mgmt 375 test 1

d. informational website.

An Internet site designed to introduce and explain a business to others is known as a Select one: a. e-commerce website. b. business-to-business website. c. business-to-consumer website. d. informational website.

c. licensing

For part-time businesses, ________ refers to the documented permission from the government to run a business and may be required for certain professions such as beauticians or home-based day-care providers. Select one: a. registration b. aggrandizing c. licensing d. zoning

a. design thinking

A customer-focused approach using interviews, observation, and exercises to create products and services that provide demonstrated evidence of solving customers' problems refers to Select one: a. design thinking. b. entrepreneurial alertness. c. retail arbitrage. d. A/B testing.

a. stand retailing.

One of the most ancient forms of small business is Select one: a. stand retailing. b. door-to-door selling. c. home parties. d. consignment.

b. the preferred source of funding is the owner's own money rather than other people's money.

Small businesses differ from high-growth ventures in that in small businesses Select one: a. the focus is on effectiveness rather than efficiency. b. the preferred source of funding is the owner's own money rather than other people's money. c. the delegation of responsibilities is easy and necessary rather than difficult. d. the metastrategy is for novelty rather than imitation.

c. Registration

________ refers to information provided to the government concerning the existence of, name of, nature of, and contact information for one's business. Select one: a. Licensing b. Variance c. Registration d. Permanence

c. in business incubators

Eighty-seven percent of start-ups that begin ________ are still in operation five years later. Select one: a. from a mentoring program b. with two or more founders c. in business incubators d. with a detailed start-up budget

b. substitute.

In the SCAMPER tool, "S" stands for Select one: a. strategize. b. substitute. c. submit. d. solicit.

a. finding any inefficiencies, unnoticed opportunities, waste, and mismanagement

Which of the following is the primary goal for performing due diligence? Select one: a. finding any inefficiencies, unnoticed opportunities, waste, and mismanagement b. conducting extensive interviews with the sellers of the business c. identifying the potential competitors of the company d. studying the competitive strategies of the company

a. an accelerator

This privately owned organization provides financial, technical, and managerial help to start-up businesses, and take an equity stake in your business in return for a small amount of your stock. Select one: a. an accelerator b. a franchise c. a spin-off d. an incubator

b. Conduct extensive interviews with the sellers of the business.

Which of the following is the first step for performing due diligence? Select one: a. Study the financial reports and other records of the business. b. Conduct extensive interviews with the sellers of the business. c. Obtain sufficient capital to purchase and operate the business. d. Make a personal examination of the site (or sites) of the business.

d. search engine optimization

When you design a website so that search engines like Google, Bing, and Yahoo! are likely to rank your site high in the results list, you are using the free technique of Select one: a. reciprocal linkage b. multichannel marketing c. RSS feed d. search engine optimization

c. networking

Which of the following is an excellent way to find businesses for sale? Select one: a. bankruptcy notices b. local community centers c. networking d. universities

a. moonlighting.

Working on one's own part-time business after a regular job is referred to as Select one: a. moonlighting. b. delegating. c. outsourcing. d. licensing.

d. to be received in the future.

Discounted cash flows have been reduced in value because they are Select one: a. minimize the risk of failure. b. helpful in avoiding taxes. c. obligations. d. to be received in the future.

b. start small but are intended to grow rapidly.

High-growth ventures Select one: a. use imitation as their metastrategy. b. start small but are intended to grow rapidly. c. grow only when necessary. d. focus on efficiency.

a. main street businesses.

Lifestyle firms, traditional small businesses, and high-performing small businesses are often called Select one: a. main street businesses. b. Wall Street businesses. c. high-growth ventures. d. universal businesses.

creative destruction

Mandarin In Town, a Chinese restaurant, opened recently in Burnsville, Minnesota. People from all over the town flocked to Mandarin to find out how good it was. This gave a big boost to the restaurant's initial business, but it caused the other restaurants in the area to lose business temporarily. The way in which Mandarin in Town hurt existing restaurants in Burnsville is an example of a. creative destruction. b. service distortion. c. innovative disruption. d. crowdsourcing.

d. leveraging contingencies.

The practice of and ability to seize upon novel opportunities that become apparent during the conduct of business is known as Select one: a. bricolage. b. bootstrapping. c. causal reasoning. d. leveraging contingencies.

d. rearrange

Using paradoxes such as using stimulants to calm hyperactive children, to challenge old ways of thinking, refers to which of the following cues of the SCAMPER tool? Select one: a. modify b. substitute c. put to other use d. rearrange

a. revolving credit

When Naja opened her craft store, her yarn supplier allowed her to charge up to $1000 in merchandise with no set payment amounts due. Naja paid off the balance as she sold the yarn and was then able to order more yarn on credit, up to her $1000 limit. This arrangement is considered a form of Select one: a. revolving credit b. affordable loss c. bricolage d. due diligence

b. a bricolage

Which of the following is not an alternative for transferring or terminating a firm? Select one: a. a sell off b. a bricolage c. a pass off d. a workout

b. franchising

Which of the following is one of the ways to get into small business ownership? Select one: a. bricolage b. franchising c. strategic partnerships d. bootstrapping

b. high margins

Which of the following provides a buffer for the mistakes made by a start-up business? Select one: a. industry experience b. high margins c. outside investment d. a detailed start-up budget

a. In most cases, a single inheritance is preferable to a gradual transfer.

Which of the following statements concerning the transfer of ownership of a family business is not true? Select one: a. In most cases, a single inheritance is preferable to a gradual transfer. b. The transfer of ownership is highly complex and unique to each family business. c. For family business succession plans, using specialists is helpful. d. Of greatest importance is determining who gets voting stock.

c. Key resource acquisitions

________ are the only way a sole proprietorship may be purchased. Select one: a. Buy-ins b. Takeovers c. Key resource acquisitions

c. Replacement value

________ is an estimate of what an identical asset would cost to be acquired and readied for service. Select one: a. Earnings multiple b. Book value c. Replacement value d. Net realizable value

d. A home retail business provides highly variable income.

Which of the following is true of home retail businesses? Select one: a. Home retail businesses are very difficult to set up. b. Home retail businesses require a very high initial capital to start up. c. A home retail business does not allow you to work away from your home. d. A home retail business provides highly variable income.

scale up

which of the following is not one of the seven key strategies? a. pivot b. scale up c. bird in the hand d. take it on the road

d. modify.

In the SCAMPER tool, "M" stands for Select one: a. manage. b. match. c. market. d. modify.

c. the Internet

Not so long ago, home businesses were strongly discouraged, if not outright banned in most towns and cities. Which of the answer options is the main reason this has changed over the years? Select one: a. multichannel marketing b. zoning laws c. the Internet d. licensing

d. due diligence.

The process of investigating a business to determine its value is called Select one: a. caveat emptor. b. bricolage. c. heuristics. d. due diligence.

b. comparable sales of other firms

Which of the following is commonly used to estimate the value of a business? Select one: a. affordable loss b. comparable sales of other firms c. leverage contingencies d. point of indifference

c. licensor.

A person or organization offering the rights to use a particular piece of intellectual property is referred to as the Select one: a. royaltor. b. franchisor. c. licensor. d. licensee.

a. Obtain sufficient capital to purchase and operate the business.

Which of the following is the last step for performing due diligence? Select one: a. Obtain sufficient capital to purchase and operate the business. b. Conduct extensive interviews with the sellers of the business. c. Interview customers and suppliers of the business. d. Study the financial reports and other records of the business.

A franchise is a prepackaged business bought, rented, or leased from a company

Which of the following statements is true of a franchise? a. Franchise is the international term for all small businesses. b. A franchise is a type of novelty organization. c. A franchise is an organization that provides loans to start small businesses. d. A franchise is a prepackaged business bought, rented, or leased from a company.

a. a blog.

A web page in which entries are posted in reverse chronological order is a known as Select one: a. a blog. b. an RSS feed. c. search engine optimization. d. a reciprocal link.

an email address of the company

According to the BRIE model, which of the following falls under the boundary category? a. the financial resources of a company b. the desire to start a business c. an email address of the company d. a product or service offered by the company

d. substitution.

