The extra value a business can command in a sale is known as
a. goodwill.
b. saleable value.
c. market value.
d. asset value.
Which economist first associated the ‘risk bearing’ activity in the economy with the
entrepreneur?
a. Richard Cantillon
b. Robert C. Ronstadt
c. Peter F. Drucker
d. Jean Baptiste Say
The individual who arranges for a dealer to handle a specific product or service under
certain mutually agreed upon conditions is known as the _____.
a. franchisee
b. franchisor
c. franchiser
d. franchisette
When starting a business, which of the following sources of financing are most likely to
be used?
a. trade credit
b. factors
c. leasing companies
d. insurance companies
Mountain gap strategies refer to:
a. unique resources
b. unique locations
c. unique resources
d. unique markets
Net present value method is a capital budgeting technique that helps to minimize some
of the shortcomings of the payback method by
a. discounting all future projects.
b. recognizing past cash flows of projects.
c. recognizing future cash flows beyond the payback period.
d. recognizing the payback dollars over again.
Secondary data consists of
a. internal data only
b. external data only
c. existing information
d. newly developed primary research
Emerging opportunities in the international arena are being fueled by
a. an increase in trade barriers and the emergence of trading blocs
b. a decrease in trade barriers and the emergence of trading blocs
c. a decrease in trade barriers and a decline in trading blocs
d. an increase in trade barriers and a decline in trading blocs
Major trends in the venture capital field today include all of the following except
a. less specialized and more homogenous funds
b. emerging feeder funds
c. decrease in start-up investment amounts
d. global reach
Which of the following steps should be carried out third when deciding to sell a
business?
a. Publicize the offer to sell.
b. Value the business.
c. Finalize the prospective buyers.
d. Time the sale appropriately.
A typical symptom of impending bankruptcy failure is when
a. new competition exits the market.
b. other firms seem to be selling products that are a generation ahead.
c. retailers always seem to be understocked.
d. the entrepreneur seeks to exit the market.
A harvest plan
a. is similar to a will.
b. defines when and how business owners will realize a cash return on investment.
c. leaves the business to the next generation.
d. is simple to implement.
A critical point to be included in the business description is:
a. sales projections
b. the business cycle
c. key personnel
d. the potential advantages the new venture has over the competition
In defining research objectives, the entrepreneur should include
a. local weather
b. consumer tastes
c. competitors research objectives
d. market experts
Which of the following statements about entrepreneurial marketing is not true?
a. In entrepreneurial marketing, customers actively define the product.
b. In entrepreneurial marketing, actions are constrained by resources currently
controlled.
c. In entrepreneurial marketing, marketers seek sustainable advantage through
value-creating innovation.
d. In terms of risk perspective, entrepreneurial marketers seek ways to mitigate, stage,
or share risks.
When referring to ‘luck’ and an entrepreneur, which of the following statements is an
appropriate adage?
a. always wait for luck to happen
b. luck happens when preparation meets opportunity
c. luck happens to everyone
d. luck is the key to entrepreneurship
Of the following statements, which is true of sole proprietorships?
a. A sole proprietorship is a business that is owned and operated by one person.
b. Proprietors have limited liability for the operation.
c. Proprietors are taxed as businesses.
d. Ordinarily, proprietorships have amounts of capital available to them equal to that
available to other types of business organizations.
All of the following are important characteristics for establishing an intrapreneurial
climate except
a. the presence of explicit goals.
b. feedback.
c. positive reinforcement.
d. punishment of mistakes.
When buying a small business you need to know all of the following items except:
a. the owner’s reason for selling.
b. the competition in the area.
c. the financial picture of the business.
d. the owner’s family stability and relationships.
Financial information is important to entrepreneurs because:
a. it pulls together all the information presented in other segments of the business.
b. it quantifies all the assumptions concerning business operations.
c. it answers all questions about the business and the entrepreneur.
d. a and b are both correct.
Which of the following is not considered a principle of innovation?
a. Be action oriented.
b. Start small.
c. Invest in securities.
d. Reward heroic activity.
__________ is(are) one of the disadvantages of going public.
a. Proxy statements
b. Form 8-K
c. Shareholder pressure
d. Liquidity
One thing that should be included in the business description is
a. the name of each investor.
b. industry background.
c. potential disadvantages of the venture.
d. a list of suppliers.
The set of assumptions on which financial projections are based have little meaning.
A ‘SWOT’ analysis refers to analyzing strengths, weaknesses, opportunities, and threats.
Strategic planning is not an easy task for new ventures.
Entrepreneurs should be knowledgeable about certain legal concepts that affect their
business venture.
Incongruities are gaps or differences between expectations and reality.