Exam 1 small bus mgmt
Which of the following is true about business-to-business (B2B) transactions?
B2B e-commerce is larger than B2C e-commerce
One of the quickest and simplest ways to screen an idea for business potential is through the
IDEO screen
SCAMPER tool
Substitute Combine Adapt Modify Put to another use Eliminate Reverse
Which of the following is a way to start business with established customers?
a spin-off
Which of the following statements is true about a vision statement?
a tagline or a slogan is a good way to present vision statements
A(n) _____________ plan is a document designed to detail the major characteristics of a firm- its product or service, its industry, it's market, it's manner of operating and its financial outcomes with an emphasis on the firms present and future
business
_________ means taking business away from one's employer
cannibalizing
__________________ is used in the "bird in the hand "strategy where instead of planning a firm and then looking for resources, the entrepreneur first looks at their available resources and thinks about how to use them
effectuation
____________ is the ability to notice things that have been overlooked
entrepreneurial alertness
The sum total of forces outside of an entrepreneur and a firm is called the
environment
The three principles that are absolutely critical in the process of effectual reasoning are: Affordable laws, strategic partnerships, and leveraging contingencies
false
Which of the following is one of the ways to get into small business ownership?
franchising
A great way to start thinking about minimizing waste and environmental degradation is to run ones thoughts about a business through a
green audit
The ________ Rate is the percentage of people who buy out of the total population of people approached
hit
Access problems for women- and minority-owned small businesses crop up most often as discrimination
in financing
One variant of the traditional business plan is the ___________ plan consisting of company organization sections, with revised cover letter, title page, executive summary, and table of contents to reflect the differences
informational
Patents and trademarks are examples of
intangibles
___________ refers to original works like inventions, visual and performing artworks, books, and computer programs
intellectual property (IP)
The life cycle stage in which a product or service is being invented is known as
introduction stage
A ________ is a legal agreement that grants the rights to use a particular piece of intellectual property
license
For part-time businesses, _____ refers to the documented permission from the government to run a business.
licensing
About 53 percent of all small businesses fall into the category of
lifetime/part-time firms
Innovations are far more likely to come from
new, small businesses
A ________ is a narrowly defined segment of the population that is likely to share interest or concerns
niche market
Which of the following is a disadvantage of a start-up?
no revolving credit from suppliers or banks
The metastrategy of a high-growth venture is
novelty
Getting organized and registered-which creates the boundary-is an example of an
operations activity
When considering how to organize the business you are creating, one consideration is ____________, which is related to legitimacy
permenance
_________ refers to the impression of a long-term continuity a business gives others
permenance
__________ ___________ is an organization-based indicator of legitimacy
physical setting
Which of the following pitch deck categories is sometimes given in the form of a users experience?
problem slide
_________ is also called a blue ocean strategy
pure innovation
All entrepreneurs have at least four sets of resources: access to capital; their own skills and abilities; their own knowledge; and their network of friends and business associates
true
Big business often has trouble with innovations, but small, new, businesses are more likely to see new revenues in innovations
true
The ____________ is where do you think about what you need to do to cause your new product or service to come into existence
causal model of entrepreneurship
The ___________ of an organization will be a part of its task environment
competitors
______________ is funding a business online through the collective involvement of others who provide donations, loans, or investments
crowdfunding
Three product-based legitimacy indicators are
customer service, certifications, and testimonials
_________ is not for everyone and every situation
delegation
_______ are aimed at mass markets- situations in which nearly everyone might buy a product or service
differentiation strategies
Crowdsourcing is funding a business online through the collective involvement of others who provide donations, loans, or investments
false
For the successor of the family business, ownership transfer is best accomplished after the death of the founder
false
In entrepreneurship, every good idea is a viable business opportunity
false
In order to make profits from a small business, the company needs to make an actual product
false
The elevator pitch is much shorter than a vision statement a tagline
false
In deciding whether to make the move from part-time to full-time entrepreneurship, the key question is usually
financial
Which of the following is a primary goal for performing due diligence?
finding any inefficiencies, unnoticed opportunities, waste, and mismanagement
Innovation-driven economies are
focused on high-value-added manufacturing but are marked by a very large service sector
A ___________ is a legal agreement that grants rights to use a particular piece of intellectual property. In return, you are required to pay the owner of the license
license
The _________ is the most important element of social capital to customers and supporters of a business, such as bankers, lawyers, and suppliers
owner
Most entrepreneurs start out working ___________ on their new business
part-time
__________ refers to working for 35 or fewer hours a week
part-time
An entrepreneur's ____________ is most likely to inspire key stakeholders like potential investors, employees, or subcontractors
passion
This stage of the business life cycle occurs once the firm is established in its market
success stage
___________ deal with the people who will take over, what roles they will fill, and what supports they will receive
succession plans
In an imitative strategy, an entrepreneur
does more or less what others are already doing
The motivations, cognitions, attitudes, aptitudes, and behaviors that lead to a propensity To create solutions to problems or seeking opportunities to do something new or better is called
entrepreneurial mindset
An opportunity that makes it possible for a new business to gain a foothold in the market is called an
entry wedge
A situation that occurs when a persons values are in conflict, making it unclear whether a particular decision is the right thing to do is considered an
ethical dilemma
Taking products and services made in your home country and selling them in other countries is called
exporting
The general environment is part of the _________ environment
external
________ is the general name for the line of product or service being sold, or the firms in that line of business
industry
_____ is the idea and actions that explain how a firm will make its profits
strategy
Selling the product or service in a limited area, for a limited time is known as
test marketing
Business plans are essential for external legitimacy and internal understanding
true
Every business faces risks in the real world, so every business plan needs to spend some time addressing them
true
For corporations, certification for businesses owned by women or minority is handled by organizations that are not affiliated with the government or big business
true
Founders of small businesses often find it very difficult to give up decision-making authority to family members
true
Uber and Airbnb are examples of
unicorns
Getting the business organized and registered is an example of ________ competency
boundary
Key business functions are activities common to all businesses such as sales, operations, accounting, finance, and Human Resources.
true
Gaining legitimacy in small businesses is especially difficult for entrepreneurs seen as "different" — women, minorities, home-based businesses, or businesses started by young people
true
One of the three ways in which passion is displayed is by persistently focusing on the business
true
One of the ways to practice the business of innovation is to invite someone who is never included before in a meeting for solving your problem
true
Several models exist for the lifecycle of the small business firm. Each divides the stages a bit differently
true
The absolute highest price that a buyer would be willing to pay is called the "point of a difference" in the negotiation process
true
The competency suggested by boundary relates to the key business functions, and include sales, operations (also called production), accounting, finance, and Human Resources.
true
The concerns of bankers are cash flow and cash cycle, assets/collateral base, and long-term prospects
true
The feasibility of an idea is the extent to which it is viable and realistic
true
When studying the business costs of ethical failures in large businesses, the more damaging costs receive less executive attention
true
The major ways to cope with competitive pressures is by undertaking some combination of strategic actions and tactical actions
truw
______________ is an ethical model that suggest people get their ideas of right and wrong from their family, religion, education, and community
universalism
In an attempt to become more innovative, a major pitfall that business owners are most likely to become victim to is
using the first good idea as a business opportunity