ENT 3003 final

The ____ plan reflects recognition that sometimes the "best laid plans" do not work the way you intended.

contingency

____ is found by subtracting variable costs from revenues and dividing the difference by revenues to yield a percentage.

contribution margin

____ protect original works of authors, composers, screenwriters, and computer programmers.

copyrights

An entrepreneur's ____ are the foundation for the business and are always reflected in the business and in the way customers are treated.

core values

entrepreneurial-like ventures inside large companies are called _______

corporate ventures

The U.S. Supreme Court has defined the ____ as an artificial being, invisible, intangible, and existing only in contemplation of the law.

corporation

In manufacturing businesses, forecasting expenditures is a bit more complex because ____ must be derived first.

cost of goods sold

In ____, entrepreneurs create opportunities via their actions, reactions, and experiments around new products, services, and business models.

creation theory

____ change is found in industries where resources turn over frequently and must continually be replaced.

creative

No time for creativity, lack of confidence, and absence of creative skills are all examples of ____ roadblocks.

creativity

Because they tend to be fairly expensive, consultants are best used for ____.

critical one time advice or problem solving

The higher the ____, the more liquid the company is and the more easily these assets can be converted to cash to pay off short-term obligations.

current ratio

A clear and precise definition of the____ increases the chances that the business concept will meet the needs of the market.

customer

In general, the ____ is the one who pays for the product.

customer

In figuring ____, entrepreneurs must convert time to dollars and consider an opportunity cost.

customer acquisition cost

the entrepreneurial mindset cannot be found within large corporations or socially responsible nonprofit organizations

false

the illumination step in Wallas's creative process brings the idea to an outcome

false

the term entrepreneur has been in popular use for more than 100 years

false

the value proposition is the benefit that the company derives from the product or service it will produce; in other words, it is the reason for the company to be in business

false

the market research process consists of seven steps

false there are 6 steps

there are seven stages in the industry life cycle

false there are typically five

Determining what resources are needed, when they are needed, and how to acquire them is a critical piece of the ____.

feasibility analysis

The more information an entrepreneur acquires through ____, the higher the chance that his or her predictions will be close to the mark, risk will be reduced and uncertainty managed.

feasibility analysis

Which of the following would not be considered a startup resource?

feasibility analysis

A good way to test a new concept in the marketplace is through a ____.

feasibility study

To qualify for ____, the work must be in a fixed and tangible form; that is, one must be able to see or hear it.

federal copyright protection

The ____ is an unserved niche that enables the entrepreneur to enter a market with no direct competition for a time.

first customer

A ____ corporation is chartered in a state other than in the one in which it will do business.

foreign

So that entrepreneurs do not have to incur the tremendous cost of purchasing equipment for a manufacturing plant, they may ____.

form a strategic alliance

____ is very different from a business model because it considers more than the customer and how the new venture will create and capture value; it considers the competition.

strategy

Professionals such as lawyers, doctors, and accountants frequently employ the legal structure of a ____.

partnership

When two or more people share the assets, liabilities, and profits of the business, the legal structure is a ____.

partnership

Which of the following statements is not true of an S-corporation?

partnerships may be shareholders

A ____ is the primary means of protecting an original invention.

patent

To avoid ____, the team needs to change its angle of vision by looking at the situation in a new way and then testing alternative hypotheses.

pattern recognition bias

The functions assumed by a professional employer organization include ____ functions.

payroll and human resources

A/An ____ consists of individuals whom the entrepreneur respects and trusts. They serve as a sounding board for ideas and act as coaches.

personal mentor board

An entrepreneur who owns a minority or majority stake in several ventures is called a ____ entrepreneur.

portfolio

The bottom line for any new venture is to have ____.

positive cash flow

Indirect selling expenses are not linked to the sale of a specific product and include interest, telephone expenses, and ____.

postal charges

the probability of survival and success tends to go up with businesses that have more _____

potential

As long as the market is growing, it is more important that the entrepreneur is solving a critical pain with a value proposition the customer quickly understands.

true

Often small businesses such as pizza parlors and boutiques are run as ____.

sole proprietorship

The owner is the only person responsible for the activities of the business in a ____.

sole proprietorship

More than 76 percent of all businesses in the United States are ____.

sole proprietorships

For a new product or service to be successful, it should ____.

solve a problem that customers have

____ are more likely to make the mistake of putting structure on the organization before its time.

startup teams

increasingly, we are seeing more firms founded by ____ going international from startup.

startup teams

A new venture's ____ will convey its specific assets and capabilities, and make the venture more comprehensible and compelling.

story

____ facilitates a new venture's identity and legitimacy as well as creates a competitive advantage that is difficult to replicate.

