Question 1

An evaluation of the general environment

Accepted Answer

A)  is done before the feasibility analysis. 
B)  can benefit small businesses as well as large firms. 
C)  will clarify the unique value of the startup idea. 
D)  is appropriate only for large firms that have corporate staffs to manage the process. 
A)  is done before the feasibility analysis. 
B)  can benefit small businesses as well as large firms. 
C)  will clarify the unique value of the startup idea. 
D)  is appropriate only for large firms that have corporate staffs to manage the process.

Question 2

Which of the following does an outside-in analysis consider?

Accepted Answer

A)  The general environment 
B)  The competitive environment 
C)  The industry environment 
D)  All of these are correct. 
A)  The general environment 
B)  The competitive environment 
C)  The industry environment 
D)  All of these are correct.

Question 3

Which of the following statements is an example of a political/legal 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 4

Today's smartphones bear little resemblance to the original analog cell phones of the early 1990s. Smartphone capabilities exceed those of the early desktop computers. It seems nearly every adult carries at least one smartphone. Which of the following types of trends does this represent?

Accepted Answer

A)  Sociocultural 
B)  Demographic 
C)  Technological 
D)  Global 
A)  Sociocultural 
B)  Demographic 
C)  Technological 
D)  Global

Question 5

Two general approaches that can help identify business ideas are _____ and _____ analyses.

Accepted Answer

A)  outside-in; inside-out 
B)  industry; competitive 
C)  upside-down; inside-out 
D)  upward; downward 
A)  outside-in; inside-out 
B)  industry; competitive 
C)  upside-down; inside-out 
D)  upward; downward

Question 6

Jeff Bezos' original business plan for Amazon involved taking orders for books and having the items shipped directly from the publisher to the customer. He modified the plan to include other products such as toys and decided to buy the toys from the producers and ship them from his own warehouse. This modification of the original plan is called a

Accepted Answer

A)  change of plan. 
B)  pivot. 
C)  serendipity. 
D)  competitive move. 
A)  change of plan. 
B)  pivot. 
C)  serendipity. 
D)  competitive move.

Question 7

Which of the following statements is an example of an economic 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 rate 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 rate 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 8

For the past several years, the borrowing interest rates have been very low in the United States. This is an example of a(n) _____ trend.

Accepted Answer

A)  economic 
B)  sociocultural 
C)  political/legal 
D)  demographic 
A)  economic 
B)  sociocultural 
C)  political/legal 
D)  demographic

Question 9

Alyson and Andrea, country artists, realized that their love of classic rock was also popular with their fans. Their change to their show to incorporate more rock songs with a country flavor is an example of

Accepted Answer

A)  recognizing a popular trend, and riding the wave. 
B)  combining two businesses to create a market opening. 
C)  beginning with a problem in mind. 
D)  adapting a product or service to meet customer needs in a different way. 
A)  recognizing a popular trend, and riding the wave. 
B)  combining two businesses to create a market opening. 
C)  beginning with a problem in mind. 
D)  adapting a product or service to meet customer needs in a different way.

Question 10

Julie, owner of a bed and breakfast inn, had been asked repeatedly to cater events. Once she realized her kitchen was not being used during the latter part of the day, she started the company. This change is an example of

Accepted Answer

A)  recognizing a popular trend, and riding the wave. 
B)  combining two businesses into one to create a market opening. 
C)  beginning with a problem in mind. 
D)  cashing in on the sharing economy. 
A)  recognizing a popular trend, and riding the wave. 
B)  combining two businesses into one to create a market opening. 
C)  beginning with a problem in mind. 
D)  cashing in on the sharing economy.

Question 11

Which of the following best describes the distinction between a market and an industry?

Accepted Answer

A)  A market has higher barriers to entry than an industry. 
B)  A market consists of direct sellers, whereas an industry consists of intermediaries. 
C)  Unlike industries, markets should be considered from both a "big-picture" and a more focused point of view. 
D)  A market consists of buyers, whereas an industry consist of sellers. 
A)  A market has higher barriers to entry than an industry. 
B)  A market consists of direct sellers, whereas an industry consists of intermediaries. 
C)  Unlike industries, markets should be considered from both a "big-picture" and a more focused point of view. 
D)  A market consists of buyers, whereas an industry consist of sellers.

Question 12

Which of the following statements about resources and capabilities is true?

Accepted Answer

A)  Resources technically are the same as capabilities. 
B)  A startup or small business can have both tangible and intangible capabilities. 
C)  Resources can do nothing on their own. 
D)  Capabilities are inputs to the work of a business. 
A)  Resources technically are the same as capabilities. 
B)  A startup or small business can have both tangible and intangible capabilities. 
C)  Resources can do nothing on their own. 
D)  Capabilities are inputs to the work of a business.

Question 13

TV commercials promote reverse mortgages. Other ads promote medications for high blood pressure, allergies immune system disorders, and high cholesterol. Which of the following types of trends do these represent?

Accepted Answer

A)  Sociocultural 
B)  Global 
C)  Technological 
D)  Demographic 
A)  Sociocultural 
B)  Global 
C)  Technological 
D)  Demographic

Question 14

Many businesses are formed because an entrepreneur saw possibilities for improving or modifying an existing product or service as a result of prior work experience.

Accepted Answer

A) True 
 B)False

Question 15

O-MY-U once had a winning team in every college sport, but athletes graduate and fortunes change. For the past four seasons, the school has only won five games. Hotels in the area that were consistently booked during winning seasons found themselves with vacancies, even with discounted prices. How would Michael Porter explain this?

