Exam 2
A franchise system can be used for handling
Goods and services
The person who sells a franchise is usually required to do all of the following, except
Pay a fee
Which of the following is not one of the most common questions typically required to be answered by entrepreneurs seeking funding
What exact date will you repay the money?
The extra value a business can command in a sale is known as
Goodwill
Is one of the disadvantages of going public
Liquidity
Which of the following costs do not add to the cost of franchising
Prepaid utility bills
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
The basic challenge for social enterprise is addressing the obligations of business to
Society
Which of the following is not a factor regarding the condition of inventory?
Suppliers
According to the text, which of the following could be considered a deal killer by venture capitalist
The excessive founder salaries
An account framework that goes beyond the traditional measures a Profit return on investment and shareholder value to include environmental and social dimensions is called
Triple bottom line
When doing marketing research, triangulation means ____
Using more than one data collection method
Key elements in plans to create a sustainable future are likely to include eliminating the concept of
Waste
Global entrepreneurs are now considered by others as
Wearing different hats
The most common source of debt financing is
commercial banks
Examples of social enterprise obligations to the environment, include all of the following, except
construction of energy
Which of the following is not a start up expense?
depreciation
Many new ventures find that debt financing is
Necessary
Piggybacking one's way into a new business involves using a ___ approach
New-old
Which of the following activities does not characterize the social entrepreneur?
Operating with a low sense of accountability
Which of the following terms is synonymous with social lending?
Peer to peer lending
You start collecting the information you believe you need to analyze a business opportunity by using community statistics provided by the Chamber of Commerce. these statistics are ___ data
Secondary data
Which of the following designations is not synonymous with social entrepreneur?
Social activist
You start your market research by looking for information about
Your competition and your target market
Which of the following types of risks incorporates fluctuating exchange rates
Financial risks
The advantages of franchising do not include
Franchise fees
The individual who arranges for a dealer to handle a specific product or service under certain mutually agreed-upon conditions is known as the
Franchisor
Bottom line measures of economic performance include all of the following, except
Global competition
Short term debt is paid back
In one year
Any competitors product that satisfies the same need for a customer as your product, but in a different way is ____ competition
Indirect
____ bank loans are made on a discounted value of the receivables pledged
Accounts Receivable financing
Which of the following is not currently cited as a trend creating business opportunities
Breakfast cereals
An organization that offers a range of support services and funding opportunities for new ventures is called a
Business accelerator
Which of the following is more likely than the others to be deemed a potential danger of social lending
Business plan disclosure
Which of the following is a type of equity financing?
Common stock
The person who purchases a franchise is usually required to do all of the following, except
Design a logo for the unit
Which of the following terms describes a possible leadership style for ecologically, innovative firms
Eco vision
The final decision to purchase a franchise should be up to the
Entrepreneur
Financing includes all of the following, except
Equitable payback