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Synergy is when the whole is the aggregate of all of its parts.
Bankruptcy protects entrepreneurs from creditors and competitors.
Traditionally managed firms commitment to opportunity is revolutionary with a long
duration.
A business, when it comes to selling, will be less valuable if it is on a narrow,
well-defined segment.
Pro forma sources and applications of funds summarizes all the projected sources of
funds available to the venture and how these funds will be disbursed.
SBIC firms are small companies with some government money that invest in other
companies.
Facebook is a good source of market information on competitors.
The indirect method of projecting cash flow uses a simple determination of cash in less
cash out.
Bankers agree that most business failures are due to the entrepreneur's inability to
obtain financing.
A franchise is the instrument used to protect the owner of the technology from people
imitating the technology.
By overestimating demand, the entrepreneur will suffer the costs of under capacity.
In the McMullen-Shepherd Model the first stage is the evaluation stage.
The SBA's Microloan program provides short-term loans of up to $100,000 to small
businesses for working capital or purchase of inventory.
The best management style for a manager undertaking a business turnaround is a
bunker mentality.
Under the Sarbanes-Oxley Act CEOs are not required to vouch for the firm's financial
statements because they don't get involved with the day to day operations of the firm.
Corporations are not able to distribute profits to shareholders.
One of the simplest and probably the most widely used small business accounting
software package is Intuit's Quickbooks.
An entrepreneur is rarely able to start a new business without some form of formal
education.
In a partnership, the general partners usually share the amount of personal liability
according to their capital contributions.
Depreciation is considered a source of funds because it does not represent an
out-of-pocket expense.
Structural similarities exist when the underlying mechanisms of the technology
resemble, or match, the underlying mechanisms of the market.
Even if there is a belief that the pursuit of growth will improve firm performance and
enhance personal wealth, some entrepreneurs will still avoid growing their business.
Chet Kanojia, CEO of Aereo recently lost his case in the Supreme Court because of an
infringement of the copyright law.
Cash is a current asset.
Using a broad scope strategy helps to reduce the risk of market uncertainty.
Venture capitalists view going public a highly disadvantageous step since the level of
risks involved substantially increase.
When an entrepreneur bootstraps the purchase of a company, the entrepreneur usually
puts down 10-20% in cash and then financing the remainder of the price with long-term
debt paid back through the company's earnings.
In order to better serve customers, all customer information should be stored in the
memory of individual salespeople.
The grocery and pharmaceutical industries have developed a computerized system to
link chain members together and manage demand, distribution, and marketing.
Pro forma financial statements should be prepared semi-monthly for the first year of the
venture.
The entrepreneur is required to withhold federal and state taxes for employees and then
deposit payments monthly or quarterly.
Using the ________ method of projecting cash flow, adjustments are made to net
income based on the fact that cash may not actually be received or disbursed.
A.indirect
B.breakeven
C.direct
D.pro forma
Define and explain the principles of desire, effectiveness and analysis as they relate to
time management.
McDonald's acquiring its store franchises is an example of what type of merger?
A.Market extension merger
B.Horizontal merger
C.Product extension merger
D.Vertical merger
In what stage would it be most beneficial to use conversational interviews?
A.Idea stage
B.Concept stage
C.Product development stage
D.Commercialization stage
The section of the patent application which provides the criteria by which any
infringement will be determined is the:
A.background and advantages section.
B.description of the invention.
C.claims section.
D.executive summary.
In Stage Two of the McMullen-Shepherd Model:
A.the entrepreneur deals with the business failure through counseling.
B.the entrepreneur decides whether or not there is an opportunity for him or her
personally.
C.the entrepreneur goes through the causal process of thinking structurally.
D.the entrepreneur consults colleagues from previous jobs.
Which of the following would NOT be a recommended diversification strategy?
A.Backward integration.
B.Horizontal integration.
C.Forward integration.
D.Integration into markets unrelated to existing products.
In order to further investigate a franchise opportunity an entrepreneur can request a
franchise package from the franchisor which:
A.is usually free.
B.costs between $400-$600 and is usually refundable.
C.costs between $800-$1000 and is usually not refundable.
D.contains guarantees about expected sales revenues in years 1 and 2.
Research and development limited partnerships provide funds for entrepreneurs in
high-tech fields through:
A.debt from lenders.
B.equity from present owners.
C.investors looking for tax shelters.
D.cash from internal operations.
Individuals have stronger intentions to act when taking action is perceived to be _____
and desirable.
A.elusive
B.feasible
C.flexible
D.risky
Which of the following problem-solving techniques begins with group members not
knowing the exact nature of the problem?
A.Parameter analysis
B.Matrix charting
C.The Gordon method
D.Free association
______ are used to characterize potential customers based upon their income,
education, age, sex, and so forth.
A.Demographics
B.Development strategies
C.Democracies
D.Diversifications
In 2014 which region received the highest level of venture capital investment?
A.New England
B.Silicon Valley
C.NYC Metro
D.LA/Orange County
The four variables that affect short-term marketing decisions are referred to as the:
A.marketing mix.
B.market segment.
C.marketing plan.
D.marketing system.
In a horizontal diversification strategy, growth:
A.involves taking a step back (up) the value-added chain.
B.occurs at the same level of the value-added chain.
C.involves taking a step forward (down) the value added chain.
D.involves opportunities unrelated to the existing value-added chain.
Later movers do not face:
A.entrenched competitors.
B.high growth markets.
C.lower market uncertainty.
D.reduced uncertainty over technologies.
Using a time sheet to record usage of time is part of the principle of:
A.desire.
B.effectiveness.
C.prioritized planning.
D.analysis.
Generally speaking, entrepreneurs see the external environment as:
A.marginally influential.
B.uncontrollable.
C.largely influential.
D.predictable.
The debt to capital ratio for most _____ usually exceeds the equity by a factor of 5:1.
A.mergers
B.leveraged buyouts
C.hostile takeovers
D.franchises
The best source of funds for first-stage financing is the:
A.private venture capital companies.
B.small business investment companies.
C.informal risk capital market.
D.public equity market.
______ control compares the cost figures estimated in the business plan with actual
day-to-day operations costs.
A.Production
B.Sales
C.Inventory
D.Costs
To satisfy outside investors, the financial plan will need three years of projected
financial data.
In which stage of the product planning and development process would it be
appropriate to give product samples to a panel of potential customers?
A.Idea stage
B.Concept stage
C.Product development stage
D.Commercialization stage
In emerging industries:
A.environmental factors do not affect customer demand.
B.entrepreneurs confront demand certainty.
C.environmental changes are highly likely.
D.it is easier to respond effectively to sudden changes.
While preparing the first draft of the business plan, the entrepreneur should not:
A.prepare it from his or her personal viewpoint.
B.take into consideration the constituencies that will ultimately read and evaluate the
plan's feasibility.
C.prepare it with an aim to identify possible barriers to success.
D.try to define the goals and objectives of the venture.
Venture capitalists are typically located in all of the following areas except:
A.Los Angeles
B.New York
C.Virginia
D.Chicago
The most severe form of bankruptcy is:
A.Chapter 7.
B.Chapter 11.
C.Chapter 13.
D.prepackaged bankruptcy.
An entrepreneur considering if what they are doing makes sense is an example of:
A.A strategic question
B.A connection task
C.A reflection task
D.A comprehension question
Which source of financial information is a compilation of 276,000 financial statements
of banking customers with ratios and benchmarks?
A.RMA eStatement Studies
B.Market Share Reporter
C.U.S. Census Statistical Abstracts
D.Encyclopedia for American Industries and Mintel Reports
______ provides information on industries such as aerospace, energy, healthcare and
defense.
A.Mergent
B.Plunkett
C.Frost and Sullivan
D.Business Source Complete
By entering a market later,
A.customer uncertainties have already been substantially reduced.
B.the venture can build a reputation as a "founder."
C.the company can erect barriers to entry and imitation.
D.the player gets to operate only for a grace period.
_______________ is the form of the transaction when money is obtained by a
company.
A.Deal structure
B.Underwriting
C.Equity swap
D.Debt swap
To be the basis of a firm's superior performance over competitors for an extended
period of time, valuable and rare resources need to be:
A.inimitable.
B.fully utilized.
C.patented.
D.shared.
In regards to the differences between the entrepreneurial and administrative focuses
which of the following is correct?
A.Entrepreneurs focus on slow steady growth and managers focus on rapid growth
B.Entrepreneurs rent or sporadically use resources; managers like to own resources
C.Entrepreneurs are driven by controlled resources; managers by opportunity
D.Entrepreneurs tend to use a hierarchical management structure; managers use a more
fluid, flat approach
