Question 1

Containers Etc.manufactures household containers.In contrast to traditional market designs,all of the products are microwaveable,child-proof and come in an assortment of 35 colors.Accordingly,Containers Etc.is pursuing a _____ strategy.

Accepted Answer

A)  product-based
B)  differentiation-based
C)  concept-based
D)  efficiency-based B

Question 2

Serendipity describes a new product idea resulting from deliberate search activities.

Accepted Answer

A) True 
 B)False  False

Question 3

Observations about the external environment and organizational potentials can be brought together by means of

Accepted Answer

A)  an alignment strategy.
B)  the in-and-out assessment.
C)  a SWOT analysis.
D)  common sense critique. C

Question 4

Carol enjoyed yarn crafts but there were no yarn shops in her small town.She reasoned that there were many others nearby who might appreciate being able to purchase yarns and supplies without a long drive.Within a year her shop was profitable and expanding into larger space.Which of these statements best describes this situation?

Accepted Answer

A)  Carol grew a business out of her personal experience.
B)  Carol turned her hobby into a thriving business.
C)  Carol accidentally stumbled upon a gold mine.
D)  Carol used her work experience as a source of startup ideas.

Question 5

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
-Those organizational resources that are visible and easy to measure

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
-Those...

Question 6

Considering Michael Porter's five factors,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.

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
-Identification of potential new products or services that may lead to promising businesses

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
-Identification...

Question 8

The general environment includes rival companies and products.

Accepted Answer

A) True 
 B)False

Question 9

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)  low barriers to entry.
B)  availability of substitutes.
C)  intense rivalry.
D)  strong suppliers.

Question 10

According to the feasibility analysis framework,an entrepreneur who has a vision of a multi-unit company will

Accepted Answer

A)  be satisfied with an attractive niche so the company can gain market share.
B)  check to see if the health of the micro-market is strong enough for future macro-market growth.
C)  desire a healthier micro-market potential growth over the health of the macro-market.
D)  be satisfied with an attractive niche if it would serve as a point of entry for long-term potential.

Question 11

Name and describe the two broad-based strategy options that a firm can select when pursuing a competitive advantage in the marketplace.

Accepted Answer

The answer of Name and describe the two broad-based strategy...

Question 12

When Sally realized her vintage clothing pieces were being bought by the local college students and not just their parents,she started adding more vintage pieces to her inventory.Sally is

Accepted Answer

A)  recognizing a hot trend and riding the wave.
B)  combining two businesses into one to create a market opening.
C)  beginning with a problem in mind.
D)  considering ways to adapt a product or service to meet customer needs in a different way.

Question 13

The very feature of a market that makes it attractive to one small company (the lack of competition)will make it attractive to others;this fact is called the __________ ___ ___________.​

Accepted Answer

The answer of The very feature of a market that...

Question 14

Match:
a.cost-based strategy
b.focus strategy
c.general environment
d.industry environment
e.inside-out analysis
f.intangible resources
g.new benefit ideas
h.new market ideas
i.new technology ideas
-The broad environment,encompassing factors that influence most businesses in a society

Accepted Answer

The answer of Match:
a.cost-based strategy
b.focus strategy
c.general environment
d.industry environment
e.inside-out analysis
f.intangible resources
g.new...

Question 15

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 company's routines and processes that can coordinate the combined use of its productive assets in order to achieve desired outcomes

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 16

List the five factors that determine the nature and degree of competition in an industry,as presented by Michael Porter in his book Competitive Advantage.Why is the proper identification of these factors important for a new venture?

Accepted Answer

The answer of List the five factors that determine the...

Question 17

Janis wants to open a restaurant.She is not interested in a franchise;she wants to build her business literally from the ground up.When she does,her business will be classified as a:

Accepted Answer

A)  entrepreneurial opportunity.
B)  startup.
C)  new market idea.
D)  serendipity.

Question 18

An example of an idea for a new startup from a hobby is

Accepted Answer

A)  a coin collector,who bought and sold coins for years to build a personal collection,deciding to become a coin dealer.
B)  a furniture salesperson seeing the possibility of opening a new furniture store in a different area of the city.
C)  a sharpshooter,who shot holes in a pair of her boyfriend's jeans during an argument,hearing him get complimented on the way they look.
D)  all of the above are examples.

Question 19

An example of an idea for a new startup from an accidental discovery is

Accepted Answer

A)  a coin collector,who bought and sold coins for years to build a personal collection,deciding to become a coin dealer.
B)  a furniture salesperson seeing the possibility of opening a new furniture store in a different area of the city.
C)  a sharpshooter,who shot holes in a pair of her boyfriend's jeans during an argument,hearing him get complimented on the way they look.
D)  all of the above are examples.