story telling

Because consultants tend to be fairly expensive, they are best used for critical, one-time advising or problem-solving assignments.

true

Bootstrapping refers to minimizing of resources at startup in order to keep fixed costs as low as possible.

true

Building a POC prototype reduces the risk of failure and clarifies customer needs.

true

Common stockholders are entitled to vote at stockholder meetings.

true

Creativity enables entrepreneurs to differentiate their businesses from competitors so that customers will notice them.

true

DBA stands for a certificate of doing business under an assumed name.

true

Determining what resources are needed, when they are needed, and how to acquire them is a critical piece of the feasibility puzzle.

true

Discovery theory and creation theory help explain how entrepreneurial opportunities happen.

true

Each time a new product or service or an improvement to an existing product or service is introduced, it will have gone through a design and development process.

true

Economic turmoil has a plus side because it produces opportunities for entrepreneurs who are comfortable with environmental factors outside their control.

true

For every industry, the life cycle stages occur at different times and vary in duration.

true

Having a strategic plan in place for the venture enables the entrepreneur to choose a legal form that won't have to be changed or one that can easily be shifted to when the time is right.

true

How a product or service is priced is a function of a company's goals.

true

How to deliver the benefit to the customer is the issue addressed by the distribution channel element of the business concept.

true

If a new venture is a corporation, a board of directors is required.

true

In a sole proprietorship, the owner is the only person responsible for the activities of the business and, therefore, is the only one to enjoy the profits and suffer the losses.

true

In a wholly owned or closely held corporation, there really is little distinction between the functions of a board of directors and those of a board of advisers.

true

In terms of its treatment of income, expenses, and taxes, a partnership is essentially a sole proprietorship consisting of more than one person.

true

Intellectual-property rights are legal rights associated with patents, trademarks, copyrights, and trade secrets.

true

Investors are moving away from written business plans in favor of a brief, well constructed executive summary or pitch.

true

Most entrepreneurs try to avoid hiring employees as long as possible, because employees are the single biggest expense in the business.

true

POC tests involve field work with the customer.

true

Poor execution in product development results in missed opportunities to enter the market at a quiet time without immediate competition.

true

Pricing is not designed to cover total costs but to maximize total contribution⎯that is, unit price minus unit variable costs.

true

Sole proprietorships, partnerships, S-corporations, and limited liability companies all permit pass- through earnings and losses, but S-corporations and LLCs offer more protection from liability.

true

Somewhere in the micro strategy process, the business is actually launched in a small, controlled way.

true

Submitting a professionally crafted business plan is less important than making it clear what the entrepreneur has accomplished in the way of starting the business.

true

A ____ is simply evidence that a technology, product, business model, or idea is feasible.

proof of concept

The micro strategy process repeats itself over and over again and with each successful outcome, the new business is moved toward a complete ____.

proof of concept

Initial market tests are accomplished using a working ____ of near production quality.

prototype

A ____ is a way for inventors to use the term patent pending.

provisional patent

A/An ____ starts with a concept statement, specifying the pain or need in the market, the potential first customer, the value proposition for that customer, and how the value proposition will be delivered to the customer.

quick screen

Which of these pricing strategies will help a new firm maximize cash flow?

raise price and reduce direct costs

The second step in the market research process is ____.

researching secondary data

Which of the following is not essential to a business concept?

revenue model

The goal of most entrepreneurs is to reduce the level of ____ in any venture.

risk

The ____ is an amount of cash that is often based on the sales and collection cycle of the business.

safety margin

It is best to begin researching the industry by using ____ information about the industry.

secondary

Google, Wikipedia, journals, and trade magazines are examples of ____.

secondary sources

An entrepreneur who starts one business and then moves on to start another is classified as a ____ entrepreneur.

serial

For ____ companies, the actual delivery costs must be based initially on information gathered from other companies in the industry.

service

The ___ period moves the industry from many companies and high product costs, to a more stable industry with only a few efficient firms.

shakeout

Once the new venture has passed the startup stage, additional value is created by ____.

significant customers

____ partners typically provide capital but do not actively participate in the management of the business.

silent

__________ refers to an autonomous group mandate to find and develop new products for the company that may even be external to the company's core competencies

skunk work

If a nonprofit corporation is ever dissolved, its assets must be distributed ____.

another tax-exempt corporation

Which of the following is not one of the four stages of the creative process identified by Wallas?

association

Entrepreneurs need to remember that ____ costs are the biggest costs the business will bear.

employee

By creating a corporation and issuing stock, the entrepreneur is giving up a measure of control to the ____.

board of directors

____ is the mechanism that drives an individual to become a nascent entrepreneur because all other opportunities for income appear to be absent or unsatisfactory.

Push

____ involves getting ideas down on paper and then organizing the ideas and creating themes.

brainwriting

When it comes to the Inc. 500 Fastest Growing Private Companies, the ____ is not a predictor of ultimate success.

amount of startup capital

Entrepreneurial leaders have a distinct advantage over ____ leaders because they see themselves as part of a team.

"heroic" and "charismatic"

The term entrepreneur has been popular in the United States since the ____.

1940s

The _______ has been called the Decade of Entrepreneurship

1980s

the 2008 Global Entrepreneurship Monitor Report found that men and women in the______ age bracket are responsible for 36 percent of all the entrepreneurial activity in the United States and for 22 percent

45-98

The Small Business Administration (SBA) defines a small business as one with fewer than ____ employees.

500

The probability of success for a new product launch is about ____ percent.

60

Under the Copyright Extension Act of 1998, a copyright lasts for the life of the holder plus ____ years.

70

Beginning in the late 1990s what percent of the Fortune 100 companies' market capitalization was based on intellectual property?

75 percent

In 2006, ____ percent of successful products were developed in collaboration with others.

79

What percent of all patents come from large companies?

80 percent

More than ____ percent of Salesforce.com's employees are involved in philanthropy.

85

Which of the following is not an independent contractor you would expect to find on an entrepreneur's extended team?

Board of Advisors

Which of the following is not a professional advisor to an entrepreneur?

Board of Directors

Entrepreneurs can reach a price that can be tested in the market by considering costs, competitor pricing, and ____.

Both "feedback from customers" and "feedback from value chain partners"

Which of the following is a service that consultants do not provide?

bringing the activity in-house

Today, ____ is growing faster than any modern economy.

China

____ on a regular basis trains the mind to shift quickly into the creative mode.

Contemplation

Which of the following is one of the three broad questions that a feasibility analysis answers?

Do the capital requirements, based on estimates of sales and expenses, make sense?

The second most commonly cited source of new venture ideas is ____.

business associates

What is the phrase that is associated with the costs to produce a product when those costs have declined relative to the price of industry's goods and services?

Economies of Scale

The process of new venture formation is characterized by ____ stage(s) and ____ transition(s) or decision points

Four/ Three

Entrepreneurs typically have a vision of where they want their businesses to go, and generally that vision is on a regional, national, or (more often) ____ level

Global

technological change has facilitated _______ and a new form of creative destruction by moving _________ out of the U.S. countries to countries where labor costs are substantially less

Globalization; lower skilled jobs

____ is one of the most successful new product idea companies in the world.

IDEO

More than perhaps anything else, the 1990s were characterized as the ____.

Information age

The ____ microprocessor affected the technological revolution of the 1970s.

Intel

Brand equity, advertising expense, and the rate of industry growth are part of which of Porter's forces?

Intensity of competitive rivalry

The _____ school of thought proposes an integrated input/output model to describe the entrepreneurial process

Morris, Lewis, and Sexton

____ is the exchange of information and resources among individuals, groups, or organizations whose common goals are to mutually benefit and create value for the members.

Networking

A/An ____ analysis includes the political, sociocultural, economic, and technological environments in which the new venture will operate.

PEST

Analyzing the government, demographics, cost of capital, and rate of change are all part of the _____.

PEST analysis

____ was not alone in asserting that the United States was rapidly and by necessity becoming an entrepreneurial economy.

Peter Drucker

The model most commonly used to help an entrepreneur analyze an industry is ____.

Porter's Five Forces Model

____ has provided a way of effectively looking at the structure of an industry and at a company's competitive strength and positioning relative to that industry and to the markets it serves.

Porter's five forces

__________ entrepreneurship is characteristic of small lifestyle business

Replicative

n 2006, the ____ was signed into law to provide relief to owners whose marks have been tarnished by third-party marks.

Trademark dilution Revision Act

A ____ will tell the entrepreneur whether people are interested in the product/service and prove that it's worth the time and money to build out a more elaborate site.

beta site

To determine whether the accounting and control procedures are adequate once the new venture is beyond the startup phase and is growing consistently, ____.

an annual audit is needed

To analyze specific aspects of the macro-environment, an entrepreneur should use _______

a PEST analysis

Which of the following is not eligible for a patent?

a naturally occurring substance

Identifying and profiling the first customer, estimating potential demand from that customer, and identifying subsequent customer segments and needs to grow the company are goals of market research for ____.

a new company

____ status or legitimacy is derived principally from the entrepreneur's education and experience.

achieved

Which of the following is not a component of a business model?

action model

An informal panel of experts and other people who are interested in seeing the new venture succeed is a/an ____.

advisory board

The principle of ____ means looking for the strengths or positive aspects of a problem definition first.

affirmative judgement

Intellectual-property rights are protected by ____.

all of these

Critical entrepreneurial skills include ____.

