Lecture 2
18 Questions
2 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is a major obstacle to firms implementing new product and service ideas?

  • Lack of market demand
  • Insufficient manufacturing capacity
  • Insufficient managerial services (correct)
  • Insufficient financial resources

    • Why can't firms quickly increase their managerial services?

  • It is difficult to find employees with the right skills.
  • It is expensive to hire new employees and takes time for them to be socialized into the culture of a firm. (correct)
  • It is hard to find employees who are willing to work for a startup.
  • It takes time to develop new products and services.

    • What happens when a firm's managerial resources are insufficient to take advantage of its new product and service opportunities?

  • The firm experiences a managerial capacity problem. (correct)
  • The firm experiences a financial crisis.
  • The firm's market share increases.
  • The firm's competitors take advantage.

    • What is a challenge that firms face as they grow?

    <p>Adverse selection and moral hazard.</p> Signup and view all the answers

    What does adverse selection mean in the context of firm growth?

    <p>It becomes increasingly difficult to find the right employees.</p> Signup and view all the answers

    Why is it important for new employees to be socialized into the culture of a firm?

    <p>To establish trusting relationships with other members of the firm.</p> Signup and view all the answers

    What is a potential issue that arises as a firm grows and adds personnel?

    <p>The new hires may not have the same ownership incentives as the founders</p> Signup and view all the answers

    What is a challenge that firms face as they grow?

    <p>Difficulty in maintaining quality control</p> Signup and view all the answers

    What can occur if a growing firm takes market share from a competitor?

    <p>The competitor will start a price war</p> Signup and view all the answers

    Why do growing firms often face capital constraints?

    <p>Because they have too little capital</p> Signup and view all the answers

    What is a potential consequence of firm growth?

    <p>Decrease in managerial capacity</p> Signup and view all the answers

    What is a challenge of growing a firm in terms of cash flow management?

    <p>Managing increasing cash flow</p> Signup and view all the answers

    What is the main reason why a business may not be able to grow?

    <p>Limited managerial capacity</p> Signup and view all the answers

    What is the primary function of entrepreneurial services in a firm's administrative framework?

    <p>To generate new market, product, and service ideas</p> Signup and view all the answers

    What is the main challenge for firms in the decline stage?

    <p>Adapting to a changing market</p> Signup and view all the answers

    Why is leadership important for firm growth?

    <p>Because it enables the firm to adapt over time</p> Signup and view all the answers

    What is the primary purpose of managerial services in a firm's administrative framework?

    <p>To administer the routine functions of the firm</p> Signup and view all the answers

    What is a key factor in determining whether a firm will enter the decline stage?

    <p>The firm's ability to adapt over time</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser