STS 2830: QUIZ 1
According to the text, small business involves _____ people and has its owner managing the business on a day-to-day basis.
1-50
According to the latest statistics, small businesses have created _____ percent of the new jobs.
75
What percent of firms getting help in incubators were still going at four years?
87
You might see a business in an area that intrigues you because you learn that there is a growing market for this business and you think of a way to expand on the opportunity. Which of the following factors is considered the business idea behind this?
A similar business
Identify the characteristic of a high-tech venture.
Delegation is essential
The energy and focus needed to bring a business into existence relates to which of the following competencies?
Determination
Identify the most numerous and widely available type of firm, ranging from low to moderate levels of innovation and growth.
Economic core sector
Many owners of consulting companies took their own skills and launched businesses by selling those skills to other companies who needed them. This is an example of which of the following factors leading to business ideas?
Education and expertise
Which of the following is a three-step process that helps people make better and more ethical decisions?
Ethical decision-making
Which of the following entrepreneurs employ about 58 percent of America's total workforce?
Family business owners
_____ means the extent to which the idea is viable and realistic, and the extent to which you are aware of internal and external forces that could affect your business.
Feasibility
Which of the following is a characteristic of a small business?
Focus is on efficiency
_____ rewards are what people get from facing and beating or learning from
Growth
. _____ entrepreneurs are owners for a lifetime, sometimes in one business, and sometimes across several firms.
Habitual
Bart appears to express an interest in which of the following careers?
Habitual
Identify the trait which all entrepreneurial personality types have in common.
Hard work
Brad appears to be leaning toward which of the following careers?
Harvest
Which of the following are owners with an exit plan?
Harvest entrepreneurs
The two fastest growing minority groups represent the largest segments of minority business owners. These are
Hispanics and Asians.
This question looks at the specific individuals, groups, or organizations you would approach first to buy your product or service.
How would you define the best initial set of customers?
_____ refers to certification for having met a standard of quality that is consistently evaluated around the world.
ISO
The BRIE model can help an individual deal with one of the biggest hurdles in starting a business, which is
being inactive.
A loner, often socially isolated, a hard worker, a fast learner, and a risk taker seeking wealth represents the profile of a(n)
classic entrepreneur.
The measure of the number of visitors to your Web site who have actually made a purchase from you is known as
conversion rate.
Which of the following statements about certification for women- and minority-owned small businesses is false?
Certification is for every women- or minority-owned small business.
. _____ is a process of producing an idea or opportunity that is novel and useful, frequently delivered from making connections among distinct ideas or opportunities.
Creativity
Which aspect of entrepreneurship refers to being in-tune with one's market?
Customer-focus
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
creative destruction.
According to the gold standard for crisis leadership, all of the following are steps to follow in a crisis EXCEPT
desegregate crisis management with the everyday management of the firm.
If an owner of a fast-food restaurant notices that customers are asking for substitutions of healthier ingredients to food items, she may be motivated to contact her suppliers to ask about getting new ingredients, changing the menu, and increasing the healthy offerings on the menu to keep customers satisfied. This is an example of
entrepreneurial alertness.
B&B Music can be described as a(n)
entrepreneurial team
According to the BRIE model, in order to start a business, you need all of these elements to come together EXCEPT
experience.
According to the text, there are three levels of professionalization. These are
expert, specialized, and minimalized.
For those businesses that do get started, the amount of _____ is what distinguishes the more successful from the less successful firms.
expertise
The ability of business owners to structure life in the way that suits their needs best refers to
flexibility rewards.
The key market knowledge for a small business
focuses on its immediate marketplace and communities.
A prepackaged business bought, rented, or leased from a company is called a(n)
franchise.
All of the following observations are true of the salesperson type of entrepreneur EXCEPT
they are most concerned with their wealth.
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.
two-thirds; 50
Which popular innovation strategy can be just as effective and much more likely in the real world, than business opportunities that result from radical innovations?
Adapting
When faced with a crisis, what is the first step that a small business owner should follow?
Admit you are in trouble
According to Sageworks, in 2008, amid a recession, which of the following represented the most profitable industries for small businesses?
Service industries
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?
Being willing to reciprocate if asked
The U.S. government agency that helps people start business is the
Small Business Administration.
"Why might a cell phone that can play music MP3s be a better approach than a dedicated MP3 player?" pertains to which of the following questions?
Is your product or idea innovative?
_____ means that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors.
Legitimacy
Which of the following personality types is often very risk-averse, preferring to build wealth through careful planning and action?
Managerial entrepreneur
Identify the two hurdles that people need to overcome to move from thinking about owning their own business to achieving it.
Moving from inaction to action and taking the right action.
You assume, as the business owner, that you need to do all the work, make all the sales calls, and solve everybody's problems. This refers to which major pitfall that business owners can become victim to when trying to become more innovative?
Obeying rules that do not exist
_____ entrepreneurs are people who generally have another job that is their primary one.
Occasional
Which of the following relates to the skills necessary to identify and exploit elements of the business environment that can lead to profitable and sustainable business?
Opportunity competencies
This model has the entrepreneur assess whether the situation faced is one that is the same as it has been traditionally or if it is changing.
Opportunity identification process
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?
Potential for growth
_____ is a payment to a licensor based on the number or value of licensed items sold.
Royalty
Scenario: Jamie Johnson and "For Kidz" Taking classes at a local university, Jamie heard a consistent theme from many professors, students, and parents in the community: "There is nothing for children in this rural area." Jamie always liked children and thought of starting a business "For Kidz" targeting children 12 and under. Where can Jamie go to get some help with his business idea?
Small Business Development Center
Which of the following legal forms of organization-based legitimacy indicators would be the least legitimate?
Sole proprietorship
_____ refers to the process of intergenerational transfer of business.
Succession
_____ 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.
Sustainable entrepreneurship
Which of the following is NOT a key to success in electronic networking?
Taking time to develop networks
Which of the following is a product-based legitimacy indicator?
Testimonials
The industry and market component of the feasibility study should include which of the following components?
The competition
Which of the following is an example of the general environment?
The economic sector
Which of the following is NOT a myth about small businesses?
There is no flexibility when you own your own business.
Why are small businesses considered the economic core of society?
They are the most numerous and most widely available type of firms.
What is the goal of a feasibility study?
To assess if an idea can be profitably brought to market.
Which of the following looks like the simplest question but is actually the hardest one?
What is the market and its size?
According to the entrepreneurs studied in PSED, which of the following factors was the most frequently mentioned source that led to their business idea?
Work experience
The future action plan component of the feasibility study includes which of the following elements?
Writing a business plan
An entrepreneur's relationships and contacts with others is termed as
a social network.
Being a contemporary classic entrepreneur, Brad would exhibit all of the following traits EXCEPT being
an average income seeker.
The resource constrained sector
are firms that have lots of innovative ideas but lack the funds to bring them to market.
Scenario: Jamie Johnson and "For Kidz" Taking classes at a local university, Jamie heard a consistent theme from many professors, students, and parents in the community: "There is nothing for children in this rural area." Jamie always liked children and thought of starting a business "For Kidz" targeting children 12 and under. If Jamie gets "For Kidz" up and running, he could be described as all of the following EXCEPT
franchisor.
All of the following are major pitfalls that business owners can become victims of when trying to become more innovative EXCEPT
getting the "bandits on the train."
According to the text, all of the following factors lead business owners to their business ideas EXCEPT
government regulation.
Scenario: B&B Music Bart Barker has always had the talent for playing several musical instruments and has a fabulous voice. Bart has been playing music at family and friends' events for several years. At age 21, Bart is determined to open his own business with his brother Brad who is a business major. Bart is the idea person, whereas Brad is more the contemporary classic entrepreneur. Bart wants to start and own the business as a lifetime venture, whereas Brad already has an exit plan for their business. Despite these differences, the two brothers launch their business B&B Music Inc., with great fanfare. Being an idea person, Bart would not be driven by
great wealth.
Idea people are not particularly driven by _____, but they are driven by _____.
great wealth; having their idea achieve greatness
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)
identity.
A facility which offers subsidized space and business advice to companies in their earliest stages of operation is called a(n)
incubator.
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
informal capital.
Having trademarks, service marks, patents, or copyrights are product-based legitimacy indicators of
intellectual property.
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.
internal environment
Social entrepreneurship
involves creating new charitable and civic organizations which are financially self-sufficient.
All of the following are true of social capital EXCEPT
it is not associated with the concept of "goodwill."
There are certain fundamental activities that all businesses must perform, which are called
key business functions.
The two ways to build social capital are through
legitimacy and social networking.
A _____ is a legal agreement granting you rights to use a particular piece of intellectual property.
license
The firm that obtains the rights to use a particular piece of intellectual property is the
licensee.
People starting high-growth ventures
need to know how to seek and obtain external financing.
Truly entrepreneurial businesses are characterized by _____, in their products, services, or business models.
novelty
Researchers in the field of entrepreneurship and small business believe that _____ behavior is the most basic and important entrepreneurial behavior.
opportunity recognition
The three general forms of legitimacy that you can develop are based on
products, people, and organization.
Rejecting existing ideas, and presenting a way to do things differently refers to _____ strategy.
radical innovation
Scenario: Jamie Johnson and "For Kidz" Taking classes at a local university, Jamie heard a consistent theme from many professors, students, and parents in the community: "There is nothing for children in this rural area." Jamie always liked children and thought of starting a business "For Kidz" targeting children 12 and under. In order to start "For Kidz" successfully, Jamie needs all of the following elements to come together EXCEPT
recruitment.
The ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business such as time, information, location, financing, raw materials, and expertise is called
resource competencies.
Like classic entrepreneurs, small business owners are all of the following EXCEPT
risk takers.
Two challenges typical to family businesses are
role conflict and succession.
Green retailing is
selling products that have a better environmental footprint.
"S" in the creativity tool SCAMPER stands for
substitute.
Those parts of the environment that directly and consistently touch on the firm are called the
task environment.