Fina 323 midterm

An overall strategic approach in which a firm patterns itself on other firms, with the exception of one or two key areas is referred to as _____.

incremental innovation

Changes in competitors, sales and profits in an industry over time are referred to as:

industry dynamics.

A start-up cannot:

provide positive cash flows immediately.

A business that is created by separating parts of an operating business into a separate entity is called a:

spin-off.

For a small business that is just starting out, all strategy starts with _________.

the owner

Value benefits are important because:.

They lead to higher prices

T 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

A _____ is an organization that provides financial, technical, and managerial help to start-up businesses.

business incubator

In an imitative strategy, an entrepreneur:

does more or less what other are already doing

A legal agreement that allows a business to be operated using the name and business procedures of another firm is referred to as a:.

franchise

A web page in which entries are posted in reverse chronological order is a known as a:

Blog

Part-time entrepreneurs should separate and balance business and home. This separation and balance is pertinent to which aspect of the BRIE model?

Boundary

When an individual buys product like shoes, music, or cell phones online, it is referred to as _____ type of e-commerce.

Business-to-consumer (B2C)

Which of the following is the second step of a small business' strategic planning process?

Considering the customers and the benefits to offer them

The limitations imposed on a business's property by neighborhood groups are referred to as:

Covenants

* Which of the following is an example of part-time business?

Dorothy, who works in her small bakery for less than 30 hours a week

The process of investigating a business to determine its value is called:.

Due diligence

The single greatest hurdle to a successful start-up is obtaining and maintaining sufficient cash to support both operations and growth. Which of the following is needed by a successful start-up to overcome this hurdle?

High margins

Sam used his management skills to start a loans advising website. He started seeing clients at his home before it grew into a well-established company in the next ten years. Which of the following entrepreneurial methods did he use in the beginning, to reduce the financial risk of his start-up?

Lean method

The practice of and ability to seize upon novel opportunities that become apparent during the conduct of business is known as:

Leveraging contingencies

An auction in which the low bid gets the business or wins is known as a _____ auction.

Reserve

A(n) _____ is the business term for the population of customers for a business owner's products or services.

Market

Which of the following are the two major classification systems that code industries?

NAICS and SIC

A _____ is a narrowly defined segment of the population that is likely to share interests or concerns.

Niche market

Which of the following is a cost benefit?

Organizational practice

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

Permanence

A listed, live connection to a different website, which in turn displays a similar link to the first website is called a(n):

Reciprocal link

Which of the following ensures that a new business will be critically examined by outsiders who have no vested interest in the owners' idea, product, or service?

Securing outside investment

A combination in which the whole is greater than the sum of its component parts refers to:

Synergy

Which of the following is true with regard to home retail?.

The ability to do the work away from home and employer minimizes potential conflicts