Entrepreneurship 10th Edition

Angel investors have a longer investment horizon than venture capitalists do. Answer: TRUE Answer: TRUE Answer: TRUE Financial ratios are control mechanisms to test the financial strengths of a new venture. Answer: TRUE Answer: TRUE Answer: TRUE For the Internet start-up, capital budgeting and operating expenses will tend to be

Synergy is when the whole is the aggregate of all of its parts. Answer: FALSE Answer: FALSE Answer: FALSE Bankruptcy protects entrepreneurs from creditors and competitors. Answer: FALSE Answer: FALSE Answer: FALSE Traditionally managed firms commitment to opportunity is revolutionary with a long duration. Answer: FALSE Answer: FALSE Answer: FALSE A business, when it comes to selling, will be

Two major disadvantages of going public are the increased reporting requirements and potential loss of control. Answer: TRUE Answer: TRUE Answer: TRUE The indirect method of projecting cash flow is the most popular. Answer: TRUE Answer: TRUE Answer: TRUE Early-stage financing is usually the least costly type of financing to obtain. Answer: FALSE Answer:

Outside capital should be sought only after all possible internal sources of funds have been explored. Answer: TRUE Answer: TRUE Answer: TRUE Once accepted, the trademark is published in the Trademark Official Gazette to allow any party 90 days to oppose or request an extension to oppose. Answer: FALSE Answer: FALSE Answer:

The decision regarding the legal form of organization should be made by the entrepreneur before request for venture capital. Answer: TRUE Answer: TRUE Answer: TRUE To determine the figures in the budget, the entrepreneur should identify benchmarks or norms in the industry. Answer: TRUE Answer: TRUE Answer: TRUE A quick feasibility study should

Capital budgets project expenditures on new equipment, vehicles, computers, or new facilities. Answer: TRUE Answer: TRUE Answer: TRUE Investors often spend a lot of time conducting background checks. Answer: TRUE Answer: TRUE Answer: TRUE Culture encompasses a wide variety of elements, including language, social structure, religion, political philosophy, economic philosophy, education, and manners

The entrepreneur's market knowledge is deeper than the knowledge that could be gained through market research. Answer: TRUE Answer: TRUE Answer: TRUE Experience is idiosyncraticunique to the life of the individual. Answer: TRUE Answer: TRUE Answer: TRUE In the product development stage, consumer reaction to the physical product/service is determined.

The Internet is a good source for primary information, but does not provide many secondary sources. Answer: FALSE Answer: FALSE Answer: FALSE The limited liability company is automatically taxed as a corporation. Answer: FALSE Answer: FALSE Answer: FALSE In a leveraged buyout, the entrepreneur uses equity funds to purchase an existing venture for cash. Answer: FALSE Answer:

To be successful the partners in a joint venture should have symmetry. Answer: TRUE Answer: TRUE Answer: TRUE The marketing plan is not meant to be a commitment by the entrepreneur to a specific strategy. Answer: FALSE Answer: FALSE Answer: FALSE A trademark is a distinguishing word, name, or symbol used to identify

There is more risk involved in financing a business's early operations, therefore, higher rates of return are expected. Answer: TRUE Answer: TRUE Answer: TRUE The process of writing the business plan provides a self-assessment for the entrepreneur. Answer: TRUE Answer: TRUE Answer: TRUE Entrepreneurs have stronger intentions to act when

Management needs to look at the marketing plan as a guide for implementing marketing decision making and not as a generalized, superficial document. Answer: TRUE Answer: TRUE Answer: TRUE In order to increase their chances for success, an entrepreneur should approach all possible venture capital firms with proposals. Answer: FALSE Answer: FALSE Answer:

An error of commission occurs from the decision not to act on a new entry opportunity. Answer: FALSE Answer: FALSE Answer: FALSE The sponsoring company in a R&D limited partnership is the limited partner. Answer: FALSE Answer: FALSE Answer: FALSE Depreciation is considered a cash outlay, not an expense. Answer: FALSE Answer: FALSE Answer: FALSE Effective time management can

The Euromonitor provides very industry specific information on companies in the European Union. Answer: FALSE Answer: FALSE Answer: FALSE The reason that many noncompete agreements, which help protect trade secrets, are thrown out of court is that they are poorly structured and written. Answer: TRUE Answer: TRUE Answer: TRUE The type of funds

Role models are individuals who give psychological support to the entrepreneur especially during the start-up phase. Answer: FALSE Answer: FALSE Answer: FALSE Balance sheet items are carried at cost, a good indicator of fair market value in valuing a company. Answer: FALSE Answer: FALSE Answer: FALSE Even when cash flow problems are discovered, the pro forma

One of the most successful diversification strategies is to diversify into unrelated products or unrelated markets to spread the risk. Answer: FALSE Answer: FALSE Answer: FALSE The return on investment ratio measures the ability of the firm to repay long-term debt using current assets. Answer: FALSE Answer: FALSE Answer: FALSE An acquisition is the purchase of

Focus groups are an informal method for gathering in-depth marketing information. Answer: TRUE Answer: TRUE Answer: TRUE In the partnership, profit and loss distribution is determined by the partnership agreement. Answer: TRUE Answer: TRUE Answer: TRUE Reference groups in any culture provide values and attitudes that influence behavior. Answer: TRUE

Technological uncertainty is eliminated by a superior technology. Answer: FALSE Answer: FALSE Answer: FALSE The sale of the company to employees is an exit strategy. Answer: TRUE Answer: TRUE Answer: TRUE A trademark is given a 50-year registration with no renewal. Answer: FALSE Answer: FALSE Answer: FALSE The files of the U.S. Patent Office are kept

To implement participative management the entrepreneur should have open communication with employees. Answer: TRUE Answer: TRUE Answer: TRUE A reasonable profit that is earned with conservative estimates is not considered to be an initial success for a new venture. Answer: FALSE Answer: FALSE Answer: FALSE By understanding more about the other party, the