ETR401 - Chap 1 -19
d
) A facility which offers subsidized space and business advice to companies in their earliest stages of operation is called a(n) A. small business administration center. B. franchise. C. small business development center. D. incubator.
c
) According to the Small Business Administration, about _____ of new firms with employees survive four years, and for owner-only firms this rate is _____ percent surviving four years. A. one-fourth; 30 B. one-half; 75 C. two-thirds; 50 D. two-fifths; 60
a
) According to the latest statistics, small businesses have created _____ percent of the new jobs. A. 75 B. 25 C. 50 D. 95
a
) Entrepreneurship levels in countries such as Germany, Israel, the Republic of Korea, and the United States average the lowest of the A. innovation-driven economies. B. efficiency-driven economies. C. factor-driven economies. D. competency-driven economies.
d
) Resources A. include a business name or government registration. B. refer to moving goods or service to others in exchange for money. C. are the most frequently occurring element of the BRIE model. D. include the product or service to be offered.
b
) The Small Business Administration categorizes a business in the U.S. as small, if it has fewer than _____ employees. A. 50 B. 500 C. 300 D. 1,000
a
) The desire to start a business represents which element of the BRIE model? A. Intention B. Boundary C. Exchange D. Resources
d
) What percent of firms getting help in incubators were still going at four years? A. 50 B. 81 C. 66 D. 87
b
. 5) A(n) _____ is one who profits from a business but is not involved in its day-to-day operations. A. incubator B. absentee owner C. owner-manager D. franchisor
c
A business name or government registration, a phone or e-mail address dedicated to the business, or a specific location for the firm in a home, commercial space, or on the Internet are examples of a(n) A. exchange. B. resource. C. boundary. D. intention.
d
A business owned by an individual or small group is referred to as a(n) A. franchise. B. incubator. C. team-dependent business. D. independent small business.
c
A person who becomes an owner through inheriting or being given a stake in a family business is called a(n) A. founder. B. manager. C. heir. D. buyer.
c
According to Sageworks, in 2008, amid a recession, which of the following represented the most profitable industries for small businesses? A. Manufacturing industries B. Financial services C. Service industries D. Software industries
d
According to the BRIE model, in order to start a business, you need all of these elements to come together EXCEPT A. boundary. B. resources. C. intention. D. experience.
a
Among SMEs, medium enterprises have _____ people. A. 51-500 B. 251-500 C. 1-50 D. 1-20
b
Documentation and demonstration offered for products are product-based legitimacy indicators of A. customer assurance. B. experiential supports. C. customer service. D. quality standards
a
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.
c
People starting high-growth ventures A. require key market knowledge that focuses on their immediate marketplace and communities. B. focus on how to start small, with resources from the owner, family, and friends. C. need to know how to seek and obtain external financing. D. require a key type of knowledge of how to grow on the schedule set by and for the purposes of the owner.
d
Public entrepreneurship A. focuses typically on customer-focus and innovation, bringing new products or services to market, or opening up new markets to your firm. B. involves creating new charitable and civic organizations which are financially self-sufficient. C. requires all four elements, and that is what makes small business so important as the role model for the other forms. D. involves revitalizing government agencies, so it tends to focus on the customer-focus and efficiency aspects of entrepreneurship.
b
Selling brand name merchandise or services is a people-based legitimate indicator of A. attire. B. product/service name recognition. C. business network membership. D. organizational size.
d
Setting technological or service standards adopted by competitors are product-based legitimacy indicators of A. quality standards. B. certifications. C. experiential supports. D. industry leadership.
a
The U.S. government agency that helps people start business is the A. Small Business Administration. B. U.S. Department of Business Development. C. Department of Business Development. D. U.S. Entrepreneurial Administration.
c
This is the degree of attention your target market pays to your idea or organization. A. Efficiency B. Identity C. Mindshare D. Growth
d
Why are small businesses considered the economic core of society? A. They are high growth and high innovation firms. B. They are made up of franchises and multisite firms, who are generally not very innovative, but are designed for high levels of growth. C. They have lots of innovative ideas but lack the funds to bring them to market. D. They are the most numerous and most widely available type of firms.