According to the SCAMPER tool, a feature that allows customers to order directly from a website rather than visiting a store is an example of Select one: a. elimination. b. adaptation. c. magnification. d. substitution.

a. volatility

Andrew initially worked with a travel website for few months and then became self-employed by starting a martial arts school, where he taught karate to teenagers. After a year, he closed the school and joined an advertising firm. After two years, he quit the advertising firm and became self-employed as a freelance music composer. Which of the following terms indicates the changes in Andrew's employment structure? Select one: a. volatility b. hybrid entrepreneurship c. pop-up business d. episodic business

c. multichannel marketing

Cathy has created a website for her shop of homemade chocolates and scented candles. Apart from traditional retailing, she sends emails to the people in her neighborhood. She also informs customers about various promotional offers through pamphlets. Which of the following techniques best describes Cathy's overall marketing method? Select one: a. embedded marketing b. digital marketing c. multichannel marketing d. word-of-mouth marketing

d. Positively reinforce ideas.

Gabriel has a product idea of a device which he believes will help people manage their daily chores, hence making their lives easier. He is unsure if the device is actually a feasible product but shares the idea with his boss and coworkers anyway. Gabriel is positive his device will get a fair review. He has offered other ideas in the past and one was now a viable product for the company. Which of the four ideas for making a creative business culture best describes Gabriel's company? Select one: a. Never rest on your laurels. b. Get a room with a view. c. Look to unlikely sources of opportunities. d. Positively reinforce ideas.

d. the limitation of growth is dictated by market response rather than the owner's loss of control.

High-growth ventures differ from small businesses in that in high-growth ventures a. the focus is on efficiency rather than effectiveness. b. the preferred source of funding is the owner's own money rather than other people's money. c. the human resource system is personalized rather than professionalized. d. the limitation of growth is dictated by market response rather than the owner's loss of control.

d. using the first good idea as a business opportunity.

In an attempt to become more innovative, a major pitfall that business owners are most likely to become victim to is Select one: a. judging ideas slowly. b. asking for support after failing the first time. c. obeying all the rules to get investors. d. using the first good idea as a business opportunity.

b. licensee.

The firm that obtains the rights to use a particular piece of intellectual property is referred to as the Select one: a. franchisee. b. licensee. c. obligor. d. licensor.

a. implying that a firm is a full-time one when it is only part time.

The most typical form of aggrandizement in part-time businesses is Select one: a. implying that a firm is a full-time one when it is only part time. b. creating a positive impression among one's employers' customers. c. working on own part-time business after regular job. d. finding a low-cost or no-cost way to do something.

d. a person who owns or starts an organization, such as a business.

The text defines an entrepreneur as Select one: a. a person who purchases an existing business. b. working for yourself. c. characterized by being different or new. d. a person who owns or starts an organization, such as a business.

c. combine

When a bookstore starts to sell videos, music, and coffee as well, it uses which of the following elements of the SCAMPER tool? Select one: a. rearrange b. adapt c. combine d. substitute

d. the idea and decision were simultaneous (combined)

When a sample of entrepreneurs were asked whether the decision or desire to start a business or the business idea came first or if they combined the two, the majority of respondents replied Select one: a. the business idea came first (effectual) b. the decision to start a business came first (effectual) c. the business idea came first (causal) d. the idea and decision were simultaneous (combined)

a. Each type of customer is a customer segment.

When developing the customer segments of your business canvas model, which of the following statements is true? Select one: a. Each type of customer is a customer segment. b. There will be one canvas encompassing all customer segments. c. All segments will have the same problem and need a viable solution. d. You must satisfy all customer segments.

d. B2B manufacturing

When looking at e-commerce's percentage of total sales, the largest percentage comes from this industry. Select one: a. B2C real estate, rental, leasing b. B2C retail trade c. B2B merchant wholesale trade d. B2B manufacturing

c. pilot testing

Which of the following actions is performed during the plan step of the entrepreneurial process? Select one: a. feasibility analysis b. customer development processes c. pilot testing d. revising your planning approach Feedback The correct answer is: pilot testing

c. typically has sales of $25,000 a year or less

Which of the following is a characteristic of a lifestyle firm? Select one: a. starts small, rapidly grows to a big business b. represents about 20 percent of all businesses c. typically has sales of $25,000 a year or less d. aims for growth rates of 25 percent or more a year

a. The cost of entry and exit is low.

Which of the following is a reason why most new businesses start on a part-time basis? Select one: a. The cost of entry and exit is low. b. There is lack of volatility. c. The window of opportunity is always open. d. The part-time workforce is dependable.

intention

Which of the following is the most frequently occurring element of the BRIE model? a. intention b. boundary c. exchange d. resources

b. Pop-up businesses are for individual entrepreneurs only.

