Question 1

_____ is a strategic action.

Accepted Answer

A)  Increasing marketing efforts 
B)  Using new distribution channels 
C)  Acquiring a competitor 
D)  Increasing prices 
A)  Increasing marketing efforts 
B)  Using new distribution channels 
C)  Acquiring a competitor 
D)  Increasing prices

Question 2

Gross profit is defined as:

Accepted Answer

A)  what is left after deducting the cost of goods sold. 
B)  what is left after deducting the operating expenses of the business. 
C)  the amount of money the owner takes out of the firm annually. 
D)  the profit earned by a company when its product is in the maturity stage of the product life cycle. 
A)  what is left after deducting the cost of goods sold. 
B)  what is left after deducting the operating expenses of the business. 
C)  the amount of money the owner takes out of the firm annually. 
D)  the profit earned by a company when its product is in the maturity stage of the product life cycle.

Question 3

The major ways you cope with competitive pressures is by undertaking some combination of strategic actions and tactical actions.

Accepted Answer

A) True 
 B)False

Question 4

Incremental innovation is also called a blue ocean strategy.

Accepted Answer

A) True 
 B)False

Question 5

In an imitative strategy,an entrepreneur:

Accepted Answer

A)  creates a new product or service which has no competitors. 
B)  considers prospective customers before creating a product or service. 
C)  seeks to do something that is very different from what others are doing. 
D)  does more or less what others are already doing. 
A)  creates a new product or service which has no competitors. 
B)  considers prospective customers before creating a product or service. 
C)  seeks to do something that is very different from what others are doing. 
D)  does more or less what others are already doing.

Question 6

Which of the following is true of a differentiation strategy?

Accepted Answer

A)  It requires a firm to offer a combination of cost benefits that appeals to the customers. 
B)  It is generally pursued by all small businesses. 
C)  It is aimed at mass markets. 
D)  It is used by businesses that pursue a very low cost operation. 
A)  It requires a firm to offer a combination of cost benefits that appeals to the customers. 
B)  It is generally pursued by all small businesses. 
C)  It is aimed at mass markets. 
D)  It is used by businesses that pursue a very low cost operation.

Question 7

Briefly describe the industry life cycle.

Accepted Answer

Industries go through different stages i

Question 8

Most small businesses are more _____ than _____.

Accepted Answer

A)  cost-directed; profit-directed 
B)  imitative; innovative 
C)  profit-directed; cost-directed 
D)  innovative; imitative 
A)  cost-directed; profit-directed 
B)  imitative; innovative 
C)  profit-directed; cost-directed 
D)  innovative; imitative

Question 9

Which of the following statements concerning cost strategies is not true?

Accepted Answer

A)  Cost strategies are aimed at a small niche market. 
B)  Small businesses in a variety of industries make use of cost strategies. 
C)  In a cost strategy,you try to show how your firm offers a combination of cost benefits that appeal to the customer. 
D)  A cost strategy comes when a small business can pursue a very low cost operation. 
A)  Cost strategies are aimed at a small niche market. 
B)  Small businesses in a variety of industries make use of cost strategies. 
C)  In a cost strategy,you try to show how your firm offers a combination of cost benefits that appeal to the customer. 
D)  A cost strategy comes when a small business can pursue a very low cost operation.

Question 10

_____ refers to the size of the market,whereas _____ refers to the geographic range covered by the market.

Accepted Answer

A)  Scope; scale 
B)  Mass; niche 
C)  Scale; scope 
D)  Niche; mass 
A)  Scope; scale 
B)  Mass; niche 
C)  Scale; scope 
D)  Niche; mass

Question 11

An opportunity that makes it possible for a new business to gain a foothold in a market is referred to as a(n)_____.

Accepted Answer

A)  parallel competition 
B)  incremental innovation 
C)  differentiation strategy 
D)  entry wedge 
A)  parallel competition 
B)  incremental innovation 
C)  differentiation strategy 
D)  entry wedge

Question 12

Your magic number is the number of customers you can comfortably provide with your product or service.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following are the two major classification systems that code industries?

Accepted Answer

A)  NAICS and SIC 
B)  SCALE and SCOPE 
C)  SWOT and VRIO 
D)  OLC and SWOT 
A)  NAICS and SIC 
B)  SCALE and SCOPE 
C)  SWOT and VRIO 
D)  OLC and SWOT

Question 14

A customer group that involves large portions of the population is referred to as a _____.

Accepted Answer

A)  niche market 
B)  secondary market 
C)  local market 
D)  mass market 
A)  niche market 
B)  secondary market 
C)  local market 
D)  mass market

Question 15

Name and briefly describe the different types of generic strategies.

Accepted Answer

There are three classic strategies for b

Question 16

In the goal step of the strategic planning process,the key is to:

Accepted Answer

A)  focus on the kind of customers the business wants to deal with. 
B)  bring together the decisions that underlie the business plan. 
C)  offer state-of-the-art or leading-edge technology. 
D)  build a brand reputation through the products or services. 
A)  focus on the kind of customers the business wants to deal with. 
B)  bring together the decisions that underlie the business plan. 
C)  offer state-of-the-art or leading-edge technology. 
D)  build a brand reputation through the products or services.

Question 17

Which of the following statements concerning choosing an industry is not correct?

Accepted Answer

A)  Picking the right industry is key to the success of your small business. 
B)  Insurance firms and health-related firms do well in bad times and good historically. 
C)  Industry is vitally important to your core strategy decisions. 
D)  There are industries that are more profitable than others. 
A)  Picking the right industry is key to the success of your small business. 
B)  Insurance firms and health-related firms do well in bad times and good historically. 
C)  Industry is vitally important to your core strategy decisions. 
D)  There are industries that are more profitable than others.

