Q&A Hero

Q: Which of the following is true of the eBay website? A. The eBay method of auctioning means one pays a fee for posting his or her product and a sales fee based on the final bid price when the item sells. B. Most online transactions use a credit card or an online payment system like PayMate, which is a division of eBay. C. eBay does not allow buyers and sellers any anonymity. D. On eBay, one can list a single item for sale only by creating a website to support his or her effort.

Q: An auction in which the low bid gets the business or wins is known as a _____ auction. A. reserve B. buyout C. forward D. reverse

Q: _____ refers to a fee the service levels on a person or a firm for any variety of problems related to the sale. A. Payback B. Overhead cost C. Chargeback D. Optional cost

Q: Which of the following is an example of a search engine? A. AOL B. Facebook C. LinkedIn D. MySpace

Q: Smith & Roden Enterprises (SRE), a law firm, paid a leading search engine to put their company's website at the top of the search engine's search list. This form of advertising used by SRE for promotion of their firm is known as _____. A. sponsored link B. embedded placement C. trackback submitter D. benchmarking

Q: _____ is a general approach to website design intended to result in the site being displayed toward the beginning of a search engine's listing for that term. A. Sponsored link B. Embedded placement C. Trackback submitter D. Search engine optimization

Q: A listed, live connection to a different website, which in turn displays a similar link to the first website is called a(n): A. sponsored link. B. reciprocal link. C. back link. D. incoming link.

Q: Cathy has created a website for her shop of homemade chocolates and scented candles. Apart from traditional retailing, she sends e-mails to the people in her neighborhood. She also informs customers about various promotional offers through pamphlets. Which of the following techniques best describes Cathy's overall marketing method? A. Embedded marketing B. Digital marketing C. Multichannel marketing D. Word-of-mouth marketing

Q: Which of the following is true about RSS feeds? A. RSS feeds are used by all websites on the Internet to push content out to customers. B. RSS feeds sends whatever web material is specified to subscribers to that feed. C. RSS stands for "really simple sequence." D. RSS feeds can be read in many browsers but not with special readers.

Q: A web page in which entries are posted in reverse chronological order is a known as a: A. blog. B. variance. C. search engine. D. push service.

Q: Which of the following is true about a hosting package? A. It should include at least 1 terabyte of traffic a month for an informational site. B. It should give at least five web pages of space to tell a story. C. It should include at least two e-mail accounts using ones domain name. D. It should include an online website editor so one can make changes to his or her site without buying web-authoring software.

Q: A(n) _____ refers to a private individual or household that is the end-user of a product or service. A. producer B. intermediary C. consumer D. beneficiary

Q: Which of the following is true about business-to-business (B2B) transactions? A. For most people, the B2B market is visible and overexposed. B. An example of a B2B transaction would be an individual buying a cell phone. C. B2B involves electronically-facilitated transactions between consumers through a third party. D. B2B e-commerce is larger than B2C e-commerce.

Q: In _____ sales, one firm sells to another firm. A. business-to-business (B2B) B. business-to-consumer (B2C) C. consumer-to-consumer (C2C) D. business-to-Internet (B2I)

Q: When an individual buys products like shoes, music, or cell phones online, it is referred to as _____ type of e-commerce. A. business-to-business (B2B) B. business-to-consumer (B2C) C. consumer-to-consumer (C2C) D. business-to-Internet (B2I)

Q: An Internet site designed to introduce and explain a business to others is known as a(n): A. e-commerce website. B. portal website. C. advocacy website. D. informational website.

Q: Which of the following is an example of e-commerce? A. Julia bought handicraft from a local market. B. Tabatha bought a cell phone in an exchange offer at an exhibition. C. Arthur bought a pair of jeans from the store next to his house. D. Christopher got shoes delivered at his home after he ordered for it online.

Q: A(n) _____ is a permission from a government organization to act differently than what the laws state. A. covenant B. easement C. variance D. business pass

Q: The limitations imposed on a business's property by neighborhood groups are referred to as: A. easements. B. covenants. C. volatilities. D. aggrandizements.

Q: Government specifications for acceptable use of land and buildings in particular areas are called: A. licensing laws. B. public utility laws. C. property laws. D. zoning laws.

Q: Which of the following is the greatest problem faced by home-based entrepreneurs? A. Zoning challenges B. Gaining customers C. Insurance problems D. Delivering work

Q: All of the following are reasons for the large numbers of home-based businesses in the United States EXCEPT that: A. the idea that a customer knows where the entrepreneur lives can be a point in favor of trusting in the potential permanence of the firm. B. it is inexpensive, since the owner's residence is his or her office. C. they generally give customers the strongest sense of legitimacy. D. one can get their business going where he or she lives.

