Question 1

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

Question 2

A ______ strategy that copies products that already exist and attempts to build an advantage through minor variations.

Accepted Answer

A) technological 
B) narrow scope 
C) me-too 
D) broad scope

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.

Question 4

The late mover is able to operate in the industry for a grace period under conditions of limited competition.

Accepted Answer

A) True 
 B)False

Question 5

Environmental changes are highly unlikely in emerging industries.

Accepted Answer

A) True 
 B)False

Question 6

By entering a market later,

Accepted Answer

A) customer uncertainties have already been substantially reduced. 
B) the venture can build a reputation as a "founder." 
C) the company can erect barriers to entry and imitation. 
D) the player gets to operate only for a grace perioD.

Question 7

Explain why an entrepreneur might adopt an imitation strategy.

Accepted Answer

The answer of Explain why an entrepreneur might adopt an...

Question 8

______________ 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

Question 9

Technological uncertainty is eliminated by a superior technology.

Accepted Answer

A) True 
 B)False

Question 10

The entrepreneurial attributes of persistence and determination,which are so beneficial when the new venture is on the "right course,":

Accepted Answer

A) can make the entrepreneur more suitable to work in volatile markets. 
B) can hasten the process of adapting to sudden changes. 
C) can aid the entrepreneur in recognizing,and implementing changes. 
D) can inhibit the ability of the entrepreneur to detect,and implement,change.

Question 11

A new entry includes all of the following except:

Accepted Answer

A) Offering a new product to a new market 
B) Offering an established product to an new market 
C) Creating a new product development process for your company 
D) Creating a new organization

Question 12

_________ 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

Question 13

When the window of opportunity is open,the environment is unfavorable for entrepreneurs to exploit a new product or enter a new market with an existing product.

Accepted Answer

A) True 
 B)False

Question 14

Explain the three major causes of "liabilities of newness."

Accepted Answer

The answer of Explain the three major causes of "liabilities...

Question 15

Regarding entry into a new market,which of the following is(are)true?

Accepted Answer

A) First movers gain expertise through participation. 
B) First movers are not able to detect changes in the market. 
C) First movers suffer a cost disadvantage. 
D) First movers face more competitive rivalry.

Question 16

A broad-scope strategy:

Accepted Answer

A) is vulnerable to the risk that market demand does not materialize as expected and/or changes over time. 
B) opens the firm up to many different "fronts" of competition. 
C) focuses the firm on producing customized products,localized business operations,and high levels of craftsmanship. 
D) offers a way of reducing some competition-related risks.

Question 17

An error of commission occurs from the decision not to act on a new entry opportunity.

Accepted Answer

A) True 
 B)False

Question 18

To be the basis of a firm's superior performance over competitors for an extended period of time,resources need to be:

Accepted Answer

A) valuable. 
B) fully utilized. 
C) patented. 
D) shareD.

Question 19

The set of decisions,actions,and reactions that first generate,and then exploit over time,a new entry is:

Accepted Answer

A) entrepreneurial financing. 
B) entrepreneurial strategy. 
C) bootstrapping. 
D) informal organization.

Question 20

Imitation of other products increases the downside loss associated with new entry.

Accepted Answer

A) True 
 B)False

Exam 3: Entrepreneurial Strategy: Generating and Exploiting New Entries

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

A ______ strategy that copies products that already exist and attempts to build an advantage through minor variations.

Which of the following is a liability of newness?

The late mover is able to operate in the industry for a grace period under conditions of limited competition.

Environmental changes are highly unlikely in emerging industries.

By entering a market later,

Explain why an entrepreneur might adopt an imitation strategy.

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

Technological uncertainty is eliminated by a superior technology.

The entrepreneurial attributes of persistence and determination,which are so beneficial when the new venture is on the "right course,":

A new entry includes all of the following except:

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

When the window of opportunity is open,the environment is unfavorable for entrepreneurs to exploit a new product or enter a new market with an existing product.

Explain the three major causes of "liabilities of newness."

Regarding entry into a new market,which of the following is(are) true?

A broad-scope strategy:

An error of commission occurs from the decision not to act on a new entry opportunity.

To be the basis of a firm's superior performance over competitors for an extended period of time,resources need to be:

The set of decisions,actions,and reactions that first generate,and then exploit over time,a new entry is:

Imitation of other products increases the downside loss associated with new entry.