ENT 2113- Ron Bolen Final Exam study Set (Spring 2022)
Personality tests should help you better understand yourself and your strengths and not be used as a guide for your
career
What is included in the second column of the chart used in the gap analysis?
categories of analysis
What program is growing across the United States to help start new entrepreneurial businesses in an area? Multiple choice question.
economic gardening
Credit cards have all the following EXCEPT
equity investment.
Large businesses often have _____.
extensive written procedures
What is the method used to identify an opportunity that exists between the demand for a product and the supply provided by firms in the market?
gap analysis
The greater the debt an entrepreneur is willing to take on to start the business, the _________ his or her risk tolerance.
higher
Identify a finding of the federal General Accounting Office's (GAO's) analysis of the impact of the closure of military bases.
in cities w base closings, several new businesses rose up to fill the economic gap that had resulted from the closings
A venture capital-backed business plan typically runs from _____ pages long.
25-45
The founders of a small business need to be involved in which of the following tasks when starting the new business?
All of these choices are correct (Design, operating, and funding)
ADA
Americans with Disabilities Act
In the context of business designs, one of the advantages of a corporation is that when it suffers losses, the founders will
lose only their investment in the business rather than their life's savings.
Which of the following entrepreneurial firms needs to pay special attention to OSHA guidelines regardless of their size?
manufacturing firms
An individual's hobbies and past work experience contribute to the individual's personal _____ set.
skill
In hobbies and activities, individuals develop specific ______ to the hobbies.
skills
Which of the following descriptions are characteristics of entrepreneurial firms? (Check all that apply.)
startup is self-funded operation is designed in the image of the founder the number of employees will not be expected to grow beyond 100
Accepting ________ ties a firm to the supplier and usually stops the firm from shopping around for a lower price.
supplier credit
What is the suggested starting point for generating business ideas?
Analyzing the skill set of the potential founders
supplier credit
Another form of nonequity funding that is available. Suppliers often will provide a credit on both physical assets (refrigerators, molding equipment, etc.) and the actual supplies provided.
Identify a true statement about the process of generating new business ideas.
As a business idea evolves, an entrepreneur must be willing to develop a new set of skills to make it successful.
Borealis Computing is a small start-up firm that needs to purchase essentialequipment and supplies to begin operations. Gencent LLC, a larger firm, offers to finance Borealis Computing's purchases. Under their agreement, Borealis Computing will repay Gencent LLC overtime at a specified interest rate. In the context of non-equity funding, Gencent LLC's financing of Borealis Computing's purchases is an example of ________.
supplier credit
What are the critical elements that an entrepreneur must solve for success? (Check all that apply.)
sustainable operating profit margin sufficient resources to get the business to a point where it is self-funding develop an ability to generate consistent and growing sales
Which of the following statements is true of venture capital start-ups?
the are often formed as high-tech ventures consisting of unique characteristics
A job offer is finalized by ________.
the candidate signing the offer
Identify a legal question that an employer can ask during an interview.
"Do you have a Social Security number?"
What percentage of states has an unemployment compensation law?
100
The European Union considers any business with fewer than _____ employees to be a small business.
50
In the context of legal forms of business, identify a benefit of a Subchapter S Corporation over a Subchapter C Corporation.
A Subchapter S Corporation has no limitations in the number and type of shareholders unlike a Subchapter C Corporation.
salary
A set amount of compensation for a given time period.
Identify a true statement about the process of generating business ideas.
After analysis, entrepreneurs may change their ideas even if they initially thought that their ideas would be successful.
________ is a managerial theory that believes individuals act to maximize their own benefit.
Agency theory
Investors can be
All of the answers are correct
While developing a quality business idea, what should potential business founders ideally do after evaluating their personal skill sets?
Carefully analyze the market and look for a gap
In the context of proper accounting techniques, the system that recognizes expenses when they are paid for and recognizes revenue as it is generated is known as ________
Cash-based accounting
All of these are threats to business success except
Deficit gaps
human resources
Defined in economics as the quantity and quality of human effort directed toward producing goods and services.
job description
Description of the duties involved in a job that is to be filled.
