small business test 1

license

A ________ is a legal agreement that grants the rights to use a particular piece of intellectual property.

True

A business model is described in the last part of the company's background.

cover letter

A one-page document on letterhead introducing the business plan is considered a

Ethics

A system of values people use to determine whether actions are right or wrong is referred to as _______

varriance

A(n) ________ is a permission from a government organization to act differently than what the laws state.

incubation

According to Graham Wallas' description of the creative process, a creative thought includes a(n) ________ stage.

illumination

According to Graham Wallas' description of the creative process, ideas begin to flow in which of the following stages?

true

According to research, without a business plan firms are more likely to close down.

royalty

Adam owns a software development company. He and his team developed and licensed new software that could help many organizations strengthen their web security. Any organization that wishes to use Adam's licensed software would most likely have to pay him in the form of a ____

it needs to be built in places where there is less foot or vehicle traffic.

All of the following are success factors to "stand retail" except that:

monitoring compliance

All of these are business plan concerns of bankers EXCEPT

business plan

All of these are special purpose plans EXCEPT which of these?

Universalism

An ethical model conceived by the German philosopher Immanuel Kant which suggests that there is a code of right and wrong that everyone can see and follow refers to ____

imitative strategy

An overall strategic approach in which the entrepreneur does more or less what others are already doing refers to a(n):

target market

During a feasibility study, the examination of customers you wish to serve and those who would show interest in your product is helpful. This step defines your ____

False

For an existing business, the financial section should report 5-year projections and not the past years since progress forward is what bankers lend you money for.

people based

Having well-known or well-regarded owners, employees, supporters, or spokespeople primarily increases a firm's ________ legitimacy.

using the first good idea as a business opportunity.

In an attempt to become more innovative, a major pitfall that business owners are most likely to become victim to is:

closing

In door-to-door selling, ________ refers to getting the customer to agree to buy.

having a location where there is enough foot or vehicle traffic.

In stand retail, the key success factor for a stand is:

substitute

In the SCAMPER tool, "S" stands for:

networking

Interacting with others in order to build relationships useful to a business refers to __

true

Internal understanding is the extent to which employees know the business' purpose.

ethical delima

Jake is a small business owner of Macho Doors, a manufacturer and installer of garage doors. His business has earned the reputation as a reliable, trustworthy business that makes high quality, long-lasting doors. However, with rising gasoline and wood prices, Jake is finding it hard to maintain the existing quality standards. If he continues with the existing quality standard, his profit margins will go down and he will not be able to hike his employees' salaries; if he inserts panels of lower quality wood the reputation of his business will be lost. The situation that Jakes faces is typically described as a(n) ____

feasibility study

Joe is planning a new mobile restaurant business. He wants to convert an antique bus into a sit-down restaurant with a service window allowing him to serve people within the bus and walk-ups who want to get their food and take it home. Joe is performing some research into his project and is looking at the overall business idea, the product/service, the industry and market, financial projections (profitability), and the plan for the future action. Joe is performing a(n) ____

Lisa is scanning the environment.

Lisa runs a dog grooming business and is always looking for new trends, reading articles, keeping notes, and talking to customers and suppliers about what is needed in the industry. What important function is Lisa performing?

stand retailing

One of the most ancient forms of small business is:

RBI screen

One of the quickest and simplest ways to screen an idea for business potential is through the ___

Government Agencies

One powerful but rarely used source of business ideas are:

hit rate

Out of the total population of people you approach, __________ is the percentage of people who buy.

boundary

Part-time entrepreneurs should separate and balance business and home. This separation and balance is pertinent to which aspect of the BRIE model?

Radical Innovation

Rejecting existing ideas, and presenting a way to do things differently refers to the ________ strategy.

True

Suitable for investors, bankers, and lawyers to read, executive summaries are written in a formal style.

Malcolm Baldrige National Quality Award

The ________ is given by the U.S. Government to businesses and nonprofit organizations that have been judged outstanding in quality leadership; strategic planning; customer and market focus; measurement, analysis, and knowledge management; human resource focus; process management; and results.

owner

The ________ is the most important element of social capital to customers and supporters of a business, such as bankers, lawyers, and suppliers.

Description of the entrepreneurs

The business idea component of the feasibility study includes which of the following aspects?

Mission Statement

The firm's goals and competitive advantages can be described by

external relations

The general description for the processes and skills used in the management of a firm's interactions with people, organizations, and institutions outside of its boundary is called _____

to assess if a business idea can be profitably brought to market.

The goal of a feasibility study is:

False

The marketing plan is the only type of plan that adds material and value to a full business plan.

A separate room with a door.

There are many options if you do not want to start your business inside your home. Which of the following in not one of those options?

magnify

There is much a small business can do to create memorable images and advertising for itself, and it does not need expensive television ads to do it. Which element of SCAMPER is being referred to here?

60 - 100 words

What is an ideal length of an elevator pitch?

combine

When a bookstore starts to sell videos, music, and coffee as well, it uses which of the following elements of the SCAMPER tool?

solution

When building a business model canvas, the ________ is where your offering goes - how you plan to solve the pains or create the gains for your customers.

financial

When deciding whether to take a business from part-time to full-time, the key question is usually ____

Utilitarianism

Which ethical model typically advocates seeking the greatest good for the greatest number of people?

