To be successful the partners in a joint venture should have symmetry.
The marketing plan is not meant to be a commitment by the entrepreneur to a specific
strategy.
A trademark is a distinguishing word, name, or symbol used to identify a product.
Banks will lend a company up to 50% of their account receivable value.
The first step in preparing a pro forma income statement is to separate fixed and
variable costs.
In managing fixed assets the entrepreneur should buy, instead of lease, whenever
possible.
When business failure looks probable, the entrepreneur should seek outside advice.
Licensing requires the licensee to pay a royalty to the licensor.
Justin Parer has created flexibility over the money side of the business and control over
how strategies are formed.
All ventures have some equity.
When estimating expenses for the pro format income statement, it is best to be
conservative.
The two most common means of acquisition are the entrepreneur’s direct purchase of
the firm’s entire stock or assets or the bootstrap purchase of these assets.
One advantage of leasing equipment is that lease payments represent an expense and
can be used as a tax deduction.
External investors generally require the entrepreneur to commit a large percentage of
his or her personal assets.
The big-dream approach requires the entrepreneur to dream about the problem and its
solution, thinking big.
Superficial similarities exist when the underlying mechanisms of the technology
resemble, or match, the underlying mechanisms of the market.
A nonequity arrangement is a method by which an entrepreneur can enter a market and
obtain sales and profits without direct equity investment in the foreign market.
All bankruptcies are handled by the U.S. Supreme Court.
The most common type of joint venture is between two or more public sector
companies.
Most entrepreneurs indicate that their most significant venture was not their first one.
The public equity market is available only for high-potential ventures.
Both partnerships and proprietorships serve as nontaxable conduits of income for their
owners.
The knowledge needed to generate innovation cannot be easily learned from a textbook.
Selling expense is an expense that can be expected to remain stable over time.
One key advantage of an ESOP is that it enhances employee motivation.
Brainstorming is an unstructured process used for generating possible ideas about a
problem within a limited time frame through the spontaneous contributions of
participants.
The shorter the time before a company goes public, given that profits and sales growth
occur, the less percentage of equity the entrepreneur will have to give up per dollar
invested.
A new franchisee can be expected to be required to undergo considerable training on
operating the business.
Research indicates that male entrepreneurs tend to start their first significant venture in
their middle 30s, while women entrepreneurs tend to do so in their early 30s.
First movers can monitor changes in the market that might be difficult or impossible to
detect for those firms not participating in the market.
The U.S. Chamber of Commerce and Small Business Development Centers are good
places to get information and assistance in starting a new business.
Key success factors are the requirements that any firm must meet to successfully
compete in a particular industry.
The informal investment market contains the smallest pool of risk capital in the U.S.
Venture capitalists tend to avoid investment proposals that are referred from lawyers
and accountants.
Trends often provide one of the greatest opportunities for starting a new venture.
A new entry can be either offering a new product to a new market or creating a new
organization.
Sole proprietorships usually use a calendar year for tax purposes.
In projecting cash flows the most difficult problem is in determining the exact amount
of monthly receipts and disbursements.
In order for a joint venture to be successful:
A.the expectations of the results must be reasonable.
B.there should be symmetry between the partners.
C.the timing must be right.
D.all of the above.
Profit from the business would be included on the balance sheet in which section?
A.Assets
B.Liabilities
C.Owners equity
D.Assets or liabilities
Our text tells us that much of an entrepreneur’s time during start-up is spent:
A.putting out fires.
B.negotiating.
C.delegating.
D.allocating resources.
Which of the following is not an aspect of nonverbal or hidden language?
A.Energy
B.Business relationships
C.Space
D.Time
When a company receives an SBIR grant, any patent rights and software generated
belong to:
A.the Federal Government.
B.the bank securing the loan.
C.the Small Business Administration.
D.the entrepreneur.
Authors or publishers of software are protected under:
A.copyrights.
B.trademarks.
C.utility patents.
D.trade secrets.
Discuss the main disadvantages of an acquisition.
ESOPs account for ____ of the nation’s 10 million employees.
A.15%
B.35%
C.40%
D.50%
The disclosure document provided by the franchisor:
A.is required by the FTC.
B.will state a guaranteed yearly return for the franchisee.
C.is done on a voluntary basis.
D.has information that is certified by a CPA and the FTC so it is always a reliable
source of data.
________ is the process of improving an individual’s productivity through more
efficient use of time.
A.Time management
B.Delegation
C.The principle of effectiveness
D.The principle of prioritized planning
When it comes to decision making, in a limited partnership:
A.there is no separation of ownership and control.
B.limited partners have no control over business decisions.
C.limited partners have an equal say, but no liability.
D.the partners have control based on invested capital.
Which of the following was not a recommended method of evaluating the potential
market for a new franchise in the text?
