MGMT 340-chapter 1

The young, job-creating small companies are known as ________. Select one: a. "antelopes" b. "gazelles" c. "aggressive" d. "assertive"

"gazelles"

Which of the following is not a characteristic of a successful working relationship between copreneurs? Select one: a. A clear definition of one partner as "boss" and the other as "subordinate". b. A clear division of roles and authority based on each partner's skills and abilities. c. Complementary business skills. d. Compatible business and life goals.

. A clear definition of one partner as "boss" and the other as "subordinate".

The Internet is an example of a ________ force. Select one: a. economic b. demographic c. technological d. sociocultural

technological

Harvard's Ted Levitt says that creativity is ________ new things, and innovation is ________ new things. Select one: a. seeing; doing b. doing; thinking c. thinking; applying d. thinking; doing

thinking; doing

One form of primary research is ________. Select one: a. library research b. to review published articles c. a focus group d. internet research

a focus group

Entrepreneurs typically possess ________. Select one: a. a set of unique skills that is usually accompanied by advanced degrees in several areas b. a high level of commitment, have a tolerance for ambiguity, are flexible and tenacious c. the ability to easily access capital d. specialized technical abilities

a high level of commitment, have a tolerance for ambiguity, are flexible and tenacious

Industry databases are a good source of ________ research. Select one: a. tertiary b. secondary c. primary d. windshield

secondary

John has come to you for advice on starting a business venture. He wants to know the best way to gain the experience he'll need. You suggest that he ________. Select one: a. just jump in and learn as he goes b. read a small business book c. seek knowledge and experience in the field he wishes to enter d. determine his weaknesses and return to school for a term or two

seek knowledge and experience in the field he wishes to enter

Entrepreneurs who repeatedly start businesses and grow to a sustainable size before striking out again are known as ________ entrepreneurs. Select one: a. serial b. opportunistic c. persistent d. classic

serial

Products or services that may be sought as alternative solutions (e.g., purchasing tax planning software rather than paying a CPA to assist with preparing your taxes) are referred to as ________. Select one: a. rivalry products b. substitute products c. competitive alternatives d. buyers products

substitute products

Capital required to compete in an industry determines ________ Select one: a. bargaining power of suppliers b. threat of substitutes c. threat of new entrants d. bargaining power of buyers

threat of new entrants

The profile of an entrepreneur includes ________. Select one: a. a desire for responsibility and moderate risk b. confidence in the ability to succeed and determination c. a high level of energy, a desire for immediate feedback and a future orientation d. ALL OF THESE

ALL OF THESE

According to the U.S. Small Business Administration, a common delineation of a small business is one that employs fewer than ________ people. Select one: a. 250 b. 500 c. 50 d. 100

100

Small companies are incubators of new sales ideas, products and services and create ________ times more patents per employee than large companies. Select one: a. 10 b. 16 c. 3 d. 5

16

It is estimated that ________ percent of new businesses fail within two years, while ________ percent fail within five years. Select one: a. 51; 31 b. 35; 41 c. 51; 64 d. 21; 51

21; 51

Research shows that the top-performing ________ percent of small companies create 67 percent of the net new jobs in the economy. Select one: a. 90 b. 80 c. 5 d. 10

5

Within five years, ________ percent of new businesses will fail. Select one: a. 45 b. 21 c. 51 d. 65

51

In a survey of members of Generation Z, ________ percent said they would rather save money than spend it. Select one: a. 57 b. 31 c. 25 d. 44

57

Ideally, a focus group should have ________ members. Select one: a. 5-7 b. 16-20 c. 8-12 d. 2-3

8-12

Of the 28 million businesses in the United States, more than ________ percent are considered small. Select one: a. 99 b. 50 c. 75 d. 88

99

Which of the following is not a characteristic of a successful working relationship between copreneurs? Select one: a. Complementary business skills. b. Compatible business and life goals. c. A clear definition of one partner as "boss" and the other as "subordinate". d. A clear division of roles and authority based on each partner's skills and abilities.

A clear definition of one partner as "boss" and the other as "subordinate".

