Small Business Managment quiz 1 and 2 – Flashcards
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Containers Etc. manufactures household containers. In contrast to traditional market designs, all of the products are microwavable, child-prof and come in an assortment of 35 colors. Accordingly, Containers Etc. is pursuing a ______________ strategy.
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differentiation-based
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Resources are best described as
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Those basic inputs that a firm uses to conduct its business
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A type C idea involves
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performing an old function in a new and improved way
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Which action is a cause for erosion of a small firm's strategy
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The focus strategy is limited
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An increase in rivalry among existing competitors in a target market
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decreases both the attractiveness and the profitability of the target market
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Which segment is part of the general environment
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The global segment
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Carol runs Technographics, a company that designs greeting cards for a computer user. What type of strategy would be expected
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a focus strategy
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An evaluation of the general environment helps to
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identify a trend that could be used for a possible startup idea
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In what way is a franchisee's control over the business greatly reduced
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The franchisee is bound by the terms of the franchise contract
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Craig Slavin, as the chairman and founder of Franchise Architects, felt that
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Too many ventures are built from the top down based on the founding entrepreneur
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Which technique is not valid for valuing a company
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review of recent business sales
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The Franchise Registry maintained by the U.S. Small Business Administration
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verifies a franchise systems lending eligibility
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An entity or individual that grants another party the right to conduct business according to specified methods and terms is known as a
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franchisor
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A family member who believes that joining the business may be the best way to benefit from what the family firm has to offer is revealing a __________ commitment
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cost-based
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A document that states the principles intended to guide a family firm through times of crisis and change, including the succession process is called the
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family business constitution
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A benefit of a strong family relationships is the greater willingness of family members to
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sacrifice salaries and dividends when necessary
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Family members who join the business because of a concern that they may not be able to reach career success on their own display an ________________
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need based commitment
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Entrepreneurs often produce innovations related to
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developing others ideas
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Compared to large corporations, small businesses
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play just as important if not a larger part in the economy
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A person who initiates a new business is classified as a
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founder
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Researchers Niels van Quaquebeke and Steffen Giessner found what in their study on integrity
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perception of integrity make a difference
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Entrepreneurs should think carefully about their community commitments because " doing good" may add to a small company
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financial burden
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Entrepreneurs must reconcile their social obligations
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the need to earn profits
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A person misrepresenting income or claiming personal expenses as business expenses is guilty of
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skimming
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In drawing up a code of ethics, a small business owner should adopt a code that
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outlines ethical principles and gives examples
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A code of ethics becomes increasingly appropriate and necessary as a small business
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grows larger, with a consequent lessening of the owner's personal influence
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The most important influence on ethics in a small business is
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the founder or owner who's values are pit into practice
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The application of U.S. standards to ethical issues that are clouded by cultural differences aboard is sometimes categorized as
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ethical imperialism
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A nationwide survey showed what proportions of individuals holding managerial and professional positions in small business felt no pressure to act unethically
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72.3%
