MGT 385 Chapter 1-3 review

Realistically, income statements projections _______ in the first few months of operations.

A. Show losses

___________ is what a business owns.

A. assets

what is business definition + competitive advantage?

A. competitive strategy

Potential investors such as bankers will often refuse to see an entrepreneur who does not have a __________

A. complete business plan

__________ is the cost of selling one unit of a product.

A. cost of goods sold

Telemarketing is a form of what?

A. direct marketing

A group of people who would be interested in buying a given product or service is referred to as a ________.

A. market

What is concise communication of your strategy including your business definition, purpose, and your competitive advantage.

A. mission statement

Economist Joel Schumpeter emphasized innovation is the key to entrepreneurship. Of the following which is a basic way to create a new business?

A. use new technology to produce a new product

The U.S economy is a free enterprise system, referred to as a "free trade system", because it is based on _______

A. voluntary exchange

What is a company's plan to create revenue and make a profit from operations?

B. Business model

Cashflow ________ be negative before equity and debt injections and _________ be negative after them.

B. can, cannot

A(n) __________ is how Entrepreneurs view problems.

B. opportunity

Which factor below is not one of the six factors upon which a competitive advantage can be based?

B. opportunity

What is the sign that an entrepreneur has added value to resources being used?

B. profit

The projections in your business plan should be_________-

B. realistic and attainable

What are the four factors that form marketing mix?

D. product, price, promotion and place.

A "big" business is company that has more than ______ employees and sales of more than $________ million per year.

C. 500/$5 million

In the Business Model Canvas, there are _____ core building blocks that are intended to supply answers to critical questions.

C. 9

A(n) ________ exit strategy for entrepreneurial ventures is an IPO.

C. Alternative for a buyout plan

The _________ of an organization is built by making the beliefs, values, and behavioral norms explicit and intentional.

C. Culture

_______ is also called the free- market system.

C. capitalism

________ will guide the business operations and decisions when you start your business.

C. core beliefs

Calculate the ________ to help determine whether your business will be profitable.

C. economics of one unit

Total cost of goods sold per unit is represented how?

C. materials cost per unit + labor cost per unit

Which item below is not a competitive advantage?

C. offering free samples during a two week promotion

________ promotion through media outlets is a way of defining advertising.

C. paid

An element of business definition is not which of the following?

C. the acceptance

What does the Executive Summary contain?

D. All of the above.

Which section of the business plan should be written last?

D. Executive Summary

What could be a front line of defense against a poor idea?

D. business plan

what is a 30-second to a 2-minute summary of your business ?

D. elevator pitch

Creating a business plan can ensure that you_________.

D. figure out how to make your business work

When one is making an investment, one should always consider the :__________, which is the cost of your next-best investment.

D. opportunity cost

A person assuming the risk of organizing and managing a business for the sake of reducing stress from the *rat race" is an entrepreneur.

False

Recognizing an opportunity, evaluating it with critical thinking, building a team, and financing with money from credit cards are some of the seven rules for building a successful business.

False

You can use asset to determine the value of a business. This is a method that analyzes the underlying value of a business's sales and operating costs as a basis for negotiating a price.

False

You should find lenders or investors before writing a business plan.

False

the marketing mix of product, price, place, and packaging is the basis for the marketing plan.

False

A study to assist in making a go/no go decision based upon a close examination of product/service, market, industry, and financial data in a sufficient degree of detail to ensure confidence in the results is a feasibility analysis.

True

Independence, satisfaction , financial reward, self-esteem, and contributions to society are some benefits of becoming an entrepreneur.

True

One example of a free-enterprise system is the economy of the United States.

True

The key to raising capital is a business plan.

True