Exam 1 small bus mgmt

Which of the following is true about business-to-business (B2B) transactions?

B2B e-commerce is larger than B2C e-commerce

One of the quickest and simplest ways to screen an idea for business potential is through the

IDEO screen

SCAMPER tool

Substitute Combine Adapt Modify Put to another use Eliminate Reverse

Which of the following is a way to start business with established customers?

a spin-off

Which of the following statements is true about a vision statement?

a tagline or a slogan is a good way to present vision statements

A(n) _____________ plan is a document designed to detail the major characteristics of a firm- its product or service, its industry, it's market, it's manner of operating and its financial outcomes with an emphasis on the firms present and future

business

_________ means taking business away from one's employer

cannibalizing

__________________ is used in the "bird in the hand "strategy where instead of planning a firm and then looking for resources, the entrepreneur first looks at their available resources and thinks about how to use them

effectuation

____________ is the ability to notice things that have been overlooked

entrepreneurial alertness

The sum total of forces outside of an entrepreneur and a firm is called the

environment

The three principles that are absolutely critical in the process of effectual reasoning are: Affordable laws, strategic partnerships, and leveraging contingencies

false

Which of the following is one of the ways to get into small business ownership?

franchising

A great way to start thinking about minimizing waste and environmental degradation is to run ones thoughts about a business through a

green audit

The ________ Rate is the percentage of people who buy out of the total population of people approached

hit

Access problems for women- and minority-owned small businesses crop up most often as discrimination

in financing

One variant of the traditional business plan is the ___________ plan consisting of company organization sections, with revised cover letter, title page, executive summary, and table of contents to reflect the differences

informational

Patents and trademarks are examples of

intangibles

___________ refers to original works like inventions, visual and performing artworks, books, and computer programs

intellectual property (IP)

The life cycle stage in which a product or service is being invented is known as

introduction stage

A ________ is a legal agreement that grants the rights to use a particular piece of intellectual property

license

For part-time businesses, _____ refers to the documented permission from the government to run a business.

licensing

About 53 percent of all small businesses fall into the category of

lifetime/part-time firms

Innovations are far more likely to come from

new, small businesses

A ________ is a narrowly defined segment of the population that is likely to share interest or concerns

niche market

Which of the following is a disadvantage of a start-up?

no revolving credit from suppliers or banks

The metastrategy of a high-growth venture is

novelty

Getting organized and registered-which creates the boundary-is an example of an

operations activity

When considering how to organize the business you are creating, one consideration is ____________, which is related to legitimacy

permenance

_________ refers to the impression of a long-term continuity a business gives others

permenance

__________ ___________ is an organization-based indicator of legitimacy

physical setting

Which of the following pitch deck categories is sometimes given in the form of a users experience?

problem slide

_________ is also called a blue ocean strategy

pure innovation

All entrepreneurs have at least four sets of resources: access to capital; their own skills and abilities; their own knowledge; and their network of friends and business associates

true

Big business often has trouble with innovations, but small, new, businesses are more likely to see new revenues in innovations

true

The ____________ is where do you think about what you need to do to cause your new product or service to come into existence

causal model of entrepreneurship

The ___________ of an organization will be a part of its task environment

competitors

______________ is funding a business online through the collective involvement of others who provide donations, loans, or investments

crowdfunding

Three product-based legitimacy indicators are

customer service, certifications, and testimonials

_________ is not for everyone and every situation

delegation

_______ are aimed at mass markets- situations in which nearly everyone might buy a product or service

differentiation strategies

Crowdsourcing is funding a business online through the collective involvement of others who provide donations, loans, or investments

false

For the successor of the family business, ownership transfer is best accomplished after the death of the founder

false

In entrepreneurship, every good idea is a viable business opportunity

false

In order to make profits from a small business, the company needs to make an actual product

false

The elevator pitch is much shorter than a vision statement a tagline

false

In deciding whether to make the move from part-time to full-time entrepreneurship, the key question is usually

financial

Which of the following is a primary goal for performing due diligence?

finding any inefficiencies, unnoticed opportunities, waste, and mismanagement

Innovation-driven economies are

focused on high-value-added manufacturing but are marked by a very large service sector

A ___________ is a legal agreement that grants rights to use a particular piece of intellectual property. In return, you are required to pay the owner of the license

license

The _________ is the most important element of social capital to customers and supporters of a business, such as bankers, lawyers, and suppliers

owner

Most entrepreneurs start out working ___________ on their new business

part-time

__________ refers to working for 35 or fewer hours a week

part-time

An entrepreneur's ____________ is most likely to inspire key stakeholders like potential investors, employees, or subcontractors

passion

This stage of the business life cycle occurs once the firm is established in its market

success stage

___________ deal with the people who will take over, what roles they will fill, and what supports they will receive

succession plans

In an imitative strategy, an entrepreneur

does more or less what others are already doing

The motivations, cognitions, attitudes, aptitudes, and behaviors that lead to a propensity To create solutions to problems or seeking opportunities to do something new or better is called

entrepreneurial mindset

An opportunity that makes it possible for a new business to gain a foothold in the market is called an

entry wedge

A situation that occurs when a persons values are in conflict, making it unclear whether a particular decision is the right thing to do is considered an

ethical dilemma

Taking products and services made in your home country and selling them in other countries is called

exporting

The general environment is part of the _________ environment

external

________ is the general name for the line of product or service being sold, or the firms in that line of business

industry

_____ is the idea and actions that explain how a firm will make its profits

strategy

Selling the product or service in a limited area, for a limited time is known as

test marketing

Business plans are essential for external legitimacy and internal understanding

true

Every business faces risks in the real world, so every business plan needs to spend some time addressing them

true

For corporations, certification for businesses owned by women or minority is handled by organizations that are not affiliated with the government or big business

true

Founders of small businesses often find it very difficult to give up decision-making authority to family members

true

Uber and Airbnb are examples of

unicorns

Getting the business organized and registered is an example of ________ competency

boundary

Key business functions are activities common to all businesses such as sales, operations, accounting, finance, and Human Resources.

true

Gaining legitimacy in small businesses is especially difficult for entrepreneurs seen as "different" — women, minorities, home-based businesses, or businesses started by young people

true

One of the three ways in which passion is displayed is by persistently focusing on the business

true

One of the ways to practice the business of innovation is to invite someone who is never included before in a meeting for solving your problem

true

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

true

The absolute highest price that a buyer would be willing to pay is called the "point of a difference" in the negotiation process

true

The competency suggested by boundary relates to the key business functions, and include sales, operations (also called production), accounting, finance, and Human Resources.

true

The concerns of bankers are cash flow and cash cycle, assets/collateral base, and long-term prospects

true

The feasibility of an idea is the extent to which it is viable and realistic

true

When studying the business costs of ethical failures in large businesses, the more damaging costs receive less executive attention

true

The major ways to cope with competitive pressures is by undertaking some combination of strategic actions and tactical actions

truw

______________ is an ethical model that suggest people get their ideas of right and wrong from their family, religion, education, and community

universalism

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