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Outside capital should be sought only after all possible internal sources of funds have
been explored.
Once accepted, the trademark is published in the Trademark Official Gazette to allow
any party 90 days to oppose or request an extension to oppose.
An effective way to begin defining the purpose of a marketing plan, is to make a list of
all the information needed to prepare the marketing plan.
An entrepreneur contributing his or her own capital would be an example of internally
generated funds.
International entrepreneurial decisions are more complex than domestic decisions due
to uncontrollable factors such as economic development and stage of economic
development.
The executive summary section of the business plan should be written first, before other
sections are developed.
Role models can include family members as well as industry professionals.
In the McMullen-Shepherd Model first person opportunity beliefs come before third
person opportunity beliefs.
An ESOP is five to six year plan to sell a business to its employees.
Horizontal integration occurs at the same level of the value-added chain but simply
involves a different, but complementary, value-added chain.
An opportunity assessment plan is basically the same thing as a business plan.
Gartner provides information on technology markets.
Defining the purpose or objectives of marketing research is often the most difficult
stage for an entrepreneur.
Growing a venture through franchising allows the venture to expand quickly using little
capital.
In an R&D limited partnership the liability for losses incurred is borne by the limited
partners.
Technological knowledge refers to the entrepreneur's possession of information,
technology, know-how, and skills that provide insight into a market and its customers.
The entrepreneur need not concentrate on environmental analysis since most of the
external factors are generally uncontrollable.
A cash sensitivity analysis is used to provide a pessimistic and an optimistic cash
estimate.
The partnership is the most attractive type of business formation for raising capital.
Copying a product and improving it is not patent infringement.
The principle of prioritized planning requires the entrepreneur to categorize his or her
tasks by their degree of importance and then to allocate time to tasks based on this
categorization.
Most angel investors are individuals who accumulated their wealth through inheritance.
For a U.S.-based entrepreneurial firm, the 75 percent of the world's population living
outside the United States offers a very large market opportunity.
Most ventures that are up for sale have good to very successful profit records.
The personal funds of the entrepreneur are the most expensive.
Bootstrap financing decreases the company's flexibility and drive for sales.
Time management is the process of improving an individual's productivity through
more efficient use of time.
The integration task phase of negotiation explores mutual benefits for the parties.
Presently there are about 11,500 ESOP companies in the United States.
The principle of teamwork states that an entrepreneur spends too much time with
employees and should try to become less accessible to them in order to increase their
efficiency.
The sole proprietorship form of ownership gives owners the most control of business
operations.
Getting a trademark typically takes 2 years.
Using the big-dream approach, a new idea is developed through a list of related issues
or suggestions.
As long as the selling price is less than the variable cost per unit, some contribution will
be made to cover fixed costs.
Developing a new idea through a chain of word associations is known as the checklist
method.
Skyrocketing medical costs have resulted in lowering workers' compensation insurance
premiums.
Licensing a trademark generally involves a franchising agreement.
In the valuation of Internet companies:
A.the book value approach is of primary importance.
B.the replacement value approach plays a significant role.
C.the qualitative portion of due diligence carries much more weight.
D.the factor approach is used the overall value.
SBA 7(a) loans can be used for such things as equipment and land.
The _____ method is the most popular method used to project cash flow.
A.direct
B.indirect
C.depreciation-adjusted
D.present value method
Imitation strategies:
A.require expensive and extensive research.
B.are rare and inimitable.
C.does not provide organizational legitimacy.
D.can enhance a firm's performance.
A _________ is a contract between the government and an inventor.
A.patent
B.franchise
C.trademark
D.trade secret
One method of expanding a business is the purchase of an entire company or part of it
so that the entity is completely absorbed and no longer exists as a separate company.
This is called:
A.a joint venture.
B.an acquisition.
C.a subsidiary.
D.take over.
___________ refers to a diversification strategy that involves taking a step back (up) on
the value chain toward the raw materials.
A.Horizontal integration
B.Backward integration
C.Forward integration
D.Conglomerate integration
Business angels typically invest what amount in the businesses they finance?
A.$50,000-$100,000
B.$100,000-$500,000
C.$500,000-$1,000,000
D.$1,000,000-$5,000,000
Entrepreneurial culture and growth orientation consists of all of the following except:
A.encouraging employees to generate ideas.
B.focusing on opportunities.
C.the desire to grow at a slow and controlled pace.
D.being creative.
In what stage would you use the systematic market evaluation checklist?
A.Idea stage
B.Concept stage
C.Product development stage
D.Commercialization stage
Which survey method results in the most in-depth information and the best response
rate?
A.Telephone
B.Mail
C.Personal
D.Internet
Which of the following is defined as having some disruptive influence on established
consumption patterns?
A.Continuous Innovations
B.Dynamically Continuous Innovations
C.Discontinuous Innovations
D.Breakthrough Innovations
The early signs of bankruptcy are most often:
A.apparent to the entrepreneur.
B.interrelated.
C.occur in isolated instances.
D.unavoidable.
What percentage of small businesses have a website?
A.60%
B.70%
C.80%
D.90%
The person offering the franchise is known as the:
A.franchisor.
B.endower.
C.franchisee.
D.franchise.
When the debt is prorated to the creditors as a settlement in Chapter 11 this is called:
A.Substitution.
B.Evolution.
C.Extension.
D.Composition settlement.
The business plan presentation for potential investors:
A.should be presented only in writing.
B.should contain no negative projections.
C.should enable the entrepreneur to "sell" his or her business concept in a designated
period of time.
D.should provide the entrepreneur's own perspective.
The most common method of harvesting a venture is through:
A.direct sale of the business.
B.an IPO.
C.liquidation.
D.employee stock ownership program.
Identify and explain the four types of loans used for cash flow financing.
Which of the following is not a benefit of time management?
A.Improvement of esprit de corps.
B.Decreased job satisfaction.
C.Increased productivity.
D.Less anxiety and tension.
The _____ budget is used to evaluate expenditures that will impact the business for
more than one year.
A.production
B.operating
C.depreciation
D.capital
Which of the following types of ownership has the most continuity?
A.General partnership
B.Corporation
C.Limited partner
D.Sole proprietorship
Once the marketing goals and objectives have been established, the entrepreneur can
begin to develop the __________ and __________ to achieve them.
A.marketing plan; industry analysis
B.marketing mix; consumer research
C.marketing strategy; action plan
D.market research; industry analysis
Which stage of marketing research is considered to be the most difficult for an
entrepreneur due to lack of knowledge or experience in marketing?
A.Analyzing and interpreting the results
B.Gathering data from primary sources
C.Gathering data from secondary sources
D.Defining the purpose or objectives
Which of the following statements is(are) true?
A.Corporations are not able to take deductions and expenses available to the
proprietorship or partnership.
B.Distribution of dividends is taxed once, as income of the corporation.
C.Bonuses, incentives, and profit sharing are allowable ways to distribute income of the
corporation.
D.Corporate tax may be higher than the individual rate.
The business plan is designed to guide the entrepreneur:
A.through the distribution process.
B.through the first year of operations.
C.in the financing process.
D.in case of a change in ownership.
Which of the following is not a form of cash flow financing?
A.Trust receipt
B.Character loan
C.Line of credit
D.Installment loan
The ____ is calculated by dividing liabilities by total assets.
A.debt ratio
B.current ratio
C.inventory turn over
D.net profit margin
It takes approximately ______ to obtain a trademark.
A.12 months
B.13 months
C.14 months
D.18 months
New product development falls under which of the four major components of corporate
entrepreneurship?
A.New business venturing
B.Self-renewal
C.Innovativeness
D.Proactiveness
When evaluating business plans _________ are primarily concerned with the four Cs of
credit.
A.investors
B.employees
C.vendors
D.lenders
