MGMT 3850 CHAPTER 3
HOMEWORK QUESTION AND
ANSWERS
Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough)
Chapter 3 Designing a Competitive Business Model and Building a Solid Strategic Plan
1) Which of the following is not one of the three components of intellectual capital?
A) Human
B) Structural
C) Competitor
D) Customer
Answer: C
Diff: 2 Page Ref: 87
AACSB: Analytic Skills
Learning Obj.: 1
2) ________ 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.
A) Competitive advantage
B) Mission
C) Strategic management
D) Market segmentation
Answer: C
Diff: 1 Page Ref: 88
AACSB: Analytic Skills
Learning Obj.: 1
3) The aggregation of factors that sets a company apart from its competitors and gives it a unique
position in the market, superior to its competition, is its:
A) mission statement.
B) competitive advantage.
C) competitive profile.
D) strategic plan.
Answer: B
Diff: 1 Page Ref: 88-89
AACSB: Analytic Skills
Learning Obj.: 2
4) Which of the following was not identified as a way for the typical small business to establish a
competitive advantage?
A) Lowering prices
B) Providing higher quality goods or services
C) Improving customer service
1
,D) Doing whatever the company does for its customers better than its competitors
Answer: A
Diff: 2 Page Ref: 89
AACSB: Reflective Thinking
Learning Obj.: 2
2
, 5) ________ are a unique set of capabilities that a company develops in key operational areas-
such as service, innovation, and others-that allow it to potentially vault past its competitors.
A) Core competencies
B) Opportunities
C) Key success factors
D) Mission statements
Answer: A
Diff: 2 Page Ref: 89
AACSB: Reflective Thinking
Learning Obj.: 2
6) The relationship between core competencies and competitive advantage is best described by
which statement?
A) Strengthening a company's competitive advantage strengthens its core competencies.
B) A company's core competencies become the nucleus of its competitive advantage.
C) As a company's core competencies become stronger, its competitive advantage becomes
weaker.
D) There is no relationship between core competencies and competitive advantage.
Answer: B
Diff: 3 Page Ref: 89-80
AACSB: Analytic Skills
Learning Obj.: 2
7) The key to entrepreneurial success over time is to build a ________ competitive advantage.
A) defensible
B) sustainable
C) coherent
D) random
Answer: B
Diff: 3 Page Ref: 90-91
AACSB: Analytic Skills
Learning Obj.: 2
8) A strategic plan serves as a blueprint to help a company to:
A) match their company's strengths and weaknesses to the environment's opportunities and
threats.
B) accomplish its mission, goals, and objectives.
C) identify a company's competitive advantage and set it apart from its competition with a
unique position in the market.
D) All of the above
Answer: D
Diff: 2 Page Ref: 92
AACSB: Analytic Skills
Learning Obj.: 3
3
HOMEWORK QUESTION AND
ANSWERS
Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough)
Chapter 3 Designing a Competitive Business Model and Building a Solid Strategic Plan
1) Which of the following is not one of the three components of intellectual capital?
A) Human
B) Structural
C) Competitor
D) Customer
Answer: C
Diff: 2 Page Ref: 87
AACSB: Analytic Skills
Learning Obj.: 1
2) ________ 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.
A) Competitive advantage
B) Mission
C) Strategic management
D) Market segmentation
Answer: C
Diff: 1 Page Ref: 88
AACSB: Analytic Skills
Learning Obj.: 1
3) The aggregation of factors that sets a company apart from its competitors and gives it a unique
position in the market, superior to its competition, is its:
A) mission statement.
B) competitive advantage.
C) competitive profile.
D) strategic plan.
Answer: B
Diff: 1 Page Ref: 88-89
AACSB: Analytic Skills
Learning Obj.: 2
4) Which of the following was not identified as a way for the typical small business to establish a
competitive advantage?
A) Lowering prices
B) Providing higher quality goods or services
C) Improving customer service
1
,D) Doing whatever the company does for its customers better than its competitors
Answer: A
Diff: 2 Page Ref: 89
AACSB: Reflective Thinking
Learning Obj.: 2
2
, 5) ________ are a unique set of capabilities that a company develops in key operational areas-
such as service, innovation, and others-that allow it to potentially vault past its competitors.
A) Core competencies
B) Opportunities
C) Key success factors
D) Mission statements
Answer: A
Diff: 2 Page Ref: 89
AACSB: Reflective Thinking
Learning Obj.: 2
6) The relationship between core competencies and competitive advantage is best described by
which statement?
A) Strengthening a company's competitive advantage strengthens its core competencies.
B) A company's core competencies become the nucleus of its competitive advantage.
C) As a company's core competencies become stronger, its competitive advantage becomes
weaker.
D) There is no relationship between core competencies and competitive advantage.
Answer: B
Diff: 3 Page Ref: 89-80
AACSB: Analytic Skills
Learning Obj.: 2
7) The key to entrepreneurial success over time is to build a ________ competitive advantage.
A) defensible
B) sustainable
C) coherent
D) random
Answer: B
Diff: 3 Page Ref: 90-91
AACSB: Analytic Skills
Learning Obj.: 2
8) A strategic plan serves as a blueprint to help a company to:
A) match their company's strengths and weaknesses to the environment's opportunities and
threats.
B) accomplish its mission, goals, and objectives.
C) identify a company's competitive advantage and set it apart from its competition with a
unique position in the market.
D) All of the above
Answer: D
Diff: 2 Page Ref: 92
AACSB: Analytic Skills
Learning Obj.: 3
3
