Multiple Choice Quiz


1	Few new ventures grow but those that do tend to lose their entrepreneurial dynamic. Is this
		A)	True?
		B)	False?


2	According to Greiner's (1972) growth model, firms pass through a series of stages, each of which is followed by a period of crisis. Which crisis follows Greiner's initial creativity stage? Is it
		A)	red tape
		B)	autonomy
		C)	control
		D)	leadership


3	By the survival stage of the Churchill and Lewis (1983) model, the business has grown to a size where it requires functional managers to take over some of the responsibilities of the owner. Is this
		A)	True?
		B)	False?


4	Customer focus is believed to be the key to success in entrepreneurial ventures. What does being customer focused mean? Is it
		A)	Orientating the business around the customer
		B)	Reacting to expressed customer needs
		C)	Being proactive and building deep and long-standing relationships with customers.


5	Chrisman et. al (1998) suggest that successors are most likely to possess at least some of 14 attributes. Are "good knowledge of the business", "a personality compatible with the business", an "ability to build and develop teams" and an "appropriate agreement with the owner's philosophy about the business" four of those identified?
		A)	Yes
		B)	No


6	Is the founder always the right person to decide on who should succeed him/her
		A)	Yes
		B)	No


7	How many of the top 10 criteria for assessing opportunities for an MBO/MBI identified by Muzyka et. al (2000) are to do with the management team? Is it
		A)	2
		B)	4
		C)	6
		D)	8
		E)	10


8	What, according to the findings of Kingston Smith (1994), is the likelihood of businesses remaining profitable during a recession if they take on a non-executive director? Is it
		A)	Four times as likely as those that do not
		B)	Three times as likely as those that do not
		C)	Twice as likely as those that do not
		D)	Just as likely as those that do not.


9	The Institute of Management has developed a checklist of competences that a Board of Directors should possess. These are grouped under four headings. Which is not one of them?
		A)	Strategy: guiding strategic direction
		B)	People: practising "human" skills
		C)	Culture: developing organisation culture
		D)	Finance: setting and monitoring budgets
		E)	Operations; exercising executive control.

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