Accepted Answer

A)  The focus strategy was imitated. 
B)  Demand disappeared. 
C)  The target segment lost its uniqueness. 
D)  New firms subsegmented the industry. 
A)  The focus strategy was imitated. 
B)  Demand disappeared. 
C)  The target segment lost its uniqueness. 
D)  New firms subsegmented the industry.

Question 16

Kitty-Kat Korner fabric shop caters to the quilters in the region. Other fabric shops carry fabrics for all types of clothing, along with floral, yarn, and other craft supplies. Kitty-Kat only carries items related to quilting. Which of the following best describes Kitty-Kat's strategy?

Accepted Answer

A)  Focus 
B)  Cost-based 
C)  Quality 
D)  Innovation 
A)  Focus 
B)  Cost-based 
C)  Quality 
D)  Innovation

Question 17

Match the term with its definition.
-Startup ideas centered around providing customers with an existing product or service not available in their market

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 18

Which of the following is a drawback of a SWOT analysis?

Accepted Answer

A)  It is very time-consuming. 
B)  A professional consultant must perform it. 
C)  It focuses on present conditions. 
D)  It requires information about competitors not readily available to outsiders. 
A)  It is very time-consuming. 
B)  A professional consultant must perform it. 
C)  It focuses on present conditions. 
D)  It requires information about competitors not readily available to outsiders.

Question 19

Match the term with its definition.
-Organizational resources that are visible and easy to measure

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 20

Kitty-Kat Korner fabric shop caters to the quilters in the region. Nowhere else can a quilter find everything she needs: fabrics, notions, pattern books, even quilting machines and quilting classes. This is not your typical fabric store by any means. Which of the following best describes Kitty-Kat's strategy?

Accepted Answer

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

An evaluation of the general environment

Which of the following does an outside-in analysis consider?

Which of the following statements is an example of a political/legal trend?

Today's smartphones bear little resemblance to the original analog cell phones of the early 1990s. Smartphone capabilities exceed those of the early desktop computers. It seems nearly every adult carries at least one smartphone. Which of the following types of trends does this represent?

Two general approaches that can help identify business ideas are _ and _ analyses.

Which of the following statements is an example of an economic trend?

For the past several years, the borrowing interest rates have been very low in the United States. This is an example of a(n) _____ trend.

Alyson and Andrea, country artists, realized that their love of classic rock was also popular with their fans. Their change to their show to incorporate more rock songs with a country flavor is an example of

Julie, owner of a bed and breakfast inn, had been asked repeatedly to cater events. Once she realized her kitchen was not being used during the latter part of the day, she started the company. This change is an example of

Which of the following best describes the distinction between a market and an industry?

Which of the following statements about resources and capabilities is true?

TV commercials promote reverse mortgages. Other ads promote medications for high blood pressure, allergies immune system disorders, and high cholesterol. Which of the following types of trends do these represent?

Many businesses are formed because an entrepreneur saw possibilities for improving or modifying an existing product or service as a result of prior work experience.

Kitty-Kat Korner fabric shop caters to the quilters in the region. Other fabric shops carry fabrics for all types of clothing, along with floral, yarn, and other craft supplies. Kitty-Kat only carries items related to quilting. Which of the following best describes Kitty-Kat's strategy?

Match the term with its definition. -Startup ideas centered around providing customers with an existing product or service not available in their market

Which of the following is a drawback of a SWOT analysis?

Match the term with its definition. -Organizational resources that are visible and easy to measure

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

Exam 3: Starting a Small Business

An evaluation of the general environment

Which of the following does an outside-in analysis consider?

Which of the following statements is an example of a political/legal trend?

Today's smartphones bear little resemblance to the original analog cell phones of the early 1990s. Smartphone capabilities exceed those of the early desktop computers. It seems nearly every adult carries at least one smartphone. Which of the following types of trends does this represent?

Two general approaches that can help identify business ideas are _____ and _____ analyses.

Which of the following statements is an example of an economic trend?

For the past several years, the borrowing interest rates have been very low in the United States. This is an example of a(n) _____ trend.

Alyson and Andrea, country artists, realized that their love of classic rock was also popular with their fans. Their change to their show to incorporate more rock songs with a country flavor is an example of

Julie, owner of a bed and breakfast inn, had been asked repeatedly to cater events. Once she realized her kitchen was not being used during the latter part of the day, she started the company. This change is an example of

Which of the following best describes the distinction between a market and an industry?

Which of the following statements about resources and capabilities is true?

TV commercials promote reverse mortgages. Other ads promote medications for high blood pressure, allergies immune system disorders, and high cholesterol. Which of the following types of trends do these represent?

Many businesses are formed because an entrepreneur saw possibilities for improving or modifying an existing product or service as a result of prior work experience.

Kitty-Kat Korner fabric shop caters to the quilters in the region. Other fabric shops carry fabrics for all types of clothing, along with floral, yarn, and other craft supplies. Kitty-Kat only carries items related to quilting. Which of the following best describes Kitty-Kat's strategy?

Match the term with its definition. -Startup ideas centered around providing customers with an existing product or service not available in their market

Which of the following is a drawback of a SWOT analysis?

Match the term with its definition. -Organizational resources that are visible and easy to measure

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

Two general approaches that can help identify business ideas are _ and _ analyses.