Which one of the following is a huge advantage for small business owners to start a business?
Desire to be one's own boss
draws
Distributions of funds from the business. They are usually in the form of a cash dispersion in advance of salary, bonus, expected year-end distribution, and the like.
James and Mary own a business. When they pay themselves an advance in salary or a bonus, it is called a(n) ________.
Draw
The underlying philosophy of the ______ test is that people are a result of all the experiences of their life.
Enneagram
Which of the following statements regarding personal motivations are correct? (Check all that apply.)
Entrepreneurs who are driven by personal motivators often make career and life-altering changes regardless of practical advice. Entrepreneurs who are driven by personal motivators are often more proactive. Entrepreneurs who are driven by personal motivators more relentlessly pursue their goals.
In the context of legal forms of business, identify an accurate statement about a general partnership.
Established partners can bring in new equity partners by surrendering a portion of their ownership position.
True or false: Robber barons were responsible for the collapse of small businesses in the 1880s.
F
In the context of financial tools, a business can quickly generate cash in the short run by selling accounts receivable at a discount to another company. This is a technique known as ________.
Factoring
Which of the following sources of skills for a new business is often the most overlooked?
Family experiences
Which periodical is published annually and documents the 500 largest corporations by sales in the United States?
Fortune
Funding for any new business starts with the resources of the ________.
Founders
All of these are harvest plan strategies except
Franchising
________ are special funds that are neither equity nor debt, that do not require repayment, and are designed to aid businesses in specific areas.
Grants
Established businesses are often ________ to buy from a start-up small business.
Hesitant
Discrimination
Hiring, dismissal, setting levels of pay, or basing promotions on factors that include but not limited to race, color, gender, religious beliefs, or national origin of the employee. Such actions are prohibited by federal and state laws.
In the context of legal forms of business, identify a true statement about limited liability partnership (LLP).
In a limited liability partnership, limited partners can work at the firm but not be active in its management.
general partner
In an LLP, the individual considered the manager of the firm, who, as such, has unlimited liability for any debts or judgments against the firm.
Which of the following are questions an entrepreneur should answer regarding work experience? (Check all that apply.)
In what areas would you be considered an expert? In what businesses have you worked? What aspects of the job were most enjoyable? What skills were critical to the jobs you performed?
Which of the following questions could be explored to identify additional skill sources? (Check all that apply.)
In what industry would I prefer to work? What type of magazines and books do I read? What skills were involved in the three greatest accomplishments of my life?
board of advisors
Individuals outside the small business that advise the firm; formed at the discretion of the founders (regardless of the legal form chosen).
Which of the following is a principal cause of new business failure?
Insufficient financial resources at founding
Which of the following statements is true of the Civil Rights Act?
It currently applies to all firms with more than 25 employees.
Identify a characteristic of a gap analysis for a new venture.
It is supposed to be completed by the entrepreneur or entrepreneurial team.
Identify a true statement about organizational slack.
It provides large organizations with flexibility that is unavailable to the typical entrepreneurial venture.
Which of the following statements is true of the Americans with Disabilities Act (ADA)?
It provides that each and every business must provide unfettered access to all differently-abled people.
Which of the following statements are true regarding education as it relates to skill sets? (Check all that apply.)
Knowledge gained from formal education provides a skill set. Technology skills acquired through education can be particularly valuable. An opportunity that uses your education is another source of a business.
In the context of legal forms of business, identify a true statement about sole proprietorship firms.
Laws governing business practices do not recognize other equity investors, which limits the growth potential of such firms.
In the context of legal forms of business, identify a true statement about sole proprietorship firms.
Laws governing business practices do not recognize other equity investors, which limits the growth potential of such firms.
Before establishing a new business, the first thing founders should do is
List their personal skill sets
What does OSHA stand for?
