The ability to notice things without engaging in deliberate search is referred to as:
A) cognitive alertness
B) cognitive awareness
C) managerial alertness
D) entrepreneurial alertness
E) individual awareness
Answer:
A(n) ________, which is intended to be a blueprint for a company’s operations, is
40-100 pages long and is meant primarily for an internal audience.
A) operational business plan
B) full business plan
C) deliberate business plan
D) summary business plan
E) tactical business plan
Answer:
Apple for computers, Zeo for sleep aids, and Proactiv for acne medication are examples
of:
A) certifications
B) copyrights
C) patents
D) trade secrets
E) trademarks
Answer:
Which of the following selections correctly identifies the three types of patents?
A) manufacturing patents, process patents, and plant patents
B) usefulness patents, purpose patents, and genetic patents
C) explicit patents, implicit patents, and plant patents
D) utility patents, design patents, and plant patents
E) manufacturing patents, service patents, and other patents
Answer:
The simplest form of business entity is the:
A) sole proprietorship
B) general partnership
C) C Corporation
D) limited liability company
E) subchapter S corporation
Answer:
Which form of intellectual property protection is the only one expressly mentioned in
the original articles of the U.S. Constitution?
A) assurances
B) patents
C) copyrights
D) trade secrets
E) trademarks
Answer:
________ are trademarks or service marks used by the members of a cooperative,
association, or other collective group, including marks indicating membership in a
union or similar organization.
A) Collective marks
B) Share marks
C) Examination marks
D) Joint marks
E) Certification marks
Answer:
Which of the following is typically not included in the founders’ agreement for a firm?
A) marketing plan
B) legal form of business ownership
C) buyback clause
D) apportionment of stock
E) identity and proposed titles of the founders
Answer:
Kim Baker just purchased the rights to develop multiple School of Rock franchises in
England. Kim just purchased a(n):
A) concurrent franchise arrangement
B) indirect franchise arrangement
C) lateral franchise arrangement
D) direct franchise arrangement
E) subordinate franchise arrangement
Answer:
According to a concept called ________ theory, it is more effective for the units of a
growing chain to be run by franchisees than by managers, because managers are usually
paid a salary and may not be as committed to the success of their individual units as
franchisees, who are in effect the owners of the units they manage.
A) agency
B) stimulus
C) control
D) leadership
E) motivation
Answer:
Which of the following is the most important thing that an entrepreneur, or team of
entrepreneurs, can do to build a strong ethical culture in their organization?
A) implement an ethics training program
B) write a mission statement
C) lead by example
D) hire an ethics compliance officer
E) write a code of conduct
Answer:
Some companies monitor the integrity of their brands through a program of:
A) brand administration
B) brand persistence
C) brand determination
D) brand resolution
E) brand management
Answer:
A skills profile is a chart that depicts the:
A) preferable skills and abilities of the members of a firm’s board of advisors
B) preferable skills and abilities of the members of a firm’s board of directors
C) most important skills that are needed in a business startup and where skills gaps exist
D) skills and abilities that will be needed for a firm to maintain an aggressive growth
strategy
E) the skills of a company’s customers and how those skills impact the product and
services a company provides
Answer:
If the owners of a corporation don’t file their annual paperwork, neglect to pay their
annual fees, or commit fraud, a court could ignore the fact that a corporation has been
established and the owners could be held personally liable for the actions of the
corporation. This chain of events is referred to as:
A) vacating the corporate status
B) yielding the corporate privilege
C) surrendering the corporate shield
D) piercing the corporate veil
E) capitulating the corporate doctrine
Answer:
________ are anything rare and valuable that a firm owns.
A) Tactical assets
B) Tactical properties
C) Deliberate assets
D) Strategic assets
E) Operational assets
Answer:
________ is the process in which an impartial third party helps those involved in a
dispute reach an agreement.
A) Conciliation
B) Reconciliation
C) Negotiation
D) Appeasement
E) Mediation
Answer:
Frank Patterson owns a chain of barbershops that started near Atlanta and has expanded
into northern Florida, South Carolina, North Carolina, and West Virginia. Frank is
growing his company via a strategy of:
A) geographic expansion
B) market penetration
C) product line extension
D) outsourcing
E) licensing
Answer:
A firm’s ________ is a plan for how it competes, uses its resources, structures its
relationships, interfaces with customers, and creates value to sustain itself on the basis
of the value it creates.
A) business plan
B) business model
C) tactical model
D) strategic plan
E) operations model
Answer:
Which of the following is not one of the “red flags” listed in the textbook that raises
questions about one of more aspects of a company’s business plan?
A) founders with none of their own money at risk
B) defining the market size too narrowly
C) a poorly cited plan
D) sloppiness in any area
E) overly aggressive financials
Answer:
A 2011 survey conducted by the University of Maryland’s School of Business and
Network Solutions asked small business owners how well they competed with other
companies for good employees, and only ________ said they were successful.
A) 16 percent
B) 28 percent
C) 30 percent
D) 46 percent
E) 66 percent
Answer:
A(n) ________ is an institution, such as Credit Suisse First Boston, that acts as an
underwriter or agent for a firm engaged in an initial public offering.
A) venture bank
B) statutory bank
C) fiduciary bank
D) investment bank
E) public bank
Answer:
A(n) ________ describes why a company exists and what it aspires to become.
A) tactical statement
B) values statement
C) mission statement
D) operations statement
E) strategic statement
Answer:
Corporations that trade their stock on organized exchanges like the New York Stock
Exchange and the NASDAQ are called:
A) national corporations
B) civil corporations
C) public corporations
D) premier corporations
E) common corporations
Answer:
The four main financial objectives of a firm are:
A) efficiency, effectiveness, strength, and flexibility
B) power, success, efficiency, and effectiveness
C) control, effectiveness, liquidity, and power
D) success, strength, liquidity, and profitability
E) profitability, liquidity, efficiency, and stability
Answer:
Creating ________ means creating awareness and a sense of anticipation about a
company and its offerings.
A) ruckus
B) noise
C) clatter
D) clamor
E) buzz
Answer: