Question 1

The company should be driven only by opportunities that leverage current capabilities

Accepted Answer

A) True 
 B)False

Question 2

Financing for longer term investments that incur a higher degree of risk are often funded through equity rather than bank loans.

Accepted Answer

A) True 
 B)False

Question 3

It is always best to appoint a CEO from the employees who were with the company from the very beginning

Accepted Answer

A) True 
 B)False

Question 4

What fraction of firms started today, according to the chapter, will still be growing and profitable in eight years?

Accepted Answer

A)   1/5
B)   1/6
C)   1/7
D)   1/8
E)   1/9

Question 5

What does cash cycle ratio show?

Accepted Answer

A)   Number of dollars available to pay your short-term liabilities.
B)   How quickly you get your receivables paid.
C)   Time between purchase of supplies and collection of accounts receivable generated in the sale of a product.
D)   How quickly you sell and replace your inventory over a period.
E)   Degree to which a company is using borrowed money.

Question 6

What could identification of your firm's range of value chain activities help you to detect?

Accepted Answer

A)   New markets.
B)   Legal liabilities.
C)   Ways to shift your core business.
D)   Resource draining side projects.
E)   All of the above.

Question 7

A positive cash conversion period means that:

Accepted Answer

A)   You have an inefficient receivables control system
B)   You are getting cash in before you deliver products/services
C)   You have a very efficient receivables control system
D)   You are receiving cash after you deliver products/services
E)   Customers pay you before you provide them products/services

Question 8

Essentially customer needs do not change, therefore you need to identify them and maintain focus.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not a source of financing for early growth?

Accepted Answer

A)   Angel investors
B)   Founder loans
C)   Investment from key management
D)   Equipment leases
E)   All of them are sources

Question 10

Which of the following is a sign that an entrepreneur is delegating well.

Accepted Answer

A)   You are making more decisions, but accomplishing less
B)   People are working hard, but critical mistakes are increasing
C)   Action isn't taken without the entrepreneurs' involvement
D)   Problems are solved without the entrepreneur being involved in the underlying mechanics.

Question 11

What does entrepreneurship begin with?

Accepted Answer

A)   Leadership.
B)   A loan.
C)   Venture capital.
D)   Opportunity.
E)   A management team.

Question 12

Which of the following may be a common error when an entrepreneur tries to transition to an entrepreneurial leader (pick one) .

Accepted Answer

A)   Leads the venture through changes in both the organization and the competitive environment.
B)   Sets a vision and empowers others to carry it out.
C)   Avoids hiring managers whose domain experience exceeds their own.
D)   Leverages the core business to grow in-line with critical capabilities.
E)   All of the above

Question 13

The chapter warns that which of the following can lead to poor coordination between different activities within the company?

Accepted Answer

A)   Overdue collections
B)   Inventory outages
C)   Uncontrolled growth
D)   Diminishing cash flows
E)   None of the above

Question 14

Bootstrapping policy should not be discontinued once the company is successful

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is NOT characteristic of an effective performance tracking system?

Accepted Answer

A)   Determines where, when, and how to measure a key item, and who is responsible for measuring it.
B)   Metrics tied to a decision (should be nearly all metrics)  are assigned the latest time before which the measure will be relevant to making the decision.
C)   The system is exhaustive of all possible metrics for a given questions.
D)   All of the above.

Question 16

The Cash Cycle shows the relationship between three key metrics: days in payables, assets turnover, and days sales are outstanding

Accepted Answer

A) True 
 B)False

Question 17

A series of steps showing the activities and entities that we need to coordinate in order for the company to execute its product or service is called:

Accepted Answer

A)   Customer value delivery
B)   Value chain
C)   STEP
D)   Customer value proposition
E)   Attributes model

Question 18

After tracking key metrics in your company's performance, what should alert you that it may be time to consider making adjustments in your policies?

Accepted Answer

A)   If your metrics are below your expectations.
B)   If the changes in your company are not the result of changes in your policies.
C)   If the marketing expenditures are hard to predict.
D)   If your metrics require in-depth analysis.
E)   If receivables collection period is more than 30 days.

Question 19

Who or what has the largest impact on a firm's growth potential?

Accepted Answer

A)   Stakeholders
B)   Uncertainty
C)   Environmental conditions
D)   Technology changes
E)   Competitors

Question 20

What option does the entrepreneur have if he or she decides to maintain a business?

Accepted Answer

A)   Become an entrepreneurial leader
B)   Take alternate position in the firm
C)   Become a manager
D)   Seek other employment
E)   None of the above

Exam 14: Entrepreneurial Growth

What option does the entrepreneur have if he or she decides to maintain a business?

Correct AnswerverifiedShow Answer

A series of steps showing the activities and entities that we need to coordinate in order for the company to execute its product or service is called:

Correct AnswerverifiedShow Answer

What could identification of your firm's range of value chain activities help you to detect?

Correct AnswerverifiedShow Answer

Who or what has the largest impact on a firm's growth potential?

Correct AnswerverifiedShow Answer

What does cash cycle ratio show?

Correct AnswerverifiedShow Answer

What does entrepreneurship begin with?

Correct AnswerverifiedShow Answer

Which of the following is not a source of financing for early growth?

Correct AnswerverifiedShow Answer

The Cash Cycle shows the relationship between three key metrics: days in payables, assets turnover, and days sales are outstanding

Correct AnswerverifiedShow Answer

What fraction of firms started today, according to the chapter, will still be growing and profitable in eight years?

Correct AnswerverifiedShow Answer

The chapter warns that which of the following can lead to poor coordination between different activities within the company?

Correct AnswerverifiedShow Answer

Bootstrapping policy should not be discontinued once the company is successful

Correct AnswerverifiedShow Answer

Which of the following is NOT characteristic of an effective performance tracking system?

Correct AnswerverifiedShow Answer

After tracking key metrics in your company's performance, what should alert you that it may be time to consider making adjustments in your policies?

Correct AnswerverifiedShow Answer

Which of the following may be a common error when an entrepreneur tries to transition to an entrepreneurial leader (pick one) .

Correct AnswerverifiedShow Answer

It is always best to appoint a CEO from the employees who were with the company from the very beginning

Correct AnswerverifiedShow Answer

Which of the following is a sign that an entrepreneur is delegating well.

Correct AnswerverifiedShow Answer

A positive cash conversion period means that:

Correct AnswerverifiedShow Answer

Financing for longer term investments that incur a higher degree of risk are often funded through equity rather than bank loans.

Correct AnswerverifiedShow Answer

Essentially customer needs do not change, therefore you need to identify them and maintain focus.

Correct AnswerverifiedShow Answer

The company should be driven only by opportunities that leverage current capabilities

Correct AnswerverifiedShow Answer

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