Question 1

What is an entry wedge? Explain any five of the entry wedges.

Accepted Answer

Entry wedge is an opportunity that makes

Question 2

Which of the following is a key benefit of the entry wedge of customer contracting?

Accepted Answer

A)  Scale savings 
B)  Lower costs 
C)  Scope savings 
D)  Technology 
A)  Scale savings 
B)  Lower costs 
C)  Scope savings 
D)  Technology

Question 3

Imitation plus one degree of similarity results in:

Accepted Answer

A)  patterning a business on existing firms. 
B)  creating previously unseen products or services. 
C)  creating products or services that have no competitors. 
D)  characterizing a business based on the returns it offers. 
A)  patterning a business on existing firms. 
B)  creating previously unseen products or services. 
C)  creating products or services that have no competitors. 
D)  characterizing a business based on the returns it offers.

Question 4

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 5

Which of the following statements is true regarding the entry wedge of supply shortage?

Accepted Answer

A)  It occurs when a new product is in demand. 
B)  It takes place in a stable market that doesn't change rapidly. 
C)  It takes place in a long-term market. 
D)  It occurs when certain physical resources are unutilized. 
A)  It occurs when a new product is in demand. 
B)  It takes place in a stable market that doesn't change rapidly. 
C)  It takes place in a long-term market. 
D)  It occurs when certain physical resources are unutilized.

Question 6

Which of the following is a value benefit?

Accepted Answer

A)  Scale savings 
B)  Cost savings 
C)  Learning 
D)  Technology 
A)  Scale savings 
B)  Cost savings 
C)  Learning 
D)  Technology

Question 7

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 8

_____ 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 9

In which of the following stages is there an explosion of choices in terms of products and services?

Accepted Answer

A)  Introduction stage 
B)  Growth stage 
C)  Maturity stage 
D)  Decline stage 
A)  Introduction stage 
B)  Growth stage 
C)  Maturity stage 
D)  Decline stage

Question 10

An imitative business that competes locally with others in the same industry is referred to as _____.

Accepted Answer

A)  incremental competition 
B)  niche business 
C)  linear competition 
D)  parallel competition 
A)  incremental competition 
B)  niche business 
C)  linear competition 
D)  parallel competition

Question 11

North American industry classification system (NAICS)codes have _____ digits.

Accepted Answer

A)  three 
B)  six 
C)  eight 
D)  nine 
A)  three 
B)  six 
C)  eight 
D)  nine

Question 12

Which of the following types of value benefits is most likely to be offered by a product if it helps the community,a group,the environment,or the world?

Accepted Answer

A)  Scope savings 
B)  Personalization 
C)  Altruism 
D)  Scale savings 
A)  Scope savings 
B)  Personalization 
C)  Altruism 
D)  Scale savings

Question 13

_____ 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 14

Magic number is defined as:

Accepted Answer

A)  the number of employees hired by a start-up in the first year. 
B)  the post-tax income the entrepreneur personally seeks from the business. 
C)  the number of loyal customers. 
D)  the income a start-up is able to generate from quarterly sales. 
A)  the number of employees hired by a start-up in the first year. 
B)  the post-tax income the entrepreneur personally seeks from the business. 
C)  the number of loyal customers. 
D)  the income a start-up is able to generate from quarterly sales.

Question 15

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 16

Which of the following is true of a blue ocean strategy?

Accepted Answer

A)  It results in a new product or service. 
B)  It is the business equivalent of cloning. 
C)  It involves patterning a business on existing firms. 
D)  It matches the precision of copying as seen in franchising. 
A)  It results in a new product or service. 
B)  It is the business equivalent of cloning. 
C)  It involves patterning a business on existing firms. 
D)  It matches the precision of copying as seen in franchising.

Question 17

Buying in volume usually produces savings.This leads to the cost benefit of _____.

Accepted Answer

A)  scope savings 
B)  lower costs 
C)  scale savings 
D)  learning 
A)  scope savings 
B)  lower costs 
C)  scale savings 
D)  learning

Question 18

Funds left over after deducting the cost of goods sold are referred to as the net profit.

Accepted Answer

A) True 
 B)False

Question 19

_____ is the particular way a firm implements customer benefits that keeps the firm ahead of other firms in the market.

Accepted Answer

A)  Industry analysis 
B)  Competitive advantage 
C)  Resource distribution 
D)  Market relinquishment 
A)  Industry analysis 
B)  Competitive advantage 
C)  Resource distribution 
D)  Market relinquishment

Question 20

_____ is a type of life cycle stage following a boom in which there is a rapid decrease in the number of firms in an industry.

Accepted Answer

A)  Shake-out 
B)  Growth stage 
C)  Maturity stage 
D)  Retrenchment 
A)  Shake-out 
B)  Growth stage 
C)  Maturity stage 
D)  Retrenchment

What is an entry wedge? Explain any five of the entry wedges.

Which of the following is a key benefit of the entry wedge of customer contracting?

Imitation plus one degree of similarity results in:

Gross profit is defined as:

Which of the following statements is true regarding the entry wedge of supply shortage?

Which of the following is a value benefit?

Which of the following is true of a differentiation strategy?

_____ is a strategic action.

In which of the following stages is there an explosion of choices in terms of products and services?

An imitative business that competes locally with others in the same industry is referred to as _____.

North American industry classification system (NAICS)codes have _____ digits.

Which of the following types of value benefits is most likely to be offered by a product if it helps the community,a group,the environment,or the world?

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

Magic number is defined as:

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

Which of the following is true of a blue ocean strategy?

Buying in volume usually produces savings.This leads to the cost benefit of _____.

Funds left over after deducting the cost of goods sold are referred to as the net profit.

_____ is the particular way a firm implements customer benefits that keeps the firm ahead of other firms in the market.

_____ is a type of life cycle stage following a boom in which there is a rapid decrease in the number of firms in an industry.

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

Marketing Plans: Saying How Youll Get Salespart Four: Cash, Accounting, and Finance in the Small Business

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

Achieving Success in the Small Business

Filters

Exam 7: Small Business Strategies: Imitation With a Twist

What is an entry wedge? Explain any five of the entry wedges.

Which of the following is a key benefit of the entry wedge of customer contracting?

Imitation plus one degree of similarity results in:

Gross profit is defined as:

Which of the following statements is true regarding the entry wedge of supply shortage?

Which of the following is a value benefit?

Which of the following is true of a differentiation strategy?

_____ is a strategic action.

In which of the following stages is there an explosion of choices in terms of products and services?

An imitative business that competes locally with others in the same industry is referred to as _____.

North American industry classification system (NAICS)codes have _____ digits.

Which of the following types of value benefits is most likely to be offered by a product if it helps the community,a group,the environment,or the world?

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

Magic number is defined as:

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

Which of the following is true of a blue ocean strategy?

Buying in volume usually produces savings.This leads to the cost benefit of _____.

Funds left over after deducting the cost of goods sold are referred to as the net profit.

_____ is the particular way a firm implements customer benefits that keeps the firm ahead of other firms in the market.

_____ is a type of life cycle stage following a boom in which there is a rapid decrease in the number of firms in an industry.

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

Marketing Plans: Saying How Youll Get Salespart Four: Cash, Accounting, and Finance in the Small Business

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

Achieving Success in the Small Business

Filters

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