ENT midterm

Which of the following items is typically NOT included in a concept statement? A description of how much money the new venture needs A description of how the product or service will be sold and distributed The intended target market The benefits of the product or service A brief description of the company's management team

A description of how much money the new venture needs

Money owed to a company by its customers is referred to as ________. Inventory Accounts obtainable Accounts receivable Accounts payable Accounts collectable

Accounts receivable

According to the textbook, the most important function of the pro forma statement of cash flows is to project whether the firm will have sufficient _______. Cash to meets its needs. Income to meet its payroll on a weekly or monthly basis. Inventory to meet its sales and production forecasts. Income to exceed industry norms. Short term assets to cover its short term liabilities.

Cash to meets its needs.

Brad Jones is in the process of opening an electronics supply company and is working on the portion of his business plan template that describes how he will deliver his products and services to his customers. The portion of the business plan template that Brad is working on is referred to as ________. Grids Conduits Channels Linkages Network

Channels

Tyler Smith founded a firm that has a subscription-based business model. Although Tyler has averaged 600 new subscribers per month, she also loses 450 subscribers per month. The number of subscribers that Tyler loses each month is referred to as ________. Destruction Erosion Agitation Attrition Churn

Churn

________ refers to the number of subscribers that a subscription-based business loses each month. Churn Agitate Stir Attrition Erosion

Churn

Each quarter, Craig Anderson, who owns a chain of auto repair shops, does a detailed analysis of his firm's competitors. This analysis is called ________ analysis. Strategic Challenger Competitor Industry Participant

Competitor

The Resources section of the Barringer/Ireland Business Model Template consists of the ________ and ________ boxes. Channels; key partners Revenue streams; key assets Business mission; core competency Core competency; key assets Core competency; product/market scope

Core competency; key assets

In the Barringer/Ireland Business Model Template, ________ describes how the firm plans to compete relative to its competitors. Grand strategy Tactical strategy Core strategy Value proposition Strategic plan

Core strategy

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

Core strategy

Jenna Franklin is completing the portion of the Barringer/Ireland Business Model Template that describes the most important costs that will be incurred to support her business model. Jenna is completing the ________ structure box in the business model template. Overhead Payment Outlay Cost Expense

Cost

Jessica Smith is thinking about starting a chain of fitness centers for young adults ages 18-30. Which of the following is NOT an appropriate criterion for Jessica to test her idea against? Determine whether a fitness center for young adults ages 18-30 meets the threshold of being a good idea. Determine whether opening a fitness center for young adults ages 18-30 is timely. Determine whether opening a fitness center for young adults ages 18-30 is a concept that creates value for its buyer or end user. Determine whether the "window of opportunity" is open. Determine the extent to which the notion takes advantage of an environmental trend, solves a problem, or fills a gap in the marketplace.

Determine whether a fitness center for young adults ages 18-30 meets the threshold of being a good idea.

According to the textbook, the first step in a competitor analysis is to ________. Determine who the competition is Develop a marketing plan Study the strength of the industry Study the external environment Develop the strategic plan

Determine who the competition is

According to the textbook, the three different types of competitors a business will face are ________. Indirect, fleeting, and future Serious, cautious, and future Direct, indirect, and future Potential, fleeting, and indirect Potential, direct, and upcoming

Direct, indirect, and future

A company's ability to productively utilize its assets relative to its revenue and its profits is referred to as _______. Stability Profitability Effectiveness Liquidity Efficiency

Efficiency

Brain Sentry is starting a firm in the small industry that helps football teams discern whether a player has suffered a concussion. This industry is still so new that no standard operating procedures have been developed. The industry Brain Sentry is entering is an example of a(n) ________ industry. Mature Emerging Fragmented Global Declining

Emerging

The ______ is a short overview of the entire business plan. Managerial review Abstract Founder's introduction Summary statement Executive summary

Executive summary

A(n) ________ industry is an industry that is experiencing significant international sales. Emerging Global Mature Declining Fragmented

Global

Which of the following is a disadvantage of a C corp.? Raising capital is easier than a partnership or sole proprietorship. No restrictions exist on the number of shareholders. Stock is liquid if traded on a major stock exchange. Limited liability. Income is subject to double taxation.

Income is subject to double taxation.

