ENTREPRENEURSHIP: The Art, Science, and Process for Success 3rd Edition

Chapter 1: The 21st Century Entrepreneur Table of Contents Brief Chapter Outline...............................................................................................2 Chapter Outline and Lecture notes..........................................................................4 Key Terms.............................................................................................................. 11 Suggested Text Responses.................................................................................... 12 Class Activities and Sample Assignments.............................................................15 Discussion Questions for Online/Hybrid classes....................................................17 Lecture Links......................................................................................................... 20 Lecture Link 1.1: Entrepreneurs and New Small Business Planning Goals............20 Lecture Link 1.2: The Advantages of the Small Business Administration (SBA). ..

Chapter 1: The 21st Century Entrepreneur Review Questions p. 17 1. How do entrepreneurial businesses impact the economy? 99.9 percent of all businesses in the US are small. 48 percent of all employees are from the private sector. 33.6 percent of know export value is from small businesses 99.9 percent of all businesses

Chapter 1: The 21st Century Entrepreneur Discussion Questions: 1. When did Michael Dell start his business? Dell started his business when he was in college. was in college. was in college. 2. How did he start the business? Did he require capital? Did he have a partner? Discuss the outcome of your research. He started

Chapter Ten: Human Resource Management Table of Contents Brief Chapter Outline...............................................................................................2 Chapter Outline and Lecture notes..........................................................................3 Key Terms................................................................................................................ 9 Suggested Text Responses.. 11 Class Activities and Sample Assignments.............................................................14 Discussion Questions for Online/Hybrid classes....................................................15 Lecture Links......................................................................................................... 18 Lecture Link 10.1: The ADA & the New Entrepreneur.........................................18 Lecture Link 10.2: The Attorney Relationship at the New Small Business..........19 Lecture Link

Chapter Ten: Human Resource Management Key Terms Bonus: Similar to profit sharing, a reward offered to the employees based on their performance. Typically, bonus systems are not as well defined as profit sharing; instead, the level of reward is left to the discretion of the entrepreneur. (LO 10-3) Commission: Payment by the entrepreneur of

Chapter Ten: Human Resource Management Bonus Internet Exercises Bonus Internet Exercise 10.1: OSHA & the New Entrepreneur (LO 10-5) The Occupational Safety and Health Administration (OSHA) is the government agency that ensures employers prevent work-related injuries, illnesses, and deaths. OSHA was established in 1971 and the outcome of its work enhances workplace efficiency of

Chapter Eleven: Marketing Table of Contents Brief Chapter Outline...............................................................................................2 Chapter Outline and Lecture notes..........................................................................3 Key Terms.............................................................................................................. 11 Suggested Text Responses..12 Class Activities and Sample Assignments.............................................................15 Discussion Questions for Online/Hybrid classes....................................................16 Lecture Links......................................................................................................... 19 Lecture Link 11.1: Customer Relationship Management for the Entrepreneur...19 Lecture Link 11.2: Clubs & Organizations Enhance Entrepreneurship................20 Lecture Link 11.3: Security, Privacy and the Entrepreneur................................21

Chapter Eleven: Marketing Key Terms Bootstrap marketing: Marketing efforts that require little capital. (LO 11-3) Contract sales force: Independent salespeople with a wide variety of experiences and contacts, provided by a company on a contract basis. (LO 11-4) Cost-plus pricing: Pricing in which the entrepreneur initially determines the cost structure and then determines

Chapter Eleven: Marketing Lecture Links Lecture Link 11.1: Customer Relationship Management for the Entrepreneur (LO 11-4) The authors in the text discussed that sales management refers to the individuals who build and maintain relationships with customers, as well as to the methods and means by which they do this (text page 217). Entrepreneurs

Chapter Twelve: Establishing Operations Table of Contents Brief Chapter Outline...............................................................................................2 Chapter Outline and Lecture notes..........................................................................4 Key Terms.............................................................................................................. 12 Suggested Text Responses.. 13 Class Activities and Sample Assignments.............................................................15 Discussion Questions for Online/Hybrid classes....................................................17 Lecture Links......................................................................................................... 20 Lecture Link 12.1: The Federal Reserve System (Fed)...................................20 Lecture Link 12.2: Federal Deposit Insurance Corporation (FDIC)..................22 Lecture Link 12.3: Time Management and Stress Reduction

Chapter Twelve: Establishing Operations Review Questions p. 241 1. Why is a critical path chart useful to potential investors? A critical path chart shows that the entrepreneur has investigated the idea sufficiently. The investor can usethe chart to determine at what points funding will be needed. shows that the entrepreneur has investigated the

Chapter Twelve: Establishing Operations Bonus Internet Exercises Bonus Internet Exercise 12.1: Establish the Bank Relationship (LO 12-3) The authors discussed the important concepts related to the establishment of a professional banking relationship with a banker at a bank or financial institution. Consider the relationship you require to establish the finance operations at your new

Chapter Thirteen: Exit/Harvest/Turnaround Table of Contents Brief Chapter Outline.................................................................................................. 2 Chapter Outline and Lecture notes.............................................................................3 Key Terms................................................................................................................. 16 Suggested Text Responses...17 Class Activities and Sample Assignments.................................................................20 Discussion Questions for Online/Hybrid classes.......................................................21 Lecture Links............................................................................................................ 24 Lecture Link 13.1: Valuing the Business.............................................................24 Lecture Link 13.2: Evaluate the Loan Request...................................................25 Lecture Link 13.3: Angels on the Directory for Entrepreneurs...........................26 Bonus Internet Exercises..........................................................................................27 Bonus

Chapter Thirteen: Exit/Harvest/Turnaround A. Preparing the business for sale i. Selling a business is a process. ii. Ensure that the business looks good in order to obtain the highest premium iii. A leadership change must be considered iv. Workers have had specific job tasks with very little cross-training 1. The business owners job duties included

Chapter Thirteen: Exit/Harvest/Turnaround Review Questions (p.253) 1. Why would an entrepreneur seek to exit a business? The business may no longer be interesting or enjoyable, may take too much time or there may be other opportunitiesavailable. be interesting or enjoyable, may take too much time or there may be other opportunitiesavailable. be interesting or enjoyable,

Chapter Thirteen: Exit/Harvest/Turnaround Critical Thinking Exercises Critical Thinking Exercise 13.1: Defining Valuation Techniques (LO 13-2) The authors in the text discussed that small firms are private and, therefore, they do not report their earnings to the public. The new business owner maximizes the value or selling price of the firm. Define the five methods

Chapter Fourteen: Franchising and Purchasing an Existing Business Table of Contents Brief Chapter Outline.................................................................................................. 2 Chapter Outline and Lecture notes.............................................................................3 Key Terms................................................................................................................. 15 Suggested Text Responses.. 16 Class Activities and Sample Assignments.................................................................18 Discussion Questions for Online/Hybrid classes.......................................................19 Lecture Links............................................................................................................ 22 Lecture Link 14.1: The International Franchise Association (IFA)..............................22 Lecture Link 14.2: The Small Business Franchise Act (SBFA)....................................23 Lecture Link 14.3:

Chapter Fourteen: Franchising and Purchasing an Existing Business Review Questions p. 279 1. How does a franchise work? Franchising can be viewed as the new business entrepreneurs creation of a business from a well-established formula. The franchisee is buying a pre-packaged business where policies, procedures, and buying patterns are in place prior to

Chapter Fourteen: Franchising and Purchasing an Existing Business 1. What are the five general franchise questions that an entrepreneur should ask about the franchise? 1) Evaluate ones interest and skills to determine whether or not there is a fit with the franchise and identify an industry or industries in which to purchase a

Ch. 2: Individual Leadership and Entrepreneurial Start-Ups Table of Contents Brief Chapter Outline...............................................................................................2 Chapter Outline and Lecture notes..........................................................................3 Key Terms.............................................................................................................. 10 Suggested Text Responses.................................................................................... 11 Class Activities and Sample Assignments.............................................................14 Discussion Questions for Online/Hybrid classes....................................................15 Lecture Links......................................................................................................... 18 Lecture Link 2.1: Incubators and the Concept of Legitimacy.................................18 Lecture Links 2.2: Social Networking in Practice...................................................20 Lecture Link 2.3: Do Not

Ch. 2: Individual Leadership and Entrepreneurial Start-Ups Key Terms Agency Theory: A managerial theory that believes individuals act to maximize their own benefit. Thus, in settings where there is a split between ownership and control (as in most publicly traded corporations) the agents (managers) must be monitored or they will act to

