Small Business Management: Launching & Growing Entrepreneurial Ventures 19th Edition by Longenecker

 a. the end justifies the means.
 b. how you achieve is as important as what you achieve.
 c. the customer is always right.
 d. good guys finish last.
 
ANSWER:  b
 
76. The material assets and intangible qualities passed on to both heirs and society make up an entrepreneur's
 a. mission.
 b. personality.
 c. history.
 d. legacy.
 
ANSWER:  d
 
77. Discuss similarities and differences of entrepreneurs and small business owners.
ANSWER:  An entrepreneur pursues opportunities in either a new or existing business to create value, while assuming both the risks and the rewards for his or her efforts. Depending on the size of his/her business, an entrepreneur may also be a small business owner in that a generalized definition of a small business is one with geographically localized operations, fewer than 100 employees, and equity financing provided by no more than a few individuals. With proper application of entrepreneurial principles, a small business owner may actually grow his or her company enough to be larger than this definition.
 
78. Explain the nature of and differences among microbusinesses, attractive small firms, and high-potential ventures.
ANSWER:  Microbusinesses are small firms that provide minimal profits to their owners. Attractive small firms offer substantial financial rewards for their owners, where profits may grow into the millions or even tens of millions of dollars. They also can provide rewarding careers for employees. High-potential ventures (also called gazelles) are businesses with phenomenal prospects for growth. These firms are usually high tech, with the potential to change how people live.
 
79. List and briefly describe the four stages of the entrepreneurial process.  
ANSWER:  From beginning to end, entrepreneurship involves four stages.
Identifying an attractive opportunity. An opportunity is more than merely having a good idea. Real opportunities should be market driven, offering customers a product or service that is so appealing that they are willing to let go of their hard-earned money to buy it.
Acquiring the critical resources needed for growing the business. In a small business, there is no more important issue than efficiently managing resources. Thus, learning how to think about resources may mean the difference between success and failure. When entrepreneurs think about resources, they should not just think about money. It is important to also understand the following:
Entrepreneurs find ways to do more with less when it comes to resources.
Critical resources include more than money, such as the right management team, the right partners, and access to the right assets, such as inventory and equipment.
Entrepreneurs sometimes must bootstrap, such as resorting to bartering, generating income from other sources, or using a personal credit card.
Executing the plan. The entrepreneur must now scale the business to make it economically attractive. Among other things, the entrepreneur will need to know how the firm will make money, support growth, and create barriers to entry to keep the competition away.
Harvesting the business. At some point, an entrepreneur must think about exiting the business to capture the value that he or she has created over the years. This can happen by passing the business on to the next generation in the family, by selling the company to other investors, or in a few rare instances, by issuing the company's stock to the public.   
 
80. List and briefly explain the seven "desirable and acquirable attitudes and behaviors" found in Spinelli's and Adams' research on entrepreneurial characteristics.
ANSWER:  Leadership abilities—The ability to self-motivate and team-build with a focus on honesty in business relationships.
Opportunity obsession—A keen awareness of the market and customer needs.
Commitment and determination—Tenacity, decisiveness, and persistence in problem solving.
Motivation to excel—Goal-orientation and awareness of weaknesses.
Courage—Strong moral convictions and a willingness to experiment.
Tolerance of risk, ambiguity, and uncertainty—The ability to take risks and to minimize them, as well as to tolerate uncertainty.
Creativity, self-reliance, and adaptability—Open-mindedness, resilience, and a quickness to learn.  
 
81. Identify the six attitudes and behaviors entrepreneurs should avoid. For each, explain the likely result of engaging in that behavior or holding that attitude. (Simply saying "the business will likely fail" is insufficient.)