Which of the following selections correctly matches the financial statement with its description? Income statement- tells how much a firm is making or losing. Statement of cash flows- depicts the structure of a firm's assets and liabilities. Balance sheet- shows where a firm's cash is coming from. Balance sheet- tells how much a firm is making or losing. Income statement- depicts the structure of a firm's assets and liabilities

Income statement- tells how much a firm is making or losing.

In the context of competitor analysis, ________ competitors offer close substitutes to the product sold by the firm completing the analysis. Impending Indirect Future Direct Potential

Indirect

Terry Washington recently started a new firm in the financial services industry. Prior to starting his firm, he spent considerable time doing research on the potential of the industry. The research that Terry was doing is called ________ analysis. Industry Business Target market Sector Commercial

Industry

A ________ is a single Web page that typically provides direct sales copy, like "click here to buy a Hawaiian vacation." Sales page Landing page Marketing page Call for action page Destination page

Landing page

The _________ is a form of business organization that is rapidly gaining popularity in the US. The concept originated in Germany and was first introduced in the US in the state of Wyoming. General partnership C corp. Limited partnership Limited liability company Subchapter S corp.

Limited liability company

Billy Goat Ice Cream, the company profiled in the opening feature in ch. 7, is a ______. Partnership Limited liability corp. Sole proprietorship Schedule C corp. Schedule S corp.

Limited liability corp.

A _________ sets forth the rights and duties of the general and limited partners, along with the details of how the partnership will be managed and eventually dissolved. Business partnership agreement Restricted partnership agreement Limited partnership agreement Limited partnership concurrence Partnership accord

Limited partnership agreement

A competitor analysis should be included in the _______ section of a business plan. Operations plan Market analysis Company description Management team and company structure Industry analysis

Market analysis

A(n) ______, in a business plan context, is a noteworthy event in the past or future development of a business. Target Milestone Aspiration Intention Signpost

Milestone

A(n) ______ statement describes why a company exists and what it aspires to become. Operations Values Strategic Mission Tactical

Mission

A firm's profit margin, or return on sales, is computed by dividing ________. Net income by net sales Operating income by gross profit Gross profit by net sales Net income by gross profit Net income by cost of sales

Net income by net sales

There are two types of disruptive business models — ________ and ________. Standard; unique New-market; low-end New-product; new-market Low-end; high-end New-channel; high-quality

New-market; low-end

A(n) ______ business plan, which is intended to be a blueprint for a company's operations, is 40-100 pages long and is meant primarily for an internal audience. Summary Operational Tactical Full Deliberate

Operational

What section of the business plan deals with the day-to-day operations of a company? Executive summary Financial plan Operations plan Industry analysis Marketing plan

Operations plan

Which of the following was NOT identified in the textbook as one of the common traits and characteristics of entrepreneurs? Lengthy attention span Pessimistic disposition Tenacious Tolerant of ambiguity Self-starter

Pessimistic disposition

_________ stock is typically issued to conservative investors who have preferential rights over common stockholders in regard to dividends and to the assets of the corporation in the event of liquidation. Common Partial Restricted Limited liability Preferred

Preferred

According to the textbook, the ______ are the heart of the financial section of a business plan. Pro forma financial statements Budgets Break even analysis Sources and uses of funds statements Financial ratios

Pro forma financial statements

________ feasibility is an assessment of the overall appeal of the product or service being proposed. Industry/market Product/service Consumer Purchaser/end-user Industry/market segment

Product/service

According to the textbook, the five competitive forces included in the Five Forces model determine the average ________. Failure rate for the firms in an industry Growth rate for the firms in an industry Sales for the firms in an industry Rate of return for the firms in an industry Rate of new business starts in an industry

Rate of return for the firms in an industry

According to the textbook, the most practical way to interpret or make sense of a firm's historical financial statements is through ______. The preparation of pro forma financial statements Regression analysis Percentage analysis Profit analysis Ratio analysis

Ratio analysis

Which of the following is an example of a long-term liability? Owner's equity Current portion of real estate mortgage Accounts payable Real estate mortgage Accrued expenses

Real estate mortgage

The two primary issues to consider in organizational feasibility analysis are management prowess and ________. Market timeliness Concept testing Total startup cash needed Target market attractiveness Resource sufficiency

Resource sufficiency

SafetyWeb is a Web-based service that helps parents protect their children's online reputation, privacy, and safety. Which of the following approaches to identifying an opportunity was most likely the impetus for SafetyWeb? Studying government reports Observing trends Finding gaps in the marketplace Solving a problem Talking to consumers

Solving a problem

Which of the following is an advantage of a C Corp.? Setting up and maintaining one is more difficult than for a sole proprietorship or a partnership. Income is subject to double taxation. Stock is liquid if traded on a major stock exchange. Business losses cannot be deducted against the shareholders' other sources of income.

