Strategic Management for Entrepreneurs
Exam Preparation Guide
Course Introduction
This course explores the fundamentals of strategic management with a focus on entrepreneurial contexts, providing students with the tools and frameworks necessary to identify opportunities, develop competitive strategies, and drive sustainable growth in new ventures. Through case studies, interactive discussions, and practical exercises, participants will learn how to analyze industry environments, create value propositions, and make informed decisions under uncertainty. The course emphasizes the integration of innovation, resource acquisition, and execution strategies, equipping aspiring entrepreneurs with the skills to navigate dynamic markets and establish a strong foundation for business success.
Recommended Textbook
Entrepreneurship 11th Edition by
Robert D Hisrich
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15 Chapters
1225 Verified Questions
1225 Flashcards
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Page 2
Chapter 1: The Entrepreneurial Mind-Set
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52 Verified Questions
52 Flashcards
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Sample Questions
Q1) Describe sustainable entrepreneurship and give a few examples of economic,environmental,and social gains it can generate for others.
Answer: Sustainable entrepreneurship focuses on preserving nature,life support,and community (sustainability)in the pursuit of perceived opportunities to bring future products,processes,and services into existence for gain (entrepreneurial action)there gain is broadly construed to include economic and noneconomic benefits to individuals,the economy,and society (development).
Economic gains for others include employment opportunities,improved access to quality/valuable goods,and revenues for the government.Environmental gains generated for others include reduced air pollution,improved air quality,improved drinking water quality,and other enhanced living conditions.The social gains include improved child survival rates,longer life expectancy,superior education,equal opportunity,and so on.
Q2) 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
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Page 3
Chapter 2: Corporate Entrepreneurship
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54 Verified Questions
54 Flashcards
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Sample Questions
Q1) Organizations that require a rapid return on investment and a high sales volume usually encourage and support new ideas.
A)True
B)False
Answer: False
Q2) Define and explain the dual process model of coping with negative emotions.
Answer: Student should define process as shifting between a loss orientation and a restoration orientation.The student should also explain the two alternate approaches to loss:
loss orientation An approach to negative emotions that involves working through,and processing,some aspect of the loss experience and,as a result of this process,breaking emotional bonds to the object lost.
restoration orientation An approach to negative emotions based on both avoidance and a proactiveness toward secondary sources of stress arising from a major loss. The entrepreneur can benefit from both orientations while minimizing the costs of maintaining either for too long.
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Chapter 3: Generating and Exploiting New Entries
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97 Verified Questions
97 Flashcards
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Sample Questions
Q1) A new entry can be either offering a new product to a new market or creating a new organization.
A)True
B)False
Answer: True
Q2) By being first to market a product,the venture:
A) tends to lose customer loyalties to late entrants.
B) loses out to switching costs.
C) secures access to important sources of supply.
D) can sell its products and services at a higher price.
Answer: C
Q3) Customers always embrace change in products and services.
A)True
B)False
Answer: False
Q4) An error of commission occurs from the decision not to act on a new entry opportunity.
A)True
B)False
Answer: False
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Chapter 4: Creativity and the Business Idea
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77 Verified Questions
77 Flashcards
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Sample Questions
Q1) Forced relationships is a method of forcing confrontations in focus groups.
A)True
B)False
Q2) Brainwriting is a written form of brainstorming.
A)True
B)False
Q3) The stage in the product planning and development process in which actual sales results are available is the:
A) idea stage.
B) concept stage.
C) product development stage.
D) test marketing stage.
Q4) In the ________ method,a word is written down,then another,creating a chain of ideas.
A) reverse brainstorming
B) matrix charting
C) heuristic
D) free association
Q5) Identify and describe the three major types of innovation.
Q6) List,in order,the stages of the product planning and development process.
Page 6
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Chapter 5: Identifying and Analyzing Domestic and International Opportunities
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Sample Questions
Q1) Profits and tax benefits are common motivations for going global.
A)True
B)False
Q2) ________ is a type of merger in which acquiring and acquired companies have related production and/or distribution activities but do not have products that compete directly with each other.
A) Market extension merger
B) Horizontal merger
C) Product extension merger
D) Vertical merger
Q3) A disadvantage of using licensing as an entry strategy for a foreign market is the high amount of risk involved.
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
Q6) List the seven various aspects of culture.
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Chapter 6: Protecting the Idea and Other Legal Issues for the Entrepreneur
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76 Verified Questions
76 Flashcards
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Sample Questions
Q1) A copyright protects original works of authorship.
A)True
B)False
Q2) Copyrights are registered with:
A) the U.S. Justice Department.
B) the Internet Commission.
C) the Patent and Trademark Office.
D) the Library of Congress.
Q3) Under the Sarbanes-Oxley Act CEOs are not required to vouch for the firm's financial statements because they are not involved with the day to day operations of the firm.
A)True
B)False
Q4) Getting a trademark typically takes 2 years.
A)True
B)False
Q5) Licensing has significant value as a marketing strategy to holders of patents,trademarks,or copyrights.Describe licensing agreements in each of the three intellectual property facets: patents,trademarks,and copyright.
Q6) Identify and describe the three different types of patents.
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Chapter 7: The Business Plan: Creating and Starting the Venture
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87 Verified Questions
87 Flashcards
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Sample Questions
Q1) Business plan progress can and should be measured throughout the year.Discuss three controls that help track progress.(Students can discuss any three of the following six)
Q2) The business plan does not help an entrepreneur to obtain financing.
A)True
B)False
Q3) The part of the plan that describes the location and size of the business,the personnel and office equipment that will be needed,and the history of the venture is called the:
A) organizational plan.
B) description of the venture.
C) production plan.
D) executive summary.
Q4) The best way to address the concerns of all potential audiences when writing the business plan is to rely exclusively on a computer software package.
