EF Midterm

One of the advantages of public offerings is

liquidity

An indicator of the planning pitfall of "Failure to anticipate roadblocks" is

making no recognition of future problems

Venture capitalists are experienced professionals who provide a full range of service for new ventures including

management consulting

Which of the following would be most commonly used for intermediate-term financing?

finance companies

Which of the following statements is true?

Innovation is the specific function of entrepreneurship

Which of the following statements is true?

The right brain helps people understand analogies and imagine things.

Financial information is important to entrepreneurs because:

it pulls together all the information presented in other segments of the business

The _______ approach indicates the importance of people's awareness of their daily lives for developing new business ideas.

new-new

Which of the following statements about entrepreneurial marketing is NOT true?

In entrepreneurial marketing, actions are constrained by resources currently controlled.

The concept of the net present value method works on the premise that

a dollar today is worth more than a dollar in the future

Which of the following questions concerning innovation is not relevant?

"When should the product go to the market?"

Gazelles have been responsible for which of the following:

55 percent of innovations

A fixed cost

does not change in response to changes in activity for a given period of time

Financing includes all of the following except

equitable paycheck

Which of the following can help entrepreneurs carry out the evaluation and implementation stage?

increasing energy level

Which of the following are keys to understanding opportunity and its development for entrepreneurs?

innovation and creativity

Which of the following would be most commonly used for long-term financing?

insurance companies

An indicator of the planning pitfall of "no realistic goals" is

lack of timetable to accomplish things

The key to marketing analysis is

market research

Timing is especially critical in which area?

marketing

Many companies continue to use the payback method. It is

more favorable in its short-term effects on earnings

Many new ventures find that debt financing is

necessary

An indicator of the planning pitfall of "no commitment or dedication" is

no interest in researching the idea

When buying a business, what is NOT a factor to consider when investigating the competition?

number of employees

Which of the following terms is synonymous with social lending?

peer-to-peer (P2P) lending

A common pitfall in selecting a new venture is

poor financial understanding

The 4Ps of marketing include all the following except

principle

Two important components of creative problem solving are

process and people

Net present value method is a capital budgeting technique that helps to minimize some of the shortcomings of the payback method by

recognizing future cash flows beyond the payback period

A person can develop their own creativity by

seeking new and different relationships in people, objects, and places around them.

Which of the following is NOT critical to a product's success?

size

What is not an advantage to buying a franchise business?

structured fees

Which of the following can help speed up the idea process?

taking breaks while working

IN the simple linear regression analysis equation, y = a + bx, y represents

the dependent variable

To an entrepreneur, one of the benefits of a business plan is

the identification of critical risks

Entrepreneurs will always be

the major source of job creation and innovation in any economy

Which of the following is NOT an entrepreneurial motivation for starting a venture?

the organization

Market segmentation is

the process of identifying a specific set of characteristics that differentiate one group of consumers from the rest

IN the simple linear regression analysis equation, y = a + bx, b represents

the slope of the line

The word entrepreneur is derived from the French entrepredre, which is translated as

to undertake

Product/market problems involve which of the following?

unclear business definition

Entrepreneurs and gazelles have been credited with making disproportionate contributions to all but which of the following?

unemployment

A new venture should be

unique

Which of the following statements best describes a "gazelle"?

A business with at least 20 percent growth every year

__________ is the economic basis for all entrepreneurial activity.

Free enterprise

Which of the following statements about a business plan is true?

It is the minimum document required by any financial source

The business plan provides the details of the _______ potential of a business.

Market

Which of the following statements is NOT true about financial assumptions?

They do not necessarily correlate with information from other parts of the business.

A variable cost

changes in the same direction and in direct proportion to changes in operating activity

Which framework is NOT considered one of the six "Framework of Frameworks" approach?

collaborative

Which of the following is a type of equity financing?

common stock

The 4Cs of marketing include all the following except

continuity

The textbook recommends that social media marketers consider three aspects of social media when using those tools for marketing purposes. What are they?

creating, enabling, and encouraging

The franchisee's responsibilities does NOT include

designing the product specifics

In the evolutionary process of economic growth, ________ plays the crucial and indispensable role of providing the "social glue" that binds together both high-tech and "main street" activities.

entrepreneurship

Secondary data consists of

existing information

Venture classifications include which of the following types of venture?

high growth ventures

A method that discounts future cash flows at a rate that makes the net present value of the project equal to zero is known as

internal rate of return

Which of the following is a pitfall to avoid in planning, according to the textbook author?

lack of priorities

What is a critical consideration when assessing customer availability?

length of time needed to determine who the customers are, as well as their buying habits

The incubation process involves which of the following?

letting the subconscious work

When a customer sees a product that is superior to its competitors, _____ becomes less important.

price

The comprehensive business plan should be the result of

reflections on the direction of the venture

Several aspects distinguish social media marketing from traditional marketing. The textbook discusses all of the following except

relevancy

A franchise is any arrangement where the owner has licensed others to sell goods or services by which of the following?

trademark

Which of the following characteristics is most important to an entrepreneur?

management skills

A disadvantage of debt financing is

regular interest payments

All of the following techniques are used in gathering primary data except

analysis of financial records

Entrepreneurs sense potential in business problems by asking

What if and why not?

A market is

a group of consumers who have purchasing power and unsatisfied needs

An agreement not to compete is also known as

a legal restraint of trade

Sometimes a business plan is referred to as

a loan proposal

An additional consideration to keep in mind when negotiating to purchase an existing business includes requesting that the seller retain _______ in the firm.

a minority interest

Starting a business by adapting something already on the market is called _______.

a new-old approach

The completed business plan provides the entrepreneurs with

a tool for communicating with financial sources

Many entrepreneurs of new ventures lack

a unique angle for the venture

The study of entrepreneurship is

interdisciplinary

Business-related reasons for selling do NOT include which of the following?

Changes in the product supply chain

Which of the following is NOT currently cited as a trend creating business opportunities?

breakfast cereals

When starting a business, which of the following sources of financing are least likely to be used?

insurance companies