Q&A Hero

Q: International joint ventures are decreasing in popularity.

Q: The most common type of joint venture is between two or more public sector companies.

Q: Idea lab is a combination of an incubator, a venture capitalist, and a business angel.

Q: The __________ strategy focuses on selling the firm's existing products to new groups of customers. A.penetration B.market development C.product development D.diversification

Q: The penetration growth strategy: A.focuses on developing new products for the existing market. B.relies on taking market share from competitors. C.expands the firm's product offering with complementary products. D.aims to take new products into new markets.

Q: The strategy for growth in which the entrepreneur encourages existing customers to buy more of the firm's current product is a: A.penetration strategy. B.product development strategy. C.market development strategy. D.diversification strategy.

Q: The Maxwell's company, PowerBar, was purchased by what company? A.Proctor and Gamble B.Nestle C.Heinz D.Pilsbury

Q: Entrepreneurs that have a high ability to institute professional management practices but have low growth aspirations have "little potential" for growth.

Q: Even though some entrepreneurs may way to grow they lack the ability to do so.

Q: Even if there is a belief that the pursuit of growth will improve firm performance and enhance personal wealth, some entrepreneurs will still avoid growing their business.

Q: Entrepreneurs who possess both the necessary abilities to make the transition to a more professional management approach and the aspiration to grow their businesses are the most likely to achieve firm growth.

Q: Most life-style entrepreneurs eagerly pursue firm growth.

Q: In order to better serve customers, all customer information should be stored in the memory of individual salespeople.

Q: The entrepreneur is required to withhold federal and state taxes for employees and then deposit payments monthly or quarterly.

Q: Financial reporting to shareholders, bankers, and other investors give the marketing cost for each product and highlight the performance of managers in controlling costs.

Q: In managing fixed assets the entrepreneur should buy, instead of lease, whenever possible.

Q: One advantage of leasing equipment is that lease payments represent an expense and can be used as a tax deduction.

Q: The grocery and pharmaceutical industries have developed a computerized system to link chain members together and manage demand, distribution, and marketing.

Q: Transport mode selection can be important in inventory management.

Q: Growing ventures tie up more cash in their inventory than in any other part of the business.

Q: When compared to the costs of carrying excess inventory, the cost of lost sales is insignificant and should be ignored.

Q: A cash sensitivity analysis is used to provide a pessimistic and an optimistic cash estimate.

Q: Even when cash flow problems are discovered, the pro forma budgeted amounts should never be changed.

Q: The principle of reanalysis requires the entrepreneur to categorize his or her tasks by their degree of importance and then to allocate time to tasks based on this categorization.

Q: The principle of prioritized planning requires the entrepreneur to categorize his or her tasks by their degree of importance and then to allocate time to tasks based on this categorization.

Q: The principle of teamwork states that an entrepreneur spends too much time with employees and should try to become less accessible to them in order to increase their efficiency.

Q: Developing standardized forms and procedures for recurring events would be an example of the principle of reanalysis.

Q: A recognition of the need to change personal attitudes and habits regarding the allocation of time is known as the principle of desire.

Q: The principle of reanalysis requires the entrepreneur to focus on the most important issues, even when under pressure.

Q: Effective time management can increase an entrepreneur's job satisfaction.

Q: Time management is the process of improving an individual's productivity through more efficient use of time.

Q: Most entrepreneurs could benefit from implementing time management techniques.

Q: To implement participative management the entrepreneur should have open communication with employees.

Q: If employees are involved in the decision-making process, they are more motivated to implement the decided course of action.

Q: Employee turnover for part-time workers is lower than that for full-time workers.

Q: Most new ventures need a human resource department from the first day of operations.

Q: If employees are spread too thin because of growth, the firm will face problems of employee morale and increased employee turn over.

Q: Many entrepreneurs find that as they grow they need to change their management style.

Q: To prevent pressures on the financial resources created by growth, the venture should avoid resource slack.

Q: As a firm grows, higher volume increases production efficiency and increases its bargaining power with suppliers.

Q: One of the most successful diversification strategies is to diversify into unrelated products or unrelated markets to spread the risk.

Q: When a retail tire store buys a tire wholesaler this is an example of horizontal integration.

Q: Forward integration occurs when the firm acquires one of its suppliers.

Q: Horizontal integration occurs at the same level of the value-added chain but simply involves a different, but complementary, value-added chain.

Q: When a manufacturer buys a chain of retail stores that carry its products, it is an example of backward integration.

Q: Forward integration is taking a step back on the value chain toward the raw materials.

Q: The value-added chain is usually available only to large national firms.

Q: If the existing product is being sold to teenagers in one country and new entry involves selling the existing product to teenagers in a new country then this represents a new product use.

Q: Product development strategies use customers' experiences to develop new products for existing customers.

