The majority of entrepreneurial firms are started with financing from venture capitalists and banks.

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

a viable opportunity, available resources, and a qualified and motivated founding team

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

The process of identifying, selecting, and developing new venture opportunities is known as _____________.

Generally speaking, the opportunity recognition process consists of two phases of activity. They are ______________ and _____________.

Which of the following is NOT one of the characteristics of an entrepreneurial opportunity?

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

Which of the following terms is used to refer to opportunities that are practical and physically possible?

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

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?

The majority of entrepreneurial start-ups are financed through monies from _____________.

personal savings and the contributions of family and friends

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

Which of the following statements about venture capital is not true?

Venture capital is a form of public equity financing.

Based on statistics reported in the text, which of the following statements is not true?

Ninety percent of the companies financed with venture capital funds fail.

According to the text, new ventures launched by entrepreneurial teams are more likely to be successful than ventures launched by _____________.

Which of the following is the most important resource for a start-up activity?

______________ provide(s) a key avenue for growth for many young and small firms through partnering to obtain resources and/or expand into new markets.

The U.S. Small Business Administration supports small business through all of the following EXCEPT

investing venture capital.

Which of the following is NOT one of the three characteristics of entrepreneurial leadership mentioned by the text?

clarifying job responsibilities

Vision is an important element of entrepreneurial leadership because _____________.

the entrepreneur has to envision realities that do not yet exist

Which of the following is NOT a common new entry strategy according to the text?

Seeking products or services that have been successful in one market and introducing the same basic product or service in another segment of the market is referred to as _____________.

When launching a new venture, finding a way to begin doing business must ______________ generate cash flow, build credibility, attract good employees, and overcome the liability of newness.

Pandora entered the radio business in 2000 using the Music Genome Project system that analyzes music for its underlying traits as a means to distinguish itself. It was using ______________ entry strategy.

The new entry strategy that a firm choses is dependent upon the ______________ and the ______________ of the new business concept.
 

riskiness; innovativeness

Smell-O-Vision designed an invention to pump odors into movie theatres. It flopped, in spite of its innovativeness. What kind of new entry strategy was the company using to penetrate the market?

Square provides a means for small businesses to process credit and debit card sales without signing up for a traditional credit card arrangement of monthly fees and minimum charges. It used which new entry strategy to enter the market initially?

Tom Monahan, a business creativity coach, says that every new idea is merely a spin of an old idea. A company that enters the market by offering a product or service that is somewhat new and sufficiently different in order to create value for customers by capitalizing on current trends is using which new entry strategy?

In 2005, Plum Organics entered the market with organic baby food and snack foods for children. It now has over 20 products and is listed at number 63 on the Inc 500 list of fastest growing private companies. It used which new entry strategy in 2005?

Which of the following is not a factor that makes it more difficult for new ventures to be successful as differentiators?

Customer service is often costly, but it does not affect a differentiation strategy.

Amazon is an example of a company that used the differentiation strategy to enter the market. The differentiation features included _____________.

exceptional customer service

One of the ways entrepreneurs achieve success is by using resources more efficiently. This is an example of how entrepreneurs use ______________ strategy.

Entrepreneurial firms that pursue a low-cost leadership strategy use all of the following to achieve lower costs except _____________.

extensive investment in order to achieve economies of scale

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

According to the text, which of the following might does not make it difficult for entrepreneurial firms to effectively pursue a strategy of differentiation?

Incumbent firms are constantly seeking opportunities to specialize in market niches.

Intense rivalry involving actions and responses among similar competitors vying for the same customers in a marketplace is known as _____________.

Which of the following is not one of the reasons a company might launch new competitive actions?

to find new sources of raw materials

BCG authors Stalk and Lachenauer published a book in which they listed competitive strategy for winning against incumbent rivals. Which of the following is not one of their suggested strategies?

Aircraft makers Boeing and Airbus have a high degree of ______________ because they make very similar products and have many buyers in common.

The Wall Street Journal and the New York Times have seen the intensity of their rivalry increase. One factor driving this is that the Wall Street Journal has moved from financial news reporting to general national and global news reporting and finally, to adding local New York news. The rivalry of these two news providers has increased due to _____________.

increased market commonality

When any two firms have both a high degree of market commonality and highly similar resources, a ______________ threat is present.
 

Which of the below best describes the competitive tendencies of small firms?

Small firms are more nimble and can respond quickly to competitive attacks.

Southwest Airlines began its no frills, no meals strategy in the late 1960s as a direct assault on the major carriers of the day. What type of competitive action does this represent

A tactical action because it is a refinement of an existing strategy.

All of the following are examples of strategic actions a firm might take EXCEPT _____________.

The best example of a tactical action that a company might use in response to a competitive attack is to _____________.

offer price discounts and rebates

Which of the following is not a factor that affects how a competitor will respond to a competitive attack?

the stock market reaction to the initial competitive attack

Which of the following refers to a situation where a company has a high concentration of its business in a particular industry market?

A firm is considering a large price cut on its leading product as a way to gain market share. One executive strongly disagrees with the price cut. He observes that they are in the same marketplace as their rivals and do not have any competitive advantages in their cost structure. If they cut prices, their competitors will likely do the same. The end result is that everyone will make less money. These arguments are an example of ________________.

a strategy of forbearance

What is the relationship between entrepreneur and venture capitalist?

Which of the following are characteristics necessary for successful entrepreneurial leadership?

Which of the following is typically not associated with entrepreneurship?

Which of the following is not a factor that makes it more difficult for new ventures to be successful as differentiators?