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Study Resources (Business Management)

  Mini-Case 3-1: Finding a Competitive Advantage   Copreneurs Ed and Yolanda recently opened a vintage used car lot called Cherry Lane. They sell antique and collectible cars on consignment for the owners at a fee of 30 percent of the selling price. The price is further reduced by 10 percent if a.
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  55) Creativity is the ability to apply creative solutions to problems and opportunities to enhance or enrich people's lives. 56) Innovation is the ability to develop new ideas and to discover new ways of looking at problems and opportunities. 57) Creativity is the ability to develop new ideas and to discover new.
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  61) Which of the following statements about the preparation of a business plan is/are not true? A) Grammatical and spelling errors in a business plan don't really count since potential lenders and investors judge the quality of a plan by its content. B) The business plan should be "crisp," long enough to.
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  1) Which of the following is not one of the three components of intellectual capital? A) Human B) Structural C) Competitor D) Customer 2) ________ involves developing a game plan to guide a company as it strives to accomplish its mission, goals, and objectives to keep it on its desired course. A) Competitive advantage B) Mission C) Strategic.
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  107) When describing their products and services in their business plans, entrepreneurs must remember that customers buy the benefits from products and services, not the features. 108) An important goal of the "marketing strategy" section of the business plan is to prove that there is a real market for the proposed.
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  31) Which stage of the creative process requires one to develop a solid understanding of the problem or decision? A) Investigation B) Preparation C) Illumination D) Verification 32) Which stage of the creative process involves viewing the similarities and differences in the information collected? A) Transformation B) Incubation C) Illumination D) Verification 33) The ability to see the similarities and.
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  87) Because the entrepreneur is the driving force behind a business idea, he or she should also be the driving force behind the business plan. 88) Before presenting a business plan to potential lenders and investors, an entrepreneur must be well informed and well prepared. 89) A business plan should contain certain.
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  11) Conducting ________ research involves collecting data firsthand and analyzing it while ________ research involves gathering data that has already been complied and is available. A) primary; secondary B) secondary; primary C) primary; industry D) product; secondary 12) One form of primary research is: A) to review published articles. B) Internet research. C) library research. D) a focus group. 13).
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  53) With the growth of the Internet, globalization, and increased competition, the business environment has become more turbulent and challenging. 54) One of the biggest changes entrepreneurs face is the shift in the economy from a base of financial to intellectual capital. 55) The three components of intellectual capital are human, structural,.
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  141) To get external financing, an entrepreneur's plan must pass three tests with potential lenders and investors.  List and briefly explain all three. 142) "Sometimes the greatest service a business plan provides an entrepreneur is the realization that the business venture just won't succeed." Explain this statement. 143) You have been asked.
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  121) List five ways entrepreneurs can stimulate their own creativity and encourage it among workers. 122) List five ways individuals can enhance their own creativity. 123) List and briefly explain the seven steps in the creative process and discuss the step that you consider to be the most critical. 1.Preparation?Get your mind ready.
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  86) To form a limited liability company, an entrepreneur must file both the articles of incorporation and the operating agreement with the secretary of state. 87) As in a limited partnership, owners of a limited liability company who want to maintain their limited liability status cannot actively participate in the management.
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  97) In the business and industry profile section of the business plan, the entrepreneur should provide information on the size of the market, growth trends, and the relative economic and competitive strength of the industry's major players. 98) The business and industry profile section of the business plan should cover existing.
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  73) "Big box retailers" present an opportunity for many small business owners. 74) A firm's strategy must focus on establishing for the firm the key success factors the entrepreneur has identified for the industry. 75) To be effective, the small business owner should limit strategic analysis to only the two or three.
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  77) To get external financing, an entrepreneur's business plan must pass the reality test, the competitive test, and the value test with potential lenders and investors. 78) The reality test that a business plan must pass in order to attract financing from lenders and investors involves proving that a market for.
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  118) Assume you own a small shoe store.  Discuss the three different types of competition you might face and give examples of each. 119) What is strategy?  Describe the three basic strategies small companies can choose from: cost-leadership, differentiation, and focus.  Explain the conditions under which each works, its benefits, and.
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  21) Which of the following is an effective method of collecting information about competitors? A) Ask customers and suppliers what competitors are doing. B) Talk to employees, especially sales representatives and purchasing agents, about competitors. C) Attend trade shows and collect competitors' sales literature. D) All of the above 22) Which of the following is.
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  75) The right brain is guided by linear, vertical thinking. 76) The right brain relies on kaleidoscopic, lateral thinking. 77) The left brain handles language, logic, and symbols. 78) The right brain takes care of the body's emotional, intuitive, and spatial functions. 79) The right brain processes information intuitively?all at once, relying heavily on.
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  144) Explain the concept of a company's mission.  What are goals?  What are the objectives?  How are the three concepts related? 145) The marketing strategy section is a vital part of any business plan.  What issues should it address? 146) The financial plan within a business plan is of interest to potential.
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  31) Which of the following is not a characteristic of a well-written objective? A) Realistic, yet challenging B) Measurable C) General D) Timely 32) The focal point of any company's strategy, whatever it may be, should be: A) its product or service. B) its competition. C) its customers. D) its strengths and weaknesses. 33) A ________ is a road map.
