When conducting a regional evaluation, one of the first places an entrepreneur should
turn for information is the U.S. Census Bureau.
Using focus groups is an example of primary research.
Because of their size and limited resources, small businesses rarely create innovations
that are important to the U.S. economy.
Conducting a SWOT analysis for her/his own business and for her/his key competitors
allows an entrepreneur to gain a competitive edge by matching her/his company’s
strengths against her/his competitors’ weaknesses.
A countertrade is a transaction in which a company selling goods and services in a
foreign country agrees to help promote investment and trade in that country.
Both leadership and management are essential to a small company’s success, but
leadership comes first.
Rather than try to compete head-to-head with the dominant players on the Web who
have almost unlimited resources and recognition, entrepreneurs should consider
focusing on serving a market niche.
The desired image for the business, the target market the owner is trying to reach, and
the prices charged are all closely related to one another.
While the World Trade Organization had 155 member countries which represent over
97 percent of all world trade, the market formed by NAFTA has more than 465 million
people and an annual output of $18.1 trillion in goods and services.
The ideal business plan should be at least 100 pages long to prove to potential lenders
and investors that the entrepreneur has studied the business and the market opportunity
sufficiently.
Within five years, ________ percent of new businesses will fail.
A) 21
B) 45
C) 51
D) 65
Successful organizational culture supports exceptional performance and is compatible
with the firm’s stated values and beliefs. Which of the following best illustrates this
concept?
A) A “do what is needed regardless” attitude, diversity, respect for work and life
balance, a sense of purpose and a sense of fun, and participative management in a
learning environment.
B) Honesty and integrity, diversity, respect for work and life balance, a sense of purpose
and a sense of fun, and dictatorial management in a learning environment.
C) Honesty and integrity, diversity, respect for work and life balance, an appreciation
for career limitations, and participative management in a learning environment.
D) Honesty and integrity, diversity, respect for work and life balance, a sense of
purpose and a sense of fun, and participative management in a learning environment.
Typically, the entire process of going public takes ________, but it can take much
longer if the issuing company is not properly prepared for the process.
A) 30 days
B) 6 months
C) 120 to 180 days
D) one year
The financial feasibility analysis takes these aspects into consideration ________.
A) capital requirements, human resources, and return on investment
B) capital requirements, estimated earnings, and return on investment
C) capital requirements, estimated earnings, and return on sales
D) capital requirements, estimated earnings, and return on owner’s equity
________ may be the result of failing to realize that an ethical dilemma exists, or it may
arise from a variety of mental defense mechanisms.
A) Dishonesty
B) Criminal behavior
C) Irresponsibility
D) Moral blindness
The Tanning Parlor is in the middle of the busy season. Owner Sunny Bright has hired
extra help and encountered some unexpected repairs that have left her short of operating
capital. What type of financing would Sunny most likely use in this situation?
A) A line of credit
B) Floor planning
C) A discounted installment contract
D) Trade credit
Asking the question, “Is this idea right for me?” is part of the process of assessing
________ feasibility.
A) business
B) financial
C) entrepreneur
D) All of the above
Type of job design that involves building motivators into a job by increasing the
planning, decision-making, organizing, and controlling functions workers perform is
________.
A) job enrichment or vertical job loading
B) job enlargement or vertical job loading
C) job enrichment or horizontal job loading
D) job simplification or lateral job loading
Venture capitalists look for ________ as the most important ingredient in the success of
any business.
A) innovation
B) a growth industry
C) a competitive edge
D) competent management
The biggest barrier facing companies that have never exported is ________.
A) finding the financing to launch an export program
B) not knowing where or how to start
C) locating a trade intermediary to represent them in foreign markets
D) winning government approval to begin selling in foreign markets
In ________, a superior conditions the granting of a benefit such as a promotion or
raise on the receipt of sexual favors from a subordinate.
A) pro tem
B) pro bono
C) quid pro quo
D) carpe diem
An MP3 player is sold at a price close to the break-even point, but the accessories for
the product are priced at a premium, offering impressive contribution margins. This is
an example of ________.
A) byproduct pricing
B) bundling
C) captive-product pricing
D) multiple-unit pricing
For Under Armour, its top 10 suppliers manufacture less than half of its products. To
Under Armour, supplier power is likely to be ________
A) high
B) moderate
C) significant
D) low
The three principles (three Rs) of rapid prototyping are ________.
A) develop a rough model, rapidly, and for the right price
B) develop a complete model, rapidly, and for the right problem
C) develop a rough model, rapidly, and for the right problem
D) develop a right model, roughly, and for the right price
________ are company-provided benefits designed to help reduce workplace problems
such as alcoholism, drug addiction, gambling habits, and other conflicts and to deal
with them when they arise.
A) Employee-assistance programs
B) Compensation
C) Healthcare benefits
D) All of the above
A(n) ________ is the process of examining a need in the market, developing a solution
for that need, and determining the entrepreneur’s ability to successfully turn the idea
into a business.
A) business plan
B) strategic analysis
C) idea assessment
D) feasibility analysis
An entrepreneur is one who ________.
A) is willing to attempt to implement a business concept and then give up if it does not
meet immediate expectations
B) understands the process of developing an idea and does not need to understand what
it means to bring that idea to a viable business concept
C) knows that the concept they are about to develop will result in a profitable business
D) creates a new business concept for the purpose of achieving profit and growth by
assembling the necessary resources to capitalize on identified opportunities
There are at least eight different pricing strategies for established goods and services.
Explain four of those strategies and under what conditions a business owner should use
them.
Mini-Case 16-4: Plumbers Don’t Want Recognition
“If I ever went out to those guys and asked them if they wanted a little more
recognition, they would laugh me out of the shop. People work for money.” Norm
Schultz had been a plumber himself for 18 years before he saved enough money to open
a small plumbing contractor business. The men who worked for Norm knew what was
expected of them – a fair day’s work for a fair day’s pay. “You don’t need to tell a person
that he or she is doing a good job; the person is either doing the work or not working for
me!”
Norm’s son-in-law was taking a management course at a local college. When Norm
asked him what he was learning in class, he told him the management of people. Norm
was very emphatic about managing the plumbers who worked for him. “Tell an
employee what you expect from the beginning. Watch to see if they perform the job
properly. Treat your people fairly and never cheat them.” Norm went on to tell his
son-in-law that this was the way good managers did things. “Recognition won’t put
bread on the table.”
What do you think about Norm Schultz’s attitudes toward employees?
What are the basic steps in preparing a cash budget? Which forecast is the “heart” of the
cash budget?
What does it mean to “focus on value” in relationship to establishing a price? In your
response, discuss how customers recognize and evaluate value.
Why is cash a unique asset? What are the advantages of efficient cash management?