Question 1

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

Accepted Answer

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

Question 2

Substitute products

Accepted Answer

A) reduce the attractiveness and profitability of an industry. 
B) represent those items manufactured by direct rivals within an industry. 
C) are usually cheaper than the products they can replace. 
D) are always a serious threat to rivals in an industry. 
A) reduce the attractiveness and profitability of an industry. 
B) represent those items manufactured by direct rivals within an industry. 
C) are usually cheaper than the products they can replace. 
D) are always a serious threat to rivals in an industry.

Question 3

A focus strategy is best described as

Accepted Answer

A) an attempt to compete directly with industry giants. 
B) a domestic marketing strategy. 
C) a strategy that isolates the firm from market forces. 
D) targeting the high end of a market. 
A) an attempt to compete directly with industry giants. 
B) a domestic marketing strategy. 
C) a strategy that isolates the firm from market forces. 
D) targeting the high end of a market.

Question 4

Considering Michael Porter's five factors,the automotive industry in the United States is characterized by:

Accepted Answer

A) weak rivalry. 
B) high barriers to entry. 
C) many substitute products. 
D) weak suppliers. 
A) weak rivalry. 
B) high barriers to entry. 
C) many substitute products. 
D) weak suppliers.

Question 5

According to a study by the National Federation of Independent Business,the most common source of new product ideas for small business startups is

Accepted Answer

A) prior work experience. 
B) personal interests and hobbies. 
C) a chance happening. 
D) existing records of a business. 
A) prior work experience. 
B) personal interests and hobbies. 
C) a chance happening. 
D) existing records of a business.

Question 6

_____ 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 7

Match:
a.opportunity recognition
b.outside-in analysis
c.pivot
d.resources
e.serendipity
f.startups
g.strategy
h.SWOT analysis
i.tangible resources
j.​paradox of attraction
-The study of the general and industry environments of a business context to identify potential startup opportunities

Accepted Answer

The answer of Match:
a.opportunity recognition
b.outside-in analysis
c.pivot
d.resources
e.serendipity
f.startups
g.strategy
h.SWOT analysis
i.tangible resources
j.​paradox of attraction
-The...

Question 8

Match:
a.capabilities
b.competitive advantage
c.competitive environment
d.core competencies
e.cost-based strategy
f.differentiation strategy
g.entrepreneurial alertness
h.fatal flaw
i.feasibility analysis
-A circumstance or development that alone could render a new business unsuccessful

Accepted Answer

The answer of Match:
a.capabilities
b.competitive advantage
c.competitive environment
d.core competencies
e.cost-based strategy
f.differentiation strategy
g.entrepreneurial alertness
h.fatal...

Question 9

Match:
a.capabilities
b.competitive advantage
c.competitive environment
d.core competencies
e.cost-based strategy
f.differentiation strategy
g.entrepreneurial alertness
h.fatal flaw
i.feasibility analysis
-A preliminary assessment of a business idea that gauges whether the venture envisioned is likely to succeed

Accepted Answer

The answer of Match:
a.capabilities
b.competitive advantage
c.competitive environment
d.core competencies
e.cost-based strategy
f.differentiation strategy
g.entrepreneurial alertness
h.fatal...

Question 10

During a feasibility analysis,an entrepreneur may discover a fatal flaw in the idea.

Accepted Answer

A) True 
 B)False

Question 11

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:

Accepted Answer

A) serendipity. 
B) diversification. 
C) innovative thinking 
D) market ideas. 
A) serendipity. 
B) diversification. 
C) innovative thinking 
D) market ideas.

Question 12

An inside-out analysis identifies a company's strengths and the competition's weaknesses.

Accepted Answer

A) True 
 B)False

Question 13

Match:
a.opportunity recognition
b.outside-in analysis
c.pivot
d.resources
e.serendipity
f.startups
g.strategy
h.SWOT analysis
i.tangible resources
j.​paradox of attraction
-A facility for making desirable discoveries by accident

Accepted Answer

The answer of Match:
a.opportunity recognition
b.outside-in analysis
c.pivot
d.resources
e.serendipity
f.startups
g.strategy
h.SWOT analysis
i.tangible resources
j.​paradox of attraction
-A...

Question 14

When screening new business ideas,the entrepreneur need not focus on the size of the targeted market.

Accepted Answer

A) True 
 B)False

Question 15

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 16

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 17

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 18

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 19

Match:
a.capabilities
b.competitive advantage
c.competitive environment
d.core competencies
e.cost-based strategy
f.differentiation strategy
g.entrepreneurial alertness
h.fatal flaw
i.feasibility analysis
-The environment that focuses on the strength,position,and likely moves and countermoves of competitors in an industry

Accepted Answer

The answer of Match:
a.capabilities
b.competitive advantage
c.competitive environment
d.core competencies
e.cost-based strategy
f.differentiation strategy
g.entrepreneurial alertness
h.fatal...

Question 20

By observing trends in the use of leisure time,technology,or other areas,an entrepreneur can discover potential business ideas.

Accepted Answer

A) True 
 B)False

Exam 3: Starting a Small Business

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

Substitute products

A focus strategy is best described as

Considering Michael Porter's five factors,the automotive industry in the United States is characterized by:

According to a study by the National Federation of Independent Business,the most common source of new product ideas for small business startups is

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

Match: a.opportunity recognition b.outside-in analysis c.pivot d.resources e.serendipity f.startups g.strategy h.SWOT analysis i.tangible resources j.​paradox of attraction -The study of the general and industry environments of a business context to identify potential startup opportunities

Match: a.capabilities b.competitive advantage c.competitive environment d.core competencies e.cost-based strategy f.differentiation strategy g.entrepreneurial alertness h.fatal flaw i.feasibility analysis -A circumstance or development that alone could render a new business unsuccessful

During a feasibility analysis,an entrepreneur may discover a fatal flaw in the idea.

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:

An inside-out analysis identifies a company's strengths and the competition's weaknesses.

Match: a.opportunity recognition b.outside-in analysis c.pivot d.resources e.serendipity f.startups g.strategy h.SWOT analysis i.tangible resources j.​paradox of attraction -A facility for making desirable discoveries by accident

When screening new business ideas,the entrepreneur need not focus on the size of the targeted market.

According to Michael Porter,a focus strategy can erode when

Tangible resources include:

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

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.

By observing trends in the use of leisure time,technology,or other areas,an entrepreneur can discover potential business ideas.

The Entrepreneurial Lifethe 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 Firms Financial Statements

Forecasting Financial Requirements

A Firms 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 Firms Assets

Managing Risk

Filters

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

Match: a.opportunity recognition b.outside-in analysis c.pivot d.resources e.serendipity f.startups g.strategy h.SWOT analysis i.tangible resources j.paradox of attraction -The study of the general and industry environments of a business context to identify potential startup opportunities

Match: a.opportunity recognition b.outside-in analysis c.pivot d.resources e.serendipity f.startups g.strategy h.SWOT analysis i.tangible resources j.paradox of attraction -A facility for making desirable discoveries by accident