Archives

Entrepreneurs typically have a vision of where they want their businesses to go, and generally that vision is on a regional, national, or (more often) ____ level. a. state b. b. global c. country d. local e. None of these […]

The principle of ____ means looking for the strengths or positive aspects of a problem definition first. a. Positive Reinforcement b. Affirmative Judgment c. Best Problem Definition d. Attribute Identification e. Evaluation Matrix Common types of roadblocks to creativity are […]

Which of these pricing strategies will help a new firm maximize cash flow? a. Lower price to raise volume b. Raise price and reduce direct costs c. Set a higher price to raise perceived value d. Sell online e. None […]

____ is/are used to demonstrate that a company stands behind what it produces and the work that it does. a. ISO 9000 b. Warranties c. Six Sigma d. OEM e. None of these choices Which of the following would not […]

Regarding an MVP, it is correct to say: a. An MVP is always the preferred way to gauge customer interest in a product. b. An MVP is an excellent way to gauge customer interest for all types of products. c. […]

____ outsource everything except their core-management function. a. Virtual organizations b. Most startups c. Regional organizations d. Manufacturing organizations e. None of these choices There are seven stages in the industry life cycle. a. True b. False Answer: False In […]

The ____ gives information about the projected profit or loss status of the business for a specified period of time. a. balance sheet b. statement of cash flows c. current ratio d. profit margin e. income statement The Yellow Pages […]

An example of new industry formation, Apple’s iPhone, introduced on January 9, 2007, spurred the development of this new industry: a. The smart phone improvement industry b. The mobile app industry c. The pay-as-you-go-cell phone industry d. The development of […]

Which of the following is not a professional advisor to an entrepreneur? a. Attorney b. Board of directors c. Accountant d. Banker e. Insurance agent According to Rosabeth Moss Kanter, accountability, collaboration, and initiative are all elements of ____. a. […]

True / False 1. Entrepreneurship is a form of creative destruction. a. True b. False ANSWER: True POINTS: 1 REFERENCES: Profile 1.1 2. The entrepreneurial mindset cannot be found within large corporations or socially responsible nonprofit organizations. a. True b. […]

True / False 1. Somewhere in the micro strategy process, the business is actually launched in a small, controlled way. a. True b. False ANSWER: True POINTS: 1 REFERENCES: 10.1 Preparing to Write the Business Plan 2. POC tests involve […]

True / False 1. Formal processes are independent and improve the functions of a department. a. True b. False ANSWER: False POINTS: 1 REFERENCES: Designing an Entrepreneurial Company, Intro 2. There is probably no single best organizational structure for all […]

True / False 1. Entrepreneurs need to start thinking about the cost of operations when their products and services have become commoditized. a. True b. False ANSWER: False POINTS: 1 REFERENCES: Planning Startup Operations, Intro 2. Offshore manufacturing is appropriate […]

True / False 1. DBA stands for a certificate of doing business under an assumed name. a. True b. False ANSWER: True POINTS: 1 REFERENCES: Choosing the Legal Form of Organization, Intro 2. Sole proprietorships, partnerships, S-corporations, and limited liability […]

True / False 1. Promotion tends to be more price-focused or incentive-focused and therefore is usually considered a push strategy. a. True b. False ANSWER: True POINTS: 1 REFERENCES: 14.2 The Marketing Plan 2. For most entrepreneurs, making a big […]

True / False 1. Following the Golden Rule that says “Do unto others as you would have them do unto you,” is a comprehensive answer to ethical dilemmas in the workplace. a. True b. False ANSWER: False POINTS: 1 REFERENCES: […]

True / False 1. When venture capitalists scrutinize a new opportunity, they typically evaluate the market, management, and technology in that order. a. True b. False ANSWER: True POINTS: 1 REFERENCES: 16.3 Funding with Equity 2. The venture capital firm […]

True / False 1. Risk is a fact of life, but a company’s exposure to risk decreases as the venture grows. a. True b. False ANSWER: False POINTS: 1 REFERENCES: 17.5 Preparing for Change 2. The common practice of outsourcing […]

True / False 1. Entrepreneurship is a personal journey that begins in the mind of the nascent entrepreneur. a. True b. False ANSWER: True POINTS: 1 REFERENCES: Preparing for the Entrepreneurial Journey, Intro 2. Research has enabled us to identify […]

True / False 1. Creativity enables entrepreneurs to differentiate their businesses from competitors so that customers will notice them. a. True b. False ANSWER: True POINTS: 1 REFERENCES: 3.1 Creativity and Inspiration 2. Stage seven of Norman Seeff’s creative process […]

