_____ means that a firm is worthy of consideration or doing business with because of
the impressions or opinions of customers, suppliers, investors, or competitors.
A. Bureaucracy
B. Illiquidity
C. Legitimacy
D. Insolvency
_____ are laws and regulations that specify the requirements of taxation.
A. Tax charts
B. Tax slabs
C. Tax codes
D. Tax exempts
Financing a business online through the collective involvement of others who provide
donations, loans, or investments is referred to as _____.
A. crowdfunding
B. bootstrapping
C. microfinancing
D. crowdsourcing
Which of the following describes angel investors?
A. They are wealthy individuals who invest in companies in relatively early stages of
development.
B. They are individuals who act as brokers to help connect owners to organizations that
provide funding.
C. They are state-run organizations that buy stakes in companies in the early stages of
development.
D. They are government organizations that help small-scale companies grow.
Document setting forth information about a limited liability company that is filed with
the state to establish an LLC is referred to as _____.
A. articles of organization
B. subcontract
C. charter
D. operating agreement
Mentions of a company or products in the media for which a firm did not pay is referred
to as _____.
A. buzz marketing
B. sales promotion
C. free ink
D. viral marketing
_____ refers to laws and governmental rules that limit the freedom of business owners
to manage their businesses as they please.
A. Employee branding
B. Benchmarking
C. Arraignment
D. Regulation of the workplace
Returns intended to equal and replace the salary or wages the entrepreneur could draw
working for someone else are referred to as _____.
A. substitution profits
B. supplemental profits
C. success profits
D. marginal profits
Which of the following is most likely to be an advantage of a start-up?
A. It begins with a clean slate.
B. It has initial name recognition.
C. It is easy to establish and it immediately provides positive cash flow.
D. It has easy access to revolving credit.
Which of the following is true of insurance?
A. All risks are insurable.
B. An insurance company only charges a fee for large businesses with over 100
employees.
C. Insurance companies make profits by requiring a relatively large fee compared to the
amount of loss that is possible.
D. The insurance company makes a profit by collecting premiums from many
businesses for the same set of risks.
Ownership of corporations is established by _____.
A. stock certificates
B. share agreements
C. member share certificates
D. partnership share agreements
Which of the following terms refers to the set of risks faced by firms early in their life
cycles that come from a lack of knowledge by the owners about the business they are in
and by customers about the new business?
A. Slack resource
B. Walkaway
C. Liability of newness
D. CSF
Which of the following is true of government agencies that issue grants?
A. They publish RFPs that specify the conditions of a grant.
B. They require each business to create a proposal using formats that best fits the
business.
C. They only provide funding after a long evaluation of applications which generally
takes over a year to process.
D. They are unstructured and prefer informal approaches from companies.
Which of the following is a traditional problem facing new ideas?
A. The product or service appeals to a market larger than the entrepreneur expected.
B. The idea cannot be economically made into a product or service.
C. There are too many people involved in making the idea into a business.
D. The local/state federal regulations are too strict to follow.
A person or entity being sued is referred to as _____.
A. plaintiff
B. defendant
C. bailee
D. petitioner
Which of the following is most likely to be achieved as the result of starting a business
with established customers?
A. Prices set at the highest level the market will bear
B. Investment in multiple investments of differing risk profiles
C. Access to revolving credit
D. Immediate cash flows
When a product or service is new to the industry or is itself creating a new industry, it is
referred to as a(n) _____ business.
A. entry-level
B. preselling
C. pioneering
D. test
The extent to which a firm meets or exceeds the standard business practices for its
industry is known as _____.
A. bootstrapping
B. professionalization
C. effectuation
D. Perceived Organizational Support (POS)
_____ allows you to search a resume database or post a job description on the Web.
A. Crowdfunding
B. Employee referral
C. Internet recruiting
D. Benchmarking
Craftsmanship and customization are examples of:
A. a fragmented industry strategy.
B. a generic strategy.
C. a supra-strategy.
D. a risk strategy.