Strategic Management in Action, Coulter - Exam Preparation Test Bank (Downloadable Doc)

Strategic Management in Action, 6e (Coulter)

Module - Special Topics in Strategy



1) Entrepreneurial ventures pursue opportunities, are characterized by innovative
practices, and have growth and profitability as their main goals.

Answer: TRUE

Diff: 1 Page Ref: 215

AACSB: Analytical Skills

Objective: Describe how strategic management can be utilized by entrepreneurs and
applied to small businesses



2) A small business is one that has fewer than 100 employees.

Answer: FALSE

Diff: 2 Page Ref: 215

AACSB: Analytical Skills

Objective: Describe how strategic management can be utilized by entrepreneurs and
applied to small businesses



3) Entrepreneurial ventures and small businesses are not the same.

Answer: TRUE

Diff: 2 Page Ref: 215

AACSB: Analytical Skills

Objective: Describe how strategic management can be utilized by entrepreneurs and
applied to small businesses



4) Small businesses represent more than 99 percent of all employers.

Answer: TRUE

,Diff: 2 Page Ref: 215

AACSB: Analytical Skills

Objective: Describe how strategic management can be utilized by entrepreneurs and
applied to small businesses



5) Small businesses account for over 90 percent of the private sector output.

Answer: FALSE

Diff: 2 Page Ref: 215

AACSB: Analytical Skills

Objective: Describe how strategic management can be utilized by entrepreneurs and
applied to small businesses



6) Economists suggest that most small businesses are not particularly good at creating
jobs.

Answer: TRUE

Diff: 2 Page Ref: 215

AACSB: Analytical Skills

Objective: Describe how strategic management can be utilized by entrepreneurs and
applied to small businesses

,7) Small businesses employ over half of all private workers.

Answer: TRUE

Diff: 1 Page Ref: 215

AACSB: Analytical Skills

Objective: Describe how strategic management can be utilized by entrepreneurs and
applied to small businesses

8) A small business is defined as one that is independently owned, operated, and
financed; has fewer than 100 employees; engages in innovation marketing practices; and
has relatively little impact on its industry.

Answer: FALSE

Diff: 3 Page Ref: 215

AACSB: Analytical Skills

Objective: Describe how strategic management can be utilized by entrepreneurs and
applied to small businesses



9) Both small businesses and entrepreneurial ventures play an important role in the global
economy.

Answer: TRUE

Diff: 2 Page Ref: 215

AACSB: Analytical Skills

Objective: Describe how strategic management can be utilized by entrepreneurs and
applied to small businesses



10) Innovation is the process of creating, changing, experimenting, transforming, and
revolutionizing.

Answer: TRUE

Diff: 2 Page Ref: 217

AACSB: Analytical Skills

, Objective: Describe how strategic management can be utilized by entrepreneurs and
applied to small businesses



11) Developing a sustainable competitive advantage is important for all organizations.

Answer: TRUE

Diff: 2 Page Ref: 217

AACSB: Analytical Skills

Objective: Describe how strategic management can be utilized by entrepreneurs and
applied to small businesses



12) In almost every study, strategy research has shown positive linkages between
planning and business performance.

Answer: FALSE

Diff: 2 Page Ref: 217

AACSB: Analytical Skills

Objective: Describe how strategic management can be utilized by entrepreneurs and
applied to small businesses



13) Some small businesses are ineffective in part due to the "boiled frog phenomenon."

Answer: TRUE

Diff: 3 Page Ref: 218

AACSB: Analytical Skills

Objective: Describe how strategic management can be utilized by entrepreneurs and
applied to small businesses



14) Small businesses and entrepreneurial ventures can compete successfully in narrow
market niches by developing a low-cost, differentiation, or integrated competitive
advantage.