Final (Kuratko & Reading Resources Quizzes)
How much revenue did Facebook raise with its initial public offering (IPO) in 2012?
$50 billion
Research shows that many privately held firms go out of business within _____ year(s).
10
The average life expectancy of a privately held business is _____ years.
24
According to the Small Business Administration more than ___________ such business close every year?
400,000
How many steps are in the Business Development Program?
7
_____ gives investors some protection against founders selling their interest to a third party.
A co-sale right
What did the Boss offer the manager when he first started working for the hotel? This gesture was very surprising to the manager.
A cup of coffee
When considering financial difficulties, which of the following statements constitutes a forcing event?
A lender demands the removal of an owner/manager before lending the necessary funds.
___________ begins at the point in the life of your business when you decide to get some help?
Adolescence
The successful Entrepreneur should do all the following EXCEPT
All of these are correct
There are several different ways you can generate data with which to form a specific metric. They include all the following EXCEPT
All of these are correct
Typical Outbound Marketing Strategies include all the following EXCEPT
All of these are correct
All the following EXCEPT ________ helps you set goals for your website.
All of these are correct.
When choosing a Niche market you should choose a type of market. Which of these are NOT a market for online companies?
All of these are markets available for your Niche
Your niche market you are aiming for must have some kind of bound with your own __________________.
All of these are required.
As part of your survey, ask your current customers the following questions EXCEPT
All of these questions should be in your survey
The more _________ a system is, the more effective your Franchise Prototype will be?
Automatic
In the context of buying a business, a known commodity may command a higher price for which of the following reasons?
Avoiding start-up costs has value.
____________ is actually defined as the number of visitors that only visit one page of your website and then leave it.
Bounce
The true product of the business is the ________ itself?
Business
A __________ is an inviting button, link, image, or some other sort of graphic that encourages a site visitor to become a participant or customer.
Call To Action
What is the "It" of Sarah's business?
Caring
The _____________ on the Call To Actions are critical for the success of any website and should be monitored very closely.
Click Through Rate
The technician has just reached the limits of his ___________ zone?
Comfort
You have chosen your Niche and your keywords, based on the _________________ you'll be able to figure out if you are going to move forward with your niche idea.
Competitive test
____________ the magnet of your website and a key tool in helping to reach your company's marketing objectives.
Content is
Building the Prototype of your business is what kind of process?
Continuous
Think of your company as a _________ instead of a partnership?
Corporation
Which of the following is not a phase of business growth?
Death
Which of the following is not an example of a rule for your game from chapter 16?
Defense wins Championships.
Which of the following is the first step in the traditional pricing formula?
Determine the adjusted tangible net worth.
Which of the following statements is not part of the "five-minute reading" by venture capitalists?
Determine the strengths and weaknesses of the entrepreneur.
_____ refers to conducting a thorough analysis of every facet of an existing business.
Due diligence
________________ are designed to give startups a relatively small set of metrics on which to focus their energies.
Engines of growth
A ________________ model is one that fulfills the perceived needs of a specific segment of customers in an innovative way?
Entrepreneurial
Once you were stricken with an ___________ Seizure there was no relief?
Entrepreneurial
Which of the following strategies is not included in the "I-r" section of the entrepreneurial strategy matrix?
Explore joint venture options.
"Why is the business being sold?" is not an important question to ask when analyzing the viability of buying a business.
F
A business plan must illustrate the current status of the venture, not the projected results.
F
A managerial successor provides the critical ideas for new-product development and future ventures.
F
Accounts receivable turnover measures the rate at which accounts receivable are being collected on a monthly basis.
F
After delivering a pitch, it is not acceptable to question venture capitalists who turn down a funding opportunity.
F
An entrepreneur does not need to know how to calculate the value of a competitor's operation.
F
An entrepreneur must graph at least two numbers-total sales and total expenses-when using the graphic approach for break-even analysis.
F
Capital budgeting is used to help the entrepreneur plan for capital depreciation.
F
Contribution margin is the difference between the selling price and the fixed cost per unit.
F
Emotional bias is not an underlying issue in valuing a business.
F
External environmental factors do not have any effect on the succession issue.
F
Financial sources benefit from the prospective financial statements found in a business plan because it allows them to locate any miscalculations.
F
Four specific managerial actions are necessary during the growth stage: control, responsibility, intolerance of failure, and change.
F
Harvest strategies rarely involve the complete sale of a business.
F
If you are building the wrong thing, optimizing the product or its marketing will yield significant results.
F
In preparing a business plan for oral presentation, the entrepreneur should scan the outline once or twice.
F
In principle, incumbents and entrepreneurs face the same challenges in finding new strategic positions, whereas in practice, incumbents often have an edge.
F
Innovation accounting will still work even if a startup is being misled by vanity metrics such as gross number of customers and so on.
F
Insufficient controls are a strength for a small business and should be considered when the business is being valued.
F
It is not necessary for the entrepreneur to seek professional advice and legal counsel when liquidating the firm.
F
It is typical for a firm to prepare an operating budget but not a cash-flow budget.
F
Knowing a venture's pre-money valuation is not possible.
F
Lack of expertise has never been considered a reason for the lack of strategic planning in new ventures.
F
Many new ventures find strategic planning difficult because entrepreneurs are typically specialists.
F
Most of the time customers know what they want in advance.
F
Most tools from general management are designed to flourish in the harsh soil of extreme uncertainty in which startups thrive.
F
Once an entrepreneur decides to "harvest" the business, their challenges and responsibilities are over.
F
Only 10 percent of all privately held enterprises make it to a third generation.
F
Participation by subordinates in a strategic plan is never appropriate.
F
Planning and forecasting are only accurate when based on a long, stable operating history and a relatively static environment. This is why they work so well for start-up companies.
F
Planning is not essential to the success of an undertaking.
F
Ries believes the mantra of successful entrepreneurs: through determination, brilliance, great timing, and above all, a great product, they can achieve fame and fortune.
F
Small firm owners/managers are usually very open and trusting about their businesses and the decisions that affect them.
F
The "timing" of projected income or cash flows is not a critical factor in establishing the value of a firm.
F
The easiest way to avoid the pitfall of no commitment or dedication is to designate that the venture is a hobby or a whim.
F
The entrepreneur should expect to encounter a friendly and supportive audience when presenting the business plan to potential financial sources.
F
The entrepreneur's professionalism and how well he or she handles the venture capitalist is far more important than being well organized and prepared.
F
The major purpose of a business plan is its utilization as a working document.
F
The price/earnings ratio is determined by dividing the market price of common stock by retained earnings.
F
There is a way to remove the human element - vision, intuition, judgment - from the practice of entrepreneurship.
F
Timing considerations generally do not impact decisions to sell a business because triggering events are unanticipated.
F
Vesting on founders' stock refers to holders of preferred stock having the right to purchase additional shares when issued by the company.
F
Weaknesses in small, closely held businesses do not call for careful analysis of the business being valued.
F
When a company is liquidated, preferred stockholders receive a certain fixed amount after assets are distributed to common stockholders.
F
What is the root cause of most small business failure?
Fatal Assumption
Most companies organize around personalities rather than around ________?
Functions
Probably the main method to measure traffic and other data that has to do with the traffic pertaining to your website is ___________________. While their are other methods, this is the main method used by most online companies.
Google Analytics
______________ is a free tool that allows you to find out both local and global search volumes for certain keywords, related keywords, as well as the competitiveness of those keywords.
Google's External Keyword Tool
Which of the following questions should an entrepreneur ask when a business plan is turned down?
If you were in my position, how would you proceed?
Which of the following is not a suggestion a tax accountant or lawyer might make concerning tax reduction?
Increase management's salaries and fringe benefits.
30 to 60 year-olds are spending the most money in our economy today and are best reached via all the following EXCEPT
Influencer marketing
Which of the following statements about a business plan is true?
It is the minimum document required by any financial source.
When selecting your domain name it should fit your ________________ perfectly if possible.
Keyword
____________, where they are, what they are doing and how they are implementing strategies can benefit you.
Knowing your competitors
Which of the following statements about seeking legal advice with respect to succession planning is true?
Legal advice is not critical, but beneficial.
"Your business and your ______ are two totally separate things"?
Life
Which of the following is not considered a step in the harvest strategy?
Look for a new venture to start up.
The Franchise model uses workers with the ________ level of skill?
Lowest
Turn-Key Revolution started in what fast food restaurant?
MacDonald's
What do you need instead of highly sophisticated workers?
Management System
A __________ business knows how it got to be where it is, and what it must do to get where it wants to go?
Mature
Which of the following is something an entrepreneur should not do when preparing for the oral presentation of a business plan?
Memorize the presentation.
One of the most recent legal challenges to management succession came from the _____ case.
Oakland Scavenger Company
Research on family firms demonstrates which of the following facts?
Only 16 percent make it to a third generation.
In the 5 Ways to Break Through the Clutter their mythological man and woman have three main avenues of exploration to satisfy their curiosity. These include all the follow EXCEPT
Profitability
Which of the following management principles emanated from Steve Jobs?
Put a dent in the universe
All innovations need to be ____________?
Quantifiable
Which of the following would not be a participant at a due diligence meeting?
SEC staff
Which of the following steps should be carried out second when deciding to sell a business?
Segregate the assets.
When selling a business, which of the following is not good advice?
Sell when profits are low
When looking for your Passion you should follow the ______________ approach.
Simple
__________ statements often work best.
Simple
Which of the following statements about the characteristics that successors should possess is true?
Some characteristics will be more important than others, depending on the situation.
Your ______________ is a very clear statement of what your business has to ultimately do for you to achieve your Primary Aim?
