Small Bus. Management Exam 1

1. Which of the following is true of entrepreneur alertness?

It allows entrepreneurs to notice things that have been overlooked

1. Market scope is important because:

It helps business owners to decide where to focus their sales and advertising efforts

1. Which of the following is an advantage of the SCAMPER tool?

It helps entrepreneurs to come up with alternative solutions

1. ____ is a certification standard from the US Green Building Council for buildings that are environmentally friendly.

LEED

1. A ___ is a business term for the population of customers for a business owner's products or services

market

1. Which of the following is a traditional problem facing new ideas?

The idea cannot be economically made into a product or service

1. The goal of any small business is to manage external relations in order to minimize social capital

false

1. Standard industrial classification systems (SIC) codes have ___ digits

four

1. The single greatest hurdle to a successful start-up is obtaining and maintaining sufficient cash to support both operations and growth. Which of the following is needed by a successful start-up to overcome this hurdle?

high margins

1. Which of the following is considered an advantage of stand retailing?

minimum startup investment

1. Which of the following is a tactical action?

new distribution channels

1. A ___ is a narrowly defined segment of the population that is likely to share interests or concerns

niche market

1. Josh, an electronics retailer, noticed that the e-commerce business was booming. He started an online shopping wbsit to take advantage of this surge in business. as a result, his business attracted more customers from all across the country. This reflects Josh's __

Entrepreneurial alertness

1. Correlation is one of the four steps in the process for organizing creative thnking developed by Graham Wallas

False

1. ___ refers to a preliminary run of a business, sales effort, program, or website with the goal of assessing how well the overall approach works and what problems it might have.

pilot test

1. The owner of Elixir Force Inc. received the most prestigious corporate award and was also entitled as "the most outstanding new entrepreneur of the year" in the context of people-based legitimacy, this is typically an indicator of:

public recognition

1. A web page in which entries are posted in reverse chronological order is:

blog

1. ___ means taking business away from one's employer

cannibalizing

1. The measure of how many visitors to a website actually make a purchase is known as:

conversion rate

1. 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 are called ___

external relations

1. Differentiation strategies target a niche segment of the market

false

1. Mutuality is the set of relationships and contacts with individuals and institutions a company establish

false

1. The supra-strategies are designed to work when there are very few small business in an industry, along with many larger firms

false

1. Your magic number si the number of customers you can comfortably provide with your products or services

false

1. ___ is a payment to a licensor based on the number or value of licensed items sold

royalty

1. Which of the following is a way to start business with established customers?

spin-off

1. a business that is created by separating parts of an operating business into a separate entity:

spin-off

1. The product/service component of the feasibility study typically includes which of the following aspects?

stage of development

a new business that has begun from scratch is:

start-up

1. In the SCAMPER tool, the s stands for

substitute

1. Which of the following is an element of a firm's external environment?

suppliers

1. In a ___ the buyer seizes control of the business without permission of all owners

takeover

1. In the context of entry wedges, ___ occurs because government agencies, government sponsored commercial contracts, and big businesses have policies that provide for quotes for buying from small businesses

favored purchasing

1. One powerful but rarely used source of business ideas are:

government agencies

1. Which of the following is not one of the five pillars that hinder innovation?

hiring the wrong people

1. An overall strategic approach in which a firm patterns itself on other firms, with the exception of one or two key areas is referred to as:

incremental innovation

1. As a firm gets more experience, it can often work with fewer mistakes and greater efficiencies, thereby lowering costs. This leads to cost benefit of:

learning

1. ___ refers to searching and capturing new ideas that lead to business opportunities

opportunity recognition

1. Key resource acquisitions, also called bulk asset purchases, are the only way a sole proprietorship may be purchased

true

1. Search and capture of new ideas that lead to business opportunities is called opportunity recognition.

true

1. Second sourcing provides customers with greater certainty of supplies or services

true

1. Serial entrepreneurs is a special term for those owners who start up multiple businesses in their careers

true

1. Small businesses are often the first to try something innovative

true

1. The feasibility of an idea is the extent to which it is viable and realistic

true

1. Which of the following ethical philosophies do quesinots like " What if everyone did what I want to do and what kind of world would that be" best summarize?

