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:
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Increased entrepreneurial educational opportunities.
E-commerce & WWW
Technological advancements & modern business machinery
Development of computer software.
All of the above
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
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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
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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.
ii.
iii.
Create specific, measurable objectives
Identify & analyze the target audience
Design an advertising message and choose the media for transmitting it.
14. Characteristic of newspaper ads
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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
Allow yourself to be creative
give your mind fresh input every day
recognize the creative power of mistakes
keep a journal handy to record your thoughts & ideas
Listen to other people
Talk to a child
Keep a toy box in your office
Read book in stimulating creativity
Take some time off
Organizational
Embrace diversity
Expect creativity
Expect and tolerate failure
Encourage creativity
View problems as challenges
Provide creativity training
Provide support
Develop a procedure for capturing ideas
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
ii. Assess strengths & weaknesses
iii. Scan environment for opportunities & threats
iv. Identify key success factors
v. Analyze competition
vi. Create goals & objectives
vii. Formulate strategies
viii. Establish accurate controls.