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  11) The left brain is guided by: A) kaleidoscopic, lateral thinking. B) linear, vertical thinking. C) asymmetrical thinking. D) intuitive thinking. 12) The right brain is guided by: A) kaleidoscopic, lateral thinking. B) linear, vertical thinking. C) asymmetrical thinking. D) logical thinking. 13) Which hemisphere of the brain is responsible for language, logic, and symbols? A) Right hemisphere B) Left hemisphere C) Lateral.
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  Devo, Anthony, and Spencer were childhood friends who had always talked about starting a business together after college graduation. Devo had the financial background and startup capital to contribute and Spencer and Anthony had the technical knowledge they believed would give them the competitive advantage needed to become an industry.
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  67) A feasibility analysis is the process of determining whether an entrepreneur's idea is a viable foundation for creating a successful business. 68) Porter's five forces model only considers direct competitors within a single industry. 69) The five forces model would assess economies of scale factors in the "threat of new entrants".
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  117) The plan of operation section of the business plan should address how the business plans to retain key managers and employees. 118) The business plan should include an existing firm's past three years of financial statements as well as its projected statements. 119) An entrepreneur should prepare a single set of.
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  21) Roger von Oech believes that blindly following rules leads to: A) order, which stimulates creativity. B) a clearer vision and business venture. C) new ways of doing things. D) a mental block towards creativity. 22) Joseph Schumpeter wrote that entrepreneurs perform the vital function of: A) challenging accepted ways of doing things. B) creative destruction. C) revolutionizing.
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  93) Before an entrepreneur can build a successful strategy, she must establish a clear mission, goals, and objectives in order to have appropriate targets at which to aim her strategy. 94) A strategy is a road map of action for fulfilling a firm's mission, goals, and objectives. 95) A company pursuing a.
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  41) ________ are short-term, specific targets which are attainable, measurable, and controllable. A) Objectives B) Policies C) Goals D) Standard operating procedures 42) The section that describes "how to get there" and describes a competitive edge that sets the business apart is referred to as the: A) business strategy. B) executive summary. C) industry profile. D) vision statement. 43) In.
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  83) One of the goals of competitive analysis is to improve a firm's reaction time to competitor's actions. 84) A competitive profile matrix analyzes how well a company and its rivals match the key success factors in the industry. 85) Goals are the broad, long-range attributes that a business seeks to accomplish;.
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  11) A small company's mission statement: A) establishes its purpose in writing. B) gives the business and everyone in it a sense of direction. C) defines what the company is, why it exists, and its reason for being. D) All of the above 12) When developing a company's mission statement, an entrepreneur should remember to: A).
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  1) The process of determining whether an entrepreneur's idea is a viable foundation for creating a successful business is known as a: A) business plan. B) strategic analysis. C) industry analysis. D) feasibility analysis. 2) Porter's five forces model assess industry attractiveness by surveying these five factors: A) potential entrants, suppliers, buyers, substitutes, and rivalry among.
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  41) Cost-leadership may have which of the following inherent dangers? A) What is chosen to distinguish the product does not boost its performance. B) An overfocus on the physical characteristics of the product C) The identified niche is not large enough to be profitable. D) An overemphasis on costs to the elimination of other.
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  63) The most effective way to communicate the values of a company to everyone it touches is to formulate an effective mission statement. 64) The mission statement addresses the first question of any business venture: "What business am I in?" 65) A company's mission statement defines what it stands for, why it.
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  76) "Double taxation" refers to the fact that corporations are required to pay both federal and state income taxes. 77) "Double taxation" refers to the fact that the corporation itself must pay taxes on its net profits, and the stockholders must also pay taxes on the portion of those same profits.
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  103) One danger in choosing a differentiation strategy is trying to differentiate based on something that the customer does not perceive as valuable. 104) A small business following a focus strategy attempts to serve its narrow target markets more effectively and efficiently than competitors trying to appeal to the broad market. 105).
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  124) Why is it important for an entrepreneur to use techniques like mind-mapping, which use both sides of the brain? 125) List the steps an entrepreneur should follow in order to enhance his/her chances of receiving a patent. 1.Establish the invention's novelty. 2.Document the device. 3.Search existing patents. 4.Study search results. 5.Submit the patent application. 6.Prosecute the.
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  51) When formulating a marketing strategy, small companies usually are most successful when they: A) try to be "everything to everybody." B) focus on a particular market niche where they can excel at meeting customers' needs and wants. C) compete with their larger rivals on the basis on price. D) discover what the market.
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  41) Effective brainstorming involves all of the following except: A) a small group of people. B) an open uninhibited environment. C) an effective method to evaluate ideas. D) very little structure. 42) ________ is a graphical technique that encourages thinking on both sides of the brain, visually displays the various relationships among the ideas, and.
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  95) Ambiguity tends to destroy creativity. 96) Failure is an important part of the creative process, as it provides a chance to learn how to succeed. 97) Employees tend to rise?or fall?to the level of expectations entrepreneurs have of them. 98) Research shows that not everyone can be creative. 99) Hiring a diverse workforce.
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  65) On average, new products account for two-thirds to three-fourths of companies' sales. 66) Creativity is not only an important source for building a competitive advantage, but it also is necessary for survival. 67) History is always a reliable predictor of the future of business. 68) Entrepreneurs must embrace traditional assumptions and perspectives.
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  127) The quality of the entrepreneur's business plan determines the first impression potential lenders and investors have of the company. 128) The majority of loans banks make to small business startups are unsecured loans. 129) The most common reasons banks give for rejecting small business loan applications are undercapitalization and too much.
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