ENT Final
A common pitfall in selecting a new venture is
A lack of venture uniqueness
Because of the fair use doctrine, when designing a website or social media page for a new business, an entrepreneur use any content, pictures, music, etc. found on the internet and not worry about violating anyone's copyright interest.
False
This source of innovation is caused by changes in the population, age, education, occupation, geographic location and similar factors?
Demographic changes
Bob Johnson's replication of the MTV format in creating programming for BET is an example of innovation through:
Duplication
Investors look for which of the following when reviewing the experience of the management team of a new venture?
Experience, talent, and integrity
The common sources of equity financing are commercial banks.
False
The corporation, like the proprietorship, avoids the "double taxation" disadvantage associated with the partnership form of ownership.
False
The extent and timing of funds needed to move through the venture process is not a critical issue and has little to do with the success or failure of a new venture.
False
The macro view of entrepreneurship can be broken down into three areas: entrepreneurial trait, venture opportunity, and strategic formulation.
False
The sole proprietorship is the simplest, least expensive form of ownership to begin and the owner and the business are entirely separate.
False
The term opportunity press describes an ethical lapse that occurs when competition is so intense that a company's survival is threatened and a manager begins to view what one was an unacceptable option as acceptable.
False
Dave is a general partner in Eagle Investments, a limited partnership, Dave pays personal income taxes on:
His share of the firm's income
Name the pitfall described by the statement, "Failure to anticipate the technical difficulties related to developing or producing a product can sink a new venture."
Inadequate understanding of technical requirements
Anyone who violates an author's exclusive rights under a copyright is liable for infringement. However, because of this doctrine, it is sometimes difficult to establish infringement:
Fair use
"Monkey Marketing" is a strategy that relies on unconventional, low cost and creative techniques so small companies can wring as much or more "bang" from their market bucks.
False
A business plan is developed through an intuitive process by which the entrepreneur records his/her plans for the business in the future.
False
A limited liability company does not offer the limited liability like a C cooperation.
False
A nascent entrepreneur is an individual who has several years of experience operating as a business owner.
False
A novice entrepreneur is an individual who retains an original business and builds a collection of additional businesses through inheriting, establishing, or purchasing.
False
A serial entrepreneur becomes a business owner by either inheriting a business or by being given a stake a family owner business.
False
A trademark provides the owner with the exclusive rights to hold, transfer, and license the production and sale of a product or process.
False
An entrepreneur is considered to have high tolerance for ambiguity when the entrepreneur cannot deal with the various setbacks and changes that constantly confront them.
False
Ted Turner, founder of CNN, insistence of forming a 24-hour news network after he was told, "That won't work! No one wants to watch news all day!" is an example of what source of innovation:
Incongruities
Trends signal shifts in the current paradigm(or thinking) of the major population. Observing trends closely will grant an entrepreneur the ability to recognize a potential opportunity.
True
Under a cash system of accounting, revenue and expenses are recorded when received and paid respectively without regard for the period to which they apply.
True
Which of the following is not true about the protection of intellectual property under a patent:
a patent last the life of the investor plus 70 years
Which of the following is considered a benefit of entrepreneurship?
impressive profits
Which of the following is not true about the protection of intellectual property under a trade secret theory:
must register trade secrets with federal agency
Entrepreneurs have been considered academic and social misfits because:
several highly successful entrepreneurs did not complete college
The most common source of debt funds used to start a small business is:
the entrepreneur pool of personal savings
Based on the average number of business ventures incorporated annually, how many new businesses are started each year in the United states?
600,000 per year
A market is
A group of consumers who have purchasing power and unsatisfied needs
Which of the following statements about innovation is true?
Accomplished innovators are very practical people and create from the opportunities left by reality
One researcher suggest that legal behavior represents one of the four rationalizations managers use to justify questionable conduct:
All of the above (activity is not illegal, cooperations best interest,never be found)
In examining the community perspective, an entrepreneur should consider:
All of the above (demographics, economic, population, overall)
A common legal concern that new ventures face is
All of the above (making workplace safe, providing reliable, and necessity of patents)
Most university center for entrepreneurship focus on which of the following?
All of the above (outreach, etc.)
Who are the "stakeholders" that a corporation managers should consider when making a management decision?
All of the above (owners, employees, community)
Which of the following are ways to avoid the common pitfalls in creating a new business venture?
All of the above (prepare, manage, be unique)
Barriers to entry may include having lack to the following:
All of the above (proprietary, distribution, infrastructure)
Which of the following is not one of the categories of financial ratio:
All of the above(Liquidity, Leverage, etc.)
The new trend to build housing communities for people age 55 and over best reflects which source of innovation?
Demographic changes
These ___________ are wealthy individuals, often entrepreneurs themselves, who invest in start-up businesses in exchange for equity stakes in the company:
Business angels
This segment of the business plan discusses the history, purpose, uniqueness, and mission of the proposed venture:
Business description section
Entrepreneurs themselves perceive the concept of risk in which of the following ways:
Calculated risk taking
An entrepreneur uses this budget for items they intend to use long term, generally more than a year:
Capital budget
The first critical factor in the marketing-research process is:
Defining the research purpose and objectives
Each and every person in a communist economic system has the potential and free choice to pursue as an entrepreneur.
False
In a limited partnership, the liability of each partner is limited to the amount of capital he or she has invested in the partnership.
False
In innovation through duplication, the entrepreneur simply copies some else business idea.
False
Innovation through perceptual changes is caused by continual shifts in the market due to changes in consumer attitudes, advancements in technology, and industry.
False
Large businesses are the most common form of business establishment.
False
Obtaining a business license is the same as forming a legal entity for a business.
False
Only 20% of all businesses employ fewer than 20 people.
False
Operating expenses are expenditures incurred after the decision has been made to establish particular business but before business operations begin.
False
Seldom do entrepreneurs get the idea for their new business through prior experiences or while working for companies in the same industries.
False
Typically, an entrepreneur is not faced with many ethical decisions, especially during the early stages of their new venture.
False
Under debt financing an entrepreneur must consciously decide to give up part of the ownership in venture in return for the funding.
False
Whereas investors are generally more interested in security and payback; finance companies, as partial owners of the companies they lend to, are more concerned with the return on investment.
False
Works created and copyrighted after January 1, 1978, are protected for an unlimited duration.
False
A business plan:
Forces an entrepreneur to think a business idea through, considering both its positive and negative aspects
This characteristic of entrepreneurship is consistent with a high-achievement, motivational drive, the desire to take personal responsibility, and self-confidence:
Internal locus of control
The four methods of innovation include which of the following?
Invention, extension, synthesis, and duplication
In reality, advertising:
Is an investment in the future; without steady advertising the customer base will dry up
For this kind of entrepreneur, making money is important but "enough" money is often more important than the more traditional capitalist pursuit of wealth:
Lifestyle
A form of partnership that includes at least one general partner who is liable for all its liabilities and at least one partner who is liable for the capital invested in the partnership is the:
Limited partnership
A fixed expense:
None of the above: does not change
Mike, Nora, and Owen want to form a limited partnership. A limited partnership must have a least:
One general partner and one limited partner
A discussion of the location, facilities, zoning, access, transportation, etc should be included in the:
Operations section of the business plan
Which of the followings is a drawback of entrepreneurship:
Opportunity to risk losing entire investment
Poor financial understanding for an entrepreneur would be characterized by which of the following?
Overly optimistic estimate of funds
The current desire for locally grown, organic, and whole grain foods has lead to the creation of grocery stores such as Whole Foods and to the reemergence of local farmer's markets is an example of which of the following sources of innovation?
Perceptual changes
The most common form of business ownership is the:
Proprietorship
This element of a marketing communication plan focuses on sales presentations that is non-personal in nature and is free:
Publicity and Public Relations
Which of the following techniques are used for gathering primary data for market research:
Surveys
A restrictive covenant is a clause in a contract which prohibits an employee from competing with his ex-employer for a certain geographic area after the employee has left the business.
True
Drs. Kays and Lyle are partners in a medical clinic, which is organized as a limited liability partnership. A court holds Lyle liable in a malpractice suit. Kay is liable:
To the extent of her capital contribution
LeBron James is in the process of launching a sports bar and restaurant. His biggest supplier, Cavalier Cuts, agrees to sell inventory. What type of financing?
Trade credit
A SWOT analysis is used to access an organizations strengths, weaknesses, opportunities, and threats.
True
A gazelle is defined as a business establishment with at least 20 percent sales growth every year, for over five years, starting with a base of at least $100,000.
True
A limited liability company formed and chartered in Virginia is considered a foreign corporation when doing business in Maryland.
True
A major source of information about the entrepreneurial perspective is compendiums about entrepreneurs.
True
A new venture will not survive unless there is a market that exist for its product or services.
True
Although there is no single definition of an entrepreneur, there are common themes found in defining entrepreneurship.
True
An entrepreneur must be willing to risk their own personal funds in a business venture first, in order for other potential investors and lenders to provide capital for it.
True
Characteristics of successful entrepreneurs can be taught and learned by those who are willing to study them.
True
Depreciation is a financial term used to describe the lost usefulness; expired utility; the diminution of services yield from a fixed asset to fixed asset group that cannot be restored by repairs.
True
Economic displacement is concerned with the economic variations of recession and depression- job loss and simple "bad times" can create the foundation for entrepreneurial pursuits.
True
Entrepreneurs can identify viable business opportunities by observing trends, solving problems, or finding gaps in the market place.
True
Entrepreneurs who do not prepare a business plan are less likely to get money they need for a lender or investor.
True
Ethics represents a set of principles prescribing a behavioral code that explains what is good and right or bad and wrong; ethics may, in addition, outline moral duty and obligations.
True
Generally, anything that makes an individual company unique and has value to a competitor could be a trade secret.
True
Globalization of business has intertwined what once were distinct cultures; companies have discovered that there is no single standard of ethical behavior applying to all business decisions in the international arena.
True
If the partners fail to create an agreement, the UPA says that the partners share equally in the partnership's profits, even if their original capital contributions are unequal.
True
In most cases, lenders and investors look for key people, promising opportunity, business context and risk and rewards in a business plan.
True
Informal risk capitalist often referred to as "business angels" are those who have already made their money and available to help new ventures.
True
It is wise for an entrepreneur when selecting a business name to search the internet, state corporations commission, and the United States Patent and Trademark office to determine its availability.
True
Market research involves the gathering of information about a particular market, followed by analysis of information.
True
Nearly 80 percent of would-be entrepreneurs in the United States are between the ages of 18 and 34.
True
Pro forma statements are a firms financial position over a future period and on a future date.
True
Proper financial management requires more than gathering financial data and organizing it into financial statements; the entrepreneur must analyze those statements and use that information to make better business decisions.
True
Several highly successful brands eventually failed because of poor quality, management, and locations.
True
Some of the reasons why many entrepreneurs fail to engage in marketing research are cost, complexity, irrelevancy, and lack of need in marketing decisions.
True
Techniques for generating ideas may include having brainstorming sessions, hosting focus groups, conducting surveys, and establishing customer advisory boards.
True
The business plan presentation should be slow, methodical, and detailed to show the depth of understanding.
True
The ecology pertains to such issues as pollution and waste disposal, recycling of usable materials, protection of wildlife preserve areas, workplace safety and hazards, and the general quality of life.
True
The entrepreneurial ego may be manifested if the entrepreneur has an overriding desire for success and an overbearing need for control.
True
The four main areas if environmental assessment include the societal environment, the specific industry environment, the community prospective and the venture organization.
True
The four phases of the creative process are knowledge accumulation, incubation, idea experience, and implementation/evaluations.
True
The small business manager should employ the different advertising media than competitors to increase the likelihood of advertising success.
True
The utilitarian principle evaluates ethical behavior based on choosing the option that offers the greatest good for the greatest number of people.
True
To draw customers to a new venture, an entrepreneur should provide performance or services that are superior to competitive offerings.
True
Unlike a limited partnership, which prohibits limited partners from participating in the day-to-day management of business, an LLC does not restrict its members' ability to become involved in managing the company.
True
When a "bad barrel" ethical lapse occurs, the company culture has been poisoned with an unethical overtone and unethical behavior is rewarded.
True
When examining a communitiy's economic base, it is wise to examine any community dependence on one large firm or industry or how a community may be impacted by seasonal or cyclical fluctuations.
True
When preparing the business plan, the entrepreneur should not assume the investor understands the business the entrepreneur is starting.
True
When selection of a location for a new venture, it is important to examine population trends in order to identify expanding communities as opposed to long-term dealing or static population.
True
Which of the following are sources of innovation?
Unexpected occurrences and incongruities
Ann owns Beta Enterprises, a sole proprietorship. Ann's liability for the obligations of the business is:
Unlimited
There are three basic requirements for a patent to be granted. The subject of patent application must be:
Useful, novel in relation to prior arts in the field, and not obvious to a person of ordinary skill in the field
__________ are private, for-profit organizations that purchase equity positions in young businesses they believe have high-growth and high-profit potential:
Venture capital firm
This type of ethical lapse occurs because of the company culture has been poised with unethical overtone and unethical behavior is rewarded:
bad barrel
All of the following are important when implementing and maintaining ethical standards in business except:
basing hiring decision soley on professional qualifications
A variable expense:
changes in response to change in activity for a given period of time
Break-even analysis is a technique commonly used to assess the:
expected product profitability
This entrepreneurial risk is often experienced by entrepreneurs who are married, and especially those with children, expose their families to the risk of an incomplete family experience and the possibility of permanent emotional scares:
family and social risk
A good trait for an entrepreneur to have is a:
low need for status and power
When referring to "luck" and an entrepreneur, which of the following statements in an appropriate adage?
luck happens when preparation meets opportunity
The marketing plan should include certain keys objectives, such as:
pinpointing the specific target markets a small business will serve and methods to capture them
An entrepreneur who retains an original business and builds a collection of additional businesses through inheriting, establishing, or purchasing them is called:
portfolio entrepreneur
Carlos founded the "Taco Factory" 20 years ago as a family-oriented restaurant business. Over the years.. Recently the stockholders.. Carlos experienced which of drawback of the corporate form of ownership?
the potential loss of control
According to this entrepreneurial school of thought developing the right idea at the the right time for the right people for the right market niche is the key to success:
the venture opportunity
The micro view is divided into which three theories?
the venture opportunity, entrepreneurial trait, strategic formulation
Under this strategic formulation school of thought, this approach to entrepreneurship refers to the skills or special talents of one or more individuals around whom the venture is built:
unique people
A disadvantage of using friends and relatives as investors is:
unrealistic expectations or misunderstood risks
