BUS 165 Exam 1
What statement is true about certification with regard to women- or minority-owned small business is true?
For those businesses that qualify, certification provides a ready means of access to opportunity and to networks of businesses and government agencies.
What is most likely to be a business plan concern for silent partners/ angel investors?
Growth rate
Entrepreneurs who do not plan and prefer to let all actions be dictated by their routines are known as _____.
Habit-based planners
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
Who would have a very short-term approach to planning?
Individuals who look for opportunities to achieve their goal, even if the opportunity isn't the one related to their original goal.
An Internet site designed to introduce and explain a business to others is known as a(n):
Informational website
What legitimacy-building feature does having trademarks, service marks, patents, or copyrights typically indicate?
Intellectual property
What is true of a social entrepreneurship?
It does not include innovation as a key element.
In many franchises the franchiser oversees (or even manages) the selection of location, the construction of facilities, the acquisition and installation of necessary equipment, and the initial inventory with which to open business. Which of the following terms best represents this type of franchising?
Turnkey
What in a typical 12P analysis provides information on competing products?
What is the market and its size?
Working for a very large organization in the tractor manufacturing industry, John always heard complaints from customers about the parts and services aspects of the business. Taking an early retirement, John started his own business to specifically address the many customer complaints he had been hearing. Which of the following is most likely to be the factor that led John to the business idea?
Work experience
A perceptual map is:
a graphic display which positions products according to their scores on important strategic dimensions.
What parts of a business plan are focused on creating new products or services and preparing new technologies, ideas, products or services for the firm's market?
Research and Development
According to the BRIE model, _____ sets up a business as a firm.
boundary
The competency suggested by _____ relates to the organizational and business processes of a firm.
boundary
Adam owns a software development company. He and his team developed and licensed new software that could help many organizations strengthen their Web security. Any organization that wishes to use Adam's licensed software would most likely have to pay him in the form of a(n) _____.
Royalty
Ivan has recently started his new business venture, and he has been busy visiting trade exhibitions, business organizations, electronic business forums, and his previous colleagues in order to build contacts. This will help him use their expertise to the benefit of his business. Ivan is typically working on building a _____.
Social network
According to the SCAMPER tool, a feature that allows customers to order directly from a Web site rather than visiting a store is an example of:
Substitution
T/F- An ethical decision should reflect a decision-maker's real or presumed obligations to people and institutions in his or her firm and in its task environment.
T
T/F- Intellectual property refers to original works like inventions, visual and performing art works, books, and computer programs.
T
T/F- Most small businesses—even part-time ones—need to have a website regardless of whether or not they use it for actual sales.
T
T/F- Tactical actions are competitive responses with low resource requirements.
T
T/F- The UFOC is a standard document franchises use to explain their operations, requirements, and costs to potential franchisees.
T
T/F- When one is new to business and needs to gain basic experience, it makes better sense to first undertake a part-time business.
T
T/F- With the many sales and service businesses built using the Internet, a low-cost, low-risk approach for testing feasibility exists using the concept of a pilot test.
T
In the goal step of the strategic planning process, the key is to:
bring together the decisions that underlie the business plan.
A _____ is an organization that provides financial, technical, and managerial help to start-up businesses.
business incubator
Using _____ as a defense puts the entrepreneur who uses it, and, usually by association, the whole small business community, in a negative light.
caveat emptor
Entrepreneurs who develop long-range plans for all aspects of the business are known as _____.
comprehensive planners
A(n) _____ is a one-page document on letterhead that introduces the business plan and owner to the recipient and indicates why the recipient is being asked to read the plan.
cover letter
In innovation-driven economies:
entrepreneurship levels are in the middle range.
A situation that occurs when businesses have founders or owners who are passionate about one or two of the key business functions, such as sales, operations, accounting, finance, or human resources is known as _____.
specialized business professionalization
The sales plan of a marketing strategy focuses on:
the day-to-day specifics of how sales are achieved.
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.
In an industry life cycle, the shake-out phase ends when:
the rapid die-off of firms stops.
Value benefits are important because:
they lead to higher prices
The strategy for using the pilot test approach is:
to show potential partners that the idea can generate sales
A _____ displays characteristics related to the nature of a product or service itself.
value benefit
The frequency of business starts and stops is referred to as:
volatility
Expert business professionalization is a situation that occurs:
when most aspects of the business meet or exceed the industry's standards.
Imitation minus of degree of similarity:
would be the business equivalent of cloning
Which among the following is a critical-point planner?
Amanda does not have a very long-term approach to planning and she plans only for those business aspects that are of paramount importance.
What will be checked during due diligence when buying an existing business?
Balance sheet
_____ is a value benefit that can come from the products or services that a business owner offers, or from his or her firm's reputation.
Brand
An examination based acknowledgement that the firm is owned and operated as specified is known as _____.
Certification
What is most likely to increase the odds of successes for a start up?
Choosing a business that produces high margins
When a bookstore starts to sell videos, music, and coffee as well, it uses which of the following elements of the SCAMPER tool?
Combine
A law firm needs to present a business plan to government officials. What is most likely to be expected by the officials in the business plan?
Compliance with regulations and laws
According the study of what matters most to entrepreneurs and their businesses, start-up entrepreneurs feel most confident about which of the following aspects?
Complying with local/state/federal regulations
What type of entrepreneurship typically concentrates on innovation and customer focus among all other aspects of entrepreneurship?
Corporate
_____ is a process of producing an idea or opportunity that is novel and useful, frequently derived from making connections among distinct ideas or opportunities.
Creativity
_____ are the cash flows that have been reduced in value because they are to be received in the future.
Discounted cash flows
Many owners of consulting companies took their own skills and launched businesses by selling those skills to other companies or individuals who needed them. This is an example of which of the following sources of business ideas?
Education and expertise
____ is an aspect of entrepreneurship that refers to doing the most work with the fewest resources
Efficiency
What deals with the actual process of exploiting an opportunity for profit?
Exchange
T/F- Entrepreneurship levels are high in efficiency-driven economies
F
T/F- For an existing business, the financials report the last five years of actual data, and then offer ten-year projections for the income, cash flow, and balance sheet.
F
T/F- Market scale refers to the geography of the target market.
F
T/F- Pure innovation is an overall strategic approach in which a firm patterns itself on other firms, with the exception of one or two key areas.
F
T/F- Small-scale entrepreneurs are only allowed to trade in sale of goods and not in trades of service.
F
T/F- The disadvantage of the BRIE model is that it does not mention the management of resources.
F
T/F- The goal of the industry section of a business plan is to focus on customers—who they are, what they are like, and how to plan to get or keep the customers.
F
T/F- Trade name franchising provides an organization through which interdependent businesses may combine resources.
F
What is a true statement for an executive summary?
It is the single most widely distributed written description of a business.
What is true of home businesses?
It provides highly variable income
What is true about a hosting package?
It should include an online website editor so one can make changes to his or her site without buying web-authoring software.
The firm that obtains the rights to use a particular piece of intellectual property is referred to as the:
Licensee
What is considered an advantage of stand retailing?
Minimum startup investment
What is the last step for performing due diligence?
Obtain sufficient capital to purchase and operate the business.
What term refers to a special form of information or demonstration of a product or service?
Proof-of-concept Web site
What term indicates that a product or service is being kept as a trade secret or is protected legally using patents, trademarks, copyright, or service mark?
Proprietary technology
If entrepreneurs realize that all the traditional applications for their products have disappeared and that they have surplus products, which of the following elements of the SCAMPER tool are they most likely to employ?
Put to other use
What is an entrepreneur most likely to implement to introduce changeability into a core business?
Redesign the work environment
What is true with regard to minimalized business professionalization?
The entrepreneur does nearly everything in the simplest way possible.
What is true with regard to minorities in small businesses?
The establishment of both public and private funding and networking initiatives has helped to level the business playing field for minority entrepreneurs.
What is a traditional problem facing new ideas?
The idea cannot be economically made into a product or service
According to the I2P approach to organizing an opportunity screen, which of the following aspect provides information about the specific individuals, groups, or organizations that entrepreneurs approach first to buy their product or service?
The initial set of customers
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 he works
What sections of a classic business plan mentions the legal and hierarchical structures, key personnel, related service providers, and business location?
The organization
What is true of creative business owners?
They question and challenge the way things appear
Justin is a sales executive at a manufacturing company. One of his clients who purchases products from him at a higher price than that quoted by competitors is facing financial problems. Since Justin's promotion depends on his achieving the sales target, he cannot decide whether he should inform his client about the lower prices its competitors are paying. Justin is facing a situation known as _____.
ethical dilemma
What refers the three levels of professionalization?
expert, specialized, minimalized
Amounts and schedules for returns, stability of firm, funds use, and investment are most likely to be the major business plan concerns for _____.
family and friend investors
In the context of entry wedges, _____ occurs because government agencies, government-sponsored commercial contracts, and many big businesses have policies that provide for quotas for buying from small businesses.
favored purchasing
Social capital is the major component of what accountants call _____, and it can be found on business's balance sheet.
goodwill
What kind of planner generally tends to do very poorly in business, even if they do manage to get their firms started?
habit-based planners
Certain businesses demand higher safety related rules. For example, window cleaners that specialize in high-rise buildings have certain rules and safety protocols. These specific rules would comprise the _____.
industry-specific knowledge
A firm will be recognized for its industry leadership, a product-based legitimacy building characteristic, typically when:
its service standards are benchmarked by competitors.
For part-time businesses, _____ refers to the documented permission from the government to run a business.
licensing
What category does the majority of small business fall under?
lifetime/part time firms
Lifestyle firms, traditional small businesses, and high-performing small businesses are often called _____.
main street businesses
Roller-Tell Inc., a major supplier of components to the automobile industry, has recently confronted a crisis as one of its manufacturing units has been forcefully shut down by the local union. As a result, the company has been unable to meet the customer demands appropriately. As the owner of the business, the most appropriate way for the firm to handle this crisis is to:
make the process of dealing with the problem as open as possible.
5 Ms
mantra, mission, measures, method, mechanics
A customer group that involves large portions of the population is referred to as a _____.
mass market
The _____ is marked by a stabilization of demand, with firms in the industry moving to stabilize or improve profits through cost strategies.
maturity stage
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
Imitation plus one degree of similarity results in:
patterning a business on existing firms.
Having well-known or well-regarded owners, employees, supporters, or spokespeople primarily increases a firm's _____ legitimacy.
people-based
What is best thought of as a type of learned optimism in successful entrepreneurs?
perseverance
The owner of Elixir Force Inc. received the most prestigious corporate award and was also titled as "the most outstanding new entrepreneur of the year." In the context of people-based legitimacy, this is typically an indicator of:
public recognition