Chapter 3 Flashcards

1
Q

1) The entrepreneurial process outlined in the text includes:
A) developing quality of life goals.
B) finding partners.
C) developing a relationship with major competitors.
D) management of the business.

A

D) management of the business.

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2
Q
2) All businesses start with: 
A) a mature marketplace.
B) a large sum of funds. 
C) strong relationships. 
D) an idea.
A

D) an idea.

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3
Q

3) The stages in the entrepreneurial process proceed:
A) based on the entrepreneur’s strengths.
B) sequentially.
C) in whatever order makes the most sense in the circumstances.
D) simultaneously.

A

B) sequentially

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4
Q

4) A focus group involves:
A) a discussion among lenders and customers focused on pricing and payment terms.
B) an open, in-depth discussion.
C) asking questions to solicit participant responses.
D) focusing a group of interested consumers on a new product.

A

B) an open, in-depth discussion.

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5
Q

5) Normally, before writing a full business plan, entrepreneurs will:
A) hire key position employees.
B) perform an opportunity assessment.
C) visit a banker.
D) ensure that they have enough funding to be successful.

A

B) perform an opportunity assessment.

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6
Q

6) One of the best ways to develop a new idea is to:
A) discuss with family and friends what they think you should do for a business.
B) explore your own hobbies and areas of interest.
C) withdraw from your daily work and relax.
D) think about consumer habits and demands.

A

D) think about consumer habits and demands.

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7
Q
7) Which is not a source of new ideas indicated in the textbook? 
A) Observations
B) Lifestyles
C) Hobbies
D) Occupations
A

B) Lifestyles

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8
Q
8) Qualitative assessments look at:
A) how well sales are doing for a particular product.
B) market dominance metrics. 
C) cash flow numbers.
D) non-quantitative factors.
A

D) non-quantitative factors

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9
Q

9) Two important capabilities that an owner-manager ought to have are:
A) good health and expertise in the fundamentals of management.
B) public image and banking contacts.
C) pleasant personality and talent.
D) industry connections and knowledge.

A

A) good health and expertise in the fundamentals of management.

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10
Q

10) A business opportunity assessment includes consideration of:
A) the possibilities for family succession.
B) the entrepreneur’s ability to manage people.
C) impact on the entrepreneur’s home life.
D) competitive advantage.

A

D) competitive advantage.

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11
Q
11) One of the major causes of business failure is: 
A) unbalanced experience.
B) wide-ranging interests. 
C) strong imagination.
D) lack of family support.
A

A) unbalanced experience.

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12
Q

12) Offering a totally new product is:
A) one way to enter a market.
B) the best way to dominate a market in the long term. C) is a sure way to succeed.
D) generally a low-risk gamble.

A

A) one way to enter a market

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13
Q

13) If a business wishes to offer a product or service similar to one that is already in the market, they should:
A) try to create a competitive advantage over the existing product or service.
B) forget about this idea because it rarely works out well.
C) Try to make their product or service look the same as the existing product or service.
D) try to compete on the basis of price.

A

A) try to create a competitive advantage over the existing product or service.

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14
Q

14) Businesses selling fad or novelty-type products can succeed because of these types of products:
A) are usually packaged in an appealing way.
B) have interesting operating characteristics.
C) satisfy emotional needs.
D) are usually inexpensive.

A

C) satisfy emotional needs.

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15
Q
15) In order to be successful, a business should ensure that it has: 
A) environmentally-friendly aspects.
B) ergonomic product design. 
C) a competitive advantage. 
D) a monopoly position.
A

C) a competitive advantage

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16
Q
16) Typically, in a service business, a major factor in generating revenue is: 
A) the expertise of the owner.
B) equipment in good working condition. 
C) a suitable accounting system.
D) office layout.
A

A) the expertise of the owner.

17
Q
17) A recent report suggested that future growth in the following areas would provide a good chance for success in the future:
A) bookstores.
B) services for small businesses.
C) recreational campground development.
D) supermarkets.
A

B) services for small businesses.

18
Q

18) Some aspects of business that are more difficult for small businesses are:
A) flexibility and innovation.
B) customer service and product quality.
C) innovation and location.
D) price and location.

A

D) price and location.

19
Q
19) Which is not a natural advantage for a small business? 
A) Supplier volume
B) Innovation
C) Customer service 
D) Product quality
A

A) Supplier volume

20
Q
20) Two general types of information available to prospective small business owners are: 
A) primary data and secondary data.
B) micro data and macro data.
C) paid data and free data.
D) high-quality data and empirical data.
A

A) primary data and secondary data.

21
Q
21) Most provincial and territorial governments use \_\_\_\_\_\_\_\_ to assist small businesses. 
A) Skype
B) small business consultants 
C) case studies
D) online chat facilities
A

B) small business consultants

22
Q

22) Test marketing involves:
A) sending surveys to a significant number of customers in the industry.
B) putting product into an existing outlet.
C) simulating an actual market situation.
D) asking potential customers how much they would pay for the product.

A

C) simulating an actual market situation

23
Q

23) Which is not a form of primary data?
A) Observation
B) Statistics Canada labour market surveys
C) Personal interviews
D) Internet surveys

A

B) Statistics Canada labour market surveys

24
Q

24) The breakdown method refers to:
A) quality control.
B) impact of a product on customer relationships.
C) testing a product for incidence of breakdowns.
D) eliminating a demographic.

A

D) eliminating a demographic.

25
Q

25) The purpose of calculating market potential is:
A) to estimate the total amount of selling space in the market devoted to the merchandise the new
business will sell.
B) to estimate the percentage of the total market potential the proposed business will obtain.
C) to arrive at a dollar or unit sales estimate for the total market.
D) to calculate the market share based on selling space.

A

C) to arrive at a dollar or unit sales estimate for the total market.

26
Q

26) Market share means:
A) percentage of the total market which a business controls.
B) the social responsibility of an industry with the communities in which it operates.
C) ease of entry into a market by a new business.
D) the dollar volume of sales by the major business in a market.

A

A) percentage of the total market which a business controls.

27
Q

27) An important part of a feasibility analysis for a manufacturing business is:
A) the relative newness of the product.
B) the total dollars invested by owners.
C) the ease of the manufacturing process.
D) the financial break-even point.

A

D) the financial break-even point.