Entre Learnsmart

entrepreneurs should______ when defining their business's industry

be as specific as possible

Which of the following are typical triggers for starting a business?

being approached by friends or family with a new business idea; reaching a point financially where the risk-return level of a proposed new business is tolerable; being laid off from a job

Conducting a resource-based analysis will help entrepreneurs

better understand what creates the business's advantage; better understand how suppliers can help create the business's advantage

_______ is the creative process in which a group of individuals are brought together and asked to generate ideas related to a specific topic, with little effort given to evaluating the potential of the ideas

brainstorming

In order to make the mission statement understandable and memorable, it is essential that statement be kept

Short

Which of the following support the rationale for starting a business idea generation process by analyzing the skill sets of the potential founders

There are literally millions of opportunities; pursuing opportunities without the requisite skill set wastes money; pursuing opportunities without the requisite skill set wastes time

industry ____ exists for nearly any industry and often exists at the state, national, and even international levels

associations

Which of the following is not an example of family experiences that build knowledge and can grow into a new business opportunity?

attending SBA courses with your sibling

which statements about an industry are true?

businesses in the same industry sell similar products; it is defined as businesses within a specified geographic radius; customers share similar buying criteria, such as price

exact competitors are ___________.

businesses that directly compete for the same ideal customers

most small businesses that directly compete with well-established firms operate at a

cost disadvantage and must compete on some other basis

Which of the following are characteristics of the first-mover advantage?

customer loyalty obtained; the firm is the first to market with a differentiating approach; customers are driven by something other than cost

Which of the following are important elements of a one-page pitch for your business?

customer problem; business model; product offering

What are the financial gains garnered from an asset or capability that are in excess of the ordinary returns in that particular industry?

economic rents

What are the conditions that allows the long-run average cost to continue downward as production increases?

economies of scale

It is much cheaper on a per-unit basis for Anheuser-Busch to produce large volumes of beer than it is for a small craft beer brewer to produce smaller volumes of beer. Anheuser-busch has achieved __________ of scale

economies

Large firms can obtain ______ of scale in some industries because of their ability to operate on a larger scale than can a small firm

economies

T/F: Every business in the Fortune 500 started out as a large corporation

false

T/F: Robber barons were responsible for the collape of small businesses in the 1880s

false

T/F: if individuals are not detail oriented, then a business that is procedurally complex and involves managing a wide variety of tasks may be appropriate

false

T/F: one's skills from either education training or experience does not have a critical impact on the direction of one's business

false

T/F: passion for the industry is not required, as long as an entrepreneur has the necessary skill set

false

T/F: the mission of the firm is to make money

false

______ are uniquely positioned to provide a much-needed honest perspective on your efforts toward creating a new business

family members

Why are hobbies a good skill source?

hobbies require the development of specific skills; individuals are passionate about their hobbies

many companies that are not potential competitors are willing to help industry outsiders improve their operations by sharing their

knowledge

According to the text, which of the following is an important driver of the economic success of a community?

new business development

An entrepreneur's risk tolerance, prior experience, and personality orientation shape their analysis of a business idea's potential

true

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

The process of ________ a new business is unique and has developed into a popular area of study at colleges around the globe

running; initiating; developing

The process of forming and managing a new entrepreneurial business in a clear, sequential manner that is rich in practical application and grounded in research is the ___________ part of entrepreneurial business development

science

A personality test can help one _________.

select the type of business to start

In their book entitled the millionare next door, thomas stanley and william danko point out that almost two-thirds of US millionaires are _____________

self-employed

A harvest plan may included:

selling it to a group of investors; participating in a public offering stock; selling the business to another firm

To ensure that every employee can understand the mission statement, the new-business owner must keep the statement

simple

An individual's hobbies and past work experience contribute to the individual's personal ____ set

skill

An individual's work experience builds ____ sets that can have direct applicability to the pursuit of a new business

skill

which of the following statements is true regarding skills?

skills are derived from our history; skills are relatively idiosyncratic to the individual; skills are derived from hobbies

