Which of the following statements is untrue regarding founding teams?
A) The members of heterogeneous teams are diverse in terms of their abilities and
experiences.
B) The members of homogenous teams are very similar in terms of their abilities and
experiences.
C) Teams that have worked together before have an edge.
D) Studies show that more than one individual starts 50 to 70 percent of all new firms.
E) It is generally believed that new ventures started by an individual have an advantage
over new ventures started by a team.
Answer:
A product attribute map is used to help a firm determine if ________.
A) it is emphasizing benefits rather than features
B) its branding strategy is appropriate
C) its market segmentation is correct
D) its positioning strategy is appropriate
E) its target market is appropriate
Answer:
Jamie Finch is crafting the business model for her fashion design firm. She just
completed the section that describes how her firm plans to compete relative to her
rivals. Jamie just completed the ________ portion of her business model template.
A) operations
B) core strategy
C) resources
D) strategic plan
E) tactical strategy
Answer:
All of the following are advantages of a sole proprietorship except ________.
A) creating one is easy and inexpensive
B) unlimited liability
C) it is not subject to double taxation
D) the owner maintains complete control of the business
E) business losses can be deducted against the sole proprietor’s other sources of income
Answer:
In various studies, researchers have found that from ________ percent of the variation
in firm profitability is directly attributable to the industry in which a firm competes.
A) 4 to 12
B) 8 to 30
C) 18 to 42
D) 22 to 56
E) 34 to 70
Answer:
The strength and vigor of a firm’s overall financial posture is referred to as ________.
A) liquidity
B) effectiveness
C) stability
D) profitability
E) efficiency
Answer:
According to the textbook, it is ________.
A) not inevitable that a business enter the decline stage of the organizational life cycle
B) inevitable that a business enter the decline stage of the organizational life cycle
C) not inevitable that service firms enter the decline stage of the organizational life
cycle but is inevitable for manufacturing firms
D) not inevitable that manufacturing firms enter the decline stage of the organizational
life cycle but is inevitable for service firms
E) not inevitable that international firms enter the decline stage of the organizational
life cycle but is inevitable for strictly domestic firms
Answer:
________ refers to the activities the firm takes to communicate the merits of its product
to its target market.
A) Sponsorship
B) Advertising
C) Endorsement
D) Promotion
E) Price
Answer:
Alex has a number of casual acquaintances that he interacts with infrequently. The
relationships that Alex has with these people are referred to as ________ relationships.
A) strong-tie
B) moderate-tie
C) lateral-tie
D) weak-tie
E) multiple-tie
Answer:
According to a recent FTC report, instances of problems between franchisors and their
franchisees tend to be ________.
A) prevalent practices
B) isolated occurrences
C) nonexistent
D) prevalent practices for product and trademark franchise systems and isolated
occurrences for business format franchise systems
E) isolated occurrences for product and trademark franchise systems and prevalent
practices for business format franchise systems
Answer:
Which of the following statements is incorrect in regard to entrepreneurial alertness?
A) The research findings on entrepreneurial alertness are conclusive.
B) Alertness is largely a learned skill.
C) People who have more knowledge of an area tend to be more alert to opportunities
in that area than others.
D) The term “entrepreneurial alertness” is often associated with a ‘sixth sense” that
seems to allow some people to see opportunities that others miss.
E) Entrepreneurial alertness is defined as the ability to notice things without engaging
in deliberate search.
Answer:
________ is the process of generating a novel or useful idea.
A) Innovation
B) Imagining
C) Creativity
D) Visualization
E) Envisioning
Answer:
The two general categories of business models are ________ and ________.
A) normal; unique
B) standard; disruptive
C) ordinary; revolutionary
D) customary; unique
E) ordinary; disruptive
Answer:
Which of the following is not an advantage of a general partnership?
A) Business losses can be deducted against the partners’ other sources of income.
B) The skills and abilities of more than one individual are available to the firm.
C) The liquidity of each partner’s investment is low.
D) Creating one is relatively easy and inexpensive compared to a C corporation or
limited liability company.
E) It is not subject to double taxation.
Answer:
An ________ is conducted to determine the intellectual property a company owns.