d
_____ rewards are what people get from facing and beating or learning from challenges. A. Recognition B. Flexibility C. Income D. Growth
a
A part of the external environment made up of sectors of major forces that shape the people and institutions of the task and internal environments is the A. general environment. B. macroenvironment. C. task environment. D. internal environment.
c
A prepackaged business bought, rented, or leased from a company is called a(n) A. incubator. B. imitative firm. C. franchise. D. novelty.
a
According to the Dynamic Capitalism Typology, the glamorous sector A. consists of firms with high growth and high innovation. B. consists of the most numerous and most widely available type of firms. C. consists of franchises and multisite firms, with low to moderate innovation and high levels of growth. D. consists of firms high in innovation but low in growth rate due to a lack of resources.
b
According to the text, small business involves _____ people and has its owner managing the business on a day-to-day basis. A. 100-200 B. 1-50 C. between 200 to 500 D. at least 500
c
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.
b
For entrepreneurs, perhaps the most rapidly growing type of reward is _____ rewards. A. recognition B. flexibility C. income D. growth
d
Identify the characteristic of a small business. A. When the firm is in trouble, it focuses on selling more products/services B. Approach to human resources is to professionalize C. Focus is on effectiveness D. Metastrategy is imitation
c
Identify the set of shared beliefs, basic assumptions, or common accepted ways of dealing with problems and challenges within a company that demonstrate how things get done. A. Trust B. Modeling C. Organizational culture D. Social networking
d
If Jamie gets "For Kidz" up and running, he could be described as all of the following EXCEPT A. founder. B. owner-manager. C. independent small business. D. franchisor.
b
In order to start "For Kidz" successfully, Jamie needs all of the following elements to come together EXCEPT A. boundary. B. recruitment. C. intention. D. exchange.
c
Innovation-driven economies A. are those where entrepreneurship becomes a key way to build the middle class. B. are nations where industrialization is becoming the major force providing jobs, revenues and taxes. C. are focused on high-value-added manufacturing but are marked by a very large service sector. D. are those where entrepreneurship is essential to helping build personal wealth and break the cycle of low-wage jobs.
d
Jamie should be aware that all of the following are myths about a small business EXCEPT A. there is not enough financing to start businesses. B. you need to make something if you are going to make money. C. you can never try again if you fail. D. the biggest hurdle facing an individual considering a business opportunity is inaction
a
Mandarin is a restaurant which has opened recently. People from all over town flock to Mandarin to find out how good it is. This gives a big boost to the restaurant's initial business. But it causes the other restaurants in the area to lose business temporarily. The way in which Mandarin hurts existing restaurants is an example of A. creative destruction. B. efficiency. C. innovative disruption. D. market penetration.
a
Small businesses are A. imitative in nature. B. characterized by novelty. C. described as being unique and distinctive. D. prepackaged businesses you buy or lease from a franchisor.
a
Social entrepreneurship A. involves creating new charitable and civic organizations which are financially self-sufficient. B. involves bringing new products or services to market. C. involves a person or group who owns their own for-profit business. D. involves revitalizing government agencies.
a
The form of entrepreneurship in which a person or group own their own for-profit business is A. independent entrepreneurship. B. social entrepreneurship. C. public entrepreneurship. D. corporate entrepreneurship.
c
These rewards refer to the money made from owning your own business. A. Growth rewards B. Flexibility rewards C. Income rewards D. Performance rewards
a
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.
d
When a small business is first getting started, there is a lot of flexibility in terms of A. ethics. B. finances. C. government regulations. D. roles and expected behaviors.
b
Which factor distinguishes a firm from the process of buying or selling or bartering we all do occasionally? A. Resources B. Boundary C. Intention D. Exchange
d
Which of the following is NOT a myth about small businesses? A. There is not enough financing to start businesses. B. You need to make something if you are going to make money. C. You can never try again if you fail once. D. There is no flexibility when you own your own business.
