business entre midterm
"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.
Undercapitalization refers to:
not having enough money available to the business to cover shortfalls in sales or profits.
Which of the following is true of home businesses?
It provides highly variable income.
Which of the following is one of the most common behaviors found in successful entrepreneurs?
passion
John owns a small business that does computer servicing. Which of the following would represent boundary as mentioned in the BRIE model in John's computer servicing business?
The office in which John works
Researchers in the field of entrepreneurship and small business believe that _____ behavior is the most basic and important entrepreneurial behavior.
opportunity recognition
Which of the following is the primary goal for performing due diligence?
"Finding any inefficiencies, unnoticed opportunities, waste, and mismanagement"
"Emily likes travelling, but every time she checks for tickets and a decent hotel, she gets overwhelmed with the amount of information she gets. She wants people to have a hassle-free travel experience. As a result, she starts a small business that filters information based on people's requirements and provides them with just the right amount of information they need about the place they are travelling to, the best available hotel, and the cheapest air fares. Which of the following is most likely to be the source of Emily's business idea? "
A personal interest
Which of the following is most likely to be achieved as the result of starting a business with established customers?
Immediate cash flows
Which of the following problems is closely related to role conflict?
Shortage of time
A system of values people use to determine whether actions are right or wrong is referred to as _____.
ethics
Equity refers to:
the ownership of a portion of a business.
An ethical model conceived by the German philosopher Immanuel Kant which suggests that there is a code of right and wrong that everyone can see and follow refers to _____.
universalism
Bootstrapping refers to:
using low-cost or free techniques to minimize the cost of doing business.
In an attempt to become more innovative, a major pitfall that business owners are most likely to become victim to is:
using the first good idea as a business opportunity.
Which of the following is a characteristic of a traditional small business?
It is often a one-site business.
Which of the following is a reason why more new businesses start on a part-time basis?
The cost of entry and exit is low.
"According to Graham Wallas' description of the creative process, a creative thought includes a(n) _____ stage. "
incubation
Which among the following is a critical-point planner?
Amanda does not have a very long-term approach to planning and she plans only for those business aspects that are of paramount importance.
Which of the following terms best represents something a business owns that has economic value or is expected to have economic value in the future?
Asset
"A McDonald's franchise includes the right to use McDonald's many trade names, specifications of the product to be sold, operating methods, marketing plan, and national advertising. Franchisees pay to the franchisor both an up-front fee to obtain the franchise rights and a percentage of gross sales. Which of the following types of franchising does this situation illustrate? "
Business format franchising
"Which of the following legitimacy-building features does having trademarks, service marks, patents, or copyrights typically indicate?"
Intellectual property
Which of the following is most likely to be an advantage of a start-up?
It begins with a clean slate.
Which of the following statements is true about a family council?
It helps to maximize communication in the succession process of family businesses
Which of the following is true of corporate entrepreneurship?
It involves bringing new products or services to a market.
Which of the following is true of the growth of a typical traditional small business?
It levels off after operations settle into a consistent, money-making pattern generating income to provide a living for the owner.
Which of the following holds true for product distribution franchising?
It provides the franchisee with specific brand named products, which are resold by the franchisee in a specified territory."
Which of the following describes the significance of an overall growth strategy?
It represents a driver of the variety of entrepreneurship
Which of the following is a characteristic of a lifestyle firm?
It typically has sales of $25,000 a year or less.
Which of the following best describes conflict of interest?
Jenson misses his deadlines at his full-time day job because he works late nights as a part-time music producer.
Which of the following is one of the prime challenges faced by most second career entrepreneurs?
Keeping personal Finances out of the business
Which of the following is a free way to get one's name and business known?
Making informed comments on blogs and discussion forums related to one's business
"Martin runs a successful house painting business. He runs his business out of his garage, which he got converted into an office space. Martin, who had previously worked as a house painter in another company had good know-how of how to run a house-painting business. After a storm destroyed public properties in his neighboring town, he contracted with the mayor of that town to fulfill any painting jobs required during the town's reconstruction. In order to meet this demand and expand business, he hired more house painters.According to the BRIE model, which of the following provides industry-specific knowledge to martin?"
Martin having worked in a house-painting company before starting his own business
Which of the following is best avoided in handling a business crisis?
Mixing crisis management with the everyday management of a firm
Which of the following statements about entrepreneurial teams is true?
Most entrepreneurial teams are family related
Which of the following is a reward universally mentioned by entrepreneurs?
Personal growth
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
Which of the following is a myth about small businesses?
That a small business will never have enough financing
Erion Inc. is an e-commerce company that sells its food products under the brand name Heal Meal. Its business partners have planned to enter into a strategic alliance with a well-reputed retailer in the Asian market in order to expand its operations to the Asian continent. Which of the following is a reason for the company having a lack of organization-based legitimacy in the Asian market?
The absence of a physical location to conduct business
"Mark has developed a novel product and is worried that it might get copied. To address this concern, Mark must address which of the following aspects of the I2P analysis? "
The extent of IP protection for the product
Which of the following is an element of a firm's task environment?
The firm's corporate partners
Which of the following is typically a part of a firm's general environment?
The politics and laws of a country
"For new entrepreneurs, which of the following would be a good reason to undertake a part-time business first before a full-time one? "
To gain basic experience
Which ethical model typically advocates seeking the greatest good for the greatest number of people?
Utilitarianism
"Working for a very large organization in the tractor manufacturing industry, John always heard complaints from customers about the parts and services aspects of the business. Taking an early retirement, John started his own business to specifically address the many customer complaints he had been hearing. Which of the following is most likely to be the factor that led John to the business idea? "
Work experience
The future action plan component of the feasibility study includes which of the following elements?
Writing a business plan
Which of the following is a disadvantage of buying a franchise?
You give up control of marketing and operations.
Effectuation refers to:
an approach used to create alternatives in uncertain environments.
Innovation-driven economies:
are focused on high-value-added manufacturing but are marked by a very large service sector.
"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 equipments hired on lease. This technique used by Thomas to overcome resource constraints in his start-up firm is best known as _____."
bootstrapping
"Jake is a small business owner of Macho Doors, a manufacturer and installer of garage doors. His business has earned the reputation as a reliable, trustworthy business that makes high quality, long-lasting doors. However, with rising gasoline and wood prices, Jake is finding it hard to maintain the existing quality standards. If he continues with the existing quality standard, his profit margins will go down and he will not be able to hike his employees' salaries; if he inserts panels of lower quality wood the reputation of his business will be lost. The situation that Jakes faces is typically described as a(n) _____."
ethical dilemma
Regulatory focus is a mix of _____ focus and _____ focus.
promotion; prevention
"The owner of Elixir Force Inc. received the most prestigious corporate award and was also titled as ""the most outstanding new entrepreneur of the year."" In the context of people-based legitimacy, this is typically an indicator of:"
public recognition.
"The ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business such as time, information, location, financing, raw materials, and expertise is known as_____."
resource competencies
Adam owns a software development company. He and his team developed and licensed new software that could help many organizations strengthen their Web security. Any organization that wishes to use Adam's licensed software would most likely have to pay him in the form of a(n) _____.
royalty
"Government contracting funds which are earmarked for particular kinds of firms, such as small businesses, minority-owned firms, women-owned firms, and the like, are known as _____."
set-asides
"By efficiently managing external relations, small businesses typically aim at creating _____."
social capital
A business action that has been widely adopted within an industry or occupation is known as _____.
standard business practice
The ratio of the value of a firm to its annual earnings is called:
the earnings multiple
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.
Which of the following is most likely to increase the odds of successes for a start-up?
Choosing a business that produces high margins
"Activities common to all businesses such as sales, operations (also called production), accounting, finance, and human resources are known as _____."
Key business functions
Which of the following is most likely to be the best indicator of successful start-ups?
Level of experience of the founders
The extent to which a firm meets or exceeds the standard business practices for its industry is known as _____.
Professionalization
The _____ of an organization will be a part of its task environment.
competitors
"The _____ of a firm refers to the forces, institutions and people (i.e., the rest of the world) outside its boundary."
external environment
Small businesses are usually:
imitative in nature.
A person or organization offering the rights to use a particular piece of intellectual property is referred to as the:
licensor
Which of the following represents a disadvantage of the consignment approach?