A.Evaluate traffic flow in the area
B.Hire a marketing firm to survey foot traffic near the proposed location
C.Locate competitors and their proximity to the proposed franchise location
D.Evaluate demographics in the area
First movers:
A.are not able to gain from moving down the experience curve.
B.are better positioned to satisfy customers.
C.face more competition than late movers.
D.fail to secure important channels.
The Maxwell’s company, PowerBar, was purchased by what company?
A.Proctor and Gamble
B.Nestle
C.Heinz
D.Pilsbury
Accredited investors are:
A.investors who purchase over $5,000 of the venture’s securities.
B.investors with incomes in excess of $1,000,000 in each of the last two years.
C.investors whose net worth is $500,000 or less.
D.directors, executive officers, and general partners of the issuing company.
The ____ is used to measure the short-term solvency of a venture.
A.return on investment
B.average collection period
C.debt ratio
D.current ratio
The __________ is the price at which the entrepreneur is indifferent about whether to
accept the agreement or choose an alternative.
A.break even price
B.franchise price
C.bargaining zone
D.reservation price
______ is/are a cash disbursement and _____ is/are an operating expense.
A.Debt; interest
B.Amortization; salaries
C.Depreciation; rent
D.Depreciation; cost of goods sold
The design of the organization will be the entrepreneur’s formal and explicit indication
to the members of the organization as to what is expected of them. Typically these
expectations can be grouped into five areas, identify and describe them.
Which of the following is a contract that grants the owner protection, based on the
appearance of an object?
A.Utility patent
B.Design patent
C.Plant patent
D.Disclosure document
Compensation for board members can take the form of all of the following except:
A.perks, such as vacations.
B.stock.
C.stock options.
D.cash payments.
The executive summary section should:
A.be prepared before the total plan is written.
B.be about two to three pages in length.
C.highlight key financial milestones that have been achieved.
D.try to summarize every section of the plan.
Exporting:
A.is the least popular method for going global.
B.results in a lack of control over quality.
C.results in an inability to realize location economies.
D.can be direct or indirect.
The tendency among many entrepreneurs is to:
A.avoid planning.
B.not take initiative.
C.not market their product or services.
D.lose focus on the business plan.
Which of the following creative methods involves having participants write down their
ideas several times a day?
A.Collective notebook method
B.Parameter analysis
C.Brainstorming
D.Forced relationship
Trends for the next decade include all of the following except:
A.Green products
B.New age music
C.Clean energy
D.Health Maintenance
In 1994 Robert Mondavi came up with:
A.a capsule-free, flange-top bottle design.
B.a new flavor of wine cooler that revolutionized the industry.
C.a new brand of liquor with a unique marketing campaign.
D.a way to vacuum cork bottles.
Which of the following is not a reason that first movers are better positioned to satisfy
their customers?
A.They have a chance to select and secure the most attractive segments of the market
B.They have the chance to position themselves at the center of the market
C.They have less uncertainty over the nature of the market
D.They have a chance to establish their product as the industry standard
Zappos, under a cash flow crunch, was bought out by _______.
A.Google
B.Microsoft
C.Amazon
D.Netflix
This problem-solving method requires the entrepreneur to list the properties of an item
or problem and then look at each from a variety of viewpoints.
A.Value analysis
B.Attribute listing
C.Brainwriting
D.Big-dream approach
An opportunity assessment plan:
A.is the same thing as a business plan.
B.is longer than a business plan.
C.has a lot of computer-based spreadsheets.
D.focuses on the opportunity, not the venture.
When collecting marketing information the entrepreneur should:
A.not include general environmental information.
B.start with narrow-based data and work down to a more broader scope of information.
C.identify competitors.
D.not aim to define a specific market.
In negotiations the _________ task involves how the benefits of the relationship will be
allocated between the parties.
A.distributive
B.assessment
C.integrative
D.reservation
What are the main characteristics of an LLC?
List three reasons why a Business Angel may reject a proposal.
Define superficial similarities and structural similarities. Which was noted as the more
challenging for entrepreneurs?
Identify 5 of the 12 characteristics of an entrepreneurial environment.
What are the main benefits of a registered trademark?
List the 4 major factors of the external environment identified by the marketing system.
Explain the difference between errors of omission and commission.
What are the major reasons why an entrepreneur would go global?
What are the three types of risk capital markets?
What is a pro forma sources and applications of funds statement?Give examples of
sources and used of funds.
Explain what the differences are between a business plan and an opportunity assessment
plan.
Once the board of advisors have been hired, the entrepreneur should not question their
advice.
Identify and define the 4 types of questions/tasks related to increasing cognitive ability.
What are the 4 main growth strategies discussed in the text?Briefly define each.
Identify and define the three major types of bankruptcy.