True / False 1. Entrepreneurs identify their primary customers by recognizing a need, or pain, in the market. a. True b. False ANSWER: True POINTS: 1 REFERENCES: Analyzing the Industry and Market, Intro 2. The North American Industry Classification System […]

True / False 1. Drucker’s five questions are the basis for the development of the business concept. a. True b. False ANSWER: False POINTS: 1 REFERENCES: Developing and Testing a Business Model, Intro 2. Business concepts are developed quickly and […]

True / False 1. Each time a new product or service or an improvement to an existing product or service is introduced, it will have gone through a design and development process. a. True b. False ANSWER: True POINTS: 1 […]

True / False 1. Businesses create a lot of knowledge for their owners, which has no intrinsic value. a. True b. False ANSWER: False POINTS: 1 REFERENCES: Protecting Startup Assets, Intro 2. Product development and intellectual-property development are not closely […]

True / False 1. Choosing a good attorney is a time-consuming but vital task that should be accomplished immediately after startup. a. True b. False ANSWER: False POINTS: 1 REFERENCES: 8.4 Expanding the Team 2. An accountant is your advocate, […]

True / False 1. A new venture’s health is measured by its balance sheet. a. True b. False ANSWER: False POINTS: 1 REFERENCES: Calculating Startup Capital Requirements, Intro 2. Determining what resources are needed, when they are needed, and how […]

Entrepreneurship is a form of creative destruction. a. True b. False Recent research has identified four categories of ethical decision making that entrepreneurs face on a daily basis, including individual values, organization values, external accountability, and ____. a. core values […]

A manufacturing firm is likely to use process-focused manufacturing if: a. They are highly decentralized b. They are distributed so that they can respond better to market demands c. Manufacturing is capital-intensive d. They act as separate company or profit […]

Anyone investing in a new venture has four principal concerns: rate of growth, return on investment, ____ and ____. a. degree of risk / protection b. cash flow / degree of risk c. founding team / protection d. balance sheet […]

Once a company has become a public company, returning to private status is ____. a. a way of raising more capital b. easy to accomplish c. not allowed by the SEC d. a nearly insurmountable task e. not allowed by […]

Which of the following is one of the three broad questions that a feasibility analysis answers? a. How will the operating systems be structured? b. Do the capital requirements, based on estimates of sales and expenses, make sense? c. Does […]

The goal in ____ is to provide the exact service the customer wants at minimal cost. a. logistics b. supply chain management c. outsourcing d. human resources e. purchasing A ____ consists of a novel and confidential formula, device, idea, […]

The Macro Environment includes all of the following factors except: a. The availability of credit b. Market factors and trends c. Industry factors and trends d. Global economic factors e. All of these are factors in the Macro Environment Product […]

The owner is the only person responsible for the activities of the business in a ____. a. limited partnership b. nonprofit business c. dormant partnership d. sole proprietorship e. limited liability company Brand equity, advertising expense, and the rate of […]

The term ____ refers to a customer’s perceived preference for, and evaluation of, product attributes, attribute performances, and consequences arising from use that facilitates (or blocks) achieving the customer’s goals and purposes in use situations. a. customer value customer relationships […]

____ product development provides a young firm with a network of expertise that it couldn’t afford to hire in-house. a. Outsourcing Patenting c. Protecting d. Networking e. Testing ____ comprise over fifty percent of all small businesses in the United […]

To guard against contingencies, it is wise for a startup to use one supplier for about ____ percent of its needs and one or more additional suppliers for the rest. a. 50 b. 50 to 60 c. 60 to 70 […]

Which type of business is most likely to be launched on the strength of a feasibility analysis alone? a. Baked goods business b. Technology business c. Internet-related business d. Clothing business e. Investment business The value derived by assuming the […]

When an entrepreneur decides to use a team effort to create the new venture, he or she generally looks for people who have ____ skills. a. independent b. competing c. complementary d. differentiated e. homogeneous Giving customers something for nothing […]

Copyright law protects: a. The concept b. The idea c. The thought process d. The form in which the idea is displayed e. None of these choices One vital question, often answered incorrectly is ‘Who is the customer?’ . a. […]

The components of a business model include all of these except: a. A value proposition b. Business concept c. Strategic partners d. None of these e. B and C only are not components of a business model ____ is the […]

Each time a new product or service or an improvement to an existing product or service is introduced, it will have gone through a design and development process. a. True b. False The principle of Affirmative Judgment: a. Finds the […]

