Exam 3: Starting a Small Business

Carol enjoyed yarn crafts but there were no yarn shops in her small town.  She reasoned that there were many others nearby who might appreciate being able to purchase yarns and supplies without a long drive.  Within a year her shop was profitable and expanding into larger space. Which of these statements best describes this situation?

Drs. James and Janet Baker saw that many people experienced difficulty and frustration when typing, some because of physical disabilities.  So they invented a voice recognition software to allow users to talk to the computer.  Their ideas have become Dragon Naturally Speaking, a popular talk-to-type software application.  Which of these statements describes their startup?

According to the feasibility analysis framework, an entrepreneur who has a vision of a multi-unit company will

What marketing activities suggest that a small firm is following a focus strategy?

Which segment is part of the general environment?

Richard could see the demand for towable recreational vehicles declining so beginning in the early 1970s he used his equipment, employees, and professional network to design and build utility trucks, a more recession-resistant industry.  This is an example of:

Generally speaking, a strategy is

Many commuters grab a cup of coffee and drink it during their ride to work.  So someone invented specially shaped cups that don't tip and lids with sip openings that close and don't spill.  Which of these innovative ways of thinking best fits this situation?

Israel Kirzner believes entrepreneurs have a unique capability, which he calls _________ ________, to spot existing opportunities for businesses.

Kitty-Kat Korner fabric shop caters to the quilters in the region.  Other fabric shops carry fabrics for all types of clothing along with floral, yarn, and other craft supplies.  Kitty-Kat carries only items related to quilting.  Which of the following best describes Kitty-Kat's strategy?

When Jeff Bezos launched Amazon.com, his idea of selling items he did not own from a website was unique.  Which type of startup is this?

Using a focus strategy, a company would focus its attention on producing one product that satisfied the greatest number of customers.

A differentiation-based strategy requires that a firm

Mark is the owner of Delectable Delights , a specialty store offering chocolates, candies, and fruit baskets. After a recent analysis of the competitive environment, Mark concluded that three distinct consumer segments exist for his products - A, B, and C consumers. In an effort to maximize the effectiveness of its strategy, Mark has decided to limit his efforts to fulfilling the needs of A consumers. He is employing a _____ strategy.

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

Alyson and Andrea, country artists, realized that their love of classic rock was also popular with their fans.  Their change to their show to incorporate more rock songs with a country flavor is an example of

The quote "Good artists borrow; great artists steal" is the principle that launched which company?

Jesse would like to start a landscaping company that concentrates on using native plants.  The feasibility study showed a need for $100,000 to start the company (she has $10,000), competition of three other companies (one concentrated on using native plants), and buyers who were predominantly 60 years or older (who loved yard work).  Which statement is true?

Substitute products