Deck 2: Small Business Entrepreneurs: Characteristics and Competencies

Question 1

One of the major challenges identified for family businesses is role conflict.

Answer 1

True

Question 2

Opportunistic planners always plan around the most important aspect of the business first,act on it,and then consider if additional plans are needed.

Answer 2

False

Question 3

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

Answer 3

False

Question 4

Most successful entrepreneurs exhibit hard work,but completely lack in competencies.

Question 5

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

Question 6

Succession plans deal with the people who will take over,what roles they will fill,and what supports they will receive.

Question 7

A situation that occurs when businesses have founders or owners who are passionate about one or two of the key business functions,such as sales,operations,accounting,finance,or human resources is known as expert business professionalization.

Question 8

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

Question 9

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

Question 10

The best way to handle ownership problems is to come out right at the start and specify or negotiate who owns what.

Question 11

In family-owned businesses,the board of members can only be comprised of family members.

Question 12

Passion is displayed by being persistently focused on the business.

Question 13

For corporations,certification for businesses owned by women or minority is handled by organizations that are not affiliated with the government or big business.

Question 14

There is one specific pattern of entrepreneurial behavior or entrepreneurial type.

Question 15

One of the major issues identified for late career entrepreneurs is keeping personal finances out of the business.

Question 16

Skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business are called opportunity competencies.

Question 17

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

Question 18

Succession challenges rarely affect family businesses.

Question 19

Habit-based planners don't plan,and they don't even tend to react to changes in their environments.

Question 20

The slowest growing sector of all U.S.businesses is women-owned businesses.

Question 21

Entrepreneurs who develop plans focused on the most important aspect of the business first are known as _____.

A) critical-point planners
B) opportunistic planners
C) comprehensive planners
D) reactive planners

Question 22

Regulatory focus is a mix of _____ focus and _____ focus.

A) effectuation;comprehension
B) comprehension;prevention
C) effectuation;promotion
D) promotion;prevention

Question 23

Which of the following would have a very short-term approach to planning?

A) Individuals who look for opportunities to achieve their goal,even if the opportunity isn't the one related to their original goal.
B) Individuals who develop long-range plans for all aspects of the business and act based on the plans they've developed.
C) Individuals who plan around the most important aspect of the business first,act on it,and then consider if additional plans are needed.
D) Individuals who are comfortable with planning and act based on the plans they have developed.

Question 24

Which of the following is one of the most common behaviors found in successful entrepreneurs?

A) Preemption
B) Frigidness
C) Personalization
D) Passion

Question 25

The problem behavior of trying the same action repeatedly without learning is called _____.

A) perseveration
B) prevention focus
C) effectuation
D) critical observation

Question 26

Reactive planners:

A) do not react to cues from the environment.
B) take a long-term view and develop long-range plans for all aspects of the business.
C) focus on short-term plans.
D) have fixed goals dictating their efforts.

Question 27

_____ is the ability to stick with some activity even when it takes a long time,and when a successful or unsuccessful outcome is not immediately known.

A) Compatibility
B) Competence
C) Sustenance
D) Perseverance

Question 28

The visible behavior a person takes is known as:

A) promotion.
B) perception.
C) action.
D) cognition.

Question 29

Which among the following is a critical-point planner?

A) Amanda does not have a very long-term approach to planning and she plans only for those business aspects that are of paramount importance.
B) Andrew looks at all aspects of the business,from launch to the complete working of it.
C) Cathy looks for a good chance to achieve her goal and acts according to a routine.
D) Joshua acts on what he has been doing and does not believe in planning.

Question 30

Which of the following approaches yields better results in an established industry or a poor one?

A) External focus
B) Effectuation focus
C) Prevention focus
D) Promotion focus

Question 31

Cognition:

A) is a person's way of perceiving and thinking about his or her experience.
B) refers to successful entrepreneurial behavior that leads to the creation of a new firm.
C) pertains to the feeling of being absorbed by the tasks and concerns of the business.
D) does not help in making any managerial decisions.

Question 32

Entrepreneurs who start with a goal instead of a plan and look for a chance to achieve it are known as _____.

A) reactive planner
B) critical-point planner
C) comprehensive planner
D) opportunistic planner

Question 33

A(n)_____ focus refers to an entrepreneur's attention on maximizing gains and pursuing opportunities likely to lead to gains.

A) comprehension
B) promotion
C) effectuation
D) prevention

Question 34

Entrepreneurs who do not plan and prefer to let all actions be dictated by their routines are known as _____.

A) habit-based planners
B) critical-point planners
C) reactive planners
D) comprehensive planners

Question 35

A(n)_____ focus refers to an entrepreneur's attention to minimizing losses,with a bias toward inaction or protective action to avert loss.

A) external
B) promotion
C) effectuation
D) prevention

Question 36

_____ are completely passive,waiting for cues from the environment to determine what actions to take.

A) Opportunistic planners
B) Critical-point planners
C) Comprehensive planners
D) Reactive planners

Question 37

Which of the following approaches yields better results in richer,dynamic,uncertain environments or industries?

A) Promotion focus
B) External focus
C) Effectuation focus
D) Prevention focus

Question 38

Christopher is a hard-working entrepreneur who looked into all the details of his small gaming software business.He focused on all aspects of the business from the initial launch,promotion,and marketing aspects to the final set up.He finds planning convenient and works according to a plan.Christopher is a(n)_____.

A) opportunistic planner
B) habit-driven planner
C) reactive planner
D) comprehensive planner

Question 39

Entrepreneurs who develop long-range plans for all aspects of the business are known as _____.

A) critical-point planners
B) opportunistic planners
C) comprehensive planners
D) reactive planners

Question 40

Which of the following is best thought of as a type of learned optimism in successful entrepreneurs?

A) Apathy
B) Professionalization
C) Perseverance
D) Cognition

Question 41

Key business functions:

A) are skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business.
B) are activities that reflects a person's determination to start their business and make it a success.
C) are certain fundamental activities that all businesses must perform.
D) are business-related activities that are optional for the entrepreneur to perform.

Question 42

A situation that occurs when all the major functions of a firm are conducted according to the standard business practices of its industry is known as _____.

A) expert business professionalization
B) specialized business professionalization
C) minimized business professionalization
D) maximized business professionalization

Question 43

A situation that occurs when the entrepreneur does nearly everything in the simplest way possible is known as _____.

A) expert business professionalization
B) specialized business professionalization
C) minimalized business professionalization
D) maximized business professionalization

Question 44

Competencies are defined as:

A) forms of business-related expertise.
B) forms of personal development model.
C) different forms of self-assessment.
D) different forms of personality theories.

Question 45

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 known as_____.

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

Question 46

Martin runs a successful house painting business.He runs his business out of his garage,which he got converted into an office space.Martin,who had previously worked as a house painter in another company had good know-how of how to run a house-painting business.After a storm destroyed public properties in his neighboring town,he contracted with the mayor of that town to fulfill any painting jobs required during the town's reconstruction.In order to meet this demand and expand business,he hired more house painters. According to the BRIE model,which of the following is an example of Martin's basic business competency?

A) Martin hiring more house painters to meet demand
B) Martin contracting with the mayor to help paint during reconstruction
C) Martin getting his company registered
D) Martin having prior knowledge of the house-painting business

Question 47

A situation that occurs when businesses have founders or owners who are passionate about one or two of the key business functions,such as sales,operations,accounting,finance,or human resources is known as _____.

A) expert business professionalization
B) specialized business professionalization
C) minimized business professionalization
D) maximized business professionalization

Question 48

A business action that has been widely adopted within an industry or occupation is known as _____.

A) best business practice
B) specialized business professionalization
C) standard business practice
D) expert professionalization

Question 49

Activities common to all businesses such as sales,operations (also called production),accounting,finance,and human resources are known as _____.

A) key business functions
B) competencies
C) business accreditations
D) business-related expertise

Question 50

Which of the following characterizes a habit-based planner?

A) They take a long-term view,develop long-range plans for all aspects of the business,are comfortable with planning,and act based on the plans they've developed.
B) They plan around the most important aspect of the business first,act on it,and then consider if additional plans are needed.
C) They are completely passive and generally wait for cues from the environment to determine what actions to take.
D) They don't plan,and they don't tend to react to changes in their environments.

Question 51

Getting the business organized and registered is an example of _____ competency.

A) opportunity
B) resource
C) industry-specific
D) boundary

Question 52

Certain businesses demand higher safety related rules.For example,window cleaners that specialize in high-rise buildings have certain rules and safety protocols.These specific rules would comprise the _____.

A) specialized business professionalization
B) infant-industry argument
C) industry-specific knowledge
D) key business functions

Question 53

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

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

Question 54

Which of the following is true with regard to minimalized business professionalization?

A) The entrepreneur does nearly everything in the simplest way possible.
B) The entrepreneur is passionate about one or two of the key business functions.
C) The entrepreneur meets or exceeds the industry's standards.
D) The entrepreneur brings the highest levels of trust among customers.

Question 55

Which of the following refers the three levels of professionalization?

A) Low,medium,and high
B) Company,industry,and global
C) Personal,team,and organizational
D) Expert,specialized,and minimalized

Question 56

The extent to which a firm meets or exceeds the standard business practices for its industry is known as _____.

A) bootstrapping
B) professionalization
C) effectuation
D) Perceived Organizational Support (POS)

Question 57

Which of the following planners do best in terms of getting a start-up launched,keeping it going,and making a living from it?

A) Comprehensive planners
B) Habit-based planners
C) Opportunistic planners
D) Reactive planners

Question 58

Which of the following kinds of planners generally tend do very poorly in business,even if they do manage to get their firms started?

A) Comprehensive planners
B) Habit-based planners
C) Opportunistic planners
D) Critical-point planners

Question 59

Which of the following competencies requires the energy and focus needed to bring a business into existence?

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

Question 60

Expert business professionalization is a situation that occurs:

A) when only the most critical aspect of business is met.
B) when most aspects of the business meet or exceed the industry's standards.
C) when one or two aspects of the business are met.
D) when none of the business can achieve the industry standard.

Question 61

Which of the following is a major economic force,employing 58 percent of America's total workforce?

A) Public companies
B) Government enterprises
C) Family businesses
D) International assignments

Question 62

____ refers to the process of intergenerational transfer of business.

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

Question 63

Which of the following statements about entrepreneurial teams is true?

A) Most entrepreneurial teams are family related.
B) The majority of new businesses have an entrepreneurial team of a minimum five co-owners.
C) The trend is toward even more businesses being developed by a solo entrepreneur.
D) Only 10 percent of teams are spouses or life partners working together.

Question 64

Which of the following problems is closely related to role conflict?

A) Resource shortage
B) Lack of skills
C) Shortage of time
D) Perseverance

Question 65

Martin runs a successful house painting business.He runs his business out of his garage,which he got converted into an office space.Martin,who had previously worked as a house painter in another company had good know-how of how to run a house-painting business.After a storm destroyed public properties in his neighboring town,he contracted with the mayor of that town to fulfill any painting jobs required during the town's reconstruction.In order to meet this demand and expand business,he hired more house painters. According to the BRIE model,which of the following provides industry-specific knowledge to martin?

A) Martin hiring more house painters to meet demand
B) Martin contracting with the mayor to help paint during reconstruction
C) Martin getting his company registered
D) Martin having worked in a house-painting company before starting his own business

Question 66

Which of the following organizations tracks experts in family business?

A) Association for Family Business Foundations
B) Association for Small Business Entrepreneurs
C) Family Business Management Institute
D) Family Firm Institute

Question 67

Martin runs a successful house painting business.He runs his business out of his garage,which he got converted into an office space.Martin,who had previously worked as a house painter in another company had good know-how of how to run a house-painting business.After a storm destroyed public properties in his neighboring town,he contracted with the mayor of that town to fulfill any painting jobs required during the town's reconstruction.In order to meet this demand and expand business,he hired more house painters. According to the BRIE model,which of the following is an example of Martin's opportunity competency?

A) Martin hiring more house painters to meet demand
B) Martin contracting with the mayor to help paint during reconstruction
C) Martin setting up the business's office in his garage
D) Martin deciding to set up his own business after quitting his previous job

Question 68

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

A) Role conflict
B) Succession issues
C) Strategizing challenges
D) Leadership constraints

Question 69

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

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

Question 70

Qualification for _____ requires certification as a business owned and operated by a woman or a minority.

A) set-asides
B) codicils
C) product liability insurance
D) professional liability insurance

Question 71

Which of the following is the most effective approach for avoiding role conflict?

A) Keep family issues out of the family business
B) Keep separate rules for family members and employees
C) Have constant role reversals
D) Have decisions narrowed down for family members based on family necessities

Question 72

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

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

Question 73

Which of the following is true with regard to women in small businesses?

A) Women-owned businesses are the slowest growing sector of all U.S.businesses.
B) Women-owned firms accounted for 25 percent of small business revenue nationally.
C) Women prefer less-risky firms,which also tend to be firms with lower returns.
D) Women prefer more high-tech firms,as well as firms where technology is central to the business than men.

Question 74

Which of the following comprises a family business?

A) A firm in which two or more families own a stake in a company but with no authority for daily management
B) A firm in which no family members are involved in the management of the business
C) A firm in which two or more families are involved in the occasional management of the business
D) A firm in which one family owns a majority stake

Question 75

Which of the following challenges is typical to family businesses?

A) Motivation and nepotism
B) Role conflict and succession
C) Succession and finances
D) Leadership and finances

Question 76

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

A) It helps to maximize communication in the succession process of family businesses.
B) Its main function is complete the key business activities of a family business.
C) It includes family members with immediate interests in the business and a significant number of non-family members.
D) It is not a good forum for grappling with issues like role expectations,commitment,and personal responsibility.

Question 77

The organizing process to help make the most efficient use of the day is known as _____.

A) promotion focus
B) competence
C) certification
D) time management

Question 78

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

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

Question 79

Martin runs a successful house painting business.He runs his business out of his garage,which he got converted into an office space.Martin,who had previously worked as a house painter in another company had good know-how of how to run a house-painting business.After a storm destroyed public properties in his neighboring town,he contracted with the mayor of that town to fulfill any painting jobs required during the town's reconstruction.In order to meet this demand and expand business,he hired more house painters. According to the BRIE model,which of the following is an example of Martin's resource competency?

A) Martin hiring more house painters to meet demand
B) Martin contracting with the mayor to help paint during reconstruction
C) Martin setting up the business's office in his garage
D) Martin having prior knowledge of the house-painting business

Question 80

Which of the following is true as an advantage of businesses run by a group of tight-knit family members?

A) Succession issues don't crop up in family-owned businesses.
B) Role conflicts never happen in family owned businesses.
C) Board of members is not used in family-owned businesses.
D) Communication-based integration is most effective in family-owned business.