Focus groups are an informal method for gathering in-depth marketing information.
In the partnership, profit and loss distribution is determined by the partnership
agreement.
Reference groups in any culture provide values and attitudes that influence behavior.
Entrepreneurial opportunities are those situations in which new goods, services, raw
materials and organizing methods can be sold at greater than their production cost.
Licensing agreements generate revenue while minimizing risk and start-up investment
costs.
Nonequity arrangements discussed by the text include licensing, management projects
and exporting.
Generally, independent, venture-capital-based start-ups by entrepreneurs tend to
outperform corporate start-ups significantly.
Most life-style entrepreneurs eagerly pursue firm growth.
A reflection task would involve thinking about what strategies should be used to solve a
problem.
The Internet is a useful tool to access information but is generally not a good vehicle for
marketing goods and services.
Forward integration is taking a step back on the value chain toward the raw materials.
If there is a poor fit between its resources and the external environment, then the firm
will not enjoy superior performance.
When a venture is in trouble and facing bankruptcy, the entrepreneur should first sit
down with his or her spouse and explain what is happening.
In a partnership, the death of a general partner generally does not result in termination
of the partnership.
Stockholders in a corporation share day-to-day control of the entrepreneur.
A copyright protects original works of authorship.
The situation analysis describes past and present business achievements of the new
venture.
In an encouraging climate for corporate entrepreneurship, rewards should be based on
the attainment of established performance goals.
To maintain objectivity, the business plan should not be written by the entrepreneur.
Corporate venturing consists of creating something new of value either by redefining
the company’s current products or services, developing new markets, or forming more
formally autonomous or semiautonomous units or firms.
The corporation is considered a legal person that is taxable and absorbs liability.
Angel investors typically finance firms that are close to their homes.
In order to be the basis for a firm’s superior performance, a bundle of resources must be
valuable, rare, and imitable.
The purpose of the pro forma sources and applications of funds statement is to show the
relationship between revenue and expenses.
A trade secret is protected by state law.
A provisional patent application can be used to establish the date of conception of the
invention.
Sales in excess of the break-even point will result in a profit, as long as the selling price
remains above the cost to produce each unit.
Because it is so severe, Chapter 7 must always be voluntary.
In evaluating an LBO’s asking price an entrepreneur can use qualitative measures such
as evaluating the abilities of key personnel.
The Kaufmann foundation Provides resources for entrepreneurship education and
research and lists the angel (private investor) groups throughout the United States.
The asset base for loans usually is accounts receivable, inventory, equipment, and real
estate.
Bootstrap financing involves using any possible method, such as discounts for volume
purchasing, to conserve cash.
The ______ frequently issues guidelines for mergers.
A.SBDC
B.Department of Justice
C.Supreme Court
D.United States Senate
Which is not a strategy that is used to elicit information about the other party in a
negotiation?
A.Take up a new negotiation at the end of the first.
B.Ask lots of questions.
C.Make multiple offers simultaneously.
D.Build trust and share information.
List the critical factors that an effective succession plan needs to consider.
Inventory control:
A.is not necessary for small firms.
B.eliminates the need to carry inventory.
C.balances the cost of carrying inventory with the cost of lost sales.
D.requires a computerized inventory system.
In which form of organization would it be possible for individuals that don’t have any
ownership stake in the business to make decisions?
A.Sole proprietorship
B.Limited partnership
C.General partnership
D.Corporation
Financial projections to assess the impact of different scenarios are calculated using:
A.a spreadsheet program.
B.an inventory management program.
C.the Internet.
D.a graphics program.
The set of decisions, actions, and reactions that first generate, and then exploit over
time, a new entry is:
A.entrepreneurial financing.
B.entrepreneurial strategy.
C.bootstrapping.
D.informal organization.
The valuation approach that gives the lowest value of the business is:
A.book value.
B.liquidation value.
C.present value of future cash flows.
D.earnings approach.
___________ refers to a diversification strategy that involves taking a step forward
(down) on the value-added chain toward the customers.
A.Backward integration
B.Horizontal integration
C.Forward integration
D.Conglomerate integration
The marketing mix consists of:
A.product, price, research, and promotion.
B.product, research, distribution, and promotion.
C.product, price, distribution, and promotion.
D.product, price, distribution, and research.
Outside financing:
A.usually takes between 15 days to three months to raise capital.
B.increases the company’s flexibility.
C.increases the venture’s impulse to spend.
D.increases a firm’s drive for sales and profits.
The sales budget:
A.should be prepared before developing the pro forma income statement.
B.must be prepared by the venture’s accounting firm.
C.must be based on actual sales figures for the last month.
D.needs to be prepared only in case of a manufacturing firm.
Warby Parker was started by:
A.Neal Blumenthal
B.Sergy Bryn
C.Mark Zuckerberg
D.Google
The ________ is filed to establish a date of conception of an invention and replaces
what used to be known as a disclosure document.
