Each time a new product or service or an improvement to an existing product or service
is introduced, it will have gone through a design and development process.
a. True
b. False
The principle of Affirmative Judgment:
a. Finds the negative aspects of a problem definition
b. Recognizes that the problem exists
c. Avoids criticism for a problem definition until the positive aspects have been stated
d. Rejects the non-starters
e. Avoids making a decision until absolutely necessary
____ refers to situations where a probability of the risk occurring and its potential
impact can be calculated because at least some of the variables involved in the decision
can be controlled.
a. Voluntary bankruptcy
b. Risk
c. Uncertainty
d. Liquidation
e. None of these choices
Tactics include the media, channels, and delivery mechanisms used to reach the
customer and create brand awareness.
a. True
b. False
In general, venture capitalists say that they will take a ____ and a large market
opportunity in a fast-growing area over a great idea any day
a. big risk
b. strong business plan
c. passionate entrepreneur
d. strong leader
e. great team
When entrepreneurs develop job descriptions, they should focus on the duties and
responsibilities of a particular job as well as the ____.
a. legal requirements
b. organizational chart
c. behavioral profile
d. process map
e. job candidate
Which section of the business plan details features and benefits as well as the plan for
prototyping and testing?
a. Industry/market analysis
b. Operations plan
c. Marketing plan
d. Product/service plan
e. None of these choices
In service businesses, the cost of goods sold (COGS) is equivalent to the time expended
to ____ and ____ the service.
a. sell / deliver
b. produce / deliver
c. produce / market
d. test / produce
e. None of these choices
A/an ____ statement is, essentially, a cash budget or sources and uses statement.
a. direct cash flow
b. in-process flow
c. return on investment
d. cost of goods sold
e. pro forma
Using a/an ____ agreement is one way to make sure that only stock that has been
earned will be distributed.
a. employee stock ownership
b. shareholder
c. stock-vesting
d. minority ownership
e. preferred stock
The professional employer organization (PEO) is used for ____.
a. employee leasing
b. enforcing laws by the EEOC
c. interviews
d. drug screening
e. risk management
The American Marketing Association defines ____ as a “name, term, design, symbol, or
any other feature that identifies one seller’s good or service as distinct” from other
sellers.
a. advertising
Promotion
c. brand
d. brand image
e. brand
The ____ produces about three times as many ideas per unit of time and these ideas are
generally of much higher quality.
a. hybrid process
b. group approach
c. collaborative process
d. team process
e. brainwriting approach
During the Decade of entrepreneurship, the work of Paul Romer identified this as a
critical element of a growth model that responds to market incentives. .
a. Capital
b. b. Labor
c. Technological change
d. Incentives
e. None of these choices
Stock issued to the first shareholders of the corporation or assigned to key management
as part of a compensation package is ____.
a. preferred stock
founder’s stock
c. stock-vesting
d. dilution
e. profit sharing
Identifying and profiling the first customer, estimating potential demand from that
customer, and identifying subsequent customer segments and needs to grow the
company are goals of market research for ____.
a. a new company
b. a mature company
c. all companies, large and small
d. companies in decline
e. All of these choices
The ____ plan reflects recognition that sometimes the “best laid plans” do not work the
way you intended.
a. business
b. production
c. financial
d. contingency
e. media
____ patents are the most common type of patent.
a. Utility
b. Trademark
c. Design
d. Business method
e. Technology