What is the significance of a harvest strategy segment in a business plan?
a. It is important for the entrepreneur to plan for a liquidity event as an exit strategy.
b. It is important for the entrepreneur to know how to buy up troubled companies.
c. It is important for the entrepreneur to indicate how the business will increase in
value.
d. It is important for the entrepreneur to designate how the business will recruit new
talent to the enterprise.
Groups that function outside traditional lines of authority permitting rapid turnaround of
new ideas as well as instilling a high level of group loyalty are called:
a. skunk works.
b. multiple approaches.
c. champions.
d. strategic innovators.
Which of the following questions concerning innovation is not relevant?
a. ‘What is the problem?’
b. ‘Whom does it affect?’
c. ‘What costs are involved?’
d. ‘When should the product goes to market?’
Which of these survey methods has the lowest nonresponse rate?
a. phone interviews
b. personal interviews, door to door
c. Internet surveys
d. mail surveys
Of the following, which is more likely than the others to be deemed a potential danger
of social lending?
a. high funding success rate
b. business plan disclosure
c. potential tax advantage
d. regulatory certainty
Which of the following are forms of pro forma statements?
a. income statements
b. balance sheets
c. costs of goods sold
d. a and b
What is the purpose of loss-leader pricing?
a. to gain market share
b. to maximize profit
c. to allow for future price increases
d. to switch customers to new products
__________ is the use of portable wireless devices to connect to the Internet.
a. Entrepreneurial marketing
b. Networking
c. Mobile computing
d. Social media marketing
A drawback to the price/earnings ratio method is that
a. the stock of a private company is publicly traded.
b. the stated net income of a private company may not truly reflect its actual earning
power.
c. it is relatively easy to find a truly comparable publicly held company, even in the
same industry.
d. it distorts profits earned.
When accounts receivable are bought from a company for capital funding it is called
a. trade credit.
b. financing.
c. leasing.
d. factoring.
Which of the following are specific factors identified by researchers, that organizations
can concentrate on in structuring an entrepreneurial climate.
a. radical innovation, incremental innovation, and vision
b. skunk works, multiple approaches, and vision
c. top management support, time, resources, rewards, and organizational boundaries
d. rewards, resources, innovation, and vision
Which of the following statements about communication between the seller and buyer
of a business is recommended?
a. End communication at least ten days prior to signing a buy agreement.
b. Communicate with sellers only through proxies.
c. Continue communication through the transition to new ownership.
d. End communication at the time the buy agreement is signed.
Which of the following is not a trademark?
a. a sales price
b. a logo
c. a symbol
d. a name
Which of the following terms refers to the systematic evolution of a product or service
into newer or larger markets?
a. radical innovation
b. incremental innovation
c. collective entrepreneurship
d. strategic management
SBIC stands for the
a. small business in capital.
b. securities, bonds, investment, capital.
c. small-business investment companies
d. sources of business investment companies
Corporate entrepreneurial activity takes place _____ the firm.
a. only with outside suppliers to
b. with anyone outside
c. both inside and outside
d. inside
In the incubation process, ways of getting away from a problem include
a. working harder
b. working on something else.
c. going to parties.
d. visiting the library.
Because of the _____ doctrine, it is sometimes difficult to establish infringement.
a. fair use
b. acquisition
c. freedom of information
d. right to publish
The final decision to purchase a franchise should be up to
a. your lawyer.
b. your financial backer.
c. you.
d. your accountant.
History and nature of the company, capital structure, and description of any material
contracts are just a few examples of the specific detailed information that must be
presented about a firm that is going public.
Non-role acts are those acts against a firm in which the person fails to perform his or
her managerial role.
There are two types of succession pressures: family and nonfamily.
Corporate entrepreneurs are people who are action oriented and self-determined.
The Federal Trade Commission does not provide information on franchise success.
Entrepreneurs are born not made.
It is not uncommon for a buyer to be faced with a franchise fee of $250,000 to
$1,000,000.
There is a certain psychic risk involved with entrepreneurship.