Strategic Objective
A SWOT analysis refers to analyzing strengths, weaknesses, opportunities, and threats.
T
A budget is one of the most powerful tools that an entrepreneur can use in planning business operations.
T
A business plan is the written document that details the proposed venture.
T
A common mistake in business planning is using acronyms and technical jargon without clearly explaining them early in the business plan.
T
A harvest plan defines how and when owners and investors will realize an actual cash return on their investment.
T
A lack of demonstrated experience, no clear market niche, a failure to anticipate roadblocks, no realistic goals set, and a lack of commitment are all potential pitfalls or common points of failure that can occur before an entrepreneur even gets a plan reviewed.
T
A market niche is a homogeneous group with common characteristics (i.e., all the people who have a need for a newly proposed product or service).
T
Adjusted tangible book value is a popular method of valuation.
T
After the operating budget has been prepared, an entrepreneur can proceed to the next phase of the budget process, which is the cash-flow budget.
T
After you are aware of the opportunity which your niche is able to give to your startup it is the time to think about the uniqueness of your niche.
T
An entrepreneur is much better off preparing his or her own business plan rather than hiring someone else, even if more experienced, to prepare it.
T
An exit strategy is defined as that component of the business plan where an entrepreneur describes a method by which investors can realize a tangible return on their investment.
T
Avoiding start-up costs is a factor to consider when valuing a business.
T
Business valuation is essential when attempting to buy out a partner.
T
Buyers and sellers assign different values to a business.
T
Capital investments or capital expenditures are expected to last beyond one year.
T
Companies that cannot bring themselves to pivot to a new direction on the basis of feedback from the marketplace can get stuck in the land of the living dead, neither growing enough nor dying, consuming resources and commitment from employees and other stakeholders but not moving ahead.
T
Customers reveal the truth in what they want by their action or inaction to your products or services.
T
Depending on the situation, some qualities or characteristics a successor should possess are more important than others.
T
During the growth stage of a venture, entrepreneurs shift into a managerial style.
T
Entrepreneurs should try to be as objective as possible in determining the fair market value of their enterprise.
T
Even tracking the most basic of numbers relating to your website will give you an advantage over someone who doesn't bother at all.
T
Every business plan should provide information about future harvest strategies.
T
Family members who do not play an active role in the business may still want to inherit part of the business.
T
For most businesses, especially the larger ones, marketing is a fluid and constantly changing process that never stops.
T
High- and low-performing firms have many similarities and differences in their long-range planning efforts.
T
If we do not know who the customer is, we do not know what quality is.
T
In a management structure, there is a need for clearly defined authority and responsibility.
T
Increasing market share by acquiring a firm in the company's industry is one reason for the acquisition.
T
Lack of any time frame to accomplish things is an indicator of the pitfall known as no realistic goals.
T
Learning milestones are useful for entrepreneurs as a way of assessing their progress accurately and objectively; they are also invaluable to managers and investors who must hold entrepreneurs accountable.
T
Loss of ownership control is often attributable to one of the "Four Ds": disability, death, dissolution, and debtorship.
T
Many research studies suggest that strategic planning influences a venture's survival.
T
Misunderstanding industry attractiveness can be a fatal flaw in strategic planning.
T
Most entrepreneurs are unfamiliar with planning information sources.
T
Nepotism policies are lawful unless they have an "adverse impact" on women or minority groups (as in the Oakland Scavenger Company case).
T
Nonfamily employees sometimes put pressure on the owner/manager in an effort to protect their personal interests.
T
One of the first steps for any website is getting views so a very important metric to keep your eye on is the number of visitors your website is getting every month.
T
One of the most common reasons for acquiring a business is developing more growth-phase products.
T
One of the most vexing aspects of the minimum viable product is the challenge it poses to traditional notions of quality.
T
One suggestion for helping to recall key examples, visual aids, and other details when presenting the business plan is to utilize keywords in the outline.
T
Only 3 out of 10 privately held firms survive into a second generation.
T
Replacement value of a business is based upon the value of each asset if it had to be replaced at current cost.
T
Research has shown a distinct lack of planning on the part of new ventures.
T
Research indicates that strategic planning enhances a firm's performance.
T
Ries believes that entrepreneurship requires a managerial discipline to harness the entrepreneurial opportunity we have been given.
T
Small batches normally allow new versions of products to be released to customers on a monthly, quarterly, or yearly cycle.
T
Some entrepreneurs are easy to replace, and some cannot be replaced.
T
Sometimes a successor is needed because the business environment changes and a parallel change is needed at the top.
T
Startup organizations must attempt to tune the engine from the baseline toward the ideal.
T
Tangible assets as well as intangible assets of a business need to be assessed for proper venture evaluation.
T
The "best" strategic plan will be influenced by the abilities of the entrepreneur, the complexity of the venture, and the nature of the industry.
T
The Oakland Scavenger Company case may have a major effect on the management succession plans of family business.
