Question 1

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 2

SWOT analysis provides a concise overview of a firm's strategic situation.

Accepted Answer

A) True 
 B)False

Question 3

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 4

The quote "Good artists borrow; great artists steal" is attributed to

Accepted Answer

A)  no one knows for sure 
B)  Pablo Picasso 
C)  T. S. Eliot 
D)  Salvadore Dali 
A)  no one knows for sure 
B)  Pablo Picasso 
C)  T. S. Eliot 
D)  Salvadore Dali

Question 5

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 6

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 7

Lease Trader.com, a website that Sergio Stiberman founded after discovering how expensive it was to end a car lease early is an example of

Accepted Answer

A)  recognizing a hot trend and riding the wave 
B)  combining two businesses into one to create a market opening 
C)  beginning with a problem in mind 
D)  considering ways to adapt a product or service to meet customer needs in a different way 
A)  recognizing a hot trend and riding the wave 
B)  combining two businesses into one to create a market opening 
C)  beginning with a problem in mind 
D)  considering ways to adapt a product or service to meet customer needs in a different way

Question 8

The bargaining power of suppliers is encouraging for small businesses attempting to enter an industry.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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 11

Trade between the United States and Mexico has increased since the enactment of the North American Free Trade Agreement. This factor is related to the ____ element of the general environment.

Accepted Answer

A)  technological 
B)  global 
C)  ecological 
D)  sociocultural 
A)  technological 
B)  global 
C)  ecological 
D)  sociocultural

Question 12

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

Question 13

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 14

Which of the three different categories of new venture ideas accounts for the most startup ventures?

Accepted Answer

Type C startup ideas probably account fo

Question 15

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 16

Developments in the technological segment of the general environment have created significant opportunities for many new and creative small businesses.

Accepted Answer

A) True 
 B)False

Question 17

According to a study by the National Federation of Independent Business Foundation, new product ideas for small business startups originate from all of the following except

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 18

A firm that is able to create and sustain product and/or service differentiation will most likely be a successful performer in the marketplace.

Accepted Answer

A) True 
 B)False

Question 19

The following are change-based sources of opportunity identified by Peter Drucker except

Accepted Answer

A)  process needs 
B)  structural change 
C)  new knowledge 
D)  the unwavering 
A)  process needs 
B)  structural change 
C)  new knowledge 
D)  the unwavering

Question 20

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.

Exam 3: Getting Started

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

SWOT analysis provides a concise overview of a firm's strategic situation.

An economic trend is characterized by which of the following?

The quote "Good artists borrow; great artists steal" is attributed to

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

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.

Lease Trader.com, a website that Sergio Stiberman founded after discovering how expensive it was to end a car lease early is an example of

The bargaining power of suppliers is encouraging for small businesses attempting to enter an industry.

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

According to Michael Porter, a focus strategy can erode when

Trade between the United States and Mexico has increased since the enactment of the North American Free Trade Agreement. This factor is related to the ____ element of the general environment.

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

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

Which of the three different categories of new venture ideas accounts for the most startup ventures?

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

Developments in the technological segment of the general environment have created significant opportunities for many new and creative small businesses.

According to a study by the National Federation of Independent Business Foundation, new product ideas for small business startups originate from all of the following except

A firm that is able to create and sustain product and/or service differentiation will most likely be a successful performer in the marketplace.

The following are change-based sources of opportunity identified by Peter Drucker except

As described in the textbook, a Type A idea involves

The Entrepreneurial Life

Integrity and Ethics of Entrepreneurship

Franchises and Buyouts

The Family Business

Creating Business Plans

The Marketing Plan

The Organization of the Business

The Location Plan

Financial Statements

Projecting Financial Requirements

A Firms Sources of Financing

The Harvest Plan

Customer Relationships

Product and Supply Chain Management

Pricing and Credit

Promotional Planning

Global Marketing

Professional Management and Leadership

Human Resource Management

Operations Management

Managing the Firms Assets

Risk Management

Filters