Question 20

Verlin worked in a cabinet shop until he became frustrated that his ideas for improving efficiency were falling on deaf ears.So he left and started his own cabinet shop where he could implement those ideas.From which source did his ideas for his startup come?

Accepted Answer

A)  From hobbies
B)  From personal interests
C)  From accidental discovery
D)  From work experience

Exam 3: Starting a Small Business

Containers Etc.manufactures household containers.In contrast to traditional market designs,all of the products are microwaveable,child-proof and come in an assortment of 35 colors.Accordingly,Containers Etc.is pursuing a _____ strategy.

Serendipity describes a new product idea resulting from deliberate search activities.

Observations about the external environment and organizational potentials can be brought together by means 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 -Those organizational resources that are visible and easy to measure

Considering Michael Porter's five factors,we can say that the fast food hamburger industry is characterized by:

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 -Identification of potential new products or services that may lead to promising businesses

The general environment includes rival companies and products.

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:

According to the feasibility analysis framework,an entrepreneur who has a vision of a multi-unit company will

Name and describe the two broad-based strategy options that a firm can select when pursuing a competitive advantage in the marketplace.

When Sally realized her vintage clothing pieces were being bought by the local college students and not just their parents,she started adding more vintage pieces to her inventory.Sally is

The very feature of a market that makes it attractive to one small company (the lack of competition)will make it attractive to others;this fact is called the ________ _ ___________.

Match: a.cost-based strategy b.focus strategy c.general environment d.industry environment e.inside-out analysis f.intangible resources g.new benefit ideas h.new market ideas i.new technology ideas -The broad environment,encompassing factors that influence most businesses in a society

List the five factors that determine the nature and degree of competition in an industry,as presented by Michael Porter in his book Competitive Advantage.Why is the proper identification of these factors important for a new venture?

Janis wants to open a restaurant.She is not interested in a franchise;she wants to build her business literally from the ground up.When she does,her business will be classified as a:

An example of an idea for a new startup from a hobby is

An example of an idea for a new startup from an accidental discovery is

Verlin worked in a cabinet shop until he became frustrated that his ideas for improving efficiency were falling on deaf ears.So he left and started his own cabinet shop where he could implement those ideas.From which source did his ideas for his startup come?

Exam 3: Starting a Small Business

Containers Etc.manufactures household containers.In contrast to traditional market designs,all of the products are microwaveable,child-proof and come in an assortment of 35 colors.Accordingly,Containers Etc.is pursuing a _____ strategy.

Serendipity describes a new product idea resulting from deliberate search activities.

Observations about the external environment and organizational potentials can be brought together by means 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 -Those organizational resources that are visible and easy to measure

Considering Michael Porter's five factors,we can say that the fast food hamburger industry is characterized by:

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 -Identification of potential new products or services that may lead to promising businesses

The general environment includes rival companies and products.

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:

According to the feasibility analysis framework,an entrepreneur who has a vision of a multi-unit company will

Name and describe the two broad-based strategy options that a firm can select when pursuing a competitive advantage in the marketplace.

When Sally realized her vintage clothing pieces were being bought by the local college students and not just their parents,she started adding more vintage pieces to her inventory.Sally is

The very feature of a market that makes it attractive to one small company (the lack of competition)will make it attractive to others;this fact is called the __________ ___ ___________.​

Match: a.cost-based strategy b.focus strategy c.general environment d.industry environment e.inside-out analysis f.intangible resources g.new benefit ideas h.new market ideas i.new technology ideas -The broad environment,encompassing factors that influence most businesses in a society

List the five factors that determine the nature and degree of competition in an industry,as presented by Michael Porter in his book Competitive Advantage.Why is the proper identification of these factors important for a new venture?

Janis wants to open a restaurant.She is not interested in a franchise;she wants to build her business literally from the ground up.When she does,her business will be classified as a:

An example of an idea for a new startup from a hobby is

An example of an idea for a new startup from an accidental discovery is

Verlin worked in a cabinet shop until he became frustrated that his ideas for improving efficiency were falling on deaf ears.So he left and started his own cabinet shop where he could implement those ideas.From which source did his ideas for his startup come?

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 -Those organizational resources that are visible and easy to measure

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 -Identification of potential new products or services that may lead to promising businesses

The very feature of a market that makes it attractive to one small company (the lack of competition)will make it attractive to others;this fact is called the ________ _ ___________.