ElE 3010 - Parnell Final
when collecting marketing information the entrepreneur should
****** identify competitors
from the chapter on the characteristics of an entrepreneur, we know that after the failure of a business entrepreneurs are likely to
*****continue starting new ventures
a focus group should consists of
10-12 potential customers
around ____ of businesses make it to the third generation
12%
once accepted, the trademark is published in the Trademark Official Gazette for ____ days to allow any party to oppose or request an extension to oppose the use of the mark
30
when borrowing from friends and family, the entrepreneur should avoid putting agreements is writing to avoid future disagreements
false
a reflection task would involve thinking about what strategies should be used to solve a problem
false; a strategic task would
the product life cycle consists of the five main stages
false; it contains four
in the McMullen Shepherd Model the first stage is the evaluation stage
false; it is the attention stage
suggestions for surviving bankruptcy include all of the following except
file only after cash runs out
which of the following is an internal environmental variable
financial resources
equipment would be included on the balance sheet in which section
fixed assets
_____ is the process of an entrepreneur conducting business activities across national borders
international entrepreneurship
Reverse brainstorming is much like brainstorming except that:
it focuses on the negative aspects
when evaluating business plans ______ are primarily concerned with the four Cs of credit
lenders
a _____ occurs when an entrepreneur or an employee group uses borrowed funds to purchase an existing venture for cash
leveraged buyout
distribution, pricing, and promotion of the product are discussed in which section of the plan
marketing
the ____ is he written statement of marketing objectives, strategies, and activities to be followed in the business plan
marketing plan
______ is the process of gathering information in order to determine who will buy the product and what is the most appropriate distribution channel
marketing research
the management team of a new venture
must operate the business full-time
which statement about capital requirements in franchising is NOT true
suggested: • Up-front support saves entrepreneur significant time and capital • Pooling of money for advertising
the concept that "the whole is greater than the sum of its parts" is known as
synergy
the ____ is the specific group of potential customers toward which a venture aims its marketing plan
target market
the difference between a board of directors and a board of advisors is that
the board of advisors meets less frequently
which of the following statements is true
the business plan describes both internal and external elements
the simplest approach to gathering primary information is
observation
a broad-scope strategy
opens the firm up to many different "fronts" of competition.
_____ is defined as the risk of interference with the operations of the venture
operating risk
_____ is the amount owners have invested and/or retained from the venture operations
owner's equity
which among the following political risks is considered the biggest risk of all
ownership risk
a _____ is a contract between the government and an inventor
patent
the strategy for growth in which the entrepreneur encourages existing customers to buy more of the firm's current product is a
penetration strategy
compensation for board members can take the form of all of the following EXCEPT
perks, such as vacations
in which phase of the SBIR grant process are funds used to create a prototype of a product or service
phase II
which of the following statements is tru
potential entrepreneurs should establish a formal method for monitoring and evaluating competitive products and services on the market
observation, interviewing, and focus groups are examples of collecting
primary data
reviewing meetings to make sure they are being run effectively illustrates which of the following principles
principle of analysis
which of the following is true regarding the Sarbanes-Oxley ct
private companies are not included in this act
_____ includes initiative and risk taking, as well as competitive aggressiveness and boldness
proactiveness
____ strategies involve developing and selling new products to people who are already purchasing the firm's existing products
product development
the ____ is defined as the stages each product goes through from introduction to decline
product life cycle
the marketing mix consists of
product, price, distribution(place), and promotion
if the new venture is a manufacturing operation a _____ in the business plan is necessary
production plan
pro forma cash flow is
projected cash inflow and outflow
the _____ is filed to establish a date of conception of an invention and replaces what used to be known as a disclosure document
provisional patent
which of the following is true about corporate entrepreneurship
a company must be willing to invest money without guaranteed return
focus groups use which of the following methods
a moderator leads the group in an open, in-depth discussion (10-12 people)
business-to-business marketing involved
a more direct channel of distribution than consumer markets
offering a small product range to a small number of customer groups is:
a narrow scope strategy
a new entry includes all of the following except: a. offering an established product to a new market b. creating a new brand name for your company c. creating a new organization d. offering a new product to a new market
a.
