Entrepreneurship Final Exam #1 (Ch. 1,3,4,7, 8, 17)

Which of the following is the advantage of knowing the magic number?

It helps in evaluating if the proposed business can deliver the desired return.

A feature that allows your customers to order directly from a Web site rather than visiting your store or ordering by mail is an example of ____________ ?

Substitute

According to the BRIE model, which of the following falls under the intention category?

The desire to start a business

Which of the following is NOT true regarding the components of a business plan?

The organization section tells the story of your product or service.

Which of the following statements is NOT true of degree of similarity?

The parallel competition is a type of approach in plus one degree of similarity.

Which of the following statements is NOT true about the general environment?

The task and internal environments of a firm are independent of its general environment

When developing the customer segments of your business canvas model, which of the following statements is NOT true?

There will be one canvas encompassing all customer segments.

Which of the following statements is true about the task environment?

This part of the environment is made up of those people a firm deals with every day.

What is the goal of appendixes in the business plan?

To provide supporting information that helps detail the key selling points of a plan

The RBI screen consists of asking yourself five questions to help you screen entrepreneurial ideas. Which of the following is NOT one of those five questions?

Who are your competitors?

Amy plans to open a laundromat with a gym. She got the idea from the laundromat with a bar and game rooms, which she visits regularly. She wants to test her idea by starting out in a small space with the focus on the laundromat and a small space allocated for gym equipments. Amy's idea is an example of _____.

an incremental innovation

If you don't succeed the first time, try, try again is also called the strategy of

perseverance

The first step of the strategic planning process for a small business is:

reviewing and confirming the goals that define the firm.

Jermaine, a member of a student organization, supports the move to increase the membership fees for their organization in order to keep the club solvent, even though some of the members might not be able to afford the increase. He is taking the __________ approach to moral reasoning.

utilitarian

When a bookstore starts to sell videos, music, and coffee as well, it uses which of the following elements of the SCAMPER tool?

Combine

Students (or moms or some other group) don't have the skills to start a business.

False

The Golden Rule is an ethical model that asks whether someone would be comfortable having his or her decision and name advertised on a billboard for the public to see. true/false

False

Which of the following statements is true of the financial statements and reports found in a business plan?

For all types of business plans, a set of financial reports or projections are the central component of the Appendix.

Which of the following statements is NOT true of business plans?

Having a business plan guarantees higher profits.

Which of the following is an advantage of using an imitative strategy?

It allows business owners to buy existing technologies.

Which of the following is NOT true of entrepreneurial alertness?

It allows entrepreneurs to launch a formal search for opportunities.

Anna helps brides-to-be choose wedding gowns that best suit their requirements and budget, and also helps them with where they can find the right dress. She has made her home her virtual office; she does not require external financing. Anna is using ___________ to run her small business.

bootstrappinh

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

Mandarin In Town, a Chinese restaurant, opened recently in Burnsville, Minnesota. People from all over the town flocked to Mandarin to find out how good it was. This gave a big boost to the restaurant's initial business, but it caused the other restaurants in the area to lose business temporarily. The way in which Mandarin in Town hurt existing restaurants in Burnsville is an example of

creative destruction

Josh, an electronics retailer, noticed that the e-commerce business was booming. He started an online shopping website 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

Cost strategies target a niche segment of the market. true/false

false

Raj is starting a flower shop. He knows his magic number and has mapped his distinctive competencies. What is the next step for Raj in the small business strategy process?

industry analysis

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

It helps entrepreneurs to come up with alternative solutions.

Which of the following statements is true of an elevator pitch?

Its goal is to sell the idea of a business to another.

_____ 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 is characteristic of the shake-out stage in the life cycle of a product?

Many firms close down.

Which of the following is true of the introduction stage of a product?

Most industries' introduction stage starts with only a few firms.

Which of the following are the two major classification systems that code industries?

NAICS and SIC

_____ is an approach to operating a firm or a line of business which identifies, creates, and exploits opportunities to make a profit in a manner that can minimize the depletion of natural resources, maximize the use of a recycled material, or improve the environment.

Sustainable entrepreneurship

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 John works

Which of the following statements is true of the company section of a business plan?

The product/service subsection mentions any protection through a proprietary technology.

Which of the following statements is true of a vision statement?

A vision statement is supposed to be inspiring, overarching, and long term.

Business plans are essential for external legitimacy and internal understanding. true/false

True

From the causal model of entrepreneurship approach, entrepreneurs first recognize they want to do or make something through a business in the Feel stage.

True

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

True

Which of the following statements is NOT true of target customers?

Usually you only have one type of target customer.

Sam intends to present a business plan to his potential key employees. The employees would most likely expect to know about the _________________ during the presentation.

long-term prospects

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

When building a business model canvas, the ________ is small business owners' unique selling points (also known as benefits) that customers can expect from your goods or services, including benefits that differentiate your offering.

value proposition