Small Business Managment quiz 1 and 2

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

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