Which of the following statements about pop-up businesses is not true? Select one: a. Pop-ups must be special, distinct from other permanent businesses. b. Pop-up businesses are for individual entrepreneurs only. c. Pop-ups exist for only a short time—a few hours, a day, or a few weeks. d. Pop-ups do not have a fixed place of business

a. Professional managers are easy to find.

Which of the following statements about professional management is not true? Select one: a. Professional managers are easy to find. b. Professional management is not an issue of education, titles, or credentials. c. A good place to look for a professional manager is in experienced managers within your industry. d. A professional manager uses a systematic approach to analyzing and solving business problems.

Traditional small businesses

________ are the smallest full-time business. a. High-performing small businesses b. Traditional small businesses c. High-growth ventures d. Lifestyle businesses

to continue a family tradition

Which of the following is a reward that is rarely mentioned by entrepreneurs? a. to have a chance to build great wealth b. to have greater flexibility for personal and family life c. to continue a family tradition d. to develop an idea for a product

c. Royalty

________ is a payment to a licensor based on the number or value of licensed items sold. Select one: a. Retail arbitrage b. Freemium c. Royalty d. Conversion rate

c. Cannibalizing

________ means taking business away from one's employer. Select one: a. Covenant b. Licensing c. Cannibalizing d. Aggrandizin

a. starts small and stays small

Which of the following is true of a part-time firm? Select one: a. starts small and stays small b. has continuous growth c. success is defined by annual profits of $1,000,000 d. aims for growth rates of 25 percent or more a year

new markets

Kim found a niche lifestyle business by purchasing used knitting and crochet books from local thrift shops and reselling them on eBay. While American knitters tended to work from online patterns, knitters in other countries still relied on patterns from books. eBay handles all the headaches of shipping outside the U.S., making it easy for Kim to sell her books for a tidy profit. This scenario exhibits which facet of how small businesses are important to our economy? a. new ideas b. new opportunities c. new markets d. new jobs

d. The incubation step involves putting the problem on the back burner.

When using a four step process for organizing creative thinking, which of the following statements is true of the incubation step of a creative thought? Select one: a. The incubation step involves exploring the problem or opportunity in all directions. b. The incubation step involves the flow of ideas. c. The incubation step involves the testing of the idea. d. The incubation step involves putting the problem on the back burner.

b. The idea cannot be economically made into a product or service.

Which of the following is a traditional problem facing new ideas? Select one: a. The product or service appeals to a market larger than the entrepreneur expected. b. The idea cannot be economically made into a product or service. c. There are too many people involved in making the idea into a business. d. The local/state federal regulations are too strict to follow.

b. It allows entrepreneurs to notice things that have been overlooked.

Which of the following is true of entrepreneurial alertness? Select one: a. It allows entrepreneurs to launch a formal search for opportunities. b. It allows entrepreneurs to notice things that have been overlooked. c. It gives entrepreneurs the experience required to start a small business. d. It is an approach that allows entrepreneurs to do more or less what others do.

c. Small businesses consider sales as more important than marketing.

Which of the following statements is true of a small business? Select one: a. The preferred funding source for a small business is other people's money. b. When facing bankruptcy, a small business is likely to sell more rather than cut costs. c. Small businesses consider sales as more important than marketing. d. For a small business, the focus is more on effectiveness than on efficiency.

b. Offering a new idea in a meeting and hearing, "The boss will never go for it," and "Yes, but..." they have fallen prey to the failing to act pitfall.

Of the following statements concerning the five major pitfalls business owners can fall into when trying to become more innovative; which statement is not true? Select one: a. If a problem does not stay solved, the entrepreneur may have fallen victim to the pitfall of identifying the wrong problem. b. Offering a new idea in a meeting and hearing, "The boss will never go for it," and "Yes, but..." they have fallen prey to the failing to act pitfall. c. Trying to solve everyone's problems is tiring out the new entrepreneur, they have fallen victim to the pitfall of obeying rules that do not exist. d. A worker suggests a new time saving process but the entrepreneur brushes it aside as silly, falling victim to the pitfall of judging ideas too quickly.

d. The factor that can be used to make a product different from that of competitors' products

Which of the following is the idea trigger for the magnify cue of the SCAMPER tool? Select one: a. The opportunities that come as a result of replacing things that already exist b. The separate products, services, or whole businesses that can be put together to create another distinct business c. The products or services that can be imitated from other industries or fields d. The factor that can be used to make a product different from that of competitors' products

d. It should include an online website editor so you can make changes to your site without buying web-authoring software.

