ENT 3003 final
The ____ plan reflects recognition that sometimes the "best laid plans" do not work the way you intended.
contingency
____ is found by subtracting variable costs from revenues and dividing the difference by revenues to yield a percentage.
contribution margin
____ protect original works of authors, composers, screenwriters, and computer programmers.
copyrights
An entrepreneur's ____ are the foundation for the business and are always reflected in the business and in the way customers are treated.
core values
entrepreneurial-like ventures inside large companies are called _______
corporate ventures
The U.S. Supreme Court has defined the ____ as an artificial being, invisible, intangible, and existing only in contemplation of the law.
corporation
In manufacturing businesses, forecasting expenditures is a bit more complex because ____ must be derived first.
cost of goods sold
In ____, entrepreneurs create opportunities via their actions, reactions, and experiments around new products, services, and business models.
creation theory
____ change is found in industries where resources turn over frequently and must continually be replaced.
creative
No time for creativity, lack of confidence, and absence of creative skills are all examples of ____ roadblocks.
creativity
Because they tend to be fairly expensive, consultants are best used for ____.
critical one time advice or problem solving
The higher the ____, the more liquid the company is and the more easily these assets can be converted to cash to pay off short-term obligations.
current ratio
A clear and precise definition of the____ increases the chances that the business concept will meet the needs of the market.
customer
In general, the ____ is the one who pays for the product.
customer
In figuring ____, entrepreneurs must convert time to dollars and consider an opportunity cost.
customer acquisition cost
the entrepreneurial mindset cannot be found within large corporations or socially responsible nonprofit organizations
false
the illumination step in Wallas's creative process brings the idea to an outcome
false
the term entrepreneur has been in popular use for more than 100 years
false
the value proposition is the benefit that the company derives from the product or service it will produce; in other words, it is the reason for the company to be in business
false
the market research process consists of seven steps
false there are 6 steps
there are seven stages in the industry life cycle
false there are typically five
Determining what resources are needed, when they are needed, and how to acquire them is a critical piece of the ____.
feasibility analysis
The more information an entrepreneur acquires through ____, the higher the chance that his or her predictions will be close to the mark, risk will be reduced and uncertainty managed.
feasibility analysis
Which of the following would not be considered a startup resource?
feasibility analysis
A good way to test a new concept in the marketplace is through a ____.
feasibility study
To qualify for ____, the work must be in a fixed and tangible form; that is, one must be able to see or hear it.
federal copyright protection
The ____ is an unserved niche that enables the entrepreneur to enter a market with no direct competition for a time.
first customer
A ____ corporation is chartered in a state other than in the one in which it will do business.
foreign
So that entrepreneurs do not have to incur the tremendous cost of purchasing equipment for a manufacturing plant, they may ____.
form a strategic alliance
____ is very different from a business model because it considers more than the customer and how the new venture will create and capture value; it considers the competition.
strategy
Professionals such as lawyers, doctors, and accountants frequently employ the legal structure of a ____.
partnership
When two or more people share the assets, liabilities, and profits of the business, the legal structure is a ____.
partnership
Which of the following statements is not true of an S-corporation?
partnerships may be shareholders
A ____ is the primary means of protecting an original invention.
patent
To avoid ____, the team needs to change its angle of vision by looking at the situation in a new way and then testing alternative hypotheses.
pattern recognition bias
The functions assumed by a professional employer organization include ____ functions.
payroll and human resources
A/An ____ consists of individuals whom the entrepreneur respects and trusts. They serve as a sounding board for ideas and act as coaches.
personal mentor board
An entrepreneur who owns a minority or majority stake in several ventures is called a ____ entrepreneur.
portfolio
The bottom line for any new venture is to have ____.
positive cash flow
Indirect selling expenses are not linked to the sale of a specific product and include interest, telephone expenses, and ____.
postal charges
the probability of survival and success tends to go up with businesses that have more _____
potential
As long as the market is growing, it is more important that the entrepreneur is solving a critical pain with a value proposition the customer quickly understands.
true
Often small businesses such as pizza parlors and boutiques are run as ____.
sole proprietorship
The owner is the only person responsible for the activities of the business in a ____.
sole proprietorship
More than 76 percent of all businesses in the United States are ____.
sole proprietorships
For a new product or service to be successful, it should ____.
solve a problem that customers have
____ are more likely to make the mistake of putting structure on the organization before its time.
startup teams
increasingly, we are seeing more firms founded by ____ going international from startup.
startup teams
A new venture's ____ will convey its specific assets and capabilities, and make the venture more comprehensible and compelling.
story
____ facilitates a new venture's identity and legitimacy as well as creates a competitive advantage that is difficult to replicate.