T
The actual need for systematic planning will vary with the nature, size, and structure of the business.
T
The entrepreneurial strategy matrix measures risk and innovation.
T
The first step in creating an operating budget is to prepare the sales forecast.
T
The goal of a minimum viable product is to begin the process of learning, not end it.
T
The harvest decision may come when the venture has grown to a stage where an initial public offering (IPO) is a possibility.
T
The liquidity event stands for positioning the venture for the realization of a cash return for the owners and investors.
T
The prospectus for an initial public offering (IPO) must disclose fully all pertinent information about a company and must present a fair representation of the firm's true prospects.
T
The real value of any venture is its potential earning power.
T
The steps in developing a succession strategy are understanding the contextual aspects, identifying successor qualities, and developing a written succession plan.
T
The theory of the Lean Startup is an organization designed to create new products and services under conditions of extreme uncertainty.
T
There are two types of succession pressures: family members and nonfamily employees.
T
To be clear, there's nothing wrong with keeping an eye on data points that are not directly related to your main objectives.
T
Wealth creation occurs at the intersection of entrepreneurial and strategic actions.
T
When looking ahead in choosing a successor from inside the organization, the founder often trains a team of executive managers consisting of both family and nonfamily members.
T
While many companies set goals like "increase brand awareness," this kind of objective leaves a lot up to interpretation.
T
After Infancy most _______ lock the door?
Technicians
Which of the following is not one of the four strategies that can be used in preparing a management succession policy?
The owner's family controls the management continuity strategy entirely.
Which of the following is an advantage of the business plan for financial sources?
The plan identifies critical risks.
___________ is what creates a persuasive power.
Trust
Though 60+ are the least active consumers online, seniors are using the internet more frequently every day. They also have the most disposable income of anyone in the United States. Placement is the key to reaching this audience group. They can be reached by all the following EXCEPT
Videos
You should build a business that works not because of you but ____________?
Without you
Which of the following statements would not be an appropriate guideline for successful business plan development?
Write the plan in first person.
In the simple linear regression analysis equation, Y = a + bx, which of the following variables represents expected sales?
Y
"It's not your business you have to fear losing. It's something much bigger than that. It's _______?
Your Self
In a survey of 1,000 business owners, which of the following was a motivation for an entrepreneur to sell a venture?
a desire for liquidity
Many closely held ventures are undercapitalized, which often indicates
a high level of debt.
Closely held ventures usually suffer from which of the following shortcomings?
a lack of management depth
Promotion from within is
a morale-building philosophy.
In an entrepreneurial culture, strategic orientation is driven by
a perception of opportunity.
A business plan is
a written document that details the proposed venture.
The entrepreneur must be
able to handle questions from the evaluatorS
The recommended length of a business plan is
about 25 pages.
The only real challenge is to _________________ to the new landscape of mobile interaction so you can truly harness the potential of mobile marketing.
adapt your strategy and metrics
Unique managerial concerns of growing ventures encompass all of the following except
agency problems.
Rather than looking only at sales and revenue, web-and-app brands have to look at _________________.
all the avenues through which consumers engage with them
Rather than looking only at sales and revenue, web-and-app brands have to look at____________________.
all the avenues through which consumers engage with them
The textbook recommends which of the following devices to help in the oral presentation of a business plan?
an outline
It is imperative that you use the _____________ that are available to gather data today and use that data to shape continually future marketing campaigns toward being highly successful ones.
analytical marketing tools
Which of the following is not one of the most common methods used in capital budgeting?
anticipated change in net income method
In today's information-saturated world, visitors to your website are likely to _________.
be impatient
Listing all of your services on one page, instead of individual landing pages, is a ________.
beginner's mistake
Which of the following is a critical factor that should be discussed in the management segment?
board of directors and consultants
Once you understand the importance of ___________, you see its value even on a personal level.
branding
Identifying the target market is the first step in making a ___________.
business plan
Which of the following statements may be the most important in new venture creation?
cash-flow statement
Getting started in the development of your website includes all the following EXCEPT
closely follow what your competitors are doing.
The adjusted tangible book value includes all of the following except
common price.
If you're in the process of creating a website, one of your top priorities is to write attractive and ________ content for your site.
compelling
The process of preparing a pro forma balance sheet is
complex
Even if your site is beautifully designed, it's no more than an empty frame without good _______.
content
In the development of your Website the first place you start is ______________.
content
A __________ will guide your plans for the what, where and when of content creation.
content strategy
Which of the following is not a contextual aspect to be considered in an effective succession plan?
cost
The managerial successor typically is not interested in
creativity
To an entrepreneur, one of the benefits of a business plan is that it identifies
critical risks.
Which of the following balance sheet ratios measures solvency?
current
If visitors notice that your content isn't ______, then your site ____________.
current, loses all credibility
Write copy with your _____________ in mind.
customer
The best websites are _____________.
customer-centric
The Lean Startup Model often works because _______________.
customers often don't know what they want.
Barriers to successful succession planning, discussed in the text, include which of the following?
death anxiety
A harvest plan
defines when and how owners and investors will realize an actual cash return on their investment.
Skipping a stage of _______________ and moving directly to the design stage is a pretty common mistake among many product teams.
defining global goals
The following are all examples of ______________: Vanity metrics Unclear hypothesis Fear
delaying the decision to pivot
Entrepreneurs can best orient their plans toward the future by
developing trends and forecasts that describe what the venture intends to do.
The Cheek Model allows you to ________ into the water of your true Passion.
dip your toe
The Cheek Model allows the first time Entrepreneur to __________________.
dip your toe into the water of your true Passion
Potential earning power, which determines the true value of the firm, is best calculated using the _____ method.
discounted earnings
If cash flow is deemed to be the most important consideration in buying a business, which of the following valuation methods is likely to be used?
discounted future earnings
Which of the followings venture valuation methods is the most effective if the business being valued needs to generate a return greater than investment?
discounted future earnings
Dr. Susan Biali believes its critically important to ___________ in things that light you up.
discover and engage
Small business owners are often guarded about their businesses, which leads to
distrust of others when formulating a strategic plan.
The price/earnings ratio is determined by
dividing market price of common stock by earnings per share.
As much as your product or service may appeal to a large group of people, it _____ make sense to market to everyone.
does not
The entrepreneur who has to choose a successor with potential to develop the attributes necessary to run the business should consider which of the following aspects of the potential successor over the others?
drive and resourcefulness
The point is not to find the average customer but to find ___________: the customers who feel the need for the product most acutely.
early adopters
When calculating the total amount needed to buy a business venture, which of the following would not be included?
employee retention
New ventures are important to the economy in terms of innovation and
employment
The ______________ is the mechanism that startups use to achieve sustainable growth.
engine of growth
The most common viewpoint in business plans is viewpoint of the
entrepreneur
A key aspect to be considered in an effective succession is the
entrepreneur's vision.
A type of successor who is high in ingenuity, creativity, and drive would be considered a(n) _____ successor.
entrepreneurial
A business plan _____ potential financial backers.
establishes a first impression of the company and its principals on
In the article 10 Ways to Find Your Audience on Social Media, author Alla Bogdan recommends you to narrow your audience and search for ________, which your potential buyers are interested in.
exact niches
Your main menu should tell your visitors ________ what they are going to get at a glance.
exactly
Break-even analysis is used to assess
expected product profitability.
Which of the following is not a distinct form of tolerance for failure?
experimental failure
Formal planning can be divided into strategic and nonstrategic.
f
One of the most important lessons of the scientific method: if you cannot ____, you cannot learn.
fail
The one-person-band syndrome is
failure to delegate.
The first source for succession often is
family and in-house personnel
Which of the following is not an important aspect of an entrepreneurial venture that must be described in a business plan?
family support
Which of the following is not perceived as a difficulty in long-range planning?
favorable market conditions
The entire of the Identifying Your Passion by Dr. Cheek is to _____________.
find the Right Business for you
With no doubt, the __________ of any website is now more important than ever.
first impression
When using trend line analysis, how many periods are required?
five
A growth-oriented mind-set values
flexibility
Which of the following is a reason for buyers to keep projections in perspective?
fluctuating markets
Happenings that cause the replacement of the owner/manager of a family business are called
forcing events.
The reason many small business managers lack expertise is that they are
generalists
A startup is _________ the sum of its parts.
greater than
Which of the following stages of venture development requires major changes in entrepreneurial strategy?
growth
New venture managers lack knowledge in the strategic planning process because they
have minimal exposure to the planning process.
Goodwill, family members on the payroll, and planned losses are examples of
hidden costs.
All of the following are characteristics of entrepreneurial cultures except
hierarchy
A business valuation is not usually essential when
hiring a new director of operations.
Sales and earnings of a venture are projected from
historical financials.
Before you can seek out your audience, you must ____________.
identify them
The text discusses all of the following important guidelines to follow when putting the plan together except
impressing with excessive detail.
Emotional bias is likely to have which of the following effects on a seller's valuation of a business?
increase the valuation
Your website visitors behave like wild animals. They're hunting for _____________.
information or a product to buy
In the entrepreneurial strategy matrix, the creation of something new and different is categorized as a(n)
innovation
Think of your site as an ____________ that speaks with different groups and converts visitors into prospects and customers.
interactive brochure
In some professional areas, the business plan is referred to as a(n)
investment prospectus.
An entrepreneurial successor is someone who
is ingenious, creative, and driven.
Return on investment
is net profit divided by investment.
The primary advantage of the price/earnings approach to valuation is that it
is simple to use.
The net present value method works on the premise that a dollar today
is worth more than a dollar in the future.
