Entrepreneurship Exam 2
What are the 4C's?
1. Customer solution - what the firm needs to provide to meet the customer's needs and wants. 2. Cost to customer - the total cost of the product including extended guarantees, delivery charges and financing costs. 3. Convenience to customer - providing easily accessible pre-sales info and demonstrations. 4. Communication with customer - providing up-to-date and easily accessible two-way communication links with customers to both promote the product and gain back important consumer market research information.
Which of the following statements regarding sole proprietorship is true
A sole proprietorship is owned and operated by one person
What % of issued patents is considered commercially valuable?
A very small %
______ bank loans are made on a discounted value of the receivables pledged
Accounts receivable financing
Effective marketing is based on three key elements: marketing philosophy, Market segmentation, and consumer philosophy
False
Equity financing is money invested in the venture with legal obligations to repay the principal amount or pay interest on it
False
In the marketing shift from the 4Ps to the 4Cs, price shifts to choice and promotion shifts to communities
False
It is not common for a buyer to be faced with a franchise fee of $250,000 to $1,000,000
False
It often is possible to obtain more capital and a better range of skills in a sole proprietorship than in a partnership
False
Only major strategic decisions need to be supported through market research
False
Pro forma statements show the firms present financial position
False
The entrepreneurs professionalism, and how well he or she handles the venture capitalist is far more important than being well organized and prepared
False
The federal trade commission does not provide information on franchise success
False
The freemium model of requires new and exciting content each month to build a long-term relationship with fee-paying customer
False
The traditional accounting equation is: assets + liabilities = owners equity
False
Vertical analysis is the application of ratio analysis see the many sets of financial statements
False
Which of the following statements about entrepreneurial marketing is not true
In entrepreneurial, marketing actions are constrained by resources currently controlled
Which of the following is the first step in the preparation of the cash flow budget?
Indication of outflows
It's unprofessional areas the business plan is referred to as an
Investment prospectus
A chapter 11 proceeding allows the business to operate as a ________ which means that the court appoints a trustee to oversee the management of the business
Liquidation
A business plan
May help an entrepreneur avoid a project that is doomed from the start
The _______ approach indicates the importance of people's awareness of their daily lives for developing new business ideas.
New-new
Which of the following is a critical factor to be considered in the management segments?
Organizational structure
The person who sells the franchise is usually required to do all of the following except
Pay a fee
It is important that an entrepreneur
Prepare his or her own plan
A business has to increase its sales annually to net as much as it did in the previous year when...
Profits are not rising as fast as sales
Comparing financial numbers in order to make decisions is referred to as
Ratio analysis
The textbook discusses all of the following aspects that distinguish social media marketing from traditional marketing except...
Relevancy
Blueprints, sketches, drawings, and models are often features to be placed in which of the following sections of the business plan
Research, design, development
When using the graphic approach to break even analysis, the entrepreneur should plot, total ____ and total _____
Revenue;cost
SEC:
Securities & Exchange Commission
SBIC:
Small Business Investment Company
Which of the following is not one of the most common methods used in capital budgeting
anticipated change in net income method
penetration pricing is setting the price to
be below competition
Legal protection is granted to computer programs in which of the following forms
copyright
The textbook recommends that social media marketers consider which of the following three aspects of social media when using those tools for marketing purposes
creating, enabling, and encouraging
Because of the _____ doctrine, it is sometimes difficult to establish infringement.
fair use
Which of the following survey methods has the lowest response rate?
mail surveys
Control versus communication is an important distinction between social media marketing and traditional marketing
False
Copying the latest social media craze is an indication of not having realistic goals.
False
Which of the following is a not a question in entrepreneurship be prepared to answer?
What is the price of your product
Capital budgeting is used to help the entrepreneur planned for capital depreciation
False
How many months of the year should be illustrated in the first pro dorms income statement
12
The Franchise Disclosure Document (FDD) contains how many categories?
23
Chapter 13 Bankruptcy involves a reorganization of the enterprise
False
The most common source of debt financing is
Commercial banks
Promotion links to which of the 4Cs of marketing
Communities
The emerging body of law governing cyber space is often referred to as
Cyber law
Which of the following is not a start up expense?
Depreciation
The Franchisee's responsibilities do not include
Designing the product specifics
The most common viewpoint in business plans is the new point of the
Entrepreneur
Break-even analysis is used to access
Expected product profitability
Accounts receivable, turnover measures the rate at which accounts receivable are being collected at a monthly basis
False
An entrepreneur should include a 3 to 5 year financial projection, so that the financial source can adequately evaluate the venture
False
Attorney-hopping is the best way to keep legal fees to a minimum
False
Because the advantages of going public outweigh the disadvantages, it is in corporation's best interest to go public
False
A business plan is the entrepreneurs roadmap to a successful enterprise
True
A business plan should be no more than 150 pages
True
A method of raising capital is through the private placement of securities.
True
After delivering a pitch, it is not acceptable to question venture capitalist, who turned down a funding opportunity
True
An investment prospectus is the same as a business plan
True
Anyone who vialates an authors exclusive rights under a copyright is liable for infringement
True
Crowdfunding provides entrepreneurs with access to beta-testing and market feedback
True
Entrepreneurs who exploit a radical new technology to provide a product and radically disrupt the market through the creation of a new product space represent the highest level of innovation "newness" relative to other alternatives.
True
Generally, the larger and more successful the franchisor, the greater the franchise fee that is charged
True
In negotiating,a deal to purchase an existing business, It is possible to request that the seller retain a minority interest in the firm.
True
Mobile social Media applications can be differentiated based on location-sensitivity as well as on time sensitivity
True
Patents eventually expire
True
The actual cost of "opening the doors" of a franchise establishment can be more than $200,000
True
The cash-flow budget provides an overview of cash inflows and outflows for the banking period
True
The first step in creating an operating budget is to prepare the sales forecast
True
The handling questionable cost approach of break even analysis was specifically designed for firms that have expenses that are difficult to assign
True
The most common source of debt financing are commercial banks
True
The two parts of a patent application are specification and claims
True
When using P2P lending, one potential danger may be an uncertain regulatory environment.
True
Which of the following is not a question commonly asked by Banks of entrepreneurs?
What interest rate did you have in mind?