Which of the following is true about a hosting package for an information site? Select one: a. It should include at least one terabyte of traffic a month. b. It should provide at least 20 web pages of space to tell your story. c. It should include at least ten email accounts using your domain name. d. It should include an online website editor so you can make changes to your site without buying web-authoring software.

b. The ability to do the work away from home and employer minimizes potential conflicts.

Which of the following is true with regard to home retail? Select one: a. The disadvantages of home businesses include the slow speed and difficulty of setup. b. The ability to do the work away from home and employer minimizes potential conflicts. c. The advantage of home retail is that it provides a high steady income. d. The high cost of getting started is one of the drawbacks of home retail.

c. offers jobs to people with atypical work histories

In terms of new jobs, which of the following is true of a small business? Select one: a. does not employ people looking for part-time work b. of no importance to existing jobs c. offers jobs to people with atypical work histories d. pays taxes on behalf of the people it hires

the office in which John works

John owns a small business that does computer servicing. Which of the following would represent boundary as mentioned in the BRIE model in John's computer servicing business? a. the employees that work under John b. the office in which John works c. the money earned by John from the business d. the desire to expand the business to writing software

d. IDEO screen.

One of the quickest and simplest ways to screen an idea for business potential is through the Select one: a. use of a pilot test. b. business model canvas. c. feasibility study. d. IDEO screen.

the corridor principle

One of the seven key strategies of the entrepreneurial way is pivot, also called a. perseverence. b. crowdsourcing. c. effectuation. d. the corridor principle.

d. experience of the founders.

Research into the indicators of successful start-ups shows that one of the best predictors of success is the level of Select one: a. time committed to the new business by the founders. b. demand for the new product or service. c. funding obtained by the owners. d. experience of the founders.

b. incremental strategy.

Taking an idea and offering a way to do something slightly better than it is done presently refers to a Select one: a. imitative strategy. b. incremental strategy. c. design thinking strategy. d. radical innovative strategy.

a. flexibility rewards.

The ability of business owners to structure their lives in the way that best suits their needs refers to Select one: a. flexibility rewards. b. family rewards. c. growth rewards. d. wealth rewards.

a. closing the sale.

The fundamental success factor in door-to-door selling is Select one: a. closing the sale. b. having a location with enough foot traffic. c. approaching a "high-rent" district. d. having a perishable product for sale.

d. reverse

An auction in which the low bid gets the business or wins is known as a ________ auction. Select one: a. reserve b. buyout c. forward d. reverse

c. spin-off

The vast majority of start-up businesses are ________ enterprises—simply creating another occurrence of a common business. Select one: a. "me-too" b. bootstrapping c. spin-off d. heuristic

a. effectuation model of entrepreneurship.

When an entrepreneur starts with what they have—their skills, knowledge, and networks, and looks for needs they can meet by using what they have—the entrepreneur is using the Select one: a. effectuation model of entrepreneurship. b. causal model of entrepreneurship. c. incremental strategy. d. entrepreneurial alertness strategy.

a. redesign the work environment

Which of the following is an entrepreneur most likely to implement to keep his company in an innovative frame of mind? Select one: a. redesign the work environment b. increase the IP protection on the products or services c. simply sell the products or services d. read journals related to the area of expertise

d. immediate cash flows

Which of the following is most likely to be achieved as the result of starting a business with established customers? Select one: a. increased equity b. synergy c. higher profit margins d. immediate cash flows

a. a "clean slate"

Which of the following is most likely to be an advantage of a brand new start-up? Select one: a. a "clean slate" b. name recognition c. positive cash flow d. access to revolving credit

d. a franchise

Which of the following is not a common form of part-time businesses in the United States? Select one: a. ecommerce b. a pop-up business c. a mobile office d. a franchise

d. hiring the wrong people

Which of the following is not one of the five pitfalls that hinder innovation? Select one: a. judging ideas too quickly b. obeying rules that do not exist c. failing to act d. hiring the wrong people

c. start-up.

A new business that has begun from scratch is called a Select one: a. BASIC. b. franchise. c. start-up. d. heuristic. Feedback The correct answer is: start-up.

c. net realizable value.