Ch. 2: Individual Leadership and Entrepreneurial Start-Ups Bonus Internet Exercise 2.3: Personality and the Entrepreneu The authors in the text emphasized that individuals who are outgoing are considered to be extroverted. Those individuals who have limited interpersonal interactions are said to be introverted. Potential entrepreneurs that are extroverted will thrive in a business

Chapter Three: Business Idea Generation and Initial Evaluation Table of Contents Brief Chapter Outline. 2 Chapter Outline and Lecture notes..........................................................................3 Key Terms.............................................................................................................. 11 Suggested Text Responses..12 Class Activities and Sample Assignments14 Discussion Questions for Online/Hybrid classes....................................................16 Lecture Links......................................................................................................... 19 Lecture Link 3.1: M-Commerce and the Entrepreneur........................................19 Lecture Link 3.2: E-Commerce and the Entrepreneur........................................20 Lecture Link 3.3: Assess Your Skills....................................................................21 Bonus

Chapter Three: Business Idea Generation and Initial Evaluation Key Terms Brainstorming: A creative process whereby a group of individuals are brought together and asked to generate ideas with little or no effort made to evaluate the potential for each idea. Rather the focus is to generate numerous ideas. (LO 3-2) and asked to generate

Chapter Three: Business Idea Generation and Initial Evaluation Lecture Links Lecture Link 3.1: M-Commerce and the Entrepreneur (LO 3-2) The world has changed as a result of M-commerce, also known as mobile commerce, as it relates to technological advances in the United States and abroad. It is easy to surmise that this M-commerce phenomenon

Chapter Four: External Analysis Table of Contents Brief Chapter Outline...............................................................................................2 Chapter Outline and Lecture notes..........................................................................3 Key Terms.............................................................................................................. 12 Suggested Text Responses...13 Class Activities and Sample Assignments.............................................................16 Discussion Questions for Online/Hybrid classes....................................................18 Lecture Links......................................................................................................... 21 Lecture Link 4.1: The North American Industry Classification System (NAICS). .21 Lecture Link 4.2: External Analysis of Competitors............................................22 Lecture Link 4.3: How about industry trends

Chapter Four: External Analysis Key Terms Benchmarking: Working with and learning from a company outside of your industry that has a particular skill that is potentially critical to your operation. (LO 4-5) Competitive Advantage: The edge a business has over competing businesses, made up of those things that the business does better than

Chapter Four: External Analysis Lecture Links Lecture Link 4.1: The North American Industry Classification System (NAICS) (LO 4-1) www.census.gov/epcd/www/naics.html The North American Industry Classification System (NAICS) are industry codes issued by the government to gather data, publish data, and track data. The two ways to find national industry types is to use the categories developed

Chapter Five: Business Mission and Strategy Table of Contents Brief Chapter Outline...............................................................................................2 Chapter Outline and Lecture notes..........................................................................3 Key Terms. .12 Suggested Text Responses. ..13 Class Activities and Sample Assignments.............................................................15 Discussion Questions for Online/Hybrid classes....................................................16 Lecture Links......................................................................................................... 19 Lecture Link 5.1: Government Promotes Small Business Initiatives...................19 Lecture Link 5.2: U.S. Current Population Survey...............................................21 Lecture Link 5.3: State and Local Governments on

Chapter Five: Business Mission and Strategy Key Terms Capabilities: Resources that combine to allow a firm to do the things better than its competitors. (LO 5-1) Economic rents: Financial gains garnered from an asset or capability that are in excess of the ordinary returns in that particular industry. (LO 5-5) First-mover advantage: The

Chapter Five: Business Mission and Strategy Critical Thinking Exercises Critical Thinking Exercise 5.1: Mission: Targeting Entrepreneurial Success (LO 5.-1) In Chapter Five, the authors emphasized that an effective mission statement guides the organization to achieve its goals or objectives. A new small business owner considers the competitive market of the firm, the broad geographic

Chapter Six: Analyzing Cash Flow and Other Financial Information Table of Contents Brief Chapter Outline.................................................................................................. 2 Chapter Outline and Lecture notes.............................................................................3 Key Terms................................................................................................................... 7 Suggested Text Responses 9 Class Activities and Sample Assignments.................................................................11 Discussion Questions for Online/Hybrid classes.......................................................12 Lecture Links............................................................................................................ 15 Lecture Link 6.1: Social Responsibility and the Entrepreneur............................15 Lecture Link 6.2: Inc. Magazines Fastest Growing Companies..........................17 Lecture Link

Chapter Six: Analyzing Cash Flow and Other Financial Information Key Terms Balance sheet: A summary of the assets and liabilities of the entrepreneurial business. (LO 6-3) Break-even analysis: Tool for the estimation of when a businesss income exceeds its expenses. (LO 6-3) Budget: Statement that projects all the costs that will be incurred by

Chapter Six: Analyzing Cash Flow and Other Financial Information Bonus Internet Exercises Bonus Internet Exercise 6.1: Financial Resources and the New Entrepreneur (LO 6-1, 6-2, 6-3) In this chapter the authors focused on cash flow, budgets, and other financial tools to assist the new entrepreneur with the financial planning needs for a new business.

Chapter Seven: Financing and Accounting Table of Contents Brief Chapter Outline.................................................................................................. 2 Chapter Outline and Lecture notes.............................................................................3 Key Terms................................................................................................................. 12 Suggested Text Responses...14 Review Questions.15 Class Activities and Sample Assignments.................................................................17 Discussion Questions for Online/Hybrid classes.......................................................18 Lecture Links............................................................................................................ 21 Lecture Link 7.1: Federal Accounting Standards Board (FASB)..........................21 Lecture Link 7.2: Venture Capital for the New Entrepreneurial Business...........22 Lecture Link 7.3: Social

Chapter Seven: Financing and Accounting Key Terms Asset-based lending: A loan provided for the purchase of a necessary asset for the business. (LO 7-2) Asset lease: A form of lease tied to a particular asset used by a business to conserve cash and maintain the latest versions of whatever equipment is available. (LO

Chapter Seven: Financing and Accounting Lecture Links Lecture Link 7.1: Federal Accounting Standards Board (FASB) (LO 7-1, 7-2, 7-3) The Federal Accounting Standards Board (FASB) is the organization that establishes standards for financial accounting in the private sector (FASB: Financial Accounting Standards Board)i. One of their objectives is to simplify accounting standards. Visit their

Chapter Eight: Financial Analysis Table of Contents Brief Chapter Outline...............................................................................................2 Chapter Outline and Lecture notes..........................................................................4 Key Terms.............................................................................................................. 16 Suggested Text Responses..17 Class Activities and Sample Assignments.............................................................20 Discussion Questions for Online/Hybrid classes....................................................21 Lecture Links......................................................................................................... 24 Lecture Link 8.1: Entrepreneurs Create Surveys at the New Small Business.....24 Lecture Link 8.2: Financial Ratios for American Express....................................25 Lecture Link 8.3: Auditing Standards

Chapter Eight: Financial Analysis D. Leverage ratios i Ratios that are used to examine the relative level of indebtedness of the entrepreneurial business ii. Three ratios evaluate the level of indebtedness of a business 1. Debt-to-Equity a. Ratio provides data about the portion of the business owned by lenders versus the portion of business owned

Chapter Eight: Financial Analysis Key Terms Activity ratios: Ratios that measure the efficiency with which the entrepreneur is handling the resources of the business. (LO 8.4) Deviation analysis: An analysis of the differences between the predicted and the actual performance. (LO 8.5) Leverage ratios: Ratios that are used to examine the relative level of

Chapter Eight: Financial Analysis Critical Thinking Exercise 8.1 Evaluating Sensitivity Analysis - Notes The answers in this lesson might vary depending upon the student research. 1. Discuss the steps required to perform a sensitivity analysis can be performed on historical data. Why is this analysis important to a business owner? The new business

Chapter Nine: Establishing the Legal Foundation Table of Contents Brief Chapter Outline...............................................................................................2 Chapter Outline and Lecture notes..........................................................................4 Key Terms.............................................................................................................. 14 Suggested Text Responses 16 Class Activities and Sample Assignments.............................................................19 Discussion Questions for Online/Hybrid classes....................................................21 Lecture Links......................................................................................................... 25 Lecture Link 9.1: Commercial Law for the New Entrepreneur............................25 Lecture Link 9.2: New Small Business and the IRS.............................................26 Lecture Link 9.3: The

Chapter Nine: Establishing the Legal Foundation Key Terms Americans with Disabilities Act (ADA) Specifies protections in business for those with disabilities. (LO 9-4) Board of Advisors: A group formed at the discretion of the founders (regardless of the legal form chosen) and composed of individuals outside the business who advise the founders. (LO

Lecture Links Lecture Link 9.1: Commercial Law for the New Entrepreneur (LO 9-1) The authors in the text discussed that one important element to understand and operate a business is to gain a fundamental understanding of the basics of Commercial Law. This topic is important to explore because a new small business owner

1 Answer: TRUE Explanation: One of the three critical elements that an entrepreneur has to solve for success is the ability to generate consistent and growing sales. The other critical elements are having sustainable operating profit margins and being properly financed. Difficulty: 1 Easy Topic: Why Start a Business? Learning

21 Answer: D Explanation: Charles Wilson, secretary of defense, implied that what was good for a big business would be good for all of the people in the country. Difficulty: 1 Easy Topic: A Brief History of Entrepreneurial Businesses in the United States Learning Objective: 01-02 Discuss the history of

34 Answer: D Explanation: A well-thought-out business plan has heightened importance for a new business. You should not use a cookie-cutter business plan program because each business plan should have its own voice, feel, and presentation. It is best developed by the individual contemplating the business, not by a paid

1 Answer: TRUE Explanation: Human resources has been defined in economics as the quantity and quality of human effort directed toward producing goods and services. The success of entrepreneurial firms pursuing new opportunities requires a number of deliberate actions by the business founder concerning human resources issues. Difficulty: 1 Easy

17 Answer: C Explanation: Commission is a percentage of sales. Difficulty: 1 Easy Topic: The Means for Retaining Employees Learning Objective: 10-03 Analyze the means for retaining employees. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 17 Answer: C Explanation: Commission is a percentage of sales. Difficulty: 1 Easy Topic:

1 Answer: TRUE Explanation: A firm's marketing efforts need to be as clearly stated as its mission or strategy statement. Instead of trying to reach every individual on the market, the firm should concentrate its marketing efforts on those individuals most likely to buy its products or services. Difficulty: 2

16 Answer: A Explanation: A loss leader is a product or service that is sold at a nonoperating loss to simply get customers in the store. Firms use this type of product to spur sales rather than to generate profits. Difficulty: 1 Easy Topic: How to Develop a Pricing Model

1 Answer: FALSE Explanation: Assigning responsibilities and estimated times is more than an intellectual activity. Difficulty: 2 Medium Topic: The Use of a Critical Path Chart Learning Objective: 12-01 Discuss the use of a critical path chart. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 1 Answer: FALSE Explanation: Assigning

19 Answer: D Explanation: Legitimacy is the term used to discuss the acceptance by key stakeholders that your business is more than just a "start-up" and will be successful. Difficulty: 1 Easy Topic: The Various Methods with Which a New Firm Establishes Legitimacy in the Market Learning Objective: 12-04 Distinguish

1 Answer: FALSE Explanation: Developing a practical exit plan can provide some peace of mind to the family and investors so they know what to expect if things do not go as planned. Difficulty: 1 Easy Topic: Need for Developing an Exit or Harvest Plan and Ideal Timing for That

19 Answer: C Explanation: Price/earnings valuation is a relatively straightforward system that uses the industry in which a start-up operates. The founder should locate the P/E ratio for public companies in the same industry via the many sources of this information (the Internet, The Wall Street Journal, the library, etc.).

1 Answer: FALSE Explanation: A franchisee pays a fee to obtain a franchise. Difficulty: 1 Easy Topic: The Elements of Franchising Learning Objective: 14-01 Describe the elements of franchising. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 1 Answer: FALSE Explanation: A franchisee pays a fee to obtain a franchise.

18 Answer: D Explanation: When determining the industry to enter, each potential franchisee should examine that industry, the potential competitors in the industry, and their position relative to other new franchisees that are entering the industry. Difficulty: 2 Medium Topic: The Process of Buying a Franchise Learning Objective: 14-02 Explain

1 Answer: TRUE Explanation: These excess resources are referred to as organizational slack; they allow large organizations flexibility that is not available to smaller companies. Difficulty: 1 Easy Topic: Founders Are the Reason Why Entrepreneurial Businesses Work So Well Learning Objective: 02-01 Explain how entrepreneurial founders impact the business world

19 Answer: C Explanation: Bounded rationality is rational decision-making that is constrained by the background and history of the person making the decision. Difficulty: 1 Easy Topic: Evaluating Your Entrepreneurial Orientation Learning Objective: 02-02 Discuss the importance of an entrepreneurial orientation. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 19

1 Answer: FALSE Explanation: The generation of business ideas is not something that occurs automatically. Rather, it is a process of identifying the skills of the potential founders, identifying opportunities in the market, matching the initial financial funding available, and then marrying these together into a business idea that interests

17 Answer: C Explanation: Brainstorming is a creative process where individuals are brought together to come up with ideas about a specific topic or problems, with little effort given to evaluating the true potential. Difficulty: 3 Hard Topic: Opportunity Identification Learning Objective: 03-02 Discuss the elements of opportunity analysis. Bloom's:

1 Answer: FALSE Explanation: The key to effective opportunity recognition is a detailed understanding of the external environment. Difficulty: 1 Easy Topic: Defining Your Industry Learning Objective: 04-01 Describe how to examine the industry that the new business plans to enter. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 1

21 Answer: A Explanation: When defining potential customers, an owner must define a specified radius around the business. Difficulty: 2 Medium Topic: Defining Your Customers Learning Objective: 04-02 Discuss how to create a profile of the target customers for a new business. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation

34 Answer: B Explanation: This scenario exemplifies benchmarking. Janice works with and learns from a company outside of her own industry that has a particular skill that is potentially critical to her organization's operation. Difficulty: 3 Hard Topic: Additional Issues for External Analysis Learning Objective: 04-05 Ensure that the entrepreneur

1 Answer: FALSE Explanation: Although large companies can afford to have people who just follow procedures rather than use all of their skills and creative abilities, new businesses cannot afford to limit their employees. The entrepreneurial business needs to align employees in a consistent direction and allows them to use

21 Answer: A Explanation: The greatest source of sustainable competitive advantage is founded in personal relationships with customers. Difficulty: 1 Easy Topic: Sustainable Competitive Advantage Learning Objective: 05-02 Explain what constitutes a sustainable competitive advantage. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 21 Answer: A Explanation: The greatest source

32 Answer: B Explanation: A firm's strategy is how the firm plans to use the competitive advantage of the business to accomplish its mission. Thus, the mission is the foundation on which the firm's strategy is built. Strategy is a complex field of study. Difficulty: 1 Easy Topic: Strategy Learning

1 Answer: TRUE Explanation: A firm obtains profits when its sales revenue is higher than its expenses. Difficulty: 2 Medium Topic: Importance of Cash Flow Analysis Learning Objective: 06-01 Recognize the fundamental importance of cash flow analysis. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 1 Answer: TRUE Explanation: A

19 Answer: C Explanation: The founders tried to include every actual expense that would be incurred in the first six months of operation. The receipts were estimated by observing their competitors. Difficulty: 2 Medium Topic: Importance of Cash Flow Analysis Learning Objective: 06-01 Recognize the fundamental importance of cash flow

1 Answer: TRUE Explanation: Equity investment is funds received by a business in exchange for a percentage of ownership of the business. Difficulty: 3 Hard Topic: Basics of Funding a Business Learning Objective: 07-02 Discuss the basics of funding a business. Bloom's: Apply AACSB: Reflective Thinking Accessibility: Keyboard Navigation 1

18 Answer: B Explanation: Venture capital fund is usually organized as a limited partnership. Difficulty: 1 Easy Topic: Basics of Funding a Business Learning Objective: 07-02 Discuss the basics of funding a business. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 18 Answer: B Explanation: Venture capital fund is usually

1 Answer: TRUE Explanation: A core element of the lean start-up approach is the use of many small experiments with customers in order to refine the product or service. Rather than trying to craft up the entire business model and delivering to the customer with the hope that it will

19 Answer: D Explanation: Activity ratios measure the efficiency with which an entrepreneur can handle his or her business's resources. Difficulty: 1 Easy Topic: Ratio Analysis Learning Objective: 08-04 Explain ratio analysis. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 19 Answer: D Explanation: Activity ratios measure the efficiency with

1 Answer: TRUE Explanation: A sole proprietorship is the simplest form of business to establish, as the person who owns it and the business itself are treated as the same entity. Difficulty: 1 Easy Topic: Various Legal Forms of Business to Determine the Best Design for a Proposed New Business

20 Answer: D Explanation: Sole proprietorship is the simplest form of business to establish. Difficulty: 1 Easy Topic: Various Legal Forms of Business to Determine the Best Design for a Proposed New Business Learning Objective: 09-01 Discuss the various legal forms of business to determine the best design for a