A)True
B)False
Q5) Explain the purpose and content of the executive summary of the business plan.
Q6) List some of the advantages of using the Internet as a resource tool.
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Chapter 8: The Marketing Plan
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89 Verified Questions
89 Flashcards
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Sample Questions
Q1) Interviewing or surveying is the most common approach used to gather primary market data.
A)True
B)False
Q2) Focus groups:
A) should be led by the entrepreneur.
B) consist of 20 to 30 potential customers.
C) discuss information in a formal and standardized procedure.
D) are an informal method of gathering market information.
Q3) Intensive,selective,and exclusive are all part of which major consideration in channel selection
A) Degree of directness
B) Number of channel members
C) Criteria in selection of channel members
D) Number of channels
Q4) Which of the following is an internal environmental variable
A) The economy
B) Technology
C) Industry demand
D) Financial resources
10
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Chapter 9: The Organizational Plan
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Sample Questions
Q1) The ________ imposes oversight responsibilities on members of the board of directors.
A) Social Security Act
B) Fair Labor Practices Act
C) Taft-Hartley Act
D) Sarbanes-Oxley
Q2) The standard term of a limited liability company is:
A) 15 years.
B) 20 years.
C) 25 years.
D) 30 years.
Q3) In order for a corporation to be legally formed the owners have to register the name and articles of incorporation and meet statutory requirements.
A)True
B)False
Q4) The hiring process is one area of business operation that the entrepreneur should not cut back on to save time.
A)True
B)False
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Chapter 10: The Financial Plan
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Sample Questions
Q1) When estimating expenses for the pro forma income statement,it is best to be conservative.
A)True
B)False
Q2) Negative cash flow:
A) results when cash receipts exceed cash payments.
B) can cause a firm to fail.
C) is included in the pro forma income statement.
D) is uncommon in new ventures.
Q3) Sales in excess of the break-even point will result in a profit,as long as the selling price remains above the cost to produce each unit.
A)True
B)False
Q4) Any amount due within a year is considered a current liability.
A)True
B)False
Q5) Labor hours,utility costs,or training costs are considered direct costs.
A)True
B)False
Q6) Explain negative cash flow.How can a profitable firm have negative cash flow
Page 12
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Chapter 11: Sources of Capital
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Sample Questions
Q1) In a factoring arrangement,the bank lends the business money using inventory as collateral.
A)True
B)False
Q2) Most established R&D limited partnerships:
A) allow a minimum amount of equity dilution.
B) are successful.
C) increase, to some extent, the risks involved in the venture.
D) have weak financial statements due to lack of outside capital.
Q3) Bootstrap financing helps avoid some of the problems of external capital like decreases in flexibility and increased impulse to spend.
A)True
B)False
Q4) Which of the following is not an example of internal financing
A) Profits
B) Accounts receivable
C) Credit from suppliers
D) Equity financing
Q5) Explain and define the four types of asset backed loans.
Q6) Identify and explain the three types of loans used for cash flow financing.
Page 13
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Chapter 12: Informal Risk Capital, Venture Capital, and Going Public
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95 Flashcards
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Sample Questions
Q1) The ________ is used to measure the short-term solvency of a venture.
A) return on investment
B) average collection period
C) debt ratio
D) current ratio
Q2) The current ratio is used to measure the long-term solvency of the venture and its ability to meet short-term debts.
A)True
B)False
Q3) A prospectus is a letter from the SEC to a company indicating corrections that need to be made in their submitted material.
A)True
B)False
Q4) Which of the following is not part of the private equity market
A) An underwriter
B) An angel
C) An SBIC
D) Crowdfunding
Page 14
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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Sample Questions
Q1) The penetration growth strategy:
A) focuses on developing new products for the existing market.
B) relies on taking market share from competitors.
C) expands the firm's product offering with complementary products. D) aims to take new products into new markets.
Q2) Even though some entrepreneurs may way to grow their business,they lack the ability to do so.
A)True
B)False
Q3) Many entrepreneurs find that as they grow they need to change their management style.
A)True
B)False
Q4) The four growth strategies outlined in the text are: penetration strategy,customer development strategy,service development strategy,and diversification strategy.
A)True
B)False
Q5) Explain the four types of entrepreneurs and firm growth.
Q6) What benefits can an entrepreneur receive from better time management
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Chapter 14: Accessing Resources for Growth From External
Sources
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94 Verified Questions
94 Flashcards
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Sample Questions
Q1) Acquisitions are so similar to ________ that at times the two terms are used interchangeably.
A) leveraged buyouts
B) joint ventures
C) mergers
D) franchises.
Q2) The best way to "increase the size of the pie" in negotiation is to use a conflict resolution approach.
A)True
B)False
Q3) Brokers for acquisitions represent the buyer,not the seller.
A)True
B)False
Q4) Which franchise below is an example of the most popular type of franchise
A) KFC
B) A Ford dealership
C) H&R Block
D) Real estate franchises
Q6) What are the four major factors in joint venture success Page 16
Q5) What are the main benefits (to the franchisee)of franchising
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Page 17
Chapter 15: Succession Planning and Strategies for
Harvesting and Ending the
Venture
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69 Verified Questions
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Sample Questions
Q1) Exchanging stock or something else for existing debt under Chapter 11 bankruptcy is called:
A) amendment.
B) extension.
C) composition settlement.
D) substitution.
Q2) Management buyouts usually involve a ________ of the venture for some predetermined price.
A) hostile takeover
B) foreclosure sale
C) cash sale
D) direct sale
Q3) About 50 percent of family firms successfully make the transition to the second generation.
A)True
B)False
Q4) If an entrepreneur recognizes the warning signs of bankruptcy early,he or she may be able to prevent it from occurring.
A)True
B)False
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