Question 1

Co-opetition, where competitors work together behind the scenes, is a form of illegal tacit collusion.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not a common source of new business opportunities?

Accepted Answer

A)  current or past work experiences
B)  suggestions by family or friends
C)  chance event
D)  future workE) A) and D)
F) A) and C)

Question 3

According to a study by the Kaufmann Foundation, which of the following is the largest source of funding for businesses that have been operating at least five years?

Accepted Answer

A)  public financing
B)  venture capital
C)  loans
D)  angel financingE) B) and D)
F) None of the above

Question 4

Once an adaptive entrant has achieved initial success, the company is safe from copycat competition.

Accepted Answer

A) True 
 B)False

Question 5

Angel investors are private individuals who provide equity investments for seed capital during the later stages of a new venture.

Accepted Answer

A) True 
 B)False

Question 6

When an opportunity is attractive long enough for it to be successfully developed and deployed, it is said to be

Accepted Answer

A)  value creating.
B)  durable.
C)  achievable.
D)  affordable.E) All of the above
F) None of the above

Question 7

Private individuals who provide seed capital to young ventures are known as

Accepted Answer

A)  gazelles.
B)  angels.
C)  cash cows.
D)  rising stars.E) None of the above
F) All of the above

Question 8

Forbearance is a particularly aggressive type of competitive attack.

Accepted Answer

A) True 
 B)False

Question 9

Choosing which new entry strategy is best depends on competitive financial and marketplace considerations. The greatest opportunities most likely will be in existing markets, rather than in new markets.

Accepted Answer

A) True 
 B)False

Question 10

Colgate-Palmolive, Unilever, Proctor and Gamble, and Henkel cooperated legally when they agreed to prearranged prices at which they would sell to retailers.

Accepted Answer

A) True 
 B)False

Question 11

When attacked, older and larger firms tend to respond more quickly, but their responses are often more predictable.

Accepted Answer

A) True 
 B)False

Question 12

Rocket Internet, founded in 2007, funds start-ups. One of its successful investments was in Lamoda, a retailing fashion site in Russia that is modeled after Zappos. This is an example of a pioneering new entry strategy.

Accepted Answer

A) True 
 B)False

Question 13

When an industry is mature, a(n)  ______________ strategy is considered to be one of the most effective approaches for a new entrant.

Accepted Answer

A)  focus
B)  differentiation
C)  overall low-cost
D)  small businessE) C) and D)
F) None of the above

Question 14

To be successful within a market niche, the key strategic requirement is to have a good differentiation strategy.

Accepted Answer

A) True 
 B)False

Question 15

According to the text, for an entrepreneurial start-up to be successful, three ingredients are critical. What are they?

Accepted Answer

A)  good ideas, a team of investors, and a business plan
B)  a viable opportunity, available resources, and a qualified and motivated founding team
C)  an opportunity, a marketing plan, and office space
D)  management, marketing, and moneyE) None of the above
F) All of the above

Question 16

Which of the following is not a primary source of financing for entrepreneurial start-ups?

Accepted Answer

A)  investments by family and friends
B)  public equity
C)  private investors
D)  personal savingsE) C) and D)
F) B) and D)

Question 17

A small firm may be unable to mount a serious attack due to lack of resources. As a result, it is more likely to react to ______ actions such as incentive pricing or enhanced service offerings, because they are less costly to attack than large-scale strategic actions.

Accepted Answer

A)  forbearance
B)  co-opetition
C)  tactical
D)  strategicE) B) and C)
F) All of the above

Question 18

In competitive dynamics, new entrants may be force to change their strategies or develop new ones to _______ competitive challenges by _____________.

Accepted Answer

A)  overcome; other new rivals
B)  succumb; potential rivals
C)  survive; incumbent
D)  survive; former rivalsE) All of the above
F) None of the above

Question 19

A focus strategy must not include elements of differentiation and overall cost leadership in order to be successful.

Accepted Answer

A) True 
 B)False

Question 20

One of the most important considerations for a new entrant is the type of strategic positioning to choose that will help the business move forward.

Accepted Answer

A) True 
 B)False

Exam 8: Entrepreneurial Strategy and Competitive Dynamics

Co-opetition, where competitors work together behind the scenes, is a form of illegal tacit collusion.

Correct AnswerverifiedShow Answer

When an opportunity is attractive long enough for it to be successfully developed and deployed, it is said to be

Correct AnswerverifiedShow Answer

Rocket Internet, founded in 2007, funds start-ups. One of its successful investments was in Lamoda, a retailing fashion site in Russia that is modeled after Zappos. This is an example of a pioneering new entry strategy.

Correct AnswerverifiedShow Answer

Which of the following is not a primary source of financing for entrepreneurial start-ups?

Correct AnswerverifiedShow Answer

Angel investors are private individuals who provide equity investments for seed capital during the later stages of a new venture.

Correct AnswerverifiedShow Answer

According to the text, for an entrepreneurial start-up to be successful, three ingredients are critical. What are they?

Correct AnswerverifiedShow Answer

Which of the following is not a common source of new business opportunities?

Correct AnswerverifiedShow Answer

In competitive dynamics, new entrants may be force to change their strategies or develop new ones to _______ competitive challenges by _____________.

Correct AnswerverifiedShow Answer

Colgate-Palmolive, Unilever, Proctor and Gamble, and Henkel cooperated legally when they agreed to prearranged prices at which they would sell to retailers.

Correct AnswerverifiedShow Answer

When attacked, older and larger firms tend to respond more quickly, but their responses are often more predictable.

Correct AnswerverifiedShow Answer

When an industry is mature, a(n) ______________ strategy is considered to be one of the most effective approaches for a new entrant.

Correct AnswerverifiedShow Answer

A small firm may be unable to mount a serious attack due to lack of resources. As a result, it is more likely to react to ______ actions such as incentive pricing or enhanced service offerings, because they are less costly to attack than large-scale strategic actions.

Correct AnswerverifiedShow Answer

According to a study by the Kaufmann Foundation, which of the following is the largest source of funding for businesses that have been operating at least five years?

Correct AnswerverifiedShow Answer

Forbearance is a particularly aggressive type of competitive attack.

Correct AnswerverifiedShow Answer

Choosing which new entry strategy is best depends on competitive financial and marketplace considerations. The greatest opportunities most likely will be in existing markets, rather than in new markets.

Correct AnswerverifiedShow Answer

Once an adaptive entrant has achieved initial success, the company is safe from copycat competition.

Correct AnswerverifiedShow Answer

To be successful within a market niche, the key strategic requirement is to have a good differentiation strategy.

Correct AnswerverifiedShow Answer

A focus strategy must not include elements of differentiation and overall cost leadership in order to be successful.

Correct AnswerverifiedShow Answer

One of the most important considerations for a new entrant is the type of strategic positioning to choose that will help the business move forward.

Correct AnswerverifiedShow Answer

Private individuals who provide seed capital to young ventures are known as

Correct AnswerverifiedShow Answer

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In competitive dynamics, new entrants may be force to change their strategies or develop new ones to _ competitive challenges by _______.

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