Which of the following is true regarding skills?

skills are relatively idiosyncratic to the individual; skills are derived from hobbies; skills are derived from our history

Which of the following are criteria that should be considered in developing a competitive map?

the facilities square footage; the quality and availability of parking; the pricing of products

understanding the business's competitive advantage is the ____ step in an external analysis

last

Which of the following is a benefit of followers?

learning from the mistakes of the first movers

The myers-briggs test is one of the most widely used personality tests

true

family experiences are an often overlooked source of skills for a new venture

true

Entrepreneurs must

understand why customers choose their business and focus on those advantages

T/F: An entrepreneur's prior experience places boundaries on what he or she will consider when making decisions

true

T/F: an individuals background and hobbies are some of the main resources for new business ideas

true

Which of the following is not one of the three types of specific risks

network

List the three steps in identifying a sustainable competitive advantage for a business in the order starting from step one to step three

1. Develop a list of the assets and capabilities of one's business 2. Break the list of assets and capabilities into two groups: standard and unique 3. Evaluate the unique resources/capabilities of one's business 4. I love you- Nick

1. The statement should be able to fit on a coffee mug. 2.Everyone in the company should be able to learn and understand the mission. 3. The statement should be able to guide every individual in the company. 4. The statement clearly tells everyone what the company does. 5. Metrics for every part of the statement can be developed.

1. Short 2. Simple 3. Applicable 4. Specific 5. Measurable

When was the initial development of the large industrial base of the united states?

1880s

A venture capital-backed business plan typically runs from _________ pages long.

25 to 45

Organizations should develop between _______ measures of success for its venture

5 and 8

The european union considers any business with fewer than _________ employees to be a small business

50

The US government considers any business with fewer than _______ employees to be a small business

500

The repayment rate on microloans is typically _______.

99%

Performing activities where it has a competitive advantage. What the business does best in its industry. Doing some set of activities better than everyone else.

A new business needs to focus on:

Match the types of firms (in the left column) with their descriptions (in the right column).

An entrepreneurial business- it is owned and run by the same person(s). A large, established corporation- the individuals who manage do not typically have substantial ownership in the company

A key part of building a ____ is having a deep understanding of your customers needs

Competitive advantage

The unique assets and capabilities possessed by a new business will help for its ______ __________

Competitive advantage

The key to the ability to communicate a mission easily is that the statement be:

Direct Simple Appropriate

For the mission statement of a business to be utilized effectively, the founders must make it ______ to every employee within the company

Directly applicable

The underlying philosophy of the ________ test is that people are a result of all the experiences of their life

Enneagram

Match the definition to the appropriate business strategy

Focus- seeks to craft a business around a small set of customers, specialty products, or a geographical area; Low costs- seeks to be the lowest cost competitor in the industry; differentiation: seeks to find a unique position in the market through product, service or location;

How many logical steps are involved in developing a firms strategy.

Four

Which of the following are the three elements that describe how durability helps businesses hold onto the competitive advantage?

How long it would take for a competitor to imitate the product/service or to wash away the business's advantage; the length of time that a busienss might be able to gain and hold competitive advantage; the desire of competitors to compete with the business using the same potential resource or capability

The mission statement must be concise The mission statement must describe what the company does or does not do. The mission statement must be understood by all the business's stakeholders

Important features of the mission statement

As a business grows, the degree of difficulty in changing direction

Increases progressively

Keep it applicable. Keep it short. Be specific. Keep it simple.

Key characteristics that should drive the new-business owner in developing the mission statement

___________ are often for only a few dollars each and are made directly to entrepreneurs to encourage self-development in developing nations.

Microloans

A brief statement that summarizes how and where the firm will compete.

Mission statement

The ____ is the foundation in which the ______ is built

Mission; strategy

Which of the following is NAICS an acronym of?

North american industry classification system

Both categories of measures are tied to the strategic goals of the organization, but _____ measures have more to do with the feel of the organization.

Qualitative

Who is associated not only with the success of the industrial base but also with the great abuses in business?