story telling
Because consultants tend to be fairly expensive, they are best used for critical, one-time advising or problem-solving assignments.
true
Bootstrapping refers to minimizing of resources at startup in order to keep fixed costs as low as possible.
true
Building a POC prototype reduces the risk of failure and clarifies customer needs.
true
Common stockholders are entitled to vote at stockholder meetings.
true
Creativity enables entrepreneurs to differentiate their businesses from competitors so that customers will notice them.
true
DBA stands for a certificate of doing business under an assumed name.
true
Determining what resources are needed, when they are needed, and how to acquire them is a critical piece of the feasibility puzzle.
true
Discovery theory and creation theory help explain how entrepreneurial opportunities happen.
true
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.
true
Economic turmoil has a plus side because it produces opportunities for entrepreneurs who are comfortable with environmental factors outside their control.
true
For every industry, the life cycle stages occur at different times and vary in duration.
true
Having a strategic plan in place for the venture enables the entrepreneur to choose a legal form that won't have to be changed or one that can easily be shifted to when the time is right.
true
How a product or service is priced is a function of a company's goals.
true
How to deliver the benefit to the customer is the issue addressed by the distribution channel element of the business concept.
true
If a new venture is a corporation, a board of directors is required.
true
In a sole proprietorship, the owner is the only person responsible for the activities of the business and, therefore, is the only one to enjoy the profits and suffer the losses.
true
In a wholly owned or closely held corporation, there really is little distinction between the functions of a board of directors and those of a board of advisers.
true
In terms of its treatment of income, expenses, and taxes, a partnership is essentially a sole proprietorship consisting of more than one person.
true
Intellectual-property rights are legal rights associated with patents, trademarks, copyrights, and trade secrets.
true
Investors are moving away from written business plans in favor of a brief, well constructed executive summary or pitch.
true
Most entrepreneurs try to avoid hiring employees as long as possible, because employees are the single biggest expense in the business.
true
POC tests involve field work with the customer.
true
Poor execution in product development results in missed opportunities to enter the market at a quiet time without immediate competition.
true
Pricing is not designed to cover total costs but to maximize total contribution⎯that is, unit price minus unit variable costs.
true
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.
true
Somewhere in the micro strategy process, the business is actually launched in a small, controlled way.
true
Submitting a professionally crafted business plan is less important than making it clear what the entrepreneur has accomplished in the way of starting the business.
true
A ____ is simply evidence that a technology, product, business model, or idea is feasible.
proof of concept
The micro strategy process repeats itself over and over again and with each successful outcome, the new business is moved toward a complete ____.
proof of concept
Initial market tests are accomplished using a working ____ of near production quality.
prototype
A ____ is a way for inventors to use the term patent pending.
provisional patent
A/An ____ starts with a concept statement, specifying the pain or need in the market, the potential first customer, the value proposition for that customer, and how the value proposition will be delivered to the customer.
quick screen
Which of these pricing strategies will help a new firm maximize cash flow?
raise price and reduce direct costs
The second step in the market research process is ____.
researching secondary data
Which of the following is not essential to a business concept?
revenue model
The goal of most entrepreneurs is to reduce the level of ____ in any venture.
risk
The ____ is an amount of cash that is often based on the sales and collection cycle of the business.
safety margin
It is best to begin researching the industry by using ____ information about the industry.
secondary
Google, Wikipedia, journals, and trade magazines are examples of ____.
secondary sources
An entrepreneur who starts one business and then moves on to start another is classified as a ____ entrepreneur.
serial
For ____ companies, the actual delivery costs must be based initially on information gathered from other companies in the industry.
service
The ___ period moves the industry from many companies and high product costs, to a more stable industry with only a few efficient firms.
shakeout
Once the new venture has passed the startup stage, additional value is created by ____.
significant customers
____ partners typically provide capital but do not actively participate in the management of the business.
silent
__________ refers to an autonomous group mandate to find and develop new products for the company that may even be external to the company's core competencies
skunk work
If a nonprofit corporation is ever dissolved, its assets must be distributed ____.
another tax-exempt corporation
Which of the following is not one of the four stages of the creative process identified by Wallas?
association
Entrepreneurs need to remember that ____ costs are the biggest costs the business will bear.
employee
By creating a corporation and issuing stock, the entrepreneur is giving up a measure of control to the ____.
board of directors
____ is the mechanism that drives an individual to become a nascent entrepreneur because all other opportunities for income appear to be absent or unsatisfactory.
