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A trademark is registered with the: A) U.S. Commerce Department B) Federal Trade Commission C) Securities and Exchange Commission D) Federal Patent, Copyright, and Trademark Office E) U.S. Patent and Trademark Office Answer: According to the textbook, one of the […]

The two components of industry/target market feasibility analysis are: A) industry status and target market status B) industry attractiveness and target market attractiveness C) industry sufficiency and target market demand D) industry attractiveness and product/service demand E) industry evolution and […]

________ is a financial transaction whereby a business sells its accounts receivable to a third party at a discount in exchange for cash. A) Factoring B) Vendor credit C) Peer-to-peer lending D) Crowdfunding E) Leasing Answer: Which of the following […]

Entrepreneurs are usually moderate, rather than high, risk-takers. Answer: Many startups emphasize advertising over public relations primarily because it’s cheaper and helps build the firm’s credibility. Answer: FALSE Primary research is research that is collected by the person or persons […]

According to the opening feature on GiftZip, raising funding was the biggest challenge that Sam Hogg experienced in making his company a success. Answer: The percentage of the profits the venture capitalist gets is called the “carry.” Answer: TRUE A […]

A ________ is a place within a market segment that represents a narrower group of customers with similar interests. A) position market B) niche market C) slot market D) spot market E) gap market Answer: If a new venture organizes […]

A mature industry is an industry that is experiencing slow increases in demand, numerous repeat customers, and limited product innovation. Answer: There are two components to product/service feasibility analysis: product/service desirability and total startup funds needed. Answer: FALSE The process […]

As part of drumming up support for an IPO, the investment bank typically takes the top management team of the firm wanting to go public on a ________, which is a whirlwind tour that consists of meetings in key cities […]

Some firms feel that they can better appeal to their customers if they can advertise that they are “the Number 1 firm” in their industry. This sentiment is motivated by the reason for growth labeled: A) economies of scope B) […]

The five stages of the creative process include preparation, incubation, insight, evaluation, and elaboration. Answer: Prior entrepreneurial experience, relevant industry experience, and networking are attributes that strengthen the chances of a founder’s success. Answer: TRUE It is more likely that […]

According to the textbook, the toughest decisions regarding business growth are made in the ________ stage of the organizational life cycle. A) introduction B) early growth C) continuous growth D) maturity E) decline Answer: The people who buy franchises from […]

Firms that pursue a global strategy use the same basic approach in all foreign markets. Answer: There are four factors that determine the threat of new entrants: number and balance of competitors, degree of difference between products, growth rate of […]

If a firm’s debt-to-equity ratio gets too high, it may have trouble meeting its obligations and securing the level of financing needed to fuel its growth. Answer: A referent account is an early user of a firm’s product who is […]

Katlin Smith is investigating the feasibility of developing an iPhone app to help high school students with math. To get a good handle on the potential demand for her service, Katlin is scrounging around for information wherever she can find […]

The ability to notice things without engaging in deliberate search is referred to as: A) cognitive alertness B) cognitive awareness C) managerial alertness D) entrepreneurial alertness E) individual awareness Answer: A(n) ________, which is intended to be a blueprint for […]

Which of the following statements is incorrect regarding the marketing plan section of a business plan? A) The marketing plan focuses on how the business will market and sell its product or service. B) The two most important items to […]

The term of a utility patent is: A) 7 years from the date the patent is granted B) 15 years from the date of the initial application C) 15 years from the date the patent is granted D) 20 years […]

The three ways to identify an opportunity include: A) observing trends, solving a problem, and finding gaps in the marketplace B) studying industry trade journals, talking to consumers, and solving a problem C) observing trends, conducting brainstorming sessions, and studying […]

A hub and wheel configuration with a local firm at the hub organizing the interdependencies of a complex array of firms is referred to as a: A) trade association B) strategic alliance C) network D) joint venture E) consortia Answer: […]

The 1976 Copyright Revision Act governs copyright law in the United States. Answer: Variable costs are the costs a company incurs as it generates sales. Answer: TRUE A firm’s “position” is concerned with how it is situated relative to its […]

Market leadership occurs when a firm is one of the top ten firms in an industry or niche market in terms of sales volume. Answer: A buying intentions survey is used to gauge customer interest in a product or service. […]

The Savvy Entrepreneurial Firm feature in Chapter 2 focuses on Xhale and Vestagen, two entrepreneurial startups. While each firm is different and is successful in its own right, the main point of the feature is to illustrate that: A) entrepreneurial […]

The management team and company structure section of a business plan is one of the lesser read sections. Answer: Licensing is the granting of permission by one company to another company to use a specific form of its intellectual property […]