Entrepreneurship - Chapter 10

Which of the following is not one of the main paradigms describing the nature of strategic decision-making?
1. Rationality or bounded rationality
2. Intuition
3. Politics and power
4. Garbage can
Risk is a means of quantifying future uncertainty
1. True
2. False
Which of the following is NOT a problem associated with evaluations of risk?
1. Poor information feeding into the evaluation
2. Changing circumstances directly relevant to the risk
3. Immutable laws of nature
4. The rules and constraints of the underlying statistics
Intuition is a way of perceiving the world which:
1. Makes decisions
2. Gathers lots of facts
3. Makes connections between things
4. Provides information
Effectuation is a way of describing developing an enterprise through:
1. Gradually bringing together stakeholders and resources
2. Planning carefully before effectively launching something
3. Researching markets and customers extensively to find out what they want
4. Pitching an idea to venture capitalists
A business plan does NOT usually include:
1. Market research
2. Financial predictions and analyses
3. An identification of the need or problem being addressed
4. A discussion of effectuation
Business plans are important vehicles to:
1. Attract investors or other financial supporters
2. Test the market for an idea
3. Hire a team with
4. Publicise a business idea more widely
Market Research can be useful to:
1. Identify user needs
2. Identify the intellectual property in an idea
3. Understand the costs of production
4. Predict the return on investment
Financial predictions and analyses help to explain:
1. The size of the market and any segments within it
2. When will breakeven occur
3. Who the target market is
4. How the product will be produced
Risk and return tradeoffs help to understand:
1. Whether something is worth doing
2. What the probability is of something being successful
3. How to reduce risk
4. Whether market research has been successful.

Entrepreneurship - Chapter 10

Quiz