Small Business Its Opportunities and Rewards (Answer Key) Part 5

  30. Which of the following approaches yields better results in an established industry or a poor one?  (p.31) A.External focus B.Effectuation focus Prevention focus D.Promotion focus Most of us have some mix of two internal focuses (also called our regulatory focus), a promotion focus intent on maximizing gains, which gives us a bias toward pursuing opportunities likely to lead to those gains, and a prevention focus intent on minimizing losses, with a bias toward inaction or protective action. In an established industry or a poor one, a prevention focus can work well, while a promotion focus can yield better results in richer, dynamic, uncertain environments or industries.   31. (p.31) Which of the following approaches yields better results in richer, dynamic, uncertain environments or industries?  Promotion focus B.External focus C.Effectuation focus D.Prevention focus Most of us have some mix of two internal focuses (also called our regulatory focus), a promotion focus intent on maximizing gains, which gives us a bias toward pursuing opportunities likely to lead to those gains, and a prevention focus intent on minimizing losses, with a bias toward inaction or protective action. In an established industry or a poor one, a prevention focus can work well, while a promotion focus can yield better results in richer, dynamic, uncertain environments or industries.   32.Entrepreneurs who develop long-range plans for all aspects of the business are known as _____.  (p.31) A.critical-point planners B.opportunistic planners comprehensive planners D.reactive planners Comprehensive planners 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.   33. Christopher is a hard-working entrepreneur who looked into all the details of his small (p.31) 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 comprehensive planner Comprehensive planners 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.   34. (p.31) Entrepreneurs who develop plans focused on the most important aspect of the business first are known as _____.  critical-point planners B.opportunistic planners C.comprehensive planners D.reactive planners Critical-point planners plan around the most important aspect of the business first, act on it, and then consider if additional plans are needed. It is not a very long-term approach to planning.   35. Which among the following is a critical-point planner? (p.31)   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. Critical-point planners plan around the most important aspect of the business first, act on it, and then consider if additional plans are needed. It is not a very long-term approach to planning.   36. Entrepreneurs who start with a goal instead of a plan and look for a chance to achieve it are known as _____. (p.31)  A.reactive planner B.critical-point planner C.comprehensive planner opportunistic planner Opportunistic planners generally start with a goal and look for opportunities to achieve it. Once they find a good opportunity, even if it isn't the one related to their original goal, they act on it, so it is very short term in orientation.   37. Which of the following would have a very short-term approach to planning?  (p.31)  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. Opportunistic planners generally start with a goal and look for opportunities to achieve it. Once they find a good opportunity, even if it isn't the one related to their original goal, they act on it, so it is very short term in orientation.   38._____ are completely passive, waiting for cues from the environment to determine what actions to take. (p.31)  A.Opportunistic planners B.Critical-point planners C.Comprehensive planners Reactive planners Reactive planners are completely passive, waiting for cues from the environment to determine what actions to take. Their focus is entirely short term, and there is little in the way of goals driving their efforts. They can make the most of a situation because there is no other plan competing for their attention.   39. Reactive planners: (p.31)  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. focus on short-term plans. D.have fixed goals dictating their efforts. Reactive planners are completely passive, waiting for cues from the environment to determine what actions to take. Their focus is entirely short term, and there is little in the way of goals driving their efforts. They can make the most of a situation because there is no other plan competing for their attention.   40. Entrepreneurs who do not plan and prefer to let all actions be dictated by their routines are known as _____.  (p.32) habit-based planners B.critical-point planners C.reactive planners D.comprehensive planners Habit-based planners do not really plan at all because their actions are dictated by their routines. They do today what they did yesterday. They don't plan, and they don't even tend to react to changes in their environments.   41. Which of the following characterizes a habit-based planner?  (p.32) 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. They don't plan, and they don't tend to react to changes in their environments. Habit-based planners do not really plan at all because their actions are dictated by their routines. They do today what they did yesterday. They don't plan, and they don't even tend to react to changes in their environments.   42.Which of the following planners do best in terms of getting a start-up launched, keeping it going, and making a living from it?  (p.32) Comprehensive planners B.Habit-based planners C.Opportunistic planners D.Reactive planners Simply put, results from small business owners in countries around the world have shown that in terms of getting a start-up launched, keeping it going, and making a living from it, comprehensive planners do the best, followed by critical point planners, and opportunistic planning types. Reactive and habit planners generally do very poorly in business, even if they manage to get their firms started.   