Question 1

Small firms are pursuing a focus strategy if they adapt their efforts to concentrating on a specific niche within the market.

Accepted Answer

A) True 
 B)False

Question 2

Change may be the most important source of opportunities for entrepreneurial firms.

Accepted Answer

A) True 
 B)False

Question 3

According to a study by the National Federation of Independent Business Foundation, the most common source of new product ideas for small business startups is

Accepted Answer

A)  prior work experience. 
B)  personal interests and hobbies. 
C)  a chance happening. 
D)  existing records of a business. 
A)  prior work experience. 
B)  personal interests and hobbies. 
C)  a chance happening. 
D)  existing records of a business.

Question 4

Hobbies of retiring business executives can spawn startup ideas.

Accepted Answer

A) True 
 B)False

Question 5

Generally speaking, a strategy is

Accepted Answer

A)  an action plan that guides resource investments. 
B)  a formal statement of what the firm intends to do. 
C)  an expanded description of the firm's mission statement. 
D)  most effective when it is designed to reflect the tactics that are common within an industry. 
A)  an action plan that guides resource investments. 
B)  a formal statement of what the firm intends to do. 
C)  an expanded description of the firm's mission statement. 
D)  most effective when it is designed to reflect the tactics that are common within an industry.

Question 6

As described in the textbook, a Type C 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 7

What are the four conditions under which a segmented market can erode?

Accepted Answer

The answer of What are the four conditions under which...

Question 8

In practice, a SWOT analysis is usually based on a dynamic view of the firm and its situation.

Accepted Answer

A) True 
 B)False

Question 9

Peter Drucker identified _____ change-based sources of opportunity that entrepreneurs should consider as they prepare to launch or grow their enterprise.

Accepted Answer

A)  3 
B)  5 
C)  7 
D)  9 
A)  3 
B)  5 
C)  7 
D)  9

Question 10

Which of the following is one of the seven sources of opportunities in the environment recognized by Peter Drucker?

Accepted Answer

A)  The unbelievable 
B)  The undeniable 
C)  The incongruous 
D)  The new 
A)  The unbelievable 
B)  The undeniable 
C)  The incongruous 
D)  The new

Question 11

Startups are more likely to be successful when the entrepreneur first evaluates his or her own capabilities and then looks for a new product or service idea, as opposed to beginning with a need in the marketplace and then relating those to personal capabilities.

Accepted Answer

A) True 
 B)False

Question 12

Different types of small business ownership opportunities include all of the following except

Accepted Answer

A)  startups. 
B)  bailouts. 
C)  family businesses. 
D)  franchises. 
A)  startups. 
B)  bailouts. 
C)  family businesses. 
D)  franchises.

Question 13

Which of the following is one of the factors that determines the nature and degree of competition in an industry, as identified by Michael Porter in his book Competitive Advantage?

Accepted Answer

A)  The interest of small businesses 
B)  Bargaining power of competitors 
C)  Threat of substitute products or services 
D)  The macroeconomy 
A)  The interest of small businesses 
B)  Bargaining power of competitors 
C)  Threat of substitute products or services 
D)  The macroeconomy

Question 14

Serendipity is the faculty for making desirable discoveries by accident.

Accepted Answer

A) True 
 B)False

Question 15

Resources can be either tangible or intangible in nature.

Accepted Answer

A) True 
 B)False

Question 16

An economic trend is characterized by which of the following?

Accepted Answer

A)  The Federal Reserve announces that it will decrease the interest rate it charges banks 
B)  Congress passes legislation that increases the tax rate on corporations 
C)  A new computer chip is announced which will allow for miniaturization of many electronic devices 
D)  The E.U. declares an increase in tariffs on all agricultural goods 
A)  The Federal Reserve announces that it will decrease the interest rate it charges banks 
B)  Congress passes legislation that increases the tax rate on corporations 
C)  A new computer chip is announced which will allow for miniaturization of many electronic devices 
D)  The E.U. declares an increase in tariffs on all agricultural goods

Question 17

The general environment is more narrowly defined than the industry environment because it focuses on specific segments, such as those relating to the economy, sociocultural trends, and geopolitical developments.

Accepted Answer

A) True 
 B)False

Question 18

An example of a Type B startup idea is

Accepted Answer

A)  a new microsponge technology allowing oils to be contained inside billions of microscopic sponges. 
B)  a baby stroller that pushes more easily and is more difficult to overturn than previous designs. 
C)  opening a new hamburger stand on the corner with no unique product differentiation. 
D)  a new mail-order business selling a foreign-produced item never sold domestically before. 
A)  a new microsponge technology allowing oils to be contained inside billions of microscopic sponges. 
B)  a baby stroller that pushes more easily and is more difficult to overturn than previous designs. 
C)  opening a new hamburger stand on the corner with no unique product differentiation. 
D)  a new mail-order business selling a foreign-produced item never sold domestically before.

Question 19

Some possibilities for new startup ideas based on knowledge gleaned from a present or recent job are modifying an existing product, improving a service, or duplicating a business concept in a different location.

Accepted Answer

A) True 
 B)False

Question 20

Starting or buying more than one business without merging their operations closely is a strategy known as differentiation-based.

Accepted Answer

A) True 
 B)False

Exam 3: Getting Started

Small firms are pursuing a focus strategy if they adapt their efforts to concentrating on a specific niche within the market.

Change may be the most important source of opportunities for entrepreneurial firms.

According to a study by the National Federation of Independent Business Foundation, the most common source of new product ideas for small business startups is

Hobbies of retiring business executives can spawn startup ideas.

Generally speaking, a strategy is

As described in the textbook, a Type C idea involves

What are the four conditions under which a segmented market can erode?

In practice, a SWOT analysis is usually based on a dynamic view of the firm and its situation.

Peter Drucker identified _____ change-based sources of opportunity that entrepreneurs should consider as they prepare to launch or grow their enterprise.

Which of the following is one of the seven sources of opportunities in the environment recognized by Peter Drucker?

Startups are more likely to be successful when the entrepreneur first evaluates his or her own capabilities and then looks for a new product or service idea, as opposed to beginning with a need in the marketplace and then relating those to personal capabilities.

Different types of small business ownership opportunities include all of the following except

Which of the following is one of the factors that determines the nature and degree of competition in an industry, as identified by Michael Porter in his book Competitive Advantage?

Serendipity is the faculty for making desirable discoveries by accident.

Resources can be either tangible or intangible in nature.

An economic trend is characterized by which of the following?

The general environment is more narrowly defined than the industry environment because it focuses on specific segments, such as those relating to the economy, sociocultural trends, and geopolitical developments.

An example of a Type B startup idea is

Some possibilities for new startup ideas based on knowledge gleaned from a present or recent job are modifying an existing product, improving a service, or duplicating a business concept in a different location.

Starting or buying more than one business without merging their operations closely is a strategy known as differentiation-based.

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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