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:
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) Coca-Cola
E) Gold’s Gym
Answer:
Qualcomm, a high-tech company headquartered in San Diego, owns the rights to
several of the key components that permit cell phones to work. Instead of selling cell
phones itself, Qualcomm grants permission to many companies, such as Samsung and
LG, to use specific forms of its intellectual property in exchange for monetary
compensation. Qualcomm in engaging in an external growth strategy referred to as:
A) licensing
B) strategic alliances
C) acquisitions
D) new product development
E) joint ventures
Answer:
________ is a term that denotes the set of assets and liabilities that are linked to a brand
and enable it to raise a firm’s valuation.
A) Trademark equity
B) Brand equity
C) Logo equity
D) Trademark value-added
E) Trade name strength
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:
Which of the following statements is incorrect in regard to entrepreneurial alertness?
A) The research findings on entrepreneurial alertness are conclusive.
B) Alertness is largely a learned skill.
C) People who have more knowledge of an area tend to be more alert to opportunities
in that area than others.
D) The term “entrepreneurial alertness” is often associated with a ‘sixth sense” that
seems to allow some people to see opportunities that others miss.
E) Entrepreneurial alertness is defined as the ability to notice things without engaging
in deliberate search.
Answer:
In regard to the stages (or rounds) of venture capital funding, the stage of funding that
occurs when an investment is made very early in a venture’s life to fund the
development of a prototype and feasibility analysis is referred to as:
A) seed funding
B) second-stage funding
C) first-stage funding
D) mezzanine financing
E) startup funding
Answer:
In the majority of cases, a franchisee pays the franchisor a royalty based on:
A) a predetermined fixed weekly or monthly amount
B) weekly or monthly net income
C) the size of the franchise outlet
D) weekly or monthly gross income
E) the age of the franchise outlet
Answer:
A(n) ________ is a group of firms producing a similar product or service. A firm’s
________ is the limited portion of the industry that it goes after or to which it wants to
appeal.
A) target market, industry
B) trade group, industry
C) industry, trade group
D) competitive group, target market
E) industry, target market
Answer:
Keith Barnes is a general partner in a venture capital firm that just funded South Florida
Software, a software firm in Coral Gables, Florida. South Florida Software is
incorporated, and Keith has taken a seat on the firm’s board of directors. In board of
directors terminology, Keith is a(n):
A) subordinate director
B) senior director
C) distant director
D) inside director
E) outside director
Answer:
Morphology, the company profiled in the opening feature for Chapter 3, was started to
produce a board game. The feature describes how Morphology sought to validate its
business idea. According to the feature:
A) Morphology was unable to validate its business idea and the idea was dropped
B) Morphology’s feasibility analysis was incomplete, and the company has struggled
ever since it was launched
C) Morphology’s feasibility analysis was flawed, and the company failed
D) Morphology did an exemplary job validating its business idea, and its board game is
now being sold in more than 40 stores across the United States, with some distribution
in Canada
E) Morphology’s feasibility analysis was well done, and the company was acquired by
Mattel before it could launch its board game as an independent company
Answer:
According to the textbook, most boards of advisers have between:
A) 5 and 15 members
B) 2 and 4 members
C) 10 and 18 members
D) 2 and 3 members
E) 4 and 7 members
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 two components of product/service feasibility analysis are product/service demand
and:
A) product/service desirability
B) management prowess
C) target market attractiveness
D) resource sufficiency
E) financial performance of similar businesses
Answer:
Zachery Mays is in the very early stages of putting together a business startup, and is
thinking about writing a business plan to request funds to conduct a feasibility analysis
and write a more complete business plan. What type of business plan should Zachery
write at this point?
A) full business plan
B) tactical business plan
C) summary business plan
D) operational business plan
E) strategic business plan
Answer:
The Partnering for Success feature in Chapter 12 starts by talking about Gary
Schwartzberg, who, along with a partner, developed a new type of bagel dubbed the
“Begeler,” which was eventually licensed to Kraft. According to the feature,
entrepreneurs and inventors, like Gary Schwartzberg, are finding that large consumer
products companies are:
A) ambivalent about what they have to offer
B) increasingly interested in what they have to offer for new products, but are
ambivalent about services
C) increasingly interested in what they have to offer
D) increasingly interested in what they have to offer for new services, but are
ambivalent about products
E) increasingly disinterested in what they have to offer
Answer:
According to a study cited in the textbook, ________ of private companies meet the
criterion established by business angels for investment.
A) 2 percent to 4 percent
B) 10 percent to 15 percent
C) 18 percent to 30 percent
D) 32 percent to 48 percent
E) 60 percent to 70 percent
Answer:
Which of the following statements is incorrect regarding common stock?
A) Common stock is issued more narrowly than preferred stock.
B) The common stockholders have voting rights.
C) The common stockholders get paid after the creditors in the event of the liquidation
of the corporation.
D) Common stock is the form of stock that most shareholders of a corporation own.
E) The common stockholders elect the board of directors.
