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 in which
biotech firms and large drug companies work together to bring pharmaceutical products
to market. According to feature, the most compelling partnerships are those that help
entrepreneurial firms focus on what they do best, which is typically ________, and that
allow them to tap their partners’ complementary strengths and resources.
A) innovation
B) marketing
C) project management
D) fundraising
E) product distribution
Answer:
When evaluating a balance sheet, the two primary questions are ________.
A) whether a firm has sufficient short-term assets to cover its short-term debts and
whether it is profitable
B) whether a firm is profitable and whether a firm is financially sound
C) whether a firm’s cost of sales is going up and whether it is generating excess cash
that could be used to pay down debt or pay dividends
D) whether a firm has sufficient short-term assets to cover its short-term debts and
whether it is financially sound
E) whether a firm is profitable and whether it is generating excess cash that could be
used to pay down debt or pay dividends
Answer:
Most C corporations have two classes of stock ________ and ________.
A) premium; normal
B) common; preferred
C) standard; substandard
D) regular; special
E) ordinary; distinct
Answer:
According to a survey of rapid growth firms conducted by the Small Business &
Entrepreneurship Council and the Financial Services Roundtable, ________ percent of
the firms in the survey said that expanding into overseas markets factored into their
business plans over the next five years.
A) 9
B) 21
C) 40
D) 53
E) 66
Answer:
Which of the following statements is correct regarding business format franchises?
A) Business format franchises are less popular than product and trademark franchises.
B) A business format franchise can be very rigid and demanding.
C) Agricultural machinery dealerships and soft-drink bottlers are well-known examples
of business format franchises.
D) Business format franchises are illegal in some states.
E) The business format franchisor obtains the majority of its income from selling its
products to its dealers at a markup.
Answer:
An important part of obtaining venture capital funding is going through ________
diligence, which refers to the process of investigating the merits of a potential venture
and verifying the key claims made by the business plan.
A) appropriate
B) fit
C) due
D) prior
E) responsible
Answer:
According to Chapter 1, investors often cite the ________ as their most important
criterion in the decision to fund new ventures.
A) financial position of the new venture
B) strength of the industry the new firm is entering
C) strength of the new venture’s marketing plan
D) strength of the business idea
E) strength of the entrepreneur
Answer:
To make sure that its customers are satisfied and to probe for new product ideas, Intuit
routinely sends employees to the facilities of their customers. This technique for
generating new business ideas is called ________.
A) brainstorming
B) day-in-the-life research
C) focus group
D) survey
E) customer advisory board
Answer:
The What Went Wrong? feature in Chapter 12 focuses on a dispute between
GoldieBlox, a toy company, and the Beastie Boys, a musical group. The dispute
centered on GoldieBlox’s use of a Beastie Boys song in a commercial without the
Beastie Boy’s permission. To justify their actions, GoldieBlox argued that their use of
the song was justified based on the legal principle of ________ use.
A) fair
B) trivial
C) limited
D) inconsequential
E) non-restricted
Answer:
Which of the following selections correctly identifies the three types of patents?
A) Manufacturing; process; plant
B) Usefulness; purpose; genetic
C) Explicit; implicit; plant
D) Utility; design; plant
E) Manufacturing; service; other
Answer:
The first step in selecting a target market is to study the industry in which the firm
intends to compete and determine the different potential target markets in that industry.
This process is called ________.
A) market positioning
B) market splitting
C) market targeting
D) market subdividing
E) market segmentation
Answer:
Which of the following statements is incorrect regarding boards of directors?
A) If a new venture organizes as a corporation, it is not legally required to have a board
of directors, but it is strongly recommended.
B) A board is typically made up of both inside and outside directors.
C) The board is responsible for declaring dividends.
D) Most boards meet formally three or four times a year.
E) The boards for publicly-traded companies are required by law to have audit and
compensation committees.
Answer:
If a startup pioneers an industry or a new concept within an industry, the name
recognition the startup establishes may create a formidable nontraditional barrier to
entry referred to as a(n) ________.
A) unique business model
B) aggressive supremacy
C) competitive superiority
D) first-mover advantage
E) aggressive tactical advantage
Answer:
In the Barringer/Ireland Business Model Template, ________ describes how the firm
plans to compete relative to its competitors.
A) strategic plan
B) grand strategy
C) tactical strategy
D) value proposition
E) core strategy
Answer:
The What Went Wrong feature in Chapter 9 focuses on Deever, a 2008 startup that
helped software developers use cloud-based services to “test” their code in an expedient
manner. According to the feature, one of the primary reasons Deever failed was
________.
A) it lacked a cofounder who loved the business side of running a startup
B) the cofounders couldn’t get along
C) it didn’t build a robust partnership network
D) it didn’t solicit advice from attorneys, bankers or business consultants
E) it didn’t have a Board of Advisors
Answer:
________ is a company’s ability to meet its short-term financial obligations.
A) Liquidity
B) Profitability
C) Effectiveness
D) Stability
E) Efficiency
Answer:
Trevor Kimble owns a firm that sells products to the publishing industry. Trevor is
currently evaluating a set of opportunities that he feels his firm is capable of pursuing.
According to the textbook, Trevor is evaluating his firm’s ________.
A) prolific potential
B) dynamic opportunity options
C) productive opportunity set
D) passionate opportunity set
E) creative field of potential
Answer:
According to the textbook, two of the most important factors to consider regarding
“management prowess” are ________.
A) the passion the sole entrepreneur or the management team has for the business idea
and the extent to which the management team or sole entrepreneur understands the
markets in which the firm will participate
B) whether the members of the management team have worked successfully together
before and the passion the sole entrepreneur or the management team has for the
business idea
C) whether the members of the management team are good “networkers” and the extent
to which the management team or sole entrepreneur understands the markets in which
the firm will participate
D) the educational and functional backgrounds of the management team or sole
entrepreneur
E) whether the members of the management team are good “networkers” and the
passion the sole entrepreneur or the management team has for the business idea
Answer:
The Savvy Entrepreneurial Firm feature in Chapter 14 focuses on SwitchFlops, a
company that produces sandals with interchangeable straps. The primary takeaway
from the feature is that savvy growth-minded startups ________.
A) utilize both internal and external growth strategies
B) emphasize internal rather than external growth strategies
C) emphasize international growth strategies from their inception
D) configure their products and services in ways that have built-in growth potential
E) compete on the basis of quality rather than price
Answer:
A situation that involves doing something that is beneficial to oneself or the
organization, but may be unethical, is called a(n) ________.
A) ethical quandary
B) ethical predicament
C) ethical dilemma
D) principled quandary
E) just dilemma
Answer:
For a business to be successful in the early growth stage of the organizational life cycle,
the two important things that must happen are ________.
A) the founder or owner of the business must start transitioning from his or her role as
the hands-on supervisor to a more managerial role, and increased formalization must
take place
B) a decision must be made whether the owner-manager and the current management
team is capable of taking the business further, and the organization must start laying the
groundwork for future growth
C) increased formalization must take place, and the business must achieve price
stability
D) a decision must be made whether the owner-manager or the current management
team is capable of taking the business further, and business partnerships must be
established
E) the founder or owner of the business must start transitioning from his or her role as
the hands-on supervisor to a more managerial role, and the business must be cash flow
positive
Answer:
Which of the following are the four key forms of intellectual property protection?
A) Patents, copyrights, trademarks, and trade secrets
B) Discoveries, covenants, trademarks, patents
C) Patents, official documents, copyrights, inventions
D) Discoveries, Internet domain names, innovations, trademarks
E) Convents, inventions, opportunities, and copyrights
Answer:
Nathan Green is starting a firm in the organic produce industry. Nathan has developed a
statement”Helping Make Your Life Better, Healthier, and Fuller”that describes the
reason his company exists and what his business model is supposed to accomplish. In
the terminology used in the Barringer/Ireland Business Model Template, Nathan’s
statement is referred to as his ________ statement.
A) values
B) uniqueness
C) differentiation
D) mission
E) task
Answer:
Which of the following is the proper sequence for when a firm should develop a
business model?
A) Preparation of the business model, initial validation of the business idea, opportunity
recognition
B) Initial validation of the business idea, establishing a growth plan, preparation of the
business model
C) Initial validation of the business idea, preparation of the business model, fleshing out
the operational details of the firm
D) Opportunity recognition, fleshing out the operational details of the firm, preparation
of the business model
E) Opportunity recognition, preparation of the business model, establishing a growth
plan for the firm
Answer:
The author of the book titled The Theory of the Growth of the Firm, which is referred to
in Chapter 13, is ________.
A) Jim Collins
B) Joseph Schumpeter
C) Edith Penrose
D) Michael Gerber
E) Seth Godin
Answer:
A ________ is the group of founders, key employees, and advisers that move a new
venture from an idea to a fully functioning firm.
A) new venture panel
B) startup team
C) new venture team
D) new project team
E) startup cadre
Answer:
Money owed to a company by its customers is referred to as ________.
A) accounts obtainable
B) accounts payable
C) accounts receivable
D) inventory
E) accounts collectable
Answer:
Colorado Sandwich, Soup and Salad is a casual dining restaurant that has been owned
by Stephanie Peterson for the past 14 years. The restaurant offers a menu that is typical
for casual dining restaurants and affords Stephanie a level of income that is similar to
what she would earn in a conventional job. According to the textbook, Colorado
Sandwich, Soup and Salad is an example of a(n) ________ firm.
A) salary-substitute
B) entrepreneurial
C) quality-of-life
D) lifestyle
E) industry-standard
Answer:
According to the textbook, studies show that more than one individual starts ________
percent of all new firms.
A) 20 to 25
B) 50 to 70
C) 5 to 15
D) 30 to 40
E) 75 to 90
Answer:
Which of the following was not identified in the textbook as an attribute of an effective
board of directors?
A) Homogeneous set of experiences and talents
B) Customer-focused point of view
C) Ability and willingness to stand up to the CEO and top managers of the firm
D) Strong communication with the CEO
E) Decisiveness
Answer: