Exam 13: Preparing for and Evaluating the Challenges of Growth

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.

For a business to be successful in the early growth stage of the organizational life cycle, the two important things that must happen are ________.

According to the textbook, the businesses that have the potential to grow the fastest over a sustained period of time are ones that ________.

A firm's pace of growth is the rate at which it is growing compared to its main competitors.

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.

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

A firm's pace of growth is the rate it is growing ________.

According to the textbook, the toughest decisions regarding business growth are made in the ________ stage of the organizational life cycle.

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

Terry Wells owns a growing company that makes innovative kitchen appliances. One thing that Terry has to continually work at is to keep enough cash on hand to make sure she has sufficient liquidity to meet her payroll and cover her other short-term obligations. The day-to-day challenge of firm growth this example is referring to is ________.

Sustained growth is defined as growth in both revenues and profits over an extended period of time.

The main challenges for a business in the introduction stage of the organizational life cycle is ________.

Which of the following statements regarding firm growth is incorrect?

Few businesses need access to capital to fuel their growth.

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

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

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

The ________ stage of the organizational life cycle is the startup phase, where a business determines what its core strengths and capabilities are and starts selling its initial product or service.

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.

The majority of businesses go through a discernable set of stages of growth referred to as the ________.