"Verification" refers to ________. Select one: a. All of these b. possibly conducting experiments, running simulations, and test marketing a product or service c. possibly asking questions such as "will it work?" and "is it really a better solution?" d. validating the idea as accurate and useful

All of these

Creativity often involves creating something from nothing. However, it is more likely to result in ________. Select one: a. elaborating on the present b. putting old things together in new ways c. taking something away to create something simpler or better d. All of these

All of these

Entrepreneurs can increase their chances for success if they ________. Select one: a. know their business in depth and develop a solid business plan b. manage their financial resources and understand financial statements c. learn to manage people and keep in touch with how they react to stress and balance their health needs with the needs of the business d. All of these

All of these

Factors that feed the economic boom behind entrepreneurship include ________. Select one: a. demographic and economic factors b. technology and cloud computing c. the shift to a service-based economy and international opportunities d. All of these

All of these

Hiring a diverse workforce ________. Select one: a. helps in cultivating organizational creativity b. allows for different ideas and varying methods of problem solving c. brings in people from different backgrounds, with different cultural experiences, hobbies, and interests d. All of these

All of these

Steps in the patent process include ________. Select one: a. establishing whether it is a novelty b. documenting and verifying the date the idea was first conceived c. searching existing patents d. All of these

All of these

Which of the following is a characteristic of copreneurs? Select one: a. Mutual respect b. Complementary business skills c. A clear division of roles and authority d. All of these

All of these

Which of the following is a danger of using a niche strategy? Select one: a. Niches change. b. Niches can go away. c. Entering a niche requires adaptability in your initial plan. d. All of these

All of these

Which of the following is/are true regarding business plans? Select one: a. Provide a pathway to success. b. Allow entrepreneurs to replace faulty assumptions with facts before making the decision to go into business. c. Create a benchmark against which entrepreneurs can measure actual company performance. d. All of these

All of these

Which of the following sets of experiences may enhance individual creativity? Select one: a. Travel and recognize the creative power of mistakes and accidents. b. Notice what is missing. c. Journal and listen to people and customers. d. All of these

All of these

Which of the following statements concerning small businesses and international markets is false? Select one: a. Small companies comprise 97 percent of all businesses engaged in exporting, yet they account for only 30 percent of the nation's export sales. b. Because exporting is so complex and requires a company to have so many international experts on staff, exporting is not feasible for small businesses. c. Although terrorism and global recession have slowed the growth of international trade somewhat, global opportunities for small businesses have a long-term positive outlook. d. Although the U.S. is an attractive market, approximately 95 percent of the world's population lives outside its borders.

Because exporting is so complex and requires a company to have so many international experts on staff, exporting is not feasible for small businesses.

________ is the process of finding creative ways to exploit opportunities to launch and grow businesses with limited resources. Select one: a. Leveraging b. Undercapitalizing c. Bootstrapping d. Prototyping

Bootstrapping

Which of the following was not identified as one of the suggestions for small business success? Select one: a. Manage your financial resources and understand financial statements. b. Develop a business plan as you grow your business. c. Learn to manage people successfully. d. Know your business in depth.

Develop a business plan as you grow your business.

Which of the following is not a macro force that creates change in industries? Select one: a. Entry barriers b. Sociocultural c. Economic d. Technological

Entry barriers

Having access to capital is called entrepreneurial readiness. Select one: True False

False

Secondary research includes customer surveys. Select one: True False

False

Small companies that have expanded successfully into foreign markets tend to rely on all but which of the following strategies? Select one: a. Forge alliances with local partners. b. Focus on many countries initially. c. Research foreign markets thoroughly. d. Utilize government resources designed to help small companies establish an international presence.

Focus on many countries initially.

Which of the following is not a question to ask to evaluate an industry? Select one: a. What threats does the industry face? b. How large is the industry? c. How fast is it growing? d. How sparse is the industry?

How sparse is the industry?

