There are three basic requirements for a patent to be granted. The subject of the patent
application must be ________.
A) useful, difficult to copy, and novel in relation to prior arts in the field
B) based on cutting edge science or technology, not obvious to a person of ordinary
skill in the field, and rare
C) useful, novel in relation to prior arts in the field, and not obvious to a person of
ordinary skill in the field
D) rare, difficult to copy, and not obvious to a person of ordinary skill in the field
E) useful, scientific, and novel in relation to prior arts in the field
Answer:
Tyler Smith founded a firm that has a subscription-based business model. Although
Tyler has averaged 600 new subscribers per month, she also loses 450 subscribers per
month. The number of subscribers that Tyler loses each month is referred to as
________.
A) erosion
B) churn
C) destruction
D) attrition
E) agitation
Answer:
The Savvy Entrepreneurial Firm feature in Chapter 6 focuses on three companies:
Songkick, GrubHub, and Instagram. The overarching point of the feature is ________.
A) most business plans require major changes after the business is launched and the
founders start getting customer feedback
B) the degree to which business plans pan out as their founders envisioned varies
C) most business plans require only minor changes after the business is launched and
the founders start getting customer feedback
D) the most effective business plans take four to eight weeks to complete
E) most business plans are quickly discarded after the business is launched
Answer:
Kelly Andrews owns a company that makes office furniture. Recently, a favorable
article was written about Kelly’s company in a business magazine, and as a result, Kelly
has seen a spike in his orders. Although Kelly is grateful for the additional orders, he is
worried about one thing. An increase in activity means that his firm must handle more
service requests and paperwork and contend with more customers, stakeholders, and
vendors. Kelly knows that if he doesn’t handle this increased activity properly, the
workmanship of his products could decline. The day-to-day challenge of firm growth
that this example illustrates is ________.
A) quality control
B) price stability
C) capital constraints
D) benchmarking
E) cash flow management
Answer:
The four types of trademarks are ________.
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 marks, trademarks, and shared marks
E) trademarks, collective marks, documentation marks, and combined marks
Answer:
Which of the following is not one of the four key forms of intellectual property
protection?
A) Innovations
B) Copyrights
C) Trademarks
D) Trade secrets
E) Patents
Answer:
Once a firm has segmented the market, the next step is to ________.
A) decide on a position within the segment
B) settle on pricing
C) select a target market
D) establish the company’s brand
E) immediately decide on the “4Ps” of the marketing strategy
Answer:
A(n) ________ agreement binds an employee or another party to not disclose a
company’s trade secret. A ________ agreement prevents an individual from competing
against a former employer for a specific period of time.
A) nondisclosure; noncompete
B) non breach-of-trust; nonchallenge
C) voluntary truth; nonparticipate
D) binding confidentiality; noncompete
E) ethics; nonparticipate
Answer:
Jan Berry recently received a $500,000 inheritance from her maternal grandmother. Jan
decided to use the money to start a business. According to the textbook, the inheritance
that Jan received was the ________ that prompted her to start a business.
A) prompting event
B) entrepreneurial prompt
C) initiating event
D) triggering event
E) kick-off event
Answer:
The Partnering for Success feature in Chapter 9 focuses on a technique that
entrepreneurs use to overcome the liabilities of newness. The suggestion made by the
feature is to overcome the liabilities of newness by considering ________.
A) interviewing a minimum of 20 startup founders to get a sense of what made them
successful
B) working in the new product development or corporate innovation division of a major
corporation
C) working for a startup for a minimum of two years before starting one
D) earning an MBA
E) joining a startup accelerator
Answer:
According to the textbook, a well-managed business that finds its products and services
are mature often ________.
A) replaces its board of directors to breathe new life into the firm
B) looks for licensing opportunities
C) looks for partnering or acquisition opportunities to breathe new life into the firm
D) looks for new managerial talent to breathe new life into the firm
E) looks for international business opportunities
Answer:
In 2013, venture capital firms funded just over ________ deals.
A) 800
B) 2,600
C) 4,000
D) 6,200
E) 8,000
Answer:
Which of the following is correct regarding opportunities and ideas?
A) An opportunity and an idea are essentially the same thing.
B) An idea almost always meets the criteria of an opportunity.
C) An opportunity is a thought, an impression, or a notion.
D) An idea is a favorable set of circumstances that creates a need for a new product,
service, or business.
E) It’s important to discern whether a particular idea meets the criteria for an
opportunity.
Answer:
Brad Johnson is starting an upscale men’s clothing store in a mall near Seattle. He wants
to open his store during the time period in which a business like his can realistically
enter the new market. Brad is trying to open his business while the ________ is open.
A) safe harbor
B) window of opportunity
C) portal of entry
D) doorway of opportunity
E) safety zone
Answer:
The Savvy Entrepreneurial Firm feature in Chapter 13 focuses on Salesforce.com, a
company that pioneered the idea of software as a service (SaaS). The main point of the
case is that rather than remaining a niche product, Salesforce.com’s product, which is an
online software platform for salespeople, has ________ and appeals to mainstream
customers.
A) crossed the divide
B) jumped the divide
C) leaped the technology curve
D) crossed the chasm
E) crossed the valley
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 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:
A(n) ________ franchise agreement involves the sale of a single franchise for a specific
location.
A) individual
B) one-of-a-kind
C) sole
D) defined
E) general
Answer:
According to the Global Entrepreneurship Monitor (GEM) 2013 study, the majority of
people in high-income countries are drawn to entrepreneurship ________.
A) to take advantage of an attractive opportunity
B) due to lack of career prospects
C) as a result of government incentives
D) because an important role model was an entrepreneur
E) to gain prestige
Answer:
There are two types of disruptive business models ________ and ________.
A) low-end; high-end
B) new-product; new-market
C) new-market; low-end
D) new-channel; high-quality
E) standard; unique
Answer:
Copyright law protects any work of authorship ________.
A) 90 days after it is approved by the U.S. Copyright Office
B) one year after it assumes a tangible form
C) the moment it assumes a tangible form
D) as soon as it is approved by the U.S. Copyright Office
E) 30 days after it assumes a tangible form
Answer:
Liz Zackery just launched a firm in the sporting goods industry. On the day the
company was launched, Liz issued a press release, indicating that the vice president of
New Balance, a highly respected athletic shoe and sports apparel company, had agreed
to serve on her board of directors. Liz knows that such a high quality appointment will
send an important message to her potential clientele. This phenomenon is referred to as
________.
A) championing
B) signaling
C) profiling
D) indicating
E) trumping
Answer:
Which of the following is not one of the four steps of the entrepreneurial process?
A) Deciding to become an entrepreneur
B) Determining how to seize the spotlight
C) Developing successful business ideas
D) Moving from an idea to an entrepreneurial firm
E) Managing and growing the entrepreneurial firm
Answer:
Google and its AdWords program is an example of a ________ disruptive business
model.
A) low-end
B) new-market
C) high-quality
D) low-price
E) new-channel
Answer:
Which of the following is an example of an external growth strategy?
A) New product development
B) Mergers and acquisitions
C) Market penetration
D) Product line extension
E) Geographic expansion
Answer:
According to the 2013 National Business Ethics Survey, which of the following forms
of misconduct or unethical behavior was observed by the highest percentage of the U.S.
workforce?
A) Discriminating against employees
B) Violating company policies related to Internet use
C) Abusive behavior that creates a hostile work environment
D) Lying to employees
E) Stealing or theft
Answer:
If a firm determines it can use the percentage-of-sales method and it follows the
procedure described in the textbook, then the net result is that each expense item on its
income statement (with the exception of those items that can be individually forecast)
will grow at the same rate as sales. This approach is called the ________.
A) continuous percentage method of forecasting
B) stable fraction method of forecasting
C) regular proportion method of forecasting
D) constant ratio method of forecasting
E) steady percentage method of forecasting
Answer:
Melissa Jones just launched a firm in the wireless communications industry. Shortly
after the company was launched, Melissa announced that a prominent Silicon Valley
venture capitalist had agreed to serve on her board of directors. Melissa knows that such
a high quality appointment will send an important message to her potential business
partners and clientele. This phenomenon is referred to as ________.
A) trumping
B) championing
C) profiling
D) signaling
E) indicating
Answer:
Which of the following statements is not correct regarding business angels?
A) Business angels invest in more startups on a yearly basis than venture capitalists.
B) The number of angel investors has decreased dramatically over the past decade.
C) Business angels usually take a seat on the board of directors of the firms in which
they invest.
D) Business angels are valuable because of their willingness to make relatively small
investments.
E) Business angels are difficult to find.
Answer:
Macy is a very creative person. Often, when trying to generate a novel or useful idea,
she spends several days “mulling over” the idea, which is her way of thinking it
through, at both the conscious and unconscious level. The stage of the creative process
that Macy is in while she is mulling over an idea is referred to as ________.
A) preparation
B) insight
C) evaluation
D) elaboration
E) incubation
Answer:
Big Fish Presentations, the company profiled in the opening feature of Chapter 13,
prepares presentations that help clients present themselves in new and innovative ways.
In regard to growth, Big Fish Presentations has opted to ________.
A) pursue a conservative and patient approach to growth based primarily on
international expansion
B) pursue a liberal and aggressive approach to growth based primarily on mergers and
acquisitions
C) pursue a conservative and patient approach to growth based primarily on strategic
alliances and joint ventures
D) pursue a liberal and aggressive approach to growth based primarily on expanding
their product lines
E) pursue a conservative and patient approach to growth based primarily on expanding
their product lines
Answer:
GasBuddy and GasPriceWatch.com are companies started to help consumers save
money on gas. Which environmental trend is most likely to have provided the impetus
for the creation of these companies?
A) Regulatory changes
B) Political changes
C) Economic forces
D) Technological advances
E) Social forces
Answer:
________ costs are costs that remain the same despite the volume of goods or services
produced. ________ costs vary proportionally with the volume of goods or services
provided.
A) Expense; Non-standard
B) Standard; Non-Standard
C) Fixed; Variable
D) Non-Standard; Standard
E) Variable; Fixed
Answer:
Google is a firm that is proactive, innovative and risk-taking. From this description, we
can most accurately conclude that Google has a high level of ________.
A) enterprise focus
B) innovative intensity
C) entrepreneurial intensity
D) creative intensity
E) innovative concentration
Answer:
Kevin Andrews has decided to write a business plan that is intended to be read
primarily by his staff, which will present a blueprint for his company’s entire operation
and will provide guidance to operational managers. Kevin should write a(n) ________
business plan.
A) operational
B) tactical
C) strategic
D) summary
E) functional
Answer:
The two most common strategies pursued by firms in global industries are the
________ strategy and the ________ strategy.
A) inclusive, multidomestic
B) multidomestic, global
C) multidomestic, worldwide
D) inclusive, global
E) home, worldwide
Answer: