Small Bus Final

The three ways to identify an opportunity include ______

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

The facilities and equipment that a business needs should be described in the ______ section of its business plan

operations plan

According to John Stossel, established firms like to throw up bottlenecks to discourage startups from being successful (T/F)

True

According to the textbook, the executive summary should be the last section of the business plan to be written (T/F)

True

Profit Margin is determined by dividing Net Income/ Net Sales (T/F)

True

The five competitive forces model is a framework for understanding the structure of an industry (T/F)

True

A _______ is a firm's plan or recipe for how it creates, delivers, and captures value for its stakeholders

business model

A firm's ______ is a plan for how it competes, uses its resources, structures its relationships, interfaces with customers, and creates value to sustain itself on the basis of the value it creates

business model

Southwest airlines is an example of a _____ business model

low end

A(n)____________ industry is an industry that is experiencing slow or no increase in demand

mature

A(n) ___________ in a business plan context, is a noteworthy event in the past of 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

Susan Howard owns a seafood restaurant in Naples, FL. She is currently owed $21,000 by a corporation that she catered a series of meetings for and $3,000 on an overdue account. Amanda has $24,000 in

Accounts receivable

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

Airbnb

GasBuddy and GasPriceWatch.com are companies started to help consumers save money on gas. Which environmental trend is most likely to have provided the impetus for the creation of these companies?

Economic forces

According the the video featuring John Stossel and Milton Friedman, countries have wealth because of democracy and resources (T/F)

False

COGS/ Sales should increase every year showing that the company is managing its direct costs for efficiently (T/F)

False

Hong Kong's citizens are currently rioting because Japan is threatening to impose its dictatorial policies on them (T/F)

False

India is very business startup friendly (T/F)

False

_________ is a company's ability to meet its short term financial obligations

Liquidity

______ is (are) used to generate a number of ideas quickly

brainstorming

A(n) ___________ is a written document that describes all the aspects of a business venture in a concise manner

business plan

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

churn

As new products that are better than the existing generation of products are introduced, sales normally increase because the new products provide consumers increased value or worth. This process, which is called ________, stimulates economic activity, which is a good thing for the economy.

creative destruction

According to the textbook, Nucor in steel, Jetblue in airlines, and Cirque du Soleil in circuses are examples of entrepreneurial firms who are exploiting opportunities in ________ industries

declining

According to the textbook, the three different types of competitors a business will face are

direct, indirect, and future

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

fragmented

A firm's ________ reflects the results of its operation over a specified period and shows whether it is making a profit or is experiencing a loss

income statement

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

indirect

A(n) _______ is a group of firms producing a similar product or service. A firm's _______ is the limited portion of the industry that it goes after or to which it wants to appeal

industry; target market

According to the example provided in Chapter 5, www.1800contacts.com possesses a nontraditional barrier to entry referred to as

internet domain name

A business plan is important as it forces the founding team to systematically think through every aspect of their new ventures and ________

it communicates the merits of a new venture to outsiders, such as investors and bankers

A _______ is a single web page that typically provides direct sales copy, like "click here to buy a Hawaiian vacation"

landing page

A(n) _______ is a favorable set of circumstances that creates the need for a new product, service, or business. A(n) _____ is a thought, an impression, or a notion

opportunity; idea

the two general categories of business models are _________ and _________

ordinary; disruptive

According to the textbook, the 4 characteristics of successful entrepreneurs are...

passion for the business, tenacity despite failure, product/customer focus, and execution intelligence

If a new firm was launched to help businesses comply with the Affordable Care Act, that opportunity was created by ______

political changes and regulatory changes

According to the textbook, the five competitive forces included in the Five Forces model determine the average

rate of return of the firms in an industry

The term "window of opportunity," as discussed in Chapter 2, is a metaphor that describes the time period in which a firm can:

realistically enter a new market

Three commonly utilized methods for determining product/service demand are _________

talking face to face with potential customers; utilizing online tools, such as Google Adwords and landing pages; and library, internet and gumshoe research

Warby Parker, an online eyeglass company, took years to reach its sale's projections and is a good example of tenacity despite failure (T/F)

False

Which of the following firms disrupted their industry

Salesforce.com

An opportunity has the following four essential qualities __________

attractive; timely; durable; and anchored in a product, service, or business that creates or adds value for its buyer or end user

According to the textbook, the number one reason that people become entrepreneurs is to

be their own boss

A business's ___________ describes why it exists and what its business model is supposed to accomplish.

mission statement

Which of the following is the correct sequence for the 4 steps in the entrepreneurial process?

1) deciding to become an entrepreneur 2) developing successful business ideas 3) moving from an idea to an entrepreneurial firm 4) managing the growing entrepreneurial firm

Value driven businesses focus on minimizing costs wherever possible (T/F)

False

__________ is the process of determining whether a business idea is viable

Feasibility analysis

___________ business models are ones that do not fit the profile of usual business models, and are impactful enough that they change the way business is conducted in an industry or an important niche within an industry

disruptive

Industries that sell products to seniors, such as the eyeglass industry and the hearing aid industry, are benefiting from the aging of the population, which is an important _________ trend

environmental

According to the textbook, in many instances an investor will first ask for a copy of a firm's ______ and will request a copy of the full business plan only if that portion of the plan is sufficiently convincing

executive summary

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

) If a startup pioneers an industry or a new concept within an industry, the name recognition the startup establishes may create a formidable nontraditional barrier to entry referred to as a(n):

first mover advantage

____________ costs are commonly referred to as overhead. They are unaffected by the volume of goods or services produced. _________ costs go up and down the the volume of goods or services provided

fixed; variable

Advertising, commissions, download fees, licensing, and product sale are examples of

revenue streams

math the financial objective with its correct definition

stability: the overall health of the financial structure of the firm, particularly as it relates to its debt to equity ratio

Kaitlyn Harris is opening up a women's fashion boutique that will focus on professional women that are 18-30 years old. The age range of women that Kaitlyn plans to focus on is referred to as her ________ market.

target

The Savvy Entrepreneurial Firm feature in Chapter 6 focuses on 3 companies: Songkick, Grubhub, and Instagram. The overarching point of the feature is

the degree to which business plans pan out as their founders envisioned varies

A prototype is ________

the first physical depiction of a new product

Which of porter's 5 forces is more closely associated with the concept "barrier to entry"?

threat of new entrants

Which of the following was not identified as one of the four main financial objectives of a firm

timeliness (profitability, stability, liquidity, efficiency (PLES))

According to entrepreneur, Bill Gross of IdeaLab, what two factors contribute most in start up success?

timing and team

Jamie Finch is crafting the business model for her fashion design firm. She just completed the section that describes how her firm plans to compete relative to her rivals. Jamie just completed the ________ portion of her business model template.

value proposition