Stock is liquid if traded on a major stock exchange.

Montana Sky Trails leads multiday outdoor adventure trips for private groups and corporate clients to various locations across Montana. The company was started by Justin Smith, an individual that gave up a prestigious job in banking because Montana Sky Trails better accommodates his personal lifestyle. Montana Sky Trails is an example of a(n) ________ firm. Statutory Lifestyle Entrepreneurial Standard-of-living Salary-substitute

lifestyle

According to the textbook, there are three types of startup firms: ________.

lifestyle firms, salary-substitute firms, and entrepreneurial firms

Jessica Marsh just took a job with Instagram. As part of her employment contract, she signed an agreement that states that she will not disclose any of Ins.'s trade secrets. The agreement that Jessica signed is called a(n) ___________ agreement. Nondisclosure Ethics Non breach of trust Legitimacy Binding confidentiality

nondisclosure

The Savvy Entrepreneurial Firm feature in Chapter 7 focuses on the topic of vesting company stock. According to the feature, a typical startup vesting schedule lasts ________ and includes a 12-month cliff. 12 to 24 months 24 to 36 months 12 months 48 to 60 months 36 to 48 months

36 to 48 months

According to the textbook, research results over time consistently suggest that somewhere between ________ percent of those who start businesses got their ideas through social contacts. 10 and 20 50 and 60 30 and 40 40 and 50 20 and 30

40 and 50

The Savvy Entrepreneurial Firm feature in Chapter 3 focuses prototyping. According to the feature, a prototype is ________. An early sample, model, or release of a product that is built to test a concept or a process Hiring consultants to provide them advice Observing how customers acted when buying their product Conducting Internet research Studying industry trends

An early sample, model, or release of a product that is built to test a concept or a process

Which of the following statements regarding survival rates of entrepreneurial firms in the United States is correct? As high as 80 percent after four years As high as 60 percent after four years As high as 70 percent after four years As high as 50 percent after four years As high as 90 percent after four years

As high as 50 percent after four years

_________ are itemized forecasts of a company's income, expenses, and capital needs and are also an important tool for financial planning and control. Owner's equity statements Financial statements Statements of cash flows Profitability statements Budgets

Budgets

The first box in the Barringer/Ireland Business Model Template is ________. Product/market scope Channels Revenue streams Business mission Target market

Business mission

Which of the following business plans matches with its appropriate emphasis? Summary business plan is meant primarily for an internal audience and works best as a tool for creating a blueprint for a company's operations and providing a guidance to operational managers. Summary business plan works best for companies in the early stages of development that want to "test the waters" to see of investors are interested in their idea. Full business plan works best for companies in the early stages of development that want to "test the waters" to see if investors are interested in their idea.

Summary business plan works best for companies in the early stages of development that want to "test the waters" to see of investors are interested in their idea.

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

Target

WriteLab, the company profiled in the opening feature of Chapter 5, believes it has created a barrier to entry to enable it to maintain a leadership position in the education industry. Its barrier to entry is ________. The price-point of its product That Donald McQuade, one of its co-founders, is well-established in the writing community Its social mission Its economies of scale The strength of its brand

That Donald McQuade, one of its co-founders, is well-established in the writing community

Which of the following is an incorrect approach to administering a concept test? If time permits, a concept statement should be used in an iterative manner and distributed to several groups of people. The best candidates to distribute a concept statement to are family and friends. A short survey should be attached to the concept statement to solicit feedback. The concept statement shouldn't exceed one page. After the concept statement is developed, it should be shown to at least 10 people.

The best candidates to distribute a concept statement to are family and friends.

Which of the following is NOT one of the standards that a business must meet to qualify for status as a subchapter S corp.? It can have no more than 100 members (husbands and wives count as one). The business must be a subsidiary of another corp. All shareholders must agree to have the corp. formed as a subchapter S corp. It can have only one class of stock issued and outstanding. The shareholders must be US citizens.

The business must be a subsidiary of another corp.

A prototype is ________. A form of opportunity recognition A tool for evaluating the organizational prowess of a new firm A financial model A tool for evaluating the industry a new firm plans to enter The first physical depiction of a new product

The first physical depiction of a new product

According to the textbook, two of the most important factors to consider regarding "management prowess" are ________. The educational and functional backgrounds of the management team or sole entrepreneur Whether the members of the management team are good "networkers" and the passion the sole entrepreneur or the management team has for the business idea Whether the members of the management team have worked successfully together before and the passion the sole entrepreneur or the management team has for the business idea The passion the sole entrepreneur or the management team has for the business idea and the extent to which the management team or sole entrepreneur understands the markets in which the firm will participate Whether the members of the management team are good "networkers" and the extent to which the management team or sole entrepreneur understands the markets in which the firm will participate

The passion the sole entrepreneur or the management team has for the business idea and the extent to which the management team or sole entrepreneur understands the markets in which the firm will participate

Which of the following statements is incorrect in regard to entrepreneurial alertness? The term "entrepreneurial alertness" is often associated with a "sixth sense" that seems to allow some people to see opportunities that others miss. The research findings on entrepreneurial alertness are conclusive. Alertness is largely a learned skill. Entrepreneurial alertness is defined as the ability to notice things without engaging in deliberate search. People who have more knowledge of an area tend to be more alert to opportunities in that area than others.

The research findings on entrepreneurial alertness are conclusive.

According to the textbook, how do well-managed firms respond to the five forces that determine industry profitability? They overcome each of the forces. They focus on one force intently and excel by overcoming that force. They try to position their firms in a way that avoids or diminishes the forces. They switch industries if the forces are too compelling. They ignore the forces.

They try to position their firms in a way that avoids or diminishes the forces.

The most important issues to consider in financial feasibility analysis are ________. Total startup cash needed, management prowess, and product/service demand Target market attractiveness, resource sufficiency, and product/service demand Concept testing, total startup cash needed, and financial performance of similar businesses Resource sufficiency, industry attractiveness, and total startup cash needed Total startup cash needed, financial performance of similar businesses, and the overall financial attractiveness of the proposed venture

Total startup cash needed, financial performance of similar businesses, and the overall financial attractiveness of the proposed venture

All of the following are advantages of a sole proprietorship except _______. Business losses can be deducted against the sole proprietor's other sources of income. It is not subject to double taxation. Creating one is easy and inexpensive. Unlimited liability. The owner maintains complete control of the business.

Unlimited liability.

The What Went Wrong? feature in Chapter 1 focuses on Prim, a failed startup in the laundry industry. According to the feature, Prim failed largely as a result of ________. The individuals who started the firm were too young and inexperienced A lack of passion and resolve Lack of product/customer focus Poor execution intelligence Poor intellectual property protection

a lack of passion and resolve

Apple is an established firm that encourages and emphasizes entrepreneurial behavior throughout its various divisions. According to the textbook, Apple practices ________ entrepreneurship. Business Enterprise Tactical Strategic Corporate

corporate

Southwest airlines uses its assets very productively. Its turnaround time, or the time that its airplanes sit on the ground while they are being loaded and unloaded, is the lowest in the airline industry. In terms of the primary financial objectives of a firm, this attribute is a measure of Southwest's ________. Profitability Stability Effectiveness Efficiency Liquidity

efficiency

The ability to notice things without engaging in deliberate search is referred to as ________. Cognitive awareness Entrepreneurial alertness Cognitive alertness Individual awareness Managerial alertness

entrepreneurial alertness

The First Screen feasibility analysis template included in Chapter 3 is called "First Screen" because ________. It is the first of several "screens" that a business idea must pass through before it is considered to be feasible It is the first feasibility analysis template created It is the first and most important step in the opportunity recognition process Feasibility analysis is an entrepreneur's initial or first pass at determining the feasibility of a business idea It is the first step in a sequence of several steps that must be completed before a business idea is deemed to be feasible

feasibility analysis is an entrepreneur's initial or first pass at determining the feasibility of a business idea

Clothing boutiques and specialty shops often start because there is a need for a particular product, but large retailers like Wal-Mart and Costco can't sell enough of the item to stock it on their shelves. If a clothing boutique started to sell designer clothes or clothing for hard-to-fit people because the clothing wasn't being offered by a larger retailer, the best way to describe how that idea was recognized is ________. Observing trends Finding a gap in the marketplace Talking to consumers Brainstorming Solving a problem

finding a gap in the marketplace

________ financial statements reflect past performance and are usually prepared on a quarterly and annual basis. Ad-hoc Historical Pro forma Concurrent Chronological

historical

The three ways to identify an opportunity include ________. Observing trends, talking to consumers, and finding gaps in the marketplace Observing trends, conducting brainstorming sessions, and studying industry trade journals Studying industry trade journals, talking to consumers, and solving a problem Observing trends, solving a problem, and finding gaps in the marketplace Reading books, solving a problem, and findings gaps in the marketplace

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

Cody Rodgers is the founder of a company named Extreme Sports Apparel. The company makes apparel products for extreme sports enthusiasts such as rock climbers, triathletes, skateboarders, and BMX bikers. Cody wants his company to pursue a high level of corporate entrepreneurship. To achieve that goal, Cody's firm should be ________. Taking a "wait and see" posture, innovative, and risk taking Proactive, innovative, and risk taking Taking a "wait and see" posture, not innovative, and risk averse Innovative, risk averse, and take a "wait and see" posture Proactive, not innovative, and risk taking

proactive, innovative, and risk taking

Colorado Sandwich, Soup and Salad is a casual dining restaurant that has been owned by Stephanie Peterson for the past 14 years. The restaurant offers a menu that is typical for casual dining restaurants and affords Stephanie a level of income that is similar to what she would earn in a conventional job. According to the textbook, Colorado Sandwich, Soup and Salad is an example of a(n) ________ firm. Industry-standard Salary-substitute Entrepreneurial Quality-of-life Lifestyle

salary-substitute

Jennifer Burroughs is thinking about starting a firm in the upscale women's fashion industry. To get a full appreciation of the competitive nature of the industry, and how she might position her products, Jennifer has spent considerable time looking at industry-related publications,Hoover's Online, and ABI-Inform, which is a database that provides access to articles covering a wide-variety of business and industry related issues. Jennifer is conducting ________ research. Temporary Primary Action Secondary Purposeful

secondary

The Savvy Entrepreneurial Firm feature in Chapter 2 features three firms: Swipe Out Hunger, Soko, and Drive for Change. All three are examples of ________. Non-altruistic ventures Targeted ventures Corporate ventures Social ventures For-profit ventures

social ventures

The three types of business plan are ______. Functional business plan, contingency plan, full business plan. Summary business plan, full business plan, operational business plan. Functional business plan, full business plan, feasibility plan. Summary business plan, contingency plan, full business plan.

summary business plan, full business plan, operational business plan.

Hulu.com allows people to watch television shows and movies on the Internet. Hulu.com's business opportunity was made possible by ________ that enhanced the ability of television shows and movies to be uploaded to the Internet and played by anyone with a suitable computer and an Internet connection. Social forces Legal changes Technological advances Regulatory changes Economic forces

technological advances

According to Chapter 1, a sentiment that venture capitalists often express is that ________. A new venture's marketing plan is more important than either the strength of the entrepreneur or the strength of the business idea They would rather fund a strong entrepreneur with a mediocre business idea than fund a strong business idea with a mediocre entrepreneur They would rather fund a strong business idea with a mediocre entrepreneur than fund a strong entrepreneur with a mediocre business idea The strength of the entrepreneur and the strength of the business idea are of equal importance They would never fund a strong entrepreneur with a weak business idea

they would rather fund a strong entrepreneur with a mediocre business idea than fund a strong business idea with a mediocre entrepreneur

An event that prompts an individual to become an entrepreneur, such as losing a job, inheriting money, or accommodating a certain lifestyle, is referred to as a(n) ________. Entrepreneurial prompt Kick-off event Prompting event Initiating event Triggering event

triggering event

A common way that gaps in the marketplace are recognized is ________. When people become frustrated because they can't find a product or service that they need and recognize that other people feel the same way Via studying industry reports By observing changing environmental trends Via combined focus groups and brainstorming sessions By recognizing problems that need to be solved

when people become frustrated because they can't find a product or service that they need and recognize that other people feel the same way