Answer:
The Savvy Entrepreneurial Firm feature in Chapter 13 focuses on Dogfish Head
Brewery, a microbrewery located in Milton, Delaware. During the first few years of the
firm’s existence, one tactic the founder employed during the winter months, to gain the
loyalty of local businesses and their customers, was to:
A) distribute fliers via local businesses offering off-season discounts with coupons that
could be redeemed at the company’s restaurant and brewery
B) offer free delivery from the company’s brewery and restaurant
C) offer free tours of the company’s brewery
D) offer 10% discounts to Delaware residents and 30% discounts to Milton residents
E) hold contests to name the company’s different varieties of beer after local landmarks
and citizens
Answer:
Metroleap Media, Inc., places music lyrics on the Internet. The major hurdle that
Metroleap Media had to overcome to become a legitimate business was to:
A) find ways to protect its trademark
B) find ways to protect its trade secrets
C) obtain a copyright on its Web site
D) obtain a patent on the functionality of its Web site
E) develop a protocol for obtaining licensing agreements from the music industry
Answer:
Which of the following statements about target markets is incorrect?
A) There is a distinct difference between a firm’s industry and its target market.
B) The challenge in identifying an attractive target market is to find a market that’s large
enough for the proposed business but is yet small enough to avoid attracting larger
competitors.
C) By focusing on a target market, a firm can usually avoid head-to-head competition
with industry leaders and can focus on serving a specialized market very well.
D) A target market is a place within a larger market segment that represents a narrower
group of customers with similar needs.
E) It’s generally easier to find good information about a target market than an industry
as a whole.
Answer:
There are four types of trademarks:
A) trademarks, service marks, collective marks, and certification marks
B) examination marks, trademarks, combined marks, and service marks
C) shared marks, collective marks, mutual marks, and trademarks
D) service marks, cooperative market, trademarks, and shared marks
E) trademarks, collective marks, documentation marks, and combined marks
Answer:
A firm’s ________ is the limited group of individuals or businesses that it goes after or
tries to appeal to.
A) target objective
B) goal objective
C) intention market
D) target market
E) object market
Answer:
In regard to budgets, which of the following statements is not true?
A) Budgets include an itemized forecast of a company’s expenses.
B) Budgets are a poor tool for financial control.
C) Budgets are an important tool for financial planning.
D) Budgets include an itemized forecast of a company’s capital needs.
E) Budgets include an itemized forecast of a company’s income.
Answer:
True You Cosmetics, the company profiled in the opening feature in Chapter 11, sells
cosmetics products. The company’s marketing efforts to date have focused heavily on:
A) Google AdWords and AdSense
B) print advertising
C) radio
D) social media
E) television advertising
Answer:
There are two primary rules of thumb for deciding if intellectual property protection
should be pursued for a particular intellectual asset. First, a firm should determine if the
intellectual property in question is directly related to its competitive advantage. Second,
a firm should determine if its intellectual property:
A) is less than 20 years old
B) could be licensed to another company
C) has value in the marketplace
D) is something that was developed “in-house”
E) rightfully belongs to the firm or the employees who developed it
Answer:
An individual who owns and operates more than one outlet of the same franchisor,
whether through an area or a master franchise agreement, is referred to as a:
A) multifaceted franchisee
B) super franchisee
C) various-unit franchisee
D) compound franchisee
E) multiple-unit franchisee
Answer:
Which of the following is not an attribute of an attractive industry?
A) is young rather than old
B) is not crowded
C) is late rather than early in its life cycle
D) is important to the customer
E) is fragmented rather than concentrated
Answer:
Which of the following factors is a positive as it pertains to the financial feasibility of a
business venture?
A) inconsistent and slow growth in sales during the first five to seven years in a clearly
defined market niche
B) high percentage of recurring revenue
C) inability to forecast income and expenses with a reasonable degree of accuracy
D) reliance on externally generated funds to finance and sustain growth
E) absence of an existing opportunity for investors to convert equity into cash
Answer:
According to the textbook, entrepreneurship has historically had:
A) a major impact on the economy and minor impact on society
B) a minor impact on both the economy and society
C) a major impact on society and minor impact on the economy
D) a major impact on both the economy and society
E) no impact on either the economy or society
Answer:
Supplier concentration, switching costs, attractiveness of substitutes, and threat of
forward integration are factors that have a direct impact on:
A) threat of new entrants
B) bargaining power of buyers
C) rivalry among existing firms
D) threat of substitutes
E) bargaining power of suppliers
Answer:
Which of the following is not one of the 10 warning signs that a business is growing too
fast?
A) those working with the business’s financial structure are starting to worry
B) productivity is falling
C) e-mail starts going unanswered
D) borrowing money to pay for routine operating expenses
E) comfortable profit margins
Answer:
Among minorities, ________ -owned firms had the highest growth rate from 1996 to
2010.
A) Pacific Islander
B) Asian American
C) African American
D) Latino
E) American Indian
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:
Abby Covin owns a firm that manufacturers and sells high-end furniture and home
accessories. She is currently trying to grow her firm by developing new products. Abby
is pursuing a(n) ________ growth strategy.
A) outside
B) inward
C) internal
D) external
E) domestic
Answer: