STS 2500 Quiz 2

stand retailing

"Light a Candle" can be described as

mission statement analysis

Financial statements, in preforming due diligence, should include all the following EXCEPT a(n)

absence of initial name recognition

Which of the following is a disadvantage of a start-up?

The application of asset valuation methods to business valuation is similar to having an annuity

Which of the following statements about asset valuation methods is false?

the access to revolving credit line

All of the following are advantages of a start-up EXCEPT

the ability to make money to sustain the business

All of the following are challenges of being a part-time entrepreneur EXCEPT

high cost of getting started

All of the following are disadvantages of home retailing EXCEPT

how many others are already working with you?

All of the following are key things an influential person looks for in your business plan presentation EXCEPT

bootstrapping

All of the following are major concerns of moonlighting EXCEPT

depreciation is an arbitrary, but nonsystematic, method of transferring asset value to expense.

All of the following are major problems with using book value EXCEPT

When there is enough time and resources to get the entire business going

All of the following are situations in which it might make better sense to undertake a part-time business EXCEPT

they need to be built in places where there is less traffic

All of the following relate to "stand retail" EXCEPT

entry wedge

An opportunity that makes it possible for a new business to gain a foothold in a market refers to

Innovative strategy

An overall strategic approach in which a firm seeks to do something that is very different from that of what others in the industry are doing is called a(n)

Scale and scope

Identify the two market decisions that Amy and her friends need to make.

amounts and schedules for returns

If Connie gets her family and friends involved as investors, which of the following would be their concern or interest?

conflict of interests

If Elizabeth starts to take days off from work to staff the kiosk at the flea market, she may be facing

consignment stores

If Elizabeth wants to have a full-time sale with only part-time involvement, she should consider

characteristics of the business that give it an advantage over others in the industry

In SWOT, strengths are

mentoring programs

In ___, executive volunteers contribute their time and energy in assisting start-up and struggling small businesses as a public service.

Partners may provide capital, equipment, or advice.

In which way wil working with a partner reduce the risk of a start-up?

Doing a business plan

Nowadays, the conventional wisdom is that if you are serious about starting a business, you ought to start a business full time and prepare for it by

40

The classic business plan contains __ pages that include financials and appendixes.

involves reviewing and confirming the prestrategy decisions that define your firm and your goal for it.

The first step of the small business strategy planning process

an industry analysis

The first thing that Amy and her friends need to do to pursue their strategy is to perform

the earnings multiple

The ratio of the value of a firm to its annual earnings is called

customers; benefits

The second step of the small business strategy planning process is considering with

obtaining and maintaining sufficient cash

The single greatest hurdle to a successful start-up is

experience

The specific concept that leads to a start-up business usually comes from the ___ of the person starting the business.

screening plan

Which of the following gives the basic overview of a firm and a detailed look at the financials?

Growth rate

Which of the following represents a business plan concern of silent partners/angel investors?

business incubator

A ___ is an organization that provides financial, technical, and managerial help to start-up a business.

Informational Web site

An internet site designed to introduce and explain a business to others is known as

B2B e-commerce is larger than B2C e-commerce

Identify the correct statement about B2B.

An RSS feed sends whatever Web material you specify to subscribers to that feed

Identify the correct statement about RSS feeds.

mission statements give the firm's major business goal, which can be stated quantitatively or qualitatively, but always with a time period

Identify the correct statement about the 5-M Model.

Developing a brief business plan for the acquisition

Identify the statement that is not a part of the steps which make up the process of due diligence.

The agreement does not require the franchisee to pay a fee for the right to enter into the business.

Identify the statement that is not essential for an agreement to constitute a franchise.

Difficulty in determining the worth of the business

If Tavanna were to buy an existing business, which of the following disadvantages should you point out?

the government and customers

The two key groups outside your business with whom you must deal with as part-time business owners are

incremental innovation

Using the degree of similarity, Amy's concept of laundromat with a workout space can be described as

learning

Value benefits can include all of the following EXCEPT

NAICS and SIC

What are the two major classification systems that code industries?

to provide supporting information that helps detail the key selling points of your plan

What is the goal of appendixes?

Zoning challenges

What is the greatest problem that home-based entrepreneurs face?

passionate customers

What types of customers are likely to generate more potential customers than any other type?

gross profit

Which of the following refers to funds left over after deducting the cost of goods sold?

R&D

Which of the following refers to the part of a business that is focused on creating new products or services and preparing new technologies, ideas, products, or services for the firm's market?

Competitive advantage

Which of the following refers to the particular way a firm implements customer benefits that keeps the firm ahead of other firms in the market?

Introduction, growth, maturity, decline, and death

Which of the following represent the five stages of industry life cycle?

Estimates suggest that a business plan may take anywhere from 10 to 20 hours or more if you are new to business

Which of the following statements about a business plan is false?

