Entrepreneurial Midterm
Of the following, which is not typically identified as a bootstrapping technique?
hiring seasoned veterans
The average size of social loans is around $17,000.
true
Which of the following would be most commonly used for long-term financing?
insurance companies
Which of the following is a key question to ask when performing a feasibility criteria approach?
is it proprietary
Relying on abstractions can
limit on'es perception on reality
Coming up with a unique good or service is a _____ approach, while adapting something that is currently on the market or extending the offering to an area where it is not presently available is a(n) _____ approach.
new new, new old
Equity capital is
not a loan but a form of stock.
Innovation is planned and predictable.
false
Venture capitalists are quick to invest.
false
Informal risk capitalists are often referred to as "business angels."
true
Only a small percentage of new ventures succeed.
true
The person who gets the franchise is usually required to do all of the following except:
design a logo for the unit
Truly creative people are always geniuses.
false
According to Forbes, the net worth of the richest ______ Americans was $2.29 trillion ($5.73 billion per person).
400
Which of the following is not currently cited as a trend creating business opportunities?
breakfast cereals
All of the following should be examined when evaluating the selection of venture except
employees
Process needs
exist when and entrepreneur can meet a new source of demand.
It is really genius and not hard work that creates success for the entrepreneur.
false
Much franchise litigation has arisen over termination of owners.
false
The creative climate rejects the ambiguity common in work and life.
false
The sources of new business ideas among men and women are identical in type and proportion.
false
The venture capital pool is rapidly declining due to overfunding.
false
Synthesis is the combining of two existing concepts into a new formulation.
true
The terms upside gain and downside loss refer to the profits the business can make and the losses it can suffer.
true
Uniqueness in a product or service can be demonstrated through a new-new approach or a new-old approach.
true
Lack of finished product availability can affect
marketing efforts
When premature entry into the marketplace causes the failure of a new venture, it can be termed
poor timing
Which of the following costs do not add to the cost of franchising?
prepaid utility bill
Rapid technological advances in many industries cause a concern for in new venture development.
rapid product obsolescence
All of the following are characteristics of a creative climate except
restricted communication with outsiders.
Which of the following is not critical to a product's success?
size
SBIC stands for the
small-business investment companies
Sales growth is a critical factor in the
start up phase
What is not a factor when looking at the condition of the inventory?
suppliers
Which of the following can help speed up the idea process?
taking breaks while working
Evaluating franchise opportunities include finding out more about all of the following except
the franchise location
When should a potential franchisee receive the FDD (Franchise Disclosure Document)?
at least ten days before signing a contract or paying any money
Independence, autonomy, and ______ are the major driving forces behind lifestyle ventures.
control
Shifts in consumer tastes and attitudes are an example of
industry and market changes
A common human resource problem is
inflated owner ego
Many inventions and innovations are a result of inventors seeing new and different relationships among objects, processes, materials, technologies, and people.
true
Pricing becomes less of a concern when customers become aware of a product's unique characteristics that are superior to the competition.
true
Which of the following statements is true with regards to creativity?
People's process will remain the same, but their approach will change.
When this asset is purchased, the buyer should be sure to deduct those that they are deemed uncollectible.
accounts receivable
Which of the following is a type of equity financing?
common stock
What criteria must be met in the design methodology approach?
concept feasibility
Managerial problems include which of the following?
concept of team approach
When starting a business, which of the following sources of financing are least likely to be used?
insurance companies
Sophisticated investors are wealthy individuals who invest more or less regularly in new and/or early- and late-stage ventures.
true
Many entrepreneurs of new ventures lack
a unique angle for the venture