Q&A Hero

Q: To help and prepare small businesses to handle crisis they have been recommended to avoid: A. planning to stay in business. B. protecting their investment. C. talking about the crisis to their people. D. planning only after the crisis has occurred.

Q: Roller-Tell Inc., a major supplier of components to the automobile industry, has recently confronted a crisis as one of its manufacturing units has been forcefully shut down by the local union. As a result, the company has been unable to meet the customer demands appropriately. As the owner of the business, the most appropriate way for the firm to handle this crisis is to: A. delegate as much as possible of the crisis management to the employees. B. make the process of dealing with the problem as open as possible. C. keep employees, customers, and suppliers isolated from the crisis. D. avoid admitting that there is any issue hampering production.

Q: Which of the following is best avoided in handling a business crisis? A. Appointing an outside professional, such as a lawyer, as a firm's spokesperson B. Communicating facts to the employees and customers C. Mixing crisis management with the everyday management of a firm D. Admitting that the company is in trouble as quickly as possible

Q: Which of the following statements is true about electronic social networks? A. They are expensive because of their membership costs. B. They offer better personal connections than face-to-face networks. C. They are fast and easy to develop. D. They offer better local connections than face-to-face networks.

Q: Interacting with others in order to build relationships useful to a business refers to _____. A. networking B. moonlighting C. brainstorming D. bootstrapping

Q: Sylvia had helped Jonathan, one of her previous subordinates, in establishing his business by referring him to an important venture capitalist. As an appreciation of her help, Jonathan has now agreed to hire and personally mentor her son as a trainee in his company. Both Sylvia and Jonathan are typically exhibiting _____. A. collectivism B. bicameralism C. mutuality D. autocracy

Q: Ivan has recently started his new business venture, and he has been busy visiting trade exhibitions, business organizations, electronic business forums, and his previous colleagues in order to build contacts. This will help him use their expertise to the benefit of his business. Ivan is typically working on building a _____. A. social network B. concern C. focus group D. global common

Q: Which of the following statements is true of legitimacy indicators? A. A small business cannot survive without incorporating all the 30 characteristics of the three types of legitimacy indicators. B. Part of legitimacy and building trust for a firm comes from changing the legitimacy characteristics frequently. C. It is easy for businesses to incorporate all the elements of the different types of legitimacy indicators. D. Repeating one legitimacy characteristic daily does more to build social capital than changing the legitimacy characteristics.

Q: Which of the following is the most appropriate approach to building organization-based legitimacy? A. Creating a company's own code of ethics B. Sharing the business phone line with home C. Operating the business on weekends only D. Personally designing Web sites instead of using professional help

Q: Which of the following legal forms of business is typically considered the least legitimate? A. Corporation B. Limited liability company C. Sole proprietorship D. Partnership

Q: Which of the following will cause the maximum damage to an organization's legitimacy? A. Promoting knowledge about the organization to customers B. Having people in the organization that customers know and respect C. Partnering with reputed businesses D. Directing customer calls to answering machine or voice mail

Q: Erion Inc. is an e-commerce company that sells its food products under the brand name Heal Meal. Its business partners have planned to enter into a strategic alliance with a well-reputed retailer in the Asian market in order to expand its operations to the Asian continent. Which of the following is a reason for the company having a lack of organization-based legitimacy in the Asian market? A. The absence of a physical location to conduct business B. It's partnership with another well-reputed business C. The use of a brand name to sell products D. Its legal form as a partnership firm

Q: A firm can best increase its product-based legitimacy by: A. using voice mail or answering machine to provide customer service. B. avoiding a physical location to conduct the business. C. selling the product under its generic name instead of a brand name. D. placing interviews, articles, or columns in media about the product.

Q: Explain the challenges faced by second career entrepreneurs?

Q: Who are referred to as the second career entrepreneurs?

Q: How can the problems facing women-owned and minority-owned firms be solved?

Q: Describe the challenges faced by women and minorities in small businesses.

Q: What are the challenges faced by team entrepreneurs?

Q: (p. 39-40) Discuss the challenge of succession faced by family businesses.