Q: Market development strategies involve selling the firm's existing products to a new group of customers, such as a new geographic market.

Q: A product development strategy relies on taking market share from competitors.

Q: Using a penetration strategy, the entrepreneur attempts to encourage existing customers to buy more of the firm's current products.

Q: The source of knowledge about the unmet demand for an energy bar (PowerBar) came from extensive market research of athletes.

Q: Explain the 4 types of entrepreneurs and firm growth.

Q: Define and explain the principles of desire, effectiveness and analysis as they relate to time management.

Q: What benefits can an entrepreneur receive from better time management?

Q: What are the 4 main growth strategies discussed in the text?Briefly define each.

Q: Identify and describe the three major types of diversification growth strategies.

Q: Discuss the three types of market development strategies and give examples of each.

Q: Entrepreneurs in the _____________ quadrant of firm growth aspire to grow their businesses and possess the ability to do so.A.Constrained growthB.Unused potential for growthC.Actual growthD.Little potential

Q: Entrepreneurs in the _____________ quadrant of firm growth possess the abilities to grow but do not aspire to grow their businesses. A.Constrained growth B.Unused potential for growth C.Actual growth D.Little potential

Q: Entrepreneurs in the _____________ quadrant of firm growth aspire to grow their businesses but do not possess the ability to do so. A.Constrained growth B.Unused potential for growth C.Actual growth D.Little potential

Q: Entrepreneurs who have the necessary abilities for the transition to more professional management practices and the aspiration to grow their business:A.have little potential for firm growth.B.will achieve growth only if the entrepreneur replaces himself or herself with a professional manager.C.are the most likely to achieve growth.D.usually form life-style firms.

Q: The entrepreneur has which of the following responsibilities regarding taxes?A.Withhold federal and state taxes for employees.B.Pay state and federal unemployment taxes.C.File end-of-year tax returns.D.All of these.

Q: The most often used method of transporting goods is: A.air transport. B.truck and rail transport. C.barge transport. D.tanker transport.

Q: The computerized system developed by the grocery and pharmaceutical industry to link chain members is: A.Efficient Computer Response (ECR) B.Efficient Computer Distribution (ECD) C.Electronic Demand Distribution (EDD) D.Computerized Check Out Systems (CCOS)

Q: Inventory control: A.is not necessary for small firms. B.eliminates the need to carry inventory. C.balances the cost of carrying inventory with the cost of lost sales. D.requires a computerized inventory system.

Q: Conducting a(n) ____ on cash flow involves assigning a + or - probability to the estimated value. A.break even analysis B.audit C.distribution analysis D.sensitivity analysis

Q: An increase in supplier prices may require: A.raising the price of products/services. B.purchase of lesser inventory. C.an increase in the purchasing budget. D.reviewing all other expenses and perhaps institute tighter controls.

Q: Reviewing meetings to make sure they are being run effectively illustrates which of the following principles? A.Principle of desire B.Principle of reanalysis C.Principle of effectiveness D.Principle of prioritized planning

Q: Which principle states that the most important issues should be attended to during the time of day that an entrepreneur is most efficient? A.Principle of desire B.Principle of reanalysis C.Principle of effectiveness D.Principle of prioritized planning

Q: Which principle requires the entrepreneur to focus on the most important issues, even when under pressure? A.Principle of desire B.Principle of reanalysis C.Principle of effectiveness D.Principle of prioritized planning

Q: Acknowledgment that only a small amount of time is actually under one's control and that most of one's time is taken up by others is known as the: A.principle of desire. B.principle of teamwork. C.principle of analysis. D.principle of prioritized planning.

Q: The _______ requires that the entrepreneur recognize that he or she is a time waster, that time is an important resource, and that there is a need to change personal attitudes and habits regarding the allocation of time. A.principle of desire B.principle of effectiveness C.principle of analysis D.principle of prioritized planning

Q: Using a time sheet to record usage of time is part of the principle of: A.desire. B.effectiveness. C.prioritized planning. D.analysis.

Q: ________ is the process of improving an individual's productivity through more efficient use of time. A.Time management B.Delegation C.The principle of effectiveness D.The principle of prioritized planning

Q: Which of the following is not a benefit of time management?A.Improvement of esprit de corps.B.Decreased job satisfaction.C.Increased productivity.D.Less anxiety and tension.

Q: Creating a positive organization culture involves: A.not communicating all matters to key employees. B.being more involved in every aspect of the task, and avoiding delegation. C.establishing a "we" spirit, not a "me" spirit in meetings and memorandum. D.being conservative in the training process.

Q: Involving employees in the decision-making process is: A.a passive management style. B.a participative management style. C.an autocratic management style. D.impossible for small businesses.

Q: Using a large proportion of part-time workers: A.provides the firm with flexibility. B.makes building organizational culture easier. C.improves worker commitment to the organization. D.increases the overall productivity of the organization.