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A market penetration strategy involves actions taken to increase the sales of a product or service through greater marketing efforts or through increased product capacity and efficiency. Answer: Although a board of directors has formal governance responsibilities, its most useful […]

General Motors operates a ________ franchise system. A) product format and trademark B) product extension C) product and trademark D) business format E) business format and trademark Answer: The Savvy Entrepreneurial Firm feature in Chapter 10 focuses on the manner […]

A firm’s target market is the limited group of individuals or businesses that it goes after or tries to appeal to. Answer: A business plan can usually be completed in one to three days. Answer: FALSE An idea is a […]

Debt financing involves ________. A) raising venture capital or securing a private placement B) selling corporate bonds or selling stock via an IPO C) getting a grant or selling corporate bonds D) getting a loan or raising venture capital E) […]

A prototype is ________. A) a form of opportunity recognition B) a tool for evaluating the industry a new firm plans to enter C) a financial model D) the first physical depiction of a new product E) a tool for […]

In a link joint venture, the partners collaborate at a single point in the value chain to gain economies of scale in production or distribution. Answer: A niche market is a place within a market segment that represents a narrow […]

The Savvy Entrepreneurial Firm feature in Chapter 2 focuses on a technique through which entrepreneurs can learn about emerging trends. The technique focused on in the chapter is ________. A) online databases B) newspapers and magazines C) targeted Internet searches […]

Which of the following is not one of the four factors identified in the textbook as critical in selecting a form of business ownership? A) The cost of setting up and maintaining the legal form B) The number and types […]

There are three basic requirements for a patent to be granted. The subject of the patent application must be ________. A) useful, difficult to copy, and novel in relation to prior arts in the field B) based on cutting edge […]

Loss of proprietary information is a disadvantage of participating in strategic alliances and joint ventures. Answer: Angel investors, private placement, venture capital, and initial public offerings are the most common sources of equity funding. Answer: TRUE The royalty fees a […]

Cody Rodgers is the founder of a company named Extreme Sports Apparel. The company makes apparel products for extreme sports enthusiasts such as rock climbers, triathletes, skateboarders, and BMX bikers. Cody wants his company to pursue a high level of […]

Financial management deals with raising money and managing a company’s finances in a way that achieves the highest rate of return. Answer: Census Bureau data, analyst forecasts, and other pertinent information gleaned through library and Internet research are examples of […]

The primary opportunity available to firms in fragmented industries is consolidation. The most common way to do this is through a geographic roll-up strategy, in which one firm starts acquiring similar firms that are located in different geographic areas. Answer: […]

External growth strategies involve efforts taken within the firm itself, such as new product development, other product-related strategies, and international expansion. Answer: A product attribute map illustrates the strength of a firm’s niche (or target) market relative to competing markets. […]

In the context of international franchising, under a ________ franchise arrangement, the U.S. firm grants the rights to an individual or company (the master franchisee) to develop one or more franchise businesses and to license others to develop one or […]

A/B split testing, landing pages, prototyping services, and Web site usability testing are all online tools available to assist in the ________ stage of developing a business idea. A) opportunity recognition B) feasibility analysis C) business model D) business plan […]

Annie Clarke owns a smartphone app development firm. The way Annie prices her products is to determine what consumers are willing to pay, and then she backs off a bit to provide a cushion. The method that Annie used to […]

Melanie Summer spoke to an investor who is interested in her business idea. Melanie offered to send the investor a copy of her full business plan, but the investor asked for a short overview of the business plan instead. What […]

Entrepreneurship is the process by which individuals pursue opportunities within the constraints of the resources they control. Answer: The major revenue drivers, which are the ways a business earns money, should be first identified in “The Economics of the Business” […]

Which of the following statements is untrue regarding founding teams? A) The members of heterogeneous teams are diverse in terms of their abilities and experiences. B) The members of homogenous teams are very similar in terms of their abilities and […]

The What Went Wrong? feature in Chapter 7 focuses on Fitbit. Fitbit makes wearable activity trackers that measure data such as number of steps walked, quality of sleep, and other personal metrics. The feature centered on a product that Fitbit […]

Large firms like Apple, Facebook, General Electric, and Microsoft, that trade on organized stock exchanges, are ________. A) limited partnerships B) limited liability companies C) subchapter S corporations D) C corporations E) general partnerships Answer: Which of the following statements […]

Patents, trademarks, copyrights, and licenses are the four key forms of intellectual property. Answer: An idea bank is a physical or digital repository for storing ideas. Answer: TRUE Most boards of advisers have between 3 and 5 members. Answer: FALSE […]