Entrepreneurial problem solving chapter 3
of the following, which is not associated with entrepreneurial tactics in market research?
in-person interviews
only major strategic decisions need to be supported through marketing research
false
the easiest way to avoid the pitfall of no commitment or dedication is to designate that the venture is a hobby or a whim
false
vertical analysis is the application of ratio analysis to the many sets of financial statements.
false
there are ___ steps for an entrepreneur to consider when creating a structured approach to a market plan.
five
in handling questionable costs, the cost in question is substituted first as a ___ and then as a ___
fixed cost; variable cost
capital budgeting is designed to show
how many projects, in total, should be selected
When a trademark becomes the name of a general group of products or services, the trademark protection may be lost because of
generic meaning
all of the following factors affect pricing strategies except
government mandates
in the simple linear regression analysis equation, Y = a + bx, b represents
the slope of the line
which of the following is not a common characteristic of financial statements?
they are complex
Anyone who violates an author's exclusive rights under a copyright is liable for infringement
true
the first step in creating an operating budget is to prepare the sales forecast.
true
who defined the corporation as "an artificial being, invisible, intangible, and existing only in contemplation of the law"
Justice John Marshall
Which is not included within balance sheet ratios?
cash
Which of the following influences the choice of marketing philosophy?
competitive pressure
Legal protection is granted to computer programs in what form?
copyright
a marketing information system compiles and organizes data relating to ______, revenue, and profit from the customer base
cost
Design patent protection lasts for _____ years
14
The patent process is not complex; neither does it require careful planning.
false
The set of assumptions on which financial projections are based have little meaning
false
The traditional accounting equation is: assets + liabilities =owner's equity
false
Trademark registration and search is not costly.
false
accounts receivable turnover measures the rate at which accounts receivable are being collected on a monthly basis
false
capital budgeting is used to help the entrepreneur plan for capital depreciation
false
capital budgeting is used to help the entrepreneur plan for capital depreciation.
false
The text discusses all of the following important guidelines to follow when putting the plan together except
impressing with excessive detail
competitive analysis, advertising plan, and pricing policy are all part of the
marketing segment
a patent gives the holder a temporary
monopoly
An indicator of the planning pitfall of "no commitment or dedication" is
no interest in researching the idea
in planning, there are a number of pitfalls that must be avoided. one of these is
not having a commitment
surveys do not include contact by
observation methods
which of the following is a critical factor to be considered in the management segment?
organizational structure
The day before the presentation, the entrepreneur should
practice the complete presentation by moving through each slide
A patent infringer can be liable for all ____ resulting from the infringement as well as for legal fees.
profits
which of the following is not a pitfall that should be addressed in planning a venture?
specific profit goals
For the author of creative material to obtain a copyright, the material must be in _____ form
tangible
which of the following falls under chapter 7 bankruptcy?
the debtor is relieved of obligations
in the simple linear regression analysis equation, Y=a + bx, Y represents
the dependent variable
for a manufacturing firm, the production budget represents
the number of units that must be produced in order to meet sales forecast
Entrepreneurs should be knowledgeable about certain legal concepts that affect their business venture.
true
If infringement can be proven in court, a monetary award may be given to the trademark holder.
true
a lack of demonstrated experience, no clear market niche, a failure to anticipate roadblocks, no realistic goals set, and a lack of commitment are pitfalls or common points of failure that occur before an entrepreneur ever gets a plan reviewed.
true
a summary gives a brief overview of what is to follow, helps put all of the information into perspective, and should be no longer than three pages.
true
an investment prospectus is the same as a business plan
true
every business at some point needs the services of an attorney
true
the two parts of a patent application are specification and claims
true
three primary legal forms of organization are the sole proprietorship, the partnership, and the corporation.
true
Specific forms of partnership include which of the following?
limited partnerships and limited liability partnerships
Which of these survey methods has the lowest response rate?
mail surveys
An indicator of the planning pitfall of "failure to anticipate roadblocks" is
making no recognition of future problems
what is skimming?
setting price to maximize profit
A "market niche" is a homogeneous group with common characteristics (i.e., all the people who have a need for a newly proposed product or service).
true
because of the competition for funding, an entrepreneur's business plan needs to capture the reader's interest right away by stating the uniqueness of the venture.
true
how many months of the year should be illustrated in the first pro forma income statement
twelve
entrepreneurs should be knowledgeable about certain legal concepts that affect their business venture.
true
marketing research involves the gathering of information about a particular market, followed by analysis of the information
true
one suggestion for helping to recall key examples, visual aids, and other details when presenting the business plan is to utilize key words in the outline
true
shopping goods are products that consumers take time to examine carefully and compare for quality and price.
true
the bankruptcy act was set up in order to provide assistance to both debtors and creditors
true
the first type of expense to be estimated when preparing an operating budget is cost of goods sold.
true
when using the internal rate of return method, the future cash flows are discounted at a rate that makes the net present value equal to
zero
copyrights have to be registered with the copyright office
false
the major purpose of a business plan is its utilization as a working document
false
how does death affect the duration of a corporation?
a corporation is unaffected by the death of a shareholder.
the completed business plan provides the entrepreneur with
a tool for communicating with financial sources
What percentage of issued patents is considered commercially valuable?
a very small percentage
one type of budget used by the entrepreneur is
an operating budget
the textbook recommends which of the following devices to help in the oral presentation of a business plan?
an outline
Which of the following are the two major variables needed to identify specific market segments?
demographic and benefit
inhibitors to marketing research include all of the following except
distribution
the last step in preparing the operating budget is to
estimate operating expenses.
The process of trademark registration is
expensive
Because of the _____ doctrine, it is sometimes difficult to establish infringement.
fair use
A consumer driven marketing philosophy often relies on direct selling.
false
An entrepreneur must graph at least two numbers: total sales and total expenses, when using the graphic approach for break-even analysis.
false
Chapter 7, chapter 9, and chapter 11 are the most common forms of bankruptcy.
false
patents eventually expire
true
which of the following is part of the marketing segment?
the competitive analysis
in preparing a business plan for oral presentation, the entrepreneur should scan the outline once or twice.
false
laws governing intellectual property rights include copyrights, trademarks, and leases
false
which of the following statements about a business plan is true?
it is the minimum document required by any financial source
financial information is important to entrepreneurs because
it pulls together all the information presented in other segments of the business
An indicator of the planning pitfall of "no realistic goals" is
lack of timetable to accomplish things
the business plan provides the details of the ____ potential of a business
market
which of the following is something an entrepreneur should not do when preparing for the oral presentation of a business plan?
memorize the presentation
_______ is the use of portable wireless devices to connect to the Internet.
mobile computing
to effectively pursue a patent violation, experts recommend that the entrepreneur
prepare a realistic budget for infringement
What is penetration pricing?
setting price to be below competition
comparing financial numbers in order to make decisions is referred to as:
ratio analysis
Copyrights may be expressed in all of the following except
records
the comprehensive business plan should be the result of
reflections on the direction of the venture
which of the following is the most common viewpoint in business plans?
the entrepreneur's viewpoint
of the following pricing models, which is not indicative of pricing in the social media age?
the growth stage model
to an entrepreneur, one of the benefits of a business plan is
the identification of critical risks
one of the easiest capital budgeting methods to understand is
the payback method
Which of the following describes advantages of the business plan for financial sources?
the plan identifies critical risks
according to the family life cycle, all of the following are identified as stages in consumer buying behavior except
family traditions
the cash flow does not come from
goods purchased on account
Which of the following statements about traditional marketing is not true
in traditional marketing, the role of a marketer is that of internal and external change agent.