Deck 3: Small Business Entrepreneurs: Characteristics and Competencies

Question 1

Specialized firms tend to generate the highest level of trust among customers.

Answer 1

False

Question 2

One of the fastest growing sectors of all U.S.businesses is women-owned businesses.

Answer 2

True

Question 3

About a third of the retirees who return to work decide to become self-employed.

Answer 3

True

Question 4

Growth entrepreneurs are owners with an exit plan.

Question 5

The competencies that make exchange work are called resource competencies.

Question 6

All entrepreneurial personality types include hard work.

Question 7

Spiral or helical entrepreneurs are driven by a need to balance family and business,being successful at each.

Question 8

The classic entrepreneur was a loner,often socially isolated,a hard worker,a fast learner,and a risk taker seeking wealth.

Question 9

Idea people are hard working,driven by great wealth,socially isolated,and great risk takers.

Question 10

The competency suggested by exchange relates to the organizational and business processes of a firm called basic business competency.

Question 11

Succession and role conflict are the two challenges typical to family businesses.

Question 12

Habitual entrepreneurs are owners for a lifetime whose career goal is personal satisfaction first,income second.

Question 13

In the PSED,92 percent of all start-ups consisted of teams and only 8 percent were solo entrepreneurs.

Question 14

For late career entrepreneurs,one problem is keeping personal finances out of the business.

Question 15

At a minimalized level of professionalization,the entrepreneur does everything in the simplest way possible.

Question 16

According to research,CEOs of family firms had an average tenure of about half the years as compared to CEOs in other businesses.

Question 17

Salesperson entrepreneurs are more concerned with personal wealth than their acceptance of social standing.

Question 18

Resources lead to specific determination competencies which deal with skills and knowledge in a particular industry.

Question 19

One way to maximize communication in the succession process is to create a family council.

Question 20

Access problems for women and minority-owned small businesses crop up most often as discrimination in marketing.

Question 21

Getting organized and registered-which creates a boundary-is an example of a(n)

A)financial activity.
B)operations activity.
C)human resources activity.
D)management activity.

Question 22

The intention component of the BRIE model reflects _____ competencies.

A)basic business
B)opportunity
C)resource
D)determination

Question 23

A loner,often socially isolated,a hard worker,a fast learner,and a risk taker seeking wealth represents the profile of a(n)

A)idea person.
B)classic entrepreneur.
C)managerial entrepreneur.
D)small business owner.

Question 24

Which of the following relates to the skills necessary to identify and exploit elements of the business environment that can lead to profitable and sustainable business?

A)Determination competencies
B)Basic business competencies
C)Resource competencies
D)Opportunity competencies

Question 25

Idea people are not particularly driven by _____,but they are driven by _____.

A)greatness;great wealth
B)hard work;risk taking
C)great wealth;having their idea achieve greatness
D)fame;socialization

Question 26

The ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business such as time,information,location,financing,raw materials,and expertise is called

A)basic business competencies.
B)opportunity competencies.
C)resource competencies.
D)determination competencies.

Question 27

The energy and focus needed to bring a business into existence relates to which of the following competencies?

A)Determination
B)Resource
C)Opportunity
D)Basic business

Question 28

_____ refers to the extent to which a firm meets or exceeds the standard business practices of its industry.

A)Standard operating procedure
B)Organizational commitment
C)Professionalization
D)Intention

Question 29

The forms of business-related expertise are called

A)competencies.
B)core processes.
C)personalities.
D)ethics.

Question 30

Identify the trait which all entrepreneurial personality types have in common.

A)Loneliness
B)Social isolation
C)Risk taking
D)Hard work

Question 31

Which of the following personality types is often very risk-averse,preferring to build wealth through careful planning and action?

A)Idea person
B)Small business owner
C)Managerial entrepreneur
D)Classic entrepreneur

Question 32

Like classic entrepreneurs,small business owners are all of the following EXCEPT

A)risk takers.
B)socially isolated.
C)often alone.
D)hard workers.

Question 33

The competency suggested by _____ relates to the organizational and business processes of a firm.

A)intention
B)resource
C)exchange
D)boundary

Question 34

Which of the following deals with the actual process of exploring an opportunity for profit?

A)Resource
B)Exchange
C)Intention
D)Boundary

Question 35

Unlike _____,_____ are actually risk-averse.

