Entrepreneurship Test Bank
Course Introduction
Entrepreneurship explores the process of identifying opportunities, developing innovative ideas, and transforming them into viable business ventures. This course covers the fundamentals of starting and managing new enterprises, including opportunity recognition, business planning, securing funding, marketing strategies, and growth management. Students will examine case studies, learn from real-world examples, and engage in hands-on activities designed to cultivate entrepreneurial mindset and skills. By the end of the course, participants will be equipped with the knowledge and tools needed to launch and sustain successful entrepreneurial endeavors.
Recommended Textbook Strategic Management and Competitive Advantage 6th Edition by Jay B. Barney
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12 Chapters
1185 Verified Questions
1185 Flashcards
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Page 2
Chapter 1: What Is Strategy and the Strategic Management Process
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Corporate level strategies are actions firms take to gain competitive advantages in a single market or industry.
A)True
B)False
Answer: False
Q2) A firm that is able to attract additional capital because debt holders and equity holders will scramble to make additional funds available for it is likely earning
A)normal economic performance.
B)average accounting performance.
C)temporary advantage.
D)above normal economic performance.
Answer: D
Q3) Accounts receivable turnover is an example of which type of ratio?
A)profitability
B)activity
C)liquidity
D)leverage
Answer: B
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Chapter 2: Evaluating a Firms External Environment
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99 Verified Questions
99 Flashcards
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Sample Questions
Q1) Incumbent firms may have a whole range of cost advantages compared to new competitors.
A)True
B)False
Answer: True
Q2) The products or services provided by a firm's substitutes meet ________ customer needs in ________ ways as the product provided by the firm itself.
A)different; the same
B)approximately the same; the same
C)different; different
D)approximately the same; different
Answer: D
Q3) Identify the six interrelated elements that comprise a firm's general environment.
Answer: The six interrelated elements of a firm's general environment include technological change,demographic trends,cultural trends,the economic climate,legal and political conditions and specific international events.
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Chapter 3: Evaluating a Firms Internal Capabilities
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98 Verified Questions
98 Flashcards
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Sample Questions
Q1) Which of the following is an example of formal management controls?
A)a firm's culture
B)the willingness of employees to monitor each other
C)budgeting and reporting activities
D)managerial motivation
Answer: C
Q2) If in the process of maximizing its performance,a firm engages in activities that pollute the environment,the impact of that pollution is a(n)
A)capability.
B)externality.
C)competitive advantage.
D)weakness.
Answer: B
Q3) One of the key assumptions of the RBV is resource heterogeneity.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Cost Leadership
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99 Flashcards
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Sample Questions
Q1) Which of the following statements is accurate?
A)A cost-leadership competitive strategy increases the threat of new entrants by lowering cost-based barriers to entry.
B)Firms with a low-cost position can reduce the threat of rivalry in an industry.
C)Cost leaders are especially vulnerable to substitute products.
D)Cost leaders are especially vulnerable to the threat of suppliers.
Q2) A firm that chooses a cost-leadership business strategy focuses on gaining advantages by reducing its costs to a level equal to all of its competitors.
A)True
B)False
Q3) In a functional structure,each of the major business functions is managed by a A)functional manager.
B)divisional manager.
C)chief executive officer.
D)line manager.
Q4) Identify four reasons why economies of scale can exist and four reasons why diseconomies of scale can exist.
Q5) Identify six sources of cost advantages for firms.
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Chapter 5: Product Differentiation
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99 Flashcards
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Sample Questions
Q1) Attempts to create differences in the relative perceived value of a firm's products or services are rarely made by altering the objective properties of those products or services.
A)True
B)False
Q2) Firms selling differentiated products face a horizontal demand curve.
A)True
B)False
Q3) Through advertising and other consumer marketing efforts,firms attempt to alter the perceptions of current and potential customers,but only when specific attributes of a firm's products or services are altered.
A)True
B)False
Q4) Firms that pursue a product-differentiation strategy can choose whether or not they want to reveal this strategic choice to their competition by adjusting their prices.
A)True
B)False
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Chapter 6: Flexibility and Real Options
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Sample Questions
Q1) If the value of an option is $4.59,it means an investor should be willing to pay up to $4.59 for the ________,but not the ________ to buy the stock.
A)right; obligation
B)obligation; right
C)chance; right
D)obligation; opportunity
Q2) Under conditions of ________ market uncertainty and ________ technical uncertainty,investments in new products and services have limited real option value.
A)low; low
B)low; high
C)high; low
D)high; high
Q3) The greater the uncertainty,the more valuable a real option is.
A)True
B)False
Q4) Firms may not be able to create flexibility in their cost leadership strategy. A)True
B)False
Q5) What are strategic options?
