Management 350 Chapter 2

T or F: New laws and loan programs have evened the field for women and minority owners.

True

The visible behavior a person takes is called a _____________.

action

________ are forms of business-related expertise.

competencies

What two problems do second career entrepreneurs face?

keeping personal finances out of the business, adjusting to the entrepreneurial lifestyle

The fundamental activities common to all business such as sales, operations, and human resources are

key business functions

_____________ professionalization is a situation that occurs when an entrepreneur does nearly everything in the simplest way possible.

minimized

______________ is when an entrepreneur does nearly everything in the simplest way possible.

minimized professionalization

__________ is an intense positive feeling an entrepreneur has toward the business or the idea behind the business.

passion

What are the six key elements of entrepreneurial culture

passion for the mission, passion for the team, passion for the customer, passion for innovation, passion for fairness

___________ entrepreneurs are those who begin their businesses after having left, retired, or resigned from work.

second career

___________ is the process of intergenerational transfer of a business.

sucession

____________ management is the organizing process to help make the most efficient use of the day

time

Passion, perseverance, promotion-prevention focus, and planning style are

aspects of behavior that successful entrepreneurs have in common

The _____ life cycle is the sequence or pattern of developmental stages any firm goes through during its lifespan.

business

______________ is proof that a business is truly owned and operated by a women or minority businessperson.

certification

_______________ is marked by a business being in operation but not yet stable in terms of markets, operations, or finances.

existence stage of the business life cycle

The function of a _____________ is to keep a family involved with the business, while a ________ focuses on running the business.

family council, board of directions

____________ reflects one's determination to start a business and make is a success.

intention

____________ are completely passive, waiting for cues from the environment to determine what actions to take.

reactive planners

_____________ are government contracts earmarked for particular kinds of firms, such as small businesses, minority-owned firms, or women-owned firms.

set-asides

_____________ are profits that are available to be used to satisfy the preferences of an owner in how the business is run.

slack resources

_______________ develop long-range plans for all aspects of a business.

comprehensive planners

_______________ plan around the most important aspect of a business first, act on it, and then consider if additional plans are needed.

critical point planners

_______ competencies are the skills identified with the energy and focus needed to bring a business into existence.

determination

Liability of newness is the set of risks faced by firms

early in their life-cycles that come from owners' lack of knowledge about their business and by customers about the new business

___________ is the first stage of a small business life cycle, where an entrepreneur moves from thinking about starting the business to actually starting a business.

emergence

___________ deals with the actual process of exploiting the opportunity for profit through making sales.

exchange

____________ occurs when a business' founders or owners are passionate about one or two of the key business functions, such as sales, operations, or accounting.

specialized professionalization

A ___________ is a firm in which one family owns a majority stake and is involved in the daily management of the business.

family business

____________ is the third stage of the business life cycle marked by the firm being established in its market, operations, and finances.

success

_________ planners do not really plan. since their actions are dictated by their routines.

habit-based

______________ is defined as a person's way of perceiving and thinking about his/her experience.

cognition

_______ is activities, knowledge, and skills specific to businesses in a particular industry.

industry-specific knowledge

_____________ planners generally start with a goal and look for opportunities to achieve it.

opportunistic

_____________ competencies are the skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business.

opportunity

____________ is a set of shared beliefs, basic assumptions, or common, accepted ways of dealing with problems and challenges.

organizational culture

__________ focus is an entrepreneur's attention to minimizing losses, with a bias toward inaction or protective action to prevent loss.

prevention

________ focus is an entrepreneur's attention to maximizing gains and pursuing opportunities likely to lead to gains.

promotion

What five behaviors do the most successful entrepreneurs display?

promotion/prevention, passion, professionalization, perseverance, planning style

A business action that has been widely adopted within an industry or occupation is known as a _________ business practice.

standard

The ability or skill of an entrepreneur at finding expendable components necessary to a business such as financing, raw materials, and expertise is

resource competencies

___________ conflict is the kind of problem that arises when people have multiple responsibilities, such as parent and boss, and the different responsibilities make different demands on them.

role

______________ business professionalization is a situation that occurs when all the major functions of a firm are conducted according to the standard business practices of its industry.

expert

The ________ stage occurs after the success stage for a small percentage of businesses and is characterized by rapid growth, between five and 10% per month or more.

takeoff