A prototype is ________.
A) a form of opportunity recognition
B) a tool for evaluating the industry a new firm plans to enter
C) a financial model
D) the first physical depiction of a new product
E) a tool for evaluating the organizational prowess of a new firm
Answer:
The Savvy Entrepreneurial Firm feature in Chapter 15 focuses on Wahoo’s Fish Taco, a
franchise organization that offers Mexican food mixed with Brazilian and Asian flavors.
According to the feature, one of the things the founders of Wahoo did that has
contributed to its success is elect to make Wahoo’s ________.
A) a relatively slow growth system, focusing on branding and service quality rather
than rapid growth
B) a nationwide system, operating in all 50 states
C) an extremely affordable system to buy into, with a $9,000 original franchise fee and
an ongoing royalty of only 2-1/2 percent
D) a niche franchise that is only available in theme parks and food courts of malls
E) a fast growth system to establish a clear first-mover advantage in its niche
Answer:
Which of the following was not identified in the textbook as an attribute of an effective
board member?
A) Strong personal and professional networks
B) Unknown in their field
C) Investment and/or operating experience
D) Ability and willingness to mentor the CEO and the top managers of the firm
E) Pattern recognition skills
Answer:
According to the textbook, ________ are common in real estate development, oil and
gas exploration, and motion picture ventures.
A) sole proprietorships
B) limited liability companies
C) subchapter S corporations
D) limited partnerships
E) general partnerships
Answer:
A ________ combines the advantages of a partnership and a C corporation.
A) subchapter S corporation
B) limited partnership
C) general partnership
D) sole proprietorship
E) subchapter K corporation
Answer:
In the Barringer/Ireland Business Model Template, key assets can be ________.
A) fixed, situational, variable, and permanent
B) tactical, strategic, fixed, and variable
C) tangible, intangible, variable, and fixed
D) temporary, permanent, fixed, and variable
E) physical, financial, intellectual, or human
Answer:
According to the textbook, a focus group is a gathering of 5 to 10 people who are
selected because ________.
A) they are most likely to purchase large amounts of the product or service being
discussed
B) they responded to a self-selected opinion poll about the topic being discussed
C) of their relationship to the issue being discussed
D) they responded to a mail survey about the topic being discussed
E) they are spokespersons for the topic being discussed
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 statement is incorrect regarding how balance sheets are
prepared?
A) The left-hand side of a balance sheet shows a firm’s assets.
B) The assets on a balance sheet are shown in order of liquidity.
C) Assets are recorded at fair market value rather than cost.
D) The right-hand side of a balance sheet shows a firm’s liabilities and its owners’
equity.
E) Intellectual property receives value in some cases and in some cases it does not.
Answer:
A code of ________ is a formal statement of an organization’s values on certain ethical
and social issues.
A) conduct
B) behavior
C) performance
D) principles
E) morals
Answer:
The What Wrong feature in Chapter 2 focuses on Everpix, a company that enabled
users to organize and store photos online in an innovative manner. Regrettably, Everpix
failed. According to the feature, Everpix’s failure resulted from that fact that it’s
founders ________.
A) spent too much time and energy perfecting their service at the expense of building a
business
B) spent too much time and energy raising money at the expense of perfecting their
service
C) spent too much time networking at the expense of building a business
D) spent too much time marketing their product at the expense of perfecting their
service
E) spent too much time analyzing their market at the expense of networking
Answer:
Kelly Andersen founded a technology consulting firm several years ago. Her firm has
grown rapidly and is financially successful. One thing that Kelly attributes her success
to is that early on she assembled a panel of experts who provided her ongoing direction
and advice about her business. What Kelly created is called a(n) ________.
A) consultation panel
B) suggestion panel
C) idea board
D) accountability panel
E) advisory board
Answer:
A ________ is something that takes on a physical form, such as a smartphone or a
laptop computer. A ________ is an activity or benefit that is intangible, such as an
airplane trip or advice from an accountant.
A) product; service
B) service; component
C) component; service
D) formation; service
E) service; product
Answer:
Jennifer Burroughs is thinking about starting a firm in the upscale women’s fashion
industry. To get a full appreciation of the competitive nature of the industry, and how
she might position her products, Jennifer has spent considerable time looking at
industry-related publications, Hoover’s Online, and ABI-Inform, which is a database
that provides access to articles covering a wide-variety of business and industry related
issues. Jennifer is conducting ________ research.
A) primary
B) secondary
C) action
D) temporary
E) purposeful
Answer:
Wink Natural Cosmetics, the company profiled in the opening feature in Chapter 11,
sells cosmetics products. According to the case, the company’s initial marketing efforts
were aimed at ________.
A) building the company’s brand
B) finding strategic partners
C) finding the right target market
D) building a social media presence
E) effectively executing a Google AdWords campaign
Answer:
Which of the following was not identified in the textbook as one of the five primary
reasons passion is important for the launch of a successful entrepreneurial organization?
A) The ability to stick to a plan even when faced with evidence that changes are needed
B) A willingness to work hard for an extended period of time
C) The ability to overcome setbacks and “no’s”
D) The ability to listen to feedback on the limitations of your organization and yourself
E) The ability to learn and iterate.
Answer:
Which of the following statements is incorrect regarding founding teams?
A) The members of heterogeneous teams are diverse in terms of their abilities and
experiences.
B) Teams that are working together for the first time have an advantage over teams that
have worked together before.
C) The psychological support that cofounders of a new business can offer one another is
an important element of a firm’s success.
D) The members of homogeneous teams are very similar in terms of their abilities and
experiences.
E) Studies show that more than one individual starts 50 to 70 percent of all new teams.
Answer:
A board of directors’ three formal responsibilities are to appoint the officers of the firm,
oversee the affairs of the corporation, and ________.
A) conduct the annual meeting
B) provide funding for the firm
C) submit the firm’s annual report to the stockholders
D) declare dividends
E) write the firm’s strategic plan
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:
Most business plan writers interpret or make sense of a firm’s historical and/or pro
forma financial statements through ________ analysis.
A) ratio
B) assumptions
C) scenario
D) proportion
E) relative
Answer:
The ________, which was drafted in 1979 by a special commission, attempted to set
nationwide standards for trade secret legislation.
A) Intangible Assets Protection Act
B) Fairness in Intellectual Property Act
C) Uniform Trade Secrets Act
D) Trademark & Copyright Act
E) Economic Espionage Act
Answer:
Which of the following statements about advisory boards is incorrect?
A) The fact that a corporation has a board of directors does not preclude it from
establishing one or more advisory boards.
B) An advisory board can be established for general purposes or can be set up to
address a specific issue or need.
C) Similar to a board of directors, an advisory board has legal responsibility for the firm
in certain areas.
D) An advisory board is a panel of experts who are asked by a firm’s managers to
provide counsel and advice on an ongoing basis.
E) A growing number of startups are forming advisory boards.
Answer:
Since the first patent was granted, there have been over ________ patents granted in the
United States.
A) 526,000
B) 3 million
C) 6 million
D) 7 million
E) 2 million
Answer:
A(n) ________ strategy involves making additional versions of a product so that it will
appeal to different clientele.
A) market penetration
B) geographic expansion
C) improving an existing product or service
D) strategic alliance
E) product line extension
Answer:
A skills profile is a chart that depicts the ________.
A) preferable skills and abilities of the members of a firm’s board of advisors
B) preferable skills and abilities of the members of a firm’s board of directors
C) most important skills that are needed in a business startup and where skills gaps exist
D) skills and abilities that will be needed for a firm to maintain an aggressive growth
strategy
E) skills of a company’s customers and how those skills impact the products and
services a company provides
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:
Apple is an established firm that encourages and emphasizes entrepreneurial behavior
throughout its various divisions. According to the textbook, Apple practices ________
entrepreneurship.
A) tactical
B) corporate
C) strategic
D) business
E) enterprise
Answer:
In the context of a firm’s statement of cash flows, ________ activities include cash
raised during the period by borrowing money or selling stock and/or cash used during
the period by paying dividends, buying back outstanding stock, or buying back
outstanding bonds.
A) investing
B) financing
C) operating
D) liquidity
E) capital
Answer:
According to the textbook, a business plan is best described as a(n) ________.
A) narrative description of a new business
B) contract
C) budget
D) agreement
E) marketing initiative
Answer:
The opening feature focuses on DripCatch, a company that makes a device that catches
water that drips off of glassware when it comes out of the dishwasher. The central form
of intellectual property that DripCatch is hoping to benefit from is a(n) ________.
A) patent
B) Internet domain name
C) license
D) trademark
E) copyright
Answer:
Tempered Mind, the company profiled in the opening feature in Chapter 7, has created
an iPhone app that teaches users’ a foreign language as they progress through the stages
of a game. To get Tempered Mind off to a strong ethical start, the company was careful
to avoid a temptation that mobile app developers have. That temptation, mentioned in
the profile, is to ________.
A) pay people to write positive reviews
B) misrepresent the quality of the app
C) copy material and action sequences that appear in other apps without obtaining
permission from the owners
D) withhold payment from freelancers who worked on the project
E) ask employees to work unreasonable hours to get the project done
Answer:
The What Went Wrong? Feature in Chapter 3 focuses on Standout Jobs. Although the
company was acquired by a larger firm in 2010, it was not considered to be a financial
success. According to the case, Standout Jobs failed to meet expectations for the
following three reasons: ________.
A) First, the company’s timing was bad; second, prior to launch, the company’s
management team didn’t have a strong enough understanding of the HR/recruitment
market; and third, the company’s leaders found that you can’t shove a solution down
your customer’s throats
B) First, the company’s product had flaws; second, the company’s management team
didn’t have a strong enough understanding of the HR/recruitment market; and third, the
company’s marketing plan was ineffective
C) First, the company’s management team was inexperienced; second, the company’s
timing was bad; and third, the company was poorly financed
D) First, the company’s product had flaws; second, the company management team was
inexperienced; and third, the company found that you can’t shove a solution down your
customer’s throats
E) First, the company’s feasibility analysis was poor; second, the company’s
management team didn’t have a strong enough understanding of the HR/recruitment
market; and third, the company was poorly financed
Answer: