Ent exam 1
Large firms can sometimes do things more efficiently because of their ability to operate on a larger scale than can a small firm. This implies that large firms obtain ______ in some industries.
Economies of scale
An individual's hobbies and past work experience contribute to the individual's personal _____ set.
Skill
In hobbies and activities, individuals develop _____ specific to the hobbies. (Please enter one word for the answer.)
Skills
Which of the following are reasons for the recent growth in the number of women starting new businesses? (Check all that apply.)
1. Frustration with the glass ceiling 2. Greater control over work-life balance
Silicon Valley and Boston's 128 corridor are well known for: (Check all that apply.)
1. Generating new employment with entrepreneurial ventures. 2. Providing a growing tax revenue base. 3. Providing a basis to the area's economic vitality.
Which of the following are questions an entrepreneur should address regarding education? (Check all that apply.)
1. Have you taken specialized training in any specific area? 2. Have you attended any unusual education programs? 3. What courses taken were particularly enjoyable?
Which of the following are components of the entrepreneurial orientation concept? (Check all that apply.)
1. Personality orientation 2. Prior experience 3. Risk tolerance
Silicon Valley and Boston's 128 corridor are well known for:
1. Providing a basis to the area's economic vitality 2. Generating new employment with entrepreneurial ventures 3. Providing a growing tax revenue base
Which of the following are pairs of variables in the Myers-Briggs test? (Check all that apply.)
1. Sensing-intuiting 2. Extroversion-introversion 3. Judgment-perception
Which of the following are advantages that small, new businesses have? (Check all that apply.)
1. Small businesses can respond quickly to opportunities or threats as they arise. 2. Small businesses fill niches that large firms simply cannot afford to fill. 3. Small businesses are owned and run by the same person(s).
Which of the following statements regarding entrepreneurial businesses are correct? (Check all that apply.)
1. They have limited flexibility in responding to emergency issues such as the need to hire replacements if the company loses key individuals. 2. They are generally dependent on a single person or a few individuals.
Which of the following are typical triggers for starting a business? (Check all that apply.)
1, Being laid off from a job 2. Being approached by friends or family with a new business idea 3. Reaching a point financially where the risk-return level of a proposed new business is tolerable
The United States Small Business Administration was organized to: (Check all that apply.)
1. Aid, counsel, and protect the interests of small businesses. 2. Provide assistance at all levels of management for entrepreneurial businesses. 3. Provide information at all levels of organizational development for entrepreneurial businesses.
Identify the guidelines that should be ideally followed by entrepreneurs to create business plans for new entrepreneurial businesses. (Check all that apply.)
1. An entrepreneur should understand that a business plan should be created in pieces with each piece fitting into a whole picture. 2. An entrepreneur should create an attractive, one-page pitch about the business while developing the business plan.
Identify the typical triggers for starting a business. (Check all that apply.)
1. Being spurred to action by attending a seminar, reading a book, or talking with successful entrepreneurs 2. Experiencing the inability to climb the corporate ladder due to circumstances 3. Receiving evidence that an idea is not only doable, but there is a concrete way to improve on a given problem
Which of the following contribute to personal skill sets? (Check all that apply.)
1. Current work experience 2. Hobbies 3. Past work experience 4. Family history
Elevator pitch
A pitch delivered in the time it takes to ride the elevator
What is the suggested starting point for generating business ideas?
Analyzing the skill set of the potential founders
Personality tests should help you better understand yourself and your strengths and not be used as a guide for your
Career
What should be in the second column of the business chart?
Categories
What is included in the second column of the chart used in the gap analysis?
Categories of analysis
Without the needed skills, the founders would be faced with not holding any advantage over the _______ who have the necessary depth in the area.
Competitors
Synergy
Connecting skills, understanding, and a competitive advantage
Types of categories: Risk
Determine your risk tolerance by looking at your life over the past few years. Personal risk- What reputation are you willing to. live with? Business risk- What level of product is necessary to become successful?
Along with being properly financed and developing sustainable profit margins, in order to be successful, entrepreneurs must:
Develop an effective sales generation model
Economies of scale is the condition that allows the long-run average cost to continue _______ as production _______.
Downward; Increases
What program is growing across the United States to help start new entrepreneurial businesses in an area?
Economic Gardening
Civic leaders often look to ______ as a means to promote economic strength for a community, region, or state.
Entrepreneurs
Types of categories: Nonfinancial resources
Ex. contacts with suppliers or customer groups and the location
Types of categories: Finance
Examine the amount of money required to start and operate a business.
Large businesses often have _____.
Extensive written procedures
True or false: Every business in the Fortune 500 started out as a large corporation.
False
True or false: Men are the largest single group of new business founders.
False
True or false: Robber barons were responsible for the collapse of small businesses in the 1880s
False
According to the World Bank, the presence of entrepreneurial small- and medium-sized enterprises is one of the strongest factors in the growth of any nation's ______.
Gross national product
Unlike the business plan of a venture capital-backed business, the entrepreneurial business plan is developed as a _____.
Guide for the running of the business
Types of categories: Time
Have the time necessary to run the business
Personality tests can _____.
Help one better understand one's traits and tendencies
Gap analysis
Identifying a gap or opportunity that exists between the demand for a product or service and the supply provided by firms in the market
Identify a finding of the federal General Accounting Office's (GAO's) analysis of the impact of the closure of military bases.
In cities with base closings, several new businesses rose up to fill the economic gap that had resulted from the closings.
The process of ______ a new business is unique and has developed into a popular area of study at colleges around the globe
Initiating, developing, and running
People in an entrepreneur's network can help by providing ______ to a new business.
Legitimacy
If one has a low risk tolerance, one is likely to spend ____ and save ____.
Less; more
The steps in the process of generating ideas do not occur in a(n) ______ fashion but should occur in a(n) ______ manner.
Linear; interactive
Which of the following is NOT one of the three types of specific risks?
Network
According to the text, which of the following is an important driver of the economic success of a community?
New business development
Excess resources in an organization that allow for redundancy and the quick deployment of personnel in crisis are referred to as . (Enter one word in each blank.)
Organizational slack
Once a list of skills, abilities, and interests has been developed, the next step is to:
Perform a gap analysis.
_____ motivations come from the individuals themselves.
Personal
The triggers for starting a business can come from either _____ or negative stimuli that occur in the individual's life.
Positive
The process of business development from scratch and the process followed by established businesses are ______.
Quite different
What should you do if you prefer working with people?
Retail or service oriented businesses
All new businesses have an inherent amount of associated with the starting and operation of the business.
Risk
Threats to profit margin, threats to operational financing, and threats to sales generation schemes are three threats to business success that entrepreneurs consider when they examine and characterize business ______.
Risk
Who is associated not only with the success of the industrial base but also with the great abuses in business?
Robber barons
The Fortune 500 is published annually by Fortune magazine and documents the 500 largest corporations (by ______) in the United States? Multiple choice question.
Sales
Large firms can obtain economies _____ of in some industries because of their ability to operate on a larger scale than can a small firm.
Scale
Large firms can obtain economies of _____ in some industries because of their ability to operate on a larger scale than can a small firm.
Scale
A personality test can help one _____.
Select the type of business to start
What jobs are good for people who prefer people-oriented jobs
Service and retail
Creating ideas for a business is a process that
Takes time, interaction, consideration, evaluation, and iteration
Successful business ideas are determined by the following:
The creativity of the entrepreneur.
The risk in starting and operating a new business is determined by:
The entrepreneur.
The greatest advantage of an entrepreneurial business is that it is owned and run by _____.
The same person(s)
Which of the following statements is directly associated with the circumstantial motivators for starting a business?
The staying power of an opportunistic start-up is mainly determined by other competing opportunities.
Which of the following is true of entrepreneurial firms?
The structure of management is designed to take advantage of the skills of the founder or founders of a firm.
Threats to profit margin:
The threat of not being able to achieve a profit margin sufficient to allow the business to attain substantial returns.
Threats to sales generation schemes:
The threat of not being able to generate sufficient sales required to make the firm profitable.
Threats to operational financing:
The threat of not obtaining sufficient financing to operate a firm.
Entrepreneurs' prior experience plays a role in new business creation through _____.
Their view of the world
Which of the following statements is true of venture capital start-ups?
They are often formed as high-tech ventures consisting of unique characteristic
If the potential entrepreneur is to be successful, then the process is to move from
Three to five ideas to a single idea
The first category of start-up businesses are those formed as high-growth, often high-tech, ventures and are referred to as ______.
Venture capital-backed firms
People should start a business that they _____.
Will enjoy
Which source of skills typically has direct applicability to the pursuit of a new business?
Work experience
The _____ ceiling refers to the fact that women and minorities may be hired by large firms but they experience limits placed on their advancement within the firm.
glass
The U.S. government considers any business with fewer than _____ employees to be a small business.
500
Along with the business idea, what else should be included in the first column of the gap analysis chart?
A brief explanation of the business idea
What are the critical elements that an entrepreneur must solve for success? (Check all that apply.)
1. Sustainable operating profit margin 2. Sufficient resources to get the business to a point where it is self-funding 3. Develop an ability to generate consistent and growing sales
Which of the following descriptions are characteristics of entrepreneurial firms?
1. The operation is designed in the image of the founder 2. The number of employees will not be expected to grow beyond 100 3. The start-up is self-funded or closely funded
Which of the following are characteristics of venture capital-backed firms? (Check all that apply.)
1. They are formed with a harvest plan in place. 2. They either start or grow quickly to employ a relatively large number of employees. 3. They have a developed organizational structure.
What should you work with if you do not like working with people?
Focus on minimal interpersonal jobs. Some examples that you could do would be an internet based that handles back-office operations such as bookkeeping, billing, orderfulfillment, etc.
The success of entrepreneurial businesses occurs because they are simply more _____ than their larger corporate counterparts.
Focused
Which periodical is published annually and documents the 500 largest corporations by sales in the United States?
Fortune
How do skills develop?
From hobbies, current work, past work, personal values, and family history
The World Bank estimates that one of the strongest factors in the growth of any nation's GNP is the presence of entrepreneurial _____ enterprises.
Small- and medium-sized
In the context of businesses listed in Fortune 500, Henry Ford (Ford Motor Company), Steve Jobs (Apple), Ralph Lauren (fashion), and Sam Walton (Walmart) all started out as _____.
Small-business owners
An entrepreneur's support and resources are typically _____ to the individual and the location.
Specific
Individuals or other organizations that may impact the success of a business and depend on the success of the business for their own livelihood are known as ______.
Stakeholders
_____ includes key suppliers, customers, and employees. These individuals are critical to the success of a business.
Stakeholders
What is the connection between the entrepreneur's skills, understanding of an industry, and the ability to create a competitive advantage such that the sum of the parts of the new business is greater than the individual parts alone?
Synergy
Examining ______ around the region, nation, or world that may not have reached a particular location is one way of identifying business opportunities or gaps.
Trends
True or false: An entrepreneur's prior experience places boundaries on what he or she will consider when making decisions.
True
True or false: An entrepreneur's risk tolerance, prior experience, and personality orientation shape their analysis of a business idea's potential.
True
Business idea
1. Process of identifying the skills of the potential founders 2. Identifying opportunities in the market 3. Financial funding
Which of the following are supports that entrepreneurs rely on? (Check all that apply.)
1. Family 2. Financial resources 3. Social networks
Questions potential business owners should ask: (Family)
1. What is your family history with new business ventures? 2. What types of travel and vacations does your family enjoy? 3. What skill set exists within your family? 4. What are the financial resources of your family?
A business plan for a small business typically runs _____ pages long.
15 to 25
True or false: Unlike entrepreneurial businesses, large organizations will regularly pursue smaller markets even if they do not believe the results will generate profits.
False
Which of the following sources of skills for a new business is often the most overlooked?
Family experiences
According to the 2019 statistics from the United States Small Business Administration, 99.9 percent of all businesses in the United States are:
Small
By providing resources that new businesses cannot otherwise afford on their own, incubators can help these businesses establish _____.
Some level of legitimacy
In the context of nonfinancial resources, which of the following are to be considered in a gap analysis for a new business? (Check all that apply.)
Special contacts with customers Special contacts with suppliers Physical location of the business
True or false: Small businesses have greater flexibility in responding to changes that take place in their external environment.
True
True or false: The high level of family commitment is a key reason why family businesses are able to survive and prosper.
True
Questions potential business owners should ask: (Work Experience)
1. In what businesses have you worked? 2. What skills were critical to the jobs you performed? 3. What positions have you held in business? 4. In what areas were you considered an expert? 5. What did you enjoy about your positions? 6. What frustrated you about your positions?
Which of the following statements are true regarding robber barons?
1. They dominated the industrial sectors 2. They were responsible for some of the great abuses in business 3. They took advantage of the economies of scale
Which of the following are correct regarding the characteristics of large businesses? (Check all that apply.)
1. Knowledge is widely dispersed throughout the business. 2. No one person is critical to the business's survival. 3. They have greater excess resources.
To fully utilize family resources, entrepreneurs should _____. (Check all that apply.)
1. Make a list of members that they have regular contact with 2. List the capabilities those individuals possess that might be helpful
Which of the following are required in the initial analysis of a business opportunity? (Check all that apply.)
1. Financial investments 2. Time 3. Focus
Identify the findings of the federal General Accounting Office's (GAO's) analysis of the impact of the closure of military bases. (Check all that apply.)
1. Cities with base closings offered tax breaks and programs to support new business development. 2. In cities with base closings, the areas around the bases had income growth higher than the national average.
Which of the following statements about family members are true? (Check all that apply.)
1. Family members are likely to be willing to contribute time and money to the new business. 2. Family members are likely to serve as a reality check and support structure. 3. Family members best know one's abilities and shortcomings.
Which of the following statements make interviewing key successful entrepreneurs an attractive way to identify opportunities or gaps? (Check all that apply.)
1. Most successful entrepreneurs have great ideas. 2. Entrepreneurs have a keen eye for what businesses are needed in an area. 3. Most successful entrepreneurs are too busy with their own business to pursue new ventures.
Which of the following statements about agency theory are correct? (Check all that apply.)
1. Owners always act to maximize the value of the business. 2. Agents often maximize their own benefit. 3. Managers are considered agents.
The Enneagram's nine personality types include which of the following? (Check all that apply.)
1. Reformer 2. Helper 3. Achiever
A difference between entrepreneurial businesses and venture capital-backed firms is that _____.
Entrepreneurial businesses' resources are more constrained than those of venture capital-backed businesses
Which of the following statements regarding personal motivations are correct? (Check all that apply.)
1. Entrepreneurs who are driven by personal motivators more relentlessly pursue their goals. 2. Entrepreneurs who are driven by personal motivators often make career and life-altering changes regardless of practical advice. 3. Entrepreneurs who are driven by personal motivators are often more pr
Which of the following are reasons why entrepreneurial businesses are successful?
1. Few layers of management 2. Tend to be more focused than large corporations 3. Free to place energy into satisfying the needs of customers
Which of the following are reasons why entrepreneurial businesses are successful? (Check all that apply.)
1. Fewer layers of management 2. Tend to be more focused than large corporations 3. Free to place energy into satisfying the needs of customers
Which of the following groups might be included in an entrepreneur's key support network? (Check all that apply.)
1. Former employers 2. Friends from school
Which of the following are questions an entrepreneur should answer regarding work experience? (Check all that apply.)
1. In what businesses have you worked? 2. What skills were critical to the jobs you performed? 3. What aspects of the job were most enjoyable? 4. In what areas would you be considered an expert?
Which of the following steps are important to the development of a quality business idea? (Check all that apply.)
1. List and evaluate one's personal skill sets. 2. Analyze the market and look for a gap or need not being met effectively. 3. Compare one's ability to fill the gaps with the opportunity available.
A venture capital-backed business plan typically runs from _____ pages long.
25 to 45
Which of the following statements about incubators are correct? (Check all that apply.)
1. They provide common receptionists to new businesses. 2. They provide many critical services to new businesses. 3. They provide office machines and basic furniture to new businesses.
Three threats to business success:
1. Threats to the profit margin 2. Threats to sales generation schemes 3. Threats to operational financing
Which of the following are goals of the business plan for a new entrepreneurial business? (Check all that apply.)
1. To provide investors with necessary information 2. To be a guide to managing the business 3. To provide self-evaluation
Other questions
1. Top 3 personal skills? 2. Favorite things to do? 3. What do you read? Podcasts? 4. Greatest accomplishments? 5. Do you enjoy working with people or alone? 6. What's your favorite industry?
New business owners need to be sure that the level of risk is consistent with their ______, ______, and ______. (Check all that apply.)
1. Values 2. Family situation 3. Background
Questions potential business owners should ask: (Education)
1. What courses did you take that you found to be enjoyable? 2. What courses did you take where the material came to you very easily? 3. Have you attended any unusual education programs that gave you unique skills? 4. Have you taken specialized training in any specific area?
Questions potential business owners should ask: (Hobbies)
1. What hobbies or activities do I pursue? 2. What about my hobbies or activities excites me? 3. What were the skills/experience needed to acquire the hobbies? 4. What products and services did I use in these hobbies?
When was the initial development of the large industrial base of the United States?
1880s
BLANK percent of private sector employees are in small businesses
48
Identifying gaps:
1. Examining trends from around the world that may have not reached your particular geographic location 2. Interview and talk about opportunities with key successful entrepreneurs in the area 3. Discuss potential businesses with your family 4. Look for environmental changes that create opportunities that did not exist before 5. Brainstorm with entrepreneurs 6. Look at what frustrates you
Identify the questions that should be considered by an entrepreneur when analyzing the nonfinancial resources category of a gap analysis for a new business. (Check all that apply.) Multiple select question.
1. What peculiar capabilities offer the entrepreneur a competitive advantage? 2. What unique skills will be needed to run the business?
Identify the questions that should be considered by an entrepreneur when analyzing the nonfinancial resources category of a gap analysis for a new business. (Check all that apply.)
1. What unique skills will be needed to run the business? 2. What peculiar capabilities offer the entrepreneur a competitive advantage?
The European Union considers any business with fewer than _____ employees to be a small business.
50
True or false: It is advisable for an entrepreneur to ensure that sufficient financial resources are available prior to the start of a business.
True
True or false: The one-page pitch created by a new entrepreneur while developing a business plan should offer an effective starting point for every potential supplier, employee, or investor
True
