Question 1

The general environment is very narrow and includes the forces that directly impact a firm and its competitors.

Accepted Answer

The statement is false. The general environment includes the broader societal forces that indirectly impact a firm and its competitors. The specific environment includes the forces that directly impact a firm and its competitors.

Question 2

Many new businesses are formed as a result of the entrepreneur's previous work experience, through which he or she sees ways to improve or modify a product.

Accepted Answer

Many successful entrepreneurs start businesses based on their previous work experience and seeing areas where they can improve or modify existing products or services.

Question 3

Given their limited market scope and size, only three of Porter's five forces are relevant to small businesses.

Accepted Answer

False

Question 4

Developments in the technological segment of the general environment have created significant opportunities for many new and creative small businesses.

Accepted Answer

The technological advancements have opened up new avenues and possibilities for small businesses to develop and grow, thus creating significant opportunities.

Question 5

The general environment is positive in its impact on the small firm and its performance.

Accepted Answer

The answer of The general environment is positive in its...

Question 6

Serendipity is the faculty for making desirable discoveries by accident.

Accepted Answer

Serendipity refers to the unexpected discovery of something valuable or desirable while searching for something else. It often involves a combination of chance, intuition, and curiosity, and can lead to new ideas, inventions, or breakthroughs.

Question 7

Cabana Life, the company started by Melissa Marks Papock, is an example of a startup based on serendipity.

Accepted Answer

The answer of Cabana Life, the company started by Melissa...

Question 8

Magazines and other periodicals are excellent sources of startup ideas.

Accepted Answer

Magazines and other periodicals often cover emerging trends, new technologies, and innovative business ideas, making them a great source of inspiration for entrepreneurs looking to start a new business.

Question 9

Starting or buying more than one business without merging their operations closely is a strategy known as differentiation-based.

Accepted Answer

Differentiation-based strategy involves creating a unique product or service in the market, which clearly distinguishes it from competitors. It does not involve starting or buying multiple businesses without integrating them closely.

Question 10

The general environment is more narrowly defined than the industry environment because it focuses on specific segments, such as those relating to the economy, sociocultural trends, and geopolitical developments.

Accepted Answer

The answer of The general environment is more narrowly defined...

Question 11

"Me, too" strategies are used by very few new ventures.

Accepted Answer

"Me, too" strategies are commonly used by new ventures.

Question 12

Hobbies of retiring business executives can spawn startup ideas.

Accepted Answer

Retiring business executives often have a wealth of knowledge, experience, and passion that can lead to the development of new startup ideas. Their hobbies and interests may also provide inspiration for new ventures.

Question 13

The industry environment is made up of very broad factors that influence all-or at least most-businesses in a society.

Accepted Answer

The answer of The industry environment is made up of...

Question 14

Serendipity is a term describing a new product idea resulting from deliberate search activities.

Accepted Answer

Serendipity refers to a new product idea resulting from chance or accidental discovery rather than deliberate search activities.

Question 15

Some possibilities for new startup ideas based on knowledge gleaned from a present or recent job are modifying an existing product, improving a service, or duplicating a business concept in a different location.

Accepted Answer

When individuals gain knowledge from their existing or recent job, they can identify the challenges customers face and the areas that need improvement. Based on this knowledge, they can modify existing products, enhance services or replicate a similar concept in another location to create new startup opportunities. Therefore, the statement is true.

Question 16

Buyers, suppliers, substitute products, competitive rivalry, and new entrants all represent forces within an industry.

Accepted Answer

These forces are commonly known as Porter's Five Forces and are used to analyze the competitiveness of an industry.

Question 17

Business guru Peter Drucker stated "Innovation is the specific instrument of entrepreneurship".

Accepted Answer

Peter Drucker did indeed state that "Innovation is the specific instrument of entrepreneurship."

Question 18

The industry environment can best be defined as the combined forces that directly impact a given firms and its competitors.

Accepted Answer

The industry environment refers to the external factors that affect a firm and its competitors, including factors like competitors, suppliers, customers, and government regulations.

Question 19

Business guru Peter Drucker believes entrepreneurs should consider no more than two or three sources of opportunity to avoid being sidetracked as they prepare to launch or grow their enterprises.

Accepted Answer

The answer of Business guru Peter Drucker believes entrepreneurs should...

Question 20

Startups are more likely to be successful when the entrepreneur first evaluates his or her own capabilities and then looks for a new product or service idea, as opposed to beginning with a need in the marketplace and then relating those to personal capabilities.

Accepted Answer

The answer of Startups are more likely to be successful...

Quiz 3: Getting Started