2024 – Question 1 Which of the following is true about avoiding business failure You

  

Question 1 

1. Which of the following is true      about avoiding business failure?

  

You must understand financial   statements.

 

You need to learn how to manage   others.

 

You must differentiate your product   from the competition.

 

You must do all of these.

2 points   

Question 2 

1. Potential drawbacks of small      business ownership include:

  

a relatively low guaranteed income.

 

a significantly freer personal   schedule but less personal income and assets with which to enjoy the more   relaxed schedule.

 

a high likelihood of a lower quality   of life while starting and establishing the small business.

 

relatively limited potential for   further personal development.

2 points   

Question 3 

1. “Copreneurs” are marked      by:

  

a division of labor by expertise.

 

their similarity to the traditional   mom-and-pop operation.

 

a decline in the number of   businesses.

 

a greater success at raising venture   capital than sole proprietorship-type businesses.

2 points   

Question 4 

1. Entrepreneurial success requires both      persistence and ________.

  

education

 

connections

 

resilience

 

reluctance

2 points   

Question 5 

1. Forces driving the entrepreneurial      trend in our economy include which of the following?

  

Technological advancement

 

Shift to a service economy

 

e-commerce

 

All of the above

2 points   

Question 6 

1. Regarding sexual harassment,      employers should realize that they:

  

can be held responsible for   third-party sexual harassment.

 

are protected from liability if they   are aware of a harassment problem, even if they don’t take action.

 

are not liable for sexual harassment   in the workplace if they have a formal policy against it.

 

are not liable if they didn’t know it   was taking place, even if one could reasonably expect them to know.

2 points   

Question 7 

1. Which one of the following is a      company’s stakeholder?

  

Employees

 

Unions

 

Investors

 

All of the above

2 points   

Question 8 

1. The various groups who affect and      are affected by the decisions and actions of a small business are called:

  

suppliers.

 

stakeholders.

 

minorities.

 

intermediaries.

2 points   

Question 9 

1. If a manager is made aware of a      sexual harassment problem, he/she should:

  

immediately fire the person accused   of the harassment.

 

ask the complainant to approach the   harasser and try to work it out.

 

listen carefully and investigate   quickly and thoroughly.

 

make all and any findings public to   protect all parties.

2 points   

Question 10 

1. ________ is any unwelcome sexual      advance, request for sexual favors, and other verbal or physical sexual      conduct made explicitly or implicitly as a condition of employment.

  

Hostile harassment

 

Quid pro quo harassment

 

Non-employee sexual harassment

 

Sexual harassment

2 points   

Question 11 

1. ________ is the ability to apply      creative solutions to problems and opportunities to enhance or to enrich      people’s lives.

  

Showboating

 

Commoditizing

 

Creativity

 

Innovation

2 points   

Question 12 

1. ________ is (are) a valuable part      of the creative process, especially when evaluating ideas and implementing      them.

  

Rules

 

Unequivocality

 

Logic

 

All of the above

2 points   

Question 13 

1. To avoid myopic thinking, creative      companies include ________ in creative problem solving or idea generation      sessions.

  

nonexperts

 

experts

 

industry specialists

 

industry generalists

2 points   

Question 14 

1. In the creative process, ________      occurs while the individual is away from the problem, often engaging in      some totally unrelated activity.

  

investigation

 

incubation

 

transformation

 

verification

2 points   

Question 15 

1. Which one of the following is a      barrier to creativity?

  

Searching for the one   “right” answer

 

Focusing on being “logical”

 

Blindly following the rules

 

All of the above

2 points   

Question 16 

1. The primary output of the      strategic management process should be:

  

a matching of its strengths and   weaknesses to the opportunities and threats in the environment.

 

an enticement to outside investors   and lenders to put money into the business.

 

a complete explanation of the   company’s product or service.

 

a description of the company’s   competitive situation.

2 points   

Question 17 

1. A small business owner needs to remember      that when it comes to employee involvement in the strategic planning      process:

  

involvement is a prerequisite for the   achievement of total employee commitment.

 

his/her employees look to him/her for   leadership and do not want to be involved.

 

the delegation of authority is not as   important as communicating a clear vision.

 

employees do not need to be involved   in the strategic process but do need to be involved in the operational   process.

2 points   

Question 18 

1. A small firm’s ability to identify      and manipulate the ________ in its business determines its ability to      compete effectively.

  

key success factors

 

corporate vision and mission

 

opportunities and threats

 

market environment

2 points   

Question 19 

1. ________ focuses everyone’s      attention and efforts on the same target market. It is an expression of      what the owner believes in.

  

The mission statement

 

The company vision

 

The strategic plan

 

The operational plan

2 points   

Question 20 

1. The strategic planning process for      small businesses is:

  

market-focused.

 

the same as it is for a large   company.

 

generally done by top management with   little or no participation by employees.

 

product-focused and similar to that   for large companies.