Entrepreneurship and Strategy Practice Exam
Course Introduction
Entrepreneurship and Strategy explores the foundational concepts and practical tools essential for launching, managing, and scaling new ventures. The course examines the entrepreneurial process from opportunity recognition to business model development, resource acquisition, and competitive positioning. Students will learn to formulate and implement effective strategies within uncertain and dynamic environments, assess market opportunities, and build sustainable competitive advantages. Emphasis is placed on real-world case studies, strategic decision-making, innovation, and the role of leadership in fostering organizational growth and adaptability.
Recommended Textbook Strategic Management 4th Edition by Frank
Rothaermel
Available Study Resources on Quizplus
12 Chapters
1217 Verified Questions
1217 Flashcards
Source URL: https://quizplus.com/study-set/192
Page 2
Chapter 1: What Is Strategy
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/2745
Sample Questions
Q1) A positive relationship between vision statements and firm performance is more likely to exist when
A) visions are product-oriented.
B) internal stakeholders are isolated from defining and revising the visions.
C) organizational structures are aligned with the firm's vision statement.
D) vision statements are equivalent to listening to the customers.
Answer: C
Q2) Explain product-oriented vision statements with the help of an example.
Answer: Student answers may vary.
A product-oriented vision defines a business in terms of a good or service provided. Product-oriented visions tend to force managers to take a myopic view of the landscape. An example of a product-oriented vision statement would be "We want to be the best manufacturer in the industry."
Q3) Managers should create two sets of core values, one for employees and one for themselves.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: Strategic Leadership: Managing the Strategy Process
Available Study Resources on Quizplus for this Chatper
101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/2746
Sample Questions
Q1) Which of following practices of a firm satisfies its ethical responsibilities?
A) using plastic as the packaging material though it is harmful to the environment, yet legal
B) outsourcing production to a less developed country and paying wages that are below its own country's accepted minimum wages
C) using advertising and other forms of promotion to endorse luxurious lifestyles
D) selling vaccines at a subsidized price in a less developed country even though this results in reduced shareholder returns
Answer: D
Q2) Define strategic leadership.
Answer: Strategic leadership pertains to executives' use of power and influence to direct the activities of others when pursuing an organization's goals.
Q3) A firm is required by society and its shareholders to meet its ethical and philanthropic responsibilities.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: External Analysis: Industry Structure,
Competitive Forces, and Strategic Groups
Available Study Resources on Quizplus for this Chatper
101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/2747
Sample Questions
Q1) Competitive rivalry based solely on ________ is destructive to firms as it transfers most of the value created in the industry to the customers.
A) price-cutting
B) new product releases
C) promotional campaigns
D) product differentiation
Answer: A
Q2) Given the structure of the automobile industry, entering the auto manufacturing industry seemed risky. Yet Tesla Motors joined the fray. Rather than attempting to compete head-on with internal combustion engines, Tesla Motors entered the all-electric car segment, a much less crowded niche in the overall car industry. Which of the following is Tesla most hoping to benefit from in this market niche?
A) network effects
B) economies of scale
C) customer switching costs
D) capital requirements
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Internal Analysis: Resources, Capabilities, and Core Competencies
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/2748
Sample Questions
Q1) The management of a company is assessing the value of all the tangible resources the company owns. Which of the following will be included in this assessment?
A) a reputation for fast customer service
B) a culture of proactive communication
C) patents for electronic components
D) the punch presses that produce parts
Q2) How do managers benefit from conducting a SWOT analysis?
Q3) Leading guitar string producer Wound Up Inc. has enjoyed a competitive advantage based on its proprietary coating that gives its strings a clearer sound and longer lifespan than uncoated strings. One of Wound Up's competitors, however, has recently developed a similar coating using less expensive ingredients, which allows it to charge a lower price than Wound Up for similar-quality strings. Wound Up's competitive advantage is in danger due to
A) a lack of perceived value.
B) a lack of organization.
C) direct imitation and substitution.
D) resource immobility.
Q4) Explain the value chain perspective of a firm's competitive advantage.
Q5) Define the value chain.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Competitive Advantage, Firm Performance, and Business Models
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/2749
Sample Questions
Q1) Competitive advantage goes to the firm that maximizes the difference between the cost of producing a good and the retail price that consumers pay.
A)True
B)False
Q2) Which of the following is an advantage of the balanced-scorecard?
A) It is a tool for both strategic formulation and strategic implementation.
B) It allows managers to translate a firm's vision into measureable operational goals.
C) The balanced-scorecard is independent of the skills of the managers responsible for its implementation.
D) Its implementation is a one-time effort and does not require continuous tracking of metrics or updating of strategic objectives.
Q3) Explain how business models put strategy into action.
Q4) What are the three financial ratios that constitute return on revenue, and what do they tell us?
Q5) What is risk capital?
Q6) Accounting data focus mainly on tangible assets, which are no longer the most important. Elaborate on this statement.
Page 7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Business Strategy: Differentiation, Cost
Leadership, and Blue Oceans
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/2750
Sample Questions
Q1) Which of the following provides an example of a firm in a red ocean?
A) Chique Apparel offered clothing at a low price but failed to differentiate its product as being exclusive.
B) Cheap Apparel offered clothing at a price matching that of its competitors and, as a result, it had lower profit margins.
C) Goode Apparel offered clothing at a mid-range price but failed to differentiate its product as being of decent quality.
D) Top Drawer Apparel offered clothing at a higher price than competitors and, as a result, failed to make a profit.
Q2) In a focused cost-leadership strategy, a firm
A) caters to the segment of the market that is least cost-sensitive.
B) provides high-priced products for many different segments of the mass market.
C) delivers low-cost products and services to a specific, narrow part of the market.
D) focuses on reducing the economic value created to drive down costs.
Q3) What is higher value associated with?
Q4) Explain blue ocean strategy with the help of an example.
Q5) Discuss the threats firms face when they pursue a differentiation strategy.
Page 8
Q6) What are the two different generic business strategies available to firms?
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Business Strategy: Innovation, Entrepreneurship, and Platforms
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/2751
Sample Questions
Q1) The pace of innovation has slowed in the 21st century.
A)True
B)False
Q2) Network effects always lead to a virtuous cycle in which an increasing number of customers improves the quality of a product or service, thereby attracting more customers and continuing the cycle.
A)True
B)False
Q3) Dominic is the founder of an innovative "impromptu catering" business that provides elegant, healthy party food and decorations on less than 24 hours' notice. The company has grown by over 150 percent in the past year. Dominic credits some of the company's success to studying the strategies of prominent social entrepreneurs, such as Wikipedia's Jimmy Wales. What can Dominic do to exemplify the social entrepreneurship model?
A) Launch a social media platform for food lovers.
B) Provide free weekly catered meals for the homeless.
C) Seek investments from venture capitalists.
D) Buy out his closest competitors to ensure a competitive advantage.
Q4) Briefly discuss the strategic implications of the crossing-the-chasm framework.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Q5) Why do incumbent firms favor incremental innovation over radical innovation?
Chapter 8: Corporate Strategy: Vertical Integration and Diversification
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/2752
Sample Questions
Q1) Which of the following is an example of an external transaction cost?
A) the cost of setting up a production unit
B) the cost of searching for a contract manufacturer
C) the cost of recruiting and retaining employees
D) the cost of maintaining plant and machinery
Q2) Describe the two types of vertical integration along the industry value chain.
Q3) There are many reasons why firms need to grow. Which of the following reasons is strongly influenced by economies of scale?
A) increasing profits
B) lowering costs
C) reducing risk
D) motivating managers
Q4) Discuss the various general diversification strategies available to a firm.
Q5) Not all firms are motivated by a need to grow.
A)True
B)False
Q6) Discuss the benefits of taper integration.
Q7) What are the three types of specialized assets?
