Question 1

Match the term with its definition.
-Readiness to act on existing, but previously unnoticed, business opportunities

Accepted Answer

A) capabilities 
B) competitive advantage 
C) competitive environment 
D) core competencies 
E) cost-based strategy
F)differentiation-based strategy
G)entrepreneurial alertness
H)fatal flaw
I)feasibility analysis 
A) capabilities 
B) competitive advantage 
C) competitive environment 
D) core competencies 
E) cost-based strategy
F)differentiation-based strategy
G)entrepreneurial alertness
H)fatal flaw
I)feasibility analysis

Question 2

The general environment includes rival companies and products.

Accepted Answer

A) True 
 B)False

Question 3

Match the term with its definition.
-A plan of action designed to provide a product or service with unique attributes that are valued by consumers

Accepted Answer

A) capabilities 
B) competitive advantage 
C) competitive environment 
D) core competencies 
E) cost-based strategy
F)differentiation-based strategy
G)entrepreneurial alertness
H)fatal flaw
I)feasibility analysis 
A) capabilities 
B) competitive advantage 
C) competitive environment 
D) core competencies 
E) cost-based strategy
F)differentiation-based strategy
G)entrepreneurial alertness
H)fatal flaw
I)feasibility analysis

Question 4

Which of the following statements is an example of a technological trend?

Accepted Answer

A)  The Federal Reserve announces that it will decrease the interest rate charged to banks. 
B)  Congress passes legislation that increases the tax rates on corporations. 
C)  A new computer chip is developed that will allow for miniaturization of many electronic devices. 
D)  The European Union announces an increase in tariffs on all agricultural goods. 
A)  The Federal Reserve announces that it will decrease the interest rate charged to banks. 
B)  Congress passes legislation that increases the tax rates on corporations. 
C)  A new computer chip is developed that will allow for miniaturization of many electronic devices. 
D)  The European Union announces an increase in tariffs on all agricultural goods.

Question 5

Match the term with its definition.
-New business ventures created "from scratch"

Accepted Answer

A) paradox of attraction 
B) pivot 
C) resources 
D) serendipity 
E) startups
F)strategy
G)SWOT analysis
H)tangible resources 
A) paradox of attraction 
B) pivot 
C) resources 
D) serendipity 
E) startups
F)strategy
G)SWOT analysis
H)tangible resources

Question 6

A computer technician recognizing a need for more aesthetically pleasing computers would be said to have entrepreneurial

Accepted Answer

A)  technology. 
B)  alertness. 
C)  strategy. 
D)  rivalry. 
A)  technology. 
B)  alertness. 
C)  strategy. 
D)  rivalry.

Question 7

Match the term with its definition.
-Organizational resources that are invisible and difficult to assess

Accepted Answer

A) focus strategies 
B) general environment 
C) industry environment 
D) intangible resources 
E) new benefit ideas
F)new market ideas
G)new technology ideas
H)opportunity recognition 
A) focus strategies 
B) general environment 
C) industry environment 
D) intangible resources 
E) new benefit ideas
F)new market ideas
G)new technology ideas
H)opportunity recognition

Question 8

Which of the following statements is an example of a global trend?

Accepted Answer

A)  The Federal Reserve announces that it will decrease the interest rate charged to banks. 
B)  Congress passes legislation that increases the tax rates on corporations. 
C)  A new computer chip is developed that will allow for miniaturization of many electronic devices. 
D)  The European Union declares an increase in tariffs on all agricultural goods. 
A)  The Federal Reserve announces that it will decrease the interest rate charged to banks. 
B)  Congress passes legislation that increases the tax rates on corporations. 
C)  A new computer chip is developed that will allow for miniaturization of many electronic devices. 
D)  The European Union declares an increase in tariffs on all agricultural goods.

Question 9

Only cost-based strategies should be used when focusing on a market niche.

Accepted Answer

A) True 
 B)False

Question 10

Wilma needed wine glasses, but all she had were candlestick holders and 8-ounce canning jars. Gluing the two together, she created what she called "mountain crystal" which became a big hit. The local crafters' association asked her to make enough for them to sell, and her business took off. This is an example of building a business from

Accepted Answer

A)  work experience. 
B)  a hobby. 
C)  a personal interest. 
D)  accidental discovery. 
A)  work experience. 
B)  a hobby. 
C)  a personal interest. 
D)  accidental discovery.

Question 11

Match the term with its definition.
-A facility for making desirable discoveries by accident

Accepted Answer

A) paradox of attraction 
B) pivot 
C) resources 
D) serendipity 
E) startups
F)strategy
G)SWOT analysis
H)tangible resources 
A) paradox of attraction 
B) pivot 
C) resources 
D) serendipity 
E) startups
F)strategy
G)SWOT analysis
H)tangible resources

Question 12

The diamond market is monopolized by the DeBeers organization, from mining to cutting and polishing to wholesaling. Jewelers can do little to negotiate prices. This situation typifies

Accepted Answer

A)  powerful buyers. 
B)  availability of substitutes. 
C)  intense rivalry. 
D)  powerful suppliers. 
A)  powerful buyers. 
B)  availability of substitutes. 
C)  intense rivalry. 
D)  powerful suppliers.

Question 13

Which of the following could be considered a core competency?

Accepted Answer

A)  Zappos' 365-day return policy 
B)  NutriSystem's claim that users lose weight by eating 
C)  McDonald's ability to fry hamburgers quickly 
D)  Southwest Airlines' ability to make flying fun 
A)  Zappos' 365-day return policy 
B)  NutriSystem's claim that users lose weight by eating 
C)  McDonald's ability to fry hamburgers quickly 
D)  Southwest Airlines' ability to make flying fun

Question 14

Milton's Auto Service is a small auto maintenance and repair shop located in a small town in a garage behind Milton's house. Milton doesn't charge as much as auto dealerships, so he has a steady stream of local customers. Which of the following best describes Milton's strategy?

Accepted Answer

A)  Innovation 
B)  Strategic alliances 
C)  Cost-based 
D)  Differentiation-based 
A)  Innovation 
B)  Strategic alliances 
C)  Cost-based 
D)  Differentiation-based

Question 15

Match the term with its definition.
-A circumstance or development that alone could render a new business unsuccessful

Accepted Answer

A) capabilities 
B) competitive advantage 
C) competitive environment 
D) core competencies 
E) cost-based strategy
F)differentiation-based strategy
G)entrepreneurial alertness
H)fatal flaw
I)feasibility analysis 
A) capabilities 
B) competitive advantage 
C) competitive environment 
D) core competencies 
E) cost-based strategy
F)differentiation-based strategy
G)entrepreneurial alertness
H)fatal flaw
I)feasibility analysis

Question 16

A focus strategy can be set up in all of the following ways EXCEPT

Accepted Answer

A)  by expanding the market to a number of geographical regions. 
B)  by concentrating on the superiority of the product or service. 
C)  by emphasizing a single product or service. 
D)  by restricting the target market to a single subset of customers. 
A)  by expanding the market to a number of geographical regions. 
B)  by concentrating on the superiority of the product or service. 
C)  by emphasizing a single product or service. 
D)  by restricting the target market to a single subset of customers.

Question 17

Miles' startup company began well, but within a couple months he found he was unable to pay invoices from suppliers. He didn't understand how he could have this problem. He hired experts; his business idea was sound; and he had many new customers. What went wrong?

Accepted Answer

A)  Miles lacked critical technologies. 
B)  Miles lacked patents or copyrights. 
C)  Miles lacked raw materials. 
D)  Miles lacked cash resources. 
A)  Miles lacked critical technologies. 
B)  Miles lacked patents or copyrights. 
C)  Miles lacked raw materials. 
D)  Miles lacked cash resources.

Question 18

Match the term with its definition.
-The capabilities that distinguish a firm competitively and reflect its focus and personality

Accepted Answer

A) capabilities 
B) competitive advantage 
C) competitive environment 
D) core competencies 
E) cost-based strategy
F)differentiation-based strategy
G)entrepreneurial alertness
H)fatal flaw
I)feasibility analysis 
A) capabilities 
B) competitive advantage 
C) competitive environment 
D) core competencies 
E) cost-based strategy
F)differentiation-based strategy
G)entrepreneurial alertness
H)fatal flaw
I)feasibility analysis

Question 19

Entrepreneurs who want to start or build a business based on inside-out analysis will first need to

Accepted Answer

A)  have an in-depth understanding of the general environment. 
B)  select and implement a focus strategy. 
C)  determine the strength, position, and likely responses of rival businesses. 
D)  have a solid grasp of the resources and capabilities that are available to them. 
A)  have an in-depth understanding of the general environment. 
B)  select and implement a focus strategy. 
C)  determine the strength, position, and likely responses of rival businesses. 
D)  have a solid grasp of the resources and capabilities that are available to them.

Question 20

Considering Michael Porter's five factors that determine the nature and degree of competition in an industry, we can say that the fast-food hamburger industry is characterized by

Accepted Answer

A)  intense rivalry. 
B)  strong suppliers. 
C)  strong buyers. 
D)  ease of entry into the industry. 
A)  intense rivalry. 
B)  strong suppliers. 
C)  strong buyers. 
D)  ease of entry into the industry.

Exam 3: Starting a Small Business

Match the term with its definition. -Readiness to act on existing, but previously unnoticed, business opportunities

The general environment includes rival companies and products.

Match the term with its definition. -A plan of action designed to provide a product or service with unique attributes that are valued by consumers

Which of the following statements is an example of a technological trend?

Match the term with its definition. -New business ventures created "from scratch"

A computer technician recognizing a need for more aesthetically pleasing computers would be said to have entrepreneurial

Match the term with its definition. -Organizational resources that are invisible and difficult to assess

Which of the following statements is an example of a global trend?

Only cost-based strategies should be used when focusing on a market niche.

Match the term with its definition. -A facility for making desirable discoveries by accident

The diamond market is monopolized by the DeBeers organization, from mining to cutting and polishing to wholesaling. Jewelers can do little to negotiate prices. This situation typifies

Which of the following could be considered a core competency?

Milton's Auto Service is a small auto maintenance and repair shop located in a small town in a garage behind Milton's house. Milton doesn't charge as much as auto dealerships, so he has a steady stream of local customers. Which of the following best describes Milton's strategy?

Match the term with its definition. -A circumstance or development that alone could render a new business unsuccessful

A focus strategy can be set up in all of the following ways EXCEPT

Miles' startup company began well, but within a couple months he found he was unable to pay invoices from suppliers. He didn't understand how he could have this problem. He hired experts; his business idea was sound; and he had many new customers. What went wrong?

Match the term with its definition. -The capabilities that distinguish a firm competitively and reflect its focus and personality

Entrepreneurs who want to start or build a business based on inside-out analysis will first need to

Considering Michael Porter's five factors that determine the nature and degree of competition in an industry, we can say that the fast-food hamburger industry is characterized by

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 Businesses

Professional Management and the Small Business

Managing Human Resources

Managing Small Business Operations

Managing the Firms Assets

Managing Risk

Filters