Mgmt 275
47) An example of a valuable library resources is IBISWorld, which is a(n): A) business publication B) academic jourmal C) Census Bureau publication D) trade journal E) database of industry-related information
E
42). is the process of creating something new, which is central to the entreprencurial process. A) Creative destruction B) Modernism C) Execution D) Creativity E) Innovation
E
12) Which of the following is not a recommended guideline for writing a business plan? A) To maké the best impression, a business plan should follow an unconventional stricture and stand out in some dramalic way B) A business plan needs to project a sense of anticipation and excitement about the possibilities that surround a new venture. C) For most plans, 25 to 35 pages is sufficient. D) A business plan should look sharp, but not a lot of money should be spent on the physical appearance of the plan. E) Shy away from using a a lot of boldfaced type, colors when preparing business plan. italics, clip art, and different font sizes and
A
2) According to the textbook, which is the proper sequence of events in developing successful business ideas? A) opportunity recognition, feasibility analysis, development of a business plan B)feasibility analysis, opportunity recognition, development of a business plan C) development of a business plan, opportunity recognition, feasibility analysis D) feasibility analysis, development of a business plan, opportunity recognition
A
22) Suppose you are a Small Business Development Center counselor and you're looking at the personality profiles of five potential entrepreneurs. Based on the profiles, which individual has the most desirable mix of personal characteristics to become a successful entreprencur? A) Candidate A: visionary, energetic, moderate risk taker B) Candidate B: seeks recognition, self-starter, creative C) Candidate C: visionary, high risk taker, energetic D) Candidate D: high risk taker, nchievement-motivated, networker E) Candidate E: tolerant for ambiguity, sceks recognition, motivated primarily by money
A
33) Which of the following statements about target markets is incorrect? A) There is a distinct difference between a firm's industry and its target market. B) The challenge in identifying an attractive target market is to find a market that's large enough for the proposed business but is yet small enough to avoid attracting larger competitors. C) By focusing on a target market, a firm can usually avoid head-to-head competition with industry leaders and can focus on serving a specialized market very well.
A
40) A computer-generated image of an invention that displays the invention as a 3D model that can be viewed from all sides and rotated 360 degrees is called a(n): A) virtual prototype B) concept visualization C) abstract prototype D) virtual design E) usability test
A
43) In regard to patent activity (issuance), which of the following statements is correct? A) Small businesses outperform their larger counterparts B) Small businesses underperform their larger counterparts. C) Small businesses and large businesses are relatively equal. D) Small businesses are not active in patent activity E) Large businesses are not active in patent activity.
A
5) Each quarter, Cindy Anderson, who owns a chain of card and gift shops, does a detailed analysis of her firm's competitors. This analysis is called: A) competitor analysis B) challenger analysis c) strategic analysis D) participant analysis E) industry analysis
A
8) The document that does the best job of introducing potential investors and other stakeholders with the business opportunity the firm is pursuing and how it plans to pursue it is the: A) business plan B) feasibility analysis C) opportunity analysis D) industry analysis E) marketing plan
A
10) There are two primary audiences for a business plan: investors and other external stakcholders and: A) officials with the SEC B)a firm's employees C) a firm's competitors D) a firm's customers E) public relations firms
B
19) Sharon Simms is a very capable computer engineer. Recently, she noticed a problem that computer engincers have, and thought of a solution to the problem that might represent an opportunity for a new software product. Sharon's idea for a new software product is an example of a(n). discovery. A) chance B) serendipitous C) traditional D) conventional E) opportune
B
19) Which of Porter's five forces is most directly influenced by the following factors: number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs? A) threat of new entrants B) rivalry among existing firms C) threat of substitutes D) bargaining power of buyers E) bargaining power of suppliers
B
20) Which of the following was not identified in thc textbook as one of the common traits and characteristics of entreprencurs? A) has a strong work ethic B) intolerant of ambiguity C) visionary D) promoter E) decisive
B
11) Which of the following is not an individual, group or institution that normally reads a company's business plan? A) board of directors B) potential alliance partners and major customers C) state and local government officials D) key recruits for jobs with the new firm E) rank-and-file employees
C
25) Which of the following statements is incorrect regarding the personal characteristics of entrepreneurs? A) Some people think that entrepreneurs have a "sixth sense" that allows them to see opportunities that others miss. B) The extent and depth of an individual's social network affects opportunity recognition. C) Several studies show that prior experience in an industry actually blinds an entrepreneur to the recognition of new opportunities in the same industry, D) Creativity is the process of generating novel or useful ideas. E) The corridor principle states that once an entrepreneur starts a firm, he or she begins a journey down a path where "corridors" leading to new venture opportunities become apparent.