43. (p.32) 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 Habit-based planners C.Opportunistic planners D.Critical-point planners Simply put, results from small business owners in countries around the world have shown that in terms of getting a start-up launched, keeping it going, and making a living from it, comprehensive planners do the best, followed by critical point planners, and opportunistic planning types. Reactive and habit planners generally do very poorly in business, even if they manage to get their firms started.   44. (p.32) The extent to which a firm meets or exceeds the standard business practices for its industry is known as _____.  A.bootstrapping professionalization C.effectuation D.Perceived Organizational Support (POS) The extent to which a firm meets or exceeds the standard business practices for its industry is known professionalization. One hallmark of successful entrepreneurs is that they usually do at least one thing much better than average. That average is called a standard business practice and every industry has them. Doing that level or better is what professionalization is all about.   45. (p.32) A business action that has been widely adopted within an industry or occupation is known as _____.  A.best business practice B.specialized business professionalization standard business practice D.expert professionalization One hallmark of successful entrepreneurs is that they usually do at least one thing much better than average. That average is called a standard business practice and every industry has them. Doing that level or better is what professionalization is all about.   46. (p.32) 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 Expert, specialized, and minimalized There are three levels of professionalization: expert professionalization when most aspects of the business meet or exceed the industry's standards, specialized when one or two aspects of the business are at this level, or minimalized when none of the business can achieve the industry standard.   47. A situation that occurs when all the major functions of a firm are conducted according (p.32) to the standard business practices of its industry is known as _____.  expert business professionalization B.specialized business professionalization C.minimized business professionalization D.maximized business professionalization 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 expert business professionalization.   48. (p.32) Expert business professionalization is a situation that occurs:  A.when only the most critical aspect of business is met. 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. There are three levels of professionalization: expert professionalization when most aspects of the business meet or exceed the industry's standards, specialized when one or two aspects of the business are at this level, or minimalized when none of the business can achieve the industry standard.   49. A situation that occurs when businesses have founders or owners who are passionate (p.32) 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 specialized business professionalization C.minimized business professionalization D.maximized business professionalization 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 specialized business professionalization. There are three levels of professionalization: expert professionalization when most aspects of the business meet or exceed the industry's standards, specialized when one or two aspects of the business are at this level, or minimalized when none of the business can achieve the industry standard.   50. (p.32) 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 minimalized business professionalization D.maximized business professionalization A situation that occurs when the entrepreneur does nearly everything in the simplest way possible is known as minimized business professionalization. There are three levels of professionalization: expert professionalization when most aspects of the business meet or exceed the industry's standards, specialized when one or two aspects of the business are at this level, or minimalized when none of the business can achieve the industry standard.   51. Which of the following is true with regard to minimalized business professionalization?  (p.32) 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. A situation that occurs when the entrepreneur does nearly everything in the simplest way possible is known as minimalized business professionalization.   52. Competencies are defined as:  (p.34) forms of business-related expertise. B.forms of personal development model. C.different forms of self-assessment. D.different forms of personality theories. All the entrepreneurial personality types aspects depend on hard work, but there are other specific types of business-related expertise—called competencies—that appear repeatedly in successful entrepreneurs around the world.   53. (p.35) Getting the business organized and registered is an example of _____ competency.  A.opportunity B.resource C.industry-specific boundary The competency suggested by boundary relates to the organizational and business processes of a firm. This type of expertise can be called basic business competency. There are certain fundamental activities that all businesses must perform, which are called the key business functions, and include sales, operations (also called production), accounting, finance, and human resources. Getting organized and registered—which creates the boundary—is an example of an operations activity.