The amount for which an asset would sell, less the costs of selling the asset is called Select one: a. book value. b. replacement value. c. net realizable value. d. earnings multiple.

c. Charge-back

________ refers to a fee the service levels on a person or a firm for any variety of problems related to the sale. Select one: a. Cost to start-up b. Business-to-consumer c. Charge-back d. Aggrandizing

b. A pilot test

________ refers to a preliminary run of a business, sales effort, program, or website with the goal of assessing how well the overall approach works and what problems it might have. Select one: a. A conversion rate b. A pilot test c. An incubation period d. Commercialization

b. volatility.

All of the following are major concerns of moonlighting except Select one: a. conflict of interest. b. volatility. c. cannibalizing sales. d. poisoning the well.

a. moonlighting.

Cannibalizing is one of the major concerns when Select one: a. moonlighting. b. aggrandizing. c. outsourcing. d. multichannel marketing.

crowdfunding

Financing a business online through the collective involvement of others who provide donations, loans, or investments is referred to as a. crowdfunding. b. bootstrapping. c. microfinancing. d. crowdsourcing.

c. to assess if a business idea can be profitably brought to market.

The goal of a feasibility study is Select one: a. to create additional value for customers through great products or services. b. to create outlets for employees to bring out new ideas. c. to assess if a business idea can be profitably brought to market. d. to assess how well a preliminary run of a business works and what problems it might have.

b. affordable loss.

The minimum possible expenditure of capital and other resources in order to bring an entrepreneurial idea to market is known as Select one: a. leverage contingencies. b. affordable loss. c. bootstrapping. d. lean business practices.

b. Allowing each family member who does wish to enter the business to find out and do those functions and activities that he or she does best.

Which of the following would avoid intra-family strife when the family business is passed down to the next generation? Select one: a. Providing each member of the family business with the opportunity to obtain education and experience within the business. b. Allowing each family member who does wish to enter the business to find out and do those functions and activities that he or she does best. c. Being certain that all family members know and accept that they must join the business to continue the family business. d. Always assume that the leadership of the business must come from within the family.

c. Time management

________ is the crucial skill needed for juggling your part-time business and the rest of your life. Select one: a. Delegation b. Permanence c. Time management d. Outsourcing

d. Poisoning the well

________ refers to creating a negative impression among one's employers' customers. Select one: a. Permanence b. Cannibalizing c. Aggrandizing d. Poisoning the well

c. High-performing small businesses

________ tend to level off after success defined by sales of between $100,000 and $1,000,000, depending on the industry. Select one: a. Lifestyle firms b. Traditional small businesses c. High-performing small businesses d. High-growth ventures

d. name recognition

Chris, Ajay, Hasan, and Martin all currently work at a fishing rod manufacturer, all in different areas of the company and all good friends and fishing buddies. Hasan has a new concept for rod construction and Martin has perfected a super-strong combination of epoxy resins and fiberglass which make the new rod superior to anything currently on the market. All four friends use one of the new rods and have perfected its construction over a few years. They believe they have a revolutionary product and want to start their business manufacturing the rods. They have everything they will need to begin, including enough money to start the business and get by until the business starts providing positive cash flows. Materials are relatively inexpensive and they have a large stockpile already. The friends already own all the equipment they will need and have a good location secured. They also have trained employees ready to join their business once it is up and running. Which of the following disadvantages of start-ups may the friends run up against in trying to launch their new fishing rod company? Select one: a. lack of revolving credit b. no rules or culture c. time to perfect the process d. name recognition

b. when you need to gain basic business experience

For new entrepreneurs, which of the following would be a good reason to undertake a part-time business first before a full-time one? Select one: a. when you are certain you can meet the demands of running a business b. when you need to gain basic business experience c. when the window of opportunity will remain wide open d. when you have a detailed business plan and have raised the necessary capital

a. competitive advantage

The product/service component of the feasibility study typically includes which of the following aspects? Select one: a. competitive advantage b. trends related to the product or service c. legal issues d. stage of development

d. earnings multiple ratio.

The ratio of the value of a firm to its annual earnings is called the Select one: a. net realizable value ratio. b. BASIC ratio. c. retained earnings ratio. d. earnings multiple ratio.

b. solution

When building a business model canvas, the ________ is where your offering goes—how you plan to solve the pains or create the gains for your customers. Select one: a. value proposition b. solution c. channels d. customer segment

a. "It is very difficult to place a value on an existing company. How will you know if they are asking a fair

Your friend Sarah tells you she is thinking about buying the dog grooming business you both take your dogs to, as the owner just announced it was for sale. The groomer is always busy and it is best to have a standing monthly appointment, as the shop is often booked solid. The groomer is currently open limited hours as the owner is wishing to get out of the business, and Sarah thinks services (and profits) can be improved with longer hours. As Sarah's friend, what should your response be? Select one: a. "It is very difficult to place a value on an existing company. How will you know if they are asking a fair price?" b. "There may not be enough demand for dog grooming to keep the place open." c. "Remember, you won't have any cash coming in initially, have you saved some money to live on?" d. "You know, it is more expensive to buy an existing business, than it is to just start your own business."

a. financial.

When deciding whether to take a business from part-time to full-time, the key question is usually Select one: a. financial. b. time management. c. based on customer approval. d. family approval.

It often grows through multiple locations

Which of the following is true of a high-performing small business? a. It often grows through multiple locations. b. It aims to achieve growth rates of 25 percent or more a year. c. It has sales of more than $1 million. d. It has low levels of professionalization.

income rewards

Which of the following rewards refer to the money made from owning a business? a. growth rewards b. flexibility rewards c. income rewards d. performance rewards

d. IDEO screen.

Joe has an idea for a new mobile restaurant business. He wants to convert an antique bus into a sit-down restaurant with a service window allowing him to serve people within the bus and walk-ups who want to get their food and take it home. Joe takes his idea and looks at the market desirability, the technical feasibility, and the business viability. Joe is performing a Select one: a. pilot test. b. business model canvas. c. classic feasibility study. d. IDEO screen.

a traditional small business

sven opening his own business servicing private swimming pools. Sven worked hard to build up his customer base, often performing services on last-minute notice, or even on holidays and weekends. Now, Sven has a comfortable number of routine services he provides for his customers and his business is profitable enough to support himself and his family. Which type of business does Sven likely own? a. a lifestyle business b. a traditional small business c. a high-performing small business d. a unicorn

a. it provides legitimacy.

Securing outside investment accomplishes two things: it ensures your business will be critically examined and Select one: a. it provides legitimacy. b. it reduces or eliminates the risk of product failure. c. it produces synergy. d. it helps avoid unnecessary spending.

b. The metastrategy for a high-growth venture is novelty.

Which of the following statements is true of a high-growth venture? Select one: a. A high-growth venture considers sales as more important than marketing. b. The metastrategy for a high-growth venture is novelty. c. A high-growth venture focuses more on efficiency than on effectiveness. d. The loss of control is what limits growth in a high-growth venture.

c. You should answer the IDEO screen questions with only a few words.

Which of the following statements is true when referring to the IDEO screen? Select one: a. The IDEO screen should be the final step in the screening process. b. The IDEO screen does not rule out unprofitable ideas. c. You should answer the IDEO screen questions with only a few words. d. The IDEO screen is the most comprehensive screening tool.

bootstrapping

Anna helps brides-to-be choose wedding gowns that best suit their requirements and budget, and also helps them with where they can find the right dress. She has made her home her virtual office; she does not require external financing. Anna is using ________ to run her small business a. crowdfunding b. franchising c. bootstrapping d. crowdsourcing

a. imitative in nature.

Small businesses are usually Select one: a. imitative in nature. b. characterized by the novelty of their products. c. the same as high-growth ventures. d. not affected by market fluctuations.

d. writing a business plan

The future action plan component of the classic feasibility study usually includes which of the following elements? Select one: a. trends related to the product or service b. competitive advantage c. legal restrictions and rights d. writing a business plan

a. network marketing.

An approach to selling in which the salesperson recruits customers to become distributors of the product or service to others is known as Select one: a. network marketing. b. multichannel marketing. c. licensing. d. cannibalizing.

scale back

Kendra is saving her money because she dreams of opening a doggy day-care and spa. For now, she has a brisk dog-walking service and provides a few dog-grooming tasks, such as brushing and toenail clips. Kendra is following which of the seven key strategies of the entrepreneurial way? a. bird in the hand b. scale back c. perseverance d. take it on the road

b. reciprocal link.

When your website displays a link to another website and that website displays a similar link to yours, this is called a Select one: a. sponsored link. b. reciprocal link. c. multichannel link. d. charge-back.