b
Which of the following is a characteristic of a small business? A. Preferred funding source is other people's money B. Focus is on efficiency C. Approach to human resource is to professionalize D. Delegation is essential
b
Which of the following is a product-based legitimacy indicator? A. Organization size B. Testimonials C. Business network membership D. Internet identity
c
Which of the following is a reward that is rarely mentioned by entrepreneurs? A. Building great wealth B. Flexibility C. Continuing a family tradition in business D. Personal growth
c
Which of the following is an organization-based legitimacy indicator? A. Testimonials B. Intellectual property C. Legal form D. Attire
b
Which of the following is at the core of exchange in the BRIE model? A. The boundary B. The environment C. Identity D. Resources
c
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
a
Which of the following statements about small businesses that are high in social capital is false? A. They are not given the benefit of the doubt when problems occur B. They are more trusted C. They are treated more fairly by regulators D. They are checked up on less
c
Which of the following would be a part of the task environment? A. The owners B. The political-legal sector C. Environmental groups D. Employees
b
_____ is the major component of "goodwill," and can be found on a business's balance sheet. A. Economic capital B. Social capital C. Cultural capital D. Financial capital
c
_____ 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
b
) Identify the type of entrepreneurship which concentrates typically on innovation and customer-focus. A. Public entrepreneurship B. Corporate entrepreneurship C. Independent entrepreneurship D. Social entrepreneurship
a
) Which is the most frequently occurring element of the BRIE model? A. Intention B. Boundary C. Exchange D. Resources
c
) Which of the following refers to the eventual size of the market, which can range from a small, local, or niche market to something used by millions or even billions? A. Innovativeness B. Mindshare C. Potential for growth D. Occupational structure
a
A nation where industrialization is becoming the major force providing jobs, revenues and taxes, and where minimizing costs while maximizing productivity is a major goal is a(n) A. factor-driven economy. B. efficiency-driven economy. C. innovation-driven economy. D. dynamic-driven economy.
a
A nation where the major forces for jobs, revenues and taxes come from farming or extractive industries like forestry, mining, or oil production is a(n) A. factor-driven economy. B. efficiency-driven economy. C. innovation-driven economy. D. competency-driven economy.
a
According to the U.S. Small Business Administration, small businesses generate _____ the number of patents per employee than big businesses. A. 13 to 14 times B. about twice C. 40 to 50 times D. about half
a
According to the text, the goal of any small business owner is to A. manage external relations in order to create social capital. B. make sure the customer knows about the details of its products. C. generate alternatives that could meet ethical, legal, and economic goals. D. to keep track of social and business contacts.
b
Achieving _____ means building trust among customers and other key groups. A. modeling B. legitimacy C. visibility D. flexibility
a
Following rules and orders, not swearing, and dressing appropriately would be examples of which class of ethical standards? A. Employees should be dependable organizational citizens B. Employees should not do anything that will harm the organization C. Employees should be good to customers D. Employees should protect confidential information
b
Funding invested for a share of a firm or given as loans or credit from family, friends, and other businesses used to help start or grow a firm is known as A. committed capital. B. informal capital. C. mezzanine capital. D. formal social capital.
c
Identify the characteristic of a high-tech venture. A. Owner's own money is the preferred funding source B. Focus is on efficiency C. Delegation is essential D. Sales are more important than marketing
b
The BRIE model can help an individual deal with one of the biggest hurdles in starting a business, which is A. getting resources. B. being inactive. C. setting boundaries. D. making an exchange.
c
The _____ is given by the U.S. Government to businesses and nonprofit organizations that have been judged outstanding in quality leadership; strategic planning; customer and market focus; measurement, analysis, and knowledge management; human resource focus; process management; and results. A. Economic Times Award B. Ron Brown Award C. Malcolm Baldrige National Quality Award D. Deming Prize
a
The ability of business owners to structure life in the way that suits their needs best refers to A. flexibility rewards. B. family rewards. C. growth rewards. D. wealth rewards.
c
Which aspect of entrepreneurship refers to being in-tune with one's market? A. Efficiency B. Creation C. Customer-focus D. Growth
b
Which of the following is an attribute of a high-growth venture? A. When the firm is in trouble, it cuts costs B. Metastrategy is novelty C. High-growth ventures grow when necessary D. Delegation is difficult
c
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
b
Which of the following is an example of the glamorous sector? A. Inventors B. Fortune 500s C. Small businesses D. Franchises and multisite firms
b
Which of the following statements about the task environment is true? A. The economic sector includes the trends and current conditions of the overall market for goods and services. B. This part of the environment is made up of those people the firm deals with every day, as well as important groups you may deal with directly less often, but that are always on your mind. C. The technological sector includes innovation, invention, and modernization. D. It is a part of the external environment made up of sectors of major forces that shape the people and institutions, such as the economic sector or the demographic sector.
