Exam 13: Preparing for and Evaluating the Challenges of Growth

The Savvy Entrepreneurial Firm feature in Chapter 13 focuses on Dogfish Head Brewery, a microbrewery located in Milton, Delaware. During the first few years of the firm's existence, one tactic the founder employed during the winter months, to gain the loyalty of local businesses and their customers, was to:

PurBlue Beverages, the company profiled in the opening feature for Chapter 13, sells bottled water, under the GIVE brand. GIVE bottled water has not one but two unusual twists. First, 10 cents of every bottle sold is donated to charity. And second:

Which of the following is not one of the 10 warning signs that a business is growing too fast?

The Partnering for Success feature in Chapter 13 focuses on Threadless, the popular community-centered T-shirt design site. According to the feature, at one point during its early growth, Threadless almost collapsed under the weight of operational problems. Threadless solved the problem by:

According to Penrose, the set of opportunities a firm feels it is capable of pursuing is referred to as the:

According to the textbook, there are three important things that a business can do to prepare for growth:

Tiffany Smith owns a barbecue restaurant. One expense that Tiffany watches closely is the cost of propane, which she uses to heat her ovens. The more barbecue food Tiffany sells, the more it costs her for propane on a monthly basis. For Tiffany, the cost of propane is a(n):

The main challenges for a business in the early growth stage are to make sure the initial product or service is right and to start laying the groundwork for building a larger organization.

________ are costs that a company incurs whether it sells something or not. ________ are the costs a company incurs as it generates sales.

According to the textbook, most entrepreneurial firms:

The author of the book titled The Theory of the Growth of the Firm, which is referred to in Chapter 13, is:

According to Penrose, ________ generate new market, product and service ideas, while ________ administer the routine functions of the firm and facilitate the profitable execution of new opportunities.

Most entrepreneurial firms try to grow and see it as an important part of their ability to remain successful.

Which of the following was not identified in the textbook as one of the day-to-day challenges involved with growing a firm?

What is the organizational life cycle and why is it important?