MANA 4322 FINAL EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
Entrepreneurship - Answers the creation of new value that involves the assumption of risk.
Three attributes needed for Entrepreneurship to occur: - Answers 1. Opportunity - changes in the
business environment, new technology, and social cultural trends.
2. Resources - Money, Human Capital and Social Capital
3. Entrepreneurs - Vision, Dedication and drive, commitment to excellence
Two Phases of opportunity: - Answers 1. Discovery phase - When you first become aware of new
business concept
2. Evaluation phase - Market potential, product concept testing, focus groups, trial run with end users.
Characteristics of opportunities: - Answers Attractive, achievable, durable, value creating.
Financing Stages: - Answers • Early stage - personal savings, family and friends.
• Later stage - angel investors, venture capital, commercial banks.
Entry Strategies: Getting a foothold in the market - Answers • Pioneering entry - creating new ways to
solve old problems
• Imitative new entry - introduce another product in another segment of the market
• Adaptive new entry - product is somewhat new and different
Market commonality - Answers whether or not the competitors are vying for the same customers
and how many markets they share in common
Resource similarity - Answers the degree to which rivals draw on the same types of resources to
compete
Strong competitors are NOT likely to attack each other - Answers because it can unleash an intense
battle where no one wins.
Strong competitors are VERY likely to - Answers respond to each other's attacks.
Formulate Strategies - Implement Strategy - Strategic Control - Answers Relationships between
strategy formulation, implementation and control are highly interactive.
Two types of control - Answers Informational
Behavioral
Informational - Answers concerned with organization whether they are "doing the right things"
• Continually monitoring the environments (internal and external)
• Identifying trends and events that signal the need to revise strategies, goals and objectives
• Information control is part of an ongoing process of organizational learning that updates and
challenges the assumptions underlying the firm's strategy
Behavioral - Answers concerned with the organization whether or not they are "doing things right"
Levers of Behavioral - Answers Culture- building a strong and effective culture by shared beliefs and
shared values.
Rewards - motivate with rewards and incentives. Performance measures are clear and highly visible.
Boundaries - improve operational efficiency and effectiveness. Minimize improper and unethical
conduct.
Pitfall of Rewards - Answers may reflect differences in among functional areas, products, services and
divisions.
System of rewards and incentives coupled with a strong culture - Answers • Hire the right people
(already identify with the firm's dominant values)
• Train people in the dominant cultural values
• Have managerial role models
• Reward systems clearly aligned with organizational goals and objectives
Agency Theory - Answers relationship between principals (stockholders) and agents (management)
Two problems (Agency Theory): - Answers The conflicting goals of principals and agents, along with
the difficulty of principals to monitor the agents
The attitudes and preferences towards risk of principals (more risk taking) and agents (more risk
averse)
Internal Control Mechanisms - Answers Board of Directors:
-Committed and Active, Large and no duality of roles (CEO, Chairman)
-Shareholder Activism - Right to sell stock, right to information from the company
External Control Mechanisms - Answers Market for corporate control
Auditors
Entrepreneurship - Answers the creation of new value that involves the assumption of risk.
Three attributes needed for Entrepreneurship to occur: - Answers 1. Opportunity - changes in the
business environment, new technology, and social cultural trends.
2. Resources - Money, Human Capital and Social Capital
3. Entrepreneurs - Vision, Dedication and drive, commitment to excellence
Two Phases of opportunity: - Answers 1. Discovery phase - When you first become aware of new
business concept
2. Evaluation phase - Market potential, product concept testing, focus groups, trial run with end users.
Characteristics of opportunities: - Answers Attractive, achievable, durable, value creating.
Financing Stages: - Answers • Early stage - personal savings, family and friends.
• Later stage - angel investors, venture capital, commercial banks.
Entry Strategies: Getting a foothold in the market - Answers • Pioneering entry - creating new ways to
solve old problems
• Imitative new entry - introduce another product in another segment of the market
• Adaptive new entry - product is somewhat new and different
Market commonality - Answers whether or not the competitors are vying for the same customers
and how many markets they share in common
Resource similarity - Answers the degree to which rivals draw on the same types of resources to
compete
Strong competitors are NOT likely to attack each other - Answers because it can unleash an intense
battle where no one wins.
Strong competitors are VERY likely to - Answers respond to each other's attacks.
Formulate Strategies - Implement Strategy - Strategic Control - Answers Relationships between
strategy formulation, implementation and control are highly interactive.
Two types of control - Answers Informational
Behavioral
Informational - Answers concerned with organization whether they are "doing the right things"
• Continually monitoring the environments (internal and external)
• Identifying trends and events that signal the need to revise strategies, goals and objectives
• Information control is part of an ongoing process of organizational learning that updates and
challenges the assumptions underlying the firm's strategy
Behavioral - Answers concerned with the organization whether or not they are "doing things right"
Levers of Behavioral - Answers Culture- building a strong and effective culture by shared beliefs and
shared values.
Rewards - motivate with rewards and incentives. Performance measures are clear and highly visible.
Boundaries - improve operational efficiency and effectiveness. Minimize improper and unethical
conduct.
Pitfall of Rewards - Answers may reflect differences in among functional areas, products, services and
divisions.
System of rewards and incentives coupled with a strong culture - Answers • Hire the right people
(already identify with the firm's dominant values)
• Train people in the dominant cultural values
• Have managerial role models
• Reward systems clearly aligned with organizational goals and objectives
Agency Theory - Answers relationship between principals (stockholders) and agents (management)
Two problems (Agency Theory): - Answers The conflicting goals of principals and agents, along with
the difficulty of principals to monitor the agents
The attitudes and preferences towards risk of principals (more risk taking) and agents (more risk
averse)
Internal Control Mechanisms - Answers Board of Directors:
-Committed and Active, Large and no duality of roles (CEO, Chairman)
-Shareholder Activism - Right to sell stock, right to information from the company
External Control Mechanisms - Answers Market for corporate control
Auditors
