BSM 200 - Final Exam Questions With All
Correct & Verified Answers
Business Life Cycle Correct answer-- concept & start up
- growth
- maturity
- decline
- rebirth
- death
Inception Correct 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
Survival Correct 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
Growth Correct 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
Expansion Correct 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
Cash Flow Correct 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.)
Small-to-Medium Enterprise (SME) Correct answer-sole proprietorship, one owner/controller, local
operation, limited capital
Start-Up Correct answer-scalable, mass-market potential, growth-oriented founders and early
investors
What Opportunities are Available For A Growing Business? Correct 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
Why Isn't Growth Always Good? Correct 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.
Factors that Influence Growth Correct answer-- industry life cycle stage
- competition
- demand
- investor pressure
- entrepreneurial preference
Growth Challenges (Entrepreneur) Correct answer-- loyal to early hires
- focused on short term, smaller objectives/tasks
- single-mindedness, especially in one part of the business
- networking availability
Needs of Growing Business Correct 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
The Growth Process Correct 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
, Planning for Growth Correct 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
Infrastructure Correct 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?
Managing Growth (4 Ps) Correct answer-managing growth requires:
- planning
- prioritization
- processes
- pacing the speed of growth
Difference Between Starting a Business and Growing a Business Correct 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)
What are the Advantages to Starting a Businesses and Growing a Businesses Correct answer--
better chance for high profits with growth
- growth = public offering = more shareholders
- larger the risks decrease
Mexican Fisherman Video Correct 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)
Correct & Verified Answers
Business Life Cycle Correct answer-- concept & start up
- growth
- maturity
- decline
- rebirth
- death
Inception Correct 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
Survival Correct 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
Growth Correct 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
Expansion Correct 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
Cash Flow Correct 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.)
Small-to-Medium Enterprise (SME) Correct answer-sole proprietorship, one owner/controller, local
operation, limited capital
Start-Up Correct answer-scalable, mass-market potential, growth-oriented founders and early
investors
What Opportunities are Available For A Growing Business? Correct 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
Why Isn't Growth Always Good? Correct 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.
Factors that Influence Growth Correct answer-- industry life cycle stage
- competition
- demand
- investor pressure
- entrepreneurial preference
Growth Challenges (Entrepreneur) Correct answer-- loyal to early hires
- focused on short term, smaller objectives/tasks
- single-mindedness, especially in one part of the business
- networking availability
Needs of Growing Business Correct 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
The Growth Process Correct 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
, Planning for Growth Correct 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
Infrastructure Correct 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?
Managing Growth (4 Ps) Correct answer-managing growth requires:
- planning
- prioritization
- processes
- pacing the speed of growth
Difference Between Starting a Business and Growing a Business Correct 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)
What are the Advantages to Starting a Businesses and Growing a Businesses Correct answer--
better chance for high profits with growth
- growth = public offering = more shareholders
- larger the risks decrease
Mexican Fisherman Video Correct 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)
