MGMT 375 Chpater 1 SELU Settoon

What is the difference between a small business and a high-growth venture?

- A small business grows when necessary, whereas a high-growth venture grows when possible

Effectuation is __________.

- An approach used to create alternatives in uncertain environments

What statements about the intention in the BRIE model are correct?

- About 56% of young Americans who think about starting their own business are expressing their intentions - The intent to start a business is the most frequently occurring element

A prepackaged business that is bought, rented, or leased is called a __________ business.

- Franchise

What is NOT one of the 7 key strategies of the entrepreneurial way?

- Scale up

Sven opening his own business servicing private swimming pools. Sven worked hard to build up his customer base, often performing services on last-minute notice, or even on holidays and weekends. Now, Sven has a comfortable number of routine services he provides for his customers and his business is profitable enough to support himself and his family. Which type of business does Sven likely own?

- A traditional small business

A(n) heir is a person who __________.

- Becomes a business owner through inheriting or being given a stake in a family business

When following this strategy of the entrepreneurial way, instead of planning a firm and then looking for resources, the entrepreneur starts with the resources they have and thinks about the best way to use those resources.

- Bird in the hand

A(n) __________ is a person who starts a business, whether it is one of their own devising, or a franchise.

- Founder

What statements regarding self-efficacy are true?

- It's a person's belief in his or her ability to achieve a goal - Entrepreneurs who believe in themselves are more likely to succeed

When someone works for himself or herself her or she is __________.

- Self-employed

__________ is using low-cost or free techniques to minimize your cost of doing business.

- Bootstrapping

According to the BRIE model, a(n) __________ sets a business apart from the general buying, selling, or bartering and sets up the business as a firm.

- Boundary

According to the BRIE model, what is an element that is necessary to start a business?

- Boundary

In the BRIE model, a business name or government registration, a phone or email address dedicated to the business, or a specific location for the firm in a home, commercial space, or on the Internet represents __________.

- Boundary

What are names of groups within the population of entrepreneurs?

- Buyer - Founder - Heir

__________ entrepreneurship is the form of entrepreneurship that takes place in an existing business around new products, services, or markets.

- Corporate

The CSI entrepreneurship or the 3 forms of entrepreneurship are:

- Corporate - Social - Independent

__________ is a theory that says that as one starts pursuing one line of work he or she encounters other opportunities.

- Corridor principle

Mandarin In Town, a Chinese restaurant, opened recently in Burnsville, Minnesota. People from all over the town flocked to Mandarin to find out how good it was. This gave a big boost to the restaurant's initial business, but it caused the other restaurants in the area to lose business temporarily. The way in which Mandarin in Town hurt existing restaurants in Burnsville is an example of __________.

- Creative destruction

__________ refers to the way that newly created goods, services, or firms can hurt existing goods, services, or firms.

- Creative destruction

Which of the following occupations does NOT have a high number of entrepreneurs? - Doctors - Retailers - Child care workers - Real estate agents

- Doctors

Which of the following is a type of entrepreneur? - Founder - Manager - Stockholder - Investor

- Founder

A small business has __________ managing the business on a day-to-day basis.

- Its owner

Which growth strategy is described by the following: The business provided enough profit to supplement an income but not usually enough to live on?

- Lifestyle or part-time firms

What is a reward universally mentioned by entrepreneurs?

- Personal growth

An entrepreneur may be the owner of the business, but his or her occupation depends on __________.

- The type of goods or services the firm produces

What statements regarding traditional small businesses are correct?

- 22% of small businesses fall into this category - They are the smallest full-time businesses - Most often these are one-site businesses

A small business has __________ employees.

- 50 or fewer

What are key ideas when starting a business?

- A plan without action is futile - Successful entrepreneurs learn from other entrepreneurs - Believe in yourself and your abilities - Doing good for others help the entrepreneur feel better about the business and life and helps the business

The "I" in BRIE means intentions and includes the __________.

- Desire to start a business

__________ is the general term for conducting business on the Internet.

- E-commerce

What reward refers to the money made from owning a business?

- Income rewards

Small and medium enterprise (SME) is __________.

- The recognized international term for small businesses

What statements about lifestyle or part-time firms are correct?

- These firms typically have sales of $25,000 a year or less - About 53% of small businesses fall into this category - Growth tends to quickly level off

What statements about serial entrepreneurs are correct?

- They are the reason there are more businesses than entrepreneurs - They are a major force in the U.S. economy - They start many businesses over their life time

Self-employed individuals __________.

- Work for themselves instead of others

__________ is the behavior of continued effort to achieve a goal.

- Perseverance

The "R" in BRIE means resources and includes the __________.

- Products or services to be offered

A(n) __________ is the type of activity a person does regularly for pay.

- Occupation

An independent small business is a firm __________.

- Owned by an individual or small group

Small businesses consider __________ as more important than __________.

- Sales - Marketing

__________ is funding a business online through the collective involvement of others who provide donations, loans, or investments.

- Crowdfunding

__________ are the tangible things or intangible commodities created for sale.

- Goods or services

A(n) __________ is a business run by the individual who owns it.

- Owner-managed firm

T/F: Perseverance is an important characteristic of entrepreneurs.

- True

John owns a small business that does computer servicing. Which of the following would represent boundary as mentioned in the BRIE model in John's computer servicing business?

