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Study Resources (Business Management)

  143) To get external financing, an entrepreneur's plan must pass three tests with potential lenders and investors. List and briefly explain all three. 144) "Sometimes the greatest service a business plan provides an entrepreneur is the realization that the business venture just won't succeed." Explain this statement.     .
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  91) A business plan should contain certain basic elements, but it should also be tailored to the individual company by emphasizing its particular personality and reflecting the entrepreneur's excitement for the business opportunity. 92) The most effective business plans follow the "cookie cutter approach," following the standard format most preferred by.
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  71) The right brain is guided by linear, vertical thinking. 72) The right brain relies on kaleidoscopic, lateral thinking. 73) While most people see what they have always seen, creative entrepreneurs are able to see beyond preconceptions. 74) Research shows that each hemisphere of the human brain processes information differently and that one.
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  122) What is a competitive advantage? Does Cherry Lane have one? If so, what is it? 123) As Ed and Yolanda begin the strategic planning process, what steps should they take? 124) Considering the three basic small business strategies identified in your textbook, which one would work best for Cherry Lane? Why.
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  71) The strongest of the five forces in most industries is the rivalry that exists among the businesses competing in a particular market. 72) New entrants to an industry can erode existing companies' market share and profits. 73) A product or service feasibility analysis determines the degree to which a product.
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  61) Although developing a strategic plan is important for large companies, it is not essential to managing a small company successfully because of its limited resources. 62) The ideal strategic planning process for a small company should start with setting objectives. 63) The ideal strategic planning procedure for a small company should.
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  81) Conducting successful competitive intelligence on rivals' strategies and actions may include researching their Web sites, buying their products to assess their quality, and watching for employment ads to determine the type of employees they are hiring. 82) Performing competitive intelligence on rivals' strategies and actions does not mean that entrepreneurs.
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  61) Innovation must be a constant process because most ideas do not work and most innovations fail. 62) For every 3,000 new product ideas, four make it to the development stage, two are actually launched, and only one becomes successful in the market. 63) Although creativity sometimes involves generating something from nothing,.
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  101) In a business plan, both company goals and objectives should relate to the company's mission. 102) Objectives are short-term, specific targets that the small company plans to accomplish. 103) To be meaningful, an objective must include a time frame for achievement. 104) The business strategy section of the business plan addresses the.
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  111) Defining the company's target market and its buying potential is one of the most important and most challenging parts of building a business plan. 112) Identifying a specific target market is not an essential part of creating a solid business plan for a small company. 113) The wise entrepreneur will indicate.
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  121) An entrepreneur should prepare a single set of "most likely" financial forecasts for one year into the future as part of the business plan. 122) Essential pieces of information for potential lenders and investors include the assumptions the entrepreneur uses to derive the financial forecasts and projections in the business.
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  81) An S corporation maintains the advantages of the corporate form of ownership while having the ability to be taxed as a partnership. 82) An S corporation can issue both voting and nonvoting common stock to its shareholders. 83) One disadvantage of an S corporation is that the cost of many benefits-insurance,.
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  101) To be successful, a differentiation strategy must create the perception of value in the customer's eyes. 102) The key to a successful differentiation strategy is to build it on a core competency, something the company is uniquely good at doing in comparison to its competitors. 103) A differentiation strategy frequently allows.
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  71) Weaknesses are negative external forces that inhibit the firm's ability to achieve its mission, goals, and objectives. 72) After a company's strengths and weaknesses are assessed, the strategic planning process should identify opportunities and threats facing the company and should isolate the key factors for success in business. 73) Threats are.
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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.
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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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  31) The ability to see the similarities and the connections among various data and events is called: A) convergent thinking. B) divergent thinking. C) transformational thinking. D) illumination. 32) The ability to see the differences among various data and events is called: A) convergent thinking. B) divergent thinking. C) transformational thinking. D) illumination. 33) ________ thinking is the ability to.
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  41) Skatell's, a small jewelry store with three locations, designs and manufactures much of its own jewelry while its competitors (many of them large department stores) sell standard, "off-the-shelf" jewelry. As a result, Skatell's has developed a loyal customer base of people who seek unique pieces of jewelry. Skatell's reputation.
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  31) ________ are the broad, long-range attributes the small business seeks to accomplish; ________ are the more specific targets for performance. A) Goals; objectives B) Goals; strategies C) Objectives; goals D) Strategies; goals 32) Which of the following is not a characteristic of a well-written objective? A) Realistic, yet challenging B) Measurable C) General D) Timely 33) The focal point.
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  21) Which of the following is not one of the ways entrepreneurs can stimulate their own creativity and encourage it among their workers? A) Provide creativity training. B) Encourage curiosity. C) View challenges as problems. D) Develop a corporate culture that both fosters and rewards creativity. 22) Employees must be given the tools and resources.
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  147) The marketing strategy section is a vital part of any business plan. What issues should it address? 148) The financial plan within a business plan is of interest to potential lenders and investors. Explain the contents of this section and describe what potential lenders and investors look for. 149) When making.
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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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  21) Which of the following is true about the information-gathering process in competitive analysis? A) It is an expensive process which only large companies can afford. B) It can be relatively inexpensive and easy for the small business owner to conduct. C) It is a process closely regulated by various federal laws which.
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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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  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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  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 assesses industry attractiveness by surveying these five factors: A) potential entrants, suppliers, buyers, substitutes, and rivalry among.
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  41) Mind-mapping is a useful tool for jump-starting creativity. It includes all of the following except: A) sketching a picture to symbolize the problem or area of focus in the center of a sheet of paper. B) writing down every idea that comes into your mind, connecting each idea to the central.
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  150) What tips would you offer an entrepreneur who is scheduled to present her business plan to a group of potential lenders and investors in one week? 151) Select one of the following "business plan mistakes" and discuss three techniques that may help avoid this potentially fatal error. 1.Failure to explain.
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  120) 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 its pitfalls. 121) Assume you own a small camera shop that sells and repairs cameras and equipment. Discuss some of the methods you.
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  104) Compare and contrast the following forms of ownership: a corporation, an S corporation, and a limited liability company. 105) Should Duke incorporate or should he remain a proprietorship? Why? 106) Would you recommend Duke establish an S corporation? What conditions would he have to meet? 107) Would a limited liability corporation be.
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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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  117) What is strategic management? What role does a strategic plan play in a small company? 118) Assume you own a small print shop. Who are your competitors and why is it important for you to monitor your competitors' activities? Describe at least five techniques you might use to monitor competitors'.
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  131) The majority of loans banks make to small business startups are unsecured loans. 132) The most common reasons banks give for rejecting small business loan applications are undercapitalization and too much debt. 133) Cash flow projections are not an essential part of a business plan as long as the entrepreneur provides.
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  91) Setting seemingly impossible objectives, those outside of the likely reach of employees, helps managers to create and maintain a high motivation level. 92) "Increasing our market share from 8 percent to 10 percent by the end of the current fiscal year" is a good example of an effective objective. 93) Objectives.
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  125) Why is it important for an entrepreneur to use techniques like mind-mapping, which uses both sides of the brain? 126) List the steps an entrepreneur should follow in order to enhance his/her chances of receiving a patent. 127) To protect their innovative process for manufacturing computer components from unauthorized use, which.
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  98) John and Bill are considering starting a partnership. Why is it important for them to develop a formal partnership agreement? List at least ten of the provisions their partnership agreement should include. 99) Outline the incorporation process. 100) What is a corporation? Explain the advantages and the disadvantages of a corporation.     .
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  11) In a partnership, the ________ partner(s) has (have) unlimited liability for the partnership's debts. A) limited B) dormant C) nominal D) general 12) In a general partnership: A) each partner is held responsible for an agreement/decision made by any one of the partners. B) partners can be held responsible only for decisions they make personally. C) no.
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  51) In order for the control process to work, the business owner must: A) make as few changes and modifications in the operational plans as possible. B) concentrate on competitive information. C) identify and track key performance indicators. D) maintain control and delegate as little authority and responsibility as possible. 52) Which of the following.
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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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