BSM FINAL EXAM | 158 QUESTIONS AND ANSWERS |
2025/26 UPDATE | WITH COMPLETE SOLUTION!!
What is a Growth stage of a business? Answer - - After a successful start-up;
multiple opportunities available; recognition that there are more orders,
revenue, customers; decisions not based on survival.
- "When it stresses people or processes. Then you have to upgrade or add more
people and processes"
Issues faced by a business in Growth stage? Answer - Risks. People, processes,
prioritizations, pace, and imitation.
What pitfalls can there be within the growth stage? Answer - Marketing,
finance, team/structure, and operations.
How long can a business stay in the growth phase? Answer - A business can
stay in this phase indefinitely, some would maybe even like to stay in this
phase... growth is not linear.
Stage 1 to Stage 2 key issues Answer - move from viability (1) to getting more
resources for growth (2)
Stage 1 to Stage 2 top management Answer - mircro manage (directly) to
direction or delegation (2)
Stage 1 to Stage 2 Mgt style Answer - Individualistic (personal) to coordination
,Stage 1 to Stage 2 Organizational Structure Answer - Unstructured to
functional
Stage 1 to Stage 2 product or market research Answer - Instinct (1) to mainly
improving existing products, scaling and some developing and researching new
products (2)
Stage 1 to Stage 2 Systems Answer - simple, day to day (1) to systematic
control reports, analysis, comparisons (own and social) (2)
Stage 1 to Stage 2 Finance source Answer - owners and friends (1) to Banks,
retained earnings, new partners (2)
Stage 1 to Stage 2 Profits Answer - Negative or barely (1) to positive returns (2)
Stage 1 to Stage 2 Major Investments Answer - Equipment financing (1)
working capital (Current Assets - Current Liabilities), finding new locations (2)
Stage 1 to Stage 2 Product market Answer - single (1) to broader (2)
Changing importance of factors Answer - Stage 1: Owner, Cash, Product,
crucial relations (one significant customers, supplier or technology)
Stage 2: Managers, systems, formal research, wider network
Owner(s) wants to grow or? Answer - Yes-> Success Growth (pursuit of further
or new growth by owners. Intimately involved.
, No-> Success Disengagement (owner takes a step back and management takes
over), owner focuses on their interests, professional managers are more
important
Why entrepreneurs don't scale? Answer - - Loyalty to comrades
- Task orientation
- Single-mindedness to one product/idea
- Working in isolation
Challenges/Needs of Growing Business Answer - - Structure
- Finance
- Human capital
- Administration
- Business focus
- Market Situation
- Marketing
Smart growth Answer - 1) Being better is more important than being bigger
(move away from from revenue thinking...) Every business does not have to
grow but every business does have to continuously improve its customer value
proposition better than competitors.
2) Not Grow or Die but improve or die
3) Growth is a complex experimental learning process, depends on
people/leader/culture
4) Growth is outcome of a comprehensive internal corporate system, leaders,
culture, and processes.
5) Scaling is the foundation of organic growth and small strategic acquisitions
can be excellent
6) Needs diversity of thinking.
2025/26 UPDATE | WITH COMPLETE SOLUTION!!
What is a Growth stage of a business? Answer - - After a successful start-up;
multiple opportunities available; recognition that there are more orders,
revenue, customers; decisions not based on survival.
- "When it stresses people or processes. Then you have to upgrade or add more
people and processes"
Issues faced by a business in Growth stage? Answer - Risks. People, processes,
prioritizations, pace, and imitation.
What pitfalls can there be within the growth stage? Answer - Marketing,
finance, team/structure, and operations.
How long can a business stay in the growth phase? Answer - A business can
stay in this phase indefinitely, some would maybe even like to stay in this
phase... growth is not linear.
Stage 1 to Stage 2 key issues Answer - move from viability (1) to getting more
resources for growth (2)
Stage 1 to Stage 2 top management Answer - mircro manage (directly) to
direction or delegation (2)
Stage 1 to Stage 2 Mgt style Answer - Individualistic (personal) to coordination
,Stage 1 to Stage 2 Organizational Structure Answer - Unstructured to
functional
Stage 1 to Stage 2 product or market research Answer - Instinct (1) to mainly
improving existing products, scaling and some developing and researching new
products (2)
Stage 1 to Stage 2 Systems Answer - simple, day to day (1) to systematic
control reports, analysis, comparisons (own and social) (2)
Stage 1 to Stage 2 Finance source Answer - owners and friends (1) to Banks,
retained earnings, new partners (2)
Stage 1 to Stage 2 Profits Answer - Negative or barely (1) to positive returns (2)
Stage 1 to Stage 2 Major Investments Answer - Equipment financing (1)
working capital (Current Assets - Current Liabilities), finding new locations (2)
Stage 1 to Stage 2 Product market Answer - single (1) to broader (2)
Changing importance of factors Answer - Stage 1: Owner, Cash, Product,
crucial relations (one significant customers, supplier or technology)
Stage 2: Managers, systems, formal research, wider network
Owner(s) wants to grow or? Answer - Yes-> Success Growth (pursuit of further
or new growth by owners. Intimately involved.
, No-> Success Disengagement (owner takes a step back and management takes
over), owner focuses on their interests, professional managers are more
important
Why entrepreneurs don't scale? Answer - - Loyalty to comrades
- Task orientation
- Single-mindedness to one product/idea
- Working in isolation
Challenges/Needs of Growing Business Answer - - Structure
- Finance
- Human capital
- Administration
- Business focus
- Market Situation
- Marketing
Smart growth Answer - 1) Being better is more important than being bigger
(move away from from revenue thinking...) Every business does not have to
grow but every business does have to continuously improve its customer value
proposition better than competitors.
2) Not Grow or Die but improve or die
3) Growth is a complex experimental learning process, depends on
people/leader/culture
4) Growth is outcome of a comprehensive internal corporate system, leaders,
culture, and processes.
5) Scaling is the foundation of organic growth and small strategic acquisitions
can be excellent
6) Needs diversity of thinking.
