MGMT 350

A firm can best increase its product-based legitimacy by:

using voice mail or answering machine to provide customer service.

High-growth ventures and big businesses generally do not succeed without small businesses offering supporting services.

1) True

One of the major issues identified for second career entrepreneurs is keeping personal finances out of the business.

1) True

One way entrepreneurs display passion is by being persistently focused on the business.

1) True

Several models exist for the life cycle of the small business firm. Each divides the stages a bit differently.

1) True

The majority of new businesses are run by a solo entrepreneur.

1) True

Being a small business makes managing organizational culture harder than in larger businesses.

2) False

Compared to a corporation, a sole proprietorship is usually considered more legitimate by customers, suppliers, and investors.

2) False

Gathering resources for a business is easier during economic recessions than during economic boom times.

2) False

Ninety percent of all new businesses fail within two years.

2) False

Self-employed persons are not referred to as entrepreneurs.

2) False

The disadvantage of the BRIE model is that it does not mention the management of resources.

2) False

The three most popular types of rewards for small business owners are personal growth, building wealth, and creating products.

2) False

Which of the following is not one of the five skills for managing relations with the environment?

Bootstrapping

Which of the following is the most appropriate approach to building organization-based legitimacy?

Creating a company's own code of ethics

Which of the following refers to the three levels of professionalization?

Expert, specialized, and minimalized

Which of the following is true of a franchise?

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

Which of the following describes the significance of an overall growth strategy?

It represents a driver of the variety of entrepreneurship.

________ 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 categories does the majority of small businesses fall under?

Lifetime/Part-time firms

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

Prevention focus

Which of the following stages of the business life cycle do most small business never go through?

The takeoff stage

The text defines an entrepreneur as:

a person who owns or starts an organization, such as a business.

The questions on who will be hurt and how much, who will benefit and how much, what does the owner or the firm owe others, and what do others owe the owner and the firm are typically asked when:

a variety of alternatives is to be generated to handle a moral problem.

According to the BRIE model, ________ sets up a business as a firm.

boundary

One emerging way to focus on your immediate environment is called the ________. These are the elements that make up the settings most helpful to promoting entrepreneurship.

entrepreneurial ecosystem

Tina runs her consultancy business from her home. Working from home allows her to set her own schedule and take time off at her convenience so that she can be with her family. The fact that Tina gets more time with her family can be categorized as ________ reward.

flexibility

Roller-Tell Inc., a major supplier of components to the automobile industry, has recently confronted a crisis as one of its manufacturing units has been forcefully shut down by the local union. As a result, the company has been unable to meet the customer demands appropriately. As the owner of the business, the most appropriate way for the firm to handle this crisis is to:

make the process of dealing with the problem as open as possible.

Regulatory focus is a mix of two internal focuses, ________ focus and ________ focus.

promotion; prevention

When compared to large businesses, small business owners start their business typically to take advantage of:

their ability to scan the environment better.