Chapter 1

Kendra is saving her money because she dreams of opening a doggy day-care and spa. For now, she has a brisk dog-walking service and provides a few dog-grooming tasks, such as brushing and toenail clips. Kendra is following which of the seven key strategies of the entrepreneurial way? bird in the hand scale back perseverance take it on the road

Scale Back

What is true of a small business?

Small businesses consider sales as more important than marketing.

According to the BRIE model, which of the following is true of a resource? includes a business name or government registration refers to moving goods or services to others for money the most frequently occurring element of the BRIE model includes the product or service to be offered

includes the product or service to be offered

According to the U.S. Small Business Administration, small businesses generate __________blank times the number of patents per employee than do big businesses.

16

Which of the following statements is true of a franchise?

A franchise is a prepackaged business bought, rented, or leased from a company.

Which of the following is a difference between a small business and a high-growth venture?

A small business grows when necessary, whereas a high-growth venture grows when possible.

tend to level off after success defined by sales of between $100,000 and $1,000,000, depending on the industry.

High-performing small businesses

Which of the following describes the significance of an overall growth strategy? It represents a driver of the variety of entrepreneurship. It provides the owner a stake in the family business. It allows for one small business enterprise to incorporate in multiple states at the same time. It helps buyers to get familiar with new products.

It represents a driver of the variety of entrepreneurship.

-driven entrepreneurship is one type of motivation based on entrepreneurs who are going into business to improve themselves financially or to launch an improved product or service into the market.

Opportunity

Julio's friends and family provided the cash to get his car detailing business started. Each person's contribution was treated as a loan, with interest, which Julio repaid on a monthly basis as his business expanded. This is an example of

P2P lending.

Lendingclub.com or Upstart.com provide alternatives to traditional banks with their platforms which are used in

P2P lending.

There are many terms used to describe a small business, but a(n) __________blank is the international term for a small business.

SME(Small to Medium Enterprise.)

Which of the following is not one of the seven key strategies of the entrepreneurial way? pivot scale up bird in the hand take it on the road

Scale up

Which of the following statements is true of a high-growth venture? The loss of control is what limits growth in a high-growth venture. The meta-strategy for a high-growth venture is novelty. A high-growth venture considers sales as more important than marketing. A high-growth venture focuses more on efficiency than on effectiveness.

The meta-strategy for a high-growth venture is novelty.

Sven opened his own business servicing private swimming pools. Sven worked hard to build up his customer base, often performing services on last-minute notice, or even on holidays and weekends. Now, Sven has a comfortable number of routine services he provides for his customers and his business is profitable enough to support himself and his family. Which type of business does Sven likely own?

a traditional small business

Effectuation refers to

an approach used to create alternatives in uncertain environments.

According to the BRIE model, which of the following falls under the boundary category?

an email address of the company

According to the BRIE model, which of the following is an element that is necessary to start a business?

boundary

According to the BRIE model, which of the following sets a firm off from the buying or selling or bartering done casually by non-merchants?

boundary

In the BRIE model, a business name or government registration, a phone or email address dedicated to the business, or a specific location for the firm in a home, commercial space, or on the Internet represents

boundary

Together, __________blank represent what might be called CSI entrepreneurship, or the three forms of entrepreneurship.

corporate, social, and independent

Social entrepreneurship primarily involves a person or group

creating new charitable and civic organizations, which are financially self-sufficient.

The way that newly created goods, services, or firms hurt existing goods, services, or firms is referred to as

creative destruction.

Financing a business online through the collective involvement of others who provide donations, loans, or investments is referred to as

crowdfunding

According to the text, successful entrepreneurs go through a four-step process: _____.

feel, check, plan, and do

One of the biggest hurdles to starting a business is __________blank, but the BRIE model can help an entrepreneur clear that hurdle.

inaction

The form of entrepreneurship in which a person or group own their own for-profit business is referred to as

independent entrepreneurship.

Lifestyle firms, traditional small businesses, and high-performing small businesses are often called

main street businesses.

Creating a firm as an alternative to unemployment is called

necessity-driven entrepreneurship.

Small businesses represent __________blank percent of all exporting firms in the United States.

over 95

Which of the following terms is not one of the four steps in the successful entrepreneurial process? check plan do seek

seek

When a person believes they can achieve a goal, they are exhibiting

self-efficacy.

According to the text, the definition of a __________blank is one that involves 1-50 people and has its owner managing the business on a day-to-day basis.

small business

Truly entrepreneurial businesses are characterized by

the novelty in their products, services, or business models.

Small businesses differ from high-growth ventures in that in small businesses

the preferred source of funding is the owner's own money rather than other people's money.

Bootstrapping refers to

using low-cost or free techniques to minimize the cost of doing business.