MGT302 - Exam 1 (Ch.1-5)

Small companies have flourished for all the following reasons EXCEPT: A. they often expand easily in mature industries B. they operate more effectively C. they respond more quickly D. they employ more skilled people

A

The information from the North American Industry Classification System (NAICS) can be found from: A. the Internet B. the library C. the government D. all of these

D

When completing a conceptual map, an entrepreneur needs to visit _________ of the potential competitors. A. 60% B. 50% C. 75% D. 100%

D

When developing a mission statement, a new business founder needs to ensure this characteristic is used to make it effective. A. Universal B. Specific C. Measurable D. All of These

D

Which of the following is NOT a personal motivator to start a business? A. proactive positioning B. practical advice C. driven D. defensive positioning

D

All of the following are questions to ask when looking at additional skills EXCEPT: A. What are your top three personal skills? B. All of These C. What things do you like doing best each day, each week? D. What are the magazines and books you read?

B

All of these are advantages for a small business EXCEPT: A. Owned and ran by the same person B. Economies of scale C. Greater Flexibility D. Respond Quickly to changes

B

Assume you're in the process of conducting a gap analysis. Which of the following statements you hope to find out at the conclusion of your analysis? A. You have fewer financial resources than are required. B.In one business idea, risk is about equal or less than the rewards. C. All of these D. Your business will require more time than you have available because you are a full-time student.

B

Microloans have been in existence for years; they are most commonly made directly to _________ for self-development. A. Hispanics B. Women C. Men D. Young Adults

B

Effective brainstorming has rules that should be followed in order to be most effective. Which of the following is NOT one of the rules of brainstorming? A. generate ideas related to a specific topic or problem B. include friends and family members in the group C. avoid evaluating ideas that are contributed D. carefully examine each possible option before considering another

D

According to the book, which of the following is an example of an economic issue that a new business should consider? A. Elasticity of Demand B. All of These C. Ease of Entry/Exit D. Industry Trends

B

A company should develop its strategy based on: A. resource-based analysis B. resource-based view C. mission statement D. elasticity of demand

C

According to the book, a clear understanding of the business's customers is important because it: A. aids in keeping a strategic distance between itself and its competitors B. helps in focusing on the core customers C. all of these D. provides a way to control expenses

C

According to the book, the greatest source of sustainable advantage is: A. Location B. Staffing C. Personal Relationship w/ Customer D. Relationship w/ Vendors

C

According to the book, there are four specific threats to achieving business success. Which of the following is NOT one of the threats mentioned in the chapter? A. Competitors B. Sales Generation Scheme C. High Degree of Risk D. Operational Financing

C

All of the following are questions to ask when looking at skills gained through education EXCEPT: A. What courses did you take where the material came to you very easily? B. What specialized training do you have in a specific area? C. All of These D. What courses did you take that were particularly enjoyable?

C

All of the following are ways to identify gaps or business opportunities EXCEPT: A. Examine Trends B. Interview Successful Entrepreneurs C. Read Government Documents D. Discuss Opportunities with Family Members

C

An effective industry analysis identifies: A. Substitutes B. Product Pricing C. Potential Customers D. Unusual or Unique Competitive Factors

C

An entrepreneur cannot leave his or her business due to the amount of money that was invested. This is called a(n) _________. A. benchmarking B. exit strategy C. exit barrier D. harvest plan

C

An example of extraordinary resources or capabilities include all of the following, EXCEPT: A. having something customers value enough to pay more for B. all of these C. supplying original auto parts D. having the last corner location at an intersection

C

Entrepreneurial business resources are more _________ than venture capital-backed businesses. A. Inverse Ratio B. Restrained C. Plentiful D. Constrained

D

Mark brings his friends together to generate ideas on his new business. Mark will identify what his skills are, and then ask his friends to generate a list of business ideas that he might start. This is called _________. A. Focus Group B. Gap Analysis C. Business Meeting D. brainstorming

D

Once a business is broadly defined, the next step is to: A. define a larger group of customers B. visit all competitors C. define the fragment markets D. define a narrow group of customers

D

Potential owners should examine all of these specific areas before choosing a business idea EXCEPT: A. family history B. Work Experience C. Education D. Financial History

D

Small businesses act as a catalyst for social change because: A. they are often started when the economy is booming B. owners have a better understanding of how to operate their business C. communities always want to have extra money that can be obtained from having small businesses D. they have the ability to generate profits in markets ignored by large corporations

D

Which of the following is NOT a personality dimension of the Big Five test? A. Agreeableness B. Extroversion C. Conscientiousness D. Individualist

D

Which of the following is an example of the list of items that the entrepreneur should include while visiting and making comparisons to his/her potential competitors? A. size of the facility B. access from the road C. nearby attraction for customers D. all of these

D

Which of the following provides the new business with the opportunity to make more money than the competition? A. industry trends B. external analysis C. market trends D. competitive advantage

D

An example of intangible assets includes all of the following, EXCEPT: A. previous start-up experience B. skill set of founders C. all of these D. unique knowledge of the industry

C

An example of tangible assets includes all of the following, EXCEPT: A. Contacts B. Industry Experience C. None of these D. Education

C

Established businesses are often _________ to buy from a start-up small business. A. Quick B. Sure C. Hesitant D. Proportionate Certain

C

Fragmented markets have: A. Few Potential Competitors B. Many Potential Competitors C. no clear dominant competitors D. clear dominant competitors

C

Glass ceilings in large corporations involve _________. A. unblocked opportunities B. no particular pattern for advancement C. limits to the level of opportunity in the corporate hierarchy D. formal rules

C

Incubators for small businesses include all of the following EXCEPT: A. Space B. Common Receptionist C. Financial Loans D. Legal Expertise

C

Jane has developed a special Italian sauce for pizza. The sauce cannot be easily copied. This is a(n): A. Unorthodox Practice B. Orthodox Practice C. Sustainable Competitive Advantage D. Tangible Asset

C

The greater the debt the business owner is willing to take on, the _________ the risk tolerance. A. Lower B. Same C. Higher D. Inversely Proportionate

C

According to the book, what is the greatest asset of a small business? A. Investor B. Stakeholder C. Manager D. Owner

D

According to the book, which of the following sequences is correct when you want to start a new business? A. Identify the exact competitors within that industry, determine who your potential customers might be, define the industry that interests you B. Identify the exact competitors within that industry, define the industry that interests you, determine who your potential customers might be C. Determine who your potential customers might be, identify the exact competitors within that industry, define the industry that interests you D. Define the industry that interests you, determine who your potential customers might be, identify the exact competitors within that industry

D

After completing a competitive map, an owner can decide to: A. not do anything with the data B. not accept the data and cancel the project C. accept the data and go forward with the business D. all of these

D

All of the following are characteristics of a simple mission statement EXCEPT: A. It can be communicated easily B. It is understandable. C. It is direct D. It is not appropriate

D

All of the following are triggers to start a new business EXCEPT: A. experiencing a mid-life crisis B. being laid-off C. very little to lose financially by a failure D. intolerable risk level

D

All of these are tangible assets EXCEPT: A. Business License B. Computer Systems C. Location D. Industry Experience

D

Before forming a new business, the first thing a founder should do is: A. Higher a lawyer B. Analyze the market C. obtain financial support D. list their potential skill set

D

Characteristics of a small business start-up include all EXCEPT which one of the following? A. designed to take advantage of the skills of the founder(s) B. oriented toward positive cash flow C. self-funded D. over 100 employees

D

During Eisenhower's presidency, who stated, "What is good for General Motors is good for the nation"? A. Henry Ford B. Franklin Roosevelt C. Andrew Carnegie D. Charles Wilson

D

Which of the following is NOT a characteristic of a small business start-up? A. None of These B. Is organized to grow quickly C. Is funded by the founder or close associates of the founder D. Has few, if any, employees

A

Competitors will often _________ their knowledge if your business is not a potential direct competitor. A. Hide B. Share C. Distort D. Not Share

