and thus avoid exiting the business despite escalating losses.

Accepted Answer

This is a common problem for failed entrepreneurs, as they may be unwilling to acknowledge failure and may continue to pursue the business even as losses mount.

Question 19

Which would tend to result in a greater level of entrepreneurship?
a. Fewer numbers of incumbents.
b. Capital-intensive industries.
c. Weak bargaining power of suppliers.
d. Ability to reduce the bargaining power of buyers.
e. Lack of threat to incumbents from substitute products/ and services.

Accepted Answer

The answer of Which would tend to result in a...

Question 20

Which of the following is true regarding internationalizing firms?
a. Only large MNEs are able to internationalize successfully.
b. SMEs do not operate solely in domestic markets.
c. Start-ups are unable to do business in foreign markets from the very beginning - they cannot be "born global."
d. Transaction costs do not prevent large firms from internationalizing.
e. Opportunism is easy to detect and remedy in international markets.

Accepted Answer

The answer of Which of the following is true regarding...

Quiz 5: Growing and Internationalizing

Which best describes entrepreneurs? a. Those who identify and exploit previously unexplored opportunities. b. Founders and owners of new businesses. c. Managers of small existing firms i.e. those with fewer than 500 employees). d. All of the above. e. None of the above.

Harsh bankruptcy laws become exit barriers but not significant barriers to entry.

Entrepreneurs and their firms are engines of the creative destruction process.

Personal traits of entrepreneurs are no different than non-entrepreneurs.

To achieve success, entrepreneurial resources must be: a. Of low value so as to reduce cost. b. Common. c. Non-core competencies that are hard to imitate. d. Organizationally embedded. e. All of the above.

Behavior of entrepreneurs differs from non-entrepreneurs.

Suppose you are an SME with limited financial resources. In view of that, your best choice for entering foreign markets would be: a. Foreign direct investment. b. Licensing or franchising. c. Direct exporting. d. None of the above. e. Any of the above.

Exporting only after receiving unsolicited foreign inquiries is best described as: a. Direct exporting. b. Indirect exporting. c. Passive or sporadic exporting. d. Inactive exporting. e. None of the above.

Indirect, subtle attacks that large rivals may not immediately recognize as competitive challenges are hallmarks of which of the following five entrepreneurial strategies? a. Growth. b. Innovation. c. Network. d. Financing and Governance. e. Harvest and Exit.

In recent years, the country with the least number of bankruptcies was: a. Japan. b. France. c. Great Britain. d. Germany. e. The United States.

Cautions that should be acknowledged by entrepreneurs is that it may be difficult to: a. Predict consumer preferences. b. Effectively price innovative products/services. c. Build sufficient capacity. d. All of the above. e. None of the above.

A potential benefit of an initial public offering IPO): a. Can increase firm's financial stability. b. Focus on short-term results. c. Fiduciary duty. d. Entrepreneurs' freedom of action. e. Increased scrutiny by stakeholder groups.

In a manufacturing setting, the purchase of the right to use another firm's proprietary technology is referred to as: a. Direct exporting. b. Licensing. c. Franchising. d. Exporting. e. Importing.

One problem for failed entrepreneurs is that many will not acknowledge failure and thus avoid exiting the business despite escalating losses.

Which would tend to result in a greater level of entrepreneurship? a. Fewer numbers of incumbents. b. Capital-intensive industries. c. Weak bargaining power of suppliers. d. Ability to reduce the bargaining power of buyers. e. Lack of threat to incumbents from substitute products/ and services.