Your web visitor is hunting for information or products. Ensure he can understand your most important information by _______________.
just glancing at your web page
A page stuffed _____________ looks dubious and untrustworthy
keywords
Most privately held firms
lack a succession plan
A new venture's lack of strategic planning can be the result of
lack of expertise.
An indicator of the planning pitfall of "no realistic goals" is
lack of timetable to accomplish things.
In many new small ventures, planning is often
lacking
Which of the following provides an absolute bottom line value of a firm?
liquidation value
Sometimes a business plan is referred to as a(n)
loan proposal.
Organize your website content into ________________.
logical categories
Which of the following would be appropriate to include in an appendix to a business plan?
management team vitae
A type of successor who is interested in efficiency, internal control, and effective use of resources would be considered a(n) _____ successor.
managerial
The past is the best predictor of the future according to the _____ mind-set.
managerial
The business plan provides the details of the _____ potential of a business.
market
Which of the following methods of valuation was developed by the U.S. Treasury to determine a firm's intangible assets?
market value
Competitive analysis, advertising plan, and pricing policy are all part of the _____ segment.
marketing
Responsible companies want to measure their Return On Investments for Marketing Campaigns. One of the best was is through _________________.
marketing metrics
Marketing doesn't work like a magic wand. Its main purpose is to ____________ with the right customers.
match the value your business is creating
A manufacturing firm needs to establish which of the following budgets?
material purchases budget
The principal objective of capital budgeting is to
maximize the value of the firm.
The Cheek Model says you can't _____________________ about our Passion and figure it out.
merely think
The __________ is that version of the product that enables a full turn of the Build-Measure-Learn loop with a minimum amount of effort and the least amount of development time.
minimum viable product (MVP)
Over the past couple of years, however, ________ have become the primary driver of search traffic.
mobile devices
By design, a truly _________ relies almost solely on mobile apps and marketing campaigns.
mobile-first brand
An abundance of _________ can lead to annoying and distracting visitors.
moving objects
If you offer many different types of services, having a page for each of those services provides __________ your website.
multiple entry points into
Earning ________ is an essential goal for any blogger.
new subscribers
One of the most common ways is to create content that is centered around _____________.
news in your industry
Which of the following would be considered a fatal mistake in strategic planning, according to researcher Michael E. Porter?
no real competitive advantage
Which of the following is an event that would require an entrepreneur to step aside and let someone else direct the operation?
nonterminal physical incapacitation
Staying in your current job will not only continue to make you unhappy, but you are _______________.
not realizing your full potential in life
Which of the following is a critical factor to be considered in the management segment?
organizational structure
The Oakland Scavenger Company case resulted in a(n)
out-of-court settlement.
When considering management, the entrepreneur should be concerned about
ownership positions.
Knowing what ______ receive the most traffic is hugely important because it gives you real-world data showing what your audience responds to. I
pages
You should pursue fulfilling work that aligns with your _______________.
passion
Which of the following hidden costs are involved when establishing the value of a firm?
personal expenses
It is important for the entrepreneur to have a harvest strategy segment in a business plan in order to
plan for a liquidity event as an exit strategy.
The discounted earnings method of valuation establishes
potential earning power.
A critical point to be included in the business description is
potential market advantages.
The day before the presentation, the entrepreneur should
practice the complete presentation by moving through each slide.
The first step in constructing an operating budget is
preparation of the sales forecast.
It is important that an entrepreneur
prepare his or her own plan.
A written succession strategy
prepares the entrepreneur for developing a management continuity strategy and policy.
Which of the following is not an example of pressures or interests from within a firm that affect succession issues?
pressure from a family member to start his or her own business
When comparing and contrasting major competitors along core competitive dimensions, you should include
product, technology, and distribution.
In the initial public offering (IPO) process, which of the following discloses all of the company's pertinent information and presents a fair representation of the firm's true prospects?
prospectus
If a business plan/venture is turned down the first time, the entrepreneur should
revise, rework, and improve the plan.
In the entrepreneurial strategy matrix, the probability of a major financial loss is categorized as a(n)
risk
The entrepreneurial strategy matrix measures _____ and _____.
risk; innovation
Research suggests that only 16% of people read web pages word-for-word. Most people ________.
scan
It's also important to clarify that it's okay to come up with ________ marketing campaigns for each segment or target audience.
separate
Which of the following helps an entrepreneur avoid the pitfall of not having realistic goals?
setting up a timetable of specific steps
The author in 10 ways to find your Audience suggests you can also narrow your audience by looking at _______________.
similar, competitor pages
With a solid strategy, the goal is have a specific purpose and audience for each piece of content.
solid strategy
Customers simply want to know how you're going to _____________.
solve their problem
It is recommended that the final copy of the business plan be
spiral bound.
The second stage of venture development is
start-up activities
Some buyers are willing to pay more for a business than what valuation methods determine its worth to be to avoid
start-up costs.
Formation of long-range plans for effective management in light of a venture's strengths and weaknesses is referred to as _____ planning.
strategic
Analysis of a firm's external and internal environments provides the firm with the information to develop
strategic intent and strategic mission.