Q: Outline methods or techniques for time management. The organizing process to help make the most efficient use of the day is known as time management. There are a collection of techniques for time management, which can help meet the challenges of schedule overload. Consider these basic methods: ListWhether you use a pad of paper, a specialized form like a Franklin Planner, a PDA, or Microsoft Outlook's Task function, the key to staying on top of your responsibilities is to list them as soon as you get them. Then as you finish them, you can enjoy crossing them off the list. 123 PrioritizeAs you look at your list, prioritize your tasks based on their importance to your business and their due date. The most important tasks due soonest get a priority of 1. Tasks with lesser importance or a longer time to completion get ranked 2, and your "back burner" concerns get ranked 3. If there are tasks (of any level) that can be lumped together, so much the better. How do you decide importance? If the task will not help your business or family, it is probably not a priority 1 task.

Q: What is the difference between key business functions and industry-specific knowledge?

Q: What is the difference between critical-point planners and reactive planners?

Q: Define the five Ps of entrepreneurial behavior.

Q: Which of the following is one of the prime challenges faced by most second career entrepreneurs? A. Keeping personal finances out of the business B. Avoiding overconfidence C. Lacking resources D. Deciding whether to return to work

Q: Which of the following is an example of a second career entrepreneur? A. Cynthia, a 24-year-old, starting a consultancy business after graduating from college. B. Mark, a 30-year-old, starting a new business venture in stock trading after the failure of his previous business in real estate. C. Ursula, a 60-year-old, starting a business in shrimp trading after being retired for 5 years. D. Timothy, a 62-year-old, joining a real estate agency as a sales representative, after being retied for 4 years.

Q: _____ entrepreneurs are people who begin their business after having retired or resigned from work in corporations at or after the age of 50. A. Occasional B. Helical C. Late career D. Veteran

Q: Which of the following statements about certification with regard to women- or minority-owned small business is true? A. Most corporate certification programs require a business to be in operation at least five years. B. Certification is for every women or minority-owned small business. C. For those businesses that qualify, certification provides a ready means of access to opportunity and to networks of businesses and government agencies. D. For corporations, certification is handled by organizations that are affiliated with the government or big business.

Q: An examination based acknowledgement that the firm is owned and operated as specified is known as _____. A. performance analysis B. certification C. multi source assessment D. homologation

Q: Government contracting funds which are earmarked for particular kinds of firms, such as small businesses, minority-owned firms, women-owned firms, and the like, are known as _____. A. collective investment scheme B. cooperative fund C. certified items D. set-asides

Q: Access problems for women- and minority-owned small businesses crop up most often as: A. differences in labeling. B. discrimination in financing. C. problems involved in business contacts. D. the presence and absence of certain skills.

Q: Identify the simplest form of discrimination with regard to women and minority entrepreneurs within the U.S. population. A. Certification B. Role conflict C. Access D. Collusion

Q: The challenge of _____ refers to when woman or minority-owned businesses are simply excluded from the opportunities offered to firms owned by white males. A. consistency B. access C. flexibility D. mutuality

Q: The two fastest growing minority groups that represent the largest segments of minority business owners are: A. Hispanics and African Americans. B. Hispanics and Pacific Islanders. C. Asians and African Americans. D. Asians and Pacific Islanders.

Q: Which of the following is true with regard to minorities in small businesses? A. Minority-owned firms have not grown much in recent years and are a slow growing sector. B. The establishment of both public and private funding and networking initiatives has helped to level the business playing field for minority entrepreneurs. C. There is a phenomenal decline in the number of minority entrepreneurs despite the growth of racial and ethnic groups within the U.S. population. D. Minority entrepreneurs do not face the challenge of access anymore.

Q: Qualification for _____ requires certification as a business owned and operated by a woman or a minority. A. set-asides B. codicils C. product liability insurance D. professional liability insurance

Q: Which of the following is true with regard to women in small businesses? A. Women-owned businesses are the slowest growing sector of all U.S. businesses. B. Women-owned firms accounted for 25 percent of small business revenue nationally. C. Women prefer less-risky firms, which also tend to be firms with lower returns. D. Women prefer more high-tech firms, as well as firms where technology is central to the business than men.

Q: Which of the following statements about entrepreneurial teams is true? A. Most entrepreneurial teams are family related. B. The majority of new businesses have an entrepreneurial team of a minimum five co-owners. C. The trend is toward even more businesses being developed by a solo entrepreneur. D. Only 10 percent of teams are spouses or life partners working together.

Q: Which of the following organizations tracks experts in family business? A. Association for Family Business Foundations B. Association for Small Business Entrepreneurs C. Family Business Management Institute D. Family Firm Institute

Q: Which of the following statements is true about a family council? A. It helps to maximize communication in the succession process of family businesses. B. Its main function is complete the key business activities of a family business. C. It includes family members with immediate interests in the business and a significant number of non-family members. D. It is not a good forum for grappling with issues like role expectations, commitment, and personal responsibility.