Push
____ involves getting ideas down on paper and then organizing the ideas and creating themes.
brainwriting
When it comes to the Inc. 500 Fastest Growing Private Companies, the ____ is not a predictor of ultimate success.
amount of startup capital
Entrepreneurial leaders have a distinct advantage over ____ leaders because they see themselves as part of a team.
"heroic" and "charismatic"
The term entrepreneur has been popular in the United States since the ____.
1940s
The _______ has been called the Decade of Entrepreneurship
1980s
the 2008 Global Entrepreneurship Monitor Report found that men and women in the______ age bracket are responsible for 36 percent of all the entrepreneurial activity in the United States and for 22 percent
45-98
The Small Business Administration (SBA) defines a small business as one with fewer than ____ employees.
500
The probability of success for a new product launch is about ____ percent.
60
Under the Copyright Extension Act of 1998, a copyright lasts for the life of the holder plus ____ years.
70
Beginning in the late 1990s what percent of the Fortune 100 companies' market capitalization was based on intellectual property?
75 percent
In 2006, ____ percent of successful products were developed in collaboration with others.
79
What percent of all patents come from large companies?
80 percent
More than ____ percent of Salesforce.com's employees are involved in philanthropy.
85
Which of the following is not an independent contractor you would expect to find on an entrepreneur's extended team?
Board of Advisors
Which of the following is not a professional advisor to an entrepreneur?
Board of Directors
Entrepreneurs can reach a price that can be tested in the market by considering costs, competitor pricing, and ____.
Both "feedback from customers" and "feedback from value chain partners"
Which of the following is a service that consultants do not provide?
bringing the activity in-house
Today, ____ is growing faster than any modern economy.
China
____ on a regular basis trains the mind to shift quickly into the creative mode.
Contemplation
Which of the following is one of the three broad questions that a feasibility analysis answers?
Do the capital requirements, based on estimates of sales and expenses, make sense?
The second most commonly cited source of new venture ideas is ____.
business associates
What is the phrase that is associated with the costs to produce a product when those costs have declined relative to the price of industry's goods and services?
Economies of Scale
The process of new venture formation is characterized by ____ stage(s) and ____ transition(s) or decision points
Four/ Three
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
Global
technological change has facilitated _______ and a new form of creative destruction by moving _________ out of the U.S. countries to countries where labor costs are substantially less
Globalization; lower skilled jobs
____ is one of the most successful new product idea companies in the world.
IDEO
More than perhaps anything else, the 1990s were characterized as the ____.
Information age
The ____ microprocessor affected the technological revolution of the 1970s.
Intel
Brand equity, advertising expense, and the rate of industry growth are part of which of Porter's forces?
Intensity of competitive rivalry
The _____ school of thought proposes an integrated input/output model to describe the entrepreneurial process
Morris, Lewis, and Sexton
____ is the exchange of information and resources among individuals, groups, or organizations whose common goals are to mutually benefit and create value for the members.
Networking
A/An ____ analysis includes the political, sociocultural, economic, and technological environments in which the new venture will operate.
PEST
Analyzing the government, demographics, cost of capital, and rate of change are all part of the _____.
PEST analysis
____ was not alone in asserting that the United States was rapidly and by necessity becoming an entrepreneurial economy.
Peter Drucker
The model most commonly used to help an entrepreneur analyze an industry is ____.
Porter's Five Forces Model
____ has provided a way of effectively looking at the structure of an industry and at a company's competitive strength and positioning relative to that industry and to the markets it serves.
Porter's five forces
__________ entrepreneurship is characteristic of small lifestyle business
Replicative
n 2006, the ____ was signed into law to provide relief to owners whose marks have been tarnished by third-party marks.
Trademark dilution Revision Act
A ____ will tell the entrepreneur whether people are interested in the product/service and prove that it's worth the time and money to build out a more elaborate site.
beta site
To determine whether the accounting and control procedures are adequate once the new venture is beyond the startup phase and is growing consistently, ____.
an annual audit is needed
To analyze specific aspects of the macro-environment, an entrepreneur should use _______
a PEST analysis
Which of the following is not eligible for a patent?
a naturally occurring substance
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 new company
____ status or legitimacy is derived principally from the entrepreneur's education and experience.
achieved
Which of the following is not a component of a business model?
action model
An informal panel of experts and other people who are interested in seeing the new venture succeed is a/an ____.
advisory board
The principle of ____ means looking for the strengths or positive aspects of a problem definition first.
affirmative judgement
Intellectual-property rights are protected by ____.
all of these
Critical entrepreneurial skills include ____.
all of these choices
The ____ is different from the other financial statements in that it looks at the financial health of the business at a single point in time.
balance sheet
The firm's ____ should be thought of as a business partner who can be a source of information and networking; help make decisions regarding capital needs; and assist in preparing pro forma operations and cash-flow analyses.
