Chapter 2

13. An entrepreneur's relationships and contacts with others is termed as A. a social network. B. visibility. C. the Golden Rule. D. mutuality.

A. a social network

1. Following the BRIE model in starting a business, the entrepreneur creates a boundary within the environment, setting his firm apart from the rest of the environment. In doing this, the entrepreneur gives the firm a(n) A. identity. B. bootstrap. C. organizational culture. D. network.

A. identity

8. The three general forms of legitimacy that you can develop are based on A. products, people, and organization. B. individuals, teams, and industry views. C. universalism, utilitarianism, and the Golden Rule. D. integration, distribution, and universalism

A. products, people, and organization

3. Those parts of the environment that directly and consistently touch on the firm are called the A. task environment. B. internal environment. C. macroenvironment. D. general environment.

A. task environment

10. Which of the following is a product-based legitimacy indicator? A. Organization size B. Testimonials C. Business network membership D. Internet identity

B. Testimonials

6. The two ways to build social capital are through A. consistency and visibility. B. legitimacy and social networking. C. culture and personal ethics. D. individuals and teams.

B. legitimacy and social networking

9. _____ refers to certification for having met a standard of quality that is consistently evaluated around the world. A. ANSI B. Six Sigma C. ISO D. TQM

C. ISO

4. Which of the following is an example of the general environment? A. The government B. The board of directors C. The economic sector D. Unions

C. economic sector

20. Which of the following is a three-step process that helps people make better and more ethical decisions? A. First principles B. Golden rules C. Ethical decision-making D. Mutuality development process

C. ethical decision-making

11. Having trademarks, service marks, patents, or copyrights are product-based legitimacy indicators of A. certifications. B. customer service. C. intellectual property. D. quality standards.

C. intellectual property

5. All of the following are true of social capital EXCEPT A. it includes characteristics like trust, consistency, and networks. B. it can be accumulated or spent. C. it is not associated with the concept of "goodwill." D. it is capital in the same sense that cash or land can be.

C. it is not associated with the concept of "goodwill"

7. _____ means that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors. A. Visibility B. Flexibility C. Legitimacy D. Modeling

C. legitimacy

12. Which of the following legal forms of organization-based legitimacy indicators would be the least legitimate? A. Corporation B. LLC C. Sole proprietorship D. Partnership

C. sole proprietorship

18. _____ is an approach to operating a firm or a line of business which identifies, creates and exploits opportunities to make a profit in a way that can minimize the depletion of natural resources, maximize the use of a recycled material, or improve the environment. A. Business entrepreneurship B. Economic entrepreneurship C. Sustainable entrepreneurship D. Intrapreneurship

C. sustainable entrepreneurship

15. Which of the following is NOT a key to success in electronic networking? A. Making it easy for people to contact you B. Taking initiative to ask others on the network to link with you C. Taking time to develop networks D. Finding and linking up with network mavens

C. taking time to develop networks

16. When faced with a crisis, what is the first step that a small business owner should follow? A. Get to the scene as soon as possible B. Communicate facts you know C. Appoint one person as the spokesperson D. Admit you are in trouble

D. admit you are in trouble

14. According to the text, what is the most important part of social networking that would make a difference in how you would conduct business every day? A. Asking for help when you need it B. Respecting the other person's time C. Respecting the other person's expertise D. Being willing to reciprocate if asked

D. being willing to reciprocate if asked

17. According to the gold standard for crisis leadership, all of the following are steps to follow in a crisis EXCEPT A. show caring and accountability. B. have one person serve as the firm's spokesperson. C. deal with the crisis quickly. D. desegregate crisis management with the everyday management of the firm.

D. desegregate crisis management with the everyday management of the firm

2. The _____ of a firm consists of those people inside the boundary—the owner, any employees, and any other owners or board members of the firm. A. macroenvironment B. external environment C. operating environment D. internal environment

D. internal environment

19. Green retailing is A. is at the core of exchange in the BRIE model. B. another term for sustainable entrepreneurship taken from the belief that green is the color of a healthy environment. C. minimizing waste and environmental degradation. D. selling products that have a better environmental footprint.

D. selling products that have a better environmental footprint