Ent 187 - van vo - midterm 1

the ___ of an organization will be a aprt of its task environment

competitors

____ __ ______ refers to a situation when what is best for ones part time business is different from what is best for his or her full time employer

conflict of interest

the firm that obtains the rights to use a particular piece of intellectual property is referred to as the:

licensee

tammy has just opened a donut shop called the rabbit hole. given that the rabbit hole is in its start-up phase, which of these would be tammy's immediate financial management need?

conserving what little money the business has

when a business enters a phase of rapid growth, one of the challenges it faces is that very few sources of money are available to support its growth

false

with over 8.3 million businesses owned by women, they account for 1/4 of small business revenue nationally

false

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?

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

the RBI screen consists of asking yourself 5 questions to help you screen entrepreneurial. which of the following is not one of those five questions?

who are your competitors?

according to the u.s. small business administration, small businesses generate ___ times the number of patents per employee than do big businesses

16

the most frequently occuring element of the BRIE model is intention

TRUE

the text defines an entrepreneur as:

a person who owns or starts an organization such as a business

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

the challenge of ____ refers to when a woman or minority - owned businesses are simply excluded from the opportunities offered to firms owned by white males

access

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

aggrandizing

orion inc was a small organization with 5 employees. after the 1 year profits were made, the owners decided to invest the profits in expanding the business. this is an example of financing the business using

bootstrapping

thomas has started a new business venture for which he has been using highly economical resources, such as the market research data available in public libraries, low interest funds borrowed from national banks and equipments hired on lease. this technique used by thomas to overcome resource constraints in his start up firm is best known as ___

bootstrapping

according to the BRIE model, ____ sets up a business as a firm

boundary

the competency suggested by _____ relates o the organizational and business processes of a firm

boundary

after being in business for 24 months, paul's auto spare parts company Chromson inc grows to a relatively stable size. which of the following would pauls primary financial managemetn need at this stage?

building owners wealth

in door to door selling, ____ refers to getting the customer to agree to buy

closing

___ is a special set of observational and thinking skills that help entrepreneurs identify good opportunities

entrepreneurial alertness

josh, an electronics retailer, noticed that the ecommerce business was booming. he started an online shopping website to take advantage of this surge in business. as a result his business attracted more customers from all across the country. this reflects josh's:

entrepreneurial alertness

the general description for the processes and skills used in the management of a firms interactions with people, organizations and institutions outside of its boundary is called___

external relations

"s" in the creativity tool SCAMPER stands for summarize

false

as the owner of a business, quickly admitting that the firm is in trouble indicates a lack of accountability

false

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 ____

feel ; check

uncertainty of returns in a business is referred to as:

financial risk

which of the following statements about certification with regard to women or minority owned small business is true?

for those businesses that qualify, certification provides a ready means of access to opportunity and to networks of businesses and government agencies.

the two fastest growing minority groups that represent the largest segments of minority business owners are:

hispanics african americans

small businesses are usually:

imitative in nature

which of the following statements is true about the general environment?

it always needs t be considered in terms of its social supports and institutional supports

which of the following is true of a small business?

it considers sales as more important than marketing

which of the following is true of a high growth venture?

its metastrategy is novelty

which of the following best describes conflict of interest?

jenson misses his deadlines at his full time day job because he works late nights as a part time music producer

which of the following is one of the prime challanges faced by most second career entrepreneurs?

keeping personal finances out of the business

contracting with people or companies outside ones business to get work done for the business is known as:

outsourcing

a business run by the individual who owns it is referred to as an :

owner-managed firm

the amount that revenues exceed expenses is referred to as:

profit

_____ refers to information provided to the government concerning the existence of, name of, nature of and contact information for ones business

registration

____ measure a managements effectiveness in using the invested capital of the business to provide profits

return on investments

which of the following challenges is typical to family businesses?

role conflict and succession

which of the following terms is not one of the four steps in the successful entrepreneurial process?

seek

a persons belief in his or her ability to achieve a goal is called

self-efficacy

the ____ is a U.S government agency that helps people start a business and also provides them support and advocacy

small business administration

which of the following is true with regard to minimalized business professionalization?

the entrepreneur does nearly everything in the simplest way possible

which of the following is true with regard to minorities in small businesses?

the establishment of both public and private funding and networking initiatives has helped to level the business playing field for minority entrepreneurs

the weighted average cost (Wac) refers to :

the expected average future cost of funds

the stage of the business life cycle is characterized by a stable level of sales and profits over several years. the functional areas, the market and the products or services are all being dealt with consistently and efficiently.