C
31) Which of the following is not an attribute of an attractive industry? A) is young rather than old B) is not crowded C) is late rather than early in its life cycle D) is important to the customer E) is fragmented rather than concentrated
C
32) A ___________ market is a place within a larger market segment that represents a narrower group of customers with similar needs. A) secondary B) primary C) target D) parallel E) minor
C
4) Cameron Smith recently surveyed 200 of his classmates to get a sense of the demand for a new software product he is working on. Collecting data via a survey you administer yourself is referred to as: A) direct research B) derivative research C) primary research D) secondary research E) initial research
C
4) Once a firm decides to enter an industry and chooses a market in which to compete, it must gain an understanding of its competitive environment. This challenge can be undertaken by completing a(n): A) business analysis B) industry analysis C) competitor analysis D) strategic analysis E) market analysis
C
42) What section of the business plan deals with the day-to-day operations of a company? A) financial plan B) marketing plan C) operations plan D) industry analysis E) executive summary
C
5) Which of the following statements regarding business success (or failure) rates correct? A) After four years, 15 percent of new businesses are still open. B) After four years, 25 percent of new businesses are still ypen. C) After four years, 50 percent of new businesses are still Open. D) Two out of three businesses fail within the first four years. E) Nine out of ten businesses fail within the first four years.
C
6) Apple Inc. is a firm that is proactive, innovative and risk-taking. From this description, we can most accurately conclude that Apple has a high level of: A) enterprise focus B) innovative intensity C) entrepreneurial intensity D) creative intensity E) innovative concentration.
C
9) Which of the following is not one of the four areas of feasibility analysis discussed the textbook? A) product/service feasibility B) financial feasibility C) societal feasibility D) organizational feasibility E) industry/market feasibility
C
10) feasibility is an assessment of the overall appeal of the product or service being proposed. A) Consumer B) Industry/market segment C) Industry/market D) Product/service E) Purchaser/end-ser
D
19) Which of the following is not one of the five common myths about entrepreneurs? A) Entrepreneurs are tenacious. B) Entrepreneurs are moderate risk takers. C) Entrepreneurs should be young and energetic. D) Entreprencuns love the spotlight. E) Entrepreneurs are bom not made.
D
20) If a startup pioneers an industry or a new concept within an industry, the name recognition the startup establishes may create a formidable nontraditional barrier to entry referred to as a(n): A) unique business model B) aggressive supremacy C) competitive superiority D) first-mover advantage E) aggressive tactical advantage
D
26) Frank Patterson started a firm in 2011 that creates and manufactures accessories for Apple iPhones. He started with four accessories, and after several months added three new accessories that have been very successful. The fact that Frank recognized the opportunity for the three new accessories only after he started his firm and become immersed in the iPhone accessory industry is an example of the at work. A) opportunity tenet B) opportunity rule C) chance rule D) access principle E) corridor principle
D
42) According to the textbook, the three different types of competitors a business will face are: A) potential, direct, and upcoming B) indirect, fleeting, and future C) serious, cautious, and future D) direct, indirect, and future E) potential, fleeting, and indirect
D
49) A(n) is a physical or digital repository for storing ideas. A) suggestion bank B) idea depository C) suggestion pool D) idea bank E) proposition pool
D
9) The three primary reasons that people become entrepreneurs and start their own firms are to: A) gain prestige, realize financial rewards, and eliminate risk in their lives B) do what they were "born" to do, be their own boss, and gain prestige C) take big risks, be their own boss, and do what they were "born" to do D) be their own boss, pursue their own ideas, and realize financial rewards E) take advantage of government subsidies, pursue their own ideas, and realize financial rewards
D
2) A(n) is a favorable set of circumstances that creates a need for a new product, service, or business. A) idea B) scheme C) design D) proposal E) opportunity
E
26) Which of the following statements is incorrect regarding the executive summary of a business plan? A) It is a short overview of the entire business plan. B) In many instances an investor will first ask for a copy of a firm's executive summary and will request a copy of the full business plan only if the executive summary is sufficiently convincing. C) It is arguably the most important section of the business plan. D) It should not exceed two single-spaced pages. E) The executive summary is the first thing that should be written in preparing a business plan.
