SECTION A
1. Typical entrepreneur values money over achievement [F]
2. Entrepreneur is always working for someone else (customers) [F]
3. Innovation must be a constant process because most ideas don’t work & most innovations fail [F]
4. Creativity is not only an important source for building a competitive, but it also is necessary for survival [T]
5. The three components of intellectual capital are human, structural & customer [T]
6. The mission statement addresses the first question of any business venture: “What business am I in”? [T]
7. For entrepreneurs launching their first businesses, the sole proprietorship is the best form of ownership [F]
8. One disadvantage of the partnership form of ownership is the great potential for personality and authority conflicts [T]
9. The increasing diversity of our population is creating a marketing “threat” to small businesses because they can’t profitably serve small niches (kesesuaian pasaran semakin kecil) [F]
10. Most dissatisfied customers complain about rude or discourteous service to the owner or manager [F]
11. E-commerce is replacing traditional retailing [F]
12. For many entrepreneurs, the key barrier to not using the Web as a business tool is that they do not see any benefits to selling online [F]
13. Building an advertisement around a unique selling proposition (USP) spells out for customers the specific benefits they get if they buy the product or service [T]
14. Profit is the difference between a company’s total revenue and its total expenses [T]
15. The income statement is based on the fundamental accounting equation: Assets = Liabilities + Owner’s Equity [T]
SECTION B
1. The forces that is driving the entrepreneurial trend in our nation:
· Increased entrepreneurial educational opportunities.
· E-commerce & WWW
· Technological advancements & modern business machinery
· Development of computer software.
2. Most entrepreneurs believe that profit is what matters most, but cash is the most important financial resource for a small business owner.
3. The ability to apply creative solutions to problems & opportunities to enhance or to enrich people’s live is called innovation.
4. Entrepreneurship is a constant process that relies on creativity, innovation & application in the marketplace.
5. Strategic management involves developing a game plan to guide a company as it strives to accomplish its mission, goals and objectives to keep it on its desired course.
6. The way for the typical small business to establish a competitive advantage (Strategic Management Process)
- Develops in key areas, such as superior quality, customer service, innovation, team-building, flexibility, responsiveness, and others that allow it to vault past competitors.
· They are what a company does best.
· Best to rely on a natural advantage (often linked to a company’s smallness).
8. Advantages of a partnership
· Easy to establish
· Complementary skills of partners
· Division of profits
· Larger pool of capital
· Ability to attract limited partners
9. Marketing is the process of creating and delivering desired goods and services to customers and involves all of the activities associated with winning and retaining loyal customers.
10. The foundation of every business is satisfying the customers.
11. Benefits of selling on the Web
· Opportunity to increase revenues
· Ability to expand into global markets
· Ability to remain open 24 hours a day, seven days a week
· Capacity to use the Web’s interactive nature to enhance customer service
· Power to educate and inform
· Ability to lower the cost of doing business
· Ability to spot new business opportunities and capitalize on them
· Ability to grow faster
· Power to track sales results
12. The greatest benefit for small businesses that have a website: brought new customers.
13. The steps in creating advertising plan (marketing communication plan)
i. Create specific, measurable objectives
ii. Identify & analyze the target audience
iii. Design an advertising message and choose the media for transmitting it.
14. Characteristic of newspaper ads
· Low absolute cost
· Reach people in all economic classes
· Flexible
· Spread in major city
15. Cash is the most important yet least productive asset that a small business owns.
SECTION C
1. (a) Entrepreneur? Give a brief profile of a typical entrepreneur
Entrepreneur: one who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize them.
Characteristics of entrepreneur: Desire for responsibility, high level of energy, skilled at organizing, value achievement over money & confidence in their ability to succeed.
(b) Primary motivation for the typical entrepreneur
Entrepreneur as heroes, entrepreneurial education, demographic & economic factors, shift to a service economy, technological advancements, independent lifestyles, e-commerce & WWW , international opportunities.
2. The ways the creativity is enhanced for
Individual / OrganizationalAllow yourself to be creative / Embrace diversity
give your mind fresh input every day / Expect creativity
recognize the creative power of mistakes / Expect and tolerate failure
keep a journal handy to record your thoughts & ideas / Encourage creativity
Listen to other people / View problems as challenges
Talk to a child / Provide creativity training
Keep a toy box in your office / Provide support
Read book in stimulating creativity / Develop a procedure for capturing ideas
Take some time off / Rewards creativity
Model creative behavior
3. (a) Strategic management
A game plan to guide a company as it strives to accomplish its mission, goals & objectives and to keep it on its desired course.
(b) The role that a strategic plan plays in a small company
i. Develop a vision & translate it into mission statement / v. Analyze competitionii. Assess strengths & weaknesses / vi. Create goals & objectives
iii. Scan environment for opportunities & threats / vii. Formulate strategies
iv. Identify key success factors / viii. Establish accurate controls.