all of these choices

The ____ is different from the other financial statements in that it looks at the financial health of the business at a single point in time.

balance sheet

The firm's ____ should be thought of as a business partner who can be a source of information and networking; help make decisions regarding capital needs; and assist in preparing pro forma operations and cash-flow analyses.

banker

____ are primarily interested in the company's margins and cash flow projections.

bankers/lenders

The business concept should ____.

be a quick "elevator pitch"

Customer identification, customer validation and ____ are all part of the product development cycle.

business creation

The need of Internet companies to protect their ways of doing business is addressed by a/an ____ patent.

business method

Entrepreneurs typically face two types of POC: the technology or product POC, and the ____ POC.

business model

The two fundamental activities that comprise a/an ____ are creating and capturing value.

business model

A ____ depends on a feasible business model that has been market-tested and is reliable.

business plan

Pro forma financials are a key part of the ____.

business plan

There are two types of ____ agreements: a cross-purchase agreement and a stock redemption agreement.

buy-sell

Upon the death of a partner, the insurance proceeds can be used to keep the business going or to buy out the deceased partner's interest under a/an ____.

buy/sell agreement

Many weak business concepts can be eliminated from consideration ____.

by answering a few simple questions

A financial vehicle that enjoys limited liability in that its owners are liable for its debts and obligations only to the limit of their investment is a ____.

c-corporation

____ pay taxes on profits and their shareholders pay taxes on dividends they receive, resulting in double taxation.

c-corporations

A financially healthy company will see its major source of ____ coming from operating sources, such as sales.

cash inflows

To operate as a sole proprietor requires nothing more than a ____.

certificate of doing business under an assumed name

Thinking like a/an ____ can stimulate the natural creativity in everyone.

child

In a/an ____, corporate stock is owned privately by a few individuals and is not traded publicly on a securities exchange.

closely held corporation

____ is the process that moves an innovation from the laboratory to the market.

commercialization

When an entrepreneur decides to use a team effort to create the new venture, he or she generally looks for people who have ____ skills.

complementary

Reducing some of the risk of entrepreneurship and building confidence can be achieved by ____.

conducting a feasibility analysis

According to Rosabeth Moss Kanter, accountability, collaboration, and initiative are all elements of ____.

confidence

A precise ____ increases the chances that the business concept will meet the customers needs.

customer definition

A/An _____ lays out the benefits, distribution channel, product/service, and potential competition for each identified customer segment.

customer matrix

Age, income level, education, and buying habits are all components of the ____.

customer profile

All of the following are part of an entrepreneur's extended network except ____.

customers

entrepreneurship provides many benefits to society, cheifly _______, new industry formation, and ______

economic growth; job creation

A/An ____ reflects all the possible choices to solve the problem and its related outcomes.

decision tree

Anyone investing in a new venture has four principal concerns: rate of growth, return on investment, ____ and ____.

degree of risk/ protection

As more firms enter an industry, intense ____ occurs.

differentiation

A/an ____ statement is, essentially, a cash budget or sources and uses statement,

direct cash flow

Peter Drucker asserted, "The entrepreneurial mystique, it's not magic, it's not mysterious, and it has nothing to do with the genes. It is ____."

discipline

____ sees opportunity arising from shifts in external factors in the market or industry, such as regulation, technological changes, and changes in customer preferences.

discovery theory

____ innovations can find no identifiable market in the earliest stages of development

disruptive

A value chain includes the

distribution channel

Internet ventures have unique metrics because they typically start with three types of "customers": visitors, contributors, and ____.

distributors

Responding to this entrepreneurial drive, big business in the 1980s found it necessary to downsize and reverse the trend of ____ it had promulgated for so long.

diversification

Sole proprietorships offer several advantages, which include all of the following except ____.

dividends are paid to owners

The ____ protects inventors from infringers who would violate a patent by making small, insignificant changes in the claims.

doctrine of fair use

A corporation that is chartered in the state in which it will do business and issue stock is a/an ____.

domestic corporation

Gartner's conceptual framework for the new venture creation process focuses on three major categories of variables: the individual entrepreneur and what he or she brings to the process; the ____; and the ____.

environemnt; organization

One of the biggest incentives for taking on the risk of a startup venture is the opportunity to acquire a/an ____ stake and participate in the potential upside if the startup is a success.

equity

Which of the following rules does not apply to idea generation?

evaluate individual ideas before modifying them

Noller developed a formula that suggests that creativity is a function of three dynamics: knowledge, imagination, and ____.

evaluation

Entrepreneurs should keep in mind that the purpose for doing a/an ____ is to sell the business.

executive summary

Today most investors want to see a well-written ____ that tells a compelling story and grabs their interest.