d
Which of the following statements about virtual instant global entrepreneurship (VIGE) is false? A. VIGE depends on using Web sites like eBay for products to quickly establish a global presence. B. Many VIGE sites offer procedures, services, and Web page templates which incorporate best practices for global trading. C. The VIGE approach produces large numbers of smaller-scale exporters. D. VIGE sites replace institutional procedures with personal contacts to help even the smallest small businesses go global.
a
) _____ are the offices co-sponsored by states and the federal government, that offer free or low-cost help to existing and potential small businesses. A. Small Business Development Centers B. Small Business Administration Offices C. Research and Outreach Services D. Occupational structures
d
) _____ refers to constant or at least daily management of a business by its owner. A. Franchise. B. Licensing C. Franchising D. Owner-management
c
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
The economic sector includes A. trends in the mix of ages, races, and gender in society. B. innovation, invention, and modernization. C. the availability of equity and credit. D. cultures often based on things such as nationality or religion.
c
_____ 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
b
All of the following are the popular reward types for small business owners EXCEPT A. flexibility. B. power. C. income. D. growth.
c
Given that "For Kidz" will be a small business in a rural area, which of the following characteristics would be true? A. Its focus should be on effectiveness B. The approach to human resources should be to professionalize C. Metastrategy should be imitation D. It should grow when possible
b
Having well-known or well-regarded owners, employees, supporters, or spokespeople is a people-based legitimate indicator of A. public recognition. B. goodwill. C. business network membership. D. service name recognition.
d
Identify the most numerous and widely available type of firm, ranging from low to moderate levels of innovation and growth. A. Resource constrained sector B. Ambitious firm sector C. Glamorous sector D. Economic core sector
a
Identify the two hurdles that people need to overcome to move from thinking about owning their own business to achieving it. A. Moving from inaction to action and taking the right action. B. Financing the business and government regulation. C. Experience from large corporations for needed skill sets and organization abilities. D. Family support and finding the right people for the organization.
d
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
b
The entrepreneurial focus which refers to doing the most work with the fewest resources is A. innovation. B. creation. C. efficiency. D. customer-focus.
a
The general description for the processes and skills used in the management of a firm's interactions with people, organizations and institutions outside of its boundary is A. external relations. B. community planning partnerships. C. organizational culture. D. utilitarianism.
b
The key market knowledge for a small business A. is to know how to seek and obtain external financing. B. focuses on its immediate marketplace and communities. C. is to know how to cash out through the sale of an initial public offering of stock or through the sale of the company to a larger company. D. focuses on the need to know how to dominate the market and grow dramatically and quickly.
b
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.
c
The resource constrained sector A. are firms that have low to moderate levels of innovation and growth. B. are high growth and high innovation firms. C. are firms that have lots of innovative ideas but lack the funds to bring them to market. D. are generally not very innovative, but are designed for high levels of growth.
c
The sequence or organization of jobs and careers in the economy refers to A. franchising. B. creative destruction. C. occupational structure. D. incubators.
a
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.
b
The way newly created goods, services, or firms can hurt existing goods, services, or firms refers to A. franchising. B. creative destruction. C. occupational structure. D. incubators.
a
Truly entrepreneurial businesses are characterized by _____, in their products, services, or business models. A. novelty B. imitation C. experience D. government subsidy
c
Using low-cost or free techniques to minimize your cost of doing business is known as A. caveat emptor. B. sustainable entrepreneurship. C. bootstrapping. D. the billboard principle
a
Where can Jamie go to get some help with his business idea? A. Small Business Development Center B. U.S. Department of Commerce office C. Incubator D. Small Business Administration Center
d
Which of the following best describes a corporate form of entrepreneurship? A. It is a form of entrepreneurship involving the creation of self-sustaining charitable and civic organizations. B. It is a form of entrepreneurship that involves revitalizing government agencies. C. It is a form of entrepreneurship in which a person or group owns their own for-profit business. D. It is a form of entrepreneurship which takes place in existing businesses around new products, services or markets
a
Which of the following includes characteristics of a business, like trust, consistency, and networks that help make business operations smooth and efficient? A. Social capital B. Universalism C. Legitimacy D. Utilitarianism