Q: ____ refers to the process of intergenerational transfer of business. A. Role conflict B. Succession C. Certification D. Access

Q: Only _____ of family-owned businesses survive beyond the first generation. A. three-quarters B. one-half C. one-fourth D. one-third

Q: The organizing process to help make the most efficient use of the day is known as _____. A. promotion focus B. competence C. certification D. time management

Q: Which of the following problems is closely related to role conflict? A. Resource shortage B. Lack of skills C. Shortage of time D. Perseverance

Q: Which of the following is the most effective approach for avoiding role conflict? A. Keep family issues out of the family business B. Keep separate rules for family members and employees C. Have constant role reversals D. Have decisions narrowed down for family members based on family necessities

Q: Which of the following best describes the problem that arises when people have multiple responsibilities and each makes different demands on them? A. Role conflict B. Succession issues C. Strategizing challenges D. Leadership constraints

Q: Which of the following challenges is typical to family businesses? A. Motivation and nepotism B. Role conflict and succession C. Succession and finances D. Leadership and finances

Q: Which of the following is true as an advantage of businesses run by a group of tight-knit family members? A. Succession issues don't crop up in family-owned businesses. B. Role conflicts never happen in family owned businesses. C. Board of members is not used in family-owned businesses. D. Communication-based integration is most effective in family-owned business.

Q: Which of the following is a major economic force, employing 58 percent of America's total workforce? A. Public companies B. Government enterprises C. Family businesses D. International assignments

Q: Which of the following comprises a family business? A. A firm in which two or more families own a stake in a company but with no authority for daily management B. A firm in which no family members are involved in the management of the business C. A firm in which two or more families are involved in the occasional management of the business D. A firm in which one family owns a majority stake

Q: Which of the following relates to the skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business? A. Determination competencies B. Basic business competencies C. Resource competencies D. Opportunity competencies

Q: Which of the following deals with the actual process of exploiting an opportunity for profit? A. Resource B. Exchange C. Intention D. Boundary

Q: Martin runs a successful house painting business. He runs his business out of his garage, which he got converted into an office space. Martin, who had previously worked as a house painter in another company had good know-how of how to run a house-painting business. After a storm destroyed public properties in his neighboring town, he contracted with the mayor of that town to fulfill any painting jobs required during the town's reconstruction. In order to meet this demand and expand business, he hired more house painters. According to the BRIE model, which of the following is an example of Martin's opportunity competency? A. Martin hiring more house painters to meet demand B. Martin contracting with the mayor to help paint during reconstruction C. Martin setting up the business's office in his garage D. Martin deciding to set up his own business after quitting his previous job

Q: Which of the following competencies requires the energy and focus needed to bring a business into existence? A. Determination competencies B. Resource competencies C. Opportunity competencies D. Basic business competencies

Q: The ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business such as time, information, location, financing, raw materials, and expertise is known as_____. A. basic business competencies B. resource competencies C. opportunity competencies D. determination competencies

Q: Certain businesses demand higher safety related rules. For example, window cleaners that specialize in high-rise buildings have certain rules and safety protocols. These specific rules would comprise the _____. A. specialized business professionalization B. infant-industry argument C. industry-specific knowledge D. key business functions

Q: Activities common to all businesses such as sales, operations (also called production), accounting, finance, and human resources are known as _____. A. key business functions B. competencies C. business accreditations D. business-related expertise

Q: Key business functions: A. are skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business. B. are activities that reflects a person's determination to start their business and make it a success. C. are certain fundamental activities that all businesses must perform. D. are business-related activities that are optional for the entrepreneur to perform.

Q: The competency suggested by _____ relates to the organizational and business processes of a firm. A. intention B. resource C. exchange D. boundary

Q: Getting the business organized and registered is an example of _____ competency. A. opportunity B. resource C. industry-specific D. boundary

Q: Competencies are defined as: A. forms of business-related expertise. B. forms of personal development model. C. different forms of self-assessment. D. different forms of personality theories.

Q: Which of the following is true with regard to minimalized business professionalization? A. The entrepreneur does nearly everything in the simplest way possible. B. The entrepreneur is passionate about one or two of the key business functions. C. The entrepreneur meets or exceeds the industry's standards. D. The entrepreneur brings the highest levels of trust among customers.

Q: A situation that occurs when the entrepreneur does nearly everything in the simplest way possible is known as _____. A. expert business professionalization B. specialized business professionalization C. minimalized business professionalization D. maximized business professionalization

Q: A situation that occurs when businesses have founders or owners who are passionate about one or two of the key business functions, such as sales, operations, accounting, finance, or human resources is known as _____. A. expert business professionalization B. specialized business professionalization C. minimized business professionalization D. maximized business professionalization

Q: Expert business professionalization is a situation that occurs: A. when only the most critical aspect of business is met. B. when most aspects of the business meet or exceed the industry's standards. C. when one or two aspects of the business are met. D. when none of the business can achieve the industry standard.

Q: A situation that occurs when all the major functions of a firm are conducted according to the standard business practices of its industry is known as _____. A. expert business professionalization B. specialized business professionalization C. minimized business professionalization D. maximized business professionalization

Q: Which of the following refers the three levels of professionalization? A. Low, medium, and high B. Company, industry, and global C. Personal, team, and organizational D. Expert, specialized, and minimalized

Q: A business action that has been widely adopted within an industry or occupation is known as _____. A. best business practice B. specialized business professionalization C. standard business practice D. expert professionalization

Q: The extent to which a firm meets or exceeds the standard business practices for its industry is known as _____. A. bootstrapping B. professionalization C. effectuation D. Perceived Organizational Support (POS)

Q: Which of the following kinds of planners generally tend do very poorly in business, even if they do manage to get their firms started? A. Comprehensive planners B. Habit-based planners C. Opportunistic planners D. Critical-point planners

Q: Which of the following planners do best in terms of getting a start-up launched, keeping it going, and making a living from it? A. Comprehensive planners B. Habit-based planners C. Opportunistic planners D. Reactive planners

Q: Which of the following characterizes a habit-based planner? A. They take a long-term view, develop long-range plans for all aspects of the business, are comfortable with planning, and act based on the plans they've developed. B. They plan around the most important aspect of the business first, act on it, and then consider if additional plans are needed. C. They are completely passive and generally wait for cues from the environment to determine what actions to take. D. They don't plan, and they don't tend to react to changes in their environments.

Q: Entrepreneurs who do not plan and prefer to let all actions be dictated by their routines are known as _____. A. habit-based planners B. critical-point planners C. reactive planners D. comprehensive planners

Q: Reactive planners: A. do not react to cues from the environment. B. take a long-term view and develop long-range plans for all aspects of the business. C. focus on short-term plans. D. have fixed goals dictating their efforts.

Q: _____ are completely passive, waiting for cues from the environment to determine what actions to take. A. Opportunistic planners B. Critical-point planners C. Comprehensive planners D. Reactive planners

Q: Which of the following would have a very short-term approach to planning? A. Individuals who look for opportunities to achieve their goal, even if the opportunity isn't the one related to their original goal. B. Individuals who develop long-range plans for all aspects of the business and act based on the plans they've developed. C. Individuals who plan around the most important aspect of the business first, act on it, and then consider if additional plans are needed. D. Individuals who are comfortable with planning and act based on the plans they have developed.

Q: Entrepreneurs who start with a goal instead of a plan and look for a chance to achieve it are known as _____. A. reactive planner B. critical-point planner C. comprehensive planner D. opportunistic planner

Q: Which among the following is a critical-point planner? A. Amanda does not have a very long-term approach to planning and she plans only for those business aspects that are of paramount importance. B. Andrew looks at all aspects of the business, from launch to the complete working of it. C. Cathy looks for a good chance to achieve her goal and acts according to a routine. D. Joshua acts on what he has been doing and does not believe in planning.

Q: Entrepreneurs who develop plans focused on the most important aspect of the business first are known as _____. A. critical-point planners B. opportunistic planners C. comprehensive planners D. reactive planners

Q: Christopher is a hard-working entrepreneur who looked into all the details of his small gaming software business. He focused on all aspects of the business from the initial launch, promotion, and marketing aspects to the final set up. He finds planning convenient and works according to a plan. Christopher is a(n) _____. A. opportunistic planner B. habit-driven planner C. reactive planner D. comprehensive planner

Q: Entrepreneurs who develop long-range plans for all aspects of the business are known as _____. A. critical-point planners B. opportunistic planners C. comprehensive planners D. reactive planners