Question 1

Peggy would like to open a dog grooming business in her home.  Which of the following, if true, would indicate this is a good idea?

Accepted Answer

A)  More households now own dogs but the owners don't want to give them regular baths. 
B)  Fewer households now own dogs but the owners don't want to give them regular baths. 
C)  Fewer households now own dogs but the owners give them regular baths. 
D)  More households own dogs but the owners give them regular baths. 
A)  More households now own dogs but the owners don't want to give them regular baths. 
B)  Fewer households now own dogs but the owners don't want to give them regular baths. 
C)  Fewer households now own dogs but the owners give them regular baths. 
D)  More households own dogs but the owners give them regular baths. A

Question 2

Miriam opened a yarn craft store in her small town based on her personal interests and hobbies.  There were no competitors locally; the merchandise was readily available; and she had the initial capital to open the store.  Yet her business failed.  Too few customers visited her store.  What was Miriam's fatal flaw?

Accepted Answer

A)  The merchandise was patent-protected. 
B)  Miriam could not raise enough capital. 
C)  Miriam lacked industry knowledge. 
D)  Miriam ignored the market limitations. 
A)  The merchandise was patent-protected. 
B)  Miriam could not raise enough capital. 
C)  Miriam lacked industry knowledge. 
D)  Miriam ignored the market limitations. D

Question 3

The general environment includes rival companies and products.

Accepted Answer

A) True 
 B)False  False

Question 4

Many direct sales organizations suggest that the new "member" begin selling the product part-time while continuing to work at his/her regular job.  Which explanation best fits this recommendation?

Accepted Answer

A)  The business meets a definite market need. 
B)  The target market is sizable. 
C)  There are few competitors. 
D)  The business can be tested cheaply and expanded incrementally. 
A)  The business meets a definite market need. 
B)  The target market is sizable. 
C)  There are few competitors. 
D)  The business can be tested cheaply and expanded incrementally.

Question 5

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 6

Tangible resources include:

Accepted Answer

A)  cash, technology, and raw materials. 
B)  cash, management expertise, and a good reputation 
C)  management expertise, a good reputation, and technology. 
D)  intellectual property rights, equipment, and a skilled workforce. 
A)  cash, technology, and raw materials. 
B)  cash, management expertise, and a good reputation 
C)  management expertise, a good reputation, and technology. 
D)  intellectual property rights, equipment, and a skilled workforce.

Question 7

It is nearly impossible to make a business out of a hobby.

Accepted Answer

A) True 
 B)False

Question 8

Identify and discuss the five factors entrepreneurs should consider when screening new business ideas.

Accepted Answer

1. Strength of the business idea :  The

Question 9

Compare and contrast personal experience, hobbies and personal interests, and accidental discovery as a source of startup ideas. Use examples to strengthen the discussion.

Accepted Answer

Personal experiences are prolific source

Question 10

The very feature of a market that makes it attractive to one small company (the lack of competition) will make it attractive to others; this fact is called the __________ ___ ___________.

Accepted Answer

paradox of

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

Strategies can be condensed into either

Question 12

_____ refers to the way entrepreneurs identify new products or services that may lead to promising businesses.

Accepted Answer

A)  Focus-based decisions 
B)  Elasticity 
C)  Opportunity recognition 
D)  Cost-benefit analysis 
A)  Focus-based decisions 
B)  Elasticity 
C)  Opportunity recognition 
D)  Cost-benefit analysis

Question 13

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 14

Arlene runs Aquabuddies , a company that makes figurines for aquariums.  What type of strategy would be expected?

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 15

Today's smartphones bear little resemblance to the original analog cell phones of the early 1990s.  Their capabilities exceed those of the early desktop computers.  It seems nearly every adult carries at least one cell phone.  Which of the trends does this represent?