Once the entrepreneur determines where the new venture lies in the value chain, he or she must create a ____. a. process map b. feasibility analysis c. business plan d. timeline e. None of these choices A corporate form that […]

Promotion tends to be more price-focused or incentive-focused and therefore is usually considered a push strategy. a. True b. False ____ in ethical decision making says that “Everyone needs to look out for himself.” a. Dogmatism b. Egoism c. Utility […]

Google, Wikipedia, journals, and trade magazines are examples of ____. a. industry analysis b. market research c. primary sources d. secondary sources e. None of these choices During startup, the entrepreneur’s main concerns are to ensure sufficient startup capital, _____, […]

Briefly discuss the six sources of primary industry data. A ____ precisely identifies the environment in which the company operates and communicates the company’s fundamental philosophy. a. code of ethics mission statement c. vision d. purpose e. strategy Answer: b […]

____ is concerned with the process of commercializing or extracting value from ideas. a. Problem identification b. Creativity c. Invention d. Innovation e. Marketing ____ is found if a trademark is likely to cause confusion with a trademark already existing […]

Choosing a good attorney is a time-consuming but vital task that should be accomplished immediately after startup. a. True b. False ____ from lawyers, accountants, consultants, and investment bankers are essentially a promise not to charge the full fee if […]

A business concept is a concise description of an opportunity that contains seven essential elements. a. True b. False The more information an entrepreneur acquires through ____, the higher the chance that his or her predictions will be close to […]

Investors tend to look for technology-driven companies rather than market-driven companies. a. True b. False Most successful startups involve ____. a. only the founders b. people with skills and capabilities beyond those that the business requires c. solo entrepreneurs rather […]

Sole proprietorships, partnerships, S-corporations, and limited liability companies all permit pass-through earnings and losses, but S-corporations and LLCs offer more protection from liability. a. True b. False A/an ____ is an advocate, but a/an ____ is bound by rules and […]

In terms of its treatment of income, expenses, and taxes, a partnership is essentially a sole proprietorship consisting of more than one person. a. True b. False All of the following are part of an entrepreneur’s extended network except ____. […]

____ benefits that customers appreciate include such things as access, saving money, saving time, convenience, and health. a. Tangible b. Material c. Intangible d. Niche e. Advertising The question, “Would I be proud if my actions were announced in my […]

Essential to creating an opportunity in a complex world, entrepreneurs must embrace: a. Networking b. Research c. Uncertainty d. Decision-making e. strategic alliances / acquisition When choosing a banker, the entrepreneur planning a new venture should seek out an officer […]

One way to innovate with business models is to consider: a. Market research b. A Feasibility analysis c. A Competitive analysis d. An Industry analysis e. A ‘blue ocean strategy’ Because of the benefits that have accrued to new product […]

____ was not alone in asserting that the United States was rapidly and by necessity becoming an entrepreneurial economy. a. Steve Jobs b. b. Peter Drucker c. Mike Boyer d. Marc Weinstein e. Sam Goody ____ can be defined as […]

The vision that guides a company in the right direction is expressed through its ____. a. core values b. purpose c. mission d. goals e. All of these choices The illumination step in Wallas’s creative process brings the idea to […]

Outsourced staff typically have a high turnover rate because ____________, so it is important for the entrepreneur to create a culture that encourages the staff to stay with the business long term. a. the average age is 25 b. of […]

Good SCM enables your company to forecast demand, match supply with demand, and fulfill the demand through optimal distribution channels. a. True b. False Which of the following is not a component of a business model? a. Pricing model b. […]

A new industry goes through volatile and rapid changes as companies and their respective technologies jockey for position and the right to determine industry standards. This is what stage of the industry life cycle? a. Birth b. Shakeout c. Differentiation […]

Business models can change by: a. Incrementally expanding the existing model geographically b. Revitalizing an established model c. Taking an existing model into a new area d. All of the above e. A and C only Poor execution in product […]

The three key factors for determining value in real estate are ____. a. location, location, and location b. economic base, financial incentives, and demographics c. trade area, competition, and demographics d. accessibility, cost of labor, and technology e. location, competition, […]

____ represent(s) how the startup uses its cash to cover its overhead before it generates a positive cash flow from operations. a. Monthly burn rate b. Contribution margin c. Financial metrics d. Bootstrapping e. Process map Closing the door, shutting […]

Which of the following is not a technique that can help entrepreneurs arrive at a realistic forecast of demand for their product or service? a. Talk to customers Interview prospective end-users and intermediaries c. Prepare revenue forecasts d. Apply the […]