The focus of which of the following step in the creative process is to transform the idea into reality? Select one: a. Implementation b. Illumination c. Preparation d. Verification

Implementation

Which of the following is not a barrier to entry? Select one: a. Capital requirements b. Large number of buyers c. Specialized knowledge d. Access to distribution channels

Large number of buyers

Which hemisphere of the brain is responsible for language, logic, and symbols? Select one: a. Right hemisphere b. Lateral hemisphere c. Left hemisphere d. Intuitive hemisphere

Left hemisphere

Which hemisphere of the brain processes information in a step-by-step fashion? Select one: a. Left hemisphere b. Right hemisphe c. Intuitive hemisphere d. Lateral hemisphere

Left hemisphere

________ is a graphical technique that encourages thinking on both sides of the brain, visually displays the various relationships among the ideas, and improves the ability to view a problem from many sides. Select one: a. Prototyping b. Groupthink c. Brainstorming d. Mind mapping

Mind mapping

________ percent of all U.S. businesses are family-owned and managed. Select one: a. Fifty b. Ninety c. Seventy d. Twenty-five

Ninety

According to Porter's 5-forces model, a substitute for Coca-Cola, the carbonated cola drink, would be ________. Select one: a. Pepsi b. Dr. Pepper c. bottled water d. Mountain Dew

Pepsi

Which hemisphere of the brain is responsible for the body's emotional, intuitive, and spatial functions? Select one: a. Logical hemisphere b. Vertical hemisphere c. Right hemisphere d. Left hemisphere

Right hemisphere

________ lateral thinking is somewhat unconventional and unstructured. Select one: a. Logical b. Left-brained c. Right-brained d. Systematic

Right-brained

Which of the following is NOT one of the forces driving the entrepreneurial trend in our country? Select one: a. Shift away from a service economy. b. International opportunities. c. E-commerce and the World Wide Web. d. Independent lifestyle.

Shift away from a service economy.

Which of the following statements about women-owned businesses is false? Select one: a. The number of women-owned businesses is growing slower than the national average. b. Women own about 28 percent of all privately-held businesses in the U.S. c. The businesses women start tend to be smaller than those men start. d. Women-owned companies are far less likely to attract equity capital investments as those that men start.

The number of women-owned businesses is growing slower than the national average.

Driving around and observing competition is called "windshield" research. Select one: True False

True

Osterwalder and Pigneur found that most entrepreneurs use a visual process, such as diagramming their business on a whiteboard, when developing their business ideas. Select one: True False

True

Using focus groups is an example of primary research. Select one: True False

True

Which of the following is not one of the ways entrepreneurs can stimulate their own creativity and encourage it among their workers? Select one: a. Provide creativity training. b. View challenges as problems. c. Encourage curiosity. d. Develop a corporate culture that both fosters and rewards creativity.

View challenges as problems.

An entrepreneurial "secret" for creating value in the marketplace is ________. Select one: a. creating new products and services b. applying lessons learned from history c. learning by doing d. applying creativity and innovation to solve problems

applying creativity and innovation to solve problems

Small companies ________. Select one: a. are the leaders in offering training and advancement opportunities to workers b. are concentrated in the manufacturing and retail sectors c. account for approximately 10 percent of the nation's GDP and 25 percent of business sales d. created fewer jobs than big companies in the last decade

are the leaders in offering training and advancement opportunities to workers

Entrepreneurs may find benefit from the Internet due to its potential ________. Select one: a. only if the entrepreneur has a high level of technical abilities b. as a relatively low-cost solution to expand its revenue-generating abilities c. to take all pressure off other attributes of the business venture d. if the organization is willing to invest millions of dollars in this effort

as a relatively low-cost solution to expand its revenue-generating abilities

The primary purpose of the five forces matrix is to ________. Select one: a. assign values to each of the five elements b. provide a graphic c. list the five forces in rank order d. assess the five forces as compared to a standard value

assign values to each of the five elements

Switching costs, the number of buyers, and if the items represent a relatively small portion of the cost of finished products are key considerations regarding the ________. Select one: a. rivalry among companies competing in the industry b. threat of new entrants to the industry c. bargaining power of buyers d. bargaining power of suppliers

bargaining power of buyers

The ability to apply creative solutions to problems and opportunities to enhance or to enrich people's lives is called ________. Select one: a. creative thinking b. entrepreneurship c. creativity d. innovation

