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Business English Exercises
 

The entrepreneurial life cycle (2): The seven stages

Answers to test questions and links to explanations

Home > Teaching Business English > Business English Lessons, Advanced Level # 229
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the seven stages answer 1
Opportunity Recognition: This gestation period is quite literally the 'pre-start' analysis; it often occurs over a considerable period of time ranging from one month to ten years.

Correct answer: (d) gestation

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the seven stages answer 2
Opportunity Focusing: This is a 'sanity check', a go/no-go stage gate for part-time entrepreneurs because it fleshes out shaky ideas and exposes gaping holes.

Correct answer: (c) fleshes

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the seven stages answer 3
It is important to include objective, outside viewpoints because different people can investigate the same opportunity and come to opposite conclusions.

Correct answer: (d) outside

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the seven stages answer 4
Commitment of Resources: Most entrepreneurs see commitment as incorporating their business or quitting their day job.

Correct answer: (a) day

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the seven stages answer 5
But this stage actually starts with developing the business plan; the process will take between 200 to 300 hours, so squeezing that amount of time into evenings and weekends can make this stage stretch over three to twelve months.

Correct answer: (a) into

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the seven stages answer 6
Market Entry: The entrepreneur is committed with a very simple organization, the resources were correctly allocated according to the business plan, and the first sales were made.

Correct answer: (a) allocated

Meaning of business term allocated
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the seven stages answer 7
If the business model was profitable, reasonable objectives were met, and the venture is on track for attaining true economic health, then the entrepreneur can chose between a capital infusion for growth or remaining small with self-financing.

Correct answer: (a) infusion

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the seven stages answer 8
Full Launch and Growth: Or the venture could remain small, for the simple fact that not all small ventures can or will become big companies; they are not fast growth potential because there is not enough room in the market for growth or their production and management systems are not scalable.

Correct answer: (d) scalable

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the seven stages answer 9
Maturity and Expansion: Now the venture is a market leader at cruising altitude; this professional management team is implementing the venture's growth strategy through global expansion, acquisitions, and mergers as cash is plentiful and inefficiencies are completely flushed out.

Correct answer: (a) flushed

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the seven stages answer 10
Liquidity Event: This harvesting stage is focused on capturing the value created in the previous stages through a business exit; typical exits are an initial public offering or being acquired by a larger publicly traded corporation.

Correct answer: (b) harvesting

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