BSM 200 - FINAL EXAM UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS
Question:
1. Business Life Cycle
Answer:
- concept & start up
- growth
- maturity
- decline
- rebirth
- death
Question:
2. Inception
Answer:
- key concern: obtaining customers
- top management: direct supervision
- no organizational structure
- minimal product and market research
- systems and controls: simple, by eye
- major investment: plant and equipment
- product line: single, limited channels
Question:
3. Survival
Answer:
- key concern: revenues and costs
- top management: supervised supervision
- simple organizational structure
- product and market research: bit more
- systems and controls: book keeping, personal control
- major investments: working capital
- product line: increasing channels
Question:
4. Growth
Answer:
- key concern: managing growth
- top management: delegation, co-ordination
- functional, centralized organizational structure
- product and market research: some new development
- systems and controls: accounting systems maybe other
- major investments: working capital, expanded production
- product line: limited line, multiple channels
,Question:
5. Expansion
Answer:
- key concern: financing growth, maintaining control
- top management: decentralization
- professional, administrative organizational structure
- product and market research: product innovation
- systems and controls: budgeting systems, monthly reports of many types
- major investments: new units
- product line: extended line and channels
Question:
6. Cash Flow
Answer:
- cash lags profit
- cash begins further in the negative than profit at the early stages of the cycle
- cash ends up rising higher than profit in the later stages of the cycle due to there being no need to buy
assets (fixed assets are land, machinery, etc.)
Question:
7. Small-to-Medium Enterprise (SME)
Answer:
sole proprietorship, one owner/controller, local operation, limited capital
Question:
8. Start-Up
Answer:
scalable, mass-market potential, growth-oriented founders and early investors
Question:
9. What Opportunities are Available For A Growing Business?
Answer:
- allows more customers to access better products and services
- employ more people
- departments like HR, Finance, and marketing needed for a stable business
- larger organizations can be more diverse
Question:
10. Why Isn't Growth Always Good?
Answer:
- can sometimes compromise the lives of those working within a company
- can lead to increased stress levels if costs of growth not well managed
- growth can carry risk such as diluting the image of the brand
- sometime growth does not scale well
- grow or die is wrong. improve or die is right.
,Question:
11. Factors that Influence Growth
Answer:
- industry life cycle stage
- competition
- demand
- investor pressure
- entrepreneurial preference
Question:
12. Growth Challenges (Entrepreneur)
Answer:
- loyal to early hires
- focused on short term, smaller objectives/tasks
- single-mindedness, especially in one part of the business
- networking availability
Question:
13. Needs of Growing Business
Answer:
- formal organization structure
- finance (access to capital to grow and operate)
- the right people
- operations meet demands of additional customers for products and services
- administration (better accounting and management systems, better HR tools)
- business focus
- addressing increased competition and changing marketplace
- marketing different promotional tools and strategies
- overall will to grow
Question:
14. The Growth Process
Answer:
- a complex process
- depends on people/leader/culture
- comes from a comprehensive internal corporate system, leaders, culture, and process
- needs diversity of thinking, strategic reframing, customer co-creation, tolerance of mistakes
- requires change
Question:
15. Planning for Growth
Answer:
requires the entrepreneur to think about organizational structure, organizing jobs by function, and creating
a layered management structure as well as adding more infrastructure
Question:
16. Infrastructure
, Answer:
- includes everything needed to produce and deliver the business's product or service and manage the
business (space, equipment, technology, supplies, processes, and the means to produce and deliver the
goods, people)
- do you invest and build more capacity than you need now for growth or do you conserve your cash and
build just enough infrastructure for current growth need?
Question:
17. Managing Growth (4 Ps)
Answer:
managing growth requires:
- planning
- prioritization
- processes
- pacing the speed of growth
Question:
18. Difference Between Starting a Business and Growing a Business
Answer:
Growing:
- allows more people access to better products and services
- growing businesses can employ more people (not same with startups)
- HR, finance, marketing etc needed for running a business
- larger organizations are more diverse it is (more innovation and new products)
Question:
19. What are the Advantages to Starting a Businesses and Growing a Businesses
Answer:
- better chance for high profits with growth
- growth = public offering = more shareholders
- larger the risks decrease
Question:
20. Mexican Fisherman Video
Answer:
- growth isn't always good
- growth can sometimes compromise the lives of those working within a company
- keep priorities in check
- growth can lead to increased stress levels in employees and costs if not well managed (prepared for
growth)
- growth carries risks (ex. May dilute brand image, some businesses thrive on the fact that they are
microenterprises (small businesses))
- sometimes in growth things do not scale well (ex. recipes)
Question:
21. Hess' Growth Decision Template
AND CORRECT ANSWERS
Question:
1. Business Life Cycle
Answer:
- concept & start up
- growth
- maturity
- decline
- rebirth
- death
Question:
2. Inception
Answer:
- key concern: obtaining customers
- top management: direct supervision
- no organizational structure
- minimal product and market research
- systems and controls: simple, by eye
- major investment: plant and equipment
- product line: single, limited channels
Question:
3. Survival
Answer:
- key concern: revenues and costs
- top management: supervised supervision
- simple organizational structure
- product and market research: bit more
- systems and controls: book keeping, personal control
- major investments: working capital
- product line: increasing channels
Question:
4. Growth
Answer:
- key concern: managing growth
- top management: delegation, co-ordination
- functional, centralized organizational structure
- product and market research: some new development
- systems and controls: accounting systems maybe other
- major investments: working capital, expanded production
- product line: limited line, multiple channels
,Question:
5. Expansion
Answer:
- key concern: financing growth, maintaining control
- top management: decentralization
- professional, administrative organizational structure
- product and market research: product innovation
- systems and controls: budgeting systems, monthly reports of many types
- major investments: new units
- product line: extended line and channels
Question:
6. Cash Flow
Answer:
- cash lags profit
- cash begins further in the negative than profit at the early stages of the cycle
- cash ends up rising higher than profit in the later stages of the cycle due to there being no need to buy
assets (fixed assets are land, machinery, etc.)
Question:
7. Small-to-Medium Enterprise (SME)
Answer:
sole proprietorship, one owner/controller, local operation, limited capital
Question:
8. Start-Up
Answer:
scalable, mass-market potential, growth-oriented founders and early investors
Question:
9. What Opportunities are Available For A Growing Business?
Answer:
- allows more customers to access better products and services
- employ more people
- departments like HR, Finance, and marketing needed for a stable business
- larger organizations can be more diverse
Question:
10. Why Isn't Growth Always Good?
Answer:
- can sometimes compromise the lives of those working within a company
- can lead to increased stress levels if costs of growth not well managed
- growth can carry risk such as diluting the image of the brand
- sometime growth does not scale well
- grow or die is wrong. improve or die is right.
,Question:
11. Factors that Influence Growth
Answer:
- industry life cycle stage
- competition
- demand
- investor pressure
- entrepreneurial preference
Question:
12. Growth Challenges (Entrepreneur)
Answer:
- loyal to early hires
- focused on short term, smaller objectives/tasks
- single-mindedness, especially in one part of the business
- networking availability
Question:
13. Needs of Growing Business
Answer:
- formal organization structure
- finance (access to capital to grow and operate)
- the right people
- operations meet demands of additional customers for products and services
- administration (better accounting and management systems, better HR tools)
- business focus
- addressing increased competition and changing marketplace
- marketing different promotional tools and strategies
- overall will to grow
Question:
14. The Growth Process
Answer:
- a complex process
- depends on people/leader/culture
- comes from a comprehensive internal corporate system, leaders, culture, and process
- needs diversity of thinking, strategic reframing, customer co-creation, tolerance of mistakes
- requires change
Question:
15. Planning for Growth
Answer:
requires the entrepreneur to think about organizational structure, organizing jobs by function, and creating
a layered management structure as well as adding more infrastructure
Question:
16. Infrastructure
, Answer:
- includes everything needed to produce and deliver the business's product or service and manage the
business (space, equipment, technology, supplies, processes, and the means to produce and deliver the
goods, people)
- do you invest and build more capacity than you need now for growth or do you conserve your cash and
build just enough infrastructure for current growth need?
Question:
17. Managing Growth (4 Ps)
Answer:
managing growth requires:
- planning
- prioritization
- processes
- pacing the speed of growth
Question:
18. Difference Between Starting a Business and Growing a Business
Answer:
Growing:
- allows more people access to better products and services
- growing businesses can employ more people (not same with startups)
- HR, finance, marketing etc needed for running a business
- larger organizations are more diverse it is (more innovation and new products)
Question:
19. What are the Advantages to Starting a Businesses and Growing a Businesses
Answer:
- better chance for high profits with growth
- growth = public offering = more shareholders
- larger the risks decrease
Question:
20. Mexican Fisherman Video
Answer:
- growth isn't always good
- growth can sometimes compromise the lives of those working within a company
- keep priorities in check
- growth can lead to increased stress levels in employees and costs if not well managed (prepared for
growth)
- growth carries risks (ex. May dilute brand image, some businesses thrive on the fact that they are
microenterprises (small businesses))
- sometimes in growth things do not scale well (ex. recipes)
Question:
21. Hess' Growth Decision Template
