ENT4113 FIU FINAL | Entrepreneurship SUCCESSFULLY LAUNCHING NEW VENTURES

For most business plans, ________ pages are sufficient.

25 to 35

The Barringer/Ireland Business Model Canvas consists of ________ major category(ies) and ________ parts.

4;12

In various studies, researchers have found that from ________ percent of the variation in firm profitability is directly attributable to the industry in which a firm competes.

8 to 30

Operating leverage is highest in companies that have ________.

A high proportion of fixed costs relative to their variable costs

The number one characteristic shared by successful entrepreneurs is ________.

A passion for the business

3 Minute Optimizer and Optimizely are Web sites that provide access to ________.

A/B split testing services

The Savvy Entrepreneurial Firm feature in Chapter 1 focuses on incubators and accelerators, those that help start-ups. ________ are organizations that offer a small amount of seed funding in exchange for small equity positions in the companies that participate in their programs.

Accelerator

Which of the following firms has a peer-to-peer business model?

Airbnb

The What Wrong feature in Chapter 2 focuses on Everpix, a company that enabled users to organize and store photos online in an innovative manner. Regrettably, Everpix failed. According to the feature, Everpix's failure resulted from that fact that it's founders spent too much time ________.

And energy perfecting their service at the expense of building a business

Day-in-the-life research is a type of ________ research.

Anthropological

Kate Payne was reading the business plan for New Venture Fitness Drinks, and noticed that prior to its financial statements, New Venture Fitness Drinks placed an explanation of the sources of the numbers for the statements and the assumptions used to generate them. This explanation is called a(n) ________.

Assumptions sheet

Which of the following statements about limited partnerships is incorrect?

Both the limited partners and the general partners are responsible for the debts and obligations of the partnership.

The document that does the best job of introducing potential investors and other stakeholders with the business opportunity the firm is pursuing and how it plans to pursue it is the ________.

Business plan

Which of the following is NOT an example of a social force?

Changes in interest rates

________ refers to the number of subscribers that a subscription-based business loses each month.

Churn

Most C corporations have two classes of stock— ________ and ________.

Common; preferred

Tracy Brady is in the process of developing an exciting new product in the smartphone industry. She'd like to show a preliminary description of the product to industry experts and prospective customers to solicit their feedback. Tracy should complete and distribute a(n) ________ statement.

Concept

A code of ________ is a formal statement of an organization's values on certain ethical and social issues.

Conduct

In the Barringer/Ireland Business Model Template, a(n) ________ is a specific factor or capability that supports a firm's business model and sets it apart from its rivals.

Core competency

Apple is an established firm that encourages and emphasizes entrepreneurial behavior throughout its various divisions. According to the textbook, Apple practices ________ entrepreneurship.

Corporate

An example of a valuable library resource is IBISWorld, which is a(n) _______.

Database of industry-related information

Which of the following is the correct sequence for the four steps in the entrepreneurial process?

Deciding to become an entrepreneur, developing successful business ideas, moving from an idea to an entrepreneurial firm, managing the growing entrepreneurial firm

Which of the following is NOT one of the four steps of the entrepreneurial process?

Determining how to seize the spotlight

GasBuddy is a company started to help consumers save money on gas. Which environmental trend is most likely to have provided the impetus for the creation of this company?

Economic Forces

In the five-stage creative process, the stage in which the creative idea is put into final form is referred to as the ________ stage.

Elaboration

Brain Sentry is starting a firm in the small industry that helps football teams discern whether a player has suffered a concussion. This industry is still so new that no standard operating procedures have been developed. The industry Brain Sentry is entering is an example of a(n) ________ industry.

Emerging

Which of the following is NOT one of the five common myths about entrepreneurs?

Entrepreneurs are tenacious

Pacific Fishing LLC is a startup that is working on a new technology for the fishing industry. Because the technology it's working on is highly proprietary, the company is located in the warehouse district of a large western city. Pacific's founder, Ray Sims, rarely gives interviews and is careful to not divulge much about what the company is doing. Which of the following common myths about entrepreneurs does the behavior of its founder, Ray Sims, dispel?

Entrepreneurs love the spotlight.

Alex and Patty Webb launched a firm several years ago and have been particularly successful in introducing new products to the marketplace. One thing that Alex and Patty are particularly good at is translating their thoughts, creativity, and imagination into products that reach the marketplace. The ability to make this happen is most closely related to which of the following characteristics of successful entrepreneurs?

Execution Intelligence

Melanie Summer spoke to an investor who is interested in her business idea. Melanie offered to send the investor a copy of her full business plan, but the investor asked for a short overview of the business plan instead. What portion of her business plan should Melanie send the investor?

Executive Summary

The ________ is a short overview of the entire business plan.

Executive Summary

________ is the process of determining whether a business idea is viable.

Feasibility analysis

The First Screen feasibility analysis template included in Chapter 3 is called "First Screen" because ________.

Feasibility analysis is an entrepreneur's initial or first pass at determining the feasibility of a business idea

Which section of the Barringer/Ireland Business Model Template is the only section that describes how it makes money?

Financials

Clothing boutiques and specialty shops often start because there is a need for a particular product, but large retailers like Wal-Mart and Costco can't sell enough of the item to stock it on their shelves. If a clothing boutique started to sell designer clothes or clothing for hard-to-fit people because the clothing wasn't being offered by a larger retailer, the best way to describe how that idea was recognized is ________.

Finding a gap in the marketplace

The template for completing a feasibility analysis included in Appendix 3.2 of the book is called the ________ analysis.

First Screen

According to the textbook, the Five Forces model can be used in the following two ways: ________.

First, to help a firm determine whether it should enter a particular industry, and second, to help a firm discern whether it can carve out an attractive position in that industry

According to the textbook, the first rule in making an oral presentation is to ________.

Follow instructions

A(n) ________ industry is one that is characterized by a large number of firms of approximately equal size.

Fragmented

In the context of competitor analysis, ________ competitors are companies that are not yet direct or indirect competitors but could move into one of these roles at any time.

Future

Katlin Smith is investigating the feasibility of developing an iPhone app to help high school students with math. To get a good handle on the potential demand for her service, Katlin is scrounging around for information wherever she can find it. She even spent two weeks volunteering as a math tutor at a local high school to see how students responded to her methods. Katlin is conducting ________ research.

Gumshoe

Which of the following factors is a negative as it pertains to the financial feasibility of a business venture?

Inability to forecast income and expenses with a reasonable degree of accuracy

Which of the following is a disadvantage of a C Corporation?

Income is subject to double taxation.

In the beverage industry, soda, fruit juice, and sports drinks are ________ competitors of bottled water.

Indirect

Which of the following issues should be considered in industry/target market feasibility analysis?

Industry attractiveness

Which of the following is the proper sequence for when a firm should develop a business model?

Initial validation of the business idea, preparation of the business model, fleshing out the operational details of the firm

Which of the following is NOT an attribute of an attractive industry?

Is late rather than early in its life cycle

The Savvy Entrepreneurial Firm feature in Chapter 4 focuses on the ways in which CoachUp creates, delivers and captures value for its stakeholders. According to the feature, CoachUp would be a business that would be difficult to copy. According to the feature, it would be difficult to copy because ________.

It has raised $9.4 million, has 13,000 coaches in its platform, and tens of thousands of athletes who have used its service

Which of the following statements is incorrect regarding the industry analysis portion of a firm's business plan?

It is important to focus simultaneously on a business's industry and its target market.

Which of the following is incorrect regarding the "total startup cash needed" component of financial feasibility analysis?

It's not necessary to complete an actual budget of startup expenses.

In the book The Theory of Economic Development, ________ argued that entrepreneurs develop new products and technologies that, over time, make current products and technologies obsolete. This process is called creative destruction.

Joseph Schumpeter

Montana Sky Trails leads multi day outdoor adventure trips for private groups and corporate clients to various locations across Montana. The company was started by Justin Smith, an individual that gave up a prestigious job in banking because Montana Sky Trails better accommodates his personal lifestyle. Montana Sky Trails is an example of a(n) ________ firm.

Lifestyle

Generally, industries are more attractive when the threat of substitutes is ________.

Low

A(n) ________ statement describes why a company exists and what it aspires to become.

Mission

Kellen West recently launched a firm in the fruit drink industry, and has already exported his fruit drinks to 11 different countries. One thing that Kellen's firm is doing is that it is varying the tastes of the fruit drinks it sells on a country-by-country basis to meet the demands of the local markets. Kellen's firm is pursuing a ________ strategy.

Multidomestic

A(n) ________ team is the group of founders, key employees, and advisers that either manage or help manage a new business in its startup years.

New venture

There are two types of disruptive business models — ________ and ________.

New-market; low-end

The number one rule for a brainstorming session is ________.

No criticism is allowed

Jessica Marsh just took a job with Instagram. As part of her employment contract, Jessica signed an agreement that states that she will not disclose any of Instagram's trade secrets. The agreement that Jessica signed is called a(n) ________ agreement.

Nondisclosure

The three ways to identify an opportunity include ________.

Observing trends, solving a problem, and finding gaps in the marketplace

What section of the business plan deals with the day-to-day operations of a company?

Operations plan

A(n) ________ is a graphic representation of how authority and responsibility are distributed within a company.

Organizational chart

The most important issues to consider in financial feasibility analysis are: financial performance of similar businesses, total cash needed, and ________.

Overall attractiveness of the proposed venture

The Partnering for Success feature in Chapter 3 focuses on the task of finding the right business partner. According to the feature, which of the following is an incorrect rule-of-thumb in finding a business partner?

