Deck 2: Small Business Management and Entrepreneurship

Question 1

______ is the entrepreneurial behavior that involves the expectation of high levels of growth or profit.

A) General management
B) Supply chain
C) Risk assumption
D) Performance intention

Answer 1

D

Question 2

In a six-stage model of innovation development, testing extends to refining the produce design and identifying production options at which stage?

A) discovery
B) product development
C) early growth
D) commercialization

Answer 2

B

Question 3

The building of prototypes occurs in which stage of the six-stage model of innovation?

A) discovery
B) product development
C) technology demonstration
D) commercialization

Answer 3

C

Question 4

One barrier to innovation in small business is ______.

A) a shortage of engineering and production job talent
B) lack of entrepreneurs entering new markets
C) too much data analytics
D) too many new business opportunities

Question 5

In the growth stage of the start-up process model, what is the primary goal of the small business?

A) regulations
B) employees
C) vendors
D) reaching critical mass (survival)

Question 6

Rubin's day-to-day job as a business owner involves identifying opportunities for which marketable ideas exist and assuming the risk to make these ideas happen. Rubin can best be described as a/an ______.

A) innovator
B) marketer
C) entrepreneur
D) small business manager

Question 7

The stage in the start-up process model in which the small business owner removes himself/herself from the business is which of the following?

A) growth
B) maturity
C) implementation
D) harvest

Question 8

Sue Pallen is a partner in a cake-decorating company. Her role within the company is to identify new markets for growth and sustaining the company's long-term financial health by maintaining all financial records. As such, Sue can best be described as a/an ______.

A) entrepreneur
B) CEO
C) nonprofit manager
D) small business manager

Question 9

The phase of implementation in the entrepreneurial process involves all but which of the following?

A) introducing new products
B) opening new markets
C) industrial reorganization
D) developing an advertising campaign

Question 10

The entrepreneurship process begins with ______.

A) an innovative idea
B) a triggering event
C) implementation
D) growth

Question 11

The time span for the innovation phase may be ______.

A) one month or less
B) one year or more
C) several months or even several years
D) five years or more

Question 12

The entrepreneurial process in the start-up process model begins with ______.

A) a visit to the local banker for start-up funds
B) a visit to the local library for more information on the business
C) a visit to a favorite business professor for advice
D) an innovative idea that is refined as the idea is thought through

Question 13

Entrepreneurship primarily involves which phase of business?

A) the start-up process
B) hiring of key employees
C) maintaining a positive cash flow
D) building and maintaining a sufficient customer base

Question 14

A small business manager faces which of the following environmental forces?

A) finding opportunities
B) prompting creativity
C) locating an incubator
D) hiring and retaining employees

Question 15

Which stage of the start-up process is characterized by relative certainty that the business will survive?

A) growth
B) maturity
C) harvest
D) implementation

Question 16

What type of agreement allows a person the right to produce a product with permission of the intellectual property owner?

A) leasing agreement
B) production agreement
C) private label agreement
D) licensing agreement

Question 17

Jasper has developed a concept for a start-up company that involves developing a new process for priming and painting automobile panels. Based on this example, Jasper is focusing on which entrepreneurial behavior?

A) creation
B) innovation
C) risk assumption
D) performance intention

Question 18

Which of the following behaviors was not cited as being included in most definitions of an entrepreneur?

A) controlling
B) creation
C) innovation
D) risk assumption

Question 19

Which of the following is the key element needed to bring the entrepreneurial idea to reality during the implementation stage?

A) capital/money
B) commitment
C) management expertise
D) a college education

Question 20

When does the entrepreneurship stage end and the small business management stage begin?

A) when the maturity stage ends
B) when the growth stage ends
C) after the entrepreneurial event ends
D) when the triggering event ends

Question 21

An entrepreneur faces which of the following environmental forces?

A) hiring and retaining employees
B) dealing with vendors and suppliers
C) fighting government regulations
D) identifying product opportunities

Question 22

After spending 15 years working in the restaurant industry, Alex has decided to open a restaurant of his own. His 15 years of experience will allow him to capitalize on which of the following?

A) passion
B) determination
C) trustworthiness
D) knowledge

Question 23

In the ______ stage of the business management process, attention is placed on team building, setting strategies, and creating a structure and culture of the business.

A) harvest
B) growth
C) maturity
D) innovation

Question 24

In the innovation and triggering event stages of the start-up process model, which of the following personal characteristics is needed for a small business owner?

A) better opportunity
B) planning
C) commitment
D) risk taking

Question 25

Which of the following is more important in the future development of a small business owner than the formal education received in school?

A) financial backing
B) management expertise
C) lifelong learning
D) technical skills

Question 26

A characteristic of entrepreneurial personality that leads one to avoid goals that would be extremely difficult to achieve or goals with success almost guaranteed is called ______.

A) internal locus of control
B) a high desire for risk
C) flexibility
D) a high need to achieve

Question 27

The personal quality linked to entrepreneurship in which people are motivated to excel and choose situations where success is likely is known as ______.

A) locus of control
B) need to achieve
C) need to succeed
D) high performance goals

Question 28

The ability to control one's own fate is known as ______.

A) locus of control
B) self-determination
C) perseverance
D) need to achieve

Question 29

The one overriding characteristic needed to be a successful small business owner is which of the following?

A) confidence
B) energy
C) vision for the future
D) incredible tenacity

Question 30

The ability to see, conceive, and create new and unique products, services, and processes is known as ______.

A) innovation
B) risk taking
C) product development
D) locus of control

Question 31

The primary reason most people start their own business is to ______.

A) build for their family
B) earn large sums of money
C) use their skills/abilities
D) live where they like

Question 32

In terms of education level of new business owners, the most common educational degree level is the ______.

A) bachelor degree level
B) MBA level
C) PhD level
D) associate degree level

Question 33

In the triggering event and the implementation stages of the start-up process model, which of the following environmental factors will affect the small business?

A) role models
B) suppliers
C) bankers
D) competition

Question 34

Which two areas of coursework are the fastest growing subjects in business schools?

A) management and marketing
B) entrepreneurship and small business management
C) operation management and finance
D) management and finance

Question 35

Which of the following is not prerequisite for becoming a successful entrepreneur?

A) passion
B) determination
C) knowledge
D) education

Question 36

About half of all business owners choose to go into business for themselves because they ______.

A) want to earn lots of money
B) like the challenge
C) want to avoid hard work
D) want to fulfill others' expectations

Question 37

One-day to one-year programs offered through college extension departments that are tailored to entrepreneurs and small business owners are referred to as ______.

A) small-business counseling programs
B) entrepreneurial degree programs
C) corporate grind programs
D) executive education programs

Question 38

In the growth stage of the start-up process model, which of the following organizational characteristics is needed?

A) strategy
B) marketing
C) IPO
D) operation management

Question 39

Forces that occur outside of the business that affect the business and its owner are referred to as ______.

A) financial factors
B) controlled factors
C) environmental factors
D) internal factors

Question 40

In the triggering event stage of the startup process model, which of the following personal characteristics is needed for a small business owner?

A) leadership
B) vision
C) commitment
D) boredom

Question 41

Entrepreneurship and small business management are processes, not isolated incidents.

Question 42

Mergers, IPOs, and ESOPs are all forms that can be taken in the harvest stage of the startup process model.

Question 43

Scenario 2-2. Harry Homer and Jenny Juno are two people extremely interested in establishing a small business. Harry is interested in marketing his newly developed product, which increases the speed by which data are transferred through phone lines. He sees great potential for his new product and is willing to devote his life savings and begin this new venture. Jenny is also interested in this product. She too sees a great potential down the road as businesses adapt this new technology. In the future, she can see a major company growing quickly with the ability to go public or merge with a major phone company.

-In Scenario 2-2, all but which of the following are characteristics Harry possesses as a small business person?

A) risk taker
B) passion
C) perseverance
D) risk averse

Question 44

Entrepreneurs recognize an opportunity and start a business to take advantage of it.

Question 45

More than 50 percent of business owners started their own business in order to earn large sums of money.

Question 46

Environmental factors are the traits possessed by the business owner that affect the development of the small business.

Question 47

Independence and control over their own lives are reasons many people begin small businesses.

Question 48

Scenario 2-2. Harry Homer and Jenny Juno are two people extremely interested in establishing a small business. Harry is interested in marketing his newly developed product, which increases the speed by which data are transferred through phone lines. He sees great potential for his new product and is willing to devote his life savings and begin this new venture. Jenny is also interested in this product. She too sees a great potential down the road as businesses adapt this new technology. In the future, she can see a major company growing quickly with the ability to go public or merge with a major phone company.

-In Scenario 2-2, which phase is Harry at in the start-up process model?

A) implementation
B) triggering event
C) innovation
D) growth

Question 49

A triggering event is a specific event or occurrence that sparks the entrepreneur to proceed from thinking to doing.

Question 50

Scenario 2-2. Harry Homer and Jenny Juno are two people extremely interested in establishing a small business. Harry is interested in marketing his newly developed product, which increases the speed by which data are transferred through phone lines. He sees great potential for his new product and is willing to devote his life savings and begin this new venture. Jenny is also interested in this product. She too sees a great potential down the road as businesses adapt this new technology. In the future, she can see a major company growing quickly with the ability to go public or merge with a major phone company.

-In Scenario 2-2, Jenny could be categorized as what type of a business individual?

A) entrepreneur
B) business manager
C) small business owner
D) small business entrepreneur

Question 51

Scenario 2-2. Harry Homer and Jenny Juno are two people extremely interested in establishing a small business. Harry is interested in marketing his newly developed product, which increases the speed by which data are transferred through phone lines. He sees great potential for his new product and is willing to devote his life savings and begin this new venture. Jenny is also interested in this product. She too sees a great potential down the road as businesses adapt this new technology. In the future, she can see a major company growing quickly with the ability to go public or merge with a major phone company.

-In Scenario 2-2, what will be the most challenging aspect of beginning this new business?

A) long hours spent on the business
B) the commitment that the business requires
C) income uncertainty
D) choosing the right form of business ownership

Question 52

A small business manager and an entrepreneur perform the same functions.

Question 53

There is only one factor that could be called a triggering event.

Question 54

Personal characteristics vary as a business evolves from one stage to another.

Question 55

The primary reason most people go into business for themselves is to gain the respect of others.

Question 56

Personality characteristics are not useful in predicting who will be a successful entrepreneur.

Question 57

In the end, every business will eventually reach the harvest stage.

Question 58

Financial risks, material risks, and psychological risks are all risks faced by the entrepreneur.

Question 59

Scenario 2-2. Harry Homer and Jenny Juno are two people extremely interested in establishing a small business. Harry is interested in marketing his newly developed product, which increases the speed by which data are transferred through phone lines. He sees great potential for his new product and is willing to devote his life savings and begin this new venture. Jenny is also interested in this product. She too sees a great potential down the road as businesses adapt this new technology. In the future, she can see a major company growing quickly with the ability to go public or merge with a major phone company.

-In Scenario 2-2, at which stage in the start-up process model will Jenny begin her part in this new venture?

A) implementation
B) innovation
C) growth
D) triggering event

Question 60

Individuals who prefer steady pay and a normal nine-to-five work schedule also tend to gravitate toward self-employment.

Question 61

One's own efforts are the most important factor to a person with a strong locus of control.

Question 62

Compare and contrast a small business manager and an entrepreneur.

Question 63

Use the start-up process model to compare and contrast an entrepreneur and a small business manager.

Question 64

Describe the behaviors that are possessed by entrepreneurs.

Question 65

The conclusion after more than 30 years of research on personal characteristics is that successful entrepreneurs cannot be predicted.

Question 66

List and discuss the primary reasons that people go into business for themselves.

Question 67

Innovation is the catalyst for business growth.

Question 68

Describe two advantages and two disadvantages of self-employment.

Question 69

Entrepreneurs and small business owners typically have higher education levels than the general public.

Question 70

The typical entrepreneur tends to accept moderate risk only after careful examination.

Question 71

The three most important characteristics that every successful entrepreneur possesses are perseverance, needed technical skills, and a deep belief in himself/herself.

Question 72

New and innovative ideas are worth their weight in gold in the business world.

Question 73

Entrepreneurs tend to have a weaker internal locus of control than do people in general.

Question 74

The most basic level of product satisfaction is the expected product.

Question 75

Product pivoting is one example of new product development.

Question 76

Over 25 percent of all new business owners have an MBA or other professional degree.

Question 77

Income uncertainty is one of the most challenging aspects of starting a new business.

Question 78

Describe three characteristics of a successful entrepreneur.