Entrepreneurship: Successfully Launching New Ventures 4th Edition

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: E E E According to the textbook, one of the first companies in the United States to utilize franchising was: A) McDonald's B) Singer Sewing Machine C) H&R Block D)

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 target market attractiveness Answer: B B B The Partnering for Success feature in Chapter 8 focuses on buying groups,

________ 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: A A A Which of the following statement is incorrect about business plans? A) Writing a business plan forces a firm's founders to systematically think

Entrepreneurs are usually moderate, rather than high, risk-takers. Answer: TRUE TRUE TRUE Many startups emphasize advertising over public relations primarily because it's cheaper and helps build the firm's credibility. Answer: FALSE FALSE FALSE Primary research is research that is collected by the person or persons completing the analysis. Answer: TRUE TRUE TRUE According to the textbook, the executive summary is arguably the

According to the opening feature on GiftZip, raising funding was the biggest challenge that Sam Hogg experienced in making his company a success. Answer: FALSE FALSE FALSE The percentage of the profits the venture capitalist gets is called the "carry." Answer: TRUE TRUE TRUE A disadvantage of a sole proprietorship is that it is subject to double taxation.

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: B B B If a new venture organizes as a corporation, it is legally required to have a(n) ________, which is a panel of individuals

A mature industry is an industry that is experiencing slow increases in demand, numerous repeat customers, and limited product innovation. Answer: TRUE TRUE TRUE There are two components to product/service feasibility analysis: product/service desirability and total startup funds needed. Answer: FALSE FALSE FALSE The process of adapting a company's core competencies to exploit new opportunities is referred to

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 where the firm presents its business plan to groups of

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) need to accommodate the growth of key customer C) economies of scale D) market

The five stages of the creative process include preparation, incubation, insight, evaluation, and elaboration. Answer: TRUE TRUE TRUE Prior entrepreneurial experience, relevant industry experience, and networking are attributes that strengthen the chances of a founder's success. Answer: TRUE TRUE TRUE It is more likely that an entrepreneur will get a new business idea through a strong-tie than a

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: C C C The people who buy franchises from master franchises are typically called: A) minor franchisees B) secondary franchisees C) mini-franchisees D) subordinate franchisees E) subfranchisees Answer: E E E Debt financing involves: A)

Firms that pursue a global strategy use the same basic approach in all foreign markets. Answer: TRUE TRUE TRUE There are four factors that determine the threat of new entrants: number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs. Answer: FALSE FALSE FALSE The number of angel

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: TRUE TRUE TRUE A referent account is an early user of a firm's product who is willing to give a testimonial regarding his or her experience with

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 it. She even spent two weeks volunteering as a math

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: D D D A(n) ________, which is intended to be a blueprint for a company's operations, is 40-100 pages long and is meant primarily for an internal audience. A) operational

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 include in a marketing plan are (1) overall marketing strategy and (2) the

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 from the date of the initial application E) 20 years from the date the patent

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 industry trade journals D) observing trends, talking to consumers, and finding gaps in the

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: C C C Which of the following is the primary disadvantage of licensing as a foreign market entry strategy? A)

The 1976 Copyright Revision Act governs copyright law in the United States. Answer: TRUE TRUE TRUE Variable costs are the costs a company incurs as it generates sales. Answer: TRUE TRUE TRUE A firm's "position" is concerned with how it is situated relative to its rivals. Answer: TRUE TRUE TRUE Efficiency is the ability to earn a profit. Answer: FALSE FALSE FALSE Two fatal flaws can

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: FALSE FALSE FALSE A buying intentions survey is used to gauge customer interest in a product or service. Answer: TRUE TRUE TRUE By studying a product's value chain, an organization can identify ways

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 startups can solve the same problem in different ways B) entrepreneurial firms

The management team and company structure section of a business plan is one of the lesser read sections. Answer: FALSE FALSE FALSE Licensing is the granting of permission by one company to another company to use a specific form of its intellectual property under clearly defined conditions. Answer: TRUE TRUE TRUE The people who buy franchises from master