Q: Which of the following is true with regard to home-based businesses in the United States? A. Home-based businesses are specific only to making furniture, toys, clothing, or food. B. Home-based businesses give U.S. customers the strongest sense of legitimacy. C. Home-based businesses in the United States represent only 5 percent of all firms. D. Home-based businesses are inexpensive and quick to start.

Q: _____ refers to the impression of a long-term continuity a business gives others. A. Intermittence B. Variance C. Pass D. Permanence

Q: All of the following are situations in which it might make better sense to undertake a part-time business EXCEPT: A. when someone is new to business and needs to gain basic experience. B. when someone lacks resources to pursue a full-scale business. C. when there is a narrow window of opportunity. D. when there is too much competition.

Q: Which of the following situations indicates that it makes better sense to first undertake a part-time business? A. Byron has a full-time business plan. B. Jamie wants to start a franchise for an international brand. C. Cathy has funds to start her own music school. D. Damon wants to gain experience in the advertising industry.

Q: For new entrepreneurs, which of the following would be a good reason to undertake a part-time business first before a full-time one? A. To buy an existing business B. To gain basic experience C. To open a franchise D. To increase competition in a specific industry

Q: Andrew initially worked with a travel website for few months and then became self-employed by starting a martial arts school, where he taught karate to teenagers. After an year, he closed the school and joined an advertising firm. After two years, he quit the advertising firm and became self-employed as a freelance music composer. Which of the following terms indicates the changes in Andrew's employment structure? A. Volatility B. Adverse possession C. Bootstrapping D. Easement

Q: The frequency of business starts and stops is referred to as: A. volatility. B. aggrandizing. C. bootstrapping. D. adaptability.

Q: Which of the following is a reason why more new businesses start on a part-time basis? A. The cost of entry and exit is low. B. There is lack of volatility. C. There is a broad window of opportunity. D. The part-time workforce is very small.

Q: Which of the following is true about part-time self-employment? A. It is only a minor portion of all current entrepreneurship in the United States. B. There is no volatility in part-time self-employment. C. It accounts for only 10 percent of small businesses in the United States. D. Most entrepreneurs start out working part time on their new business.

Q: Which of the following requires a full-time approach to self-employment? A. Free lancing B. Stand retailing C. Franchising D. Interning

Q: Which of the following is an example of full-time self-employment? A. Angela, who works as a columnist in a local newspaper for 30 hours a week B. Brandon, who works as an intern in a law firm for less than 35 hours a week C. Peggy, who has a business of personalized gifts, works for a minimum of 40 hours a week D. Joey, who is a food critic, works only 14 hours a week

Q: _____ comprises of working for self for more than 35 hours a week. A. Franchising B. Full-time self-employment C. Aggrandizing D. Part-time self-employment

Q: Which of the following is an example of part-time self-employment? A. Tabatha, who works from home for a fashion website for a minimum of 40 hours a week B. Raul, who works as an intern in a law firm for more than 35 hours a week C. Dorothy, who works in her small bakery for less than 30 hours a week D. Joshua, who teaches piano to children for 40 hours a week

Q: _____ refers to working for self for 35 or fewer hours a week. A. Franchising B. Full-time self-employment C. Aggrandizing D. Part-time self-employment

Q: One of the ways to determine the financial situation of a business is by crafting a business plan.

Q: In deciding whether to make the move from part-time to full time entrepreneurship, the key question is usually government regulations.

Q: Aggrandizing refers to taking business away from your employer.

Q: Cannibalizing occurs when people do work for their part-time business while they are at their full-time job, blurring the boundary between them.

Q: Moonlighting refers to working on one's own part-time job after one's regular job.

Q: One technique to making bootstrapping work is leveraging low costs with free expertise.

Q: Outsourcing refers to the assignment of work to others over whom one has power.

Q: Pricing is not seen as a challenge by part-time businesses.

Q: There are two key groups outside one's business with which one must dealcustomers and investors.

Q: The majority of part-time businesses are based in the home.

Q: The advantage of consignment approaches is that they permit full-time sales with only a part-time involvement from the owner.

Q: Intellectual property refers to original works like inventions, visual and performing art works, books, and computer programs.

Q: Primary disadvantages of stand retailing are that it requires a significant amount of capital and time investment.

Q: An advantage of home businesses is the highly variable income that it produces.

Q: Most small businesseseven part-time onesneed to have a website regardless of whether or not they use it for actual sales.

Q: Covenants are government specifications for acceptable use of land and buildings in particular areas.

Q: The more time and energy one spends preparing for a small-scale part-time business, the longer it takes to make a profit.

Q: When one is new to business and needs to gain basic experience, it makes better sense to first undertake a part-time business.

Q: Most entrepreneurs start out working part time on their new business.

Q: Part-time self-employment refers to working for self for 50 or fewer hours a week.

Q: Elucidate the relationship between innovation and entrepreneurship.

Q: What is a pilot test?

