1. The key ingredient-the crucial element-to avoiding the failure of a new business is: (Points : 1)
- the business plan.
- knowing the business.
- technical expertise regarding the product.
- differentiating the business and product from the competition.
2. More businesses fail because of ________________ than for any other reason. (Points : 1)
- incompetent management
- theft by employees
- insufficient capital
- poor choice of location
3. One key to success with a business startup is to begin with enough ________________: (Points : 1)
- capital
- sales
- accounts payable
- suppliers
4. An effective strategic plan does which of the following? (Points : 1)
- Identifies a complete set of success factors-financial, operating, and marketing, that yield a competitive advantage for the company.
- Focuses on one generic strategy to the exclusion of all other strategies.
- Always seeks a high profile in the specific markets chosen.
- Is always cost based.
5. The strategic planning process for small businesses is: (Points : 1)
- 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.
6. The primary output of the strategic management process should be a(n): (Points : 1)
- matching of its strengths and weaknesses to the opportunities and threats in the environment.
- enticement to outside investors and lenders to put money into the business.
- complete explanation of the company's product or service.
- description of the company's competitive situation.
7. The strategic management process: (Points : 1)
- is especially difficult for the small business because of its limited resources.
- divides mass markets into smaller, less homogeneous units.
- provides the small business owner with the tools for managing the uncontrollable elements in the external business environment.
- helps a small business develop the game plan that guides it in creating its mission, vision, goals, and objectives.
8. A significant advantage a franchisee has over the independent small business owner is participation in the franchiser's __________. (Points : 1)
- centralized and large-volume buying power
- social gatherings
- profits
- policies
9. The success of franchising is largely due to: (Points : 1)
- the economic growth of the United States and other developed nations, economies.
- more college students choosing to go to work for themselves rather than for corporations.
- the mutual benefits it provides to the franchiser and franchisee.
- All of these factors
10. __________ franchising involves providing the franchisee with a complete business system--the established name, the building layout and design, accounting systems, etc. (Points : 1)
- Product distribution
- Trade name
- Pure
- Conversion