one method of expanding a business is the purchase of an entire company or part of it so that the entity is completely absorbed and no longer exists as a separate company
acquisition
a two to three year plan to sell a business to employees is
an ESOP
typically debt financing requires
an asset as collateral
which of the following is NOT a purpose of the Bankruptcy Act of 1978
purposes: • Fair distribution of assets to creditors • Protection of debtors from unfair depletion of assets • Protection of debtors from unfair demands by creditors
which of the following would be considered a variable expense
raw materials
an assessment of external uncontrollable variables that may impact the business plan is known as
an environmental analysis
focus groups
are an informal method of gathering market information
fixed expenses
are incurred regardless of sales volume
private offerings
are not a viable option for new ventures*****
entrepreneurs who have the necessary abilities for the transition to more professional management practices and the aspiration to grow their business
are the most likely to achieve growth
the basic balance sheet realationship is
assets = liabilities + owner's equity
_____ refers to a diversification strategy that involved taking a step back (up) on the value chain toward the raw materials
backward integration
a computer company buys a hard-drive manufacturer. this is an example of
backward integration
what term describes the practice of paying for goods indirectly through another source
barter
this problem solving method involves developing new ideas by thinking without constraints
big dream approach
all of these are characteristics of an entrepreneurial environment except: a. new ideas are encouraged b. it uses a multidiscipline teamwork approach c. there are short term horizons d. the organization operates on frontiers of technology
c.
by delaying entry, late movers
can learn from the actions of first movers without incurring the same costs
which of the following is not one of the five C's of lending
caution (capacity, conditions, character, cash flow, collateral, and equity contribution etc. are)
which methods of bankruptcy require the entrepreneur to come up with a payment plan
chapter 11 and 13
the section of the patent application which provides the criteria by which any infringement will be determined is the
claims section
which of the following creative methods involves having participants write down their ideas several times a day
collective notebook method
entrepreneurs in the ____ quadrant of firm growth aspire to grow their businesses but do not possess the ability to do so
constrained growth
authors or publishers of software are protected under
copyrights
chapter 11 is the type of bankruptcy that results in
reorganization
suppliers demand payments as cash, payroll taxes are not paid, key personnel leave the company
early signs of bankruptcy
the basic building blocks to a firm, or the inputs into the production process
resources
which among the following influences whether customers are able to use the good or service properly and whether they are able to understand the firm's advertising or other promotional messages
education
joint ventures are sometimes called
strategic alliances
which is NOT a leadership characteristic of a corporate entrepreneur according to the text
encourages colleagues to follow hierarcy
corporate entrepreneurship is best described as
entrepreneurial action within an org
all bankruptcies are handled by the U.S. Supreme Court
false
an entrepreneur focuses on the operating costs before completion of the sales budget
false
cash flow is the same thing as profit
false
customers always embrace change in products and services
false
entrepreneurially run firms are driven by controlled resources whereas traditionally managed firms are driven by perception of opportunity
false
in encouraging a culture for corporate entrepreneurship, using older, proven technology is recommended in order to increase stability in the organization
false
it is recommended that an entrepreneur avoid using the internet as a resource for finding information to write a business plan because the information found there is often incorrect and unreliable
false
the McMullen Shepherd model helps identify the common traits of successful entrepreneurs
false
the SBA's Microloan program provides short-term loans of up to $100,000 to small businesses for working capital or purchase of inventory
false
the business plan addresses only short term decision making
false
the three main categories of patents are design, utility and provisional patents
false
which of the following is NOT a common reason why business plans fail
the promotional strategy was not taken seriously
the depth and detail of a business plan depend on
the size and scope of the new venture; depth and scope are determined by audience
which of the following is not an aspect of nonverbal or hidden language
time*******
the formula for break-even analysis is
total fixed costs divided by selling price minus variable cost per unit
Bricolage is entrepreneurs making do by applying combinations of the resources at hand to new problems & opportunities
true
Generally, independent, venture-capital based start-ups by entrepreneurs tend to outperform corporate start-ups significantly
true
a board of advisors has less decision making authority than a board of directors does
true
before writing the business plan an entrepreneur should conduct an objective self-assessment of his or her abilities which includes areas such as planning and sales skills
true
entrepreneurial opportunities are those situations in which new goods, services, raw materials and organizing methods can be sold at greater than their production cost
true
entrepreneurially managed firm structure is usually flat with multiple informal networks
true
newness of a new entry is always an advantage
true
the effectuation process starts with what one has and selects among possible outcomes
true
the period of time when the environment is favorable for entrepreneurs to exploit a particular new entry is called the window of opportunity
true
the question "what is this technology all about?" is a comprehension question
true
which of the follow statements is(are) not tre
unlike a patent, a trademark does not last indefinitely
in order to be the basis for a firm's superior performance, a bundle of resources must be
valuable, rare, inimitable (unique)
market segmentation is the process of
dividing the market into smaller homogeneous groups
which of the following are NOT factors in the success of joint ventures according to the text
Those that relate to success: Accurate assessment of the parties involved to best manage the new entity Degree of symmetry between the partners • Objectives and resource capabilities Expectations of the results • Reasonable, realistic, consistent Timing Most successful when two leaders work together to collaborate, have chemistry The ones that fail are the management teams who do not have chemistry
liability is one of the most critical reasons for establishing a
corporation
____ is not desirable when brainstorming is in process
criticism
entrepreneurial culture and growth orientation consist of all of the following except: a. being creative b. focusing on opportunities c. encouraging employees to generate ideas d. the desire to grow at a slow and controlled pace
d.
