Question 1

A political/legal 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 rates 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 rates 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 2

A technological 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 rates on corporations 
C)  A new computer chip is announced which will allow for miniaturization of many electronic devices 
D)  The E.U. announces 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 rates on corporations 
C)  A new computer chip is announced which will allow for miniaturization of many electronic devices 
D)  The E.U. announces an increase in tariffs on all agricultural goods

Question 3

The two broad strategies for building a competitive advantage are the _____ strategies.

Accepted Answer

A)  cost-based and differentiation-based 
B)  price-advantage and cost-advantage 
C)  marketing-advantage and price-advantage 
D)  focus-advantage and marketing-advantage 
A)  cost-based and differentiation-based 
B)  price-advantage and cost-advantage 
C)  marketing-advantage and price-advantage 
D)  focus-advantage and marketing-advantage

Question 4

Carol Weinstock, who runs Technographics, a company that designs greeting cards for computer users, is employing

Accepted Answer

A)  a focus strategy. 
B)  an unsegmented strategy. 
C)  a multisegmentation strategy. 
D)  a marketing mix strategy. 
A)  a focus strategy. 
B)  an unsegmented strategy. 
C)  a multisegmentation strategy. 
D)  a marketing mix strategy.

Question 5

A focus strategy is best described as

Accepted Answer

A)  an attempt to compete directly with industry giants. 
B)  a domestic marketing strategy. 
C)  a strategy that isolates the firm from market forces. 
D)  targeting the high end of a market. 
A)  an attempt to compete directly with industry giants. 
B)  a domestic marketing strategy. 
C)  a strategy that isolates the firm from market forces. 
D)  targeting the high end of a market.

Question 6

A differentiation-based strategy requires that a firm

Accepted Answer

A)  be the lowest-cost provider in an industry. 
B)  emphasize the uniqueness of its product or services. 
C)  achieve the highest resource efficiency in an industry. 
D)  be the lowest-priced competitor in an industry. 
A)  be the lowest-cost provider in an industry. 
B)  emphasize the uniqueness of its product or services. 
C)  achieve the highest resource efficiency in an industry. 
D)  be the lowest-priced competitor in an industry.

Question 7

Cabana Life, the company started by Melissa Marks Papock, is an example of a startup based on serendipity.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is a cause for erosion of a small firm's focus strategy?

Accepted Answer

A)  Consumer demand grows 
B)  New firms reconstruct the industry 
C)  Differences between segments grow larger 
D)  The focus strategy is imitated 
A)  Consumer demand grows 
B)  New firms reconstruct the industry 
C)  Differences between segments grow larger 
D)  The focus strategy is imitated

Question 9

Containers Etc. manufactures household containers. In contrast to traditional market designs, all of Containers Etc.'s products are microwaveable and child-proof and come in an assortment of 35 colors. Accordingly, Containers Etc. is pursuing a _____ strategy.

Accepted Answer

A)  product-based 
B)  differentiation-based 
C)  concept-based 
D)  efficiency-based 
A)  product-based 
B)  differentiation-based 
C)  concept-based 
D)  efficiency-based

Question 10

Many new businesses are formed as a result of the entrepreneur's previous work experience, through which he or she sees ways to improve or modify a product.

Accepted Answer

A) True 
 B)False

Question 11

The general environment is positive in its impact on the small firm and its performance.

Accepted Answer

A) True 
 B)False

Question 12

"Me, too" strategies are used by very few new ventures.

Accepted Answer

A) True 
 B)False

Question 13

According to Michael Porter, a focus strategy can erode when

Accepted Answer

A)  the strategy is protected. 
B)  the target segment's differences from other segments narrow. 
C)  new firms reconstruct the industry. 
D)  demand for the product grows and thus attracts new competitors. 
A)  the strategy is protected. 
B)  the target segment's differences from other segments narrow. 
C)  new firms reconstruct the industry. 
D)  demand for the product grows and thus attracts new competitors.

Question 14

Business guru Peter Drucker believes entrepreneurs should consider no more than two or three sources of opportunity to avoid being sidetracked as they prepare to launch or grow their enterprises.

Accepted Answer

A) True 
 B)False

Question 15

Resources are best described as

Accepted Answer

A)  those basic inputs that a firm uses to conduct its business. 
B)  only those features that are visible and easy to quantify. 
C)  the firm's lending capacity. 
D)  capabilities that can be exploited. 
A)  those basic inputs that a firm uses to conduct its business. 
B)  only those features that are visible and easy to quantify. 
C)  the firm's lending capacity. 
D)  capabilities that can be exploited.

Question 16

A(n) _____ exists when multiple resources are integrated and then deployed to the firm's advantage.

Accepted Answer

A)  networked resource 
B)  common intangible 
C)  capability 
D)  industry edge 
A)  networked resource 
B)  common intangible 
C)  capability 
D)  industry edge

Question 17

A differentiation-based strategy usually does not lead to a competitive advantage in business.

Accepted Answer

A) True 
 B)False

Question 18

List the five factors that determine the nature and degree of competition in an industry, as presented by Michael Porter in his book Competitive Advantage.

Accepted Answer

The answer of List the five factors that determine the...

Question 19

You Make the Call-Situation 3
Jay Sorenson of Portland, Oregon, created a product called the Java Jacket, which is a patented honeycombed insulating sleeve that slides over a paper cup containing a hot beverage to make it comfortable to hold. Having introduced the new product to the market, Sorenson has already cut deals with coffeehouses, specialty stores, and convenience stores nationwide. He started the business with $15,000 in 1993, but his 2003 sales were projected to be between $12 and 15 million. Sorenson is now in a position where he would like to continue expanding his business, but he is concerned that large and established competitors could introduce their own variations of the same product.
(Source: Don Debelak, "Send in the Clones," Entrepreneur, September 2003, pp. 128-132.)

Accepted Answer

The answer of You Make the Call-Situation 3
Jay Sorenson of...

Question 20

evaluation of the general environment is appropriate only for large firms that have a corporate staff to manage the process.

Accepted Answer

A) True 
 B)False

Exam 3: Getting Started

A political/legal trend is characterized by which of the following?

A technological trend is characterized by which of the following?

The two broad strategies for building a competitive advantage are the _____ strategies.

Carol Weinstock, who runs Technographics, a company that designs greeting cards for computer users, is employing

A focus strategy is best described as

A differentiation-based strategy requires that a firm

Cabana Life, the company started by Melissa Marks Papock, is an example of a startup based on serendipity.

Which of the following is a cause for erosion of a small firm's focus strategy?

Containers Etc. manufactures household containers. In contrast to traditional market designs, all of Containers Etc.'s products are microwaveable and child-proof and come in an assortment of 35 colors. Accordingly, Containers Etc. is pursuing a _____ strategy.

Many new businesses are formed as a result of the entrepreneur's previous work experience, through which he or she sees ways to improve or modify a product.

The general environment is positive in its impact on the small firm and its performance.

"Me, too" strategies are used by very few new ventures.

According to Michael Porter, a focus strategy can erode when

Business guru Peter Drucker believes entrepreneurs should consider no more than two or three sources of opportunity to avoid being sidetracked as they prepare to launch or grow their enterprises.

Resources are best described as

A(n) _____ exists when multiple resources are integrated and then deployed to the firm's advantage.

A differentiation-based strategy usually does not lead to a competitive advantage in business.

List the five factors that determine the nature and degree of competition in an industry, as presented by Michael Porter in his book Competitive Advantage.

evaluation of the general environment is appropriate only for large firms that have a corporate staff to manage the process.

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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