Question 1

List the five main first-mover advantages and identify the three main disadvantages of being a first-mover.

Accepted Answer

Advantages:
Cost advantages
Less competi

Question 2

________ are used to protect the owner of the technology from people imitating the technology.

Accepted Answer

A)  Franchises 
B)  Switching costs 
C)  Patents 
D)  Distributors 
A)  Franchises 
B)  Switching costs 
C)  Patents 
D)  Distributors

Question 3

Which of the following is a liability of newness

Accepted Answer

A)  Costs associated with learning new tasks are high. 
B)  Lack of established routines and processes give the venture a new slate. 
C)  Communication in informal systems is increased. 
D)  Market for potential consumers is limited. 
A)  Costs associated with learning new tasks are high. 
B)  Lack of established routines and processes give the venture a new slate. 
C)  Communication in informal systems is increased. 
D)  Market for potential consumers is limited.

Question 4

An error of omission occurs when an entrepreneur:

Accepted Answer

A)  enters a market but overestimates the customer demand. 
B)  develops a product for a market that is too narrow. 
C)  decides not to enter a market that is, in fact, desirable. 
D)  fails to understand the limitations of a market. 
A)  enters a market but overestimates the customer demand. 
B)  develops a product for a market that is too narrow. 
C)  decides not to enter a market that is, in fact, desirable. 
D)  fails to understand the limitations of a market.

Question 5

Entrepreneurs that delay entry have the advantage of more information about market demand.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is true

Accepted Answer

A)  Knowledge is a valuable entrepreneurial resource that is gained through formal education. 
B)  Knowledge is easily communicated and common. 
C)  Knowledge based on experience is unlikely to be learned in a classroom. 
D)  Research, more than knowledge, leads to the generation of new entries in markets and technologies. 
A)  Knowledge is a valuable entrepreneurial resource that is gained through formal education. 
B)  Knowledge is easily communicated and common. 
C)  Knowledge based on experience is unlikely to be learned in a classroom. 
D)  Research, more than knowledge, leads to the generation of new entries in markets and technologies.

Question 7

A disadvantage of being a first mover is:

Accepted Answer

A)  environmental instability. 
B)  cost disadvantages. 
C)  long lead time to gain knowledge. 
D)  a limited market. 
A)  environmental instability. 
B)  cost disadvantages. 
C)  long lead time to gain knowledge. 
D)  a limited market.

Question 8

A new entry can be either offering a new product to a new market or creating a new organization.

Accepted Answer

A) True 
 B)False

Question 9

First movers can monitor changes in the market that might be difficult or impossible to detect for those firms not participating in the market.

Accepted Answer

A) True 
 B)False

Question 10

The three major risk reduction strategies discussed in the text are narrow scope,broad scope and imitation.

Accepted Answer

A) True 
 B)False

Question 11

The assessment of a new entry attractiveness is less about whether this opportunity "really" exists or not and more about whether the entrepreneur believes he or she can make it work.

Accepted Answer

A) True 
 B)False

Question 12

Technological knowledge:

Accepted Answer

A)  is gained through market research. 
B)  can lead to a new product that is the basis for a new entry. 
C)  does not help unless the market applicability is obvious. 
D)  does not help if the market is limited. 
A)  is gained through market research. 
B)  can lead to a new product that is the basis for a new entry. 
C)  does not help unless the market applicability is obvious. 
D)  does not help if the market is limited.

Question 13

Which of the following is not a reason that first movers are better positioned to satisfy their customers

Accepted Answer

A)  They have a chance to select and secure the most attractive segments of the market 
B)  They have the chance to position themselves at the center of the market 
C)  They have less uncertainty over the nature of the market 
D)  They have a chance to establish their product as the industry standard 
A)  They have a chance to select and secure the most attractive segments of the market 
B)  They have the chance to position themselves at the center of the market 
C)  They have less uncertainty over the nature of the market 
D)  They have a chance to establish their product as the industry standard

Question 14

The ________ is less about whether an opportunity really exists and more about whether the entrepreneur believes they can make it work.

Accepted Answer

A)  error of commission 
B)  window of opportunity 
C)  error of omission 
D)  assessment of a new entry's attractiveness 
A)  error of commission 
B)  window of opportunity 
C)  error of omission 
D)  assessment of a new entry's attractiveness

Question 15

Experience is idiosyncratic-unique to the life of the individual.

