A business plan __________ potential financial backers.
a. indicates the exact sum to be borrowed from
b. establishes a first impression of the company and its principals on
c. provides an accurate sales forecast for
d. purposefully underestimates financial need for
An account framework that goes beyond the traditional measures of profit, return on
investment,and shareholder value to include environmental and social dimensions is
called
a. the shared bottom line
b. the value proposition
c. the triple bottom line
d. the twin bottom line
Contribution margin is the difference between
a. selling price and fixed cost per unit.
b. purchase price and variable cost per unit.
c. selling price and variable cost per unit.
d. purchase price and fixed cost per unit.
The day of the presentation, the entrepreneur should arrive early to
a. serve snacks to attendees.
b. arrange to have breakfast and coffee catered in.
c. read the paper to relieve nervousness.
d. set up, test any equipment, and organize notes and visual aids.
All of the following factors affect pricing strategies except:
a. degree of competitive pressure
b. government mandates
c. changes in demand
d. distribution costs
Which formula defines the quick ratio?
a. financial assets/current debt
b. current debt/net sales
c. net sales/current debt
d. net profit/net sales
That part of a patent application which identifies the features that are protected are
known as the
a. specification.
b. illustration.
c. claim.
d. concept.
The second step in planning a strategy of entrepreneurship for the enterprise is
a. identifying specific objectives.
b. sharing the vision of innovation.
c. applying the exact tools of the entrepreneur.
d. developing and encouraging innovation.
What is penetration pricing?
a. setting price to maximize profit
b. setting price to maximize market share
c. setting price to switch customers to new product lines
d. setting price to match the competition
The entrepreneur must be
a. able to handle questions from the evaluators.
b. interesting and humorous.
c. able to criticize the evaluators.
d. able to deftly avoid answering certain questions.
Which of the following is not a source of stress?
a. success in business
b. immersion in business
c. people problems
d. family requirements
The entrepreneur should ask the venture capitalist _____ questions.
a. at most ten
b. exactly twenty
c. an unlimited number of
d. no
Which statement is not true?
a. Luck happens when preparation meets opportunity.
b. Entrepreneurs fare poorly in today’s hypercompetitive market.
c. Failure due to lack of proper financing often is an indicator of other problems.
d. It takes more than just money to be a successful entrepreneur.
In recent studies of new venture problems, dominant problems during the growth stage
were related to
a. sales/marketing
b. organization design
c. regulatory environment
d. none of the above
Who defined the corporation as ‘an artificial being, invisible, intangible, and existing
only in contemplation of the law.’
a. Karl Marx
b. Justice John Marshall
c. Henry Ford
d. Thomas Jefferson
How do informal investors find projects to invest in?
a. networks of friends
b. business classifieds
c. Forbes
d. university think tanks
When is the buyer likely to have power over the seller in the negotiation to purchase a
business?
a. if the seller has already purchased another business
b. if potential buyers are numerous
c. if the buyer’s backers wish to invest quickly
d. if the seller has no deadline for selling
Corporate social responsibility refers to
a. the enhancement of global competition
b. environmental entrepreneurship in the United States
c. actions that further some social good beyond the interests of the firm
d. the affect of ecopreneurship only on some industries
A gap or difference between expectations and reality defines
a. process needs.
b. incongruities.
c. demographic changes.
d. changes in perception.
Copyrights may be expressed in
a. books.
b. periodicals.
c. motion pictures.
d. all of the above.
In administrative cultures, there is a need for clearly defined authority and
responsibility.
In the model of sustained corporate entrepreneurship discussed in the text, a
transformational trigger can be internal or external to the company.
Briefly explain the new-old approach to creating new ventures.
An entrepreneur does not need to know how to calculate the value of a competitor’s
operation.
Why has sustainable development, perhaps, become the most prominent topic of our
time?
Define a ‘gazelle’ and discuss some of the impact that gazelles have on the economy.
A business plan should be no more than l50 pages.
Effective marketing is based on three key elements: marketing philosophy, market
segmentation,
and consumer behavior.
Describe what typically takes place during the new-venture development life-cycle
stage.
In the marketing shift from the 4Ps to the 4Cs, price shifts to choice and promotion
shifts to communities.