Pick a partner that is similar rather than different from you in terms of skills, abilities, and functional background

If the owners of a corporation don't file their annual paperwork, neglect to pay their annual fees, or commit fraud, a court could ignore the fact that a corporation has been established and the owners could be held personally liable for the actions of the corporation. This chain of events is referred to as ________.

Piercing the corporate veil

If a new firm was launched to help businesses comply with The Affordable Care Act, that opportunity was created by ________.

Political actions and regulatory changes

________ research is research that is collected by the person or persons completing the analysis. ________ research probes data that is already collected.

Primary, Secondary

A company's ________ scope defines the products and markets on which it will concentrate.

Product/Market

Stacey Wills, who is at heart a craftsperson, recently started a firm to manufacture a new innovative food blender. Stacey's desire is to sell her food blender to as many people as possible because she firmly believes in the merits of her product. Stacey's story best illustrates which of the following characteristics, or attributes, of a successful entrepreneur?

Products/Customer focus

Corporations that trade their stock on organized exchanges like the New York Stock Exchange and the NASDAQ are called ________ corporations.

Public

One of the businesses owned by Kirsten Blowers, the entrepreneur profiled in the opening feature of Chapter 1, is Riffraff. Riffraff sells ________.

Refurbished Furniture

Which of the following was NOT given in the textbook as a reason for the increase in the number of senior entrepreneurs?

Seniors tend to be more passionate about new business ideas than middle-aged or younger prospective entrepreneurs.

Which of the following statements is incorrect regarding the personal characteristics of entrepreneurs?

Several studies show that prior experience in an industry actually blinds an entrepreneur to the recognition of new opportunities in the same industry.

Which of the following is NOT a personality trait or characteristic common among entrepreneurs?

Short attention span

In regard to patent activity (issuance), which of the following statements is correct?

Small businesses outperform their larger counterparts.

The Savvy Entrepreneurial Firm feature in Chapter 2 features three firms: Swipe Out Hunger, Soko, and Drive for Change. All three are examples of ________.

Social Ventures

An individual who identifies a business idea on his or her own is referred to as a(n) ________ entrepreneur.

Solo

Conner Bradshaw is investigating the feasibility of a new type of electronic game targeting middle school and high school-age boys. Which of the following is an example of "gumshoe research" that Conner could conduct to get a sense of the likely demand for his game?

Spend several days in electronic games arcades and stores to observe the types of games that attract the interest of middle school age and high school age boys.

Which of the following is NOT an individual, group or institution that normally reads a company's business plan?

State and local government officials

Which of the following is an incorrect approach to administering a concept test?

The best candidates to distribute a concept statement to are family and friends.

Which of the following statements is incorrect about business plans?

The business plan should be written while the feasibility analysis is being completed.

According to the textbook, how do well-managed firms respond to the five forces that determine industry profitability?

They try to position their firms in a way that avoids or diminishes the forces.

In general, industries are more attractive when the ________.

Threat of each of the five forces is low

A network entrepreneur is an individual who identifies his or her business idea ________.

Through social contacts

According to the Global Entrepreneurship Monitor (GEM) 2015-2016 study, the majority of people in high-income countries are drawn to entrepreneurship ________.

To take advantage of an attractive opportunity

An excellent resource for doing a quick trademark search is ________.

Trademarkia

IndieU is the focus of the opening feature of Chapter 4. Connecting college students with new indie artists and putting it in the students' hands to stage unforgettable college experiences that showcase fresh music is IndieU's ________.

Unique value proposition

A computer-generated image of an invention that displays the invention as a 3D model that can be viewed from all sides and rotated 360 degrees is called a(n) ________.

Virtual prototype

According to research in this area, it is more likely that an entrepreneur will get a new business idea through a ________ -tie relationship than the alternatives.

Weak

Alex has a number of casual acquaintances that he interacts with infrequently. The relationships that Alex has with these people are referred to as ________ -tie relationships.

Weak

The What Went Wrong? feature in Chapter 1 focuses on Prim, a failed startup in the laundry industry. According to the feature, Prim failed largely as a result of ________.

a lack of passion and resolve

According to the textbook, entrepreneurship has historically had ________.

a major impact on both the economy and society

A company's mission statement should be placed in the ________ section of its business plan.

company description

Industry structure refers to how ________ an industry is.

concentrated or fragmented

A(n) ________, in a business plan context, is a noteworthy event in the past or future development of a business.

milestone

According to the textbook, a business plan is best described as a(n) ________.

narrative description of a new business

Kasey Stevenson is starting a firm in the women's clothing industry primarily to pursue financial rewards. According to the textbook, starting a business to make a lot of money ________.

often fails to live up to its hype

A prototype is ________.

the first physical depiction of a new product

Jan Berry recently received a $500,000 inheritance from her maternal grandmother. Jan decided to use the money to start a business. According to the textbook, the inheritance that Jan received was the ________ that prompted her to start a business.

triggering event