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Chapter 7: Collusion
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97 Flashcards
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Sample Questions
Q1) Which of the following is NOT a way by which firms can collude to reduce the threat of new competitors?
A)Working together to increase the barriers to entry.
B)Developing common technology standards that act as barriers to entry.
C)Moving away from using product differentiation as a barrier to entry.
D)Joint lobbying to increase the cost of entry.
Q2) Investing in a new production process that reduces a firm's marginal cost of production is an example of a ________ signal.
A)strategic
B)functional
C)soft
D)tough
Q3) Ben & Jerry's decision to not enter the frozen yogurt business is an example of the ________.
A)"puppy-dog-play"
B)"fat-cat effect"
C)"top-dog strategy"
D)"lean-and-hungry look"
Q4) What are the two types of collusion and how are they different?
Q5) What is collusion?
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Chapter 8: Vertical Integration
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100 Flashcards
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Sample Questions
Q1) A firm's vertical integration strategy is rare when few competing firms are able to create value by vertically integrating in the same way.
A)True
B)False
Q2) Discuss the firm capabilities-based explanation of how vertical integration can create value.In your discussion identify the two broad implications of this approach and when,under this approach,firms should engage in vertical integration.
Q3) Identify the organizational structure that is used to implement a vertical integration strategy and why from a CEO's perspective coordinating functional specialists to implement a vertical integration strategy almost always involves conflict resolution and how this conflict can be resolved.
Q4) If one of a firm's exchange partners behaves opportunistically,this reduces the economic value of the firm.
A)True
B)False
Q5) Strategic alliances are the major substitute for vertical integration.
A)True
B)False
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Page 10
Chapter 9: Corporate Diversification
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Sample Questions
Q1) Both shared activities and internal capital allocation are examples of economies of scope that have the potential for generating positive returns for a firm's equity holders.
A)True
B)False
Q2) One of the limits of the economies of scope that Peach Computers is leveraging in its diversification strategy is
A)they may limit the ability of a particular business to meet specific customers' needs.
B)they are significantly affected by the way a diversified firm is organized.
C)they are not tangible and may be reflected only in the shared knowledge,experience and wisdom across businesses.
D)the level and type of diversification that a firm pursues can affect the efficiency of this allocation process.
Q3) Which of the following economies of scope is costly-to-duplicate?
A)employee compensation
B)core competencies
C)shared activities
D)risk reduction
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11
Chapter 10: Organizing to Implement Corporate
Diversification
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Sample Questions
Q1) The senior executive in an M-form organization has two responsibilities: strategy formulation and strategy implementation.
A)True
B)False
Q2) If SpandoCorp wanted to measure the performance of its divisions with a method that would minimize any potential short-term bias,it should use a(n)
A)hurdle rate based measure of divisional performance.
B)divisional budget based measure of performance.
C)economic value added measure of divisional performance.
D)measure of performance based on the average level of profitability of firms in a division's industry.
Q3) In an M-form organization the role of the board of directors is to formulate corporate strategies consistent with equity holders' interests and to assure strategy implementation.
A)True
B)False
Q4) Describe the multidivisional,or M-form structure,and how it is used to implement a corporate diversification strategy.
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Chapter 11: Strategic Alliances
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Sample Questions
Q1) eBay's agreement with MBNA is most accurately characterized as a(n)
A)supply agreement.
B)licensing agreement.
C)equity alliance.
D)joint venture.
Q2) When both parties to an alliance are seeking to learn something from that alliance,a learning race can evolve.
A)True
B)False
Q3) Alliances will be preferred to acquisitions when
A)alliances limit a firm's flexibility under conditions of high uncertainty.
B)there is minimal unwanted organizational "baggage" in an acquired firm.
C)there are legal constraints on acquisitions.
D)the value of a firm's resources and capabilities does not depend on its independence.
Q4) Identify the conditions under which a strategic alliance can be rare and discuss the role that complementary resources can play in the rarity of strategic alliances.
Q5) Discuss when strategic alliances may be costly to directly duplicate.
Q6) What is the connection between strategic alliances and real options?
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Chapter 12: Mergers and Acquisitions
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100 Flashcards
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Sample Questions
Q1) If bidding and target firms are strategically related,then the economic value of these two firms combined is greater than their economic value as separate entities.
A)True
B)False
Q2) In principle,the Federal Trade Commission will allow any acquisition involving firms with headquarters in the United States that could have the potential for generating monopoly or oligopoly profits in an industry.
A)True
B)False
Q3) According to the Federal Trade Commission,a firm engages in a horizontal merger when it acquires former suppliers or customers.
A)True
B)False
Q4) Operational,functional,strategic,and cultural differences between bidding and target firms can all be compounded by the merger and acquisition process especially if that process was unfriendly.
A)True
B)False
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