Robber Barens

In order for the mission statement to be short, simple, and applicable, the mission statement must be

Specific

It is necessary that the mission statement be so ________ that it clearly tells every employee what not to do.

Specific

If a resource is matched by more than one competitor, then it is not rare and it is simply the ___ expectation of the industry

Standard

Which of the following are central to a new business's ability to maintain a clear vision about what it wants to be and how it will accomplish that plan?

Strategy; mission

A blank __________ _______ _________ is a set of advantages that provide a firm with an opportunity to make money where other businesses cannot easily copy that firms advantages.

Sustainable competitive advantage

An effective mission statement is inseparable from:

Sustainable competitive advantage

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

What are hard assets such as equipment or a location?

Tangible assets

Which of the following are true regarding the process of generating ideas?

The process typically requires iteration; the process typically requires consideration; the process typically requires interaction

Which of the following statements about the big five test are true?

The researchers surveyed thousands of individuals; it was developed by two independent research teams; the five factors emerged from the researchers' analysis of the data

Identify the true statements about new businesses triggered by circumstance motivators

The staying power of these businesses is determined by other competing opportunities; they are opportunistic start-ups

Identify the characteristics of a substitute that an entrepreneur should evaluate for every resource and capability in his or her business

The substitute satisfies the same basic needs that is satisfied by his or her product or service; the substitute is evaluated by its similarity to the entrepreneurs unique resource and capability

Which of the following statements regarding small business assistance centers are correct?

They are funded by the small business administration; they are often associated with SCORE offices; they provide a wide variety of support such as research aids

Which of the following areas provide a business with competitive advantage?

Those that help the business create a lower cost structure; those that draw new customers when the price is the same as competitors; those that allow the business to charge a higher price

T/F: Starting a new business may allow individuals to meet demands in their lives in a way that large corporations are unwilling to do

True

T/F: the high level of family commitment is a key reason why family businesses are able to survive and prosper

True

Step two of the process of identifying a sustainable competitive advantage involves splitting the lists of assets in to which of the following categories

Unique and standard

which of the following questions should be addresses by an entrepreneur when reflecting on family experience?

What is your family history with new business ventures? What skill sets exist within your nuclear family? Are there unique things your family does that others are interested in?

Which of the following questions could be explored to identify additional skill sources?

What type of magazines and books do I read? What skills were involved in the three greatest accomplishments of my life? In what industry would I prefer to work?

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 included in the first column of the chart used in the gap analysis?

a brief explanation of the idea; the business idea

Which of the following statements regarding a business's competitive advantage are true?

a competitive advantage must provide the opportunity to be more profitable that competitors; new businesses rarely perform better than competitors in all areas; new businesses need to develop one or several fundamental characteristics with which it is exceeds the industry's performance

What is a key to effective opportunity recognition by an entrepreneur?

a detailed understanding of the external environment

Which of the following are characteristics of a family business?

a family business has unique issues; family members work together to support the business

The nature of the effort required for an entrepreneur to carry out an effective due diligence analysis necessitates

a focus on a single business idea

Having a network helps a new firm by providing

a level of legitimacy

Prior to developing an effective mission statement, the new business must first develop

a list of competitive advantages

which of the following are examples of sources where an opportunity may come from?

a new technological advancement; a personal frustration; a vacancy at the perfect location for a business

A mission statement is said to be _______ if it helps the employees of a firm make active decisions in the moment without having to refer everything to the firm's founder

actionable

A competitive __ is the edge a business has over competing businesses

advantage

online communities such as blogs and chat rooms can provide advice to people starting a business

advice

_________ is a managerial theory that believes individuals act to maximize their own benefit

agency theory

The finance category on the gap analysis chart examines the

amount of family resources that could be committed; amount of money required to operated a business; amount of money required to start a business

Which of the following are potential sources of a business's competitive advantage?

an activity that the business does best; a unique structural business attribute

An entrepreneur should start a business based on

an opportunity

A gap ______ is the relatively simple process of systematically examining the difference between what is expected and what occurs.

analysis

The process involved in the gap analysis is more ___ than ___

art; science

A firm's ___ are resources that combine to allow the firm to perform better than its competitors

capabilites

What resources that combine to allow the firm to perform better than its competitors

capabilities

personality tests should help you better understand yourself and your strengths and not be used as a guide for your

career

Which of the following need to be evaluated in order to provide potential investors with the crucial information required when developing a business plan for a new entrepreneurial business?

cash flow; competitive advantage; management team

What is included in the second column of the chart used in the gap analysis?

categories of analysis

why did circuit city's attempt to change direction fail?

circuit city's change caused the company to lose its unique positioning in the market; circuit city's change led to a loss of their traditional customer base

Which of the following is an example of a company's attempt to change direction that led to failure?

circuit city's strategy to change their sales force to inexpensive clerks

A company's ______ _____ is made up of those things that the company does uniquely well or better than anyone in the same industry

competitive

A(n) _______ __________ is the area of separation where a firm performs better than anyone else in the market that it serves

competitive advantage

When products or services are rare, durable, relatively nonsubstitutable, and valuable, they can develop a _____

competitive advantage

An effective industry analysis starts by identifying every potential ________ within a defined distance of the new business's location

competitor

A firm's industry consists of those businesses the firm believes are its direct

competitors

Entrepreneurs should define the industry broadly enough to be inclusive of all potential

competitors

Which category on the gap analysis chart would examine companies doing the same thing as the new potential business?

competitors

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

Why do individual competitive advantages eventually disappear?

competitors adapt; industries change

elasticity of demand is the ___________.

consumer's response to price changes

When entrepreneurs can easily exit an industry, the intensity of industry competition tends to

decrease and the threat posed by new entrants is reduced

A new business's competitive advantage needs to be

defensible

Which of the following is the first step in understanding the nature of the external environment?

define the business's industry

The founder(s) of a business need to be intimately involved in the:

design of the business; funding of the business; running of the business

In developing a competitive map, entrepreneurs should _________.

determine key competitive factors they wish to understand

what is the first step in identifying a sustainable competitive advantage?

develop a lit of assets and capabilities

What are the critical elements than an entrepreneur must solve for success?

develop an ability to generate consistent and growing sales; sustainable operating profit margin; sufficient resources to get the business to a point where it is self-funding

Along with being financed and developing sustainable profit margins, in order to be successful, entrepreneurs

develop an effective sales generation model

Products or services that are considered rare have qualities that competitors find

difficult to obtain

Which of the following statements regarding exact or direct competitors are correct?

direct competitors can be easily found in the local telephone book; often, direct competitors are geographically local; identifying direct competitors is easier when entrepreneurs are clear regarding their customers' needs

customers who shop online

don't really care where they oder things from

Recent trends indicated that larger corporations have been ____, while businesses have been _______ rapidly.

downsizing; growing

Identify the critical steps in examining the nature of the external environment of a business

draw a set of competitive maps; research the industry in which one expects to do business; research the competitors within the industry that one expects to do business

The evaluation of the ___ of a new business's competitive advantage is done by the entrepreneur by estimating the amount of time it would take for his or her business competitor to match the firm in a particular area

durability

The evaluation of the ____ of a new business's competitive advantage is done by the entrepreneur by estimating the amount of time it would take for his or her business competitor to match the firm in a particular area

durability

Which of the following are ways entrepreneurial businesses can act as catalysts for societal change?

entrepreneurial businesses have an understanding of the local community; entrepreneurial businesses are willing to pursue smaller markets ignored by large corporations

Which of the following statements make interviewing key successful entrepreneurs an attractive way to identify opportunities or gaps?

entrepreneurs have a keen eye for what businesses are needed in an area; most successful entrepreneurs have great ideas; most successful entrepreneurs are too busy with their own business to pursue new ventures

Which of the following statements about unusual or unique competitive factors are correct?

entrepreneurs need to focus their resources on these factors; these factors are central to developing competitive advantage; these factors provide a means for the business to differentiate itself from competitors

Which of the following statements regarding personal motivations are correct?

entrepreneurs who are driven by personal motivators are often more proactive; entrepreneurs who are driven by personal motivators often make career and life-altering changes regardless of practical advice; entrepreneurs who are driven by personal motivators more relentlessly pursue their goals

When a firm reaches its break-even point, the revenues are ________ its expenses

equal to

Which of the following are tangible assets?

equipment; building location

step 3 in the process of identifying a sustainable competitive advantage involves

evaluating the competitiveness of unique resources and capabilities

Once a skill analysis has been completed, the next step is to

examine the marketplace for opportunites

A(n) ____ ____ keeps an entrepreneur from leaving a business he or she invested in

exit barrier

The big five test comprises which of the following factors?

extroversion; open-mindedness; emotional stability

Which of the following statements about family members are true?

family members are likely to be willing to contribute time and money to the new business; family members are likely to serve as a reality check and support structure; family members best know one's abilities and shortcomings

Why is discussing potential businesses with family members an attractive way to identify business opportunities?

family members know your abilities; family members know your dispostion; family members can provide an honest perspective

Which of the following are required in the initial analysis of a business opportunity?

financial investments; focus; time

The _____ step of conducting an external analysis is determining the industry in which the new business will compete

first

The ___ advantage occurs when customer loyalty can be obtained if customers are driven principally by something other than cost and the firm is the first to market with a differentiating approach

first-mover

implementing a strategy is about

fit within the business; alignment within the business

________ markets are those markets that have no clear dominant competitor and are made up of a large number of similar-sized companies

fragmented

once a list of skills and abilities has been developed, the next step is to perform a _________ to examine the marketplace for an opportunity that exists between the demand for a product and the supply provided by firms in the market

gap analysis

Individuals from outside an industry are able to establish a new business in a manner not previously considered because they

have bounded rationality

If done well, the process of generating ideas will result in:

ideas that match the founders' skills; a list of three to five business ideas; ideas that appear to be an opportunity

Knowing one's customer is ____ for the effective use of marketing dollars

important

which of the following are questions an entrepreneur should answer regarding work experience?

in what business have you worked? What aspects of hte job were most enjoyable? In what areas would you be considered an expert? What skills were critical to the jobs you performed?

A business _______ is a facility that houses new businesses and provides many critical services

incubator

A(n) _________ is defined as those direct competitors that sell similar products or services within a specified geographic radius that customers are willing to travel

industry

associations exist to support and promote their

industry

Identify the reasons individuals can become frustrated with working in a large corporation.

inflexibility of large corporations in dealing with the needs of an individual's family and children; lack of promotion opportunities

Which of the following is a principal cause of new business failure?

insufficient financial resources at founding

Things that are not physical but are just as critical to success, such as relationships with key suppliers, are called _______ assets

intangible

A competitive map

is an analytical tool that helps entrepreneurs compare competitors based on a set of criteria

which of the following is not a criterion used to evaluate the unique resources and capabilities of a business venture?

is it quantifiable?

Which of the following are criteria used to evaluate the unique resources and capabilities of a business venture

is it: Valuable durable rare easily substituted

Which of the following are reasons why entrepreneurs should develop their own competitive map?

it provides the entrepreneur with an understanding of what is right and wrong with each competitor; it is less expensive; it will help in developing insights regarding positioning, pricing, and even facility layout

Which of the following are the characteristics of a gap analysis methodology for a new venture using a chart?

it requires minimal research; it is a reasonably quick analysis

Which of the following statements are true about developing a competitive map?

its purpose is to better understand competitors and their capabilities; it is a step in external analysis; it should be developed by the entrepreneur

The steps in the process of generating ideas do not occur in a(n) _____ fashion but should occur in a(n) _________ manner

linear; interative

List the steps that are important to the development of a quality business idea

list and evaluate one's personal skill sets analyze the market and look for a gap or a need that is not being met effectively compare one's ability to fill the identified gaps with an opportunity available

To fully utilize family resources, entrepreneurs should

list the capabilities those individuals possess that might be helpful; make a list of members that they have regular contact with

trends shape the _____-term prospects of the given industry

long

While defining a radius from which one believes to draw a majority of one's customers, one should

make this distance reasonable

_____________ is key in successfully starting a new business venture

making quick adjustments using lean startup and evolution

A(n) ____ is a measure used to evaluate whether a person or firm is meeting its goals

metric

What is the direct measure of the business's mission?

metric

Which two elements have the power to guide the business as it develops?

mission; strategy

The founders and the leadership they provide play _________ of a critical role in the business's success than senior leadership in the typical large organization

more

Which statement about fragmented markets is true?

most entrepreneurial businesses compete in a fragmented market

The initial analysis is a process of:

moving from three to five ideas to a single idea

What are the typical categories used to analyze a business idea?

nonfinancial resources; time; competitors; risk; finance

"relatively ____" is a determination about whether a service or a product may be easily substituted by something else that a competitor could provide

nonsubstitutable

Entrepreneurs can create a list of competitors that customers can find _______ when there is no physical restriction to the business's operation

on the internet electronically

Which of the following statements regarding developing competitive maps are true?

one must take a customer perspective from a series of visits; entrepreneurs should visit all potential competitors; entrepreneurs must develop a list of criteria that they wish to take away from their visits to customers

A(n) ________ is a unique document that clearly lays out the crucial information about a new business idea and provides an effective starting point for every potential employee, investor, or supplier

one-page pitch sheet

Women of color account for ___________ of business headed by women

one-third

high development costs, rapid expansion plans, and high inventory needs are considered threats to:

operational financing

A(n) ________ that uses your education is a potential source of a business

opportunity

which type of gap analysis examines the opportunities in the marketplace side-by-side with the individual's ability to address those gaps?

opportunity analysis

Which of the following businesses could be the most likely pursued by individuals who do not prefer to work with people?

order fulfillment; internet-based businesses; book keeping

An excess of resources in an organization that allows for redundancy and the quick deployment of personnel is referred to as

organizational slack

Which of the following are terms used when creating the overarching goals of an organization?

overall strategy; company mission; statement of purpose

perhaps as important as the entrepreneur's skills in a particular area is the need for the entrepreneur to have _______ for starting a business in that domain

passion

Which of the following contribute to a personal skill sets?

past work experience; family history; hobbies; current work experience

___________ motivations come from the individuals themselves

personal

There are successful business people in all __________ categories

personality

the entrepreneur's local area may be doing well, while other areas around the country are doing

poorly

the triggers for starting a business can come from either _________ or negative stimuli that occur in the individual's life

positive

successful business ideas are determined by the following

the creativity of the entrepreneur

Silicon valley and Boston's 128 corrisor are well known for:

providing a growing tax revenue base; generating new employment with entrepreneurial ventures; providing a basis to the area's economic vitality

_____ measures are tied to the strategic goals of the organization but have more to do with the feel of the organization?

qualitative

Which category of metric is easily measured?

quantitative

which of the following would be classified as threats to operational financing

rapid expansion costs; high development costs; and entrepreneurial team with a low asset base; high inventory needs

Resource-based analysis examines which of the following criteria that products or services much meet?

rare; valuable; durable

Entrepreneurs need to have a(n) ________ vision of what resources are necessary in order to be successful

realistic

Economic __ are the financial gains earned from an asset or capability that are in excess of the ordinary returns in that particular industry

rents

_____________ analysis is a theoretical approach an practical methodology that examines business functions in terms of whether a product or service meets the criteria of being rare, durable, nonsubstitutable, and valuable simultaneously

resource-based

conducting a ______ analysis will help entrepreneurs better understand what creates the business' advantage

resource-based

What is the predominant approach for analyzing unique resources and capabilites

resource-based perspective

All new businesses have an inherent amount of _______ associated with the starting and operation of the business

risk

The first step in entrepreneurship is:

the desire to own and operate a business

The world bank estimates that one of the strongest factors in growth of any nation's GNP is the presence of entrepreneurial _________ enterprises

small- and medium-sized

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 non financial resources, for gap analysis, which of the following are to be considered for a new business?

