Chapter 7: Successful Small Business Management

Contemporary views of business strategy have their origins in the work of Igor Ansoff and others, in the:
1. 1920s
2. 1940s
3. 1960s
4. 1980s
5. 21st century
The purpose of all good small business strategy is:
1. to increase turnover
2. to increase profitability
3. to achieve competitive advantage
4. to achieve stated objectives
5. to provide more jobs
Emergent strategies are:
1. not as successful as deliberate ones
2. never undertaken by entrepreneurs
3. always undertaken by entrepreneurs
4. usually undertaken by entrepreneurs
5. more successful than deliberate ones
Small businesses should choose between either the ‘task perspective’ or the ‘exploration perspective’. True / False?
1. True
2. Flase
Which of the following is closest to the meaning of ‘liability of newness’
1. increased exposure to financial risk of new businesses
2. obligations on new ventures
3. lacking credibility in the business context
4. the need for innovation in new businesses
5. lack of resources
Which of the following does not form part of the so-called ‘parsimonious path to profit’?
1. Never buy new what can be bought second-hand
2. Never buy second-hand what can be bought new
3. Never rent what can be borrowed
4. Never borrow what can be begged
5. Never beg what can be salvaged
Which of the following is not one of the 4 Ms?
1. motivation
2. management
3. materials
4. money
5. marketing
All ‘successful’ small businesses must manage the transition into a larger company. True / False?
1. True
2. False
Stage models of business growth typically have:
1. 3 stages
2. 4 stages
3. 5 stages
4. 6 stages
5. 7 stages
Storey’s model of high growth small firms involves which of the following combination of three components?
1. starting resources of the entrepreneur; the industry; access to capital
2. starting resources of the entrepreneur; the education of entrepreneur; the firm
3. the firm; the strategy; the suppliers
4. starting resources of the entrepreneur; the firm; the strategy
5. starting resources of the entrepreneur; the strategy; access to capital

Chapter 7: Successful Small Business Management

Quiz