Strategic Management: Strategic Managment

Gregory G. Dess, University of Texas at Dallas
G.T. Lumpkin, University of Illinois--Chicago

Effective Strategic Leadership: Fostering Corporate Entrepreneurship and New Venture Creation

Multiple Choice Quiz


1	In the chapter-opening case, the entrepreneurial start-up Rosen Motors failed even though it had created an energy-saving, breakthrough product. What happened?
		A)	their failed product demonstration gave other technologies time to move ahead.
		B)	industry and competitive forces did not support their product coming to market.
		C)	they had no buyers by the time they were about to enter the expensive crash test phase so they closed up shop.
		D)	all of the above


2	All of the following are characteristics of an entrepreneurial opportunity except:
		A)	attractive.
		B)	achievable.
		C)	affordable.
		D)	value creating.


3	A study conducted in the 1970s by MIT professor David Birch found that
		A)	small business create the majority of new jobs.
		B)	fast-growing entrepreneurial firms are the most likely to fail.
		C)	the number of small businesses that are formed each year equals the number that close each year.
		D)	small businesses tend to enter mature industries with low innovativeness.


4	The bulk of entrepreneurial start-ups are financed with
		A)	venture capital financing.
		B)	personal savings and the contributions of family and friends.
		C)	public financing (e.g., SBA loans).
		D)	bank financing


5	Which of the following is not an illustration of the liability of newness?
		A)	entrepreneurial start-ups are unknown in their industry.
		B)	entrepreneurial start-ups lack credibility with suppliers and financial sources.
		C)	entrepreneurial start-ups lack the kind of organizational structures that promote rapid decision making.
		D)	entrepreneurial start-ups lack experience.


6	Which of the following impact which people within the corporation recognize entrepreneurial opportunities?
		A)	organizational systems that foster learning and manage rewards
		B)	corporate culture
		C)	structural features that guide and constrain action
		D)	all of the above


7	Intel has invested $8 billion in several e-business start-ups. This is an example of
		A)	corporate venture funding.
		B)	mergers and acquisitions.
		C)	internal development.
		D)	strategic renewal.


8	Which of the following scopes of entrepreneurial orientation is expressed as "a forward-looking perspective characteristic of a marketplace leader that has the foresight to seize opportunities"?
		A)	opportunism
		B)	proactiveness
		C)	risk taking
		D)	autonomy


9	Firms that are the first to enter new markets, establish brand identity, and/or adopt new technologies, hence gaining benefits, are known as
		A)	first-mover advantages.
		B)	technological capabilities.
		C)	competitive aggressiveness.
		D)	breakthrough innovations.


10	Which kind of risk taking entails that a company borrows heavily or commits a large portion of its resources in order to grow?
		A)	business risk taking
		B)	technological risk taking
		C)	personal risk taking
		D)	financial risk taking

2002 A McGraw-Hill Online Learning Centre
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Education Europe is one of the many fine businesses of The McGraw-Hill Companies.