innovation

The financial feasibility analysis takes these aspects into consideration ________. Select one: a. capital requirements, estimated earnings, and return on sales b. capital requirements, estimated earnings, and return on investment c. capital requirements, estimated earnings, and return on owner's equity d. capital requirements, human resources, and return on investment

capital requirements, estimated earnings, and return on investment

Generally, an industry is more attractive when ________. Select one: a. the industry is growing at a fast pace b. competitors are similar in size c. the number of competitors is large d. the opportunity to sell a differentiated product or service is present

competitors are similar in size

Generally, an industry is more attractive when ________. Select one: a. the opportunity to sell a differentiated product or service is present b. competitors are similar in size c. the industry is growing at a fast pace d. the number of competitors is large

competitors are similar in size

Melinda and John Perez, both corporate attorneys in New York City, have grown tired of their lengthy daily commute, the stress of their jobs, and the overbearing policies of their employers. They have decided to leave their six-figure jobs and together open a guide service in Wyoming. Melinda and John are examples of ________. Select one: a. copreneurs and serial entrepreneurs b. corporate castoffs and copreneurs c. corporate castoffs and corporate dropouts d. corporate dropouts and copreneurs

corporate dropouts and copreneurs

An entrepreneur is one who ________. Select one: a. creates a new business concept for the purpose of achieving profit and growth by assembling the necessary resources to capitalize on identified opportunities b. understands the process of developing an idea and does not need to understand what it means to bring that idea to a viable business concept c. is willing to attempt to implement a business concept and then give up if it does not meet immediate expectations d. knows that the concept they are about to develop will result in a profitable business

creates a new business concept for the purpose of achieving profit and growth by assembling the necessary resources to capitalize on identified opportunities

Women in business still experience ________ as they attempt to break the "glass ceiling." Select one: a. discrimination b. opportunities c. ease of navigation d. success

discrimination

Asking the question, "Is this idea right for me?" is part of the process of assessing ________ feasibility. Select one: a. business b. financial c. entrepreneur d. All of these

entrepreneur

"Copreneurs" are defined as ________. Select one: a. entrepreneurs that work part-time b. entrepreneurial couples that work together as co-owners of their business c. those entrepreneurs that will eventually combine their business with another venture d. highly successful entrepreneurs with prior company experience and background

entrepreneurial couples that work together as co-owners of their business

One of the most significant economic developments in recent business history relates to the ________. Select one: a. growth of blue-chip corporations b. development of Pacific Rim countries c. additional employment opportunities offered by government institutions d. entrepreneurial spirit

entrepreneurial spirit

The only people who ________ are those who never do anything or never attempt anything new. Select one: a. prosper b. profit c. succeed d. fail

fail

One hallmark of successful entrepreneurs is the ability to ________. Select one: a. overlook past successes b. repeat the same mistake c. be willing to gamble d. fail intelligently

fail intelligently

A(n) ________ group involves enlisting a small number of potential customers to get feedback on specific issues about the company's product or service. Select one: a. Delphi b. focus c. industry d. trade

focus

When developing creative solutions to modern problems, entrepreneurs must ________. Select one: a. pay attention to limiting factors b. go beyond merely using whatever has worked in the past c. limit the creative process to only profitable ventures d. remember what has worked in the past

go beyond merely using whatever has worked in the past

The demographic attributes of successful entrepreneurs are ________. Select one: a. uncertain and have not been fully studied or analyzed b. are key predictors that determine how long the business will survive c. highly diverse relating to age, gender, and ethnicity d. limited to specific ages, genders, and ethnic backgrounds

highly diverse relating to age, gender, and ethnicity

The left brain is guided by ________. Select one: a. intuitive thinking b. linear, vertical thinking c. kaleidoscopic, lateral thinking d. asymmetrical thinking

linear, vertical thinking

For Under Armour, its top 10 suppliers manufacture less than half of its products. To Under Armour, supplier power is likely to be ________ Select one: a. low b. moderate c. high d. significant

low

The primary cause of small business failures is ________. Select one: a. the lack of capital b. improper inventory control c. poor location d. management mistakes

