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Angel investors have a longer investment horizon than venture capitalists do. Financial ratios are control mechanisms to test the financial strengths of a new venture. 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. Bankruptcy protects entrepreneurs from creditors and competitors. Answer: FALSE Traditionally managed firms commitment to opportunity is revolutionary with a long duration. Answer: FALSE A business, when it […]

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

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

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

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

The entrepreneur’s market knowledge is deeper than the knowledge that could be gained through market research. Experience is idiosyncraticunique to the life of the individual. 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. The limited liability company is automatically taxed as a corporation. Answer: FALSE In a leveraged buyout, the entrepreneur uses equity funds to purchase an […]

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

There is more risk involved in financing a business’s early operations, therefore, higher rates of return are expected. The process of writing the business plan provides a self-assessment for the entrepreneur. 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. In order to increase their chances for success, an entrepreneur should approach all possible venture capital firms […]

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

The Euromonitor provides very industry specific information on companies in the European Union. 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 The […]

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

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

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

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

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