MGT239 : Midterm Revision Exam

[CH1] Management innovation is defined as inventing a new way to organize physical inputs to produce a product or service.

[CH1] Intellectual capital refers to the tangible assets of a business, such as its buildings, equipment, and financial capital.

[CH1] Compared to large corporations, small businesses are generally more flexible and can react faster to new and quickly changing markets.

[CH1] A small business is defined as being independently owned and operated, but it does not need to be independently financed.

[CH1] According to Bahrain's SME classification, a 'Small' enterprise has 0-5 employees and a turnover up to BD 50,000.

[CH2] In the Small Business Management process, the 'Harvest' stage is when the owner removes themselves from the business and enjoys the fruits of their labour.

[CH2] An entrepreneur's primary focus is on operating an established business for long-term stability.

[CH2] The entrepreneurial behavior of 'Risk assumption' means the entrepreneur guides the business and allocates its resources.

[CH2] The entrepreneurship process consists of three main stages in order: Innovation, Triggering event, and Implementation.

[CH3] In a SWOT analysis, a company's strong brand reputation is considered an external Opportunity.

[CH3] Philanthropic goodwill is seen as a voluntary contribution to society, whereas ethical responsibility concerns what stakeholders consider fair and just.

[CH3] A well-formulated mission statement serves as the foundation upon which all other business goals and strategies are based.

[CH4] In the Business Model Canvas, the 'Customer Segments' block focuses on the activities the business must perform to make money.

[CH5] In a franchising agreement, the franchisor is the parent company that develops a product and sells the rights to the franchisee.

[CH5] A royalty fee is an ongoing payment that franchisees pay to franchisors, often calculated as a percentage of sales revenue.

[CH1] Which of the following best defines 'competitive advantage' for a small business?

[CH1] A small bakery is struggling to compete with a large supermarket next door. To improve its chances of success, the owner should focus on all of the following EXCEPT:

[CH1] The owner of a small clothing boutique knows most of her customers by name and offers them personalized styling advice. This close relationship primarily allows her to:

[CH1] A new tech startup with a brilliant product idea failed within its first year because it ran out of money to pay salaries and operational costs, despite strong initial customer interest. This failure is most likely due to:

[CH1] A business is considered a 'small business' according to the course definition if it has fewer than 100 employees and is:

[CH1] Compared to large corporations that commit resources to long-term, large-scale production, small businesses often have an advantage in their ability to:

[CH1] A restaurant owner implements a new software system that organises kitchen orders, inventory, and staff schedules in a completely new and efficient way. This is an example of which type of innovation?

[CH2] According to the model of the start-up process, the stages of 'Growth', 'Maturity', and 'Harvest' are associated with:

[CH2] A key behavior of a small business manager, as distinct from an entrepreneur, is a focus on:

[CH3] Which of the following lists the first three steps of the strategic planning process in the correct order?

[CH3] During a SWOT analysis, a manager assesses the company's well-established brand reputation and the expertise of its workforce. These elements are considered part of the:

[CH3] A company that ensures it is profitable, obeys all local laws, and acts in a fair and just manner is fulfilling which three levels of social responsibility?

[CH3] When conducting a SWOT analysis, factors such as new market trends, changes in government regulations, and the economic climate are classified as components of:

[CH3] Step 3 of the strategic planning process, 'Perform competitive analysis', is primarily focused on:

[CH4] What is a business plan?

[CH4] The fundamental feedback loop of the lean start-up methodology, which aims to accelerate learning, consists of which three drivers in order?

[CH4] Which of the following is NOT one of the nine building blocks of the Business Model Canvas?

[CH4] A company generates income from selling its product directly, charging a monthly subscription fee for premium services, and licensing its technology to other firms. In the Business Model Canvas, these different sources of income are detailed in which block?

[CH4] When writing a business plan, the guideline 'Consider your audience' means the entrepreneur should:

[CH4] An entrepreneur spends months writing a detailed business plan before starting her venture. One of the primary reasons for this effort is to attract capital from bankers and investors. This aligns with which purpose of a business plan?

[CH5] A person with limited business experience wants to open a restaurant but is worried about creating a menu, marketing, and managing operations from scratch. Which advantage of buying a franchise would be most appealing to them?

[CH5] A creative chef decides to buy a fast-food franchise. While the brand is popular, he soon becomes frustrated. What is a likely disadvantage of franchising that he is experiencing?

[CH5] For a franchisor, what is a primary advantage of using the franchise model to grow their business?

[CH5] A McDonald's restaurant is an example of business-format franchising, whereas a local car dealership selling Toyota cars is an example of:

[CH5] Although franchising allows for rapid expansion, a significant disadvantage for the franchisor is the:

[CH1] To get a new venture 'started on the right foot', an entrepreneur must consider several key factors. List and discuss four of these critical factors.

[CH1] Using the official criteria for the Kingdom of Bahrain, list and explain the classification for Micro, Small, and Medium-sized enterprises (SMEs). Your answer must include the criteria for both the number of employees and the annual turnover for each category.

[CH1] Small businesses are often sources of significant innovation. List and define the four main types of innovation that small businesses are most likely to produce.

[CH2] Compare and contrast the roles of an 'Entrepreneur' and a 'Small Business Manager'. Discuss the key differences in their primary focus, relationship with the start-up process, and typical behaviors.

[CH3] The final step in the strategic planning process is to 'Set up control systems'. Explain the purpose and key characteristics of a control system in a small business context.

[CH3] As part of the strategic planning process, a manager conducts a SWOT analysis. Explain the purpose of a SWOT analysis and distinguish between its internal and external components, providing an example for each of the four elements.

[CH4] Within the Business Model Canvas, the 'Value Propositions' block is fundamental. Explain the purpose of this building block and list three key questions an entrepreneur should ask to define their Value Proposition.

[CH4] A business plan is a critical document for any new venture. List and discuss the three primary reasons for writing a business plan.

[CH1] Define 'competitive advantage' and suggest one way Al-Hassan Plastics could regain it, based on the information provided.

[CH2] The case mentions that senior managers are resistant to change. How does this relate to the typical behavior of a 'Small Business Manager' versus an 'Entrepreneur'?

[CH4] If Khalid proposes a new line of sustainable products, why is writing a 'Business Plan' crucial for this project? Refer to one of the three primary purposes.

[CH1] According to the case, how did Noora use a 'close relationship with customers' to gain a competitive advantage for Karak & Co.?

[CH2] As Karak & Co. grows, explain the shift Noora must make from the role of an 'Entrepreneur' to that of a 'Small Business Manager'.

[CH3] Based on the case, identify how Karak & Co. is fulfilling all four levels of social responsibility.