STS Quiz 1

24. According to the latest statistics, small businesses have created _____ percent of the new jobs.

A. 75

25. B&B Music can be described as a(n)

B. entrepreneurial team.

A prepackaged business bought, rented, or leased from a company is called a

C. franchise

3. Idea people are not particularly driven by _____, but they are driven by _____.

C. great wealth; having their idea achieve greatness

6. Identify the trait which all entrepreneurial personality types have in common

D. Hard work

9. The energy and focus needed to bring a business into existence relates to which of the following competencies?

A. Determination

23. Bart appears to express an interest in which of the following careers?

A. Habitual

_____ entrepreneurs are owners for a lifetime, sometimes in one business, and sometimes across several firms.

A. Habitual

19. The two fastest growing minority groups represent the largest segments of minority business owners. These are

A. Hispanics and Asians.

Why might a cell phone that can play music MP3s be a better approach than a dedicated MP3 player?" pertains to which of the following questions?

A. Is your product or idea innovative?

Identify the two hurdles that people need to overcome to move from thinking about owning their own business to achieving it

A. Moving from inaction to action and taking the right action

Truly entrepreneurial businesses are characterized by __, in their products, services, or business models

A. Novelty

18. You assume, as the business owner, that you need to do all the work, make all the sales calls, and solve everybody's problems. This refers to which major pitfall that business owners can become victim to when trying to become more innovative?

A. Obeying rules that do not exist

The U.S. government agency that helps people start business is the

A. Small Business Administration

29. Where can Jamie go to get some help with his business idea?

A. Small Business Development Center

13. An entrepreneur's relationships and contacts with others is termed as

A. a social network.

25. Mandarin is a restaurant which has opened recently. People from all over town flock to Mandarin to find out how good it is. This gives a big boost to the restaurant's initial business. But it causes the other restaurants in the area to lose business temporarily. The way in which Mandarin hurts existing restaurants is an example of

A. creative destruction.

18. The ability of business owners to structure life in the way that suits their needs best refers to

A. flexibility rewards.

B&B MUSIC 21. Being an idea person, Bart would not be driven by

A. great wealth.

1. Following the BRIE model in starting a business, the entrepreneur creates a boundary within the environment, setting his firm apart from the rest of the environment. In doing this, the entrepreneur gives the firm a(n)

A. identity.

27. Social entrepreneurship

A. involves creating new charitable and civic organizations which are financially self-sufficient.

1. Researchers in the field of entrepreneurship and small business believe that _____ behavior is the most basic and important entrepreneurial behavior.

A. opportunity recognition

8. The three general forms of legitimacy that you can develop are based on

A. products, people, and organization.

2. Like classic entrepreneurs, small business owners are all of the following EXCEPT

A. risk takers.

3. Those parts of the environment that directly and consistently touch on the firm are called the

A. task environment.

According to the text, small business involves __ people and has its owner managing the business on a day-to-day basis.

B. 1-50

15. Which popular innovation strategy can be just as effective and much more likely in the real world, than business opportunities that result from radical innovations?

B. Adapting

20. Which of the following statements about certification for women- and minority-owned small businesses is false?

B. Certification is for every women- or minority-owned small business.

_____ is a process of producing an idea or opportunity that is novel and useful, frequently delivered from making connections among distinct ideas or opportunities.

B. Creativity

Which of the following is a characteristic of a small business?

B. Focus is on efficiency

24. Brad appears to be leaning toward which of the following careers?

B. Harvest

14. Which of the following are owners with an exit plan?

B. Harvest entrepreneurs

15. _____ entrepreneurs are people who generally have another job that is their primary one.

B. Occasional

18. _____ refers to the process of intergenerational transfer of business.

B. Succession

10. Which of the following is a product-based legitimacy indicator?

B. Testimonials

22. The industry and market component of the feasibility study should include which of the following components?

B. The competition

23. The BRIE model can help an individual deal with one of the biggest hurdles in starting a business, which is

B. being inactive.

1. A loner, often socially isolated, a hard worker, a fast learner, and a risk taker seeking wealth represents the profile of a(n)

B. classic entrepreneur.

4. According to the text, all of the following factors lead business owners to their business ideas EXCEPT

B. government regulation.

20. Funding invested for a share of a firm or given as loans or credit from family, friends, and other businesses used to help start or grow a firm is known as

B. informal capital.

6. The two ways to build social capital are through

B. legitimacy and social networking.

8. The firm that obtains the rights to use a particular piece of intellectual property is the

B. licensee.

31. In order to start "For Kidz" successfully, Jamie needs all of the following elements to come together EXCEPT

B. recruitment.

22. Being a contemporary classic entrepreneur, Brad would exhibit all of the following traits EXCEPT being

B. socially isolated. C. an average income seeker.

13. "S" in the creativity tool SCAMPER stands for

B. substitute.

3. You might see a business in an area that intrigues you because you learn that there is a growing market for this business and you think of a way to expand on the opportunity. Which of the following factors is considered the business idea behind this?

C. A similar business

26. Which aspect of entrepreneurship refers to being in-tune with one's market?

C. Customer-focus

5. Many owners of consulting companies took their own skills and launched businesses by selling those skills to other companies who needed them. This is an example of which of the following factors leading to business ideas?