which stage of marketing research is considered to be the most difficult for an entrepreneur due to lack of knowledge or experience in marketing
defining the purpose or objectives
which is the first step in preparing a marketing plan
defining the target market
the ______ budget is used to evaluate expenditures that will impact the business for more than one year
depreciation******
the part of the plan that describes the location and size of the business, the personnel and office equipment that will be needed, and the history of the venture is called the
description of the venture
the ____ patent is granted for a 14-year term
design
which of the following is a contract that grants the owner protection, based on the appearance of an object
design patent
the most common method of harvesting a venture is through
direct sale of a business
the ___ element of the marketing mix involved decisions as to what is the most appropriate channel
distribution
corporations distribute profits to owners through
dividends
In regards to the difference between the entrepreneurial and administrative focuses which is correct: a. entrepreneurs rent or sporadically use resources managers like to own resources b. entrepreneurs focus on slow steady growth and managers focus on rapid growth c. entrepreneurs tend to use a hierarchical management structure, managers use a more fluid flat approach d. entrepreneurs are driven by controlled resources, managers by opportunity
entrepreneurs rent or sporadically use resources managers like to own resources
the section of the business plan in which the entrepreneur identifies changes occurring on the national and international level is the
environmental and industry analysis
______ financing does not require any collateral
equity
which of the following is not an example of internal financing
equity financing
which of the following is the most significant advantage of an acquisition according to the text
established image and track record
creating a positive organization culture involves
establishing a "we" spirit, not a "me" spirit in meetings and memorandum
it is a practice in some cultures to hug and even kiss when greeting a known business partner. what aspect of nonverbal language is being referred to
ethics (space or business relationship******)
In regards to thinking structurally, superficial similarities:
exist when the base (relatively easy to observe) elements of the technology resemble the basic elements of the market
an opportunity assessment plan
focuses on the opportunity, not the venture.
the organization plan describes the business'
form of ownership
_____ is an arrangement whereby the manufacturer or sole distributor of a trademarked product or service gives exclusive rights of local distribution to independent retailers in running operating prceduress
franchising
the person offering the franchise is known as the
franchisor
which of the following problem-solving techniques begins with group members not knowing the exact nature of the problem
gordon method
continuous innovations are described as
having the least disruptive influence on established consumption patterns
which of the following is NOT one of the main functions of the management team according to the text
help the entrepreneur write the business plan*****
all of the following are questions an opportunity assessment plan might answer except
how much capital do I need?
concerns regarding roads, electricity, banking facilities, communication, and educational systems have to do with a country's
infrastructure
franchising opportunities have often evolved from changes in the environment as well as important social trends. This is not one of the factors responsible
responsible factors: Good health -consumers more health conscious Time saving or convenience ice - home delivery services Health care - seniors living independently The second baby boom - child related service franchises
____ refers to the probability, and magnitude, of downside loss
risk
the ____ imposes oversight responsibilities on members of the board of directors
sarbanes - oxley
information that already exists is called
secondary data
the first step in establishing corporate entrepreneurship in an organization is:
securing commitment from top management
a market development strategy would NOT involve
selling new products to consumer's purchasing the firm's existing products
the marginal contribution is defined as
selling price per unit minus variable cost per unit
conducting a _____ on cash flow involves assigning a + or - probability to the estimated value
sensitivity analysis
the sales budget
should be prepared before developing the pro forma income statement
the business plan presentation for potential investors
should enable the entrepreneur to "sell" his or her business concept in a designated period of time
in which form of organization does the owner have greatest control
sole proprietorship
which type of ownership is the least expensive to start
sole proprietorship