E
6) Which of the following is an example of an industry-level factor as opposed to a firm-level factor? A) a firm's assets B) a firm's culture C) the teamwork among a firm's employees D) a firm's products E) threat of substitutes
E
9) There are two primary audiences for a business plan: A) a firm's employees and officials with the SEC B) a firm's customers and its competitors C) investors and other external stakeholders and public relations firms D) officials with th SEC and public relations firms E)a firm's employees and investors and other external stakeholders
E
18) Some industries, like the athletic shoe industry, are dominated by a small number of firms with strong brands. These jpdustries are difficult to break into without spending heavily on advertising. The barrier to entry that the firms in these types of industries have erected is referred to as: A) government and legal barriers B) capital requirements C) product differentiation D) cost advantages independent of size E) access to distribution channels
C
35) Most of Jacob's ideas come from interacting with coworkers, friends, his spouse, his parents, and other people that share the same beliefs that he does. Jacob is getting most of his ideas through: A) weak-tie relationships B) horizontal-tie relationships C) strong-tie relationships D) multiple-tie relationships E) vertical-tie relationships
C
38) Firms that pursue a(n). strategy compete for market share on a country-by-country basis and vary their product or service offerings to meet the demands of the local market. A) inclusive B) universal C) multidomestic D) contemporary E) worldwide
C
3) is the process of determining whether a business idea is viable. A) Feasibility analysis B) Opportunity recognition C) Viability analysis D) Achievability analysis E) Scenario analysis
A
4) An opportunity has four essential qualities: A) attractive, timely, durable, and anchored in a product, service, or business that creates or adds value for its buyer or end user B) practical, opportune, appropriate, and anchored in a product, service, or business that is efficient and effective C) realistic, striking, timely, and anchored in a product, D) attention-getting, attractive, timely, and anchored in a product, service, or business that service, or business that is timely creates or adds value for its buyer or end user E) attractive, durable, resilient, and opportune
A
24) The Sawy Entrepreneurial Firm feature in Chapter 3 focuses on Bill Gross, and how a company he was leading, Knowledge Adventure, made a 180-degree turn on the positioning of a product. According to the feature, Gross and his team made the change as a result of: A) observing how customers acted when buying their product B) studying industry trends C) conducting Internet research D) administering a concept test and a buying intention's survey E) hiring consultants to provide them advice
B
25) The ________ is a short overview of the entire business plan. A) summary statement B) execulive summary C) managerial review D) founder's introduction E) abstract:
B
27) Paul Hempken just spoke to an igvestor, who is interested in his business idea, Paul offered to send the investor a copy of his full business plan, but the investor asked for a short overview of the business plan instead. What portion of his business plan should Paul send the investor? A) marketing plan B)executive summary C) elevator pitch D) company description E) operations plan
B
48) To make sure that its customers are satisfied and to probe for new product ideas, Intuit routinely sends employees to the facilities of their customers. This technique for generating new business ideas is called: A) brainstorming B) day-in-the-life research C) focus group D) survey E) customer advisory board
B
5) Shelly Ford is starting a fashion boutique in an upscale mall near San Antonio. She wants to open her store during the time period in which a business like hers can realistically enter the new market. Shelly is trying to open her business while the is open. A) safe harbor B) window of opportunity C) portal of entry D) doorway of opportunity E) safety zone
B
8) Netflix is an established firm that encourages and emphasizes entrepreneurial behavior throughout its various divisions. According to the textbook, Netflix practices: A) tactical entrepreneurship B) corporate entrepreneurship C) strategic entrepreneurship D) business entrepreneurship E) enterprise entrepreneurship
B
39) Which of the following statements is incorrect regarding the marketing plan section of a business plan? A) The marketing plan focuses on how the business will market and sell its product or service. B) The two most important items to include in a marketing plan are (1) overall marketing strategy and (2) the nuts and bolts of marketing a firm's product in terms of product, price, promotion, and place. C) The best way to describe a company's marketing plan is to begin by talking about its competitors. D) A firm's marketing strategy refers to its overall approach for marketing its products and services. E) A firm's overall approach to marketing typically boils down to how it positions itself in its market and how it differentiates itself from its competitors.