banker
____ are primarily interested in the company's margins and cash flow projections.
bankers/lenders
The business concept should ____.
be a quick "elevator pitch"
Customer identification, customer validation and ____ are all part of the product development cycle.
business creation
The need of Internet companies to protect their ways of doing business is addressed by a/an ____ patent.
business method
Entrepreneurs typically face two types of POC: the technology or product POC, and the ____ POC.
business model
The two fundamental activities that comprise a/an ____ are creating and capturing value.
business model
A ____ depends on a feasible business model that has been market-tested and is reliable.
business plan
Pro forma financials are a key part of the ____.
business plan
There are two types of ____ agreements: a cross-purchase agreement and a stock redemption agreement.
buy-sell
Upon the death of a partner, the insurance proceeds can be used to keep the business going or to buy out the deceased partner's interest under a/an ____.
buy/sell agreement
Many weak business concepts can be eliminated from consideration ____.
by answering a few simple questions
A financial vehicle that enjoys limited liability in that its owners are liable for its debts and obligations only to the limit of their investment is a ____.
c-corporation
____ pay taxes on profits and their shareholders pay taxes on dividends they receive, resulting in double taxation.
c-corporations
A financially healthy company will see its major source of ____ coming from operating sources, such as sales.
cash inflows
To operate as a sole proprietor requires nothing more than a ____.
certificate of doing business under an assumed name
Thinking like a/an ____ can stimulate the natural creativity in everyone.
child
In a/an ____, corporate stock is owned privately by a few individuals and is not traded publicly on a securities exchange.
closely held corporation
____ is the process that moves an innovation from the laboratory to the market.
commercialization
When an entrepreneur decides to use a team effort to create the new venture, he or she generally looks for people who have ____ skills.
complementary
Reducing some of the risk of entrepreneurship and building confidence can be achieved by ____.
conducting a feasibility analysis
According to Rosabeth Moss Kanter, accountability, collaboration, and initiative are all elements of ____.
confidence
A precise ____ increases the chances that the business concept will meet the customers needs.
customer definition
A/An _____ lays out the benefits, distribution channel, product/service, and potential competition for each identified customer segment.
customer matrix
Age, income level, education, and buying habits are all components of the ____.
customer profile
All of the following are part of an entrepreneur's extended network except ____.
customers
entrepreneurship provides many benefits to society, cheifly _______, new industry formation, and ______
economic growth; job creation
A/An ____ reflects all the possible choices to solve the problem and its related outcomes.
decision tree
Anyone investing in a new venture has four principal concerns: rate of growth, return on investment, ____ and ____.
degree of risk/ protection
As more firms enter an industry, intense ____ occurs.
differentiation
A/an ____ statement is, essentially, a cash budget or sources and uses statement,
direct cash flow
Peter Drucker asserted, "The entrepreneurial mystique, it's not magic, it's not mysterious, and it has nothing to do with the genes. It is ____."
discipline
____ sees opportunity arising from shifts in external factors in the market or industry, such as regulation, technological changes, and changes in customer preferences.
discovery theory
____ innovations can find no identifiable market in the earliest stages of development
disruptive
A value chain includes the
distribution channel
Internet ventures have unique metrics because they typically start with three types of "customers": visitors, contributors, and ____.
distributors
Responding to this entrepreneurial drive, big business in the 1980s found it necessary to downsize and reverse the trend of ____ it had promulgated for so long.
diversification
Sole proprietorships offer several advantages, which include all of the following except ____.
dividends are paid to owners
The ____ protects inventors from infringers who would violate a patent by making small, insignificant changes in the claims.
doctrine of fair use
A corporation that is chartered in the state in which it will do business and issue stock is a/an ____.
domestic corporation
Gartner's conceptual framework for the new venture creation process focuses on three major categories of variables: the individual entrepreneur and what he or she brings to the process; the ____; and the ____.
environemnt; organization
One of the biggest incentives for taking on the risk of a startup venture is the opportunity to acquire a/an ____ stake and participate in the potential upside if the startup is a success.
equity
Which of the following rules does not apply to idea generation?
evaluate individual ideas before modifying them
Noller developed a formula that suggests that creativity is a function of three dynamics: knowledge, imagination, and ____.
evaluation
Entrepreneurs should keep in mind that the purpose for doing a/an ____ is to sell the business.
executive summary
Today most investors want to see a well-written ____ that tells a compelling story and grabs their interest.
executive summary
A high-tech venture with significant up-front funding and the potential for exponential growth requires a management team of ____.
experienced professionals
When choosing people to serve on the board of directors, consider those who have all of the following characteristics except ____.
exploitative behavior
The industry in which a new venture will operate is the business's ____.
external environment
A feasibility study and a business plan are essentially the same.
false
A high-growth venture cannot be started as a sole proprietorship.
false
A highly focused executive summary and pitch presentation are best developed from a completed business plan.
false
A new venture's health is measured by its balance sheet.
false
An accountant is your advocate, but your lawyer is bound by rules and ethics that do not permit advocacy.
false
Choosing a good attorney is a time-consuming but vital task that should be accomplished immediately after startup.
false
Common types of roadblocks to creativity are personal, relational, and environmental.
false
Drucker's five questions are the basis for the development of the business concept.
false
Entrepreneurs build businesses based on concepts that never existed before.
false
Industries remain static or stable over time, so it is easy for the entrepreneur to research and understand the industry.
false
Investors consider research and development, engineering, and testing of new products to be low-risk, so funding for these activities is not difficult for the entrepreneur to secure.
false
Investors tend to look for technology-driven companies rather than market-driven companies.
false
LLCs are becoming a popular vehicle for companies that may have global investors, because the C- corporation does not permit foreign ownership.
false
Laws and phenomena of nature, naturally occurring substances, abstract mathematical formulas, and ideas are eligible to be patented.
false
Nonprofit corporations are not allowed to make a profit, according to the Internal Revenue Service.
false
Price skimming is finding out what customers are willing to pay for the product and pricing it accordingly.
false
Product development and intellectual-property development are not closely intertwined.
false
Stage 3 of the business model is to calculate how to create value for the customer.
false
The executive summary of the business plan should be no more than two pages long.
false
The law requires a partnership to draw up a written partnership agreement based on the Uniform Partnership Act.
false
The least important part of any financial plan is the assumptions on which it is based.
false
The strongest product POC is a working prototype.
false
With the benefits of information and systems technologies, the success rate of new product development has climbed to 85 percent at launch.
false
Working boards are crucial in the startup phase.
false
a business concept is a concise description of an opportunity that contains seven essential elements
false
an effective business model should be built in seven stages
false
business concepts are developed quickly and can be funded and operational within 2 days
false
entrepreneurial ventures are not responsible for significant job creation
false
in an entrepreneurial endeavor, risk is correlated with reward; that is, the higher the risk taken, the greater the reward expected
false
it's been proven that entrepreneurs start businesses solely to make money
false
most businesses produce either a product or service, but not both
false
research has determined that effective and efficient business planning correlates with business success
false
target market research provides some of the least important data needed to decide who the first customer will be
false
the chances of success for a new business startup are determined primarily by size of the initial financial investment
false
The intense effort required of a startup can be shared when the entrepreneur uses a ____.
founding team
The market research process has ____ steps.
four
as entrepreneurial firms achieve noticeable levels of success and as new industry grows, it generally becomes more_______ as a result of so many firms competing for position
fragmented
In a/an ____, all partners assume unlimited personal liability and responsibility for the management of the business.
general partnership
When one or more people agree to assume unlimited personal liability and responsibility for management of the business, a ____ exists.
general partnership
The best way, and sometimes the only way, to accurately gauge customer demand is to ____.
go into limited production
How a product or service is priced is a function of the company's ____.
goals
The main reason for new product development failure is lack of ____.
good marketing and industry analysis
Most of the great businesses that have been successful for at least 50 years (companies such as Walt Disney, Sony, and Merck) did not start with a/an ____.
great idea
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
great team
entrepreneurs are taking advantage of several sub-trends within the _______ sector, including eco-iconic marketing
green power
research has confirmed that entrepreneurs are motivated intrinsically by such things as the desire for _____
growth
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?
growth and adaption
The section of the business plan that presents the strategy that will be used to ensure that the business is sustainable and continues to scale over its life is included in the ____.
growth plan
____ comprise over two-thirds of all sole proprietorships, partnerships, and S-corporations in the United States.
home-based businesses
The ____ produces about three times as many ideas per unit of time and these ideas are generally of much higher quality.
hybrid process
The first two steps in building a business model involve ____ and ____.
identifying position in the value chain / creating customer value
Income derived from for-profit activities in a nonprofit corporation is subject to ____.
income taxation
The vast majority of innovations today are ____.
incremental
Strictly speaking, Schumpeter did not see ____ as innovation even if they generated economic growth.
incremental improvements
Parties who run their own businesses and are hired by the entrepreneur to do a specific job are ____.
independent contractors
____ is the first step in an anthropological approach to customer observation. \
induction
A/An ____ is a group of companies that are engaged in similar or related activities.
industry
Birth, growth and adaptation, and shakeout are stages of the ____ life cycle.
industry
One of the best ways to discover an opportunity is to study a/an ____ in depth.
industry
The "first customer" is the customer who pays for the product or service and is the customer with the most ____.
pain
"How is the industry described?", "Is the industry growing?", and "Where are the opportunities?" are all examples of the questions that should be answered when conducting the ____.
industry analysis
____ is found if a mark is likely to cause confusion with a trademark already existing in the marketplace.
infringement
Creativity is the behavior that results in ____.
innovation
____ is concerned with the process of commercializing or extracting value from ideas.
innovation
____ is finding a new way to do something or improving on an existing product or service.
innovation
Denmark, Israel, United Arab Emirates, and the United States have ____ economies
innovation-driven
A board member who is a founder, employee, or retired manager of the firm is a/an ____.
inside board member
The 1970s saw the beginning of three significant trends that would forever change the face of business: macroeconomic turmoil, ____, and the technological revolution.
international competition
Toward the end of the 1980s, researchers observed that young entrepreneurial ventures were ____ much earlier than expected and at a much smaller size.
internationalizing
Entrepreneurs must determine how they will make value for all except which of the following?
internet
Which type of business is most likely to be launched on the strength of a feasibility analysis alone?
internet-related analysis
companies engage in skunk works, ____ and ____ to simulate an entrepreneurial environment within the organization.
intrapreneurship / acquisition
Creativity is the basis for ____, which is discovering something that did not exist previously.
invention
The feasibility analysis includes all of the following except ____.
investor analysis
___ life insurance is a policy on the life of principal members of the partnership, usually the senior partners.
key person
The new millennium ushered in what many refer to as the ____.
knowledge economy
Which of the following is not a flaw that investors commonly find in business plans?
lack of enthusiasm
Poor execution, time-to-market increases, and missed first-to-market opportunities are some of the problems associated with ____.
lack of new product development resources
Which of the following is not a barrier to becoming self-employed?
lack of training
A/an ____ is an advocate, but a/an ____ is bound by rules and ethics that do not permit advocacy.
lawyer/ accountant
The board is headed by the chairperson, who, in a new, private venture, is typically the ____.
lead entrepreneur
____ staff is a way for a new business to enjoy the advantages of having the kind of skilled work force available to major corporations without incurring so many of the expenses.
leasing
A corporate form that enjoys the pass-through tax benefits of partnerships in addition to the limited liability of a C-corporation is known as a ____.
limited liability company
Whenever there is competitive rivalry, prices tend to be ____.
lower
Which of the following is not a principle concern of investors?
maket analysis
____ is a critical part of the everyday life of an entrepreneur and is a skill that must be developed and exercised carefully.
making effective decisions
A/An ____ is a grouping of competitors that an entrepreneur targets.
market
____ with customers should give the entrepreneur confidence that the solution being provided is recognized as valuable by customers.
market research
In a/an ____ cost structure, the primary costs of the business come from customer acquisition.
marketing
Twitter has been the leader in facilitating a new trend known as ______
mass mingling
An executive summary should demonstrate a clear link between the ____ and the ____.
pain/solution
A very specific task that an entrepreneur can undertake to prepare for success is to find/be a ____.
mentor
The new environment for business planning makes the case for the importance of a feasibility study and ____ to prove the concept and enable the founding team to launch the venture before completing the formal business plan.
micro strategies
The ____ for POC consists of three primary elements: outcomes, assets, and actions.
micro-strategy
Closing the door, shutting off the phone, and turning off email to prepare to do some creative thinking are all examples of how you can ____.
minimize distractions
What of the following components of the business concept is least likely to ensure the success of the venture?
money
____ represent(s) how the startup uses its cash to cover its overhead before it generates a positive cash flow from operations.
monthly burn rate
Most businesses today produce both products and services that provide ____, which gives the company a competitive advantage.
multiple revenue streams
In the United States, ____ entrepreneurship is most prevalent
necessity-driven
____ serve as gateways to other networks, exerting influence between groups or networks rather than within groups.
network brokers
Lack of good market analysis, technical problems, and human error are reasons for ____.
new product failure
A corporation established for charitable, public (scientific, literary, or educational), or religious purposes or for mutual benefit (trade associations, tennis clubs), as recognized by federal and state laws, is a ____.
non profit corporations
Only about 25 percent of all U.S. businesses are ____, but they account for 67 percent of all sales transactions.
non-profits
The ____ gives information about the projected profit or loss status of the business for a specified period of time.
none of these choices
Robert Chambers used the ____ organizational structure as a vehicle to help low-income people make better purchasing decisions when it came to cars
nonprofit
In forming a ____, the entrepreneur gives up proprietary interest in the organization and dedicates all the assets and resources of the corporation to tax-exempt activities.
nonprofit corporation
New industries are born when technological change produces a/an ________ opportunity that an enterprising entrepreneur seizes
novel
All of the following are types of nonprofit organizations except ____.
novelty shops
The Law of Agency defines the terms employee and independent contractor ____.
on issues of trade
The Small Business Administration Office of Advocacy reports that ____ of new businesses survive at least five years.
one-half
Women now compromise ____ of all entrepreneurial activity globally
one-third
The ____ plan focuses on issues related to processes the venture will own and outsource, as well as where it will get its raw materials, and what type and quantity of labor will be required.
operations
The ____ plan specifies the legal form of organization that the venture will take, whether that be sole proprietorship, partnership, LLC, or corporation.
organization
____ make(s) all partners responsible for the obligations that each incurs in the course of doing business.
ostensible authority
A board member with no direct connection to the business is a/an ____.
outside board member
____ product development provides a young firm with a network of expertise that it couldn't afford to hire in-house.
outsourcing
Which of the following is not a technique that can help entrepreneurs arrive at a realistic forecast of demand for their product or service?
prepare revenue forecasts
An accountant can help a growing business in all of the following except ____.
preparing documents for acquisition of intellectual-property rights
Attorneys can provide the new venture with a wealth of support, which includes all the following except ____.
preparing financial statements
____ starts with a high price to establish uniqueness; then drops the price as competitors enter the market.
price skimming
Observation, online or in-person surveys, phone surveys, interviews, and informal focus group are all ways to collect ____ data.
primary
To access the timeliest information, it is important to gather ____ on an industry.
primary data
In the context of patent protection, ____ is knowledge that is publicly available or was published prior to the date of the invention⎯that is, before the filing of the patent application.
prior art
____ is knowledge that is publicly available or was published prior to the date of the invention⎯that is, before the filing of the patent application.
prior art
The entrepreneurial team owns all or the majority of the stock in a ____.
privately held corporations
Most business ideas stem from a/an ____ that an entrepreneur sees in his or her immediate environment.
problem
Creative ____ is about linking imagination and intelligence, emotion, and logic to arrive at the optimal opportunity.
problem solving
Creating a ____ is the first step in calculating startup capital requirements.
process map
Firms that are most likely to survive over the long term are those that display superior levels of reliability and accountability in performance, ____, and structure.
processes
In service businesses, the cost of goods sold (COGS) is equivalent to the time expended to ____ and ____ the service.
produce/ deliver
It is important to ensure that the final price to the customer or end user is tolerable, given all the mark-ups along the value chain. This is called ____.
product bundle pricing
In a manufacturing business, which of the following is not part of the calculations used to forecast the costs of goods sold (COGS)?
product delivery
____ can be defined as the activity that transforms a set of requirements into a format that brings all the elements into an integrated whole or system.
product design
Opportunity recognition, technical feasibility analysis, and prototype building and field testing are elements of the ____.
product development cycle
One part of the feasibility analysis addresses the business process. This part is called the ____.
product/service analysis
Which section of the business plan details features and benefits as well as the plan for prototyping and testing?
product/service plan
State law permits certain professionals, such as health care professionals, engineers, accountants, and lawyers, to form corporations called ____.
professional service corporations
Which ratio uses net income and net sales from the income statement to give the percentage of each dollar of sales remaining after all costs of normal operations are accounted for?
profit margin
____ change takes place as companies in the industry grow geographically and increase profits through innovations in operations, processes, distribution, and technology.
progressive
Providing more opportunity for the clarification and discussion, the observation of nonverbal communication, and the high response rate are all examples of the advantages of ____.
structured interviews
nourish international, a nonprofit run by ____, raises money to help eradicate global poverty.
students
Most successful startups involve ____.
teams rather than solo entrepreneurs
Early economists recognized that ____ is the primary force behind rising standards of living and that ____ innovation would determine the success of many nations in the future.
technology; technological
Which of the following is not part of direct selling expenses?
telephone expenses
The feasibility analysis is about ____ a new business concept.
testing
The question of how to deliver the benefit to the customer is answered by ___.
the distribution channel
A good starting point for gathering secondary market data is ____.
the internet
Which of the following is not a concern for lenders when they consider an entrepreneur for a loan?
the number of strategic partners the venture has
Each partner owns and has use of the property acquired by the partnership, unless otherwise stated in ____.
the partnership agreement
Once the entrepreneur determines where the new venture lies in the value chain, he or she must create a ____.
