BUS 139 HY1 Spring 2022 MF

Question 1

To be classified as social entrepreneurship, a business must have a triple bottom line.
True or False?

Answer 1

False

Question 2

For Webster to understand how his company performed during the calendar year 2012, he must begin with firm's financial position on:
A) January 1, 2012
B) July 1, 2013
C) September 30, 2010
D) June 30, 2011

Answer 2

A) January 1, 2012

Question 3

Two resources often in short supply for entrepreneurs are: 
A) time and money,
B) raw materials and labor, 
C) plant and equipment 
D) financial backing and creative genius

Answer 3

A) time and money

Question 4

Which of the following best fits the definition of a small business?
A. A manufacturer with 75 Investors
B. A hardware store franchise with 20 employees
C. A fast-food franchise with locations in three states
D. A campground with gross revenues o $4 Million per year

Answer 4

B. A hardware store franchise with 20 employees

Question 5

In a family business, the interests of the family and the intrests of the business are best described as:
A) Overlapping
B) Conflicting
C) Coinciding
D) having no relationship with each other.

Answer 5

A) Overlapping

Question 6

Sabrina has figured out how to recycle clear plastic battles into the woven fabric and has launched a new business. Sabrina is:

Answer 6

A social entrepreneur

Question 7

Joe has redesigned an app that helps businesses organize their taces after a rival gained market share. The IRS and the Society of Certified Public accountants have said the app meets tax standards. The app would be considered a(n)
a- sustainable competitive advantage
b- strategic alliance
c- competitive adjustment
d- business process reengineering

Answer 7

a- sustainable competitive advantage

Question 8

Evelyn opened a small boutique catering to a very narrowly defined target market. Evelyn’s competitive edge is:

Answer 8

The niche market

Question 9

While increasing debt levels can increase the owner’s return on equity, it also reduces risk.
a- True
b- False

Answer 9

b- false

Question 10

With the right assistance from professional source (e.g., attorneys, accounting firms, incubator services), the entrepreneur can avoid direct involvement in developing the business plan.
A) True
B) False

Answer 10

B) False

Question 11

A business plan should represent the entrepreneur’s vision and goals for the proposed company.
A) True
B) False

Answer 11

A) True

Question 12

Ignazio has just opened his business. One of the first things he should learn is:
a- how to prepare the financial statements
b- which numbers are most important for him to watch and to watch them like a hawk
c- whether to pay close attention to monthly sales or cash flow
d- when to lease assets and when to buy them

Answer 12

b- which numbers are most important for him to watch and to watch them like a hawk

Question 13

Only product firms have an operations process.
A) True
B) False

Answer 13

B)False

Question 14

A computer technician recognizing a need for more aesthetically pleasing computers would be said to have entrepreneurial ____.

a. Technology
b. Alertness
c. Strategy
d. Rivalry

Answer 14

b. Alertness

Question 15

One of the advantages of buying a franchise is that the purchaser has access to a proven business system.

A) True
B) False

Answer 15

A) True

Question 16

A method that judges products as acceptable or unacceptable is known as…

A) poka-yoke
B) attribute inspection
C) acceptance sampling
D) variable inspection

Answer 16

B) attribute inspection

Question 17

The income statement answers which question?
a- how much cash did the firm generate?
b- how profitable was the business? 
c- how much money does the company owe?
d- how much money did the owners invest?

Answer 17

b- how profitable was the business?

Question 18

Katarina has founded 3 different businesses in the past 8 years, all of which have become so successful she has sold them at large profits. We can say Katarina is good at:

Answer 18

Opportunity Recognition

Question 19

A camera hobbyist starts a photographic supplies store. The most obvious reward for this entrepreneur is the opportunity to:

Answer 19

Enjoy Satisfying work

Question 20

Janis wants to open a restaurant. She is not interested in a franchise; she wants to build her business literally from the ground up. When she does, her business will be classified as a:

a. Entrepreneurial Opportunity
b. Startup
c. New Market Idea
d. Serendipity

Answer 20

b. Startup

Question 21

Richard has in his warehouse some raw materials and finished goods that he has ready to fill customer orders. These are two types of \_\_\_. 
a- accounts payable
b- accounts receivable
c- the cost of goods
d- inventories

Answer 21

d- inventories

Question 22

Capital-constained entrepreneurs cannot afford to do much prior analysis and research because
A) the affordability of properly conducted research is beyond the means at their disposal.
B) the limited costs if any mistakes are lower than the risks of missing out on opportunistic actions.
C) the limited profit potential and high uncertainty of the opportunity they pursue may make the benefits low compared to the costs.
D) potential competitors could quickly discern the entrepreneurs’ intentions and motives from their research.

Answer 22

C) the limited profit potential and high uncertainty of the opportunity they pursue may make the benefits low compared to the costs.

Question 23

Which action will be a concern for a prospective investor?
A) Having too much cash in a bank account
B) Searching for information with a trade association
C) Inadequate provision for personal expenses of the entrepreneur
D) Obtaining a line of credit before begging operations

Answer 23

C) Inadequate provision for personal expenses of the entrepreneur

Question 24

The Pepsi-Cola Company is an example of a product and trade name franchisor.

a. True
b. False

Answer 24

a. True

Question 25

Allan opened a hot dog stand in Central Park ,New york City. He owns it and operates it six days a week.year round. What kind of business is this?

Answer 25

An owner-managed business

Question 26

Bret first opened his hardware store in 1946. His sons took over when Bret retired, and now Bret's grandchildren run the store. This type of family business in known as:
A) a sibling partnership 
B) a franchise
C) a cousin consortium
D) an owner-managed business

Answer 26

C) a cousin consortium

Question 27

A critical part of a family firm transfer from one generation to the next is to discuss decisions with potential heirs as well as family members working in the company.

A) True
B) False

Answer 27

A) True

Question 28

The practise of putting one franchise right next to another is referred to as piggyback franchising.

A) True
B) False

Answer 28

B) False

Question 29

Franchising offers both a proven line of business and reduced risk.

A) True
B) False

Answer 29

A) True

Question 30

Israel Kirzner believes entrepreneurs have a unique capability, which he calls \_\_\_\_\_\_, to spot existing opportunities for businesses. 
A) innovative thinking
B) market awareness
C) entrepreneurial alertness
D) opportunity recognition

Answer 30

C) entrepreneurial alertness

Question 31

John and his brother Jack started a produce farm 20 years ago and are thinking about retirement. Overtime, their children have worked at the farm and so the cousins have started talking about taking over management. At present, this produce farm is a example of .

Answer 31

Owner- managed business

Question 32

What opportunities may opening a business in a HUBZone make available?

Answer 32

HUBZone areas make it easier for small businesses to get access to federal procurement opportunities.

Question 33

Isabella listens whenever someone says “Someone ought to make a…” She expects one of these ideas to develop into a profitable business. Isabella possesses:

a. Market Awareness
b. Entrepreneurial Alertness
c. Opportunity Recognition
d. Innovative Thinking

Answer 33

b. Entrepreneurial Alertness

Question 34

An entrepreneur should always project at least two scenarios for financial forecasting and budgeting: best case and worst case. True or False

Answer 34

False

Question 35

A franchising strategy whereby a single franchisee owns more than one unit in a given area is typically referred to as an area developer strategy.

a. True
b. False

Answer 35

a. True

Question 36

To be realistic, an entrepreneur should project profits only one year into the future. True or False

Answer 36

false

Question 37

Zeno had a great idea but no cash so he asked the bank for a loan to finance the entire operation. It seems he forgot that a bank would never provide ___% of the firm’s financing.

Answer 37

100%

Question 38

All small firms want to grow. True or False

Answer 38

False

Question 39

While unethical practices do exist, it is good that the great majority of small firms strive to achieve the highest standards of ___ in their quest for profits.

a. integrity
b. relativism
c. synchronous behavior
d. congruity

Answer 39

a. integrity

Question 40

Explain the basic supply chain. Include material, information, and financial flows, nodes, and linkages.

Answer 40

Raw material extraction-> processing-> manufacturing -> storage/ distribution -> wholesale -> retail-> consumption

The basic supply chain follows the flow of raw material to processing to manufacturing to storage and distribution to wholesale to retail to consumption. In this chain, the information goes back along the chain while the materials, work in progress and final products flow with the supply chain.

Question 41

Define both the No Poverty and Zero Hunger United Nations Sustainable Development Goals.

Answer 41

No Poverty describes how, since 2015, hundreds of millions of people struggle to maintain their basic human needs and how they strives to remove all aspects of poverty by 2030.
Zero Hunger describes that though there are almost 900 million people, over 10% of which are children, are dangerously underweight and malnourished, and strive to end all malnourishment by 2030.

Question 42

Because growth in sales is perceived as good for business, no changes will be needed in personnel, operations, or management style. True or False

Answer 42

False

Question 43

What are three reasons we are learning about non-profits in this class?

Answer 43

Community benefit, brings jobs to the region, seperates economic benefit from to the region.

Question 44

Which item is a tangible output for a bed and breakfast inn guest?
A) Questions answered about local attractions
B) Full breakfast in the morning
C) Use of a room
D) Two of the above tangible outputs

Answer 44

B) Full breakfast in the morning

Question 45

The product life cycle, as opposed to the competitive advantage life cycle,

Answer 45

helps an entrepreneur visualize the sales and profits of a product from the time it is introduced until it is no longer on the market.

Question 46

A firm’s employees would be considered __________ in the business.

a. Investors
b. Stakeholders
c. Customers
d. Stockholders

Answer 46

b. Stakeholders

Question 47

If a small firm is to maintain its performance over time, it is essential to

Answer 47

continue to reinvent themselves

Question 48

Of all the possible stakeholders, the three primary ones are

a. The government, the community, and the customers
b. The customers, the employees, and the owners
c. The creditors, the investors, and the employees
d. The suppliers, the customers, and the society at large

Answer 48

b. The customers, the employees, and the owners

Question 49

Compare and contrast shareholders and stakeholders.

Answer 49

A stakeholder is any person that has an interest in a company’s success, while a shareholder is a person that has shares in that company. They both care about the company, and are taking part in the company. A shareholder is always a stakeholder, but a stakeholder is not always a shareholder.

Question 50

Which operations factor is centered around satisfying customers over time?
A) Flexibility
B) Facilities and equipment
C) Choice of a joint venture
D) Customer Demand

Answer 50

A) Flexibility

Question 51

Describe the similarities and differences between B2C, B2B, and B2G.

Answer 51

B2C is Business to Costumer. B2B is Business to Business. B2G is Business to Government.
Business to Business tends to have longer costumer relationships while Business to Costumer and Business to Government are shorter costumer relationships.
Both B2B and B2C sales require personalized experiences to nurture, engage, convert, and make sales.

Question 52

Manufacturers with seasonal demand schedules often hire temps during peak production and keep only skeleton crews the rest of the year.
A) True
B) False

Answer 52

B) False

Question 53

Entrepreneurs should think carefully about their community commitments because “doing good” may add to a small company’s

a. bottom line
b. financial burden
c. payroll
d. local profile

Answer 53

b. financial burden

Question 54

Describe the five (5) factors used to evaluate the strength of a business.

Answer 54

1. Meet market needs: you are meeting the needs of the market you are catering towards.
2. Create value for users/ stakeholders: you can make it worthwhile for stakeholders and users to want to be a part of the business.
3. Offer products/ services that customers favor: you are giving products or services that people actually want to use, there is a demand for them.
4. Are easy to use: they are understandable and easy to use/hire, the business is not confusing.
5. No fatal flaws: there are no gaps in your business plan, you have everything thoroughly thought out.

Question 55

Why might a lack of competitors not be a good sign for a business idea? Is it always a bad sign? Why/ why not?

Answer 55

A lack of competitors in a given area could mean that similar businesses have tried and failed. But that’s not always the case, it could just simply be a lack of competition.

Question 56

what is a HUBZone designation?

Answer 56

A HUBZone designation is an area like cherokee county, HUBZone is a small business administration that helps small businesses have access to federal opportunities, the business has to be approved before given opportunities one example would be a business being in a area with very little cash flow unlike places in city’s.

Question 57

What challenges are small businesses experiencing that are different from large businesses? Why is that?

Answer 57

Many small businesses have a harder time getting supply and products than large businesses because they don’t have as much money.

Question 58

Describe any two federal contracting assistance programs

Answer 58

Two examples of contracting assistance programs include ones for veteran owned businesses and woman owned businesses.

Question 59

Explain barriers to entry and their two most frequent sources, according to the course lectures.

Answer 59

Barriers to entry are obstacles that can prevent a successful start-up. The two most frequent are financial and regulatory.