Mgmt 371 chapter 10 – Flashcards
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an entrepreneur does all of the following EXCEPT
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hire professional managers
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Alan Mckim stated Clean Harbors an environmental cleanup firm that specializes in toxic waste clean up. He is best classified as
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entrepreneur
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Which of the following describes an entrepreneur
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Chad Olsen, who hired a consulting firm to research his business idea and help him set up Help-Doc, which he now manages
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Karyn Corani developed the idea to make Tohos, pantyhose
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entrepreneur
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Which of the following is NOT an example of a entrepreneur
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cindy has a yard sale once a year
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Kristen owns and operates a photography studio. She has no employees. she is a
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small business owner
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A small business
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has sales so small it cannot influence its environment
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Which of the following statements comparing small businesses to large businesses is FALSE
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Large businesses show better financial performance then small businesses
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Which of the following is NOT generally considered to be a role performed by small businesses
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provision of capital for expansion of large businesses
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In terms of the number of new jobs formed each year, how does small business compare to big business
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Small business was recently passed by big business in creating new jobs
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Which of these statements comparing large and small businesses is TRUE
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business success creates jobs regardless of size
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While watching her dad cook bacon in the microwave
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innovation and its importance to a big company
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If an entrepreneur were considering a new business, which of the following would be a DESIRABLE characteristic of the industry being considered
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The new company will sell a newly patented invention that is not yet well known but is expected to dominate the market
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In which of the following industries are you most likely to find small business success
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retailing
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Service businesses are the fastest growing segment of small business enterprises primarily because of
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size of initial capital investment required
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Which of the following statements about service businesses that are classified as small businesses is TRUE
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all of these
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In which of the following ventures would a small business operator be most effective
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personal financial advisor
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In which of the following areas of retailing are small businesses most likely to create jobs through success
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organic health care
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Which of the following statements explains why small businesses are generally more effective than large companies in specialty retailing
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speciality retailing relies on customization, which is not cost effective for large companies
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Which of the following statements is TRUE about the industries that small business owners may consider entering
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Barriers to entry are generally small
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Why are some small business owners successful in the wholesaling industry
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small business owners are able to develop personal working relationships with their buyers
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In which of the following industries are you LEAST likely to find a small business owner performing well due to a lack of economies of scale
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manufacturing
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In which of the following industries are small businesses typically poorer performers than large businesses
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manufacturing
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Research has shown that manufacturing costs often fall as the number of units produced by an organization increases. Relationship between cost and production is called
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economy of scale
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Large businesses are more likely to succeed in manufacturing industry than small businesses due to
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economies of scale
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Which of the following is NOT considered to be distinctive competency for small business
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ability to achieve economies of scale
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Which of the following is an example of identifying a new niche in an established market
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modifying a cell phone keyboard to alphabetical order
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An entrepreneur looking to enter the manufacturing industry is more likely to fail due to
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all of these
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Anderson Windows has succeeded in bringing mass customization to the windows segment.
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established market competitor
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Which of the following is an example of a first mover advantage
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Orange county choppers builders of custom motorcycles
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Webkinz was the first top company to sell stuffed animals with codes to play on the internet game site
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company with first mover advantage
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Susan Medlin builds small chicken coops for urban backyards. This is an example of
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identifying a niche
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The overall purpose of a business plant to
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identify all actions required up to the point when the firm opens its doors
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which activity in developing a business plan is the most important
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researching the market
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Patina Home was a quaint shopper with high end items that never attracted many customers. Its failure was probably attributed to failure to
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do more market research
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The text lists several questions that the business plan should answer for the entrepreneur who is planning to open a business. Which of the following is one of those questions
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what does she or he want to accomplish
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The first step for the entrepreneur in planning his or her business is to
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engage in self analysis
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The most important part of the small business financial plan us the
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cash budget
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The _____ tells how much money is needed to operate a new business
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cash budget
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therese wants to start her own running race management company. To help her determine whether this is a good idea, she needs to find the answers to which question
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all of these
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What is the most common source of funds for the entrepreneurs
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personal financial resources
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______ are a group of small investors seeking to make profits on companies with rapid growth potential
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venture capitalists
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Therese wants to start her own race management company. Where should she look first
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personal resources
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Which of the following is NOT a source of management advice for an entrepreneur
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Securities and Exchange Commission (SEC) Federal Trade Commission (FTC)
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Anns dog kennel is in danger of failing where does she get help from
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Small business development center (SBDC)
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Under the guidance of the _____, veteran business professors and students seeking advanced degrees work with small business owners to help solve problems
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Small business institute (SBI)
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Anns dog kenel has ineffective advertising where should she go for help
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Small business institute (SBI)
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Why should a new entrepreneur who has to be careful how she spends every penny joint the NFIB
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the organization offers excellent networking opportunities
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Jay wants to start a new business. With which of the following methods of starting new business will pay a share of income in return for trademarks
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franchising
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Which of the following statements about recent trades in franchising is TRUE
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franchising is growing rapidly and is projected to account for half of all retail sales
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The most significant disadvantage to franchising as a means of acquiring business is
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high start up costs
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The most significant change in small business is
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the rapid emergence of electronic commerce
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Four general factors contribute to the failure rate of small businesses. They include
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managerial inexperience
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Most experts say that anyone opening a new business should be financially strong enough to operate without business income for
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6-12 months
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Four general factors contribute to the failure rate of small businesses. Which of the following is NOT one of those factors
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low start up costs
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Four general factors contribute to the success rate of small businesses. which of the following is NOT one of those factors
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empathy with customers
