Exam 11: Preparing For And Attaining Growth: Strategies For Building Lasting Success

The skill and experiences that are necessary for an entrepreneur to have in order to make a business grow successfully are known as

Which of the following statements is not true?

Which of the following characteristics is usually not associated with founders of high growth companies?

Because of economies of scale,established firms can produce products at lower per unit costs than can new firms.

An entrepreneur started a new business. The first several years were very challenging. However,the entrepreneur believed that the challenges could be met and the business would be successful. This entrepreneur shows

Fixed costs

Why might a new business seek to grow?

A pharmaceutical company spends large amounts of money in developing new prescription drugs. Once the new drug is approved for use,it frequently can be produced and marketed for considerably less money than it took to develop,so the profit margins are large if one considers only the money spent during production and marketing. This situation represents the idea of

Acquisition is defined as one company purchasing another.

Internal strategies for growth include

Normally,founders of high growth companies show a high passion for their work and their companies.

An entrepreneur started a management consulting company. The first several years were very challenging in finding potential clients and building relationships with them,in developing the services that the company would sell to clients,and just "getting known" as a management consulting company. These years required considerable money,but there were few sales. After several years,the company became known and now has many clients and large sales,all the while,expenses are lower than in the first years. This represents the idea of

Explain why established firms are usually more efficient than are new firms.

One reason that a new business might not grow is because of limited managerial capacity.

Two companies are producing breakfast cereal. One company produces 10,000 boxes at an average cost of $1 per box. The other company produces 100,000 boxes at an average cost of $.75 per box. This example demonstrates the concept of

High-growth companies are more likely to get involved in relationships with other companies than are low-growth companies.

Explain how "dynamic capabilities" can help a small business grow and be successful.

Which of the following tend to be related to successful high growth of a new business?

Which of the following statements is most logical?

The phrase "Listen to your customers. They tell you what they want and you find a way to provide it." refers to which type of strategy?