A ________ sets the tone for all of the activities, and it gives a context that helps in making design decisions.
strategy
A SWOT analysis refers to
strengths, weaknesses, opportunities, and threats.
To measure the success of your ad campaign, it's easiest to do this when you divide your marketing derived traffic into ______________.
subgroups
Start by identifying your ideal customer through ___________.
surveys and research
Author Larry Kim says it blows my mind how many companies fail to understand their ______ market.
target
Having a solid understanding of your _______ and what their needs are, can help you decide what type of content to include on your website.
target audience
Besides the eight steps in the harvest strategy, what other implications should the entrepreneur be aware of when selling out?
tax implications
Which of the following is a source of pressure outside the family that could prove troublesome?
tax rate
The Lean Startup methodology reconceives a startup's efforts as experiments that _______ its strategy to see which parts are brilliant and which are crazy.
test
Goodwill, patents, deferred financing costs, and other intangible assets are considered when computing
the adjusted tangible book value.
Which of the following is not an underlying issue when determining proper valuation of the venture set to be acquired?
the amount of risk involved in an acquisition
Which of the following is part of the marketing segment?
the competitive analysis
In the simple linear regression analysis equation, Y = a + bx, Y represents
the dependent variable.
Outside help in succession planning should be considered when
the entrepreneur's ego gets in the way of a succession plan.
Surprisingly, entrepreneurs frequently forget to include _____ in the business plan.
the name of the company
One of the easiest capital budgeting methods to understand is
the payback method.
A business plan should illustrate
the projected results of the new business.
The Cheek Model suggests that you should approach challenges __________________.
the same way you eat an elephant, one bite at a time
One advantage of an early entry strategy for the younger generation succeeding the older generation of a family business is that
the skills specifically required by the business are developed.
A drawback to the price/earnings ratio method is that
the stated net income of a private company may not truly reflect its actual earning power.
In the production budget for a manufacturing firm, the number of units needed in inventory is determined by
the sum of the desired ending inventory and the number of units to be sold.
When considering employees, the entrepreneur should be concerned about
the total number of employees by function.
A financial source that reads a business plan derives which of the following beneficial information?
the venture's ability to service debt or provide an adequate return on equity
Which of the following is not one of the steps in reading a business plan?
thorough reading of each section
Emerging ventures that are rapidly expanding with constantly increasing personnel size and market operations will need
to formalize planning because there is a great deal of complexity.
Upon completing the Build-Measure-Learn loop, startups confront the most difficult question any entrepreneur faces:
to pivot or persevere
The completed business plan provides the entrepreneur with a
tool for communicating with financial sources.
The top level metric most webmasters obsess over is __________.
traffic
Once an organization entered a period of rapid hiring, repeated Five Whys sessions revealed that problems caused by lack of ___________ were slowing down product development.
training
Once you have established the __________ you need, it's important to organize it and develop a strategic schedule to make sure it all gets accomplished.
type of content
A _________is anything that makes you feel good about your site's progress, without telling you anything important about your business.
vanity metric
A cost that changes in the same direction and proportion to changes in operating activity is a
variable cost.
Which of the following does a post-money valuation include that a pre-money valuation does not?
venture capital investment
Which of the following are the three types of leadership of consequence to new ventures described by the text?
visionary, strategic, and managerial
If you don't put your _______ first, your website won't be effective.
visitors
The ________ of your website impacts the readability of your text; and influences whether web visitors can quickly get what you're about.
visual appeal
Web visitors quickly glance at your web page before guessing whether they're in the right place or not. They don't need to know for sure. They just ________________.
want to make a quick decision
Information that's most important to your web visitors is often a simple statement of _______.
what you do
When considering sales and distribution, the entrepreneur should be concerned about
whether any sales are made on consignment
The critical first question for any lean transformation is:
which activities create value and which are a form of waste?
When considering physical facilities, the entrepreneur should be concerned about
which facilities are owned versus leased.
Once a marketing campaign is planned, then next you must decide _______ you want to use to track its effectiveness.
which methods
To optimize your social media marketing efforts, it's important to know who your customers are and _________ they spend their time on.
which social networks
The price/earnings ratio is a method of valuation that is mostly used
with publicly held corporations.
Your web visitors are hunting for information or products. They make quick decisions ____________.
without thinking.
When you are identifying your target audience, it is important also to determine the features of __________.
your product or service
Engaging in conversations through social media interactions, calls to action through your email campaigns, or simple in-person conversations with __________, are all fantastic methods.
your target audience
Whether your business is brand new, or well established, it's imperative that you know _________ to be successful.
your target audience
It is often easier to raise money or acquire other resources when you have ____ revenue.
zero
In the past when someone has clearly identified an opportunity, they often leave a secure job, use their life savings, seek funding from friends and family, and then launch their new companies. This approach is defined by Dr. Cheek as the ___________________.
zero sum approach
The cash flow does not come from
goods purchased on account.
