Small Business Management

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Quiz 1
Chapter 1

1.An entrepreneurial career can provide an exciting life and substantial personal rewards while also contributing to the welfare of society.

2.The term entrepreneur is understood in this text to refer only to founders of small businesses.

3.An owner-manager is a person who founds a new business.

4.According to the definition of entrepreneur given in Chapter 1, owner-managers who buy out founders of existing firms may be classified as entrepreneurs.

5. A mechanic who starts an independent garage can best be thought of as an opportunistic entrepreneur.

6. The textbook states in chapter one that an entrepreneur is a person who does all the following except: a.| relentlessly focuses on an opportunity..|
b.| creates value.|
c.| assumes both risk and reward for his effort.|
d.| manages a small business for a salary.|

7.Which of the following is classified as an entrepreneur? a.| A manager in a large corporation|
b.| A financial manager in a small firm|
c.| An owner-manager who bought out the founder of a firm| d.| A salaried technician in a rapidly-growing high-tech firm|

Chapter 3.

1. Startups are more likely to be successful when the entrepreneur first evaluates his or her own capabilities and then looks for a new product or service idea, as opposed to beginning with a need in the marketplace and then relating those to personal capabilities.

2. The industry environment is made up of very broad factors that influence all—or at least most—businesses in a society.

3. The general environment is very narrow and includes the forces that directly impact a firm and its competitors.

4. Buyers, suppliers, substitute products, competitive rivalry, and new entrants all represent forces within an industry.

5. SWOT analysis provides a concise overview...
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