- The office in which John works

Finn made great surfboards, but he lived in landlocked Indiana. Finn sold the boards through his website and had perfected the art of shipping a surfboard. Finn is using which of the 7 key strategies of the entrepreneurial way?

- Effectuation

An entrepreneur is a person who __________.

- Owns or starts an organization, such as a business

What is true of main street businesses?

- They include lifestyle firms, traditional small businesses, and high-performing small businesses - They are the opposite of "Wall Street" businesses

In the context of pursuing opportunities in other countries, __________ refers to taking services and products made in an individual's home country and selling them in other countries.

- Exporting

__________ economies are nations in which the major work forces for jobs, revenues, and taxes come from farming or extractive industries like forestry, mining, or oil production.

- Factor-driven

What statement is true of the aspect of boundary in the BRIE model?

- Having a boundary helps a firm owner locate and protect the resources he or she has gathered for the business

The 4 generic growth strategies:

- High-performing small business - High-growth venture - Traditional small business - Lifestyle or part-time firm

In the context of pursuing opportunities in other countries, __________ refers to buying products or services from a place that is not an individual's home country and selling them in the individual's home country.

- Importing

Independent entrepreneurship is the form of entrepreneurship __________.

- In which a person or group own a for-profit business

Social entrepreneurship is the form of entrepreneurship that __________.

- Involves the creation of self-sustaining not-for-profit organizations that invest significant profits in charitable activities

What statements about the BRIE model are correct?

- Its 4 elements are boundary, resources, intentions, and exchange - It outlines the activities that need to take place to get the venture going - Its purpose is to help entrepreneurs start their business

What statements about being an entrepreneur are correct?

- Starts one or more businesses - Does well by doing good - Generally has high self-efficacy

What are myths regarding starting a business?

- Students don't have the skills to start a business - There isn't enough financing

A firm's overall growth strategy describes __________.

- The kind of business the owner(s) would like to have, from the perspective of how fast and to what level they would like the firm to grow

The forms of entrepreneurship are __________.

- The settings in which the entrepreneurial effort takes place

What statements about factor-driven economies are correct?

- These nations have little manufacturing and rely on farming, mining, and forestry - Wages tend to be lower in these nations - Examples of these economies are Pakistan, Jamaica, and Venezuela

What statements regarding sustainable or green entrepreneurship are correct?

- These organizations focus on saving the environment - These social organizations focus on creation, efficiency, and have a customer-focus - "Green entrepreneurship" came from the popular belief that green is the color of a healthy environment

What statements regarding small businesses' effects on job creation are correct?

- They are key employers for offering jobs to people with atypical work histories or needs - Start-ups in the first 2 years of operations are responsible for virtually all the net new jobs in the U.S. - They are responsible for creating 65.9% of the new jobs since 2000

What statements about the new opportunities that are generated by small businesses are correct?

- They provide opportunities for people who face problems fitting into existing firms and immigrants who face limitations - They offer communities to enjoy goods and services they may not otherwise, since they adapt to local needs - Small business owners are presented with opportunities to improve their life, wealth, and move upwards in the U.S. economy and society - Small business owners help communities stand on their own through offering a variety of businesses

Which growth strategy is described by the following: sales usually range between $25,000 and $100,000?

- Traditional small businesses

T/F: Small businesses offer surprising opportunities to large businesses and entrepreneurial high-growth ventures.

- True

At the tip of the high-growth ventures are firms called __________, like Uber and AirBnB with valuations of $1 billion or more.

- Unicorns

What statements about crowdfunding are correct?

- Kickstarter.com and Indiegogo.com are 2 popular crowdfunding sites - Crowdfunding sites allow different types of funding including donations, loans, and investments - It is financing that is obtained online through the collective involvement of others

The term "__________" refers to small businesses that reflect the idea that these are the kinds of firms expected to be found on the most important road of a typical American city.

- Main street businesses

Kim found a niche lifestyle business by purchasing used knitting and crochet books from local thrift shops and reselling them on eBay. While American knitters tended to work from online patterns, knitters in other countries still relied on patterns from books. eBay handles all the headaches of shipping outside the U.S., making it easy for Kim to sell her books for a tidy profit. This scenario exhibits which facet of how small businesses are important to our economy?

- New markets

What action is performed during the plan step of the entrepreneurial process?

- Pilot testing

What statements about BRIE's resources are correct?

- Product or service to be offered - Informational resources on markets and running a business - Human resources devoted to the business

Kendra is saving her money because she dreams of opening a doggy day-care and spa. For now, she has a brisk dog-walking service and provides a few dog-grooming tasks, such as brushing and toenail clips. Kendra is following which of the seven key strategies of the entrepreneurial way?

- Scale back

__________ is the form of entrepreneurship involving the creation of self-sustaining charitable and civic organizations or for-profit organizations that invest significant profits in charitable activities.

- Social/sustainable/green entrepreneurship

A nation where industrialization is the major force providing jobs, revenues and taxes, and where minimizing costs while maximizing productivity is a major goal is a(n) __________.

- Efficiency-driven economy

Businesses that are characterized by offering innovative products, services, or business models are often referred to as __________ businesses, while those that imitate what other firms are doing are often called __________ businesses.

- Entrepreneurial, small

What statements regarding starting a small business are correct?

- There are a number of myths about starting a business that stop people - 56% of those aged 15-25 want to start a business - Only 14.7% of 15-25 year olds were taking steps