Accepted Answer

A)  Sociocultural 
B)  Demographic 
C)  Technological 
D)  Global 
A)  Sociocultural 
B)  Demographic 
C)  Technological 
D)  Global

Question 16

The increased trade between the United States and Mexico since the enactment of the North American Free Trade Agreement 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 17

TV commercials promote reverse mortgages.  Other ads promote medications for high blood pressure, ED, immune system disorders, and high cholesterol.  Which type of trend do these represent?

Accepted Answer

A)  Sociocultural 
B)  Global 
C)  Technological 
D)  Demographic 
A)  Sociocultural 
B)  Global 
C)  Technological 
D)  Demographic

Question 18

Isabella listens whenever someone says "Someone ought to make a ..."  She expects one of these ideas to develop into a profitable business.  Isabella possesses:

Accepted Answer

A)  market awareness. 
B)  entrepreneurial alertness. 
C)  opportunity recognition. 
D)  innovative thinking. 
A)  market awareness. 
B)  entrepreneurial alertness. 
C)  opportunity recognition. 
D)  innovative thinking.

Question 19

Jeff Bezos' original business plan involved taking orders for books and having the items shipped directly from the publisher to the customer.  He modified the plan to include other products such as toys and decided to buy the toys from the producers and ship them from his own warehouse.  This modification of the original plan is called:

Accepted Answer

A)  a change of plan 
B)  a pivot. 
C)  a serendipity. 
D)  a competitive move. 
A)  a change of plan 
B)  a pivot. 
C)  a serendipity. 
D)  a competitive move.

Question 20

Considering Michael Porter's five factors, we can say that the fast food hamburger industry is characterized by:

Accepted Answer

A)  intense rivalry. 
B)  strong suppliers. 
C)  strong buyers. 
D)  ease of entry into the industry. 
A)  intense rivalry. 
B)  strong suppliers. 
C)  strong buyers. 
D)  ease of entry into the industry.

Exam 3: Starting a Small Business

Peggy would like to open a dog grooming business in her home. Which of the following, if true, would indicate this is a good idea?

The general environment includes rival companies and products.

Many direct sales organizations suggest that the new "member" begin selling the product part-time while continuing to work at his/her regular job. Which explanation best fits this recommendation?

According to Michael Porter, a focus strategy can erode when

Tangible resources include:

It is nearly impossible to make a business out of a hobby.

Identify and discuss the five factors entrepreneurs should consider when screening new business ideas.

Compare and contrast personal experience, hobbies and personal interests, and accidental discovery as a source of startup ideas. Use examples to strengthen the discussion.

The very feature of a market that makes it attractive to one small company (the lack of competition) will make it attractive to others; this fact is called the __________ ___ ___________.

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

_____ refers to the way entrepreneurs identify new products or services that may lead to promising businesses.

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

Arlene runs Aquabuddies , a company that makes figurines for aquariums. What type of strategy would be expected?

Today's smartphones bear little resemblance to the original analog cell phones of the early 1990s. Their capabilities exceed those of the early desktop computers. It seems nearly every adult carries at least one cell phone. Which of the trends does this represent?

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

TV commercials promote reverse mortgages. Other ads promote medications for high blood pressure, ED, immune system disorders, and high cholesterol. Which type of trend do these represent?

Isabella listens whenever someone says "Someone ought to make a ..." She expects one of these ideas to develop into a profitable business. Isabella possesses:

Considering Michael Porter's five factors, we can say that the fast food hamburger industry is characterized by:

The Entrepreneurial Life

Integrity Ethics and Social Entrepreneurship

Franchises and Buyouts

The Family Business

The Business Plan Visualizing the Dream

The Marketing Plan

The Organizational Plan Teams Legal Structures Alliances and Directors

The Location Plan

Understanding a Firm S Financial Statements

Forecasting Financial Requirements

A Firm S Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product Development and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Business

Professional Management and the Small Business

Managing Human Resources

Managing Small Business Operations

Managing the Firm S Assets

Managing Risk

Filters

The very feature of a market that makes it attractive to one small company (the lack of competition) will make it attractive to others; this fact is called the ________ _ ___________.