Chapter 2-ENTR-202: Small Business Entrepreneurs: Characteristics and Competencies

Which of the following are basic methods to help manage time?

123 prioritize Strategize List

Which of the following statements about challenges for women- and minority-owned businesses are correct?

Access to financing is one example of discrimination. Loans for women and minority businesspeople often have a higher interest rate. Minority business loan applicants are turned down at a higher rate.

List

Applications such as Wunderlist and Evernote help individuals in making and maintaining a record of responsibilities.

Family members contribute which of the following?

Capital Support network Employees

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

Critical-point

______ 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

Arrange the developmental stages of a business life cycle in the correct order. (Place the first stage on top.)

Emergence Existence Success Resource maturity Survival

______ is the second stage of the business life cycle marked by a business being in operation but not yet stable in terms of markets, operations, or finances.

Existence

True or false: The growth of Hispanic and Asian US populations has largely driven the 43% growth rate in minority business ownership.

False

True or false: In comparison with personality characteristics, sociological characteristics have little or no effect on entrepreneurs.

False. Entrepreneurs can be as strongly affected by their sociological characteristics as by their personality characteristics. These sociological characteristics are derived from the social groups to which these entrepreneurs belong.

Which of the following statements about the business life cycle are correct?

Knowing the life cycle stages can help better understand a small business. The key issues, actions, and lessons for each stage are different. There is a lot of predictability in the business growth process.

Which of the following statements about challenges for women- and minority-owned businesses are correct?

Minority business loan applicants are turned down at a higher rate. Loans for women and minority businesspeople often have a higher interest rate. Access to financing is one example of discrimination.

______ 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

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

Success

Which of the following are stages in the business life-cycle?

Success Resources maturity Existence

______ is the process of intergenerational transfer of a business.

Succession

True or false: Organizational culture is a set of shared beliefs, basic assumptions, or common, accepted ways of dealing with problems and challenges within a company that demonstrate how things get done.

True

Which of the following statements about women-owned businesses is correct?

Women are one of the fastest growing groups of businesses in the United States.

Which of the following statements about women-owned businesses are correct?

Women still account for only 4.3% of all small business revenue These businesses are generally in lower income generating service industries Women had a 74% growth rate between 1997 and 2015

Competencies

______ are forms of business-related expertise.

Cognition is defined as

a person's way of perceiving and thinking about his or her experience.

In the simplest form of discrimination known as _____, women- or minority-owned firms are not offered the same opportunities as those offered to white male-owned firms.

access

Reactive planners

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

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

business

The success stage of the business life cycle is

business life cycle marked by the firm being established in its market, operation, and finances.

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.

The motivations, cognitions, attitudes, aptitudes, and behaviors that lead to a propensity to create solutions to problems or seek opportunities to do something new or better make up a(n)

entrepreneurial mindset

Opportunistic planners

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

A family business is a firm

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

The existence stage of the business life cycle is

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

Growth rewards

matches Choice The rewards individuals earn from facing and beating challenges

Liability of ______ is the set of risks faced by firms early in their life cycles that comes from a lack of knowledge by the owners about the business they are in and by customers about the new business.

newness

Intention reflects

one's determination to start a business and make it a success.

Slack resources are

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

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

standard

The emergence stage is the first stage of the small business life-cycle,

where an entrepreneur moves from thinking about starting a business to actually starting a business.

Standard business practices are actions that have been widely adopted

within an industry or occupation.

Delegate

A person appointed or elected to represent others

Which of the following statements about liability of newness are correct?

A solution for it is developing an extensive social network. It is due to potential customers having little knowledge about a new business. It is a problem in the existence stage of the business life-cycle.

123 Prioritize

Individuals rank responsibilities or tasks according to their importance and due date.

Which of the following are entrepreneurial behaviors that most successful entrepreneurs display? (Check all that apply.)

Planning style Passion Promotion/prevention focus Perseverance Professionalization

Flexibility rewards

The capacity of business owners to structure life in the way that best suits their needs

Professionalization

______ is the extent to which a firm meets or exceeds the standard business practices for its industry.

Income rewards

Choice The money earned by owning one's own business

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

Comprehensive

Which of the following statements about role conflict are true?

Decisions should be based on business necessities. It is at its worst when a business owner fails to recognize it. Employees should be treated the same as family members.

______ reflects one's determination to start a business and make it a success.

Intention

Which of the following statements about time management are correct?

It can help meet the challenges of schedule overload Strategizing, delegating, and creating lists can help manage time It can be used to reduce role conflict

Which of the following statements about the takeoff stage are correct?

It is rare that small businesses experience this stage. It entails relearning the processes that led to success, as a growth-oriented firm often needs to do things differently. Business owners must understand the nature and demands of growth and get some control over it.

Which of the following are problems that second career entrepreneurs face?

Keeping personal finances out of the business Adjusting to the entrepreneurial life

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

Opportunistic

Which of the following is one of the key elements of entrepreneurial culture?

Passion for customer. Passion for fairness. Passion for innovation.

Which of the following are one of the two challenges typical to family businesses?

Role conflict, Succession

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

Second career

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

Slack

Which of the following statements regarding succession are correct? (Check all that apply.)

Succession plans deal with the people who will take over, what roles they will fill, and what supports they will receive A family council can help in the succession process Only a small number of businesses have a family member to take over the firm

Which of the following are examples of models that explain and measure the entrepreneurial mindset? (Check all that apply.)

The Gallup Organization's Builder Profile 10 (BP10) The Allan Gray Orbis Foundation's Mindcette survey

Which of the following statements regarding professionalization are correct?

There are three levels of professionalization: expert, specialized, and minimalized business. Professionalized businesses follow standard business practice. Businesses that are average or better are considered professionalized.

Which of the following are advantages of a family-owned business?

They are a self-perpetuating source for future small businesses. Families are a major source of funds and personnel. Decision making can be easier and quicker when made by a tight-knit group of family members.

Which of the following statements regarding second career entrepreneurs are correct?

They should treat their money just as an outside investor would. These entrepreneurs should get advice and assistance from experts from SCORE. Sometimes self-confidence is an issue with this group of entrepreneurs.

Which of the following statements about second career entrepreneurs are correct?

They sometimes retire early and decide they want to work rather than retire. They start businesses due to being laid off after corporate mergers and downsizing. About 33% decide they want to become self-employed.

Comprehensive planners

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

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

aspects of behavior that successful entrepreneurs have in common.

Which of the following statements about minority-owned businesses are correct?

Minority-owned businesses account for nearly 29.3% of all U.S. businesses. Both funding and networking initiatives helped minority-owned businesses grow at a fast pace. Minority-owned businesses had a remarkable growth rate of 27% between 2007 and 2012.

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

Time management

All of the following are one of the six key elements of entrepreneurial culture except

passion for suppliers.

Key business functions are

fundamental activities common to all businesses such as sales, operations, and human resources.

Which of the following statements about sociological characteristics are true? (Check all that apply.)

They relate to the social groups to which he or she belongs such as family, gender, religion, and race. Some social groups lack protection, but have powerful influence over entrepreneurs. Some of groups are protected from discrimination by federal laws.

Which of the following are the rewards that are important to small business owners?

Flexibility A livable income

A ______ is a firm in which one people who are related owns a majority stake and is involved in the daily management of the business.

family business