In the context of international franchising, under a ________ franchise arrangement, the
U.S. firm grants the rights to an individual or company (the master franchisee) to
develop one or more franchise businesses and to license others to develop one or more
franchise businesses within the country.
A) master
B) direct
C) subordinate
D) concurrent
E) multinational
Answer:
The most important issues to consider in financial feasibility analysis are: financial
performance of similar businesses, total cash needed, and ________.
A) the projected internal rate of return of the proposed venture
B) the projected years to an IPO or an acquisition for the proposed venture
C) management prowess
D) overall attractiveness of the proposed venture
E) the projected borrowing power of the proposed business
Answer:
The most important issues to consider in financial feasibility analysis are ________.
A) resource sufficiency, industry attractiveness, and total startup cash needed
B) total startup cash needed, financial performance of similar businesses, and the
overall financial attractiveness of the proposed venture
C) target market attractiveness, resource sufficiency, and product/service demand
D) total startup cash needed, management prowess, and product/service demand
E) concept testing, total startup cash needed, and financial performance of similar
businesses
Answer:
________ feasibility analysis is a quick financial assessment of the viability of a
business idea.
A) Organizational
B) Institutional
C) Product/service
D) Financial
E) Industry/market
Answer:
Copyright ________ occurs when one work derives from another or is an exact copy or
shows substantial similarity to the original work.
A) infringement
B) violation
C) intrusion
D) breach
E) duplication
Answer:
Franchising is appropriate when a ________.
A) firm’s business methods are not polished, it has a desire to grow, and it is trying to
commercialize a technology product
B) firm has a strong trademark, a desire to grow, and a well-designed business method
C) firm is trying to commercialize a technology product, it is well-funded, and it has a
desire to grow
D) firm has a weak trademark, it is well-funded, and it has a desire to grow
E) firm has a desire to grow, it has a well-designed business method, and it is well
funded
Answer:
According to our textbook, which of the following is not a quality to look for in
prospective franchisees?
A) Individual, rather than team-oriented
B) Ability to follow instructions
C) Experience in the industry in which the franchisee operates
D) Ability to operate with minimal supervision
E) Adequate financial resources and a good credit history
Answer:
According to the textbook, a brand is all of the following except a(n) ________.
A) firm’s reputation
B) firm’s credentials
C) indicator of trust and reduced risk
D) description of a company’s nature
E) written warranty
Answer:
Which of the following was not identified in the textbook as one of the common traits
and characteristics of entrepreneurs?
A) Lengthy attention span
B) Self-starter
C) Tolerant of ambiguity
D) Tenacious
E) Pessimistic disposition
Answer:
Samantha Jones owns a chain of ice cream stores in New England. To draw attention to
her stores, she adopted a very colorful and distinctive logo several years ago, which
depicts a funny-looking cow churning ice cream. Recently, a dairy company asked
Samantha if it could use a characterization of her funny-looking cow on a line of yogurt
it is coming out with, and offered to pay Samantha’s company 3 cents for every carton
of yogurt it sells that has the cow’s image on the carton. If Samantha accepts this
proposal, she will need to enter into a(n) ________ agreement with the dairy.
A) licensing
B) joint venture
C) strategic alliance
D) new product development
E) exporting
Answer:
Kelly Pryor, who has launched several successful entrepreneurial firms, seems to have a
‘sixth sense” that allows him to see opportunities that others miss. Kelly’s ability is
referred to as _________.
A) individual awareness
B) cognitive alertness
C) entrepreneurial alertness
D) individual readiness
E) cognitive readiness
Answer:
Shelly Cook recently launched a social network for chefs. One thing Shelly is thinking
about is creating is a panel of experts who can provide her ongoing direction and advice
regarding the future of her business. Shelly is thinking about creating a(n) ________.
A) analysis panel
B) discussion board
C) advisory board
D) suggestion panel
E) accountability panel
Answer:
Amazon.com’s one-click ordering system and Priceline.com’s “name-your-price”
business model are examples of ________ patents.
A) copyright extension
B) utility
C) business technique
D) trademark extension
E) business method
Answer:
According to the textbook, the number one reason that people become entrepreneurs is
to ________.
A) realize financial rewards
B) gain prestige
C) be their own boss
D) continue a family tradition
E) pursue their own ideas
Answer:
The first box in the Barringer/Ireland Business Model Template is ________.
A) product/market scope
B) revenue streams
C) business mission
D) target market
E) channels
Answer:
A(n) ________ industry is an industry that is experiencing significant international
sales.
A) global
B) mature
C) fragmented
D) declining
E) emerging
Answer:
While franchise agreements vary, each agreement typically contains the purchase
agreement and the ________ agreement.
A) legal
B) procurement
C) conversion
D) sell
E) franchise
Answer:
An individual who identifies a business idea on his or her own is referred to as a(n)
________ entrepreneur.
A) separate
B) functional
C) lone
D) individual
E) solo
Answer:
A firm’s working capital is its ________.
A) inventory and accounts receivable minus its current liabilities
B) current assets minus its current liabilities
C) total assets minus its total liabilities
D) cash and cash equivalents minus its current liabilities
E) accounts receivable minus its total accounts payable
Answer:
________ are(is) generated when increasing production lowers the average cost of each
unit produced.
A) Business scalability
B) Economies of scale
C) Reaching for scale
D) Market leadership
E) Economies of scope
Answer:
Terry Wells owns a growing company that makes innovative kitchen appliances. One
thing that Terry has to continually work at is to keep enough cash on hand to make sure
she has sufficient liquidity to meet her payroll and cover her other short-term
obligations. The day-to-day challenge of firm growth this example is referring to is
________.
A) quality control
B) capital constraints
C) price stability
D) cash flow management
E) personnel issues
Answer:
According to the textbook, the three important things that a business can do to prepare
for growth are ________.
A) plan for growth, adopt a growth-oriented business model, and stay committed to a
core strategy
B) appreciate the nature of business growth, stay committed to a core strategy, and plan
for growth
C) develop a viral marketing campaign, stay committed to a core strategy, and adopt a
growth-oriented business model
D) develop business partnerships, diversify beyond the company’s core strategy, and
appreciate the nature of business growth
E) retain or hire one or more business growth consultants, diversify beyond the
company’s core strategy, and plan for growth
Answer:
________ licensing is the licensing of a recognized trademark or brand that the licensor
typically controls through a registered trademark or copyright.
A) Goods and character
B) Products and trademark
C) Products and brand
D) Merchandise and character
E) Products and services
Answer:
Which of the following statements is not true about women-owned businesses in the
United States?
A) The number of women-owned businesses is decreasing.
B) A total of 33 percent of women-owned businesses are owned by minorities.
C) In some industries, women own a significant share of the business.
D) The number of groups that support and advocate for women-owned businesses
continues to increase.
E) Between 1997 and 2013, the number of women-owned businesses increased at a rate
of one-and-a-half times the national average.
Answer:
A ________ illustrates a firm’s positioning strategy relative to its major rivals.
A) product attribute map
B) positioning analysis grid
C) positioning plot
D) competitive analysis grid
E) positioning diagram
Answer:
A ________ franchise is an arrangement under which the franchisor grants to the
franchisee the right to buy its products and use its trade name.
A) product and trademark
B) product extension
C) business format
D) production plus
E) business design
Answer:
The federal Economic Espionage Act, passed in 1996, criminalizes ________.
A) copyright infringement
B) utility patent violations
C) trademark violations
D) design patent violations
E) the theft of trade secrets
Answer:
A firm’s ________ market is a place within a larger market segment that represents a
narrower group of customers with similar interests.
A) aspirational
B) ambitious
C) constrained
D) target
E) objective
Answer:
The ________ contains 23 categories of information that give a prospective franchisee
a broad base of information about the background and financial health of the franchisor.
A) Franchise Due Diligence Certificate
B) Franchise Offering Contract
C) Standardized Franchise Contract
D) Franchise Disclosure Document
E) Franchise Code of Conduct
Answer:
________ is (are) used to generate a number of ideas quickly.
A) Insight groups
B) Competitive intelligence gatherings
C) Examination groups
D) Survey groups
E) Brainstorming
Answer:
________ is a term that denotes the set of assets and liabilities that are linked to a brand
and enable it to raise a firm’s valuation.
A) Trademark equity
B) Brand equity
C) Logo equity
D) Trademark value-added
E) Trade name strength
Answer:
The Financials section of the Barringer/Ireland Business Model Template consists of
three boxes. The boxes are titled ________.
A) economics of the business, startup-costs, and break-even
B) revenue streams, cost structure, and financing/funding
C) profit margins, revenue streams, and break-even
D) startup-costs, operating leverage, and financing/funding
E) fixed vs variables costs, financing/funding, and break-even
Answer:
A form of intellectual property protection that grants to the owner of a work of
authorship the legal right to determine how the work is used and to obtain the economic
benefits from the work is referred to as a(n) ________.
A) assurance document
B) patent
C) trade secret
D) brand
E) copyright
Answer:
The members of homogeneous teams are ________ in terms of their ________.
A) diverse; abilities and experiences
B) diverse; abilities, but very similar in terms of their experiences
C) similar; abilities and experiences
D) diverse; experiences, but very similar in terms of their abilities
E) sometimes diverse; abilities and experiences and sometimes similar along the same
dimensions
Answer:
An event that prompts an individual to become an entrepreneur, such as losing a job,
inheriting money, or accommodating a certain lifestyle, is referred to as a(n) ________.
A) prompting event
B) entrepreneurial prompt
C) initiating event
D) triggering event
E) kick-off event
Answer: