Intro to Business Chapter 6 – Flashcards
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Successful entrepreneurial teams: A. quickly organize themselves like large corporations. B. assign only one person to new product innovation. C. bring a variety of talent to the business venture. D. outsource most of the details of innovation.
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C. bring a variety of talent to the business venture.
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A business's size is measured: A. in relation to the number of competitors in its industry. B. in relation to other firms in its industry. C. in relation to the number of dominant competitors in its sector. D. as small, if it participates in the services sector.
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B. in relation to other firms in its industry
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For prospective entrepreneurs, enrolling in an introduction to business or small business management course offered through their community college: A. is likely to be wasted time since college courses tend to be too theoretical. B. can be helpful by offering them an opportunity to meet experienced small business owners. C. serves as supplementary information, only after starting their business venture. D. seldom provides you with information to help make small business decisions.
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B. can be helpful by offering them an opportunity to meet experienced small business owners.
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________ are private individuals who invest their own money in potentially hot new companies before these firms become larger, publicly traded companies. A. Leveraged buyout specialists B. Angel investors C. Venture investors D. Corporate raider investors
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B. Angel investors
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Enterprise zones are specific geographic areas that: A. the government has set aside for major corporations that promise to spend at least $10 million to create new jobs. B. attract business investment by offering lower taxes and government support for development. C. the government has recognized as having the fastest growth rates in the country. D. are characterized by government ownership of small businesses.
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B. attract business investment by offering lower taxes and government support for development.
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Successful small business owners are: A. not good sources for information on starting your own B. business because they generally do not understand failure. C. valuable sources for information since you can learn from their experiences. D. good but risky since their keen sense of sniffing-out something with potential will tempt them to steal your ideas.
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C. valuable sources for information since you can learn from their experiences.
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A Small Business Investment Company (SBIC) is a(n): A. agency of the federal government that loans money to high tech firms. B. private investment company that is licensed by the SBA to make loans to small businesses. C. private firm that offers loans to small businesses in return for a share of ownership in the firm. D. agency set up by state governments to provide managerial advice and support to small businesses.
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B. private investment company that is licensed by the SBA to make loans to small businesses.
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A creative person working within a corporation to launch new products and generate new profits is known as a(n): A. arbitrator. B. micropreneur. C. macropreneur. D. intrapreneur.
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D. intrapreneur
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One reason we have seen continued growth in home-based businesses is: A. the location offers a more secure operational environment. B. affordable computer and information technology makes it easier to compete. C. people need something to do while they wait to return to work for a large corporation. D. it is less risky to start a home-based business than other types of entrepreneurial ventures.
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B. affordable computer and information technology makes it easier to compete.
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A new business that sets up a(n) _____________ from the start is saving itself time and grief later. A. angel investment network B. good accounting system C. detailed supplier network D. vertical marketing system
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B. good accounting system
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When seeking financial backing from a venture capitalist, a small business owner should realize that the venture capitalist will: A. charge an interest rate that is much higher than any other lender. B. not be interested in the management of the business. C. expect an ownership stake in the company in exchange for financial backing. D. demand that the money be repaid within 90 days or less.
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C. expect an ownership stake in the company in exchange for financial backing.
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Similar to how large businesses proceed, small businesses make marketing decisions _____________. A. after the product or service is developed B. before the business is funded C. at the same time that they hire employees, research for an accountant, and prepare the business plan D. before a product is developed or store is opened
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D. before a product is developed or store is opened
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Entrepreneurship is: A. managing businesses for others. B. a controlling interest in the ownership of a corporation. C. managing businesses that operate in multiple countries. D. accepting the risk of starting and running a business.
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D. accepting the risk of starting and running a business.
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When starting a small business, it's important to remember: A. an affinity for taking large amounts of risk is the critical factor in achieving small business success. B. doing things differently from previous entrepreneurs is the real key to success. C. learning from others and gaining relevant business experience improves the odds for success. D. to avoid burnout, limit the number of hours you work each week as you adapt to the rigors of self-employment.
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C. learning from others and gaining relevant business experience improves the odds for success.
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Enterprise zones are: A. government owned properties that are available for entrepreneurial ventures at a reduced cost B. similar to incubator facilities but strictly run by city and state governments C. blighted areas that contained toxic materials making them unsuitable for business operations D. specific locations across the U.S. where entrepreneurs can set-up shop and receive tax breaks for operating in these areas
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D. specific locations across the U.S. where entrepreneurs can set-up shop and receive tax breaks for operating in these areas
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When comparing small businesses to their larger competitors, it is clear that: A. bigger is always better. B. small firms can always outperform big firms on a level playing field. C. small firms often can offer more personalized customer services than big firms. D. small firms are slower to respond to opportunities than are large firms.
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C. small firms often can offer more personalized customer services than big firms.
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An entrepreneurial team consists of: A. managers with similar skills, abilities, and interests. B. experienced professionals from different areas of business. C. a group of wealthy investors who share a vision for a product. D. representatives from management, labor, and the government who work together to solve a company's problems in a creative way.
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B. experienced professionals from different areas of business.
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The size of the world market is: A. 500 million B. 6.9 billion C. 5 million D. 10 trillion
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B. 6.9 billion
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Affiliate marketing is a web-based business strategy that: A. relies on customers that enter the sites of large companies such as GAP™ and Nike™. B. asks you to offer the names and emails of ten of your friends who may be interested in the products or services the web-site is selling. C. is currently illegal, but difficult to stop. D. Rewards individuals who are willing to link a company's website to their blog or social network page.
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D. Rewards individuals who are willing to link a company's website to their blog or social network page.
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A market consists of potential buyers of a good or service. However, for a market to exist: A. the business requires wholesalers and retailers. B. one firm must dominate in sales and product development. C. people must have unsatisfied wants and needs as well as a willingness and ability to buy. D. the product must be laboratory tested and approved by the Food and Drug Administration (FDA).
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C. people must have unsatisfied wants and needs as well as a willingness and ability to buy.
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Increased participation in small business exporting owes credit to ________. A. political constituents who have made in-roads abroad B. large events such as the Olympics that have brought attention to the potential in world markets C. technological advances such as the Internet and PayPal for safely fulfilling orders D. partnerships that small businesses have formed with large businesses
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C. technological advances such as the Internet and PayPal for safely fulfilling orders
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A(n) ________________ is a group of experienced professionals from different areas of business who join together to develop, make, and market a new product. A. entrepreneurial team B. joint venture C. self-directed functional team D. managerial task force
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A. entrepreneurial team
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A firm or individual providing financial capital to small businesses in exchange for an ownership stake in the company is called a: A. corporate raider. B. takeover specialist. C. financial capitalist. D. venture capitalist.
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D. venture capitalist.
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The U.S. government's Immigration Act of 1990: A. encouraged entrepreneurs to come to the U.S. through "investor visas". B. established a government program to teach American workers displaced by immigration how to start their own businesses. C. established guidelines to help entrepreneurs recruit legal aliens as a source of low cost labor. D. proposed an exchange program for American and European entrepreneurs to temporarily live internationally in order to open up foreign branches for their businesses.
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A. encouraged entrepreneurs to come to the U.S. through "investor visas".
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Which of the following best describes the difference between an intrapreneur and an entrepreneur? A. Intrapreneurs start nonprofit organizations while entrepreneurs start profit-seeking businesses B. Intraprenuers are practical while entrepreneurs are creative C. Intrapreneurs work within existing corporations while entrepreneurs assume the risks of starting their own business D. Intrapreneurs limit their efforts to financial investments, while entrepreneurs are involved in the management of all areas of a business
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C. Intrapreneurs work within existing corporations while entrepreneurs assume the risks of starting their own business
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Business owners who prefer to maintain their businesses at a manageable size are called: A. macropreneurs B. intrapreneurs C. micropreneurs D. home workers
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C. micropreneurs
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A ________ refers to people with unsatisfied wants and needs who are willing and able to buy a product or service. A. market B. consumer cooperative C. consumer collective D. buyer's cooperative
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A. market
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Chris is an angel investor. This means that he: A. invests his money in new businesses with potential for growth, hoping for a good return on his investment if they go public. B. creates business incubators for startup Web-based firms. C. invests in non-profits that plan to change their status when they double in size. D. he comes to the rescue of firms who default on their bank loans.
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A. invests his money in new businesses with potential for growth, hoping for a good return on his investment if they go public.
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Intrapreneurs make use of __________ to develop and launch new products and generate new profits. A. their employer's existing human, financial, and physical resources B. their own personal financial resources C. government-supplied physical and financial resources D. old ideas abandoned by entrepreneurs
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A. their employer's existing human, financial, and physical resources
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A(n) ____________ is a valuable source of information regarding techniques to reduce a firm's exposure to risk. A. insurance agent B. Accountant C. liability assessor D. union business agent
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A. insurance agent