A)idea persons;classic entrepreneurs
B)managerial entrepreneurs;classic entrepreneurs
C)sales entrepreneurs;idea persons
D)classic entrepreneurs;small business owners

Question 36

There are certain fundamental activities that all businesses must perform,which are called

A)engineering business functions.
B)basic business functions.
C)business accreditations.
D)key business functions.

Question 37

Key business functions and industry-specific knowledge are parts of _____ competency.

A)resource
B)basic business
C)determination
D)opportunity

Question 38

Which of the following personality types is more concerned with their social standing and acceptance than their personal wealth?

A)Salesperson entrepreneur
B)Managerial entrepreneur
C)Classic entrepreneur
D)Idea person

Question 39

For those businesses that do get started,the amount of _____ is what distinguishes the more successful from the less successful firms.

A)effort
B)opportunities
C)subordination
D)expertise

Question 40

All of the following observations are true of the salesperson type of entrepreneur EXCEPT

A)they work hard.
B)they are very socially driven.
C)they use their networks to minimize risk.
D)they are most concerned with their wealth.

Question 41

_____ businesses have founders or owners who are passionate about one or two of the key business functions,such as sales or operations.

A)Expert
B)Specialized
C)Minimalized
D)Global

Question 42

Harvest entrepreneurs

A)are often wealthy,but largely unknown.
B)alternate periods of growth and stability which are determined by personal needs.
C)may scale down their ventures as they get older,but continue to work in their business.
D)are people who generally have another job that is their primary one.

Question 43

Which of the following is NOT a typical career path for entrepreneurs?

A)Habitual entrepreneurship
B)Harvest entrepreneurship
C)Mature entrepreneurship
D)Spiral entrepreneurship

Question 44

According to the text,there are three levels of professionalization.These are

A)low,medium,and high.
B)company,industry,and global.
C)personal,team,and organizational.
D)expert,specialized,and minimalized.

Question 45

The middle level of professionalization is called _____,where as opposed to a "best" restaurant,there is probably a restaurant you know of with great food but so-so service.

A)specialized
B)minimalized
C)expertise
D)standard

Question 46

Which of the following does NOT hold true of the minimalized level of professionalization?

A)The entrepreneur does nearly everything in the simplest way possible.
B)Usually,there is no systematic accounting.
C)Record keeping will vary between nonexistent and haphazard.
D)Inspires the highest levels of trust among customers.

Question 47

Expert businesses

A)are those which have owners who are passionate about one key business function.
B)are those where the entrepreneur does nearly everything in the simplest way possible.
C)usually lack good business procedures.
D)are those in which you notice everything seems to be done in the best way possible.

Question 48

As they age,these entrepreneurs' unspoken exit strategy is to let the time between deals drag out.

A)Harvest entrepreneurs
B)Helical entrepreneurs
C)Occasional entrepreneurs
D)Growth entrepreneurs

Question 49

All of the following observations are true of growth entrepreneurs EXCEPT

A)their goal is to achieve major success.
B)they are interested in giving their firms strong balance sheets.
C)they are lifetime owners.
D)when they retire,they tend to want to micromanage their successors.

Question 50

_____ entrepreneurs alternate periods of growth and stability which are determined by personal or family needs.

A)Occasional
B)Harvest
C)Spiral
D)Growth

Question 51

Identify the strategy where the idea is to slow down when children are young and push for growth when the children are older.

A)Spiral
B)Harvest
C)Growth
D)Habitual

Question 52

Which of the following relates to expert businesses?

A)The entrepreneur does nearly everything in the simplest way possible.
B)All the major functions of the firm follow standard business practices of the industry.
C)The founders are passionate about one or two of the key business functions.
D)They are satisfied if other activities are no worse than other businesses in their market.

Question 53

What is the goal of growth entrepreneurs?

A)Personal satisfaction
B)Major success
C)Income
D)Work first in order to play later

Question 54

Which of the following are owners with an exit plan?

A)Growth entrepreneurs
B)Harvest entrepreneurs
C)Occasional entrepreneurs
D)Habitual entrepreneurs

Question 55

Which of the following holds true of habitual entrepreneurs?

A)Their goal is to work first in order to play later
B)Usually they have no succession plan
C)When they do retire,they tend to want to micromanage their successors
D)They work on a seasonal basis

Question 56

Being asked if you want to supersize your order at a fast-food restaurant is an example of

A)a key business function.
B)a resource competency.
C)a standard business practice.
D)industry-specific knowledge.

Question 57

Following certain "best practices" are typical of these types of businesses.

A)Specialized businesses
B)Expert businesses
C)Minimalized businesses
D)Factor businesses

Question 58

The career goal of which entrepreneur is personal satisfaction first,income second?

A)Growth entrepreneurs
B)Harvest entrepreneurs
C)Occasional entrepreneurs
D)Habitual entrepreneurs

Question 59

At which of these levels of professionalization does the entrepreneur do nearly everything in the simplest way possible?

A)Expert
B)Specialized
C)Minimalized
D)Global

Question 60

_____ entrepreneurs are owners for a lifetime,sometimes in one business,and sometimes across several firms.

A)Habitual
B)Harvest
C)Growth
D)Spiral

Question 61

These entrepreneurs are the classic part-time entrepreneurs,who might work on a seasonal basis.

A)Habitual
B)Spiral
C)Growth
D)Occasional

Question 62

What best describes the problem that arises when people have multiple responsibilities and each makes different demands on them?

A)Role conflict
B)Succession
C)Leadership
D)Role ambiguity

Question 63

Only _____ of family-owned businesses survive beyond the first generation.

A)three-quarters
B)one-half
C)one-fourth
D)one-third

Question 64

Two challenges typical to family businesses are

A)motivation and nepotism.
B)leadership and finances.
C)succession and access.
D)role conflict and succession.

Question 65

Identify the simplest form of discrimination.

A)Access
B)Role conflict
C)Set-asides
D)Collusion

Question 66

What is the key difference between a family council and a board of directors?

A)The board is focused on business-family relationships.
B)The board includes significant family membership.
C)The function of the family council is to keep the family involved.
D)Family councils should get professional advice at the start.

Question 67

_____ entrepreneurs are people who generally have another job that is their primary one.

A)Harvest
B)Occasional
C)Helical
D)Spiral

Question 68

All of the following are characteristics of a family-owned business EXCEPT

A)they are the only group that faces the challenge of access.
B)they are a major source of funds and personnel for new small businesses.
C)they are a self-perpetuating source for future small businesses.
D)a strong family bond can become a strong business culture.

Question 69

A(n)_____ entrepreneur's typical end-game strategy involves scaling down the business.

A)occasional
B)helical
C)harvest
D)growth

Question 70

Which of the following entrepreneurs employ about 58 percent of America's total workforce?

A)Women entrepreneurs
B)Second career entrepreneurs
C)Family business owners
D)Minority entrepreneurs

Question 71

Doing work on a seasonal basis such as doing taxes or making Christmas wreaths is an example of

A)occasional entrepreneurship.
B)spiral entrepreneurship.
C)growth entrepreneurship.
D)habitual entrepreneurship.

Question 72

Family owned and managed small businesses represent what percent of American businesses?

A)58
B)25
C)39
D)72

Question 73

For family business,the most effective approach for avoiding role conflict is

A)time management.
B)to avoid schedule overload.
C)to try and make decisions based on family necessities.
D)to keep family issues out of the business.

Question 74

Which of the following statements about entrepreneurial teams is false?

A)Most teams are nonfamily related
B)The majority of new businesses have a team of two or more co-owners
C)The trend is toward even more businesses being developed by teams of entrepreneurs
D)When family members start a business,they start with already knowing and trusting each other

Question 75

Which of the following does not pertain to role conflict?

A)It describes the kind of problem that arises when people have multiple responsibilities
B)It is at its worst when people fail to recognize it
C)It causes a shortage of time
D)It is the process of intergenerational transfer of a business

Question 76

Access problems for women- and minority-owned small businesses crop up most often as

A)differences in labeling.
B)discrimination in financing.
C)problems involved in business contacts.
D)the presence and absence of certain skills.

Question 77

Which of the following statements about a family council is false?

A)One way to maximize communication in the succession process is to create a family council.
B)The main function of the family council is to be focused on running the business.
C)A family council includes family members with immediate interests in the business.
D)The meetings can be a good forum for grappling with issues like role expectations.

Question 78

When woman or minority-owned businesses are simply excluded from the opportunities offered to firms owned by white males,it is called the challenge of

A)consistency.
B)access.
C)flexibility.
D)mutuality.

Question 79

_____ refers to the process of intergenerational transfer of business.

A)Role conflict
B)Succession
C)Leadership
D)Access

Question 80

The two fastest growing minority groups represent the largest segments of minority business owners.These are

A)Hispanics and Asians.
B)Hispanics and Africans.
C)Asians and Africans.
D)Asians and Pacific Islanders.