BUSG2309 Exam 1

The startup cost for a McDonald's franchise is:

$1-2 million

Choosing a focus strategy has its advantages, but it can also lead to:

Competition from other companies that decide to imitate the same strategy.

Small companies are particularly adept at competing with larger companies when they focus on:

Customer service

___ is acting in ways that are congruent with the values you espouse.

Integrity

Businesses that do not attract investors, but allow their owners to live the way they want to live are called ____ businesses.

Lifestyle

Ideas based on selling existing products or services in a new context are called:

New market ideas.

Which of the following is NOT an element of SWOT analysis?

Obligations

The main difference between lifestyle business owners and entrepreneurs is the way they perceive

Opportunity

New businesses often find it necessary to _____ when the original idea is found to have flaws.

Pivot

Which of the following is the most frequent source of new ideas for a business?

Prior work experience

The ____ commitment of family members refers to ties that extend beyond the financial rewards of being in the business. They include things like solidarity, identification with the family, and a sense of history.

Socioemotional

Which of the following is most likely to result in increased self-confidence in grown children who are thinking about entering the family business?

Succeeding in another firm on one's own.

Family businesses are best described as:

Those in which the strategic direction of the firm is influenced significantly by family members.

Which of the following statements is NOT one of the desirable traits of entrepreneurs listed by Spinelli and Adams?

A domineering attitude

Integrity is best defined as

A general sense of honesty and reliability that is expressed in a strong commitment to doing the right thing, regardless of the circumstances

Which of the following is NOT a cost normally associated with franchise ownership?

A personal vehicle

Problems with nepotism include:

A. Difficulty in disciplining wayward employee/family members. b. The perception by non-family members that family members are treated differently. Answer: A&B

Which of the following are advantages of buying a franchise as opposed to starting one's own business from scratch?

All of the above

The demise of Blockbuster Video stemmed from which of the following vulnerabilities?

All of the above played a part in their demise

Which of the following is MOST descriptive of entrepreneurial passion?

An entrepreneur must have passion, but unchecked passion can be destructive

Social entrepreneurship is best defined as:

Applying already established principles of good business to social problems.

Which of the following is foundational to a company's ability to satisfy its stakeholders?

Being profitable

____ bring together buyers and sellers of businesses.

Business brokers

Tom took great care in investigating his purchase of an existing business. He was engaging in:

Due diligence.

The most accurate statement concerning socially responsible actions and firm profitability is:

Evidence concerning the link between social responsibility and profit is mixed.

A ___ is a meeting of family members held (usually off-premises) to discuss family business matters.

Family retreat

A____ is a preliminary look at how well a business might do if it were opened.

Feasibility analysis

A/n ____ is a business model that involves a business owner who license trademarks and methods to an independent entrepreneur.

Franchise

___ are entrepreneurs who make contractual arrangements with established business chains rather than doing everything themselves.

Franchisers

Which of the following is NOT one of the "Big Three" stakeholders?

Government regulators

Which of the following best describes the difference between integrity and ethics?

Integrity is based on internal principles that guide behavior; ethics is based on external guides to behavior.

___ lies are those that are specifically designed to make a new business look bigger and busier than it really is.

Legitimacy

Entrepreneurs generally think differently about resources than do employee-managers in which of the following ways?

Managers want larger budgets; entrepreneurs work to do more with less.

The definition of a family used in the context of this chapter is:

People bound by a shared history who are committed to a future together.

Michael opened a franchise restaurant within an existing business. He did what is known as:

Piggyback franchising

Sally has opened five successful candy shops and wishes to capitalize on the scalability of her business by franchising. Which of the following should she consider before going that route?

She should do all of the above.

The predator/parasite conflict can best be described as:

The perception by family members who work in the firm that family members who do not work in the firm are benefitting unfairly and the perception by family members who work outside the firm that inside members are benefiting unfairly.

Recent research findings suggest that companies that are successful in making the transition from one generation to the next are:

Those whose new leaders act on their own, take risks, and support innovation.

Spotting trends can come from all of the following EXCEPT

Tinkering with product features alone

Entrepreneurs who start and lead small businesses contribute to the economy in which of the following ways?

a. They make up the overwhelming majority of all businesses. b. They hire nearly half of all high-tech employees. c. They are increasingly going global, representing 97 percent of all exporters. d. All of the above. ANSWER