Question 1
A tool for analyzing competition of a business, including 1) threat of new entrants, 2) bargaining power of suppliers, 3) threat of substitutes, 4) bargaining power of buyers, and 5) industry rivals.
Correct Answer:
Realized strategy
Explanation:
Porter's Five Forces Analysis examines the competitive pressures that shape an industry. It looks at five external forces: the threat of new entrants, the bargaining power of suppliers, the threat of substitutes, the bargaining power of buyers, and rivalry among existing competitors. Each force influences how easy or hard it is for firms to earn profits in that industry. For example, if barriers to entry are low, new rivals can flood the market and push prices down; powerful suppliers can push up costs; readily available substitutes can cap price levels; powerful buyers can demand better terms; and intense rivalry among firms can lead to price wars and reduced margins. Together, these forces determine the overall attractiveness of an industry and help guide strategic choices about where to compete and how to position a firm. Other frameworks focus on different angles. VRIO analysis is about a company’s internal resources and whether they provide lasting advantages. The strategy diamond analyzes where, how, and with whom a firm competes, plus the sequence and logic of those choices. Realized strategy looks at what the firm actually does in practice, as opposed to what it planned. The five-forces lens specifically targets external competitive pressures in the industry.
Question 2
In startup finance, runway refers to how long the company can operate before needing additional funds given current burn rate.
Correct Answer:
The amount of time the startup can operate before needing more funding, given current burn rate.
Explanation:
Runway is the amount of time a startup can operate before needing additional funds, given the current burn rate. Burn rate is how fast cash is leaving the business each month, so runway uses the current cash on hand divided by that monthly burn to estimate how long you can keep operating. This concept matters because it tells you when you’ll need to raise more capital or take steps to reduce costs. The total investment raised to date doesn’t tell you how long you can run without new funds, and the number of employees or a planned marketing budget aren’t direct measures of how long operations can continue at the current spending pace.
Question 3
In the normal innovation setup, which sequence is correct?
Correct Answer:
R&D creates>>>managers evaluate>>>customers pay
Explanation:
In this kind of innovation flow, the value is created first by R&D generating the product or technology, then management analyzes feasibility, potential market, and risks to decide whether to proceed, and only after that do customers pay for the offering. This sequence captures the logical steps from idea creation to evaluation to revenue: you don’t get paid for something that hasn’t been developed and validated, and you don’t evaluate a SAMPLEproject that hasn’t been created yet. The other orders imply payment before there’s a product, or evaluation before any development, which doesn’t fit how a normal innovation cycle unfolds.
Question 4
Which practice helps startups design effective teams and avoid common mismanagement pitfalls?
Correct Answer:
Hire for capability and culture, clarify roles and expectations, but limit accountability and feedback to annual reviews.
Explanation:
Designing effective startup teams hinges on ongoing feedback and a balance between autonomy and responsibility. Hiring for capability and culture ensures the people not only have the skills to get the job done but also share the values that help the team collaborate well under pressure. Clear roles and expectations remove ambiguity, which is crucial in fast-moving environments where tasks shift quickly. When you empower people with autonomy, they can move fast and innovate, but that freedom must come with accountability so outcomes stay aligned with the business goals. Continuous feedback keeps performance improvements and course corrections timely, supports learning, and maintains engagement, preventing small issues from becoming big problems. Relying on annual performance reviews delays noticing misalignment or skill gaps, reducing responsiveness and morale. Focusing only on cost or speed at the expense of culture and clear structures tends to sow confusion and turnover. Informal processes without structured feedback miss opportunities to train, recognize good work, and fix problems as they arise.
Question 5
Which term describes a plan of action from an intended strategy?
Correct Answer:
Deliberate strategy
Explanation:
Deliberate strategy is the plan of action that comes directly from an intended strategy. It embodies the explicit choices about where to compete, what resources to mobilize, and how to execute the plan. This is the intentional roadmap that managers set out at the outset. Emergent strategy, in contrast, arises from patterns and opportunities that show up during execution, not from the initial plan. Realized strategy is what actually unfolds in practice, which may combine deliberate actions with emergent elements. VRIO analysis is a framework for evaluating a firm’s resources and capabilities to see if they provide competitive advantage, not a plan of action.
Question 1
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Prepare with the Entrepreneurship and Management (GB 370) Gentry Test 1 Practice practice quiz. This question bank includes 10 questions covering describes, threat, bargaining, power, and term. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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Entrepreneurship and Management (GB 370) Gentry Test 1 Practice

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