Illegal pyramid schemes

Which of the following activities mimics multilevel marketing?

eliminate

Which of the following aspects of the SCAMPER tools involves searching for opportunities that arise when a person gets rid of something or stops doing something?

Cathy, who does computer repairs, lies to customers about having an office in a business park when she actually works part-time from her home.

Which of the following best describes aggrandizing?

Mandy uses her employer's client list from her full-time job as a house painter to get customers for her own part-time house painting business.

Which of the following best describes cannibalizing?

the cost of entry and exit is low

Which of the following is a reason why more new businesses start on a part-time basis?

It helps entrepreneurs to come up with alternative solutions.

Which of the following is an advantage of the SCAMPER tool?

Christopher got shoes delivered at his home after he ordered for it online.

Which of the following is an example of e-commerce?

Creating a company's own code of ethics

Which of the following is the most appropriate approach to building organization-based legitimacy?

RSS feeds sends whatever web material is specified to subscribers to that feed.

Which of the following is true about RSS feeds?

B2B e-commerce is larger than B2C e-commerce.

Which of the following is true about business-to-business (B2B) transactions?

They question and challenge the way things appear.

Which of the following is true of creative business owners?

It allows entrepreneurs to notice things that have been overlooked.

Which of the following is true of entrepreneurial alertness?

home retail

Which of the following part-time business approaches does the door-to-door model represent?

Innovative companies automatically develop out of innovative business ideas.

Which of the following statements about innovation and building an idea-prone culture is not true?

It is often the first line of defense by producers of shoddy merchandise.

Which of the following statements is true about caveat emptor?

moonlighting

Working on one's own part-time business after a regular job is referred to as:

test marketing

_ is when a firm sells its products in a limited area, for a limited time.

legitimacy

_ means that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors.

harvesting the business plan

__ is NOT an idea that good marketing strategy focuses on.

Executive Summary

__ is a one- to two-page overview of the business, its business model, market, expectations, and immediate goals.

Cannabalizing

__ means taking business away from one's employer.

partner plan

__ provides information on the company and critical risks to prospective business partners.

Trade magazines

__ target specific industries and professions.

sec filling statement

___ is a statement that is not expected in the business plan.

Annual Objectives

___ is not included in the business planning presentation types

reverse

___ price is a minimum acceptable selling price in an auction.

Caveat emptor

____ means "let the buyer beware," and is a philosophy sometimes used by businesses to put the burden for consumer protection onto a customer.

Poisoning the Well

____ refers to creating a negative impression among one's employers' customers.

competitve advantage

_____ is NOT a business plan concern of family and friend investors.

social capital

_____ is best defined as the characteristics of a business, like trust, consistency, and networks that help make business operations smooth and efficient.

True

"When outsiders expect it" is one circumstance under which creating a business plan is absolutely necessary.

aggrandizing

Attempting to make oneself seem more accomplished than reality is referred to as:

social capital

By efficiently managing external relations, small businesses typically aim at creating _____

moonlighting

Cannibalizing is one of the major concerns when ____

Minimum startup investment

Which of the following is considered an advantage of stand retailing?

Bootstrapping

Which of the following is not one of the five skills for managing relations with the environment?

Licensor

A person or organization offering the rights to use a particular piece of intellectual property is referred to as the:

When you want your business to operate when you are not present.

Delegation makes sense in two situations. The first is when others can do things better than you. Which of the following is the second situation in which delegation makes sense?

"Feel"; "Check"

It can take 3000 ideas to yield one commercially viable product. To increase the odds of finding a good idea, the screening process takes all the thoughts from the ________ step of the entrepreneurial process, and puts them through a ___

The opportunities that come as a result of replacing something that already exists

Which of the following is the idea trigger for the "substitute" cue of the SCAMPER tool?

It provides highly variable income.

Which of the following is true of home businesses?

The eBay method of auctioning means one pays a fee for posting his or her product and a sales fee based on the final bid price when the item sells.

Which of the following is true of the eBay website?

Home-based businesses are inexpensive and quick to start.

Which of the following is true with regard to home-based businesses in the United States?

The politics and laws of a country

Which of the following is typically a part of a firm's general environment?

make the process of dealing with the problem as open as possible.

Roller-Tell Inc., a major supplier of components to the automobile industry, has recently confronted a crisis as one of its manufacturing units has been forcefully shut down by the local union. As a result, the company has been unable to meet the customer demands appropriately. As the owner of the business, the most appropriate way for the firm to handle this crisis is to:

its service standards are benchmarked by competitors.

A firm will be recognized for its industry leadership, a product-based legitimacy building characteristic, typically when:

outsourcing

Contracting with people or companies outside one's business to get work done for the business is known as:

Put to other uses

If entrepreneurs realize that all the traditional applications for their products have disappeared and that they have surplus products, which of the following elements of the SCAMPER tool are they most likely to employ?

B2B

In ________ sales, one firm sells to another firm.

intellectual property

Which of the following legitimacy-building features does having trademarks, service marks, patents, or copyrights typically indicate?

business plan

______ is a document designed to detail the major characteristics of a firm.