special contacts with suppliers; physical location of the business; special contact

Most capabilities and assets listed by the firm are _____ for the industry

standard

step 2 of the process of identifying a sustainable competitive advantage involves splitting the list of assets into which of the following two categories?

standard assets; unique assets

What starts out as a competitive advantage for one company may become a

standard practice within that industry

Which step involves developing a complete list of tangible and intangible assets?

step 1

The firm's ___ is how the firm plans to use the competitive advantage of the business to accomplish its mission

strategy

_______ products perform a similar function or achieve the same result, but are not a precise imitation

substitute

An effective mission statement and ________ competitive advantage are inseparable

sustainable

Which of the following statements are true regarding education as it relates to skill sets?

technology skills aquired through education can be particularly valuable; knowledge gained from formal education provides a skill set; an opportunity that uses your education is another source of a business

List in order the four logical steps in developing the firm's strategy

the firm's mission statement is employed to specify where the firm is to compete and how a detailed strategic plan is laid out specifying a series of resources and capabilities the strategy meets the criterion of being defendable for some length of time the strategy needs to be constantly reevaluated

Which of the following are true regarding metrics?

the metric should realize positive movement; metrics are best established at the founding of the business; metrics are evaluated on a recurring basis

Which of the following are examples of the impact of the mission statement?

the mission may impact how broad a geographic range the firm will serve; the mission will impact the major ways in which the firm will compete; the mission will impact the market in which the firm will compete

Which of the following descriptions are characteristics of entrepreneurial firms?

the number of employees will not be expected to grow beyond 100; the start-up is self-funded or closely funded; the operation is designed in the image of the founder

Which of the following are reasons why owners are a great asset to a new business?

their dedication; their personal involvement

which of the following statements are true about the normal or ordinary parts of a business

they must be done and done well; there is little reason to do any of the normal or ordinary parts of the business better than the average industry

each type of business started will require different ___________ frames

time

When starting a business, one must understand the relationship between ___________ and the expected return

time commitment

which of the following are examples of family experiences that build knowledge and can grow into a new business opportunity

tracing the family history; working on the home; maintaining the family property; cooking with family members

examining _____ around the region, nation, or world that may not have reached a particular laction is one way of identifying business opportunities or gaps

trends

Which capabilities are the source of motivation to convince customers to change to do business with your new business

unique

"--" refers to the ability to gain extraordinary returns for the business's product or service

valuable

If the customer is willing to pay extra because of the unique resources and/or capabilities, then it is considered

valuable

The business owner whose business is both a(n) _______ and a(n) _________ is difficult to beat

vocation; avocation

Which of the following are questions an entrepreneur should address regarding education?

what courses taken were particularly enjoyable? have you taken specialized training in any specific area? have you attended any unusual education programs?

Which of the following are probable questions potential business owners should ask themselves regarding hobbies?

what is it about this hobby that is exciting? What specific skills were required of the hobby? What products/services were used in these hobbies?

A company is more likely to make money if the mission statement is:

widely know; memorable; succinct; clear

people should start a business that they ____.

will enjoy

What source of skills typically has direct applicability to the pursuit of a new business?

work experience

What significant, historical event marked the beginning of the decline of entrepreneurial businesses in the united states?

world war II

The practice, example, and the skill of the founder is the ___________ part of entrepreneurial business development

art

What is the most important single factor in the business's success?

the business owner

Large businesses often have ________

extensive written procedures

A _________ plan is a plan to exit the business that allows investors to take advantage of growth

harvest

T/F: it is advisable for an entrepreneur to ensure that sufficient financial resources are available prior to the start of a business

true

T/F: Men are the largest single group of business founders

False

T/F: today, women-led businesses are formed at a rate 50 percent lesser than that of men-led businesses.