Q: Define feasibility. What are the major sections of a feasibility study?

Q: Compare and contrast an imitative strategy with an incremental strategy.

Q: What are the major pitfalls that business owners can become victims to when trying to become more innovative?

Q: How can a small business owner get into an innovative frame of mind? Explain.

Q: Describe the SCAMPER tool. How does it help entrepreneurs identify new opportunities?

Q: How can business ideas be screened for their viability? A popular approach to organizing an opportunity screen comes from two collegiate idea competitions: Idea To Product (I2P) and Invention To Venture (I2V). A typical I2P analysis consists of a one-page response to seven questionstwo about the product, four about the market, and one about intellectual property protection: 1. What is the product or idea? 2. How is your product or idea better? 3. How would you define the best initial set of customers? 4. Why will they buy it? 5. Describe how you create value for your customers. 6. What is the market and its size? 7. Can you develop IP protection for your idea? In addition to an I2P analysis, there are still three additional questions entrepreneurs should consider to complete an initial idea screening. They focus on people, resources, and profits: 8. Who are the people behind the idea? 9. What resources are needed to take the idea and sell it to the customer? 10. Can the idea generate sufficient profit?

Q: What are the different sources of ideas for new businesses? Ideas for new businesses come from a great variety of sources. A person who desires to start a business may begin searching for opportunities that exist in the marketplace, perhaps as a way to use skills and knowledge that he or she has acquired in college or in work experience. Regardless of whether the idea came first or the decision to start a business came first, the factors that lead small business owners to their business idea are: 1. Work experience: Many successful business owners spent years working for a company and gained valuable experience about how things might be done differently. Sometimes the idea grows out of listening to customer complaints. Entrepreneurs use their own work and personal experiences to think of ideas for doing things differently. Sometimes the best business ideas come from their own frustration or from not finding exactly what they are looking for as a consumer. 2. A similar business: Even if entrepreneurs do not have years of work experience in an industry, they might see a business in an area that intrigues them because they like certain products, or they learn that there is a growing market for this business and they think of a way to expand on the opportunity. 3. Hobby or personal interest: Many people find a way to turn their hobbies into successful businesses.

Q: Define opportunity recognition and entrepreneurial alertness.

Q: The strategy for using the pilot test approach is: A. to show potential partners that the idea can generate sales. B. to generate IP protection for the idea. C. to check the number of visitors to the Web site. D. to circumvent government regulations.

Q: The measure of how many visitors to a Web site actually make a purchase is known as: A. illumination rate. B. frame rate. C. conversion rate. D. pilot test.

Q: _____ refers to a preliminary run of a business, sales effort, program, or Web site with the goal of assessing how well the overall approach works and what problems it might have. A. Conversion rate B. Pilot test C. Incubation period D. Commercialization

Q: The future action plan component of the feasibility study includes which of the following elements? A. Profitability B. The competition C. Legal restrictions and rights D. Writing a business plan

Q: The industry and market component of the feasibility study typically includes which of the following components? A. Sales revenue forecast B. The competition C. Writing a business plan D. Writing a mission statement

Q: The product/service component of the feasibility study typically includes which of the following aspects? A. Stage of development B. Competition C. Market penetration D. Cost forecast

Q: The business idea component of the feasibility study includes which of the following aspects? A. Stage of development B. Competition C. Market penetration D. Description of the entrepreneurs

Q: Which of the following is a traditional problem facing new ideas? A. The product or service appeals to a market larger than the entrepreneur expected. B. The idea cannot be economically made into a product or service. C. There are too many people involved in making the idea into a business. D. The local/state federal regulations are too strict to follow.

Q: The goal of a feasibility study is: A. to create additional value for customers through great products or services. B. to create outlets for employees to bring out new ideas. C. to assess if a business idea can be profitably brought to market. D. to assess how well a preliminary run of a business works and what problems it might have.

Q: According the study of what matters most to entrepreneurs and their businesses, start-up entrepreneurs feel most confident about which of the following aspects? A. Complying with local/state/federal regulations B. Obtaining start-up capital C. Obtaining a bank's help D. Attracting employees

Q: _____ means the extent to which an idea is viable and realistic, and the extent to which you are aware of internal and external forces that could affect your business. A. Flexibility B. Consistency C. Feasibility D. Innovation

Q: Taking an idea and offering a way to do something slightly better than it is done presently refers to a(n): A. imitative strategy. B. incremental strategy. C. status quo strategy. D. innovative strategy.

Q: _____ requires an entrepreneur to assess whether the situation faced is one that is the same as it has been traditionally or if it is changing. A. Business process modeling B. Opportunity identification process C. Pilot test D. Radical innovation strategy

Q: An overall strategic approach in which the entrepreneur does more or less what others are already doing refers to a(n): A. imitative strategy. B. innovative strategy. C. incremental strategy. D. radical innovation strategy.