Long amount of time before payouts
"Cathy has created a website for her shop of homemade chocolates and scented candles. Apart from traditional retailing, she sends e-mails to the people in her neighborhood. She also informs customers about various promotional offers through pamphlets. Which of the following techniques best describes Cathy's overall marketing method? "
Multichannel marketing
____ requires an entrepreneur to assess whether the situation faced is one that is the same as it has been traditionally or if it is changing
Opportunity identification process
"As a part of her I2P analysis, Amanda conducted a survey in which she asked her potential consumers about their interests. She did the survey to match market demand to a new product idea she has. Amanda addresses which of the following aspects of the I2P analysis? "
The reasons for customers to buy the product
Which of the following is true of creative business owners?
They question and challenge the way things appear.
"When an individual buys products like shoes, music, or cell phones online, it is referred to as _____ type of e-commerce. "
business-to-consumer (B2C)
"Christopher is a hard-working entrepreneur who looked into all the details of his small gaming software business. He focused on all aspects of the business from the initial launch, promotion, and marketing aspects to the final set up. He finds planning convenient and works according to a plan. Christopher is a(n) _____."
comprehensive planner
The first step in LaRue Hosmer's model for ethical decision making is:
defining the moral dimensions of a problem.
"Josh, an electronics retailer, noticed that the e-commerce business was booming. He started an online shopping Web site to take advantage of this surge in business. As a result, his business attracted more customers from all across the country. This reflects Josh's: "
entrepreneurial alertness
Documentation and demonstration offered for products are product-based legitimacy indicators of _____.
experiential supports
A situation that occurs when all the major functions of a firm are conducted according to the standard business practices of its industry is known as _____.
expert business professionalization
"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
"A nation where the major forces for jobs, revenues, and taxes come from farming or extractive industries like forestry, mining, or oil production is a(n):"
factor-driven economy.
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
"Social capital is the major component of what accountants call _____, and it can be found on business's balance sheet."
goodwill
In lifestyle firms:
growth tends to quickly level off.
_____ is the degree of attention a target market pays to an idea or organization.
Mindshare
Which of the following relates to the skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business?
Opportunity competencies
Sandra has a product idea. She has researched about all the competing products and the companies that produce them. The research helps Sandra to address which of the following aspects of the I2P analysis?
The market and its size
A business run by the individual who owns it is referred to as a(n) _____.
owner-managed firm
Many owners of consulting companies took their own skills and launched businesses by selling those skills to other companies or individuals who needed them. This is an example of which of the following sources of business ideas?
Education and expertise
A(n) _____ focus refers to an entrepreneur's attention on maximizing gains and pursuing opportunities likely to lead to gains.
Promotion
"According to the SCAMPER tool, a feature that allows customers to order directly from a Web site rather than visiting a store is an example of: "
substitution.
"Born and raised in India, Rashmi has always enjoyed Indian cooking. As a matter of fact, cooking was her passion and she always enjoyed reading, learning, and experimenting with different ethnic cuisines. Ever since Rashmi's family moved to the United States, her cousins, friends, and other people at dinner gatherings have always commented that Rashmi should start a catering business. Realizing that her American friends may not be able to handle or like the Indian food because of its spiciness, Rashmi decided to make changes to the recipes to suit the local taste. Rashmi is seriously contemplating whether she should start a catering business Tastes of India. Rashmi appears to be applying which element of the SCAMPER tool in her entrepreneurship ideas? "
Modify
"Which of the following approaches yields better results in richer, dynamic, uncertain environments or industries?"
Promotion focus
"If entrepreneurs realize that all the traditional applications for their products have disappeared and that they have surplus products, which of the following elements of the SCAMPER tool are they most likely to employ? "
Put to other uses
"When a bookstore starts to sell videos, music, and coffee as well, it uses which of the following elements of the SCAMPER tool? "
Combine
Which of the following is true as an advantage of businesses run by a group of tight-knit family members?
Communication-based integration is most effective in family-owned business
Which of the following planners do best in terms of getting a start-up launched, keeping it going, and making a living from it?
Comprehensive planners
Which of the following types of entrepreneurship typically concentrates on innovation and customer-focus among all aspects of entrepreneurship?
Corporate entrepreneurship
"_____ 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