Q8) Why are generic industry value chains called vertical value chains? Page 10
Q9) What is a conglomerate? How does it benefit from a diversification strategy?
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 9: Corporate Strategy: Strategic Alliances, Mergers, and Acquisitions
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/2753
Sample Questions
Q1) Sanibel Autos Inc. merged with its competitor Vroom Autos Inc. This allowed Sanibel Autos to use its technological competencies along with Vroom Autos' marketing capabilities to capture a larger market share than what the two entities individually held. What type of integration does this scenario best illustrate?
A) supply-chain
B) technological
C) horizontal
D) perfect
Q2) Elegance Inc. is a large cosmetics company that made an initial small investment in a start-up company, Peace Planet, which was developing an organic face lotion. This gave Elegance controlling interests in the start-up company. However, Peace Planet soon began to have financial difficulties because of principal-agent problems. As a result, Elegance did not invest in the next stage of development and pulled out of the company. This approach to strategic alliance is referred to as a
A) break-even analysis.
B) partial joint venture.
C) credible commitment.
D) real-options perspective.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 10: Global Strategy: Competing Around the World
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/2754
Sample Questions
Q1) Badlands Corp., a tool and die maker, is considering where to locate its new factories and offices. According to the CAGE distance model, which of these countries is statistically most attractive to Badlands?
A) one that is much poorer than the country where Badlands has its headquarters
B) one that is in the same trading bloc as Badlands' home country
C) a country that does not share the same currency as Badlands' home country
D) the country that is the greatest physical distance from existing Badlands facilities
Q2) What are the two opposing forces that multinational companies have to face when competing around the globe?
Q3) Bejukistan Laboratories Inc. has a national competitive advantage in the pharmaceutical industry. This means that the country
A) is a world leader in the pharmaceutical industry.
B) has nationalized the pharmaceutical industry.
C) has low levels of competition, providing other multinational companies with an opportunity to take over the pharmaceutical industry.
D) is a potential foreign market for multinational pharmaceutical companies to sell their products.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 11: Organizational Design: Structure, Culture, and Control
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/2755
Sample Questions
Q1) In which of the following ways does Zappos achieve organizational control?
A) It continually changes the organizational values that guide its employees.
B) It refrains from monitoring its employees' calls.
C) It encourages employees to be creative and innovate and to go the extra mile to deliver a wonderful customer experience.
D) It enforces that each group member's compensation depends in part on the group's overall productivity.
Q2) Which of the following real-world scenarios best exemplifies the use of organizational culture to build competitive advantage?
A) W. L. Gore & Associates organizes its employees into project-based teams.
B) Apple develops high-tech products that are preferred by consumers across the world.
C) Southwest Airlines pilots sometimes help load baggage, which results in quick turnaround time.
D) GM offers compensation if its products do not meet a consumer's expectations.
Q3) What are the key elements of organizational structure? Define each element.
Q4) What is organizational culture? What are the key elements of organizational culture?
Q5) Discuss how a differentiation strategy is used with a functional structure.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 12: Corporate Governance and Business Ethics
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/2756
Sample Questions
Q1) How do principal-agent problems cascade down the hierarchy in an organization? Describe an example of principal-agent problems. The example can be from your reading in this class, your reading outside of class, or your own experience.
Q2) Gino is the CEO of a financial services firm. What action should Gino take to be sure the firm avoids moral hazards?
A) He should closely monitor the behavior and performance of new employees to be certain that they have the skills they claimed to have in interviews.
B) Gino must increase hiring and develop influential relationships with government officials so that his firm will be considered "too big to fail."
C) He must create a plan in which government agencies or a consortium of other financial services firms will assume any future debts of the company.
D) Gino should define undue risk-taking, institute strict auditing of loans, and make it clear that the company will fire employees who lend recklessly.
Q3) Describe the arguments for and against the CEO of a company serving as the chair of the board of directors.
To view all questions and flashcards with answers, click on the resource link above.
15