A.provisional patent
B.defensive document
C.trademark
D.copyright
What term describes the practice of paying for goods indirectly through another source?
A.Licensing
B.Barter
C.Promotion
D.Exporting
Which of the following is not true about the operations plan portion of the business
plan?
A.Only service businesses need an operations plan.
B.An operations plan describes the flow of goods and services from production to
customer.
C.The role of technology in the business transaction process is discussed.
D.The shipping process and inventory control process can be discussed in this section.
Franchising:
A.is the only imitation strategy discussed in the text.
B.reduces risk of downside loss.
C.is the same as the me-too strategy.
D.reduces the amount of competition an entrepreneur will face.
Frequent flier miles would be an example of which barrier to entry?
A.Building customer loyalties
B.Securing access to supply of key resources
C.Creating product uniqueness
D.Building in switching costs
Identify and describe the three different types of franchises.
Which of the following statements is true?
A.Customers form the largest source of new ideas for entrepreneurs.
B.While members of the distribution channel may be willing to provide new ideas for
entrepreneurs, they may not help market them.
C.The Federal Government is not a source of new ideas since the patent information
they collect is confidential.
D.Potential entrepreneurs should establish a formal method for monitoring and
evaluating competitive products and services on the market.
A new entry includes all of the following except:
A.Offering a new product to a new market
B.Offering an established product to an new market
C.Creating a new brand name for your company
D.Creating a new organization
The marginal contribution is defined as:
A.selling price per unit minus variable cost per unit
B.total fixed costs minus selling price per unit
C.variable cost per unit minus the selling price per unit
D.total fixed costs plus total variable costs
_____ is the process of gathering information in order to determine who will buy the
product and what is the most appropriate distribution channel.
A.Market segmentation
B.Marketing planning
C.Market mixing
D.Marketing research
Which of the following is not a part of the introductory page?
A.the name and address of the company
B.statement of confidentiality
C.amount of financing needed
D.the names and addresses of all managers
In which phase of the SBIR grant process are funds used to create a prototype of a
product or service?
A.Phase I
B.Phase II
C.Phase III
D.Phase IV
Owner’s equity represents:
A.the net worth of the business.
B.only capital invested by the entrepreneur.
C.everything of value owned by the firm.
D.all assets owned by the entrepreneur.
Which of the following software programs is most widely used by entrepreneurs?
A.Quickbooks
B.Vision Point
C.Peachtree
D.all of these.
_____________ are good sources of information for financial and industry operating
ratios.
A.RMA eStatement Studies and BizMiner
B.Market Share Reporter and the SBA report
C.U.S. Census Statistical Abstracts and MarketLine
D.Encyclopedia for American Industries and Mintel Reports
Which of the following is true of implementing a market plan?
A.It is meant to be a tentative plan by the entrepreneur to a specific strategy.
B.It need not be assigned to an individual for coordinating and implementing the plan.
C.It is a formality that serves as a superficial document to outside financial supporters
or suppliers.
D.It is a commitment to make adjustments as needed or dictated by market conditions.
Lead time is:
A.the time from production to market delivery
B.the time in which the first mover operates in the market under conditions of limited
competition
C.the time it takes for an entrepreneur to go from the concept stage to the delivery stage
D.the time between product introduction and customer acceptance
Offering a small product range to a small number of customer groups is:
A.a narrow-scope strategy.
B.an imitation strategy.
C.a broad-scope strategy.
D.a way of reducing market uncertainties.
Entrepreneurs in the _____________ quadrant of firm growth aspire to grow their
businesses but do not possess the ability to do so.
A.Constrained growth
B.Unused potential for growth
C.Actual growth
D.Little potential
The window of opportunity is part of:
A.assessing the attractiveness of a new entry opportunity.
B.creating a resource bundle.
C.choosing an entry strategy.
D.choosing a risk reduction strategy.
Give 5 examples of questions that could be asked using the checklist method.
Discuss the main advantages of an LLC over an S-Corp.
Explain the three major components of an R&D partnership.
Define capital budgeting.
Explain the potential issues that could occur in establishing an international joint
venture.
Explain the McMullen-Shepherd Model.
Identify the main advantages and disadvantages of going public.
Define the contribution margin and its importance.
Identify and briefly describe the major stages of entrepreneurial strategy.
Identify and briefly describe the four sections of an opportunity assessment plan.
Identify the nine areas an entrepreneur should consider in choosing a legal form of
organization.
Identify and explain, give examples when appropriate, of key areas that should be
investigated when conducting an environmental analysis.
Identify the 4 major considerations in distribution channel selection.
Blue-sky laws may speed up the process and lessen costs to the company going public.
Identify, in order, and briefly explain each step of conducting market research giving
examples where appropriate.
What is a nonequity arrangement?Define the two major types of nonequity
arrangements: licensing and turn-key projects, and give at least one advantage and
disadvantage for each.