Question 1

As described in the textbook, a Type A idea involves

Accepted Answer

A)  a technically new process. 
B)  performing an old function in a new and improved way. 
C)  using prior work experience as a basis for starting a new business. 
D)  providing customers with a product or service absent in their market but available elsewhere. 
A)  a technically new process. 
B)  performing an old function in a new and improved way. 
C)  using prior work experience as a basis for starting a new business. 
D)  providing customers with a product or service absent in their market but available elsewhere.

Question 2

Entrepreneurs' choices that affect the nature of a small firm and its basic direction are known as

Accepted Answer

A)  market-based decisions. 
B)  tactical decisions. 
C)  strategic decisions. 
D)  focus-based decisions. 
A)  market-based decisions. 
B)  tactical decisions. 
C)  strategic decisions. 
D)  focus-based decisions.

Question 3

In analyzing the industry environment of the particular field into which Charles was about to enter in business, he found that there existed a fierce rivalry between the competitors that were currently in the business. This would offset the desirability of entering the industry in which of the following ways?

Accepted Answer

A)  negatively 
B)  positively 
C)  no effect 
D)  cannot be determined 
A)  negatively 
B)  positively 
C)  no effect 
D)  cannot be determined

Question 4

You Make the Call-Situation 2
Amy Wright is the owner of Fit Wright Shoes, a manufacturer of footwear located in Alice, Texas. Her company has pledged that all customers will have a lifetime replacement guarantee on all footwear bought from the company. This guarantee applies to the entire shoe, even though another company makes parts of the product.

Accepted Answer

The answer of You Make the Call-Situation 2
Amy Wright is...

Question 5

A SWOT analysis can be described best as

Accepted Answer

A)  a means of assessing the firm's industry situation. 
B)  an assessment of the internal strengths and weakness of the firm. 
C)  a dynamic analysis of the firm's current situation. 
D)  a concise overview of the firm's strategic situation. 
A)  a means of assessing the firm's industry situation. 
B)  an assessment of the internal strengths and weakness of the firm. 
C)  a dynamic analysis of the firm's current situation. 
D)  a concise overview of the firm's strategic situation.

Question 6

According to Peter Drucker, the means by which the entrepreneur either creates new wealth-producing resources or endows existing resources with enhanced potential for creating wealth is

Accepted Answer

A)  creativity. 
B)  innovation. 
C)  capital spending. 
D)  collaborating with competitors. 
A)  creativity. 
B)  innovation. 
C)  capital spending. 
D)  collaborating with competitors.

Question 7

Which one of the following change factors was not identified by Peter Drucker as a source of business opportunity?

Accepted Answer

A)  the unexpected 
B)  the innoccuous 
C)  the incongruous 
D)  demographics 
A)  the unexpected 
B)  the innoccuous 
C)  the incongruous 
D)  demographics

Question 8

Based on William A. Sahlman's suggestions, which of the following is a question about competitors that should be answered by the business plan?

Accepted Answer

A)  Are there ways to co-opt potential or actual competitors by forming alliances? 
B)  How easily can new competitors enter the industry? 
C)  Do small businesses have special advantages when competing in the industry? 
D)  What is the average size of competitors? 
A)  Are there ways to co-opt potential or actual competitors by forming alliances? 
B)  How easily can new competitors enter the industry? 
C)  Do small businesses have special advantages when competing in the industry? 
D)  What is the average size of competitors?

Question 9

An example of an idea for a new startup from an accidental discovery is

Accepted Answer

A)  a coin collector, who bought and sold coins for years to build a personal collection, deciding to become a coin dealer. 
B)  a furniture salesperson seeing the possibility of opening a new furniture store in a different area of the city. 
C)  a sharpshooter, who shot holes in a pair of her boyfriend's jeans during an argument, hearing him get complimented on the way they look. 
D)  a purposeful exploration to find a new idea. 
A)  a coin collector, who bought and sold coins for years to build a personal collection, deciding to become a coin dealer. 
B)  a furniture salesperson seeing the possibility of opening a new furniture store in a different area of the city. 
C)  a sharpshooter, who shot holes in a pair of her boyfriend's jeans during an argument, hearing him get complimented on the way they look. 
D)  a purposeful exploration to find a new idea.

Question 10

The industry environment can best be defined as the combined forces that directly impact a given firms and its competitors.

Accepted Answer

A) True 
 B)False

Question 11

Name and describe the two broad-based strategy options that a firm can select when pursuing a competitive advantage in the marketplace.

Accepted Answer

The myriad strategies firms employ can u

Question 12

A computer technician recognizing a need for more atheistically pleasing computers would be said to have entrepreneur _____.

Accepted Answer

A)  Technology 
B)  Alertness 
C)  Strategy 
D)  Rivalry 
A)  Technology 
B)  Alertness 
C)  Strategy 
D)  Rivalry

Question 13

An increase in the bargaining power of suppliers

Accepted Answer

A)  increases both the attractiveness and the profitability of the target market. 
B)  decreases both the attractiveness and the profitability of the target market. 
C)  decreases the attractiveness and increases the profitability of the target market. 
D)  increases the attractiveness and decreases the profitability of the target market. 
A)  increases both the attractiveness and the profitability of the target market. 
B)  decreases both the attractiveness and the profitability of the target market. 
C)  decreases the attractiveness and increases the profitability of the target market. 
D)  increases the attractiveness and decreases the profitability of the target market.

Question 14

What type of idea accounts for the largest number of startups?

Accepted Answer

A)  A technically new process 
B)  Performing an old function in a new and improved way 
C)  Using prior work experience as a basis for starting a new business 
D)  Providing customers with a product or service absent in their market but available elsewhere 
A)  A technically new process 
B)  Performing an old function in a new and improved way 
C)  Using prior work experience as a basis for starting a new business 
D)  Providing customers with a product or service absent in their market but available elsewhere

Question 15

Serendipity is a term describing a new product idea resulting from deliberate search activities.

Accepted Answer

A) True 
 B)False

Question 16

Observations about the external environment and organizational potentials can be brought together by means of

Accepted Answer

A)  an alignment strategy. 
B)  the in-and-out assessment. 
C)  a SWOT analysis. 
D)  common sense critique. 
A)  an alignment strategy. 
B)  the in-and-out assessment. 
C)  a SWOT analysis. 
D)  common sense critique.

Question 17

All of the following are specified by Michael Porter as factors that determine the nature and degree of competition in an industry except

Accepted Answer

A)  threat of new competitors. 
B)  rivalry among existing competitors. 
C)  industry cost/price structure. 
D)  bargaining power of buyers and/or suppliers. 
A)  threat of new competitors. 
B)  rivalry among existing competitors. 
C)  industry cost/price structure. 
D)  bargaining power of buyers and/or suppliers.

Question 18

The general environment profiles a number of important trends, among which are economic trends including the rate of inflation, interest rates and even currency exchange rates, all of which promote or discourage business growth.

Accepted Answer

A) True 
 B)False

Question 19

Which type of strategy requires a firm to be the lowest-cost producer within the market?

Accepted Answer

A)  Price-based 
B)  Marketing-based 
C)  Efficiency-based 
D)  Cost-based 
A)  Price-based 
B)  Marketing-based 
C)  Efficiency-based 
D)  Cost-based

Question 20

Magazines and other periodicals are excellent sources of startup ideas.

Accepted Answer

A) True 
 B)False

Exam 3: Getting Started

As described in the textbook, a Type A idea involves

Entrepreneurs' choices that affect the nature of a small firm and its basic direction are known as

A SWOT analysis can be described best as

According to Peter Drucker, the means by which the entrepreneur either creates new wealth-producing resources or endows existing resources with enhanced potential for creating wealth is

Which one of the following change factors was not identified by Peter Drucker as a source of business opportunity?

Based on William A. Sahlman's suggestions, which of the following is a question about competitors that should be answered by the business plan?

An example of an idea for a new startup from an accidental discovery is

The industry environment can best be defined as the combined forces that directly impact a given firms and its competitors.

Name and describe the two broad-based strategy options that a firm can select when pursuing a competitive advantage in the marketplace.

A computer technician recognizing a need for more atheistically pleasing computers would be said to have entrepreneur _____.

An increase in the bargaining power of suppliers

What type of idea accounts for the largest number of startups?

Serendipity is a term describing a new product idea resulting from deliberate search activities.

Observations about the external environment and organizational potentials can be brought together by means of

All of the following are specified by Michael Porter as factors that determine the nature and degree of competition in an industry except

The general environment profiles a number of important trends, among which are economic trends including the rate of inflation, interest rates and even currency exchange rates, all of which promote or discourage business growth.

Which type of strategy requires a firm to be the lowest-cost producer within the market?

Magazines and other periodicals are excellent sources of startup ideas.

The Entrepreneurial Life

Entrepreneurial Integrity and Ethics

Franchises and Buyouts

The Family Business

The Business Plan: Visualizing the Dream

The Marketing Plan

The Human Resources Plan: Managers, Owners, Allies, and Directors

The Location Plan

Understanding a Firms Financial Statements

Forecasting Financial Requirements

A Firms Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Business

Professional Management in the Entrepreneurial Firm

Managing Human Resources

Managing Operations

Managing the Firms Assets

Managing Risk in the Small Business

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