Which of the following is the first step in the preparation of the cash-flow budget?
identification and timing of cash inflows
Ratio analysis can be applied from which of the following directions?
vertical and horizontal
Like it or not, social media is here to stay, and, as we speak, it is shaping the way local businesses ____________.
develop and interact with their customers
Most digital marketers recognize the benefits of blogging for SEO and social media. However, you can also find more of your ideal customers through ______________.
guest blogging
Promotional posts are ___________. This is type of content that represents your brand.
not necessarily discounts or special offers
An indicator of the planning pitfall of "failure to anticipate roadblocks" is
not recognizing future problems
According to the textbook author, a pitfall to avoid in planning is lack of
priorities
Financial information is important to entrepreneurs because it
pulls together all the information presented in other segments of the business.
You can invest in trying the newest trends in marketing, but your money will be wasted if you aren't ___________ on the right platforms.
reaching your audience
The net present value method is a capital budgeting technique that helps to minimize some of the shortcomings of the payback method by
recognizing future cash flows beyond the payback period.
An inventory turnover ratio of 9.81 means that the average dollar volume of inventory is used up almost _____ time(s) during the fiscal year
10
How many months of the year should be illustrated in the first pro forma income statement?
12
Which of the following statements about financial assumptions is not true?
They do not necessarily correlate with information from other parts of the business.
Financial information pulls together all the information presented in the other segments of the business.
T
The cash-flow budget provides an overview of cash inflows and outflows for the budget period.
T
The first type of expense to be estimated when preparing an operating budget is cost of goods sold.
T
The handling questionable costs approach of break-even analysis was specifically designed for firms that have expenses that are difficult to assign.
T
More established ventures will use a sales forecast model where the estimation of current sales will increase a certain percentage over the prior period's sales. This percentage is based upon
a trend line analysis.
It is essential that you _________ the campaign performance to keep it competitive.
monitor
Which of the following works on the premise that a dollar today is worth more than a dollar in the future?
net present value
A budget that is a statement of estimated income and expenses over a specified period of time is referred to as a(n) _____ budget.
operating
One type of budget used by the entrepreneur is a(n) _____ budget.
operating
Which of the following is not used in balance sheet ratios?
sales
Establishing a ________ is a critical step in making sure the correct tone and messaging techniques are being used during your campaigns.
target audience
__________ groups are a great place to build — and engage with — a community around your topics of interest.
_____________ continues to be the most widely used social media platform
_____ analysis looks at financial statements and ratios over time.
Horizontal
_________________ are similar to your most valuable audiences. That means Facebook can put you in front of more people who are like your current audience.
Lookalike audiences
The typical business will have cash inflows from three sources: cash sales, cash payments received on account, and loan proceeds.
T
Which of the following is a decision rule for handling questionable costs?
The product should not be profitable if expected sales do not exceed the lower break-even point.
Which of the following is not a common characteristic of financial statements?
They are complex.
Vertical analysis is the application of ratio analysis to the many sets of financial statements.
F
__________ to share customer testimonials, stories, lifestyle tips and business advice.
Produce short videos
Because of the competition for funding, an entrepreneur's business plan needs to capture the reader's interest right away by stating the uniqueness of the venture.
T
Horizontal analysis looks at financial statements and ratios over time.
T
The pro forma income statement is prepared before the pro forma balance sheet.
T
Capital budgeting is designed to show
how many projects, in total, should be selected.
Which of the following should be done to avoid the pitfall of "no market niche" (segment)?
Clearly target a niche.
Sales-to-assets measures the efficiency of total assets in generating net profit: the number of dollars in net profit produced for every $1 invested in net assets.
F
The manufacturing segment of the business plan should identify key personnel, their responsibilities and positions, and career experience that qualifies them for those particular roles.
F
The set of assumptions on which financial projections are based have little meaning.
F
Younger Americans are more likely than older Americans to be on ________.
The rate used to adjust future cash flows to determine their value in present period terms is the
cost of capital.
A fixed cost
does not change in response to changes in activity for a given period of time.
When using regression analysis, the entrepreneur may draw conclusions about the relationship between product sales and advertising expenditures.
T
The principal objective of capital budgeting is to maximize the value of the firm.
T
When using the graphic approach to break-even analysis, the entrepreneur must plot total _____ and total _____.
revenue; costs
Loan proceeds are not directly tied to
sales revenue.
For a manufacturing firm, the production budget represents the number of units that must be produced
in order to meet the sales forecast.
A method that discounts future cash flows at a rate that makes the net present value of the project equal to zero is known as the
internal rate of return.
When using the internal rate of return method, the future cash flows are discounted at a rate that makes the net present value equal to
zero
The traditional accounting equation is: Assets + Liabilities = Owners' Equity.
F
Once you've chosen an audience to analyze, ________ will tell you everything about them.