A) intellectual property audit
B) intangible materials audit
C) academic property inventory
D) intellectual materials inventory
E) intangible property inventory
Answer:
In a ________ corporation, the voting stock is held by a small number of individuals
and is very thinly or infrequently traded.
A) public
B) private
C) narrow
D) cautious public
E) closely-held
Answer:
Her Campus Media, the focus of the opening feature of Chapter 4, features a vibrant
online magazine, with feature articles targeted toward all aspects of college life and
survival. According to the feature, Her Campus’s business model focuses on connecting
companies with college females. The key to making this work is ________.
A) the strength of Her Campus Media’s management team
B) the strength of Her Campus Media’s brand
C) the quality of the online content that Her Campus Media produces
D) the functionality and vibrancy of the company’s Web site
E) Her Campus’s unparalleled access to college females
Answer:
A ________ market is a place within a market segment that represents a narrower group
of customers with similar interests.
A) position
B) niche
C) slot
D) spot
E) gap
Answer:
The primary opportunity existing for startups in emerging industries is to ________.
A) consolidate the industry and establish industry leadership as a result of doing so
B) win customers by placing an emphasis on service and process innovation
C) pursue a niche strategy, which focuses on a narrow segment of the industry that
might be encouraged to grow through product or process innovation
D) capture a first-mover advantage
E) pursue a cost reduction strategy, which is accomplished through achieving lower
costs than industry incumbents through process innovation
Answer:
Match the financial objective with its correct definition.
A) stability the overall health of the financial structure of the firm, particularly as it
relates to its debt-to-equity ratio
B) profitability how productively a firm utilizes its assets
C) liquidity a company’s ability to make a profit
D) efficiency a company’s ability to meet its short-term obligations
E) profitability the overall health of the financial structure of the firm, particularly as it
relates to its debt-to-equity ratio
Answer:
The fact that companies often falter because the people who start the firms can’t adjust
quickly enough to their new roles and because the firm lacks a “track record” with
outside buyers and sellers, is referred to as the ________.
A) liability of preparedness
B) liability of newness
C) burden of novelty
D) burden of freshness
E) millstone of innovation
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:
________ is a form of business ownership in which a firm that already has a successful
product or service licenses its trademark and method of doing business to other business
in exchange for an initial franchise fee and an ongoing royalty.
A) Licensing
B) Joint Venturing
C) Contracting
D) Franchising
E) Sub-Contracting
Answer:
Brandon Jones has crafted a business model for his firm that is based on an existing
plan or template for how firms in his industry create, deliver and capture value for their
shareholders. Brandon has crafted a ________ business model.
A) standard
B) disruptive
C) customary
D) normal
E) temporary
Answer:
Each quarter, Craig Anderson, who owns a chain of auto repair shops, does a detailed
analysis of his firm’s competitors. This analysis is called ________ analysis.
A) competitor
B) challenger
C) strategic
D) participant
E) industry
Answer:
In the terminology of the Barringer/Ireland Business Model Template, a firm’s
________ structure describes the most important costs incurred to support its business
model.
A) expense
B) cost
C) budget
D) overhead
E) outflow
Answer:
Most founders’ agreements include a ________ clause, which legally obligates the
departing founder to sell to the remaining founders his or her interest in the firm if the
remaining founders are interested.
A) redemption
B) buyback
C) statutory purchase
D) voluntary recoup
E) shareholder surrender
Answer:
Which of the following firms has a peer-to-peer business model?
A) Dell
B) Dropbox
C) Airbnb
D) Salesforce.com
E) Google
Answer:
According to the textbook, the best approach to utilizing a library for
entrepreneurship-related research is to ________.
A) discuss your general area of interest with a reference librarian
B) focus your efforts on studying newspapers and periodicals
C) focus your efforts on browsing through industry-related materials
D) discuss your general area of interest with other library patrons
E) focus your efforts on academic journals
Answer:
The Partnering for Success feature in Chapter 3 focuses on the task of finding the right
business partner. According to the feature, which of the following is an incorrect
rule-of-thumb in finding a business partner?
A) Know the skills and experiences you need in a partner.
B) Make sure you and your partner’s work habits are compatible.
C) Make sure you and your partner have common goals and aspirations.
D) Pick a partner that is similar rather than different from you in terms of skills,
abilities, and functional background.
E) Hire a lawyer to negotiate the partnership agreement.
Answer: