Chapter 3 Flashcards
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.
D) management of the business.
2) All businesses start with: A) a mature marketplace. B) a large sum of funds. C) strong relationships. D) an idea.
D) an idea.
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.
B) sequentially
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.
B) an open, in-depth discussion.
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.
B) perform an opportunity assessment.
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.
D) think about consumer habits and demands.
7) Which is not a source of new ideas indicated in the textbook? A) Observations B) Lifestyles C) Hobbies D) Occupations
B) Lifestyles
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.
D) non-quantitative factors
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) good health and expertise in the fundamentals of management.
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.
D) competitive advantage.
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) unbalanced experience.
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) one way to enter a market
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) try to create a competitive advantage over the existing product or service.
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.
C) satisfy emotional needs.
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.
C) a competitive advantage