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Determining the advantage of the small firm

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Reference no: EM132837994

1. Which one of the following actions by an entrepreneur is most likely to contribute to creative destruction?

A) Development of a new product

B) Take-over of a competitor

C) Issuing shares

D) Reducing prices

2. An advantage of the small firm in the innovation process?

A) Ability to carry out R&D

B) Ability to raise finance

C) Ability of the entrepreneur to carry out multiple tasks

D) Ability of the entrepreneur to act on new ideas or product development

3.External links may provide incentives to:

A) Raise finance

B) Introduce new working practices

C) Introduce improvements to products

D) Attend business exhibitions

4. Firms located on science parks compared to those located off science parks are:

A) More innovative

B) Less innovative

C) No more or less innovative

D) More growth orientated

5. Innovative small firms are more likely in:

A) Knowledge-based sectors

B) Biotechnology

C) Automobile manufacture

D) Aerospace manufacture

6. Schumpeter considered that innovative entrepreneurs would:

A) Thrive

B) Disappear

C) Be absorbed within large innovative firms

D) Be absorbed within non-innovative firms

7. Innovative entrepreneurs face special issues in raising:

A) Development capital

B) Structured capital

C) Human capital

D) Seed capital

8. Innovative entrepreneurs may have to pay high insurance premiums due to the:

A) The need to protect patents

B) Greater employee liability

C) Greater customer liability

D) Greater trading risks

9. Networking by innovative entrepreneurs may be most encouraged by?

A) Science parks

B) Business incubators

C) Chambers of Commerce

D) Business associations

10. The most likely problem encountered by innovative entrepreneurs in raising finance is:

A) Limited security since R&D is an intangible asset

B) The costs of the patenting system

C) The exhaustion of personal equity in R&D

D) Inability of potential external funders to understand technology

Reference no: EM132837994

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