C
27) The ability to notice things without engaging in deliberate search is referred to as: A) cognitive alertness B) cognitive awareness C) managerial alertness D) entrepreneurial alertness E) individual awareness
D
3) According to the textbook, opportunities are: A) casy to spot B) casy to spot in fast growing industries but tough to spot in slow growing industries C) easy to spot in the manufacturing sector but tough to spot in the service sector D) tough to spot E) neither easy nor tough to spot
D
36) Alex has a number of casual acquaintances that he interacts with infrequently. The relationships that Alex has with these people are referred to as: A) strong-tie relationships B) moderate-tie relationships C) lateral-tie relationships D) weak-tie relationships E) multiple-tie relationships
D
38) Operating leverage is highest in companies that have: A) a service rather than a manufacturing emphasis B) virtually no fixed costs C) equal variable costs and fixed costs D)a high proportion of variable costs relativd to their fixed costs E) a high proportion of fixed costs relative to their variable costs
D
40) Katherine Chapman recently launched a firm in the clothing industry, targeting teens ages 13-17. One thing Katherine thinks she has accomplished is producing products that have universal appeal, so she will not vary her approach from country to country. Katherine is pursuing a strategy. A) universal B) multidomestic C) contemporary D) global E) home
D
41) A prototype is: A) a form of opportunity recognition B) a tool for evaluating the industry a new firm plans to enter C) a financial model D) the first pliysical depiction of a new product E) a tool for evaluating the organizational prowess of a new firm
D
23) Corry Pierce is investigating the feasibility of a new type of electronic game targeting middle school and high school-age boys. Which of the following is an example of "gumshoe research" that Corry could conduct to get a sense of the likely demand for his game? A) Download electronic games industry reports from the Internet. B) Administer a buying intentions survey. C) Administer a concept test. D) Look at the Web sites of a number of companies that sell electronic games. E) Spend several days in electronic games arcades and stores to observe the types of games tha attract the interest of middle school age and high school age boys.
E
34) are characterized by frequent interactions that form between coworkers, friends, and spouses. A) Balanced relationships B) Weak-tie relationships C) Lateral-tie relationships D) Moderate-tie relationships E) Strong-tie relationships
E
39) Shelly James recently launched a firm in the fruit drink industry, and has already exported her fruit drinks to 9 differeat countries. One thing that Shelly's firm is doing is that it is varying the tastes of the fruit drinks it sells on a country by country basis to meet the demands of the local markets. Shelly's firm is pursuing a_ strategy. A) global B) home C) universal D) contemporary E) multidomestic
E
41) According to the textbook, the first step in a competitor analysis is to: A) develop a marketing plan B) develop the strategic plan C) study the strength of the industry D) study the external environment E) determine who the comaetition is
E
7) Sarah Thorton is the founder of a company named Extreme Sports Apparel. The company makes apparel products for extreme sports enthusiasts such as rock climbers, triathletes, parasailors, and BMX bikers. Sarah wants her company to pursue a high level of corporate entrepreneurship. To achieve that goal, Sarah's firm should be: A) innovative, risk averse, and take a "wait and see" posture B) taking a "wait and see" posture, innovative, and risk taking C) proactive, not innovative, and risk taking D) taking a "wait and see" posture, not innovative, and risk averse E) proactive, innovative, and risk taking
E
7) Which of the following statement is incorrect about business plans? A) Writing a business plan forces a firm's founders to systematically think through each aspect of their new venture. B) For most new ventures, the business plan is a dual-purpose document used both inside and outside the firm. C) A business plan is typically 25 to 35 pages long. D) A large percentage of entrepreneurs do not write business plans for their new ventures. E) The business plan should be written while the feasibility analysis is being completed
E