Business Strategy for Entrepreneurs
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Course Introduction
Business Strategy for Entrepreneurs explores the foundational principles and practical applications of strategic management within the context of startup ventures and small businesses. The course covers essential topics such as competitive analysis, value proposition development, market positioning, resource allocation, and growth planning. Students will learn how to analyze industry dynamics, identify unique opportunities, and formulate effective business strategies tailored to entrepreneurial environments. Through case studies, business model development, and hands-on projects, participants gain critical skills to create, evaluate, and implement strategies that drive sustainable competitive advantage and long-term success for new and growing enterprises.
Recommended Textbook
Entrepreneurship 11th Edition by Robert D
Hisrich
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Page 2
Chapter 1: The Entrepreneurial Mind-Set
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Sample Questions
Q1) Entrepreneurs' intentions are based on their perception of feasibility rather than someone else's impression of whether it is feasible.
A)True
B)False
Answer: True
Q2) A reflection task would involve thinking about what strategies should be used to solve a problem.
A)True
B)False
Answer: False
Q3) Sustainable entrepreneurship provides only environmental gains for others.
A)True
B)False
Answer: False
Q4) Which group in a professional network helps keep a new venture competitive
A) Clients or buyers
B) Mentors
C) Trade associations
D) Suppliers
Answer: C
Page 3
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Chapter 2: Corporate Entrepreneurship
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Sample Questions
Q1) ________ includes initiative and risk taking,as well as competitive aggressiveness and boldness.
A) New business venturing
B) Self-renewal
C) Innovativeness
D) Proactiveness
Answer: D
Q2) An entrepreneur with loss-orientation would talk about the business-failure with a close friend or relative.
A)True
B)False
Answer: True
Q3) Entrepreneurial culture and growth orientation consists of all of the following except:
A) encouraging employees to generate ideas.
B) focusing on opportunities.
C) the desire to grow at a slow and controlled pace.
D) being creative.
Answer: C
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Chapter 3: Generating and Exploiting New Entries
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Q1) Explain what constitutes a new entry.
Answer: New entry refers to (1)offering a new product to an established or new market,(2)offering an established product to a new market,or (3)creating a new organization (regardless of whether the product or the market is new to competitors or customers).
Q2) Franchising:
A) is the only imitation strategy discussed in the text.
B) reduces risk of downside loss.
C) is the same as the me-too strategy.
D) reduces the amount of competition an entrepreneur will face.
Answer: B
Q3) Newness of a new entry is always an advantage.
A)True
B)False
Answer: False
Q4) Customers always embrace change in products and services.
A)True
B)False
Answer: False
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Chapter 4: Creativity and the Business Idea
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Sample Questions
Q1) The opportunity recognition process contains all of the following except:
A) work experience
B) reformation
C) entrepreneurial alertness
D) networks
Q2) Creativity tends to decrease with age.
A)True
B)False
Q3) Most of the ideas generated by a brainstorming group progress into further development.
A)True
B)False
Q4) In the checklist method,a new idea is developed through a list of related issues or suggestions.
A)True
B)False
Q5) The files of the U.S.Patent Office are kept confidential and entrepreneurs cannot study their contents.
A)True
B)False
Page 6
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Chapter 5: Identifying and Analyzing Domestic and International Opportunities
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Sample Questions
Q1) Only the pricing element in the business strategy of an international entrepreneur has the potential to be affected by the multiplicity of legal environments.
A)True
B)False
Q2) A country's ________ is the difference between the value of a country's imports and exports over time.
A) gross national product
B) purchasing power parity
C) current account
D) foreign exchange reserve
Q3) Nonverbal or hidden language of a culture accounts for a small percentage of all understood communication.
A)True
B)False
Q4) What is a nonequity arrangement
Define the two major types of nonequity arrangements: licensing and turn-key projects,and give at least one advantage and disadvantage for each.
Q5) List five of the nine major reasons why an entrepreneur would go global
Page 7
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Chapter 6: Protecting the Idea and Other Legal Issues for the Entrepreneur
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Q1) Intellectual property is any patents,trademarks,copyrights,or trade secrets held by an entrepreneur.
A)True
B)False
Q2) Authors or publishers of software are protected under:
A) copyrights.
B) trademarks.
C) utility patents.
D) trade secrets.
Q3) Which of the following is true regarding the Sarbanes-Oxley Act
A) It only applies to companies that make over $10 million in gross revenue.
B) Private companies are not included in this act.
C) The act does not cover fraud via TV or radio.
D) The act only covers a narrow range of corporate governance activity.
Q4) Life insurance of key employees is mandatory in some states.
A)True
B)False
Q5) Private companies are not included in the Sarbanes-Oxley Act.
A)True
B)False
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Chapter 7: The Business Plan: Creating and Starting the Venture
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Sample Questions
Q1) In building a marketing plan,the entrepreneur should use a process designed as a pyramid,starting with narrow data and working down to broader-based information.
A)True
B)False
Q2) ________ are good sources of information for financial and industry operating ratios.
A) RMA eStatement Studies and BizMiner
B) Market Share Reporter and the SBA report
C) U.S. Census Statistical Abstracts and MarketLine
D) Encyclopedia for American Industries and Mintel Reports
Q3) What types of information might an entrepreneur needs in regards to manufacturing operations
Q4) By 2022 it is projected that online sales will account for 17 percent of all retail sales.
A)True
B)False
Q5) Most entrepreneurs have little difficulty with gathering market information.
