module1: small business environment

Which of the following are the rewards that are important to small business owners? (Check all that apply.)

A livable income Flexibility

Which of the following statements about entrepreneurial passion are correct? (Check all that apply.)

An entrepreneurs' passion can inspire key stakeholders. It has multiple benefits, such as increasing one's commitment to a business. It is displayed by being persistently focused on the business.

Which of the following statements regarding professionalization are correct? (Check all that apply.)

Businesses that are average or better are considered professionalized. Professionalized businesses follow standard business practice. Three are three levels of professionalization: expert, specialized, and minimalized business.

Which of the following are names of groups within the population of entrepreneurs? (Check all that apply.)

Buyer Founder Heir

Which of the following are one of the three ways passion is displayed by an entrepreneur? (Check all that apply.)

By being persistently focused on the business By being absorbed by the business's tasks and concerns By looking at the challenges of the business in a creative way

______ are forms of business-related expertise.

Competencies

______ refers to the way that newly created goods, services, or firms can hurt existing good, services, or firms.

Creative destruction

Family members contribute which of the following? (Check all that apply.)

Employees Capital Support network

Which of the following statements about role conflict are true? (Check all that apply.)

Employees should be treated the same as family members Decisions should be based on business necessities It is at its worst when a business owner fails to recognize it

______ economies are nations where the major forces for jobs, revenues, and taxes come from farming or extractive industries like forestry, mining, or oil production.

Factor-driven

Which of the following are advantages of a family-owned business? (Check all that apply.)

Families are a major source of funds and personnel. They are a self-perpetuating source for future small businesses. Decision making can be easier and quicker when made by a tight-knit group of family members.

______ planners do not really plan, since their actions are dictated by their routines.

Habit-based

______ entrepreneurship is the form of entrepreneurship in which a person or group owns a for-profit business.

Independent

True or false: Perseverance is an important characteristic of entrepreneurs.

True

Which of the following statements about factor-driven economies are correct? (Check all that apply.)

Wages tend to be lower in these nations Examples of these economies are Pakistan, Jamaica, and Venezuela These nations have little manufacturing and rely on farming, mining, and forestry

A set-aside is

a government contracting fund earmarked for particular kinds of firms, such as small businesses, minority-owned firms, or women-owned firms.

Cognition is defined as

a person's way of perceiving and thinking about his or her experience.

Comprehensive planners

develop long-range plans for all aspects of a business.

Competencies are

forms of business-related expertise.

______ is the behavior of continued effort to achieve a goal.

perseverance

______ are publications that target specific industries and professions.

trade magazines

Which of the following statements about the business life cycle are correct? (Check all that apply.)

Knowing the life cycle stages can help better understand a small business. There is a lot of predictability in the business growth process. The key issues, actions, and lessons for each stage are different.

The term " " refers to small businesses that reflect the idea that these are the kinds of firms expected to be found on the most important road of a typical American city.

Main street businesses

______ is the extent to which a firm meets or exceeds the standard business practices for its industry.

Professionalization

______ competencies are the ability or skill of an entrepreneur at finding expendable components necessary to the operation of a business such as time, information, location, financing, raw materials, and expertise.

Resource

Which of the following are myths regarding starting a business? (Check all that apply.)

Students don't have the skills to start a business. There isn't enough financing.

Which of the following are stages in the business life-cycle? (Check all that apply.)

Success Resources maturity Existence

income rewards

The money earned by owning one's own business

Resource competencies are the

ability or skill of an entrepreneur at finding expendable components necessary to a business such as financing, raw materials, and expertise.

Reactive planners

are completely passive, waiting for cues from the environment to determine what actions to take.

Habit-based planners

base their plans and actions on their routines.

The ______ life cycle is the sequence or pattern of developmental stages any firm goes through during its life span.

business

______ is a person's way of perceiving and thinking about his or her experience.

cognition

______ planners develop long-range plans for all aspects of a business.

comprehensive

The internal environment

consists of people and groups within the boundary of a firm, including the owners, managers, employees, and board members of the firm.

The external environment

consists of the forces, institutions, and people (i.e., the rest of the world) outside the boundary of a firm.

Liability of newness is the set of risks faced by firms

early in their life-cycles that come from owners' lack of knowledge about their business and by customers about the new business.

______ is the first stage of a small business life cycle, where an entrepreneur moves from thinking about starting the business to actually starting a business.

emergence

Arrange the developmental stages of a business life cycle in the correct order. (Place the first stage on top.)

emergence existence survival success resource maturity

Businesses that are characterized by offering innovative products, services, or business models are often referred to as _______ businesses, while those that imitate what other firms are doing are often called ______ businesses.

entrepreneurial, small

The sum of all the forces outside the firm or entrepreneur is known as the ______.

environment

______ is the second stage of the business life cycle marked by a business being in operation but not yet stable in terms of markets, operations, or finances.

existence

Key business functions are

fundamental activities common to all businesses such as sales, operations, and human resources.

Opportunistic planners

generally start with a goal and look for opportunities to achieve it.

In the context of pursuing opportunities in other countries, refers to buying products or services from a place that is not an individual's home country and selling them in the individual's home country.

importing

Independent entrepreneurship is the form of entrepreneurship

in which a person or group owns a for-profit business.

The existence stage of the business life cycle is

marked by a business being in operation but not yet stable in terms of markets, operations, or finances.

Liability of ______ is the set of risks faced by firms early in their life cycles that comes from a lack of knowledge by the owners about the business they are in and by customers about the new business.

newness

______ planners generally start with a goal and look for opportunities to achieve it.

opportunistic

The kind of business the owner(s) would like to have, from the perspective of how fast and to what level they would like the firm to grow is known as

overall growth strategy.

______ is the ability to stick with some activity even when it takes a long time and its outcomes is not immediately known.

perseverance

Critical-point planners

plan around the most important aspect of a business first, act on it, and then consider if additional plans are needed.

______ focus is an entrepreneur's attention to minimizing losses, with a bias toward inaction or protective action to prevent loss.

prevention

______ focus is an entrepreneur's attention to maximizing gains and pursuing opportunities likely to lead to gains.

promotion

______ planners are completely passive, waiting for cues from the environment to determine what actions to take.

reactive

______ entrepreneurs are those who begin their businesses after having left, retired, ore resigned from work.

second career

The international term for small businesses is

small and medium enterprise (SME).

A business action that has been widely adopted within an industry or occupation is known as a ______ business practice.

standard

The ______ environment is made up of those components that a firm deals with directly such as customers, suppliers, consultants, media, and interest groups.

task

A firm's overall growth strategy describes

the kind of business the owner(s) would like to have, from the perspective of how fast and to what level they would like the firm to grow.

Small and medium enterprise (SME) is

the recognized international term for small businesses.

Growth rewards

the rewards individuals earn from facing and beating challenges

The environment is

the sum of all the forces outside the firm or entrepreneur.

Creative destruction refers to

the way that newly created goods, services, or firms can hurt existing goods, services, or firms.

True or false: Small businesses offer surprising opportunities to large businesses and entrepreneurial high-growth ventures.

true

The emergence stage is the first stage of the small business life-cycle,

where an entrepreneur moves from thinking about starting a business to actually starting a business.

Standard business practices are actions that have been widely adopted

within an industry or occupation.

Which of the following is one of the key elements of entrepreneurial culture? (Check all that apply.)

Passion for fairness. Passion for customer. Passion for innovation.

A family business is a firm

in which one family owns a majority stake and is involved in the daily management of the business.

Which of the following statements about second career entrepreneurs are correct? (Check all that apply.)

They start businesses due to being laid off after corporate mergers and downsizing. They sometimes retire early and decide they want to work rather than retire. About 33% decide they want to become self-employed.

Which of the following statements about perseverance are correct? (Check all that apply.)

It is a powerful contributor to an entrepreneur's success. It is a type of optimism. Trying again is the behavior behind perseverance.

Which of the following are true of main street businesses? (Check all that apply.)

They are the opposite of "Wall Street" businesses. They include lifestyle firms, traditional small businesses, and high-performing small businesses.

