A/B split testing, landing pages, prototyping services, and Web site usability testing are
all online tools available to assist in the ________ stage of developing a business idea.
A) opportunity recognition
B) feasibility analysis
C) business model
D) business plan
E) growth plan
Answer:
________ are individuals who invest their personal capital directly in start-ups.
A) Venture capitals
B) Business angels
C) Institutional investors
D) Investment bankers
E) Business capitalists
Answer:
SafetyWeb is a Web-based service that helps parents protect their children’s online
reputation, privacy, and safety. Which of the following approaches to identifying an
opportunity was most likely the impetus for SafetyWeb?
A) Observing trends
B) Studying government reports
C) Finding gaps in the marketplace
D) Talking to consumers
E) Solving a problem
Answer:
According to the textbook, the only way to know if your product or service is what
people want is by ________.
A) interviewing industry experts
B) library, Internet and gumshoe research
C) conducting brainstorming sessions
D) talking to them
E) surveying them
Answer:
A(n) ________ business plan, which is typically 25 to 35 pages long, works best for
new ventures who are at the point where they need funding or financing.
A) tactical
B) strategic
C) summary
D) full
E) operational
Answer:
The Barringer/Ireland Business Model Canvas consists of ________ major
category(ies) and ________ parts.
A) 1; 12
B) 3; 9
C) 6; 18
D) 4; 12
E) 2; 6
Answer:
According to the textbook, the Five Forces model can be used in the following two
ways: ________.
A) first, to help a firm determine whether it should enter an industry in an aggressive or
a conservative manner, and second, to help a firm determine whether to compete in
international markets in that industry.
B) first, to help a firm determine if it should enter a single or multiple niches in an
industry, and second, to help a firm determine whether it can be competitive in that
industry
C) first, to help a firm determine what industry it is best equipped to compete in, and
second, to help a firm determine whether to compete in international markets in that
industry
D) first, to help a firm determine what niche to enter within an industry, and second, to
help a firm determine whether it can be competitive in that industry
E) first, to help a firm determine whether it should enter a particular industry, and
second, to help a firm discern whether it can carve out an attractive position in that
industry
Answer:
In the context of computing the cost of sales, the common way to do this is to use the
percent-of-sales method, which is a method for expressing each expense item as a
percentage of ________.
A) net sales
B) gross profit
C) net income
D) operating income
E) cost of sales
Answer:
The statement of cash flows is divided into three separate activities ________.
A) profitability activities, stability activities, and investing activities
B) stability activities, earning activities, and financing activities
C) operating activities, capital activities, and liquidity activities
D) spending activities, earning activities, and capital activities
E) operating activities, investing activities, and financing activities
Answer:
There are two primary reasons to conduct an intellectual property audit. First, it is
prudent for a company to periodically determine whether its intellectual property is
being properly protected. The second reason for a company to conduct an intellectual
property audit is to ________.
A) remain prepared for a Security & Exchange Commission spot inspection
B) remain prepared to justify its value in the event of a merger or acquisition
C) remain prepared for an initial public offering
D) update the value of its intellectual property on its balance sheet
E) make sure no intellectual property has been stolen
Answer:
Historically, commercial banks ________.
A) have been a good source of funds for startup firms
B) have not funded startup firms at all
C) have been a good source of funds for manufacturing firm startups but not for service
firm startups
D) have been a good source of funds for service firm startups but not for manufacturing
firm startups
E) have not been a good source of funds for startup firms
Answer:
Kathy Denver is preparing to launch a home security firm. The team of people that will
launch Kathy’s firm are as follows: Kathy (CEO), Trevor (VP-Finance), Shelia
(VP-Sales), a four-person Board of Directors, a five-person Board of Advisors, and
Kathy’s primary investor, who will assume an advisory role. The group of people that
will launch Kathy’s firm is called its ________.
A) startup squad
B) new venture panel
C) new venture team
D) startup cadre
E) startup troop
Answer:
Most businesses that plan to use a fictitious name, which is any name other than the
business owner’s name, need a(n) ________ permit.