the resource maturity stage

which of the following stages of the business life cycle do most small business never go through?

the takeoff stage

____ are the smallest full time business

traditional small businesses

during the start up phase of a small business the emphasis is on conserving what little cash the new business has

true

entrepreneurs get used to a do-it-yourself approach, which can be especially trying for second career entrepreneurs

true

in crafting a feasibility study, th goal is to assess if the idea can be profitably brought to market

true

in making moral decisions, it is possible to find oneself in the legal " right" but still unable to make a viable business decision by persuing legal recourse.

true

most entrepreneurs start out working part time on their new business

true

most small businesses, even part time ones, need to have a website regardless of whether or not they use it for actual sales

true

small businesses are often the first to try something innovative

true

which of the following is an example of a part time business?

dorothy, who works in her small bakery for less than 30 hours a week

____ are considered as part of the internal environment of a firm

employees

_____ refers to the sum total of forces outside of an entrepreneur and a firm

environment

money contributed to businesses in return for part ownership of the business is called:

equity capital

being a small business makes managing organizational culture harder than in larger businesses

false

in deciding whether to make the move from part time to full time entrepreneurship, the key question is usually government regulations

false

in entrepreneurship every good idea is a viable business opportunity

false

in family owned businesses, the board of directors can only be comprised of family members

false

in innovation it is mandaory for a person to be sure how a new idea is going to turn out

false

in order to make profits from a small business, the company needs to make an actual product

false

in the u.s. government programs are the number one source for financing small businesses

false

most businesses run by teams are not family related

false

research suggest that the first good idea entrepreneurs come up with is always the best

false

the goal of any small business owner is to manage external relations in order to minimize social capital

false

the majority of new firms go through similar startup process with those most likely to be successful following a four step process: finance construct promote demonstrate

false

the text outlines five major pitfalls that business owners can become victim to when trying to become more innovative but obeying nonexistant rules is not one of those pitfalls

false

there are only a few good business models available for the new entrepreneur

false

there are two key groups outside ones business with which one must deal - customers and investors

false

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) ___________.

feasibility study

factors such as the ages, races and gender of customers would be an element of the firms ____ environment

general

____ refers to the value of a business that exceeds the sum of the value of al lindividual assets but that cannot be sold separately from the business

goodwill

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

having a location where there is enough foot or vehicle traffic

there are two general sources of gift financing:

institutional and personal

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

lisa is scanning the environment

martins runs a successful house painting business. he runs his business out of his garage which he converted into office space. martin previously worked as a housepainter in another company had good knowledge of how to run a business. after a storm destoryed public properties in his town, he contracted with the mayor to fulfill any painting jobs required during th towns reconstruction. in order to meet this demand and expand business he hired more house painters . according to the bRIE model, which of the following is an example of martins opportunity compretency ?

martin contracting with the mayor to help paint during reconstruction

which fo the following statements about entrepreneurial teams is true?

most entrepreneurial teams are family related

jacon has started a graphic design company called interon graphics. as interon graphics moves into the growth phase, which fo the following would be jacob's dominant financial management need?

obtaining increasing amounts of cash inflows

___ refers to searching and capturing new ideas that lead to business opportunities

opportunity recognition

_____ refers to a set of shared beliefs, basic assumptions, or common, accepted ways of dealing with problems and challenges within a company that demonstates how things get done

organizational culture

following the brie model in starting a business an entrepreneur creates a boundary within the environment, setting his firm apart from the rest of the environment. in doing his, the entrepreneur gives the firm an ___

organizational identify

____ is money from selling part of a business to people who are not and will not be involved in the management of the business

outside capital

one of the 7 key strategies of the entrepreneurial way involves effectuation or an approach used to create alternatives in uncertain environments

true

one of the ways to determine the financial situation of a business is by crafting a business plan

true

one of the ways to practice the business of innovation is to invite someone who has never included before in a meeting for solving a problem

true

people who buy ownership rights but are not part of the management of the business are known as outside equity investors

true

social networking helps build long lasting relationships into a persons day to day business operations

true

succession plans deal with the people who will take over, what roles they will fill and what supports they will receive

true

the business model canvas and the classic feasibility study produce very different results

true

the majority of part time businesses are based in the home

true

the majority of small business start ups are funded by bootstrapping

true

the more time and energy one spends preparing for a part time business, the longer it takes to make a profit

true

using low cost or free techniques to minimize cost of doing business is referred to as bootstrapping

true

when persuing a part time entrepreneurship there are usually 2 major questions: what kind of product or service do you want to offer? how do you want to organize your part time business

true