executive summary

A high-tech venture with significant up-front funding and the potential for exponential growth requires a management team of ____.

experienced professionals

When choosing people to serve on the board of directors, consider those who have all of the following characteristics except ____.

exploitative behavior

The industry in which a new venture will operate is the business's ____.

external environment

A feasibility study and a business plan are essentially the same.

false

A high-growth venture cannot be started as a sole proprietorship.

false

A highly focused executive summary and pitch presentation are best developed from a completed business plan.

false

A new venture's health is measured by its balance sheet.

false

An accountant is your advocate, but your lawyer is bound by rules and ethics that do not permit advocacy.

false

Choosing a good attorney is a time-consuming but vital task that should be accomplished immediately after startup.

false

Common types of roadblocks to creativity are personal, relational, and environmental.

false

Drucker's five questions are the basis for the development of the business concept.

false

Entrepreneurs build businesses based on concepts that never existed before.

false

Industries remain static or stable over time, so it is easy for the entrepreneur to research and understand the industry.

false

Investors consider research and development, engineering, and testing of new products to be low-risk, so funding for these activities is not difficult for the entrepreneur to secure.

false

Investors tend to look for technology-driven companies rather than market-driven companies.

false

LLCs are becoming a popular vehicle for companies that may have global investors, because the C- corporation does not permit foreign ownership.

false

Laws and phenomena of nature, naturally occurring substances, abstract mathematical formulas, and ideas are eligible to be patented.

false

Nonprofit corporations are not allowed to make a profit, according to the Internal Revenue Service.

false

Price skimming is finding out what customers are willing to pay for the product and pricing it accordingly.

false

Product development and intellectual-property development are not closely intertwined.

false

Stage 3 of the business model is to calculate how to create value for the customer.

false

The executive summary of the business plan should be no more than two pages long.

false

The law requires a partnership to draw up a written partnership agreement based on the Uniform Partnership Act.

false

The least important part of any financial plan is the assumptions on which it is based.

false

The strongest product POC is a working prototype.

false

With the benefits of information and systems technologies, the success rate of new product development has climbed to 85 percent at launch.

false

Working boards are crucial in the startup phase.

false

a business concept is a concise description of an opportunity that contains seven essential elements

false

an effective business model should be built in seven stages

false

business concepts are developed quickly and can be funded and operational within 2 days

false

entrepreneurial ventures are not responsible for significant job creation

false

in an entrepreneurial endeavor, risk is correlated with reward; that is, the higher the risk taken, the greater the reward expected

false

it's been proven that entrepreneurs start businesses solely to make money

false

most businesses produce either a product or service, but not both

false

research has determined that effective and efficient business planning correlates with business success

false

target market research provides some of the least important data needed to decide who the first customer will be

false

the chances of success for a new business startup are determined primarily by size of the initial financial investment

false

The intense effort required of a startup can be shared when the entrepreneur uses a ____.

founding team

The market research process has ____ steps.

four

as entrepreneurial firms achieve noticeable levels of success and as new industry grows, it generally becomes more_______ as a result of so many firms competing for position

fragmented

In a/an ____, all partners assume unlimited personal liability and responsibility for the management of the business.

general partnership

When one or more people agree to assume unlimited personal liability and responsibility for management of the business, a ____ exists.

general partnership

The best way, and sometimes the only way, to accurately gauge customer demand is to ____.

go into limited production

How a product or service is priced is a function of the company's ____.

goals

The main reason for new product development failure is lack of ____.

good marketing and industry analysis

Most of the great businesses that have been successful for at least 50 years (companies such as Walt Disney, Sony, and Merck) did not start with a/an ____.

great idea

In general, venture capitalists say that they will take a ____ and a large market opportunity in a fast-growing area over a great idea any day

great team

entrepreneurs are taking advantage of several sub-trends within the _______ sector, including eco-iconic marketing

green power

research has confirmed that entrepreneurs are motivated intrinsically by such things as the desire for _____

growth

A new industry goes through volatile and rapid changes as companies and their respective technologies jockey for position and the right to determine industry standards. This is what stage of the industry life cycle?

growth and adaption

The section of the business plan that presents the strategy that will be used to ensure that the business is sustainable and continues to scale over its life is included in the ____.

growth plan

____ comprise over two-thirds of all sole proprietorships, partnerships, and S-corporations in the United States.

home-based businesses

The ____ produces about three times as many ideas per unit of time and these ideas are generally of much higher quality.

hybrid process

The first two steps in building a business model involve ____ and ____.

identifying position in the value chain / creating customer value

Income derived from for-profit activities in a nonprofit corporation is subject to ____.

income taxation

The vast majority of innovations today are ____.

incremental

Strictly speaking, Schumpeter did not see ____ as innovation even if they generated economic growth.