A) unreal business name
B) fabricated business name
C) invented business name
D) conjured business name
E) fictitious business name
Answer:
________ depict relationships between items on a firm’s financial statements.
A) Financial proportions
B) Fiscal relations
C) Fiscal projections
D) Monetary balances
E) Financial ratios
Answer:
Which of the following statements about limited partnerships is incorrect?
A) A limited partnership is a modified form of a general partnership.
B) Limited partnerships are common in real estate and oil and gas exploration.
C) A limited partnership is usually formed to raise money or to spread out the risk of a
venture without forming a corporation.
D) Both the limited partners and the general partners are responsible for the debts and
obligations of the partnership.
E) A limited partnership contains two classes of owners-general and limited partners.
Answer:
The main exclusion from copyright laws is that copyright laws cannot protect
________.
A) ideas
B) dramatic works
C) computer software
D) musical compositions
E) literary works
Answer:
In the context of a firm’s statement of cash flows, ________ activities include the
purchase, sale, or investment in fixed assets (e.g., real estate, equipment, and buildings).
A) operating
B) investing
C) capital
D) financing
E) liquidity
Answer:
The number one rule for a brainstorming session is ________.
A) no criticism is allowed
B) no freewheeling is allowed
C) no leapfrogging is allowed
D) no more than 10 people are allowed to participate
E) no wild or unrealistic ideas are allowed
Answer:
The simplest and most common form of business entity is the ________.
A) sole proprietorship
B) general partnership
C) C Corporation
D) limited liability company
E) subchapter S corporation
Answer:
Aquafina operates in the bottled water industry. The companies that offer identical or
similar products and go after the same customers that Aquafina does are Dasani and
Zephyrhills. Dasani and Zephyrhills are Aquafina’s ________ competitors.
A) direct
B) indirect
C) future
D) impending
E) potential
Answer:
According to the textbook, the passion that motivates people to launch entrepreneurial
firms typically stems from the entrepreneur’s belief that the business will ________.
A) positively influence people’s lives
B) make a lot of money
C) increase his or her prestige
D) lead to a high-level job in the corporate sector
E) provide for a secure retirement
Answer:
Adam Miller is a general partner in a venture capital firm that just funded Gold Coast
Software, a software firm in Santa Barbara, California. Gold Coast Software is
incorporated, and Adam has taken a seat on the firm’s board of directors. In board of
directors terminology, Keith is a(n) ________ director.
A) subordinate
B) senior
C) distant
D) inside
E) outside
Answer:
According to the textbook, most experts recommend ________ pricing because it
hinges on the perceived value of a product or service.
A) value-based
B) cost-based
C) competitive-based
D) tactical
E) strategic
Answer:
The three most common forms of equity funding are ________.
A) friends and family, venture capital, bank loans
B) SBIR grants, SBA guaranteed loans, bank loans
C) initial public offerings, business angels, venture capitalists
D) friends and family, business angels, bootstrapping
E) SBIR grants, venture capital, initial public offerings
Answer:
According to the textbook, the most practical way to interpret or make sense of a firm’s
historical financial statements is through ________.
A) profit analysis
B) regression analysis
C) the preparation of pro forma financial statements
D) ratio analysis
E) percentage analysis
Answer:
In the context of boards of directors, a(n) ________ director is a person who is also an
officer of the firm.
A) outside
B) junior
C) inside
D) expert
E) senior
Answer:
Industry structure refers to how ________ an industry is.
A) concentrated or fragmented
B) traditional or progressive
C) innovative or conservative
D) hierarchical or flat
E) large or small
Answer:
A(n) ________, in a business plan context, is a noteworthy event in the past or future
development of a business.
A) aspiration
B) intention
C) signpost
D) milestone
E) target
Answer:
Which of the following was not identified in the textbook as an element of a new
venture team?
A) Board of advisors
B) Suppliers and vendors
C) Key employees
D) Lenders and investors
E) Management team
Answer:
Sam Simpson is a four time business owner. One thing that has served Sam well
throughout his entrepreneurial career is his ability to build and maintain relationships
with people whose interests are similar or whose relationships could bring advantages
to his new ventures. According to the textbook, Sam is a good ________.
A) networker
B) socializer
C) linker
D) assembler
E) connector
Answer:
The Franchise Disclosure Document contains ________ categories of information.
A) 8
B) 14
C) 23
D) 35
E) 44
Answer: