The Business Model Canvas is a dynamic framework to guide entrepreneurs through
the process of developing, testing, and refining their business models.
Job enlargement is based on the premise that the best way to design a job is to break it
down into its simplest form and to standardize each task.
Social entrepreneurs use their skills to create profitable businesses and also achieve
economic, social and environmental goals for the common good.
Clever business owners choose their location with an eye on the surrounding mix of
businesses.
Two factors that make a deal attractive to venture capitalists include high returns and a
convenient and profitable exit strategy.
The shorter a company’s cash flow cycle, the more likely it is to encounter a cash crisis.
Innovation is the ability to develop new ideas and to discover new ways of looking at
problems and opportunities.
The cash budget is nothing more than a forecast of the firm’s cash inflows and outflows
for a specific time period, and it will never be completely accurate.
The first step in assessing industry attractiveness is to paint a picture of the industry in
broad strokes, assessing it from a “macro” level.
Although e-tailers avoid the major problems that managing inventory presents, they
lose control over delivery times and service quality.
When it comes to purchasing products, equipment, and incurring other expenses, the
franchisor ________.
A) cannot require the franchisees to buy from the franchise company
B) can set prices franchisees pay for the products but cannot set the retail price the
franchisees charge
C) is permitted to set the retail price for the franchisee
D) cannot require franchisees to buy from an “approved” supplier
Leasing allows business owners to forecast cash flows more ________ because lease
payments are ________ amounts paid over a particular time period.
A) often; fixed
B) accurately; variable
C) accurately; fixed
D) often; variable
________ typically lead(s) sales; ________ typically lag(s) sales.
A) Production; receivables
B) Collections; purchases
C) Receipts; production
D) Purchases; collections
Effective interviewers spend about ________ percent of the interview talking and
________ percent listening.
A) 25; 75
B) 50; 50
C) 75; 25
D) 90; 10
Which hemisphere of the brain is responsible for the body’s emotional, intuitive, and
spatial functions?
A) Right hemisphere
B) Left hemisphere
C) Vertical hemisphere
D) Logical hemisphere
Once a credit account becomes past due, a small business owner should ________.
A) wait patiently; the customer will most likely pay the bill eventually
B) turn the account over to a collection agency the day it becomes past due
C) send a ‘second notice” letter requesting immediate payment
D) call the “deadbeat” in the middle of the night and make harassing and threatening
remarks until he pays
A franchise myth is that ________.
A) once the franchise is open, the franchisee has autonomy to run the business in what
ever way he or she sees fit
B) the owner needs to be hands on
C) the franchise will only expect to be paid when the franchisee is profitable
D) franchises fail at a rate higher than independently owned businesses
Approximately ________ percent of all venture capital invested comes from
corporations.
A) 2
B) 8
C) 17
D) 24
The second step to creating a sound export strategy involves ________.
A) analyzing the product or service
B) recognizing the potential to export
C) analyze your commitment
D) research market and pick your target
Which of the following is a potential disadvantage of purchasing an existing business?
A) The employees inherited with the business may not be suitable.
B) The previous owner may have created ill will among the company’s customers.
C) Equipment and facilities may be obsolete or inefficient.
D) All of the above
Which of the following is not a characteristic of a successful working relationship
between copreneurs?
A) A clear definition of one partner as “boss” and the other as ‘subordinate”.
B) Compatible business and life goals.
C) Complementary business skills.
D) A clear division of roles and authority based on each partner’s skills and abilities.