ENTR
A(n) _ is defined as those companies within a specified geographic radius that will be in direct competition for the same customers and sales as that of the new business.
industry
Every business that has been documented in the Fortune 500 list began as a new venture by a single individual or a small group of people.
True
Profit margins are key to successful businesses.
True
What are the critical elements that an entrepreneur must solve for success?
- An effective sales generation model - Sustainable operating profit margins - Being properly financed (All of these choices are correct)
___ are resources that combine to allow a firm to do things better than its competitors.
capabilities
While developing a quality business idea, what should potential business founders ideally do after evaluating their personal skill sets?
carefully analyze the market and look for a gap
A(n) _ is an analytical tool to organize information about direct competitors on all points of competition.
competitive map
When defining potential customers, an owner must
define a specified radius around the business
In the context of generating new ideas, which of the following is an example of a personal hobby developed into a business venture?
A sports card collector becomes a dealer who specializes in the trade of rare and valuable trading cards.
The mission of any business needs to be ___.
Actionable
Years ago, economists mistakenly predicted that small businesses would
Be replaced by a smaller number of big businesses
Small companies can take advantage of economies of scale better than large firms.
False
A person's past work experience is a source of skills and ideas for new businesses.
True
A mission statement is a long narrative used to summarize a business.
false
Basic industry information can be obtained only by participating in focus groups
false
Defining the firm's industry is something that can be taken lightly; the small business owner really needs to learn only about the local market. Industry information can be learned later.
false
Entrepreneurs must quickly react to any business opportunities they identify to maximize their gains.
false
In an external environment analysis, the first step is to research your customers.
false
The excess resources that large companies tend to have to assist them are referred to as organizational redundancies
false
The generation of ideas for new businesses often occurs spontaneously and automatically.
false
The key to recognizing an opportunity is completing a detailed analysis of the internal environment.
false
There is one crucial person in a large organization: the chief executive officer.
false
Unlike large companies, new businesses can afford to have people who just follow procedures rather than use all of their skills and creative abilities.
false
In contrast to the role of leadership in a typical large organization, the founder of a new entrepreneurial business tends to play a very critical role because
the concentration of knowledge tends to be with her or him.
The information from the North American Industry Classification System (NAICS) can be found from
the government, the library, the internet
A mission must have direct applicability to even the most entry-level employee, for it to be utilized effectively by every member of the company.
true
A small business owner must understand when an opportunity for a new business is truly an opportunity.
true
Organizational slack allows large organizations flexibility that is not available to smaller companies.
true
The North American Industry Classification System (NAICS) is a code generated by the U.S. government to gather, track, and publish data on specific industries.
true