a) Industiral to Capitalism
b) Capitalism to Industrial
c) Industrial to knowledge based
d) None of the above
a) The acquisition and merging of mega corporations
b) The idea that “small is beautiful” in large companies, resulting in less hierarchy and layers of management.
c) The flood of venture capital being made available to small business.
d) The downturn in international markets forcing a focus on the domestic market.
a) Has become extremely popular.
b) Universities are not able to meet the demand.
c) More courses are being offered in entrepreneurship.
d) All of the above.
a) successful entrepreneurs start with an idea, resources, and a small management team.
b) there is one key set of traits that mark a successful entrepreneur.
c) entrepreneurs desire responsibility and are willing to take moderate risks.
d) the most successful entrepreneurs are willing to take extreme risks and bet the farm in order to succeed.
a) a desire for money.
b) an inability to organize but strong conceptual skills.
c) a desire to work alone because of weak management skills and a need for control.
d) a high energy level.
a) an opportunity to make a difference.
b) having to deal with less government regulation than as an executive of a large company.
c) a much lower risk of career failure due to layoff or acquisition than working for a large company.
d) the opportunity to get rich much quicker than if they work for a large company
a) they work harder on thei r own than if they worked for someone else.
b) they earn less than if they worked for someone else.
c) they are less satisfied than if they worked for someone else.
d) venture capital is relatively easy to raise.
a) more leisure time because there is less of a need to punch a time clock.
b) contributing to society and being recognized for your efforts.
c) to be able to choose who you work with or don’t work with.
d) more job security than worki ng for a large corporation
a) to reap unlimited profits
b) to contribute to society
c) to make a difference
d) to reach her full potential
a) The long hours and hard work involved
b) The risk of losing their entire investment
c) The lower quality of life they’ll experience
d) The uncertainty of thei r income
a) a relatively low guaranteed income.
b) a significantly freer personal schedule but less personal income and assets with which to enjoy the more relaxed schedule.
c) a high likelihood of a lower quality of life while starting and establishing the small business.
d) relatively limited potential for further personal development.
a) Under 25
a) A greater focus on professional advancement combined with the “flattening” of large corporati ons’ management hierarchies
b) The rapid growth of the need for low-technology products
c) A favorable attitude toward entrepreneurs in American society
d) Diminished wage increases in corporations and the desire for a better standard of ling
a) the return to a manufacturi ng-based economy.
b) technological advancements.
c) diminished opportunities in overseas markets for larger corporations.
d) the vilifying of large corporati ons in society
b) access to capital
d) social pressure
a) significant educational and financial resources.b) few skills, little education, and no financial resources.
c) few resources but lots of dedication and desi re.
d) little education but significant financial backing from their families in their home countries.
a) it is a much lower risk for the entrepreneur.
b) it doesn’t require hang a business plan.
c) the entrepreneur can change products and markets more easily.
d) the entrepreneur doesn’t need to know the industry as well.
a) Is especially difficult for the small business because of its limited resources.
b) Divides mass markets into smaller, less homogeneous u nits.
c) Provides the small business owner with the tools for managing the uncontrollable elements in the external business environment.
d ) helps a small business develop the game plan that guides it in creating its mission, vision, goals, and objectives.
a ) a matching of its strengths and weaknesses to the opportunities and threats in the environment.
b) An enticement to outside investors and lenders to put money into the business.
c) A complete explanation of the company’s product or service.
d) A description of the company’s competitive situation.
a ) strategic plan.
b) Competitive adva ntage.
d) Competitive strategy.
a ) market-focused.
b) The same as it is for a large company.
c) Generally done by top management with little or no participation by employees.
d ) product-focused and similar to that for large companies.
a) The planning horizon should cover at least five years into the future.
b) The process should begin with setting objectives and conclude with competitive analysis.
c) The process should be informal and not overly structured-“a shirtsleeve approach.”
d ) It should be conducted by top management and provided to lower management.
a) The mission statement
b) The company vision
c) The strategic plan
d) ) The operational pla n
a ) It is created independently of their market or their customers.
b) It includes their understanding of the competition and their key market segments.
c) They are able to communicate it and their enthusiasm for it to all those around them .
d) They create it in cooperation with their em ployees.
a) The company vision comes from the company mission.
b) The mission statement is the written expression of the company vision.
c) The company mission statement is the verbal expression of the written vision.
d) There is no relationship between the two.
a) What are the needs and wants of the target customers?
b) How will we finance our growth and expansion?
c) Who are our competitors?
d) How much money will we make?
a) Select the target market.
b) Conduct market research.
c) Choose a competitive strategy.
d) Define the firm’s core competencies.
c) Opportuni ties
identified and is trying to capitalize on a /an in the market environment.
a) distinctive competencies
b) key success factors
c) opportunities and threats
d ) competitive edge
a) Franchiser, franchisee
b) Franchisee, franchiser
c) Franchise, business owner
d) Business owner, parent company
a) auto dealers.
b) service-oriented franchises.
c) retail outlets.
d) fast food restaurants.
a) Trade name
d) Product distribution
a) trade name
d) product distribution
a) Product distribution
b) Trade name
a) product distribution
b) trade name
b) trade name
c) product distribution
a) the economic growth of the United States and other developed nations, economies.
b) more college students choosing to go to work for themselves rather than for corporations
c) the mutual benefits it provides to the franchi ser and franchisee.
d) all of these factors.
a) complete customization of the menu to fit local tastes.
b) ability to obtain prime locations in high-traffic areas.
c) using U.S. managers and employees whenever possible.
d) standardizing processes and closely managing workers.
a) centralized and large-volume buying power
b) social gatheri ngs
a) management training and experience.
b) national advertising.
c) financial assistance.
d) territorial protection.
a) Dunkin Donuts
c) Burger King
a) their locations and popularity with the local customer.
b) the brand name recognition and appeal.
c) the rate of growth and the number of national outlets.
d) the quality of the goods and services provided
a) are organized by the franchi ser but controlled locally by the franchisee.
b) are an expense borne by the franchiser.
c) require franchi sees to spend a minimum amount on local advertising.
d) allow voluntary participation.
a) provides direct financing.
b) assists in finding financing and occasionally provides direct assistance in a specific area.
c) waives royalty fees for franchisees not making an adequate profit.
d) generally does nothing, as finding financing is a requirement for qualifying for a franchise.
a) in the purchase of the franchiser’s experience, expertise, and products.
b) the fact it is much less expensive than doing your own business start-up.
c) the extensive assistance offered in finding start-up capital.
d) the absolute territory protection offered by all franchisers
a ) the simplicity of the idea.
c) territorial protection .
d ) financing.
a ) varies according to industry.
b) is basically every franchisee for him / herself.
c) is absolute and u niform across ind ustries.
d ) is no longer an issue for most fra nchisees.
a) ) higher tha n the rate for all new businesses.
b) no different from the rate for all new businesses.
c) lower than the rate for all new businesses.
d) ) indeterminable beca use of the Right to Privacy Act
a ) it is a long process and the buyer should be patient.
b) existing businesses often do not continue to be successful after a change in ownership.
c) it is often more difficult to find capital for an existing business than it is for a start-u p.
d ) he/she will likely have to make significant changes in the work force.
a ) you always get t he best location.
b) the opportunity to participate in a national advertising campaign.
c) equipment is installed and production capacity is known.
d ) easy implementation of innovations and changes from past policies
a ) overpriced.
b) difficult to finance.
c) with accounts receivable worth more than face value.
d ) bargain priced.
a) ) it is generally not important to independently evaluate the inventory.
b) you are always buying goodwill with the tangible assets of the business.
c) it is as easy to make change in an existing business as it is in a start-up.
d ) the real reason for selling is seldom stated honestly.
a ) is always current and salable.
b) usually a ppreciate overtime, making the business a bargain.
c) needs to be checked for age and salability.
d) ) is usually stated honestly and does not need independent auditing.
a) explore financing options.
b) prepare a list of potential candidates.
c) analyze his / her skills, a bilities, and interests in an honest self -audit.
d ) contact existing business owners in the area and ask if their companies are for sale.
a) ) explore financing options.
b) prepare a list of potential candidates and investigate them.
c) work on a smootht ransition.
d) ) evaluate the physical condition of the business.
a ) what kind of business you want to have and want to avoid.
b) how much money you have to invest.
c) what kind of people you like to work with.
d) ) how good are your sales and negotiating skills.
a ) business brokers
b) commercial bankers.
c) trade associations.
d) the hidden market
a) a letter of intent.
d) due diligence.
a) terms are more important than the price paid.
b) to negotiate the lowest possible price.
c) often the difference in available funds can be made up by collecting accounts payable.
d) the owner of the business always asks 14-22% more than he/she is willing to take.
a) the seller.
b) the Small Business Administration.
c) a venture banker.
d) your local bank.
a) Often, the business seller is a poor source of financing.
b) The buyer should be able to make the payments on the loans out of the company’s cash flow.
c) The buyer should begin arranging financing late in the purchasing process, to avoid the processing expenses if the deal falls through.
d) Traditional lenders tend to be more eager to lend on an existing business than they are with a start-up.
a) Focus on the customer, offer new incentives, improve customer service.
b) Focus on the employees, listen to them, keep them informed.
c) Concentrate on operations, updating equipment and changing processes.
d) Visit your competitors and introduce yourself and get to know them.
information the seller shares with him/her.
a) no compete covenant
b) nondisclosure statement
c) letter of intent
d) purchase agreement
a) can financing be arranged?
b) what business broker should I use?
c) what industries will be “hot” in the future and is this business in one of them?
d) what legal aspects should be considered
a) need for money and low return on investment
b) boredom and burnout.
c) low return on investment and burnout.
d) poor location and low return on investment
a ) mission.
b) assessment of its own strengths and weaknesses.
c) external opportunities and threats.
d) goals and objectives
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