Archives: Quiz

Choosing a good attorney is a time-consuming but vital task that should be accomplished immediately after startup. a. True b. False ____ from lawyers, accountants, consultants, and investment bankers are essentially a promise not to charge the full fee if […]

Outsourced staff typically have a high turnover rate because ____________, so it is important for the entrepreneur to create a culture that encourages the staff to stay with the business long term. a. the average age is 25 b. of […]

To guard against contingencies, it is wise for a startup to use one supplier for about ____ percent of its needs and one or more additional suppliers for the rest. a. 50 b. 50 to 60 c. 60 to 70 […]

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 […]

The components of a business model include all of these except: a. A value proposition b. Business concept c. Strategic partners d. None of these e. B and C only are not components of a business model ____ is the […]

Good SCM enables your company to forecast demand, match supply with demand, and fulfill the demand through optimal distribution channels. a. True b. False Which of the following is not a component of a business model? a. Pricing model b. […]

Once a company has become a public company, returning to private status is ____. a. a way of raising more capital b. easy to accomplish c. not allowed by the SEC d. a nearly insurmountable task e. not allowed by […]

A new industry goes through volatile and rapid changes as companies and their respective technologies jockey for position and the right to determine industry standards. This is what stage of the industry life cycle? a. Birth b. Shakeout c. Differentiation […]

Google, Wikipedia, journals, and trade magazines are examples of ____. a. industry analysis b. market research c. primary sources d. secondary sources e. None of these choices During startup, the entrepreneur’s main concerns are to ensure sufficient startup capital, _____, […]

The Macro Environment includes all of the following factors except: a. The availability of credit b. Market factors and trends c. Industry factors and trends d. Global economic factors e. All of these are factors in the Macro Environment Product […]

Which type of business is most likely to be launched on the strength of a feasibility analysis alone? a. Baked goods business b. Technology business c. Internet-related business d. Clothing business e. Investment business The value derived by assuming the […]

The term ____ refers to a customer’s perceived preference for, and evaluation of, product attributes, attribute performances, and consequences arising from use that facilitates (or blocks) achieving the customer’s goals and purposes in use situations. a. customer value customer relationships […]

The principle of ____ means looking for the strengths or positive aspects of a problem definition first. a. Positive Reinforcement b. Affirmative Judgment c. Best Problem Definition d. Attribute Identification e. Evaluation Matrix Common types of roadblocks to creativity are […]

____ represent(s) how the startup uses its cash to cover its overhead before it generates a positive cash flow from operations. a. Monthly burn rate b. Contribution margin c. Financial metrics d. Bootstrapping e. Process map Closing the door, shutting […]

Regarding an MVP, it is correct to say: a. An MVP is always the preferred way to gauge customer interest in a product. b. An MVP is an excellent way to gauge customer interest for all types of products. c. […]

A business concept is a concise description of an opportunity that contains seven essential elements. a. True b. False The more information an entrepreneur acquires through ____, the higher the chance that his or her predictions will be close to […]

____ product development provides a young firm with a network of expertise that it couldn’t afford to hire in-house. a. Outsourcing Patenting c. Protecting d. Networking e. Testing ____ comprise over fifty percent of all small businesses in the United […]

____ is/are used to demonstrate that a company stands behind what it produces and the work that it does. a. ISO 9000 b. Warranties c. Six Sigma d. OEM e. None of these choices Which of the following would not […]

Investors tend to look for technology-driven companies rather than market-driven companies. a. True b. False Most successful startups involve ____. a. only the founders b. people with skills and capabilities beyond those that the business requires c. solo entrepreneurs rather […]

Promotion tends to be more price-focused or incentive-focused and therefore is usually considered a push strategy. a. True b. False ____ in ethical decision making says that “Everyone needs to look out for himself.” a. Dogmatism b. Egoism c. Utility […]

Briefly discuss the six sources of primary industry data. A ____ precisely identifies the environment in which the company operates and communicates the company’s fundamental philosophy. a. code of ethics mission statement c. vision d. purpose e. strategy Answer: b […]

An example of new industry formation, Apple’s iPhone, introduced on January 9, 2007, spurred the development of this new industry: a. The smart phone improvement industry b. The mobile app industry c. The pay-as-you-go-cell phone industry d. The development of […]

The ____ gives information about the projected profit or loss status of the business for a specified period of time. a. balance sheet b. statement of cash flows c. current ratio d. profit margin e. income statement The Yellow Pages […]

The owner is the only person responsible for the activities of the business in a ____. a. limited partnership b. nonprofit business c. dormant partnership d. sole proprietorship e. limited liability company Brand equity, advertising expense, and the rate of […]

Which of the following is not a professional advisor to an entrepreneur? a. Attorney b. Board of directors c. Accountant d. Banker e. Insurance agent According to Rosabeth Moss Kanter, accountability, collaboration, and initiative are all elements of ____. a. […]

____ is concerned with the process of commercializing or extracting value from ideas. a. Problem identification b. Creativity c. Invention d. Innovation e. Marketing ____ is found if a trademark is likely to cause confusion with a trademark already existing […]

A manufacturing firm is likely to use process-focused manufacturing if: a. They are highly decentralized b. They are distributed so that they can respond better to market demands c. Manufacturing is capital-intensive d. They act as separate company or profit […]

Business models can change by: a. Incrementally expanding the existing model geographically b. Revitalizing an established model c. Taking an existing model into a new area d. All of the above e. A and C only Poor execution in product […]

Copyright law protects: a. The concept b. The idea c. The thought process d. The form in which the idea is displayed e. None of these choices One vital question, often answered incorrectly is ‘Who is the customer?’ . a. […]

____ outsource everything except their core-management function. a. Virtual organizations b. Most startups c. Regional organizations d. Manufacturing organizations e. None of these choices There are seven stages in the industry life cycle. a. True b. False Answer: False In […]

Which of the following is one of the three broad questions that a feasibility analysis answers? a. How will the operating systems be structured? b. Do the capital requirements, based on estimates of sales and expenses, make sense? c. Does […]

Once the entrepreneur determines where the new venture lies in the value chain, he or she must create a ____. a. process map b. feasibility analysis c. business plan d. timeline e. None of these choices A corporate form that […]

____ benefits that customers appreciate include such things as access, saving money, saving time, convenience, and health. a. Tangible b. Material c. Intangible d. Niche e. Advertising The question, “Would I be proud if my actions were announced in my […]

Entrepreneurship is a form of creative destruction. a. True b. False Recent research has identified four categories of ethical decision making that entrepreneurs face on a daily basis, including individual values, organization values, external accountability, and ____. a. core values […]

Which of the following is not a technique that can help entrepreneurs arrive at a realistic forecast of demand for their product or service? a. Talk to customers Interview prospective end-users and intermediaries c. Prepare revenue forecasts d. Apply the […]

The goal in ____ is to provide the exact service the customer wants at minimal cost. a. logistics b. supply chain management c. outsourcing d. human resources e. purchasing A ____ consists of a novel and confidential formula, device, idea, […]

The vision that guides a company in the right direction is expressed through its ____. a. core values b. purpose c. mission d. goals e. All of these choices The illumination step in Wallas’s creative process brings the idea to […]

____ was not alone in asserting that the United States was rapidly and by necessity becoming an entrepreneurial economy. a. Steve Jobs b. b. Peter Drucker c. Mike Boyer d. Marc Weinstein e. Sam Goody ____ can be defined as […]

Essential to creating an opportunity in a complex world, entrepreneurs must embrace: a. Networking b. Research c. Uncertainty d. Decision-making e. strategic alliances / acquisition When choosing a banker, the entrepreneur planning a new venture should seek out an officer […]

Entrepreneurs typically have a vision of where they want their businesses to go, and generally that vision is on a regional, national, or (more often) ____ level. a. state b. b. global c. country d. local e. None of these […]

Which of these pricing strategies will help a new firm maximize cash flow? a. Lower price to raise volume b. Raise price and reduce direct costs c. Set a higher price to raise perceived value d. Sell online e. None […]

In terms of its treatment of income, expenses, and taxes, a partnership is essentially a sole proprietorship consisting of more than one person. a. True b. False All of the following are part of an entrepreneur’s extended network except ____. […]

The three key factors for determining value in real estate are ____. a. location, location, and location b. economic base, financial incentives, and demographics c. trade area, competition, and demographics d. accessibility, cost of labor, and technology e. location, competition, […]

Sole proprietorships, partnerships, S-corporations, and limited liability companies all permit pass-through earnings and losses, but S-corporations and LLCs offer more protection from liability. a. True b. False A/an ____ is an advocate, but a/an ____ is bound by rules and […]

Alpaca Corporation had revenues of $200,000 in its first year of operations. The company has not collected on $20,000 of its sales and still owes $25,000 on $70,000 of merchandise it purchased. The company had no inventory on hand at […]

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the number for the correct term. On August 1, 2016, Reliable Software began developing a software program […]

The following note disclosure is taken from the 2016 annual report to shareholders of Winchester International Corporation. NOTE 5: ALLOWANCE FOR LOAN LOSSES The allowance for loan loss is maintained at a level to absorb probable losses inherent in the […]

Actuary and trustee reports indicate the following changes in the PBO and plan assets of Reeves Uniforms during 2016: Required: 1> Determine Reeves’ pension expense for 2016 and prepare the appropriate journal entries to record the expense as well as […]

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the number for the most correct term. Briefly explain why the income statement is referred to as […]

Briefly explain the differences between U.S. GAAP and International Financial Reporting Standards (IFRS) in accounting for government grants for the purchase of assets. In order to encourage employee ownership of the company’s $1 par common shares, T Corp. permits any […]