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An error of commission occurs from the decision not to act on a new entry opportunity.
The sponsoring company in a R&D limited partnership is the limited partner.
Depreciation is considered a cash outlay, not an expense.
Effective time management can increase an entrepreneur's job satisfaction.
In an Internet start-up, advertising costs will be extensive to create awareness of the
website.
The General Agreement on Tariffs and Trade is an attempt to impose significant tariffs
on business between nations.
The corporation can be created only by statute.
Corporations distribute profits primarily through dividends.
Large positive cash flows usually occur in the first months of a new venture.
More than 50 percent of firms filing for Chapter 11 bankruptcy emerge from the
process.
Capital budgeting and decision making is complicated and therefore use of an
accountant is recommended.
Inventory is considered a source of funds because of the revenue it brings in.
All owners, regardless of percentage of ownership, are required to personally guarantee
SBA loans.
Any amount due within a year is considered a current liability.
The costs of establishing R&D limited partnerships are greater than conventional
financing.
The three major risk reduction strategies discussed in the text are narrow scope, broad
scope and imitation.
The final price of a product or service is the sum of total cost plus profit margin.
Focus groups typically consist of 10-12 potential customers.
Venture capital firms generally prefer a minimum funding level of $100,000.
A marketing strategy and action plan is defined as specific activities outlined to meet
the venture's business plan goals and objectives.
If the existing product is being sold to teenagers in one country and new entry involves
selling the existing product to teenagers in a new country then this represents a new
product use.
The longer the entrepreneur takes to research a new entry, the less accurate customer
demand estimates are.
One advantage of an ESOP is that the company can obtain a tax benefit by deducting
ESOP contributions.
Any patent rights on technology developed in SBIR grants are the property of the
federal government.
How Ewing Kauffman ran his business illustrates corporate entrepreneurship.
In a social network there are two major properties, density and centrality.
The assessment of a new entry attractiveness is less about whether this opportunity
"really" exists or not and more about whether the entrepreneur believes he or she can
make it work.
Costs of goods sold should be calculated using actual cost figures; using industry
standard figures is too inaccurate.
The valuation approach that gives the lowest value of the business is the earnings
approach.
An entrepreneur focuses on the operating costs before completion of the sales budget.
The laws governing business arrangements have been standardized over 150
international legal systems.
Growing ventures tie up more cash in their inventory than in any other part of the
business.
Interviewing is less expensive than observation.
The Small Business Investment Company Act of 1958 married the use of private capital
with government funds to finance small businesses.
When the window of opportunity is open, the environment is unfavorable for
entrepreneurs to exploit a new product or enter a new market with an existing product.
Assets represent the net worth of the firm.
To overcome customer uncertainty, the venture should educate customer through
demonstration and documentation on how to use the product.
Licensing can be a way to start a new venture when the idea may infringe on someone
else's patent, trademark, or copyright.
Which of the following is most effective in grief-recovery?
A.Restoration-orientation
B.Loss-orientation
C.Dual process
D.Grief recovery process
The top area of venture capital investment in 2011 was in:
A.software.
B.telecommunications.
C.media and entertainment.
D.banking.
The entrepreneur has which of the following responsibilities regarding taxes?
A.Withhold federal and state taxes for employees.
B.Pay state and federal unemployment taxes.
C.File end-of-year tax returns.
D.All of these.
Manufacturer's representatives are marketing middlemen that:
A.take title and physical possession of the product.
B.take physical possession of the product.
C.work exclusively for the entrepreneur.
D.are paid a commission when a sale is made.
If there is a good fit between the venture's bundle of resources and the external
environment:
A.the firm will be rewarded with superior performance.
B.the entrepreneur will be unable to compete in the market segment.
C.environmental variables will be irrelevant.
D.demand uncertainty will be irrelevant.
Identify and describe the three majors types of innovation.
Which of the following would be considered a variable expense?
A.Rent
B.Raw materials
C.Interest
D.Insurance
To apply for a trademark:
A.intent to use the mark is required.
B.the mark must actually have been used on goods.
C.the mark must be copyrighted.
D.the mark must have been used on goods that are already traded.
_____ is a type of merger in which acquiring and acquired companies have related
production and/or distribution activities but do not have products that compete directly
with each other.
A.Market extension merger
B.Horizontal merger
C.Product extension merger
D.Vertical merger
The most frequently used source of short-term funds when collateral is available is:
A.SBA Microloans.
B.SBA 7(a) loans.
C.R&D limited partnerships.
D.commercial bank loans.
_____________ is the process of an entrepreneur conducting business activities across
national borders.
A.Intrapreneurship
B.International entrepreneurship
C.Domestic entrepreneurship
D.Direct importing
The organization plan describes the business':
A.physical plant and machinery layout.
B.location as well as its plant(s).
C.system of distribution.
D.form of ownership.
Which U.S. Census publication provides information about production and shipments
on a wide range of products?
A.Service Annual Survey
B.Current Industrial Report
C.County Business Patterns
D.Annual Survey of Manufacturers
Which of the following is not a condition that makes a contract legally enforceable?
A.Consideration is given by both parties
B.All parties involved are competent
C.Money is exchanged for products/services
D.Acceptance of the offer must be voluntary
The courts consider oral agreements under $500 binding if:
A.the agreement is for less than one year.
B.the parties have previously done business together.
C.the transaction is for services rendered.
D.the new venture is incorporated.
(p.362-363)A firm that manufactures washing machines starts to manufacture detergent
illustrates _______ integration.
A.Backward
B.Forward
C.Horizontal
D.Side
By controlling __________, the firm can ensure maximum service to the customer.
A.production
B.sales
C.costs
D.inventory
Sara Blakely got the idea for her company when:
A.She was a salesperson and disliked the look of pantyhose and open toed shoes.
B.She was in a graduate class where her team developed the idea.
C.Her family asked her to take over the business after finishing graduate school.
D.She was working as a salesperson and listened to complaints of customers.
Which of the following is true about corporate entrepreneurship?
A.Equity in a new venture should not be used as a reward due to its uncertain value
B.A company must be willing to invest money without a guarantee of a return in the
short term
C.Teams should be segmented by department
D.Top management should not be involved in the process
Networking can be used as an informal method of gathering primary data.
Customer uncertainty can take all of the following forms except:
A.not understanding how to use the product
B.not knowing whether the product will perform as expected
C.not knowing where to buy the product
D.being uncertainty adverse in general and resistant to change
Under the ________, reporting requirements are increased and due dates of reports to
the SEC are accelerated.
A.Sarbanes-Oxley Act
B.Blue sky laws
C.Securities Regulation Act
D.Social Security Act
In a straight commercial loan funds are typically used for what time period?
A.Less than 30 days
B.30-90 days
C.180 days
D.Up to one year
______ is(are) the major source of revenue.
A.Borrowing from banks
B.Outside investors' contributions
C.Sales
D.Dividends
Which of the following was not discussed in the text as a breakthrough innovation?
A.The airplane
B.The Internet
C.Spanx
D.Penicillin
Which of the following is(are) not an advantage of an international joint venture?
A.Complimenting governmental policies.
B.The ease of developing common business objectives.
C.Ready access to international markets.
D.Cultural synergy.
All of the following are government sources of information except:
A.Census reports
B.Export/Import Authority
C.NAICS and SIC
D.Hoovers
Copyrights are registered with:
A.the U.S. Justice Department.
B.the Internet Commission.
C.the GATT.
D.the Library of Congress.
Which franchise below is an example of the most popular type of franchise?
A.KFC
B.An automobile dealership
C.H&R Block
D.Real estate franchises
Copyrights can protect all of the following except:
A.music.
B.molded plastic parts.
C.sculptures.
D.models.
The difference between a board of directors and a board of advisors is that:
A.the board of advisors meets less frequently.
B.the board of directors lacks voting authority.
C.the board of directors is subject to less pressure of litigation.
D.the board of advisors are compensated.
Which type of ownership is the least expensive to start?
A.Corporation
B.General partnership
C.Limited partner
D.Sole proprietorship
Which of the following is an internal environmental variable?
A.The economy
B.Technology
C.Industry demand
D.Financial resources
