Fina 323 Exam 1

Factors such as the ages, races, and gender of customers would be an element of the firm's _____ environment.

general

Social capital is the major component of what accountants call _____, and it can be found on business's balance sheet.

goodwill

One powerful but rarely used source of business ideas are:

government agencies.

Small businesses are usually:

imitative in nature.

To help and prepare small businesses to handle crisis they have been recommended to avoid:

planning only after the crisis has occurred.

When it comes to building an idea-prone culture, remember that ___________ is the fuel that fans the fires of creativity and helps your business reach potentials that you may never have anticipated.

recognition

When starting a business, more women choose ________ industries that tend to have lower average sales levels.

service

A business action that has been widely adopted within an industry or occupation is known as _____.

standard business practice

According to the Panel Study of Entrepreneurial Dynamics (PSED), a majority of entrepreneurs indicated that:

the decision to start a business came first.

Small businesses differ from high-growth ventures in that in small businesses:

the preferred source of funding is the owner's own money rather than other people's money.

Expert business professionalization is a situation that occurs:

when most aspects of the business meet or exceed the industry's standards.

Which of the following is true of a franchise?

· It is a prepackaged business bought, rented, or leased from a company.

According to the BRIE model, which of the following is an element that is necessary to start a business?

Boundary

The idea trigger of the separate products, services, or whole businesses that entrepreneurs can put together to create another distinct business represents which cue of the SCAMPER tool?

Combine

_____ 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

The successful entrepreneurial personality exhibits certain types of business-related expertise which the text condenses into five competencies. Which of the following statements is NOT true about these competencies?

Determination competencies are activities, knowledge, and skills specific to businesses in a particular industry.

Which of the following is true of entrepreneurial alertness?

It allows entrepreneurs to notice things that have been overlooked.

Which of the following is true of a traditional small business?

It defines its schedules based on customer needs.

Which of the following is true of a part-time firm?

It starts small and stays very small.

_____ 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 one of the most common behaviors found in successful entrepreneurs?

Passion

The problem behavior of trying the same action repeatedly without learning is called _____.

Perseveration

Which of the following approaches yields better results in an established industry or a poor one?

Prevention focus

Joe has an idea for a new mobile restaurant business. He wants to convert an antique bus into a sit-down restaurant with a service window allowing him to serve people within the bus and walk-ups who want to get their food and take it home. Joe takes his idea and looks at the people, the offerings, the customers, the value proposition, and his distinctive competencies. Joe is performing a(n) ____________.

RBI screen

One of the quickest and simplest ways to screen an idea for business potential is through the ______.

RBI screen

Which of the following statements is true of legitimacy indicators?

Repeating one legitimacy characteristic daily does more to build social capital than changing the legitimacy characteristics.

The _____ is a U.S. government agency that helps people start a business and also provides them support and advocacy.

Small Business Administration

Which of the following legal forms of business is typically considered the least legitimate?

Sole proprietorship

According to the SCAMPER tool, a feature that allows customers to order directly from a website rather than visiting a store is an example of:

Substitution

Which of the following is a myth about small businesses?

That a small business will never have enough financing

This stage of the business life cycle occurs once the firm is established in its market.

The success stage.

Which of the following is true of creative business owners?

They question and challenge the way things appear.

The majority of businesses run by teams are comprised of:

Two members

When starting a business using entrepreneurial teams, which number of team members is the most common?

Two team members

_____ is a reward universally mentioned by entrepreneurs.

Work flexibility

A person who becomes an owner by inheriting or getting a stake in a family business is known as _____.

an heir

The economic sector in the general environment is primarily concerned about the:

availability of equity, credit, and employment in a country.

Which of the following is an element of a firm's internal environment?

board of directors

Thomas has started a new business venture for which he has been using highly economical resources, such as the market research data available in public libraries, low-interest funds borrowed from national banks, and equipment hired on lease. This technique used by Thomas to overcome resource constraints in his start-up firm is best known as _____.

bootstrapping

The general description for the processes and skills used in the management of a firm's interactions with people, organizations, and institutions outside of its boundary is called _____.

external relations