Question 18

Which of the following is the advantage of knowing the magic number?

Accepted Answer

A)  It helps in evaluating if the proposed business can deliver the desired return. 
B)  It helps in retaining customers. 
C)  It seeks out customers who are already being serviced by another firm. 
D)  It helps in making incremental product improvements. 
A)  It helps in evaluating if the proposed business can deliver the desired return. 
B)  It helps in retaining customers. 
C)  It seeks out customers who are already being serviced by another firm. 
D)  It helps in making incremental product improvements.

Question 19

A niche market is a narrowly defined segment of the population that is likely to share interests or concerns.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is an advantage of using an imitative strategy?

Accepted Answer

A)  It allows entrepreneurs to do something that is very different from what others are doing. 
B)  It allows business owners to buy existing technologies. 
C)  It allows entrepreneurs to fit their businesses to their own ideas and preferences. 
D)  It allows business owners to create unique settings. 
A)  It allows entrepreneurs to do something that is very different from what others are doing. 
B)  It allows business owners to buy existing technologies. 
C)  It allows entrepreneurs to fit their businesses to their own ideas and preferences. 
D)  It allows business owners to create unique settings.

_____ is a strategic action.

Gross profit is defined as:

The major ways you cope with competitive pressures is by undertaking some combination of strategic actions and tactical actions.

Incremental innovation is also called a blue ocean strategy.

In an imitative strategy,an entrepreneur:

Which of the following is true of a differentiation strategy?

Briefly describe the industry life cycle.

Most small businesses are more _ than _.

Which of the following statements concerning cost strategies is not true?

_ refers to the size of the market,whereas _ refers to the geographic range covered by the market.

An opportunity that makes it possible for a new business to gain a foothold in a market is referred to as a(n)_____.

Your magic number is the number of customers you can comfortably provide with your product or service.

Which of the following are the two major classification systems that code industries?

A customer group that involves large portions of the population is referred to as a _____.

Name and briefly describe the different types of generic strategies.

In the goal step of the strategic planning process,the key is to:

Which of the following statements concerning choosing an industry is not correct?

Which of the following is the advantage of knowing the magic number?

A niche market is a narrowly defined segment of the population that is likely to share interests or concerns.

Which of the following is an advantage of using an imitative strategy?

Small Business: Its Opportunities and Rewards

Small Business Entrepreneurs: Characteristics and Competencies

Small Business Environment: Managing External Relations

Small Business Ideas: Creativity, opportunity, and Feasibility

Small Business Entry: Paths to Part-Time Entrepreneurship

Small Business Entry: Paths to Full-Time Entrepreneurship

Business Plans: Seeing Audiences and Your Business Clearly

Small Business Marketing: Product and Pricing Strategies

Small Business Promotion: Capturing the Eyes of Your Market

Small Business Distribution and Location

Small Business Accounting: Projecting and Evaluating Performance

Cash: Lifeblood of the Business

Small Business Finance: Using Equity, debt, and Gifts

Assets: Inventory and Operations Management

Small Business Protection: Risk Management and Insurance

Legal Issues: Recognizing Your Small Business Needs

Human Resource Management: Small Business Considerations

Filters

Exam 7: Small Business Strategies: Imitation With a Twist

_____ is a strategic action.

Gross profit is defined as:

The major ways you cope with competitive pressures is by undertaking some combination of strategic actions and tactical actions.

Incremental innovation is also called a blue ocean strategy.

In an imitative strategy,an entrepreneur:

Which of the following is true of a differentiation strategy?

Briefly describe the industry life cycle.

Most small businesses are more _____ than _____.

Which of the following statements concerning cost strategies is not true?

_____ refers to the size of the market,whereas _____ refers to the geographic range covered by the market.

An opportunity that makes it possible for a new business to gain a foothold in a market is referred to as a(n)_____.

Your magic number is the number of customers you can comfortably provide with your product or service.

Which of the following are the two major classification systems that code industries?

A customer group that involves large portions of the population is referred to as a _____.

Name and briefly describe the different types of generic strategies.

In the goal step of the strategic planning process,the key is to:

Which of the following statements concerning choosing an industry is not correct?

Which of the following is the advantage of knowing the magic number?

A niche market is a narrowly defined segment of the population that is likely to share interests or concerns.

Which of the following is an advantage of using an imitative strategy?

Small Business: Its Opportunities and Rewards

Small Business Entrepreneurs: Characteristics and Competencies

Small Business Environment: Managing External Relations

Small Business Ideas: Creativity, opportunity, and Feasibility

Small Business Entry: Paths to Part-Time Entrepreneurship

Small Business Entry: Paths to Full-Time Entrepreneurship

Business Plans: Seeing Audiences and Your Business Clearly

Small Business Marketing: Product and Pricing Strategies

Small Business Promotion: Capturing the Eyes of Your Market

Small Business Distribution and Location

Small Business Accounting: Projecting and Evaluating Performance

Cash: Lifeblood of the Business

Small Business Finance: Using Equity, debt, and Gifts

Assets: Inventory and Operations Management

Small Business Protection: Risk Management and Insurance

Legal Issues: Recognizing Your Small Business Needs

Human Resource Management: Small Business Considerations

Filters

Most small businesses are more _ than _.

_ refers to the size of the market,whereas _ refers to the geographic range covered by the market.