management mistakes

Small companies that operate globally from their inception are referred to as ________. Select one: a. micromultinationals b. international companies c. global companies d. intrapreneurial ventures

micromultinationals

Most startup companies can expect to need ________ capital than they anticipate. Select one: a. the same b. less c. within 10% of the d. more

more

The majority of new business owners work ________. Select one: a. fewer than 40 hours per week b. more than 80 hours per week c. more than 40 hours per week d. more than 70 hours per week

more than 40 hours per week

Entrepreneurs who start businesses because they cannot find work any other way are ________. Select one: a. opportunity entrepreneurs b. corporate cast-offs c. serial entrepreneurs d. necessity entrepreneurs

necessity entrepreneurs

International opportunities are ________. Select one: a. now within the reach of entrepreneurial businesses and may present significant opportunities b. risky and do not merit serious consideration by the entrepreneur c. clearly out of reach for entrepreneurial businesses d. highly limited for entrepreneurs

now within the reach of entrepreneurial businesses and may present significant opportunities

Entrepreneurs tend to be overly ________ and commonly misjudge the ________ requirements of going into business. Select one: a. optimistic; professional b. pessimistic; financial c. optimistic; financial d. optimistic; personal

optimistic; financial

The enactment of the Affordable Health Care Act in 2010 is an example of a ________ change. Select one: a. technological b. economic c. political and legal d. demographic

political and legal

Conducting ________ research involves collecting data firsthand and analyzing it while ________ research involves gathering data that has already been complied and is available. Select one: a. primary; secondary b. primary; industry c. product; secondary d. secondary; primary

primary; secondary

Most entrepreneurs believe that ________ is what matters most, but ________ is the most important financial resource for a small business owner. Select one: a. cash; profit b. profit; cash c. profit; inventory d. inventory; cash

profit; cash

The premise behind ________ is that transforming an idea into an actual model will lead to improvements in its design. Select one: a. inventions b. mind-mapping c. rapid prototyping d. brainstorming

rapid prototyping

The majority of small companies are concentrated in the ________ and ________ industries. Select one: a. retail; service b. wholesale; retail c. manufacturing; service d. manufacturing; retail

retail; service

The recent number of job losses in large corporations compared to the jobs created by small business has changed the perception of ________ for launching a new business. Select one: a. prestige b. financing opportunities c. short-term potential d. risk

risk

All of the following represent barriers to creativity that entrepreneurs impose upon themselves except ________. Select one: a. blindly following rules b. being too practical c. searching for more than one answer d. focusing on being too logical

searching for more than one answer

Collecting demographic data from The Statistical Abstract of the United States is an example of ________ research. Select one: a. secondary b. windshield c. tertiary d. primary

secondary

Nearly ________ of entrepreneurs start their businesses between the ages of 20 and 44 and the number of Americans in that age range currently is ________ . Select one: a. two-thirds; 85,000 b. one-fourth; 85 million c. three-fourths; 103 million d. one-half; 8.5 million

three-fourths; 103 million

Employees must be given the tools and resources they need to be creative. One of the most valuable set of resources is ________. Select one: a. establishing rules and guidelines b. setting limits and providing challenges c. reinforce traditional problem solving methods d. time, support and encouragement

time, support and encouragement

Testing with prototypes is known as beta tests. Select one: True False

true

Time out of cash is one of the four major elements included in a financial feasibility analysis. Select one: True False

true

Potential drawbacks of entrepreneurship may include ________. Select one: a. uncertainty of income, risk, long hours, and high stress b. certainty of income, risk, long hours, and high stress c. uncertainty of income, risk, long hours, and the immediate accumulation of wealth d. uncertainty of income, risk, easy hours, and frequent vacations

uncertainty of income, risk, long hours, and high stress

All of the following are characteristics of the typical entrepreneur except ________. Select one: a. desire for immediate feedback b. a future orientation c. value of money over achievement d. confidence in his/her ability to succeed

value of money over achievement

Getting traffic counts at local competitor outlets is an example of ________ research. Select one: a. focus group b. in-home c. prototype d. windshield

windshield