B

The potential entrepreneur needs to consider _________ when starting a new business. A. Prior Experience B. Education C. Rationality D. Capital

A

A competitive advantage in a business could be _________. A. All of these B. Activity of the Firm C. Product Selection D. Location

A

A small business owner can make decisions quicker than a big business because: A. the decision maker is both the owner and the manager of the business B. managers in big businesses have less knowledge than a small business owner C. the owner can delegate the decisions to committees D. all of these

A

A small business owner must possess all of the following EXCEPT: A. A sequential formula B. Necessary Skills C. in-depth understanding of the market D. Passion for starting a business

A

A small business owner plays a _________ critical role than the senior leadership of a large company. A. more B. same C. proportionate D. less

A

A tool to better understand competitors and their capabilities is: A Competitive. B. Resource-based Analysis C. Benchmarking D. Deficit Analysis

A

According to the book, new product ideas for small business start-ups originate from all of the following EXCEPT: A. existing records of a business B. educational background C. personal interests and hobbies D. prior work experience

A

According to the book, there are three elements of entrepreneurial orientation. Which of the following is NOT one of those elements? A. passionate about your product or service B. Risk Tolerance C. Personality Orientation D. Prior Experience

A

According to the book, which of the following is an example of circumstance motivators? A. Individuals are laid off, are demoted, or are forced to take reduced pay by their prior employer. B. Women, who are the fastest growing group of small business owners, who want to achieve their dreams. C. People start their own company because they have a passion for their product or service. D. People start their own company because they want to be their own boss.

A

All of these are harvest plan strategies EXCEPT: A. Franchising B. selling it to a group of investors C. participating in an IPO (public offering of stock) D. selling the business to another firm

A

All of these are intangible items EXCEPT: A. initial financing B. name branding C. industry experience D. education

A

All of these are steps in identifying a sustainable competitive advantage EXCEPT: A. Develop a list of all potential customers. B. Break the list of capability into standard and extraordinary. C. Evaluate the extraordinary resources. D. Develop a list of the business assets.

A

As a result of conducting a gap analysis, the potential entrepreneur proved there was a need for the business. This is called doing the owner's _________. A. Due Diligence B. Basic Market Plan C. Operational Financing D. Business Idea Generation

A

James has the benefit of gaining customer loyalty by being the first company to bring out a new gourmet burger. This is a form of _________. A. first mover advantage B. sustainable competitive advantage C. tangible assets advantage D. leader advantage

A

Some communities offer facilities that house new businesses and provide resources for them. These are called _________. A. Incubators B. Temporary Business Agencies C. Holding Facilities D. Small Business Resource Centers

A

The benefits of _________ and _________ are the insights to provide the owner that performs the activities with a greater chance of success. A. Planning; Analyzing B. Analyzing; Researching C. Coordinating; Planning D. Researching; Planning

A

The process of generating ideas should occur in a(n) _________ environment and not a(n) _________ environment. A. interactive; linear B. linear; process C. process; interactive D. linear; interactive

A

What is the term used to describe a new business that has reached a level where revenue coming into the firm is sufficient to cover expenses? A. Break-Even Point B. No risk level C. Equal Financial Ratio D. Risk Tolerance

A

Which of the following is NOT a characteristic of a sustainable competitive advantage? A. It does not impact the implementation of the mission statement. B. Others cannot immediately copy it. C. It should be maintained in the business as long as possible. D. It requires a deep understanding of customer's needs.

A

Which of the following is NOT a characteristic of firms that are followers? A. They are often more successful than the first mover firms because they do not repeat their predecessor's mistakes. B. These firms can benefit by learning from the first movers. C. They do not get the loyalty of customers. D. They are the firms that enter the market after the first mover.

A

Which of the following is NOT a factor in a small business's success? A. Other people's needs and wants are not as important as the small business owner's. B. Business owners have both the opportunity and the responsibility to lead. C. Small business owners want and need to be independent. D. Business owners need to carefully consider the needs of stakeholders.

A

Which of the following is NOT included in the second column of labeled categories in a gap analysis? A. Inventory Resources B. Finances C. Time D. Non-Financial Resources

A

Which of the following terms describes a plan to exit a small business? A. harvest plan B. general departure plan C. business plan D. entrepreneurial plan

A

Which of these personality tests is based on the philosophy of Carl Jung? A. Myers-Briggs B. Insights C. Big-Five D. Enneagram

A

_________ occur(s) in large companies that have excess resources such as equipment and employees. A. Organizational slack B. Organizational resources C. Limited boundaries D. Unlimited boundaries

A

_________ provides you with the opportunity to make money when other businesses cannot easily copy your advantages. A. Sustainable competitive advantage B. Tangible Assets C. Orthodox practices D. Unorthodox practices

A

Owning a small business provides a means to meet varied demands that individuals face in society. Which of the following is NOT a need mentioned in the text's discussion of how society benefits from small business ownership? A. Entrepreneurs prefer the flexibility to deal with the needs of family and children that business ownership provides. B. Small business owners have greater ability to attract financing from venture capital firms. C. All of these D. Small business owners leave big businesses due to the lack of promotion opportunities.

B

The book mentions that organizations should develop quantitative measures of success. Which of the following are characteristic of quantitative measures? A. They can be difficult to implement. B. They are tied to the strategic and financial goals of an organization. C. They are specific in nature. D. It is not easy to develop them.

B

What are the two things that the new business owner should keep in mind when defining the customer base? A. efficiency and accuracy B. accuracy and diligence C. intelligence and diligence D. thoroughness and efficiency

B

When small businesses compete with large firms, a main disadvantage is: A. lacking flexibility B. operating at a cost level C. analyzing unusual or unique competitive factors D. reaching break-even point quicker

B

Which kind of business is NOT likely to be eligible for a microloan program? A. serving weaving baskets B. telecommunication center C. washing clothes D. meals delivery

B

_________ is (are) a brief statement that summarizes how and where the firm will compete in the industry. A. Goal Statements B. Mission Statements. C. Strategies D. Core Values

B

_________ lead(s) to a condition where a single firm making 100 percent of the product is the most efficient. A. Harvest Plan B. Economies of Scale C. Business Strategy D. Stakeholders

B

Throughout U.S. history, from the 1800s to today, how would you characterize the role and impact of small businesses? A. Small businesses were not impacted much by either economic downturns or increased prosperity. B. The number of small businesses decreased more than big businesses. C. Small businesses have proven to be more resilient than big businesses and have actually helped to improve the economy. D. Small businesses in general had a real roller coaster ride and suffered along with everyone else during the downturns.

C

What are the three means to view business strategy developed by Michael Porter? A. high cost, differentiation, and focus B. high cost, nonsuitable, and focus C. low cost, differentiation, and focus D. low cost, nonsuitable, and focus

C

What percentage of businesses started out as small business? A. 60 B. 50 C. 100 D. 75

C

What term is used to describe Walmart's ability to purchase more advertising space at a lower cost per ad? A. Advertising Bonus B. Buying Bonus C. Economies of Scale D. Volume Excess

C

What term is used to describe the process of systematically examining the difference between what is expected and what occurs? A. difference analysis B. gap slack analysis C. gap analysis D. economic analysis

C

Which of the following is NOT a characteristic of a high-growth venture? A. often hire an experienced president to grow the company B. have a well-developed organization structure C. is designed to reflect the mission of the founder D. usually hire a relatively large number of employees

C

Which one of the following is a huge advantage for small business owners to start a business? A. benefit the stakeholders B. desire to work for others C. desire to be one's own boss D. desire to be efficient and productive

C

Which one of these large companies started out as a small business? A. Hewlett-Packard B. Facebook C. All of these D. Apple

C

_________ aid(s), counsel(s), assist(s), and protect(s) the interests of small business concerns. A. Stakeholders B. Fortune 500 C. The U.S. Small Business Administration D. Medium-Sized Businesses

C

_________ is a rational decision-making process that is constrained by our experiences, history, and culture. A. Logic rationality B. Unbounded Rationality C. Bounded Rationality D. Constrained Rationality

C