incremental improvements

Parties who run their own businesses and are hired by the entrepreneur to do a specific job are ____.

independent contractors

____ is the first step in an anthropological approach to customer observation. \

induction

A/An ____ is a group of companies that are engaged in similar or related activities.

industry

Birth, growth and adaptation, and shakeout are stages of the ____ life cycle.

industry

One of the best ways to discover an opportunity is to study a/an ____ in depth.

industry

The "first customer" is the customer who pays for the product or service and is the customer with the most ____.

pain

"How is the industry described?", "Is the industry growing?", and "Where are the opportunities?" are all examples of the questions that should be answered when conducting the ____.

industry analysis

____ is found if a mark is likely to cause confusion with a trademark already existing in the marketplace.

infringement

Creativity is the behavior that results in ____.

innovation

____ is concerned with the process of commercializing or extracting value from ideas.

innovation

____ is finding a new way to do something or improving on an existing product or service.

innovation

Denmark, Israel, United Arab Emirates, and the United States have ____ economies

innovation-driven

A board member who is a founder, employee, or retired manager of the firm is a/an ____.

inside board member

The 1970s saw the beginning of three significant trends that would forever change the face of business: macroeconomic turmoil, ____, and the technological revolution.

international competition

Toward the end of the 1980s, researchers observed that young entrepreneurial ventures were ____ much earlier than expected and at a much smaller size.

internationalizing

Entrepreneurs must determine how they will make value for all except which of the following?

internet

Which type of business is most likely to be launched on the strength of a feasibility analysis alone?

internet-related analysis

companies engage in skunk works, ____ and ____ to simulate an entrepreneurial environment within the organization.

intrapreneurship / acquisition

Creativity is the basis for ____, which is discovering something that did not exist previously.

invention

The feasibility analysis includes all of the following except ____.

investor analysis

___ life insurance is a policy on the life of principal members of the partnership, usually the senior partners.

key person

The new millennium ushered in what many refer to as the ____.

knowledge economy

Which of the following is not a flaw that investors commonly find in business plans?

lack of enthusiasm

Poor execution, time-to-market increases, and missed first-to-market opportunities are some of the problems associated with ____.

lack of new product development resources

Which of the following is not a barrier to becoming self-employed?

lack of training

A/an ____ is an advocate, but a/an ____ is bound by rules and ethics that do not permit advocacy.

lawyer/ accountant

The board is headed by the chairperson, who, in a new, private venture, is typically the ____.

lead entrepreneur

____ staff is a way for a new business to enjoy the advantages of having the kind of skilled work force available to major corporations without incurring so many of the expenses.

leasing

A corporate form that enjoys the pass-through tax benefits of partnerships in addition to the limited liability of a C-corporation is known as a ____.

limited liability company

Whenever there is competitive rivalry, prices tend to be ____.

lower

Which of the following is not a principle concern of investors?

maket analysis

____ is a critical part of the everyday life of an entrepreneur and is a skill that must be developed and exercised carefully.

making effective decisions

A/An ____ is a grouping of competitors that an entrepreneur targets.

market

____ with customers should give the entrepreneur confidence that the solution being provided is recognized as valuable by customers.

market research

In a/an ____ cost structure, the primary costs of the business come from customer acquisition.

marketing

Twitter has been the leader in facilitating a new trend known as ______

mass mingling

An executive summary should demonstrate a clear link between the ____ and the ____.

pain/solution

A very specific task that an entrepreneur can undertake to prepare for success is to find/be a ____.

mentor

The new environment for business planning makes the case for the importance of a feasibility study and ____ to prove the concept and enable the founding team to launch the venture before completing the formal business plan.

micro strategies

The ____ for POC consists of three primary elements: outcomes, assets, and actions.

micro-strategy

Closing the door, shutting off the phone, and turning off email to prepare to do some creative thinking are all examples of how you can ____.

minimize distractions

What of the following components of the business concept is least likely to ensure the success of the venture?

money

____ represent(s) how the startup uses its cash to cover its overhead before it generates a positive cash flow from operations.

monthly burn rate

Most businesses today produce both products and services that provide ____, which gives the company a competitive advantage.

multiple revenue streams

In the United States, ____ entrepreneurship is most prevalent

necessity-driven

____ serve as gateways to other networks, exerting influence between groups or networks rather than within groups.

network brokers

Lack of good market analysis, technical problems, and human error are reasons for ____.

new product failure

A corporation established for charitable, public (scientific, literary, or educational), or religious purposes or for mutual benefit (trade associations, tennis clubs), as recognized by federal and state laws, is a ____.

non profit corporations

Only about 25 percent of all U.S. businesses are ____, but they account for 67 percent of all sales transactions.

non-profits

The ____ gives information about the projected profit or loss status of the business for a specified period of time.

none of these choices

Robert Chambers used the ____ organizational structure as a vehicle to help low-income people make better purchasing decisions when it came to cars

nonprofit

In forming a ____, the entrepreneur gives up proprietary interest in the organization and dedicates all the assets and resources of the corporation to tax-exempt activities.

nonprofit corporation

New industries are born when technological change produces a/an ________ opportunity that an enterprising entrepreneur seizes

novel

All of the following are types of nonprofit organizations except ____.

novelty shops

The Law of Agency defines the terms employee and independent contractor ____.

on issues of trade

The Small Business Administration Office of Advocacy reports that ____ of new businesses survive at least five years.

one-half

Women now compromise ____ of all entrepreneurial activity globally

one-third

The ____ plan focuses on issues related to processes the venture will own and outsource, as well as where it will get its raw materials, and what type and quantity of labor will be required.

operations

The ____ plan specifies the legal form of organization that the venture will take, whether that be sole proprietorship, partnership, LLC, or corporation.

organization

____ make(s) all partners responsible for the obligations that each incurs in the course of doing business.

ostensible authority

A board member with no direct connection to the business is a/an ____.

outside board member

____ product development provides a young firm with a network of expertise that it couldn't afford to hire in-house.

outsourcing

Which of the following is not a technique that can help entrepreneurs arrive at a realistic forecast of demand for their product or service?

prepare revenue forecasts

An accountant can help a growing business in all of the following except ____.

preparing documents for acquisition of intellectual-property rights

Attorneys can provide the new venture with a wealth of support, which includes all the following except ____.

preparing financial statements

____ starts with a high price to establish uniqueness; then drops the price as competitors enter the market.

price skimming

Observation, online or in-person surveys, phone surveys, interviews, and informal focus group are all ways to collect ____ data.

primary

To access the timeliest information, it is important to gather ____ on an industry.

primary data

In the context of patent protection, ____ is knowledge that is publicly available or was published prior to the date of the invention⎯that is, before the filing of the patent application.

prior art

____ is knowledge that is publicly available or was published prior to the date of the invention⎯that is, before the filing of the patent application.

prior art

The entrepreneurial team owns all or the majority of the stock in a ____.

privately held corporations

Most business ideas stem from a/an ____ that an entrepreneur sees in his or her immediate environment.

problem

Creative ____ is about linking imagination and intelligence, emotion, and logic to arrive at the optimal opportunity.

problem solving

Creating a ____ is the first step in calculating startup capital requirements.

process map

Firms that are most likely to survive over the long term are those that display superior levels of reliability and accountability in performance, ____, and structure.

processes

In service businesses, the cost of goods sold (COGS) is equivalent to the time expended to ____ and ____ the service.

produce/ deliver

It is important to ensure that the final price to the customer or end user is tolerable, given all the mark-ups along the value chain. This is called ____.

product bundle pricing

In a manufacturing business, which of the following is not part of the calculations used to forecast the costs of goods sold (COGS)?

product delivery

____ can be defined as the activity that transforms a set of requirements into a format that brings all the elements into an integrated whole or system.

product design

Opportunity recognition, technical feasibility analysis, and prototype building and field testing are elements of the ____.

product development cycle

One part of the feasibility analysis addresses the business process. This part is called the ____.

product/service analysis

Which section of the business plan details features and benefits as well as the plan for prototyping and testing?

product/service plan

State law permits certain professionals, such as health care professionals, engineers, accountants, and lawyers, to form corporations called ____.

professional service corporations

Which ratio uses net income and net sales from the income statement to give the percentage of each dollar of sales remaining after all costs of normal operations are accounted for?

profit margin

____ change takes place as companies in the industry grow geographically and increase profits through innovations in operations, processes, distribution, and technology.

progressive

Providing more opportunity for the clarification and discussion, the observation of nonverbal communication, and the high response rate are all examples of the advantages of ____.

structured interviews

nourish international, a nonprofit run by ____, raises money to help eradicate global poverty.

students

Most successful startups involve ____.

teams rather than solo entrepreneurs

Early economists recognized that ____ is the primary force behind rising standards of living and that ____ innovation would determine the success of many nations in the future.

technology; technological

Which of the following is not part of direct selling expenses?

telephone expenses

The feasibility analysis is about ____ a new business concept.

testing

The question of how to deliver the benefit to the customer is answered by ___.

the distribution channel

A good starting point for gathering secondary market data is ____.

the internet

Which of the following is not a concern for lenders when they consider an entrepreneur for a loan?

the number of strategic partners the venture has

Each partner owns and has use of the property acquired by the partnership, unless otherwise stated in ____.

the partnership agreement

Once the entrepreneur determines where the new venture lies in the value chain, he or she must create a ____.

timeline

One mistake that entrepreneurs make is to set their prices so that they cover ____ costs plus a margin the entrepreneur is expecting to achieve.

total

A ____ consists of a novel and confidential formula, device, idea, process, pattern, or compilation of information that gives the owner a competitive advantage in the marketplace.

trade secret

____ consist(s) of a formula, device, idea, compilation of information, process, or pattern.

trade secrets

Like patents, ____ can suffer from infringement, counterfeiting, or misappropriation.

trademarks

A month-by-month timeline shows a year in the life of a business with key milestones and anticipated ____.

triggers

A board of directors can be made up of inside or outside members or a combination of the two.

true

A patent gives the patent holder the right to defend the patent against others who would attempt to manufacture, use, or sell the invention during the period of the patent.

true

A process map details how information flows through the business.

true

A product life cycle is analogous to an industry life cycle with periods of product development, market introduction, growth, maturity, and decline.

true

The North American Industry Classification System (NAICS) is the classification system that was developed by the United States, Canada, and Mexico to identify industries and to allow for common standards and statistics across North America

true

The board is headed by the chairperson, who, in a new, private venture, is typically the lead entrepreneur.

true

The product development cycle consists of a series of tasks leading to introduction of the product to the marketplace.

true

The time prior to a firm's birth is called the fuzzy front end.

true

Today many enterprising people are turning to nonprofit ventures to realize their entrepreneurial dreams.

true

When an entrepreneur is attempting to gauge levels of demand, the customer is the prime source of information.

true

When choosing a banker, the entrepreneur planning a new venture should seek out an officer with the rank of assistant vice president or higher.

true

Where the new venture lies in the value chain will determine what its margins are, who its customer is, and how much it can charge for its products and services.

true

business models are doomed to failure when the underlying logic about the future is incorrect

true

entrepreneurial ventures and small businesses are related, but they are not the same in most respects

true

entrepreneurial ventures are responsible for job creation that is disproportionate to the net total new jobs created in the U.S. over the past 25 years

true

entrepreneurs erect roadblocks that prevent them from being creative

true

entrepreneurs identify their primary customers by recognizing a need, or pain, in the market

true

entrepreneurs start businesses for many reasons, but the number one reason appears to be their need for independence and to create something new

true

entrepreneurship can be found in some form in every country, race, age group, and (increasingly) in women as often as men

true

entrepreneurship is a form of creative destruction

true

entrepreneurship is a personal journey that begins in the mind of the nascent entrepreneur

true

one of the biggest problems that scientists and engineers face when they decide to consider entrepreneurship is the expectation that there should be formulas and straight forward "right or wrong" answers

true

radical change occurs in an industry when innovation results in the obsolescence of previous technology and drives old line companies out of business

true

stage seven of Norman Seeff's creative process represents the emotional fulfillment of the original dream

true

the creativity journey begins with maintaining a journal of one's thoughts and ideas

true

the environment in which a person works can either stimulate or discourage creativity

true

the government can limit entry to an industry or market through strict licensing requirements and by limiting access to raw materials via laws or high taxes and to certain locations by means of zoning restrictions

true

the vital issue for entrepreneurs is not avoiding failure but minimizing the cost of possible failure

true

when capital markets make it difficult to find funding, entrepreneurs are less likely to start new ventures from scratch

true

without the support of corporate senior management, it will be difficult to move any entrepreneurial project forward fast enough and far enough to be successful

true

Most countries require that an invention be manufactured in the country within ____ of the issuance of the foreign patent.

two years

What of the following is not a benefit to the customer?

uniqueness

The three major categories of patents are design patents, business method patents, and ____ patents.

utility

____ patents are the most common type of patent.

utility

Entrepreneurs differ from others who have ideas in that they know how to extract ____ from those ideas to creative commercial potential.

value

____ is created when the business is adequately capitalized and has highly regarded investors, an experienced management team, customers, a unique technology, product, or service, the ability to continually innovate, and a rapidly expanding market.

value

Which of the following is not one of the categories into which the resources of a company are often divided?

value chain

The strategic choices that a business model addresses should reflect both the ____ and the ____ processes.

value creation/ value capture

A ____ is the community of partners, suppliers, and other members of the value chain with which the venture does business

value network

The late 1980s brought the "dot com" bubble and the rush of the ____ community to position itself for what appeared to be a new way of doing business.

venture capital

The chances of success are greater when the lead entrepreneur and the team share the same ____ for the new venture.

vision

Entrepreneurs rely on their ____ for objective advice.

weak ties

The ____ in a professional network are the entrepreneur's acquaintances and business contacts.

weak ties

The best question to ask to define a problem is ____?

what is the source of the problem