False

Which of the following are provided by the economic gardening program in the United states?

Financing for the venture; tax incentives; support classes

Which periodical is published annually and documents the 500 largest corporations by sales in the United States?

Fortune

Which of the following are reasons for the recent growth in the number of women starting new businesses?

Frustration with the glass ceiling; greater control over work-life balance

Which act officially organized the united states small business adminitration (SBA)?

Small Business Act

Why do individuals decide to state a new business?

The desire to be one's own boss

In what time period did the United States see a decline in large multinational firms and a rise of new opportunities for entrepreneurial businesses?

The late 1970s to early early 1980s

Which of the following statements regarding entrepreneurial businesses are correct?

They are generally dependent on a single person or a few individuals; they have limited flexibility in responding to emergency issues such as the need to hire replacements if the company loses key individuals

Identify a characteristic of venture capital startups

They are inherently risky operation whose growth is dependent on the exploitation of unknowns in the market

Which of the following statements is true of venture capital start-ups?

They are often formed as high-tech ventures consisting of unique characteristics

Which of the following statements about incubators are correct?

They provide many critical services to new businesses; they provide office machines and basic furniture to new businesses; they provide common receptionists to new businesses

Identify the features of circumstance motivators

They tend to result in more of a defensive positioning; they result from environmental changes

new business owners need to be sure that the level of risk is consistent with their _______, _____, and ____________.

background, values, family situation

______ ________ is rational decision making that is constrained by the background and history of the person making the decision

bounded rationality

Which of the following is a true statement regarding the closure of military bases in the united states?

cities with base closings experienced increases in new business; cities with base closings experienced higher income growth; cities with base closings offered tax breaks and programs to support new business development

identify the websites that help a company reach out to a wide community online to get funding and often advice in the process of raising those funds

crowdfunder.com; kickstarter.com

Economies of scale is the condition that allows the long-run average cost to continue _________ as production __________.

downward; increases

T/F: the great depression of the 1930s was harder on larger more mature businesses than on entrepreneurial businesses

false

Entrepreneurs need to consider both the benefits and drawbacks to hiring __________ members

family

Businesses in which ownership and employment are centered around a family are referred to as

family businesses

Which of the following are reasons why entrepreneurial businesses are successful?

fewer layer of management; tend to be more focused than large corporations; free to place energy into satisfying the needs of customers

The success of entrepreneurial businesses occurs because they are simply more _________ than their larger corporate counter parts

focused

Small business development assistance centers provide

free advice to new businesses

A business plan for a small business typically runs __________ pages long

from 15 to 25

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

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

personality tests can _____.

help one better understand one's traits and tendencies

The enneagram's nine personality types include which of the following?

helper; reformer; achiever

Which of the following statements is true regarding the great depression of the 1930s?

it encouraged industrial concentration

Which of the following are true about organizational slack?

it is not a characteristic of typical entrepreneurial ventures; it provides larger firms flexibility; it refers to an excess of resources

People in an entrepreneur's network can help by providing __________ to a new business

legitimacy

potential entrepreneurs must understand their level of tolerance to

risk

Which of the following are advantages that small, new businesses have?

small businesses are owned and run by the same person(s); small businesses fill niches that large firms simply cannot afford to fill; small businesses can respond quickly to opportunities or threats as they arise

An entrepreneur's support and resources are typically ______ to the individual and the location.

specific

_____ include key suppliers, customers, and employees. These individuals are critical to the success of a business

stakeholders

Which of the following is a big advantage of starting one's own business?

the business owner can be the boss

Which of the following statements are true regarding robber barons?

they dominated the industrial sectors; they took advantage of the economies of scale; they were responsible for some of the great abuses in business

Which of the following are characteristics of venture capital-backed firms?

they either start or grow quickly to employ a relatively large number of employees; they are formed with a harvest plan in place; they have a developed organizational structure

Which of the following are goals of the business plan for a new entrepreneurial business?

to provide investors with necessary information; to be a guide to managing the business; to provide self-evaluation