universalism

1. Which of the following is essential to the success of all start-ups?

Building trust in one's "story"

1. When an individual buys products like shoes, music, or cell phones online, it is referred to as ___ type of e-commerce

Business-to-consumer B2C

1. ___ is the particular way a firm implements customer benefits that keeps the firm ahead of other firms in the market:

Competitive advantage

1. Documentation and demonstration offered for products are product-based legitimacy indicators of

External supporters

1. ___ is a general approach to website design intended to result in the site being displayed toward the beginning of a search engine's listing for that term.

Search engine optimization

1. The questions on who will be hurt and how much, who will benefit and how much, what does the owner or the firm owe others, and what do others owe the owner and the firm are typically asked when:

The moral dimension of a problem is to be determined

1. Which of the following types of value benefits is most likely to be offered by a product if it helps the community, a group, the environment, or the world?

altruism

1. Most small business are more ___ than ___

imitative; innovative

___ is an organizational life cycle in which established firms must find new approaches to improve the business

retrenchment

1. Strategy is the idea and actions that explain how a firm will make it's profits

true

1. Which of the following is an element of a firm's internal environment?

board of directors

1. Part-time entrepreneurs should separate and balance business and home. This separation and balance is pertinent to which aspect of the BRIE model?

boundary

1. When compared to large business, small business owners start their business typically to take advantage of

An innovative idea

1. _____ means "let the buyers beware" and is a philosophy sometimes used by businesses to put the burden for consumer protection onto a customer.

Caveat emptor

1. Which of the following is an example of e-commerce?

Christopher got shoes delivered at his home after he ordered for it online

1. When looking at the typical start-up strategy of a classic innovator, which of the following statements isn't true?

Innovation only happens during the introduction phase of the cycle

1. Which of the following statements is true bout caveat emptor?

It is often the first line of defense by producers of shoddy merchandise

1. Which of the following is true of entry wedge of second sourcing?

It provides a competitive pressure to ensure that suppliers keep providing the best service and prices

1. Which of the following holds true for product distribution franchising?

It provides the franchise with specific brand named products, which are resold by the franchise in a specified territory

1. The ____ is given by the US gov 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

Malcolm Baldridge National Quality Award

1. Researchers in the field of entrepreneurship and small business believe that ___ behavior is the most basic and important entrepreneurial behavior

Opportunity recognition

1. Following the BRIE model in starting a business, an 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 an ____

Organizational identity

1. To help and prepare small businesses to handle crisis they have been recommended to avoid:

Planning only after the crisis has occurred

1. Small business owners should be scanning their environment looking for upcoming trends. Beyond trend-spotting, the other key scanning ability is to find resources you need from the environment to build your business. the key to identifying resources from the acronym ___ which stands for the different types of resources

Profit

1. One of the quickets and simplest ways to screen an idea for business potential is through the ___-

RBI screen

1. Which of the following statements about small businesses high in social capital is true?

They are given the benefit of the doubt when problems occur

1. All of the following are reasons for the large numbers of home-based business in the US except that:

They generally give customers the strongest sense of legitimacy

1. The strategy for using the pilot test approach is:

To show potential partners that the idea can generate clients

1. ____ target specific industries and professions

Trade magazines

1. Delegation makes sense in two situations. First is when others can do things better than you. Which of the following is the second situation in which delegation makes sense?

When you want your business to operate when you're not present

1. Imitation minus one degree of similarity:

Would be the business equivalent of cloning

1. There are many options if you don't want to start yoru business inside the home. Which of the following isn't one of the options?

a separate room with a door

1. a form of business termination in which the firms' legal or financial obligations are not fully met at closing describes which of the following?

a workout

1. Which of the following is an entrepreneur most likely to implement to make his company more "idea prone"?

a. Redesign the work environment