A)True
B)False
9
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Chapter 8: The Marketing Plan
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Sample Questions
Q1) Market segmentation is the process of:
A) describing market conditions.
B) dividing the market into smaller homogeneous groups.
C) presenting future opportunities.
D) exploring new market opportunities.
Q2) The marketing system identifies the major interacting components,both internal and external to the firm.
A)True
B)False
Q3) When preparing the industry analysis section of the business plan,using secondary sources is not appropriate.
A)True
B)False
Q4) Which survey method is the fastest method for obtaining data
A) Telephone
B) Mail
C) Personal
D) Internet
Q5) Describe the steps in the marketing plan flowchart.
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Chapter 9: The Organizational Plan
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Sample Questions
Q1) The legal form of business with the most alternatives for raising capital is the:
A) proprietorship.
B) corporation.
C) limited partnership.
D) full partnership.
Q2) The S corporation cannot have more than 75 shareholders.
A)True
B)False
Q3) Design decisions reflect the formal structure of the organization and the informal structure is the organization culture that evolves over time.
A)True
B)False
Q4) The partnership is the most attractive type of business formation for raising capital. A)True
B)False
Q5) The most expensive type of business to start is the partnership.
A)True
B)False
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Chapter 10: The Financial Plan
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Q1) A ________ summarizes all the projected sources and applications of funds available to the venture and how these funds will be disbursed.
A) pro forma income statement
B) pro forma sources and applications of funds statement
C) break-even analysis
D) cash flow statement
Q2) Which of the following is likely to be a fixed cost
A) Materials
B) Commissions
C) Depreciation
D) Direct labor
Q3) Capital budgets project expenditures on:
A) new equipment.
B) future production costs.
C) advertising.
D) costs of goods sold.
Q4) Labor hours,utility costs,or training costs are considered direct costs.
A)True
B)False
Q5) Explain negative cash flow.How can a profitable firm have negative cash flow
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Chapter 11: Sources of Capital
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Sample Questions
Q1) During Phase II of an SBIR grant up to ________ can be awarded.
A) $100,000
B) $500,000
C) $750,000
D) $1,000,000
Q2) Explain and define the four types of asset backed loans.
Q3) Under the ________ program,federal agencies with budgets over $1 billion are required to set aside 0.3 percent for small businesses.
A) Small Business Technology Transfer
B) Small Business Innovation Research
C) SBA Microloan
D) Regulation D
Q4) Which of the following is not true about the costs and benefits of R&D limited partnerships
A) Most are not successful
B) Risk is reduced
C) Costs can be high to create the partnership
D) Most take less than three months to establish
Q5) Identify and explain the three types of loans used for cash flow financing.
Q6) Explain the three major components of an R&D partnership.
Page 13
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Chapter 12: Informal Risk Capital, Venture Capital, and Going Public
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Q1) ________ is the increase in value of the organization during a specific period of time.
A) Due diligence
B) Factors in valuation
C) Significant capital appreciation
D) Book value
Q2) For the venture capitalist,the executive summary is an important part of the business plan.
A)True
B)False
Q3) The due diligence phase of the venture-capital process includes:
A) outlining the principle terms.
B) a detailed review of the company's history.
C) preparation of an investment memorandum.
D) a preliminary study of the business plan.
Q4) The quiet period is a 90-day period in going public when company information that will help increase stock price should and can be released.
A)True
B)False
Q5) Identify the main advantages and disadvantages of going public.
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Chapter 13: Strategies for Growth and Managing the Implication of Growth
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Q1) ________ is the process of improving an individual's productivity through more efficient use of time.
A) Time management
B) Delegation
C) The principle of effectiveness
D) The principle of prioritized planning
Q2) To implement participative management the entrepreneur should have open communication with employees.
A)True
B)False
Q3) Define and explain the principles of desire,effectiveness and analysis as they relate to time management.
Q4) Growing ventures tie up more cash in their inventory than in any other part of the business.
A)True
B)False
Q5) Effective time management can increase an entrepreneur's job satisfaction.
A)True
B)False
Q6) Explain the four types of entrepreneurs and firm growth. Page 15
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Chapter 14: Accessing Resources for Growth From External
Sources
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Q1) Quantitative methods of analyzing the fairness of an LBO's asking price include price-earnings ratios,present value of future earnings,and book value.
A)True
B)False
Q2) In the ________ task,the mutual benefits from the relationship are explored,making the "size of the pie" larger.
A) distributive
B) assessment
C) integrative
D) reservation
Q3) The disclosure document provided by the franchisor:
A) is required by the FTC.
B) will state a guaranteed yearly return for the franchisee.
C) is done on a voluntary basis.
D) has information that is certified by a CPA and the FTC so it is always a reliable source of data.
Q4) With regard to negotiation,define the following: distribution task,integration task and reservation price.
Q5) What are the main benefits (to the franchisee)of franchising
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Chapter 15: Succession Planning and Strategies for
Harvesting and Ending the Venture
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Q1) The early signs of bankruptcy include all of the following except:
A) key personnel leave the company.
B) payroll taxes are not paid.
C) suppliers demand payment in cash.
D) All of these are early signs of bankruptcy.
Q2) The key issue in passing the business on to an employee is A) long-term debt
B) ownership
C) cash flow
D) experience
Q3) About one third of all new start-ups fail in their first years.
A)True
B)False
Q4) The bankruptcy type that is most common is Chapter 7 bankruptcy.
A)True
B)False
Q5) Adversity faced during a business's life cycle may include external factors such as the economy,competition,or poor management.
A)True
B)False
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