The more time and energy you spend preparing for a small-scale part-time business, the shorter it takes to make a profit

Which of the following statements about the key considerations for part-time small business start-ups is false?

Clean slate

Which of the following would you offer Tavanna as an advantage for starting a new business?

Strategy

__ is the idea and actions that explain how a firm will make its profits.

Scale; scope

__ refers to the size of the market whereas __ refers to its geographic range.

Asset

__ refers to something the business owns that has economic value or is expected to have economic value in the future.

Discounted cash flow

___ analysis is based on the concept that the longer you h ave to wait to receive money, the less valuable it is right now.

Intellectual property protection

___ represents a business plan concern of joint venture partners.

Registration

____ refers to information provdied to the government concerning the existence of, name of, nature of, and contact information for your business.

industry dynamics

Changes in competitors, sales and profits in an industry over time is called

imitative; innovative

Most small businesses are more __ than ___.

You give up control of marketing and operations

Tavanna brought with her a franchise business packet. She likes the idea but is unsure what might be its disadvantage?

heuristics

are the rules of thumb that are commonly used to estimate firm value in relation to some easily observable characteristic of the business.

Starting her business without any other founders to avoid conflict

Based on what you have learned from this class, which of the following should Tavanna NOT do to increase her chance of start-up success?

outsourcing

Contracting with people or companies outside your business to do work for your business refers to

credit

Cost benefits can come from all of the following EXCEPT

When trust is low and employees lack sills

Delegation does NOT make sense in which of the following situations?

Stand retailing

Full-time approaches include all of the following EXCEPT

consignment business.

Given that Tavanna has no inheritance possibility, all of the following are other options you could offer her for full-time business EXCEPT

Variance

Permission from a government organization to act differently than the laws state is known as

earn-outs

Purchases of existing businesses may occur through __ in which the business is bought over a period of time with money earned from the business.

net profit

The amount of money left after operating expenses are deducted for the business refers to

involves determining the best strategic direction and strategy for the firm

The fourth step of the small business strategy planning process

the to-do list

The key device for managing time for part-time business individuals is

250-500 words

The length of an executive summary should be

total population of people or firms to whom you plan to sell

The market refers to the

industry analysis

The tool appropriate for the third step of the small business strategy process to study the dynamics and trends of your industry is the

harvesting the business plan

A good marketing strategy focuses on all of the following ideas EXCEPT

franchise

A legal agreement that allows a business to be operated using the name and business procedures of another firm is referred to as a

Reciprocal link

A listed, live connection to a different Web site, which in turn displays a similar link to the first Web site is a(n)

executive summary

A one- to two-page overview of the business, its business model, market, expectations, and immediate goals represents a(n)

proprietary technology

A product or service that is kept as a trade secret or is protected legally using patents, trademarks, copyright, or service mark is called a

industry analysis

A research process that provides the entrepreneur with key information about the industry, such as its current situation and its trends is called

differentiation

A type of generic strategy aimed at clarifying how one product is unlike another in a mass market refers to ___ strategy.

shake-out

A type of life cycle stage following a boom in which there is a rapid decrease in the number of firms in an industry is the

revolving

A(n) ___ credit is a credit agreement that allows the borrower to pay all or part of the balance at any time; as the loan balance is paid off, it becomes available to be borrowed again.

market

A(n) ___ is the business term for the population of the customers for your products or services.

they talk in terms of what will make a difference for the customer or the industry

All of the following concern taglines EXCEPT

when outsiders expect it; for internal understanding

There are two circumstances under which creating a business plan is absolutely necessary: (1) __ and (2) ___.

assuming that the leadership of the business must come from within the family

To avoid having the diversity of values, goals, and motivators from becoming the source of such intrafamily strife, you and the other family business members should respect one another's differences by all of the following ways EXCEPT

the business is critically examined by outsiders.

When a small business start-up secures outside investment, one thing it accomplishes is that

Flee

When performing a SWOT analysis, where Amy's business threats meet her business weaknesses, what should her strategy option be?

It is a minor portion of all current entrepreneurship

Which of the following does NOT hold true of part-time self-employment?

SEC filing statement

Which of the following financial statements is NOT expected in the business plan?

Monitoring compliance

Which of the following is NOT a business plan concern of bankers?

Stand retailing

Which of the following is NOT a path to full-time business ownership?

Always working "on the road" thereby enhancing productivity

Which of the following is NOT an advantage of home businesses?

Existing managers and employees resisting change.

Which of the following is a disadvantage of purchasing an existing business?

Purchasing a business often requires less cash outlay than for creating a start-up.

Which of the following is an advantage to buying an existing business?

cash flow and cash cycle

Which of the following would represent Mr. Johnson's interest in Connie's business plan?