Exam 13: Preparing for and Evaluating the Challenges of Growth

According to the textbook, there are three issues about business growth that entrepreneurs should appreciate. These issues are ________.

According to the textbook, the three important things that a business can do to prepare for growth are ________.

Market leadership occurs when a firm holds the number one or number two position in an industry or niche market in terms of sales volume.

According to Penrose, managerial services generate new market, product, and service ideas, while entrepreneurial services administer the routine functions of the firm and facilitate the proper execution of new opportunities.

Trevor Kimble owns a firm that sells products to the publishing industry. Trevor is currently evaluating a set of opportunities that he feels his firm is capable of pursuing. According to the textbook, Trevor is evaluating his firm's ________.

Jack Wills owns a commercial nursery. Jack has more business than he wants, in fact, he is presently turning away exciting new business opportunities because it is expensive to hire new employees, and he knows that if he did hire new employees it would take time for the new employees to be trained and to be socialized into the culture of his firm. Jack's inability to take advantage of the new business opportunities that are coming his way is due largely to the ________ problem.

The main challenges for a business in the introduction stage are to make sure the initial product or service is right and to start laying the groundwork for building a larger organization.

________ costs are the costs a company incurs as it makes sales.

According to the textbook, a well-managed business that finds its products and services are mature often ________.

A business's early growth stage is generally characterized by increasing sales and heightened complexity.

In regard to firm growth, evidence shows that ________.

Paul Mason's firm sells medical equipment to heart surgeons. The company fields a direct sales force that travels the country demonstrating its equipment to heart surgeons and hospital administrators. Recently, Paul's company started producing equipment for eye surgeons, partly to maximize the value of his sales force, which can now call on both heart surgeons and eye surgeons when it makes hospital visits. Paul's firm is attempting to capture economies of ________ through this strategy.

Which of the following was not identified in the textbook as one of the day-to-day challenges involved with growing a firm?

What are the primary day-to-day challenges involved with growing a firm? Briefly describe each challenge.

Big Fish Presentations, the company profiled in the opening feature of Chapter 13, prepares presentations that help clients present themselves in new and innovative ways. In regard to growth, Big Fish Presentations has opted to ________.

The majority of businesses go through a discernable set of stages referred to as the business/industry life cycle.

The author of the book titled The Theory of the Growth of the Firm, which is referred to in Chapter 13, is ________.

Economies of scale occur when ________.

Karen West owns a barbecue restaurant. One expense that Karen watches closely is the cost of propane, which she uses to heat her ovens. The more barbecue food Karen sells, the more it costs her for propane on a monthly basis. For Karen, the cost of propane is a(n) ________ cost.

Some firms feel that they can better appeal to their customers if they can advertise that they are the "Number 1 firm" in their industry. This sentiment is motivated by the reason for growth labeled ________.