Coming up with a unique good or service is a _____ approach, while adapting
something that is currently on the market or extending the offering to an area where it is
not presently available is a(n) _____ approach.
a. new-new, old-old
b. new-old, old-old
c. new-new, new-old
d. new-old, old-new
The textbook identifies four strategies that can be used in preparing a management
succession policy. Which of the following is not one of these strategies?
a. The owner’s family controls the management continuity strategy entirely.
b. The owner controls the management continuity strategy entirely.
c. The owner works with a professional advisor on the management continuity strategy.
d. The owner works with family on the management continuity strategy.
Sometimes a business plan is referred to as
a. a loan proposal.
b. an encyclopedia.
c. a novelization.
d. a receivables exchange.
Starting a business by adapting something already on the market is called __________.
a. a franchising approach
b. a buying approach
c. a new-new approach
d. a new-old approach
Which of the following is considered a myth of innovation?
a. Creativity relies on blue sky ideas.
b. Small projects develop into successful innovations.
c. Innovations are unpredictable.
d. Creativity can be learned.
A new venture should be
a. cheap.
b. unique.
c. easy to copy.
d. inferior to its competitors.
The displacement school of thought focuses on the negative side of group phenomena.
Which of the following are causes of industry and market changes?
a. process needs
b. advancements in technology
c. unexpected occurrences
d. natural disasters
When considering sales and distribution, the entrepreneur should be concerned about
a. whether any sales are made on consignment.
b. how many sales are internal.
c. how sales vary with social demographics.
d. how many distributors are necessary.
The phase of the creative process when the idea or solution the individual is seeking is
discovered is the
a. background or knowledge accumulation.
b. incubation process.
c. idea experience.
d. evaluation and implementation.
It is recommended that the final copy of the business plan be
a. paper clipped.
b. put in a plastic folder.
c. professionally typeset and bound.
d. none of the above.
On what occasion is a business valuation not usually essential?
a. when giving a gift of stock
b. when going public
c. when selling a business division
d. when hiring a new director of operations
The franchisor’s responsibilities include providing
a. company name.
b. symbols and logos.
c. management and training.
d. all of the above
The first step in constructing an operating budget is
a. preparation of the sales forecast.
b. a cost preparation.
c. a cash flow estimate.
d. estimating fixed costs.
Which of the following is an intangible asset?
a. goodwill
b. inventory
c. plant
d. machinery
The 4Ps of marketing include all the following except:
a. principle
b. product
c. price
d. promotion
The Oakland Scavenger case is profound to owners of family businesses in that
a. conceivably, the owner can be sued for not giving equal treatment to a son as to a
daughter.
b. conceivably, the owner can be sued by an employee of a different ethnic origin based
upon not being accorded the same treatment as a son or daughter.
c. conceivably, the owner can be sued for not declaring a family member his or her
successor.
d. the owner can be fined for not declaring his or her first son the heir to the business.
Which of the following are needed in preparing a pro forma balance sheet?
a. the last balance sheet prepared before the budget period began
b. assets
c. liabilities
d. owners equity
A checklist approach allows the entrepreneur to identify major strengths and
weaknesses in factors of a new venture.
a. the financial
b. the marketing
c. the organizational
d. all of the above
Define break-even analysis and identify some useful methods for finding the
break-even point.
Gazelles produce half the innovations per employee that larger firms typically do.
The terms upside gain and downside loss refer to the profits the business can make and
the losses it can suffer.
Corporate venturing flourishes when a vertical management system is in place.
One of the most important reasons firms want to adhere to a high moral code is that
doing so protects free markets and is good business.
How can an entrepreneur establish strategies for ethical responsibility?
What sorts of legal issues can be overlooked when assessing an entrepreneurial
opportunity?
New ventures rarely exhibit a typical life cycle.
Identify and describe one shortcoming of a sales-driven marketing philosophy?