timeline
One mistake that entrepreneurs make is to set their prices so that they cover ____ costs plus a margin the entrepreneur is expecting to achieve.
total
A ____ consists of a novel and confidential formula, device, idea, process, pattern, or compilation of information that gives the owner a competitive advantage in the marketplace.
trade secret
____ consist(s) of a formula, device, idea, compilation of information, process, or pattern.
trade secrets
Like patents, ____ can suffer from infringement, counterfeiting, or misappropriation.
trademarks
A month-by-month timeline shows a year in the life of a business with key milestones and anticipated ____.
triggers
A board of directors can be made up of inside or outside members or a combination of the two.
true
A patent gives the patent holder the right to defend the patent against others who would attempt to manufacture, use, or sell the invention during the period of the patent.
true
A process map details how information flows through the business.
true
A product life cycle is analogous to an industry life cycle with periods of product development, market introduction, growth, maturity, and decline.
true
The North American Industry Classification System (NAICS) is the classification system that was developed by the United States, Canada, and Mexico to identify industries and to allow for common standards and statistics across North America
true
The board is headed by the chairperson, who, in a new, private venture, is typically the lead entrepreneur.
true
The product development cycle consists of a series of tasks leading to introduction of the product to the marketplace.
true
The time prior to a firm's birth is called the fuzzy front end.
true
Today many enterprising people are turning to nonprofit ventures to realize their entrepreneurial dreams.
true
When an entrepreneur is attempting to gauge levels of demand, the customer is the prime source of information.
true
When choosing a banker, the entrepreneur planning a new venture should seek out an officer with the rank of assistant vice president or higher.
true
Where the new venture lies in the value chain will determine what its margins are, who its customer is, and how much it can charge for its products and services.
true
business models are doomed to failure when the underlying logic about the future is incorrect
true
entrepreneurial ventures and small businesses are related, but they are not the same in most respects
true
entrepreneurial ventures are responsible for job creation that is disproportionate to the net total new jobs created in the U.S. over the past 25 years
true
entrepreneurs erect roadblocks that prevent them from being creative
true
entrepreneurs identify their primary customers by recognizing a need, or pain, in the market
true
entrepreneurs start businesses for many reasons, but the number one reason appears to be their need for independence and to create something new
true
entrepreneurship can be found in some form in every country, race, age group, and (increasingly) in women as often as men
true
entrepreneurship is a form of creative destruction
true
entrepreneurship is a personal journey that begins in the mind of the nascent entrepreneur
true
one of the biggest problems that scientists and engineers face when they decide to consider entrepreneurship is the expectation that there should be formulas and straight forward "right or wrong" answers
true
radical change occurs in an industry when innovation results in the obsolescence of previous technology and drives old line companies out of business
true
stage seven of Norman Seeff's creative process represents the emotional fulfillment of the original dream
true
the creativity journey begins with maintaining a journal of one's thoughts and ideas
true
the environment in which a person works can either stimulate or discourage creativity
true
the government can limit entry to an industry or market through strict licensing requirements and by limiting access to raw materials via laws or high taxes and to certain locations by means of zoning restrictions
true
the vital issue for entrepreneurs is not avoiding failure but minimizing the cost of possible failure
true
when capital markets make it difficult to find funding, entrepreneurs are less likely to start new ventures from scratch
true
without the support of corporate senior management, it will be difficult to move any entrepreneurial project forward fast enough and far enough to be successful
true
Most countries require that an invention be manufactured in the country within ____ of the issuance of the foreign patent.
two years
What of the following is not a benefit to the customer?
uniqueness
The three major categories of patents are design patents, business method patents, and ____ patents.
utility
____ patents are the most common type of patent.
utility
Entrepreneurs differ from others who have ideas in that they know how to extract ____ from those ideas to creative commercial potential.
value
____ is created when the business is adequately capitalized and has highly regarded investors, an experienced management team, customers, a unique technology, product, or service, the ability to continually innovate, and a rapidly expanding market.
value
Which of the following is not one of the categories into which the resources of a company are often divided?
value chain
The strategic choices that a business model addresses should reflect both the ____ and the ____ processes.
value creation/ value capture
A ____ is the community of partners, suppliers, and other members of the value chain with which the venture does business
value network
The late 1980s brought the "dot com" bubble and the rush of the ____ community to position itself for what appeared to be a new way of doing business.
venture capital
The chances of success are greater when the lead entrepreneur and the team share the same ____ for the new venture.
vision
Entrepreneurs rely on their ____ for objective advice.
weak ties
The ____ in a professional network are the entrepreneur's acquaintances and business contacts.
weak ties
The best question to ask to define a problem is ____?
what is the source of the problem
