Question 1

Which of the following is a liability of newness?

Accepted Answer

A)  Costs associated with learning new tasks are high.
B)  Lack of established routines and processes give the venture a new slate.
C)  Communication in informal systems is increased.
D)  Market for potential consumers is limiteD.E) None of the above
F) A) and B)

Question 2

______________ knowledge refers to the entrepreneur's possession of information,technology,know-how,and skills that provide insight into the industry and customers.

Accepted Answer

A)  Technological
B)  Resource
C)  Opportunity
D)  MarketE) B) and D)
F) A) and D)

Question 3

To be the basis of a firm's superior performance over competitors for an extended period of time,resources need to be:

Accepted Answer

A)  valuable.
B)  fully utilized.
C)  patented.
D)  shareD.E) A) and C)
F) None of the above

Question 4

By entering a market later,

Accepted Answer

A)  customer uncertainties have already been substantially reduced.
B)  the venture can build a reputation as a "founder."
C)  the company can erect barriers to entry and imitation.
D)  the player gets to operate only for a grace perioD.E) All of the above
F) A) and D)

Question 5

Environmental changes are highly unlikely in emerging industries.

Accepted Answer

A) True 
 B)False

Question 6

The set of decisions,actions,and reactions that first generate,and then exploit over time,a new entry is:

Accepted Answer

A)  entrepreneurial financing.
B)  entrepreneurial strategy.
C)  bootstrapping.
D)  informal organization.E) All of the above
F) B) and C)

Question 7

Technological uncertainty is eliminated by a superior technology.

Accepted Answer

A) True 
 B)False

Question 8

The late mover is able to operate in the industry for a grace period under conditions of limited competition.

Accepted Answer

A) True 
 B)False

Question 9

_________ are used to protect the owner of the technology from people imitating the technology.

Accepted Answer

A)  Franchises
B)  Switching costs
C)  Patents
D)  DistributorsE) C) and D)
F) A) and C)

Question 10

Explain why an entrepreneur might adopt an imitation strategy.

Accepted Answer

Reduces the risk by:
-reducing research ...

Question 11

Imitation of other products increases the downside loss associated with new entry.

Accepted Answer

A) True 
 B)False

Question 12

A broad-scope strategy:

Accepted Answer

A)  is vulnerable to the risk that market demand does not materialize as expected and/or changes over time.
B)  opens the firm up to many different "fronts" of competition.
C)  focuses the firm on producing customized products,localized business operations,and high levels of craftsmanship.
D)  offers a way of reducing some competition-related risks.E) A) and C)
F) A) and B)

Question 13

If a company has a superior product,customers will always be willing to pay a higher price for higher value.

Accepted Answer

A) True 
 B)False

Question 14

Explain the three major causes of "liabilities of newness."

Accepted Answer

•New organizations face costs in learnin...

Question 15

A new entry includes all of the following except:

Accepted Answer

A)  Offering a new product to a new market
B)  Offering an established product to an new market
C)  Creating a new product development process for your company
D)  Creating a new organizationE) B) and D)
F) B) and C)

Question 16

The entrepreneurial attributes of persistence and determination,which are so beneficial when the new venture is on the "right course,":

Accepted Answer

A)  can make the entrepreneur more suitable to work in volatile markets.
B)  can hasten the process of adapting to sudden changes.
C)  can aid the entrepreneur in recognizing,and implementing changes.
D)  can inhibit the ability of the entrepreneur to detect,and implement,change.E) None of the above
F) A) and B)

Question 17

An error of commission occurs from the decision not to act on a new entry opportunity.

Accepted Answer

A) True 
 B)False

Question 18

When the window of opportunity is open,the environment is unfavorable for entrepreneurs to exploit a new product or enter a new market with an existing product.

Accepted Answer

A) True 
 B)False

Question 19

Regarding entry into a new market,which of the following is(are) true?

Accepted Answer

A)  First movers gain expertise through participation.
B)  First movers are not able to detect changes in the market.
C)  First movers suffer a cost disadvantage.
D)  First movers face more competitive rivalry.E) A) and D)
F) None of the above

Question 20

A ______ strategy that copies products that already exist and attempts to build an advantage through minor variations.

Accepted Answer

A)  technological
B)  narrow scope
C)  me-too
D)  broad scopeE) None of the above
F) A) and B)

Exam 3: Entrepreneurial Strategy: Generating and Exploiting New Entries

A ______ strategy that copies products that already exist and attempts to build an advantage through minor variations.

Correct AnswerverifiedShow Answer

The entrepreneurial attributes of persistence and determination,which are so beneficial when the new venture is on the "right course,":

Correct AnswerverifiedShow Answer

Environmental changes are highly unlikely in emerging industries.

Correct AnswerverifiedShow Answer

______________ knowledge refers to the entrepreneur's possession of information,technology,know-how,and skills that provide insight into the industry and customers.

Correct AnswerverifiedShow Answer

The late mover is able to operate in the industry for a grace period under conditions of limited competition.

Correct AnswerverifiedShow Answer

Imitation of other products increases the downside loss associated with new entry.

Correct AnswerverifiedShow Answer

The set of decisions,actions,and reactions that first generate,and then exploit over time,a new entry is:

Correct AnswerverifiedShow Answer

To be the basis of a firm's superior performance over competitors for an extended period of time,resources need to be:

Correct AnswerverifiedShow Answer

Technological uncertainty is eliminated by a superior technology.

Correct AnswerverifiedShow Answer

A new entry includes all of the following except:

Correct AnswerverifiedShow Answer

_________ are used to protect the owner of the technology from people imitating the technology.

Correct AnswerverifiedShow Answer

Explain the three major causes of "liabilities of newness."

Correct Answerverified•New organizations face costs in learnin...View AnswerShow Answer

Regarding entry into a new market,which of the following is(are) true?

Correct AnswerverifiedShow Answer

Explain why an entrepreneur might adopt an imitation strategy.

Correct AnswerverifiedReduces the risk by:-reducing research ...View AnswerShow Answer

When the window of opportunity is open,the environment is unfavorable for entrepreneurs to exploit a new product or enter a new market with an existing product.

Correct AnswerverifiedShow Answer

By entering a market later,

Correct AnswerverifiedShow Answer

If a company has a superior product,customers will always be willing to pay a higher price for higher value.

Correct AnswerverifiedShow Answer

A broad-scope strategy:

Correct AnswerverifiedShow Answer

Which of the following is a liability of newness?

Correct AnswerverifiedShow Answer

An error of commission occurs from the decision not to act on a new entry opportunity.

Correct AnswerverifiedShow Answer

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•New organizations face costs in learnin...
View Answer

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Reduces the risk by:
-reducing research ...
View Answer

Correct Answer
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