quiz 5

Four general factors contribute to the success rate of small business:

- managerial competence, - luck, - hard work-drive-dedication, - careful analysis of market conditions

A written summary of the business strategy and its implementation plan is known as

A BUSINESS PLAN

After success in the market for executive pet care, Maverick Pet Partners moved to high energy pets that need runs and fitness training as opposed to just being let out to a fenced yard. MPP identified

A Niche

What is the difference between a small business and a business owned by an entrepreneur? - An entrepreneur's business depends upon the personal involvement of the entrepreneur in the day-to-day management of the business; small businesses may not. - An entrepreneur's firm may be of any size, while a small business must be too small to have a significant impact on its environment. - An entrepreneur's business must be new, while a small business may have been in existence for any length of time. - An entrepreneur's business may be privately or publicly owned; a small business must be privately owned. - All of the above

All of the above

Which of the following is a strategic challenge that faces a small business? - Raising Capital, - Finding a niche market, - Writing a business plan, - emphasizing distinctive competences - All of the above

All of the above

Amelia Whalen wants to start her own equestrian center from scratch. To determine whether this is a good idea, she needs to find the answers to which of the following questions? : - Who are my customers, and where are they?, - Who are my competitors, and where are they?, - How can I differentiate my product from that of my competitors?, - In what quantities and at what price will my customers buy my service? - All of these

All of these

Which of the following questions is important for entrepreneurs who are starting a business from scratch? A. who are my customers B. who are my competitors C. what quality will my customers buy D.What price will customers pay E. ALL OF THESE

All of these

Which of these is a correct comparison of large and small businesses?

Big businesses are less efficient at producing and delivering speciality products than small businesses.

Which of the following is a true statement? - Buying an existing business, rather than creating one from scratch, frees the entrepreneur from the prior owner's errors. - Buying an existing business is less risky than starting a new business from scratch. - Most entrepreneurs buy an existing business, rather than starting a new business from scratch. - All of these. - Only "buying an existing business, rather than creating one from scratch, frees the entrepreneur from the prior owner's errors" and "buying an existing business is less risky than starting a new business from scratch."

Buying an existing business is less risky than starting a new business from scratch

Which of the following is a role performed by a successful small business?

Creation of new jobs

Dr. Ting developed the BPro blood pressure watch. He sold three of his four clinics to finance production. He now sells BPro in Singapore and the United States. He is an example of a(n)

Entrepreneur

Todd wants to start a new business. With which of the following methods of starting a new business will he pay a share of the income from the business in return for the use of such things as trademarks and business formulas?

FRANCHISING

The most significant disadvantage to franchising as a means of acquiring a business is

HIGH START-UP COST

When revenue from gaming went flat in the US, Wynn Resorts opened casinos in Macau, islands close to China. Assume that Wynn faced little competition in Macau at the time the decision was made and that gaming was already very popular particularly amongst increasingly affluent Hong-Kong and Chinese residents. Wynn Resorts was benefitting from

IDENTIFYING NEW MARKETS

Hundreds of small businesses under contract make parts for honda. This is an example of which of the following roles of a small business...

Importance to large business.

Which of the following is an example of a company that has identified a new market?

Low-dose Bayer aspirin introduced into the Chinese market

What percentage of businesses in the United States is classified as small businesses?

MORE THAN 90%

In which of the following industries are you LEAST likely to find a small business owner performing well due to a lack of economies of scale?

Manufacturing

There are job scams that target people who need to work from home. They get people to pay $600 for supplies to make jewelry and then rejects everything made as not meeting the company standards. This scam operates in the ______ industry.

Manufacturing

Ellie makes handmade gift bags, candles, and jewelry in her spare time and sells them to her friends. Ellie is participating in the

Manufacturing industry

Maverick Pet Partners was founded by a NYC lawyer looking for a career change; it caters to the area's exclusive clientele. MPP found a _____

Niche

Which of the following is NOT generally considered to be a role performed by small businesses?

Provision of capital for expansion of large businesses

John does not like his current job. He has an offer for a good job, with better pay, but it requires relocating to an area with which he is not familiar. John is reluctant to change jobs because of

RISK PROPENSITY

Which of the following is the most common entry method for owners of new businesses?

STARTING A NEW BUSINESS FROM SCRATCH

Mike Bergen worked in corporate human relations. He left to start his own executive placement firm He operates in the

Services Industry

Which of the following is a true statement?

Small businesses are about as likely to innovate as large businesses

If an entrepreneur were considering a new business, which of the following would be a DESIRABLE characteristic of the industry being considered?

THE NEW COMPANY WILL SELL A NEWLY PATENTED INVENTION THAT IS NOT YET WELL KNOWN BUT IS EXPECTED TO DOMINATE THE MARKET

Kristen was interested in opening a restaurant, but the local market was already saturated. Instead, Kristen decided to begin a business preparing meals directly in customers' homes. Which of the following distinctive competencies of small business is Kristen displaying?

The ability to identify new niches in established markets.

A manufacturing firm with common stock that is publicly traded has 100 employees and $10 million in sales. The firm would not qualify as a "small business," according to the definition in your text, because - The firm is not privately held - The sales are too high - Manufacturing firms are not usuallyy small - The number of employees is too great - All of these

The firm is not privately held

A manufacturing firm with common stock that is publicly traded has 100 employees and $10 million in sales. The firm would not qualify as a "small business," according to the definition in your text, because-

The firm is not privately owned

Why should a new entrepreneur, who has to be careful how she spends every penny, join the National Federation of Independent Businesses (NFIB)?

The organization offers excellent networking opportunities.

Which of the following is the main reason why small businesses experience success in the wholesale industry?

They are able to develop personal working relationships with several sellers and buyers

Which of the following is the main reason why small businesses experience success in the wholesale industry?

They are able to develop personal working relationships with several sellers and buyers.

The aspects of a business that the firm performs at a higher level than its competitors are known as the firm's

distinctive competencies

The idea that manufacturing costs per unit decrease as the number of units produced increases is known as:

economies of scale.

Which of the following explains why small businesses are generally more effective than large companies in specialty:

the dollar size of the market is too small for large companies

Service businesses are the fastest growing segment of small business enterprises primarily due to:

the size of initial capital investment required/ small resource requirement and high market demand

____ are a group of small investors seeking to make profits on companies with rapid growth potential.

venture capitalists.