Small Business Management: Launching & Growing Entrepreneurial Ventures 19th Edition by Longenecker
23. Which of the following has helped level the playing field for small firms competing with larger companies?
a. Quality performance
b. Customer focus
c. Financial services
d. Innovation
ANSWER: d
24. A paradigm shift is
a. when you move capital.
b. a change in opportunity.
c. a change in how we fundamentally see a situation.
d. a reorganization of a company.
ANSWER: c
25. Adam has contracted with about a third of the dozens of artisans in his town in the mountains of South Carolina. His reputation has grown; he now believes the sky's the limit for this website design and maintenance business. What kind of small business does Adam have?
a. Lifestyle business
b. Microbusiness
c. High-potential venture
d. Attractive small firm
ANSWER: c
26. Small businesses that have great prospects for growth are called
a. gorillas.
b. antelopes.
c. jaguars.
d. gazelles.
ANSWER: d
27. Which of the following is NOT one of the four stages of the entrepreneurial process?
a. Harvesting the business
b. Analyzing the industry
c. Identifying an attractive opportunity
d. Acquiring the critical resources needed for growing the business
ANSWER: b
28. A firm that provides substantial profits to its owner is called a(n)
a. franchise.
b. high-potential venture.
c. attractive small firm.
d. lifestyle business.
ANSWER: c
29. Bailey works as a self-employed golf pro at the local country club, allowing him to spend more time with his young family. He'll never earn much, but he and his family are happy. Which type of small business does Bailey have?
a. Gazelle
b. Attractive small firm
c. High-potential venture
d. Lifestyle business
ANSWER: d
30. Carmen operates a franchise tanning salon. Negative publicity about the effects of tanning has diminished her ability to grow the business. Carmen has a(n)
a. high-potential venture.
b. attractive small firm.
c. gazelle.
d. microbusiness.
ANSWER: d
31. 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. All of these are correct.
ANSWER: b
32. Using the criteria in the text to define a small business, Table Occasions will NOT be considered a small business once the company
a. is financed by three individuals.
b. has sales greater than 20% of other firms in the industry.
c. is operating in numerous states.
d. has 50 employees.
ANSWER: c
33. Devon believes now is the time to launch his welding business because the only competitor has just announced his retirement. Devon is in which state of entrepreneurship?
a. Identifying an attractive opportunity
b. Executing the plan
c. Acquiring the critical resources needed for growing the business
d. Harvesting the business
ANSWER: a
34. In a small business, there is no more important issue than
a. making a profit.
b. efficiently managing resources.
c. exploiting opportunities.
d. scaling the business.
ANSWER: b
35. Francesca convinced her aunt to invest in her day spa in exchange for a percentage of the profits. Francesca is
a. taking advantage of her aunt.
b. capitalizing on an opportunity.
c. conserving her own resources.
d. bootstrapping.
ANSWER: d
36. Geraldo often would rather go fishing than work his business. According to Stephen Spinelli and Robert Adams, which entrepreneurial characteristics does Geraldo lack?
a. Commitment
b. Courage
c. Creativity