Reference no: EM13393494

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