Occupational Safety and Health Administration
Which of the following businesses could be most likely pursued by individuals who do NOT prefer to work with people? (Check all that apply.)
Order fulfillment Internet-based businesses Bookkeeping
________ occur(s) in large companies that have excess resources such as equipment and employees.
Organizational slack
A harvest plan for a small business means the owner is
Planning to exit a small business
When should a new business owner ensure there are sufficient financial resources to operate the business?
Prior to the start
Threats to ________ are threats to the success of a new business related to its ability to establish and maintain a high-margin product or service.
Profit margins
Identify the typical triggers for starting a business. (Check all that apply.)
Receiving evidence that an idea is not only doable, but there is a concrete way to improve on a given problem Experiencing the inability to climb the corporate ladder due to circumstances Being spurred to action by attending a seminar, reading a book, or talking with successful entrepreneurs
commission
Some percentage of sales paid by the small business owner and typically associated with the compensation of sales representatives.
In the context of nonfinancial resources, which of the following are to be considered in a gap analysis for a new business? (Check all that apply.)
Special contacts with suppliers Special contacts with customers Physical location of the business
Marsciva Technologies is an emerging business. The firm considers the owners to be employees of the firm and therefore pays them salaries and bonuses. To reduce corporate tax, the owners of Marsciva Technologies pay themselves nearly all the profits generated so that very little actual profits are reported by the firm. Based on these characteristics, Marsciva Technologies is most likely a
Subchapter C Corportation
Which of the following can be a threat to operational financing?
Swift expansion plans
True or false: An entrepreneur's prior experience places boundaries on what he or she will consider when making decisions.
T
hourly wage
The amount paid per hour for work performed.
In contrast to the role of leadership in a typical large organization, the founder of a new entrepreneurial business tends to play a very critical role because
The concentration of knowledge tends to be with her or him
129. Which of the following statements is true of a performance review in an entrepreneurial business?
The formal conversation with a worker who is doing a good job and appreciating his or her work is a form of compensation.
Identify a true statement about the potential founder of a new business.
The founder of a new business needs to be intimately involved in its designing, funding, and running.
Small businesses act as a catalyst for social change because
The have the ability to generate profits in markets ignored by large corporations
Which of the following is true of robber barons in the context of the history of entrepreneurial businesses in the United States?
The indulge in great abuses in order to succeed in their business
Which of the following are true regarding the process of generating ideas? (Check all that apply.)
The process typically requires interaction. The process typically requires consideration. The process typically requires iteration.
Unemployment Compensation
The provision of financial assistance for some period of time to those people who lose their jobs through no fault of their own; every state has a law providing such assistance.
Which of the following statements regarding entrepreneurial businesses are correct? (Check all that apply.)
They are generally dependent on a single person or a few individuals. They have limited flexibility in responding to emergency issues such as the need to hire replacements if the company loses key individuals.
In the context of the initial developments of the industrial base in the United States, which of the following statements is true about robber barons?
They quickly came to dominate new sectors of the economy
In the context of equity funding, identify a characteristic of venture capital funds.
They tend to invest in high-growth business that can cash out by being bought out by a larger company within a set period of time.
In the context of equity funding, identify a characteristic of venture capital funds.
They tend to invest in high-growth businesses that can cash out by being bought out by a larger company within a set period of time.
Identify a true statement about the circumstantial motivators for starting a business.
They tend to result in more of a defensive positioning than do personal motivations
A business can obtain liability insurance, which helps protect the business against lawsuit judgments.
True
A community could have an incubator, which is a facility that houses new businesses and provides many critical services for them.
True
A problem with having a line of credit to purchase inventory is that a business tends to carry old and outdated inventory on the books.
True
Accepting an equity stake from an investor makes the owner accountable to that investor when founding and managing a business.
True
An advantage of a sole proprietorship is that a business is very easy to form and dissolve because there is virtually no separation between the founder and the business.
True
As a Subchapter S Corporation, one of the advantages is having legitimacy in the market as a more established form of business.
True
Microloans have been in existence for years; they are most commonly made directly to ________ for self-development
Women
The largest group of new business owners is ________.
Women
loan
a contractual agreement whereby the firm receives some amount of money that must be repaid over a specified period of time at a specified interest rate
Job advertisements written for a new hire should
be kept concise and should communicate the culture of the firm.
The greatest advantage of an entrepreneurial business is that it is owned and run by
the same person(s)
Each type of business started will require different _______ frames.
time
What are the advantages of leasing equipment for a new business?
All of the answers are correct.
The threats to sales generation schemes refer to an organization not being able to generate sufficient sales required to make it profitable.
True
partnership
a category of business formation that includes both general and limited types
The success of entrepreneurial businesses occurs because they are simply more _____ than their larger corporate counterparts.
focused
Research suggests that successful new business ideas are NOT determined by your: (Check all that apply.)
race. parents. gender. religion.
A personality test can help one ____ (in regards to the business)
select the type of business to start
The first category of start-up businesses are those formed as high-growth, often high-tech, ventures and are referred to as ______.
venture capital-backed firms
In a lease, a landowner can enter a business premises for all the following reasons EXCEPT
whenever the landowner wants to.
A credit card has a set repayment schedule.
False
A small business's harvest plan is to put the profits back into the company.
False
Any fines levied by the Occupational Safety and Health Administration (OSHA) are equal for entrepreneurial businesses with fewer than 25 employees as they are for large businesses.
False
Boards of advisors are composed of key employees who advise a firm.
False
Entrepreneurial businesses fail to provide a means to meet the varied demands that individuals face in a society.
False
Founders cannot lend money to their own firm.
False
Human resource management is not important in family businesses.
False
In a small business, an owner needs to consider how much debt he or she wants to accumulate in the business. The greater the debt, the lower the risk tolerance.
False
In a small firm, the cost of health insurance per employee will be equal to that of a large firm.
False
In a sole proprietorship, all the income and losses are reported on schedule D of the 1040 tax form.
False
In the case of business failure, debt does not need to be repaid.
False
The break-even point is the time when a new business starts to profit from incoming revenues.
False
The last column of a gap analysis is used to list the categories that are used to analyze each idea
False
The unlimited theory suggests that individuals act to maximize their own individual benefit.
False
True or false: Every business in the Fortune 500 started out as a large corporation.
False
When brainstorming, the true potential for each idea is often fully evaluated before the process moves onto generating the next one.
False
Workers' compensation insurance rates are regulated by the federal government and are uniform across the country.
False
Which of the following statements is true of the Fair Labor Standards Act (FLSA)?
It requires that all nonexempt employees who work over 40 hours a week should be paid at the rate of time and a half.
__________ motivations come from the individuals themselves.
Personal/Self
performance review
Review by the small business owner of an employee's goals and the outcomes over some given time period.
What does a potential entrepreneur need to consider when starting a new business?
Risk tolerance, prior experience, and personality orientation
Which of the following terms means a set amount of compensation for a given time period?
Salary
Threats to ________ are threats to the success of a business regarding its opportunity to sell to too many customers and to obtain repeat business.
Sales generation schemes
Sea Waves Tours and Avis Travels enter into a formal agreement with each other. Under this agreement, over the next year, Sea Waves Tours will recommend Avis Travels to all its customers. Avis Travels will pay a small commission for every new customer they gain as a result of this recommendation. In this scenario, Sea Waves Tours and Avis Travels have
Signed a contract with each other
In the context of a harvest plan, which of the following is the deciding metric in a potential public offering of a business?
Size
Until the mid-1880s, almost all U.S. businesses were
Small
True or false: An entrepreneur's risk tolerance, prior experience, and personality orientation shape their analysis of a business idea's potential.
T
True or false: Small businesses have greater flexibility in responding to changes that take place in their external environment.
T
Which of the following is not a personal motivation for an individual to start a business?
Taking a defensive position
Which of the following laws prohibits discrimination in hiring, dismissal, or promotion on the basis of race, color, gender, religious beliefs, or national origins?
The Civil Rights Act
Which of the following is an advantage that small firms have over large businesses?
The ability to respond quickly to changes
Fair Labor Standards Act (FLSA)
The act that established a minimum wage for workers.
Which of the following statements is directly associated with the circumstantial motivators for starting a business?
The staying power of an opportunistic start-up is mainly determined by other competing opportunities.
Which of the following is true of entrepreneurial firms?
The structure of management is designed to take advantage of the skills of the founder or founders of a firm.
Banks will lend money for the establishment and maintenance of inventory by arranging a revolving line of credit.
True
Bonding is a type of insurance in which the business is covered in case the workers cause any damage in the performance of their work.
True
Brainstorming is a creative process in which a group of individuals are brought together and asked to generate ideas related to a specific topic or problem.
True
Close to 50 percent of the millionaires in the United States are entrepreneurs.
True
Debt is a generic term that describes any type of non-equity funding tied to a business.
True
Heather Schuck, owner of Glamajama, is an example of how women can concentrate on more than one facet of life.
True
John takes out a loan for a necessary machine in his business. This type of loan would be called asset-based lending.
True
Large firms can absorb bad employees easier than small businesses because they have organizational slack.
True
One action a small business owner might take to establish that the firm is not discriminatory would be to advertise the job widely in several publications.
True
Threats to operational financing states that there are a number of obstacles to a new venture in obtaining the necessary financing for its growth.
True
Today many of the multinational firms in the United States are technology firms that began in the late 1970s and early 1980s.
True
________ is a fund that is organized as a limited partnership.
Venture capital
asset-based lending
a loan provided for the purchase of a necessary asset for the business
Of the key accounting reports that a new business person should be prepared to generate, which of the following tracks the work times of hourly employees and attendance for salaried employees?
a payroll record
Several successful business people establish a partnership with each other. They combine their financial resources and use the resultant pool of resources to make equity investments in various high-growth new undertakings. In the context of equity funding, the partnership and the pooled resources of the businesspeople are best described as
a venture capital fund.
In the context of legal forms of business, a Subchapter S Corporation
allows the owners to treat the income of the firm as part of their personal incomes.
C Corporation
an organizational form that treats the firm as a unique entity responsible for its own taxes. There are no limitations to shareholder participation and the "owners" are protected beyond their equity investment
S Corp
an organizational form that treats the firm as an entity separate from the individuals. This allows the owner(s) to treat the income as they would if the firm were a sole proprietorship or a partnership. It has limitations in the number and type of shareholders.
Sonor Designs is a small business that makes greeting cards. Because of the small scale of the firm's operations, it cannot afford to purchase the expensive printers it needs to make greeting cards. Instead, it rents the printers from another organization. In the context of business financing, Sonor Designs renting essential business equipment from another company is an example of
asset leasing.
Sonor Designs is a small business that makes greeting cards. Because of the small scale of the firm's operations, it cannot afford to purchase the expensive printers it needs to make greeting cards. Instead, it rents the printers from another organization. In the context of business financing, Sonor Designs renting essential business equipment from another company is an example of
asset leasing.
In the context of supports for new businesses, why are established businesses often hesitant to buy from a start-up business?
because it is not clear if the new business will be able to fulfill an order or service a product in the future
In the context of business risks, how can an entrepreneur identify competitors to a new potential business?
by observing what potential customers do to satisfy their current needs or wants
credit card
card entitling the owner to use of revolving credit that is not tied to any particular asset, does not have a set repayment schedule, and is usually tied to a much higher relative interest rate.
trademark
claim of intellectual property that is associated with a specific business. this may be the name of the furm, a symbol representing the firm, or its products
A founder or founding team must have synergy, which is a combination of: (Check all that apply.)
competitive advantage skill set understanding of an industry
Large firms can sometimes do things more efficiently because of their ability to operate on a larger scale than can a small firm. This implies that large firms obtain ______ in some industries.
economies of scale
What is the condition that allows the long-run average cost to continue downward as production increases?
economies of scale
Which of the following are ways entrepreneurial businesses can act as catalysts for societal change? (Check all that apply.)
entrepreneurial businesses are willing to pursue smaller markets ignored by large corporations entrepreneurial business have an understanding of local community
A difference between entrepreneurial businesses and venture capital-backed firms is that _____.
entrepreneurial businesses resources are more constrained than those of venture capital-backed businesses
Covore Inc., a start-up firm, receives the majority of the funds it requires to begin its operations from five individuals. In exchange for these funds, each individual receives a share of ownership in the firm. The funds provided to Covore Inc. by the individuals are an example of ________.
equity investment
The U.S. Census tracks employment by number of employees (among many other statistics), and the latest census reports indicate that ________.
firms with fewer than 99 employees represent 76 percent of all firms in the United States
All of the following are benefits of a Subchapter C Corporation EXCEPT
fringe benefits being treated as income.
crowdfunding
funds received by a business by soliciting a large number of very small investors usually via the internet---kickstart, gofundme, etc.
equity investment
funds received by the business in exchange for a percentage ownership of the business
Research suggests that successful new business ideas are NOT determined by your: (Check all that apply.)
gender parents race religion
Personality tests can _____.
help one better understand one's traits and tendencies
Business Angels
high net worth individuals who invest in businesses; does so as an individual not as a business or type of company who puts up money
People in an entrepreneur's network can help by providing ______ to a new business.
legitimacy
LLC (Limited Liability Company)
limited liability corporation
A(n) ________ is an index wage that requires the minimum wage to be at least what someone who works 40 hours a week needs to stay out of poverty.
living wage
The initial analysis is a process of:
moving from 3 to 5 ideas into a single idea
Excess resources in an organization that allow for redundancy and the quick deployment of personnel in crisis are referred to as
organizational slack
copyright
ownership of creative materials the copyright holder has generated, such as books, magazines, advertising copy, music, artwork, or virtually any other creative product, whether published or unpublished.
Once a list of skills, abilities, and interests has been developed, the next step is to:
perform a gap analysis
Which of the following are goals of the business plan for a new entrepreneurial business? (Check all that apply.)
provide self-evaluations a guide to managing the business to provide investors w necessary info
Human resources, as defined in economics, is the ________ and ________ of human effort directed toward producing goods and services.
quantity; quality
Human resources, as defined in economics, is the ________ and ________ of human effort directed toward producing goods and services.
quantity; quality
The process of business development from scratch and the process followed by established businesses are ______.
quite different
Without the needed _____, the founders would be faced with not holding any advantage over the competitors who have the necessary depth in the area.
skill
True or false: The Myers-Briggs test is one of the most widely used personality tests.
t
shrinkage
the difference between what is sold and what was brought into the business
In the context of legal forms of business, which of the following is an area in which sole proprietorships differ from general partnerships?
the possibility of bringing in new equity partners
When forming a sole proprietorship or a partnership, the business debts are
the responsibility of the owners.
Identify a characteristic of venture capital start-ups.
they are inherently risky operations whose growth is dependent on the exploitation of the unknowns in the market
Entrepreneurs can examine business risk by considering three threats to business success. Those three threats are: (Check all that apply.)
threats to the profit margin. threats to sales generation schemes. threats to operational financing.
Examining ______ around the region, nation, or world that may not have reached a particular location is one way of identifying business opportunities or gaps.
trends
Starting a business is often the result of an event or condition within an individual's environment called a(n)
trigger
The government regulates the employment of children under the age of ________.
16
In the context of risk tolerance, most new business owners must set their risk tolerance based on the average level of risk in their specific market or industry.
False
John reviews Michael's performance on the goals and outcomes that were set 12 months ago. This is called a goal review.
False
Which of the following types of firms do business incubators work best with?
Scientific firms
Which act officially organized the United States Small Business Administration (SBA)?
Small Business Act
Which of the following are advantages that small, new businesses have? (Check all that apply.)
Small businesses are owned and run by the same person(s). Small businesses can respond quickly to opportunities or threats as they arise. Small businesses fill niches that large firms simply cannot afford to fill.
equity theory
The theory that we all judge how we are treated relative to how we see others being treated.
If a new business deals with toxic waste such as asbestos, it can expect to be subject to significant regulation, regardless of the size of the firm.
True
If a new business deals with toxic waste such as asbestos, it can expect to be subject to significant regulation, regardless of the size of the firm.
True
In a Subchapter C Corporation, it is possible to have a double taxation situation.
True
The insurance coverage obtained by a small business is directly proportional to the cost. As the coverage increases, the cost also increases.
True
The setting of goals for an employee allows an entrepreneur to judge how well the employee is performing.
True
Venture Capital Fund
a fund that is organized to make significant equity investments in high-growth new ventures
debt
a generic term to describe any type of nonequity funding tied to the business: -loans -credit
LLP (Limited Liability Partnership)
a limited liability partnership
contract
an agreement between two parties to perform certain activities for some consideration
The triggers for starting a business can come from either __________ or negative stimuli that occur in the individual's life.
positive
Sea Waves Tours and Avis Travels enter into a formal agreement with each other. Under this agreement, over the next year, Sea Waves Tours will recommend Avis Travels to all its customers. Avis Travels will pay a small commission for every new customer they gain as a result of this recommendation. In this scenario, Sea Waves Tours and Avis Travels have
signed a contract with each other.
The World Bank estimates that one of the strongest factors in the growth of any nation's GNP is the presence of entrepreneurial _____ enterprises.
small & medium sized
In the context of businesses listed in Fortune 500, Henry Ford (Ford Motor Company), Steve Jobs (Apple), Ralph Lauren (fashion), and Sam Walton (Walmart) all started out as _____.
small-business owners
Trilane Systems is a small business. Its owner, Myra, is also its only employee. She handles the business's operations herself and is responsible for all of the business's income and losses. In the context of the legal forms of business, Trilane Systems is a
sole proprietorship.
grants
special funds, neither equity or debt, designed to aid businesses in specific areas. does not expect payback and can be either government or privately funded.
Individuals or other organizations that may impact the success of a business and depend on the success of the business for their own livelihood are known as ______.
stakeholders
What are included in the first column of the chart used in the gap analysis? (Check all that apply.)
the business idea a brief explanation of the idea
factoring
the practice of selling accounts receivable at a discount to another company in order to receive immediate cash
When was the initial development of the large industrial base of the United States?
1880s
Civic leaders often look to ______ as a means to promote economic strength for a community, region, or state.
entrepreneurs
List the steps that are important to the development of a quality business idea. Start from the first or initial step.
1. List & evaluate one's personal skill sets 2. analyze the market and look for a gap or a need that is not being met efficiently 3. compare one's ability to fill the identified gaps with an opportunity available
profit sharing
A firm's offer to share a percentage of the profits at the end of the year or some other period of time with the employees. This is used, for example, in a hybrid system, in which the firm may set some relatively low level for salary.
Identify a true statement about gap analysis.
A gap analysis should be completed in a short period of time.
In the context of financing tools available to new businesses, identify a major disadvantage to asset leasing.
A new business might spend more money on leasing equipment over time than if it had bought the equipment outright.
bonus
A reward offered to employees based on their performance; similar to profit sharing. Typically, bonus systems are not as well defined as profit sharing; instead, the level of reward is left to the discretion of the small business owner.
private equity fund
A series of funds intended to provide capital to invest in existing businesses that the investors believe can leverage their resources to improve the entrepreneurial venture.
hybrid compensation system
A system employed by a small business where there is a salary along with commission.
Which of the following items does a payroll record list?
All of the answers are correct (gross pay, base pay, taxes)
A common form of debt for a small business can be classified as ________.
All of the answers are correct (loans, credit cards, supplier credit)
Which of the following questions should a new business owner examine when considering leases?
All of the answers are correct.
Which of the following represents the impact of a poor employee on the functioning of a small business?
All of the answers are correct.
All of these are potential issues for an owner in a family business except
All of these choices are correct (promoting, firing, and reprimanding a family member)
Identify the guidelines that should be ideally followed by entrepreneurs to create business plans for new entrepreneurial businesses. (Check all that apply.)
An entrepreneur should create an attractive, one-page pitch about the business while developing the business plan. An entrepreneur should understand that a business plan should be created in pieces with each piece fitting into a whole picture.
Identify an accurate statement about the hybrid compensation system.
An entrepreneur should provide bonuses in a timely manner that is relevant to the individuals in the firm and within the realities and constraints of the business.
A grant, a form of nonequity funding, is expected to be repaid at a predetermined interest rate once a beneficiary firm begins to profit from its operations.
False
A(n) ________ is needed regarding all employees, and the owner must be diligent in the attempt to assist a poorly performing employee.
Paper trail
Which of the following personality tests was developed by two independent research teams who analyzed data collected from thousands of people?
The Big Five test
In the context of evaluating entrepreneurial orientation, which of the following personality tests has a bias that adults will not change their personality over time and instead hold on to the personality they develop during childhood?
The Enneagram test
Which of the following laws states an employer cannot discriminate in pay to men and women who do the same job?
The Equal Pay Act
OSHA (Occupational Safety and Health Administration)
The Occupational Safety and Health Administration, which is charged with protecting the health of workers.
Supplier credit is typically offered on both physical assets and actual supplies of inventory purchased by a business. 136. Banks will lend money for the establishment and maintenance of inventory by arranging a revolving line of credit.
True
Carla is a high-net-worth individual who was once an entrepreneur. She now financially invests in small start-ups and businesses. Though Carla funds their initial operations and advises them on the best way to develop their operations, she rarely interferes with their day-to-day operations. In the context of the various forms of equity funding, Carla is most likely
a business angel.
patent
a claim of intellectual property that covers a specific innovation or creative idea
Profit and Loss (P&L) Statement
a financial statement that summarizes the revenues, costs, and expenses incurred during a specific period of time.
asset lease
a form of lease tied to a particular asset used by a business to conserve cash and maintain the latest versions of whatever equipment is available
The ______ ceiling refers to the fact that women and minorities may be hired by large firms but they experience limits placed on their advancement within the firm.
glass
In the context of legal forms of business, a general partner in a limited liability partnership
has unlimited liability for any debts or judgments against the firm.
One of the accounting records maintained by Visors Inc. lists the number of regular work hours worked by its employees, the overtime hours worked by various employees, and the firm's overtime pay rate. This record also tracks salary checks issued to each employee. This record is most likely a(n) ________.
payroll record
All new businesses have an inherent amount of ________ associated with the starting and operation of the business.
risk
Potential entrepreneurs must understand their level of tolerance to
risk
The Fortune 500 is published annually by Fortune magazine and documents the 500 largest corporations (by ______) in the United States?
sales
Borealis Computing is a small start-up firm that needs to purchase essential equipment and supplies to begin operations. Gencent LLC, a larger firm, offers to finance Borealis Computing's purchases. Under their agreement, Borealis Computing will repay Gencent LLC overtime at a specified interest rate. In the context of non-equity funding, Gencent LLC's financing of Borealis Computing's purchases is an example of ________.
supplier credit
Workers Compensation
the provision by law of some type of compensation to employees who are disabled or injured while on the job.
Sole Proprietorship
the simplest form of business organization is characterized by the fact that the person who owns the business and the business itself is treated as the same entity