C. Education and expertise

20. Which of the following is a three-step process that helps people make better and more ethical decisions?

C. Ethical decision-making

16. Which of the following entrepreneurs employ about 58 percent of America's total workforce?

C. Family business owners

20. _____ means the extent to which the idea is viable and realistic, and the extent to which you are aware of internal and external forces that could affect your business.

C. Feasibility

11. This question looks at the specific individuals, groups, or organizations you would approach first to buy your product or service.

C. How would you define the best initial set of customers?

9. _____ refers to certification for having met a standard of quality that is consistently evaluated around the world.

C. ISO

7. _____ means that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors.

C. Legitimacy

4. Which of the following personality types is often very risk-averse, preferring to build wealth through careful planning and action?

C. Managerial entrepreneur

People starting high-growth ventures

C. Need to know how to seek and obtain external financing

Which of the following refers to the eventual size of the market, which can range from small, local, or niche market to something used by millions or even billions?

C. Potential for growth

9. _____ is a payment to a licensor based on the number or value of licensed items sold.

C. Royalty

21. According to Sageworks, in 2008, amid a recession, which of the following represented the most profitable industries for small businesses?

C. Service industries

12. Which of the following legal forms of organization-based legitimacy indicators would be the least legitimate?

C. Sole proprietorship

18. _____ is an approach to operating a firm or a line of business which identifies, creates and exploits opportunities to make a profit in a way that can minimize the depletion of natural resources, maximize the use of a recycled material, or improve the environment.

C. Sustainable entrepreneurship

15. Which of the following is NOT a key to success in electronic networking?

C. Taking time to develop networks

4. Which of the following is an example of the general environment?

C. The economic sector

21. What is the goal of a feasibility study?

C. To assess if an idea can be profitably brought to market.

According to the SBA, about __ of new firms with employees survive four years, and for owner only firms this rate is __ percent surviving four years

C. Two-thirds; 50

The resource constrained sector

C. are firms that have lots of innovative ideas but lack the funds to bring them to market.

24. The measure of the number of visitors to your Web site who have actually made a purchase from you is known as

C. conversion rate.

11. Having trademarks, service marks, patents, or copyrights are product-based

C. intellectual property.

5. All of the following are true of social capital EXCEPT

C. it is not associated with the concept of "goodwill."

16. Rejecting existing ideas, and presenting a way to do things differently refers to _____ strategy.

C. radical innovation

8. 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 called

C. resource competencies.

What percent of firms getting help in incubators were still going at four years?

D. 87%

16. When faced with a crisis, what is the first step that a small business owner should follow?

D. Admit you are in trouble

14. According to the text, what is the most important part of social networking that would make a difference in how you would conduct business every day?

D. Being willing to reciprocate if asked

Identify the most numerous and widely available type of firm, ranging from low to moderate levels of innovation and growth.

D. Economic core sector

The key market knowledge for a small business

D. Focuses on the need to know how to dominate the market and grow dramatically and quickly

17. _____ rewards are what people get from facing and beating or learning from

D. Growth

A facility which offers subsidized space and business advice to companies in their earliest stages of operation is called a __

D. Incubator

10. Which of the following relates to the skills necessary to identify and exploit elements of the business environment that can lead to profitable and sustainable business?

D. Opportunity competencies

19. Which of the following is NOT a myth about small businesses?

D. There is no flexibility when you own your own business.

Why are small businesses considered the economic core of society?

D. They are the most numerous and most widely available type of firms.

12. Which of the following looks like the simplest question but is actually the hardest one?

D. What is the market and its size?

6. According to the entrepreneurs studied in PSED, which of the following factors was the most frequently mentioned source that led to their business idea?

D. Work experience

23. The future action plan component of the feasibility study includes which of the following elements?

D. Writing a business plan

17. According to the gold standard for crisis leadership, all of the following are steps to follow in a crisis EXCEPT

D. desegregate crisis management with the everyday management of the firm.

2. If an owner of a fast-food restaurant notices that customers are asking for substitutions of healthier ingredients to food items, she may be motivated to contact her suppliers to ask about getting new ingredients, changing the menu, and increasing the healthy offerings on the menu to keep customers satisfied. This is an example of

D. entrepreneurial alertness.

22. According to the BRIE model, in order to start a business, you need all of these elements to come together EXCEPT

D. experience.

12. According to the text, there are three levels of professionalization. These are

D. expert, specialized, and minimalized.

11. For those businesses that do get started, the amount of _____ is what distinguishes the more successful from the less successful firms.

D. expertise

30. If Jamie gets "For Kidz" up and running, he could be described as all of the following EXCEPT

D. franchisor.

17. All of the following are major pitfalls that business owners can become victims of when trying to become more innovative EXCEPT

D. getting the "bandits on the train."

2. The _____ of a firm consists of those people inside the boundary—the owner, any employees, and any other owners or board members of the firm.

D. internal environment

7. There are certain fundamental activities that all businesses must perform, which are called

D. key business functions.

7. A _____ is a legal agreement granting you rights to use a particular piece of intellectual property.

D. license

17. Two challenges typical to family businesses are

D. role conflict and succession.

19. Green retailing is

D. selling products that have a better environmental footprint.

5. All of the following observations are true of the salesperson type of entrepreneur EXCEPT

D. they are most concerned with their wealth.

Identify the characteristic of a high-tech venture

Delegation is essential