Which of the following are one of the two challenges typical to family businesses? (Check all that apply.)

Succession Role conflict

Which of the following statements regarding small business' effects on job creation are correct? (Check all that apply.)

They are key employers for offering jobs to people with atypical work histories or needs. They are responsible for creating 65.9 of the new jobs since 2000. Start-ups in the first two years of operations are responsible for virtually all the net new jobs in the U.S.

Which of the following is a type of entrepreneur.

founder

______ is an intense positive feeling an entrepreneur has toward the business or the idea behind the business.

Passion

Passion, perseverance, promotion-prevention focus, and planning style are

aspects of behavior that successful entrepreneurs have in common.

The ______ environment consists of the forces, institutions, and people (i.e., the rest of the world) outside the boundary of a firm.

external

All of the following are one of the six key elements of entrepreneurial culture except

passion for suppliers

Which of the following is part of the BRIE model? (Check all that apply.)

Intention Boundary Resources

Which of the following statements about the BRIE model are correct? (Check all that apply.)

It outlines the activities that need to take place to get the venture going. Its four elements are boundary, resources, intentions, and exchange. Its purpose is to help entrepreneurs start their business.

Which of the following statements regarding starting a small business are correct? (Check all that apply.)

Only 14.7% of 15 to 25 years old were taking steps. Fifty-six percent of those aged 15 to 25 want to start a business. There are a number of myths about starting a business that stop people.

Which of the following are entrepreneurial behaviors that most successful entrepreneurs display? (Check all that apply.)

Passion Planning style Perseverance Promotion/prevention focus Professionalization

______ planners plan around the most important aspect of a business first, act on it, and then consider if additional plans are needed.

critical-point

True or false: In comparison with personality characteristics, sociological characteristics have little or no effect on entrepreneurs.

false

______ are government contracts earmarked for particular kinds of firms, such as small businesses, minority-owned forms, or women-owned firms.

Set-asides

______ are fundamental activities common to all businesses such as sales, operations, and human resources.

Key business functions

A ______ is a firm in which one people who are related owns a majority stake and is involved in the daily management of the business.

family business

Which of the following statements about sociological characteristics are true? (Check all that apply.)

They relate to the social groups to which he or she belongs such as family, gender, religion, and race. Some of groups are protected from discrimination by federal laws. Some social groups lack protection, but have powerful influence over entrepreneurs

True or false: Small businesses are not attractive to local and state governments because they avoid hiring people with inconsistent employment histories and those who only look for part-time work.

false

The task environment

is made up of those components that a firm deals with directly such as customers, suppliers, consultants, media, and interest groups.

Which of the following statements about the new opportunities that are generated by small businesses are correct?

Small business owners help communities stand on their own through offering a variety of businesses Small business owners are presented with opportunities to improve their life, wealth, and move upwards in the US economy and society They provide opportunities for people who face problems fitting into existing firms and immigrants who face limitations They offer communities to enjoy goods and services they may not otherwise, since they adapt to local needs

______ is the form of entrepreneurship involving the creation of self-sustaining charitable and civic organizations or for-profit organizations that invest significant profits in charitable activities.

Social entrepreneurship

In the context of pursuing opportunities in other countries, refers to taking services and products made in an individual's home country and selling them in other countries.

exporting

flexibility rewards

The capacity of business owners to structure life in the way that best suits their needs

Truly entrepreneurial business are characterized by being ______, while small businesses are ______ by nature.

novel, imitative

______ conflict is the kind of problem that arises when people have multiple responsibilities, such as parent and boss, and the different responsibilities make different demands on them.

role

Which of the following statements about a prevention focus are correct? (Check all that apply.)

It works well in an established or a poor industry It is one of two internal or regulatory focuses Its intent is on minimizing losses, with a bias toward inaction or protective action

Which of the following statements about a promotion focus are correct? (Check all that apply.)

It can yield better results in richer, dynamic, uncertain environments or industries. It is one of the two internal or regulatory focuses. It has a bias toward maximizing gains, thus pursuing opportunities likely to lead to gains.