Which of the following will cause the maximum damage to an organization’s
legitimacy?
A. Promoting knowledge about the organization to customers
B. Having people in the organization that customers know and respect
C. Partnering with reputed businesses
D. Directing customer calls to answering machine or voice mail
The difference between assets and liabilities of a business is called its:
A. net income.
B. owners’ equity.
C. cost of capital.
D. current ratio.
Given the fact that there are several substitutes available for Tinkle Toys’ products,
these Tinkle Toys’ products are most likely to fall under the category of _____.
A. inelastic products
B. pure services
C. hybrid goods
D. elastic products
Which of the following questions in a typical I2P analysis provides a simple and
nontechnical description of the product?
A. How is your product better than your competitor’s?
B. What is your product or idea?
C. Why will customers buy your product?
D. What is the market and its size for your product?
Which of the following best describes aggrandizing?
A. Ken uses the money he gets from his full-time job as a chef to run his part-time
business of graphic designing.
B. Sarah works a full-time day job as a waitress and then runs a part-time baby-sitting
service at night.
C. Jenson misses his deadlines at his full-time day job because he works late nights as a
part-time music producer.
D. Cathy, who does computer repairs, lies to customers about having an office in a
business park when she actually works part-time from her home.
A combination in which the whole is greater than the sum of its component parts refers
to:
A. revolving credit.
B. synergy.
C. microinventory.
D. spin-off.
Which of the following is most likely to be a business plan concern for silent
partners/angel investors?
A. Growth rate
B. Stability of firm
C. Asset or collateral base
D. Monitoring compliance
Equity refers to:
A. the ownership of a business as a whole.
B. the ownership of a portion of a business.
C. finding a low cost or no cost way to do a business.
D. acquiring permission from the government to do a part-time business.
A firm can best increase its product-based legitimacy by:
A. using voice mail or answering machine to provide customer service.
B. avoiding a physical location to conduct the business.
C. selling the product under its generic name instead of a brand name.
D. placing interviews, articles, or columns in media about the product.
Due to which of the following characteristics a news story is most likely to grab public
interest?
A. Cultural resonance
B. Issue recognition
C. Trendiness
D. Proximity
Sharon handles a home-made gifts business which has gained popularity in her town.
After Sharon moved into a big city, however, her marketing efforts could barely help
her get just enough revenue to meet her costs. This means Sharon’s business is at:
A. economy of scale.
B. monopoly.
C. break-even point.
D. bankruptcy.
The strategy for using the pilot test approach is:
A. to show potential partners that the idea can generate sales.
B. to generate IP protection for the idea.
C. to check the number of visitors to the Web site.
D. to circumvent government regulations.
Tina runs her consultancy business from her home. Working from home allows her to
set her own schedule and take time off at her convenience so that she can be with her
family. The fact that Tina gets more time with her family can be categorized as ______
reward.
A. income
B. flexibility
C. growth
D. credit
Which of the following is NOT a topic addressed in the executive summary?
A. Management
B. Competitive advantages
C. Employee code of conduct
D. Finances
Segmenting a market _____ involves dividing it into different segments in terms of
cities or neighborhoods.
A. geographically
B. economically
C. demographically
D. culturally
Which of the following is essential to the success of all start-ups when one uses the
“lean” entrepreneurial methods?
A. Having experience managing large firms
B. Not encouraging standardizing repetitive characteristics of a business
C. Starting a business with a sole founder
D. Keeping in touch with one’s customers