EEE 2023 Exam 2 Questions with
All Correct Answers
The group of people who move a new venture from an idea to a fully functioning firm -
Answer-a new-venture team
Members with diverse abilities and experiences - Answer-heterogenous founding team
members who are very similar to one another - Answer-homogenous founding team
______ refers to the fact that companies often falter because the people who start them
aren't able to adjust quickly enough to their new roles and because the firm lacks a
"track record" with outside buyers and suppliers. - Answer-liability of newness
Various people or groups form part of a
new-venture
team; however, _____ are(is) not one of them. - Answer-suppliers
The three-member founding team at OnTime Cleaning Services consists of Tom, who
has 14 years of operations experience, Billy, an accountant with 2 years of experience
and Jane, a marketer with 22 years of work experience. The founding team at OnTime
Cleaning Services is ________. - Answer-heterogeneous
If the _____ of a firm have similar areas of expertise, it can be problematic. - Answer-
founders
Prior entrepreneurial experience, relevant industry experience, and ____ are the
attributes that strengthen the chances of a founder's success. - Answer-networking
The results of research studies somewhat consistently suggest that _______ is one of
the most consistent predictors of future entrepreneurial performance. - Answer-prior
entrepreneurial experience
Billy Stamos is self-employed, works on his own time with his own tools and equipment,
and performs computer services for a number of clients. Billy Stamos is a(n)
_________. - Answer-freelancer
Freelancers and virtual assistants are considered _______. - Answer-independent
contractors
, If a new venture organizes as a corporation, it is legally required to have _________. -
Answer-a board of directors
The board at Nuance Opticals offers help in providing direction and advice to the
company, but it possesses no legal responsibility for the firm and gives nonbinding
advice. The board at Nuance Opticals is a(n) ________. - Answer-advisory board
It is useful for a new venture to think about its position at both the _____ level and the
product or service level. - Answer-company
Economic trends, ____ trends, technological advances, and political and regulatory
changes are the most important environmental trends for entrepreneurs to study. -
Answer-social
The five forces model looks at forces that determine _____ profitability. - Answer-
industry
What are the five forces in Porter's Five Force Model - Answer-1. threat of substitutes
2. threat of new entrants
3. rivalry among existing firms
4. bargaining power of suppliers
5. bargaining power of buyers
In analyzing the pharmaceutical industry for a prospective business launch, Nicole
Turco, a Ph.D. in pharmacology, concluded that the industry was attractive because the
threat of substitutes is ___________. - Answer-low
A _____ is a condition that creates a disincentive for a new firm to enter an industry. -
Answer-barrier to entry
In contemplating the launch of her seafood restaurant, Paige Graham concluded that
suppliers of seafood had an advantage in bargaining power over restaurant owners in
her market. Paige's conclusion is likely to have happened because there were
__________ suppliers to provide a critical product to a large number of restaurants. -
Answer-only a few
A(n) _____ industry is one in which standard operating procedures have yet to be
developed. - Answer-emerging
A(n) ________ advantage is a sometimes insurmountable advantage gained by the first
company to establish a significant position in a new market. - Answer-first-mover
The consumer milk industry in the United States over the last few years is characterized
by slow growth, repeat (rather than new) customers, and limited product innovation.
This industry is an example of a(n) ______ industry. - Answer-mature
All Correct Answers
The group of people who move a new venture from an idea to a fully functioning firm -
Answer-a new-venture team
Members with diverse abilities and experiences - Answer-heterogenous founding team
members who are very similar to one another - Answer-homogenous founding team
______ refers to the fact that companies often falter because the people who start them
aren't able to adjust quickly enough to their new roles and because the firm lacks a
"track record" with outside buyers and suppliers. - Answer-liability of newness
Various people or groups form part of a
new-venture
team; however, _____ are(is) not one of them. - Answer-suppliers
The three-member founding team at OnTime Cleaning Services consists of Tom, who
has 14 years of operations experience, Billy, an accountant with 2 years of experience
and Jane, a marketer with 22 years of work experience. The founding team at OnTime
Cleaning Services is ________. - Answer-heterogeneous
If the _____ of a firm have similar areas of expertise, it can be problematic. - Answer-
founders
Prior entrepreneurial experience, relevant industry experience, and ____ are the
attributes that strengthen the chances of a founder's success. - Answer-networking
The results of research studies somewhat consistently suggest that _______ is one of
the most consistent predictors of future entrepreneurial performance. - Answer-prior
entrepreneurial experience
Billy Stamos is self-employed, works on his own time with his own tools and equipment,
and performs computer services for a number of clients. Billy Stamos is a(n)
_________. - Answer-freelancer
Freelancers and virtual assistants are considered _______. - Answer-independent
contractors
, If a new venture organizes as a corporation, it is legally required to have _________. -
Answer-a board of directors
The board at Nuance Opticals offers help in providing direction and advice to the
company, but it possesses no legal responsibility for the firm and gives nonbinding
advice. The board at Nuance Opticals is a(n) ________. - Answer-advisory board
It is useful for a new venture to think about its position at both the _____ level and the
product or service level. - Answer-company
Economic trends, ____ trends, technological advances, and political and regulatory
changes are the most important environmental trends for entrepreneurs to study. -
Answer-social
The five forces model looks at forces that determine _____ profitability. - Answer-
industry
What are the five forces in Porter's Five Force Model - Answer-1. threat of substitutes
2. threat of new entrants
3. rivalry among existing firms
4. bargaining power of suppliers
5. bargaining power of buyers
In analyzing the pharmaceutical industry for a prospective business launch, Nicole
Turco, a Ph.D. in pharmacology, concluded that the industry was attractive because the
threat of substitutes is ___________. - Answer-low
A _____ is a condition that creates a disincentive for a new firm to enter an industry. -
Answer-barrier to entry
In contemplating the launch of her seafood restaurant, Paige Graham concluded that
suppliers of seafood had an advantage in bargaining power over restaurant owners in
her market. Paige's conclusion is likely to have happened because there were
__________ suppliers to provide a critical product to a large number of restaurants. -
Answer-only a few
A(n) _____ industry is one in which standard operating procedures have yet to be
developed. - Answer-emerging
A(n) ________ advantage is a sometimes insurmountable advantage gained by the first
company to establish a significant position in a new market. - Answer-first-mover
The consumer milk industry in the United States over the last few years is characterized
by slow growth, repeat (rather than new) customers, and limited product innovation.
This industry is an example of a(n) ______ industry. - Answer-mature