Accepted Answer

A) True 
 B)False

Question 16

Changes needed to adapt to environmental changes:

Accepted Answer

A)  are easier in established organizations because of inertia. 
B)  can be avoided by late entry. 
C)  are more difficult because of the tendency to escalate commitment. 
D)  don't affect smaller organizations. 
A)  are easier in established organizations because of inertia. 
B)  can be avoided by late entry. 
C)  are more difficult because of the tendency to escalate commitment. 
D)  don't affect smaller organizations.

Question 17

Emerging industries are industries that have been around for years but are just starting to experience explosive growth.

Accepted Answer

A) True 
 B)False

Question 18

A narrow scope strategy reduces the risks associated with competition.

Accepted Answer

A) True 
 B)False

Question 19

________ knowledge refers to the entrepreneur's possession of information,technology,know-how,and skills that provide insight into the industry and customers.

Accepted Answer

A)  Technological 
B)  Resource 
C)  Opportunity 
D)  Market 
A)  Technological 
B)  Resource 
C)  Opportunity 
D)  Market

Question 20

If a company has a superior product,customers will always be willing to pay a higher price for higher value.

Accepted Answer

A) True 
 B)False

List the five main first-mover advantages and identify the three main disadvantages of being a first-mover.

________ are used to protect the owner of the technology from people imitating the technology.

Which of the following is a liability of newness

An error of omission occurs when an entrepreneur:

Entrepreneurs that delay entry have the advantage of more information about market demand.

Which of the following statements is true

A disadvantage of being a first mover is:

A new entry can be either offering a new product to a new market or creating a new organization.

First movers can monitor changes in the market that might be difficult or impossible to detect for those firms not participating in the market.

The three major risk reduction strategies discussed in the text are narrow scope,broad scope and imitation.

The assessment of a new entry attractiveness is less about whether this opportunity "really" exists or not and more about whether the entrepreneur believes he or she can make it work.

Technological knowledge:

Which of the following is not a reason that first movers are better positioned to satisfy their customers

The ________ is less about whether an opportunity really exists and more about whether the entrepreneur believes they can make it work.

Experience is idiosyncratic-unique to the life of the individual.

Changes needed to adapt to environmental changes:

Emerging industries are industries that have been around for years but are just starting to experience explosive growth.

A narrow scope strategy reduces the risks associated with competition.

________ knowledge refers to the entrepreneur's possession of information,technology,know-how,and skills that provide insight into the industry and customers.

If a company has a superior product,customers will always be willing to pay a higher price for higher value.

The Entrepreneurial Mind-Set

Corporate Entrepreneurship

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Protecting the Idea and Other Legal Issues for the Entrepreneur

The Business Plan: Creating and Starting the Venture

The Marketing Plan

The Organizational Plan

The Financial Plan

Sources of Capital

Informal Risk Capital, Venture Capital, and Going Public

Strategies for Growth and Managing the Implication of Growth

Accessing Resources for Growth From External Sources

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters

Exam 3: Generating and Exploiting New Entries

List the five main first-mover advantages and identify the three main disadvantages of being a first-mover.

________ are used to protect the owner of the technology from people imitating the technology.

Which of the following is a liability of newness

An error of omission occurs when an entrepreneur:

Entrepreneurs that delay entry have the advantage of more information about market demand.

Which of the following statements is true

A disadvantage of being a first mover is:

A new entry can be either offering a new product to a new market or creating a new organization.

First movers can monitor changes in the market that might be difficult or impossible to detect for those firms not participating in the market.

The three major risk reduction strategies discussed in the text are narrow scope,broad scope and imitation.

The assessment of a new entry attractiveness is less about whether this opportunity "really" exists or not and more about whether the entrepreneur believes he or she can make it work.

Technological knowledge:

Which of the following is not a reason that first movers are better positioned to satisfy their customers

The ________ is less about whether an opportunity really exists and more about whether the entrepreneur believes they can make it work.

Experience is idiosyncratic-unique to the life of the individual.

Changes needed to adapt to environmental changes:

Emerging industries are industries that have been around for years but are just starting to experience explosive growth.

A narrow scope strategy reduces the risks associated with competition.

________ knowledge refers to the entrepreneur's possession of information,technology,know-how,and skills that provide insight into the industry and customers.

If a company has a superior product,customers will always be willing to pay a higher price for higher value.

The Entrepreneurial Mind-Set

Corporate Entrepreneurship

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Protecting the Idea and Other Legal Issues for the Entrepreneur

The Business Plan: Creating and Starting the Venture

The Marketing Plan

The Organizational Plan

The Financial Plan

Sources of Capital

Informal Risk Capital, Venture Capital, and Going Public

Strategies for Growth and Managing the Implication of Growth

Accessing Resources for Growth From External Sources

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters