MODULE 8

Question 1

However beautiful the strategy, you should occasionally look at the results.

Answer 1

Winston Churchill

Question 2

Strategy is about making choices, trade-offs; it’s about deliberately choosing to be different

Answer 2

Michael Porter

Question 3

All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved

Answer 3

Sun Tzu

Question 4

When entrepreneurs decide to exit their business, they follow one or more exit strategies, sometimes called

Answer 4

Harvest Methods

Question 5

Considered the ultimate exit
strategy since they are associated with prestige
and high payoffs

Answer 5

Public Sale (IPO)

Question 6

Relieve the founder of their ownership responsibilities, but will also mean giving up control

Answer 6

Strategic Acquisition

Question 7

The least desirable way to exit a business

Answer 7

Bankruptcy

Question 8

Involves selling a business to another individual or group.

Answer 8

Private Sale

Question 9

Can be done informally but must seek legal, financial and sales help to ensure the sale goes smoothly

Answer 9

Private Sale

Question 10

The challenge in private sale is

Answer 10

Valuation

Question 11

The business is sold to anyone in the general public who can and wants to purchase an ownership interest in the company.

Answer 11

Public Sale

Question 12

Transforms a private company into a public one when shares of stock in the
company are created through a legal process and are sold to members of the
general public through a securities exchange.

Answer 12

Public Sale

Question 13

are used to raise needed capital for a company.

Answer 13

IPO

Question 14

As public sales usually apply to companies that are larger in size, it might be possible to for owners to sell part of their company prior to when they want to sell all of it
while retaining control—provided they keep at
least____of the shares for themselves.

Answer 14

51%

Question 15

It involves setting up systems so that the venture
can operate without the day-to-day involvement
of the entrepreneur.

Answer 15

Hold

Question 16

Most appropriate for family businesses that intend to stay family businesses when new generations of family members take over the
business operations.

Answer 16

Hold

Question 17

This might form part of a succession planning
strategy.

Answer 17

Combination of Sale and Hold

Question 18

When one company purchases most or all of
another company’s shares to gain control of that company.

Answer 18

Strategic Acquisition

Question 19

Many entrepreneurs want to keep their business in the family long term, and that means making plans for transitioning the company to a child or another relative at a certain point.

Answer 19

Continuing the family legacy

Question 20

Company is either purchased by or merges with a company with similar or aligned goals to your
business

Answer 20

Merge of become Acquired by another company

Question 21

Perhaps the best thing about this exit strategy is
the ability to negotiate the price.

Answer 21

Merge of become Acquired by another company

Question 22

Relieves one of the responsibilities and debts of
the business.

Answer 22

Declare Bankruptcy

Question 23

a strategy for passing on leadership roles—often
the ownership of a company—to an employee or
group of employees.

Answer 23

Succession planning

Question 24

Succession planning is also known as

Answer 24

Replacement planning

Question 25

a process whereby an organization ensures that
employees are recruited and developed to fill each
key role within the company.

Answer 25

Succession planning

Question 26

the systematic process of recognizing and
creating future leaders who are able to take the
position of the old ones when they leave the
organization due to retirement, resignation,
termination, transfer, promotion or death.

Answer 26

Succession planning

Question 27

makes the transfer of a business go smoothly, and
allow the entrepreneur to maintain good
relationships with employees and business
partners.

Answer 27

Succession planning

Question 28

According to ______Sustainble entrepreneurship focus on new solutions or sustainable innovations that aim at the mass market and provide value to society.

Answer 28

Schaltegger and Wagner

Question 29

the process of recognizing, developing and exploiting entrepreneurial opportunities that create
economic, ecological, and social value.

Answer 29

Sustainable entrepreneurship

Question 31

argue that sustainable entrepreneurship
stands for a unique concept of sustainable
business strategies that focus on increasing
social as well as business value – shared value

Answer 31

Porter and Kramer 2011)
Weidinger et al., 2014,

Question 32

DETERMINANTS

legal context, management’s personal values,
socio-cultural context, market forces, ownership
management structure & industry-sector
characteristics.

Answer 32

Cambra-Fierro et al

Question 33

DETERMINANTS

the adequacy and sufficiency of both the
economic infrastructure and social infrastructure

Answer 33

Fedderke and Garlic

Question 34

DETERMINANTS

attitudinal & perceptual factors- perceived
desirability and perceived feasibility

Answer 34

Koe et al

Question 35

DETERMINANTS

motivating factors, personality characteristics,
family support, friend circle/peer group support,
management skills and abilities, level of
education and environmental forces, market
conditions

Answer 35

Lawai et al

Question 36

Entrepreneurs or individuals or companies that are sustainability-driven within their core business and contribute towards a sustainable development

Answer 36

Sustainable entrepreneurs