Whiteland Community High Sch

ENGLISH 101

Exam 1: Chapters 1

1)Israel Kirzner believes entrepreneurs have a unique capability, which he calls                       , to spot existing opportunities for businesses.

2. Alyson and Andrea, country artists, realized that their love of classic rock was also popular with their fans. Their change to their show to incorporate more rock songs with a country flavor is an example of
3. As China’s production of exportable goods increases, Chinese workers have more money to spend on consumer items. Other developing countries are experiencing the same growth. Which type of trend does this represent?
4. Richard could see the demand for towable recreational vehicles declining so beginning in the early 1970s he used his equipment, employees, and professional network to design and build utility trucks, a more recession resistant industry. This is an example of:
5. An example of an idea for a new startup from a hobby is
6. O-MY-U once had a winning team in every college sport. But athletes graduate and fortunes change. Attendance at the games dropped when the team had a losing season. Bob and Shirley found it difficult to attract enough guests to their bed-and-breakfast to cover their costs. How would Michael Porter explain this?
7. Which segment is part of the general environment?
8. Milton’s Auto Service is a small auto maintenance and repair shop located in a small town in a garage behind Milton’s house. Milton doesn’t charge as much as auto dealerships so he has a steady stream of local customers. Which of the following best describes Milton’s strategy?
9. Arlene runs Technographics, a company that designs greeting cards for computer users. What type of strategy would be expected?
10. Which of the following could be considered a core competency?
11. If Floyd elects to monitor the personal email accounts of his employees at work, he should:
12. Entrepreneurs often come up short on their tax commitments because of a single-minded focus on their product or service and/or

           .

13. Damon landed his first contract as an entrepreneur then submitted to the local newspaper a news release that gave the impression this was just one of a series of contracts and that business was booming. Damon has:
14. While unethical practices do exist, it is good that the great majority of small firms strive to achieve the highest standards of                                                                                                                                                                                                                       in their quest for profits.
15. When a company delivers an excellent product with excellent service,               are likely to follow.

16. Which statement is true concerning using available family talent in the succession plan?
17. What step is best for parents to decrease succession conflict among children active in the firm and those who are not?
18. Bob and his sister Betty are co-owners of their late parents’ business. Bob actively manages the business; Betty supplies only capital from her inheritance but does not work in the business. They squabble over the distribution of profits from the business. Bob likely sees his sister as a while Betty views her brother as a                                                                                      .
19. Mayer’s philosophy of never using debt to finance operations or expansion was born during the Great Depression and passed on to his sons when they joined the family business. Today the multi-million dollar organization proudly follows Mayer’s practice under the leadership of Mayer’s great-grandsons and -daughters. This family’s commitment is based on:
20. Jane and Joe are experiencing a strain with their family relationship after running their family business for 5 years. Which issue might be the most likely underlying cause of the tension?
21. Jan and Jill started a business 20 years. Jill recently stepped down; her daughter Jenny has agreed to start managing the company with Jan’s help; and the eventual goal is for Jenny to run the entire company. This process between Jan and Jenny is called                                                                                                                                              .
22. Kinder’s Deli has been in business for three generations. A place was found for every Kinder child to work in the shop. The name Kinder meant fine deli meats. This family’s commitment is based on:
23. John and his brother Jack started a produce farm 20 years ago and are thinking about retirement. Over time, their children have worked at the farm and so the cousins have started talking about taking over management. At present, this produce farm is an example of              .
24. Betsy had always had decisions made for her, first by her parents then by her husband. So when her father asked her to take over the family business, she was afraid of:
25. RST, Inc., a franchisor, is requiring its franchisee, Raymond, to make significant changes to the equipment and interior appearance of his business as a condition of renewing the contract. Raymond suspects:
26. McDonald’s corporation helps select the location for a new restaurant and provides financial assistance, training, marketing, and products. McDonald’s engages in:
27. Harold was given the chance to examine the tax returns and financial statements of a business he is considering for purchase. The seller asked him to sign a            that prohibits Harold from sharing this confidential information with anyone else.
28. Darin is assembling a team of experts to help him through the process of evaluating a franchise opportunity. This team should include:
29. Marvin is selling his business as a total entity. The buyer has offered a very large down payment, but Marvin would prefer a lower down payment and a longer repayment period. Why?
30. RST, Inc., a franchisor, is requiring its franchisee, Raymond, to make significant changes to the equipment and interior appearance of his business as a condition of renewing the contract. RST claims this is necessary because:
31. Jeffrey’s job is to identify potential business people in his country who might want to do business using a particular brand name. When the contract is signed, Jeffrey then provides training to the business person. Jeffrey is most likely: