SBM Final Review
In EOS planning, the longest term for planning is ___. 1 year 3 years 5 years 10 years
10 years
The entrepreneurial operating sytem (EOS) is based on a framework that has ___ components 2 4 6 10
6
Salesforce.com is an example of a ____. cost tracking system customer relationship management system accounting system operations system
Customer relationship management system
According to your text, the ___ approach to driving business is preferred. product-oriented sales-oriented customer-oriented profit-oriented
Customer-oriented
T/F Background checks are an option when hiring an individual
False
Changing product direction after gaining insight from customers is a ___. pivot course change about face failure
Pivot
Which is general more accurate? short-term forecasts long-term forecasts both are equally accurate both are impossible to estimate
Short-term forecasts
What is the number 1 reason why startups fail (from customer discovery slides)? they have poor management skills they do not build a product that the market wants they don't work hard enough the team can't work together
They do not build a product that the market wants
T/F Product-market fit refers to the relationship between customer segment and value proposition
True
T/F Promoting the family's values to set themselves apart from competitors is a possible advantage of family business
True
T/F Quickbooks has the ability to connect and share data with your bank accounts
True
T/F Quickbooks is a financial management software
True
In Quickbooks, the chart of accounts is ____. the annual budget the list of cash sources the list of customers who owe money a listing of expense, asset, and liability categories
A listing of expense, asset, and liability categories
Which is the most common form of workplace misconduct abusive behavior violations of internet policies stealing or theft substance abuse at work
Abusive behavior
Which of following is NOT a typical cost of becoming a franchisee? initial franchise fee royalties on sales requirement to purchase franchisor products all are costs
All are costs
Which of the following is NOT a factor of debt financing (bank loan). returns for individual investors will be higher more financial risk since debt payments are required owners maintain more control of the company all are factors
All are factors
Whom of the following is not a stakeholder owners employees customers all are stakeholders
All are stakeholders
What are some of the reasons people want to work for small companies? there is more job diversity a relationship with company ownership it may be easier to increase your responsibilities all of the above
All of the above
What are ways to improve governance of family businesses? family retreats install a board of directors family business constitutions all of the above
All of the above
What is a business model? explains how a company will create, deliver, and capture value describes the components necessary for a business assesses the desirability, feasibility, and viability of a business all of the above
All of the above
What is an example of a revenue stream? sales transactions rental fees subscriptions all of the above
All of the above
When we narrow our focus in the market, we target certain customer ___. segments behaviors demographics all of the above
All of the above
Which of the following are users of a business plan? management team investors potential customers all of the above
All of the above
Which of the following is impacted by your sales forecast? employee hiring budgeting planning with suppliers all of the above
All of the above
Why is a cash budget important? it insures that you will have enough cash to meet your obligations it helps you manage timing for loans and investments it allows you to maximize your return on excess cash all of the above
All of the above
Groups that lend money to very early stage companies often to give back to community are called ___. angel investors philanthropists venture capitalists credit unions
Angel investors
When you "pitch" to investors, you are ___. giving them an update asking for them to invest demonstrating how smart you are all of the above
Asking for them to invest
On the balance sheet, accounts receivables are ___. assets liabilities equity debt
Assets
In a business plan document, the Executive Summary goes ___. at the beginning at the end in the middle in the appendices
At the beginning
Most small businesses with growth potential are categorized as microbusinesses lifestyle businesses attractive small firms gazelles
Attractive small firms
Which of the following is NOT a section of a business plan financial projections exit plan business model canvas team composition
Business model canvas
Your company's ________ formally establishes standards for employee behavior code of ethics employee handbook company values company vision
Code of ethics
Which of the following is MOST important to have if borrowing money from a bank? a good reputation a long track record collateral a good credit score
Collateral
Which of the following is NOT a function of Quickbooks? deciding on equity or debt financing processing sales transactions processing payments for suppliers preparing financial reports
Deciding on equity or debt financing
When hiring an employee, the first step is to ____. develop a job description post online on a site like indeed contact a professional recruiter contact the equal employment opportunity commission
Develop a job description
Which of the following is NOT a condition for evaluating fit in an EOS company? do they get it do they do it do they want it do they have the capacity
Do they do it
When buying a business, what is the process of confirming claims and financials? due diligence product validation auditing physical inventories
Due diligence
Which of the following is NOT a legal protection of employees? americans with disabilities act age discrimination in employment act occupational safety & heath act equal rights amendment
Equal rights amendment
T/F Equity financing requires that you get a loan from a bank
False
T/F Establish goals is not necessary or possible in a marketing strategy
False
T/F Flexibility is an advantage of franchising
False
T/F Gross profit is profit after all expenses are taken into account
False
T/F It is likely that in the initial phase of creating a startup, the founders already know everything about their customers
False
T/F Profit and cash flow are the same thing
False
T/F Size (number of employees) is the ideal criteria to categorize small businesses
False
T/F The value proposition explains how a company creates value for investors
False
T/F When comparing Customer Acquisition Costs (CAC) to Customer Lifetime Value (LTV), it is important that CAC is larger
False
Benefits of customer relationship management (CRM) are ___. saves cost by maintaining old customer vs acquiring new increases sales because long-term customers tend to spend more current customers are less likely to ask for discounts all of the above
Increases sales because long-term customers tend to spend more
When is the primary document executed in the purchase of a business? term sheet purchase agreement employment contract code of conduct
Purchase agreement
When it comes to the psychology of making purchasing decisions, which of the following is NOT a factor? motivation strength of need quality of products perceptions of brand
Quality of products
In EOS, the "rocks" are defined and addressed on a ___ basis. yearly quarterly monthly weekly
Quarterly
What is the best method to learn about your customer segment? talk to them online searches ask ChatGPT use your intuition
Talk to them
T/F A market is a group of customers or potential customers who have purchasing power and unsatisfied needs
True
T/F A marketing plan should include a SWOT analysis
True
T/F A sales forecast provides a prediction of how much will be sold within a given market during a specified time period.
True
T/F According to the book, small businesses have less than 100 employees
True
T/F An independent contractor is someone who completes an assignment but retains control over the actual work done
True
T/F Entrepreneurial inexperience, coupled with a new idea, represents the most difficult forecasting situation
True
T/F Family conflict is a potential disadvantage among family businesses
True
T/F Family members inside the company sometimes see those external to the firm as parasites
True
T/F Flexibility is one of the advantages of being an independent contractor
True
T/F It is fair game to ask a candidate about their experience during an interview
True
T/F It is important to determine how you will measure results of your marketing plan
True
T/F It is possible to be unethical and still be within the law
True
T/F It is possible to finance your company using credit cards, but the high interest rates are a very significant risk
True
T/F Most entrepreneurs spend more time worrying about cash flow than profits
True
T/F One definition of integrity is "having a set of values and following closely"
True
T/F Pro forma financial statements look like typical financial reports but are forward-looking (forecasts)
True
T/F The balance sheet is a report showing a firm's assets, liabilities, and owners' equity at a specific point in time
True
T/F The franchisor/franchisee relationship is documented in the franchise contract
True
T/F The income statement is a report showing the amount of profits/losses from a firm's operations over a given time period
True
T/F The legitimacy lie is a temptation for small businesses to exaggerate their size/capabilities.
True
T/F The majority of time in the Level 10 weekly meetings is spent on issue solving
True
T/F There is a broad spectrum of franchising options
True
T/F Typically one would become a franchisee to leverage an already proven business plan
True
Which of the following is NOT a common motivation for owning a small business? personal fulfillment independence financial reward all are motivations
all are motivations
What are common pathways for exiting a business selling through bizbuysell.com transitioning to family transitioning to employee ownership all are pathways
all are pathways
Which of the following is NOT a tool for evaluating customer experience? asking opinions from your sales team establishing a customer satisfaction score using a net promoter scale to assess customer loyalty using a customer effort score to monitor customer service helpfulness
asking opinions from your sales team
Which of the following is not one of the 4 Ps of marketing persistence place promotion product
persistence