Question 1

Jennifer can't wait to start her business.The excitement of running her own enterprise and the risks of failure are both thrilling to her.What is Jennifer experiencing?

Accepted Answer

A)   start-up fever
B)   start-up anxiety
C)   start-up rush
D)   start-up apprehension A

Question 2

Many new businesses are formed as a result of the entrepreneur's prior work experience,through which he or she sees ways to improve and/or modify a product.

Accepted Answer

A) True 
 B)False  True

Question 3

A cardiologist creates a device that attaches to a smart phone to provide real-time information to a patient's doctor.The product outsells all other monitoring devices.Which factor most contributes to the competitive advantage of this product?

Accepted Answer

A)   price/value
B)   unique service features
C)   customer service
D)   accessibility B

Question 4

Folding bed sheets with elastic corners was difficult for Rose.She created a tool to help keep the corners straight.This tool worked so well she developed a web business to sell it on the Internet.What was the source of Rose's new business idea?

Accepted Answer

A)   personal experience
B)   hobby and personal interests
C)   accidental discovery
D)   deliberate new business search

Question 5

Niche marketing guarantees a sustainable competitive advantage.

Accepted Answer

A) True 
 B)False

Question 6

In the textbook,Michael Porter is cited as having written about the five forces of determining the nature and degree of competition in an industry.

Accepted Answer

A) True 
 B)False

Question 7

Which environment is very broad and includes factors that affect all businesses in society?

Accepted Answer

A)   general
B)   industry
C)   market
D)   global

Question 8

Define and briefly explain sustainable competitive advantage.

Accepted Answer

The answer of Define and briefly explain sustainable competitive advantage....

Question 9

An effective marketing advantage can occur when the consumer is convinced of the uniqueness and desirability of the product or service-real or perceived.

Accepted Answer

A) True 
 B)False

Question 10

Small businesses should always pursue a multisegmentation strategy as they can safely spread their resources out thinly.

Accepted Answer

A) True 
 B)False

Question 11

According to Michael Porter,when can a focus strategy erode?

Accepted Answer

A)   when the strategy is unique
B)   when the target segment's differences from other segments widen
C)   when new firms subsegment the industry
D)   when demand increases and the segment becomes attractive

Question 12

Though a number of paths can lead to competitive advantage,some of the more common ones include distinctions based on five core elements.Name these elements and provide one example of each of them.

Accepted Answer

The answer of Though a number of paths can lead...

Question 13

Which component of a SWOT analysis is "lack of management skills or experience"?

Accepted Answer

A)   strengths
B)   weaknesses
C)   opportunities
D)   threats

Question 14

Which of the following is an intangible organizational resource?

Accepted Answer

A)   plants and equipment
B)   borrowing capacity
C)   patents and copyrights
D)   cash reserves

Question 15

Once a competitive advantage is achieved,the entrepreneur can focus much less on the external environment to pay more attention to the internal environment.

Accepted Answer

A) True 
 B)False

Question 16

Elle loves to cycle between small towns in Northern Ontario.This inspired her to use her own maps of safe cycling roads to create an Internet subscription business for other cycling enthusiasts.What was the source of Elle's new business idea?

Accepted Answer

A)   personal experience
B)   hobbies and personal interests
C)   accidental discovery
D)   deliberate new business search

Question 17

Describe two reasons why the single-segmentation approach is probably the wisest strategy for small businesses to use during initial marketing efforts.

Accepted Answer

The answer of Describe two reasons why the single-segmentation approach...

Question 18

Compare the different approaches to deliberate search for new venture ideas.

Accepted Answer

The answer of Compare the different approaches to deliberate search...

Question 19

Hobbies of retiring business executives can spawn start-up ideas.

Accepted Answer

A) True 
 B)False

Question 20

The industry environment is very broad,comprising general factors that affect all,or at least most,businesses in a society.

Accepted Answer

A) True 
 B)False

Exam 2: Start-Up and the Need for Competitive Advantage

Jennifer can't wait to start her business.The excitement of running her own enterprise and the risks of failure are both thrilling to her.What is Jennifer experiencing?

Many new businesses are formed as a result of the entrepreneur's prior work experience,through which he or she sees ways to improve and/or modify a product.

A cardiologist creates a device that attaches to a smart phone to provide real-time information to a patient's doctor.The product outsells all other monitoring devices.Which factor most contributes to the competitive advantage of this product?

Folding bed sheets with elastic corners was difficult for Rose.She created a tool to help keep the corners straight.This tool worked so well she developed a web business to sell it on the Internet.What was the source of Rose's new business idea?

Niche marketing guarantees a sustainable competitive advantage.

In the textbook,Michael Porter is cited as having written about the five forces of determining the nature and degree of competition in an industry.

Which environment is very broad and includes factors that affect all businesses in society?

Define and briefly explain sustainable competitive advantage.

An effective marketing advantage can occur when the consumer is convinced of the uniqueness and desirability of the product or service-real or perceived.

Small businesses should always pursue a multisegmentation strategy as they can safely spread their resources out thinly.

According to Michael Porter,when can a focus strategy erode?

Though a number of paths can lead to competitive advantage,some of the more common ones include distinctions based on five core elements.Name these elements and provide one example of each of them.

Which component of a SWOT analysis is "lack of management skills or experience"?

Which of the following is an intangible organizational resource?

Once a competitive advantage is achieved,the entrepreneur can focus much less on the external environment to pay more attention to the internal environment.

Elle loves to cycle between small towns in Northern Ontario.This inspired her to use her own maps of safe cycling roads to create an Internet subscription business for other cycling enthusiasts.What was the source of Elle's new business idea?

Describe two reasons why the single-segmentation approach is probably the wisest strategy for small businesses to use during initial marketing efforts.

Compare the different approaches to deliberate search for new venture ideas.

Hobbies of retiring business executives can spawn start-up ideas.

The industry environment is very broad,comprising general factors that affect all,or at least most,businesses in a society.