EEE FINAL YAY HAHAHHA TEARS (ch.10-15)
_____ is the term that denotes the set of assets and liabilities that are linked to a brand and enable it to raise a firm's valuation.
Brand equity
Why Most New Ventures Need Financing or Funding?
Cash flow challenges Capital investments lengthy product development cycles
_____, acquisitions, strategic alliances, joint ventures, licensing, and franchising are examples of external growth strategies.
Mergers
____ means that as a firm grows and adds personnel, the new hires typically do not have the same ownership incentives as the original founders, so the new hires may not be as motivated as the founders to put in long hours or may even try to avoid hard work.
Moral hazard
___, trademarks, copyrights, and trade secrets are the four key forms of intellectual property.
Patents
What are the four key forms of intellectual property?
Patents Trademarks Copyrights Trade Secrets
What are some alternatives for raising money for a new venture?
Personal funds equity capital debt financing creative sources
______ refers to the firm's activities to communicate the merits of its product to its target market.
Promotion
_____ refers to efforts to establish and maintain a company's image with the public.
Public relations
Which of the following is NOT a warning sign that a business is growing too fast?
Rising productivity
Which of the following CAN be trademarked?
Sounds
Acme Toys produces all its educational toys in its Canton, Ohio plant and ships them all over Europe for sale. Acme Toys is using __________.
exporting
As a book reviewer, Charlie Smuckers often quotes short passages from the book he is reviewing. He is protected because ____ allows the limited use of copyrighted material for purposes such as criticism, comment, news reporting, teaching, or scholarship.
fair use
What is bootstrapping?
finding ways to avoid the need for external financing or funding through creativity, ingenuity, thriftiness, cost-cutting, or any means necessary
It costs Jamie's Salon $10,000 per month to rent its store. The rental cost is ___________.
fixed
Angie's Bakery pays a rent of $2,000 per month whether it sells something or not. For Angie's Bakery, rental costs are ________.
fixed
Domino's Pizza is an international pizza company that focuses on pizza delivery. Domino's operates in over 60 countries internationally. Approximately 90% of its stores are franchise owned with over 1,100 ____________.
franchisees
What is debt financing?
getting a loan
In determining whether to legally protect his song "Gotta Give It Up," Marvin Gaye followed the rule of thumb of ___________.
having value in the marketplace
What are exclusions from trademark protection?
immoral or scandalous matter, deceptive. matter, descriptive marks, surnames
The Art Shoppe grew over the years by developing new products and attracting new customers. The Art Shoppe's growth is called ___________.
organic
To free up factory space to increase production of its basic product, Parris Metals that used to package its products internally decides to use the services of an outside packer. Parris Metals has ___________ packaging.
outsourced
What is viral marketing?
pass-along advertising messages
Judy's Home Care Products engaged in the unauthorized use of The Casey Corporation's patent. This is an example of _________.
patent infringement
The 4Ps of marketing activities are product, price, promotion, and ____.
place
Owning a franchise is typically costly and labor-intensive. As a result, the purchase of a franchise should be a careful, deliberate decision. Which of the following is NOT a step in buying a franchise?
plan own training program
What are the four P's of marketing?
product price promotion place
A(n) ____ strategy involves making additional versions of a product so that it will appeal to different clientele or making related products to sell to the same clientele.
product line extension
What is sweat equity?
represents the value of the time and effort that a founder puts into a new venture
Market leadership occurs when a firm holds the number one or two position in an industry or niche market in terms of ____.
sales volume
Acme Corp., a producer of safety blades, produces the highest volume of products annually in the industry that results in it having the lowest average cost. Acme Corp benefits from economies of ___________.
scale
When Starbucks uses the same feature to advertise Starbucks coffee along with Starbucks music and Starbucks apparel, it is benefitting from economies of ________.
scope
What are the steps for finding a target market?
segmenting the market selecting a target market crafting a unique positioning strategy
There are four types of trademarks: trademarks, ____, collective marks, and certification marks.
service marks
What is meant by lengthy product development cycles?
some products are under development. for years before they generate earnings. The up-front costs often exceed a firm's ability to fund these activities on its own.
"Because you're worth it," is an example of a(n) _________.
tagline
What is equity funding
the exchanging partial ownership in a firm, usually in the form of stock, for funding
What is a buying cycle?
the process that customers go through to make a purchase
What are factors that affect the length of the buying cycle?
the uniqueness of your product the number of people involved price number of competitors
The name "McDonald's" is an example of a ____.
trademark
What are the different types of patents?
utility, design, plant
What is inbound marketing?
where the customer finds you
What is protected under trademark law?
words, numbers and letters, designs or logos, sounds, fragrances, shapes, colors, trade dress
In 2016, the United States Patent & Trademark Office (USPTO) received more than ___ patent applications.
600,000
Entrepreneurs should weigh the possibility of purchasing a franchise against the alternatives of buying an existing business or launching their own venture from scratch. Which of the following costs are NOT typically associated with buying a franchise?
one-time royalty payment
Three basic requirements for obtaining a patent
1. Useful 2. Novel 3. Not Obvious
What percent of banks in the U.S. participate in the SBA guaranteed loan program?
Approx 50%
Which of the following is NOT a step in the sales process?
Bartering
What are sources of debt financing?
Commercial banks SBA guaranteed loans
What are creative sources of financing or funding?
Crowdfunding Leasing SBIR and STTR programs Other grant programs
What are 2 other sources of debt financing?
Factoring and Peer-to-Peer Lending
True or False. Venture capital firms fund more entrepreneurial firms in comparison to business angels.
False
_____ marketing is a low-budget approach to marketing that relies on ingenuity, cleverness, and surprise rather than traditional techniques.
Guerilla
In which stage in the organizational life cycle does growth slow down?
Maturity
Which of the following is NOT an advantage of emphasizing external growth strategies?
Increased business complexity
What are business angels?
Individuals who invest their personal money directly in start-ups.
What are some examples of cash flow challenges?
Inventory must be purchased, employees must be trained and paid, and advertising must be paid for before cash is generated from sales.
Which of the following is NOT a physical measure to protect trade secrets?
Maintaining low-cost overall security measures
What are capital investments?
The cost of buying real estate, building facilities, and purchasing equipment typically exceeds a firm's ability to provide funds for these needs on its own
What is the main difference between SBIR and STTR grants?
The main difference between the SBIR and the STTR programs is that the STTR program requires the participation of researchers working at universities or other research institutions.
Which of the following is NOT a top reason why new products fail?
The potential market was underestimated.
What are SBIR and STTR grants?
These programs provide cash grants to entrepreneurs who are working on projects in specific areas.
What are the 4 types of trademarks?
Trademark service mark collective mark Certification mark
What is outbound marketing?
Traditional form of marketing where a company initiates the conversation and sends its message out to an audience.
True or False. Historically, commercial banks have not been viewed as a practical source of financing for start-up firms.
True
While there may be many disadvantages to franchising, which of the following is NOT a disadvantage?
decreased legal expenses
While a utility patent protects the way an invention is used and works, a ___ patent protects the way it looks.
design
Which foreign market entry strategy gives a firm total control over its foreign operations?
Wholly-owned subsidiary
What is an Initial Public Offering (IPO)?
a company's first sale of stock to the public. When a company goes public, its stock is traded on one of the major stock exchanges.
What is Factoring?
a financial transaction whereby a business sells its account receivable to a third party, called a factor, at a discount in exchange for cash.
What is a patent?
a grant from the federal government conferring the rights to exclude others from making, selling, or using an invention for the term of the patent
What is guerrilla marketing?
a low-budget approach to market that relies on ingenuity, cleverness, and surprise rather than traditional techniques
What is a business method patent?
a patent that protects an invention that is or facilitates a method of doing business
A(n) _____ is the route a product takes from the place where it is made to the customer who is the end-user.
distribution channel
What are 4 reasons that motivate firms to go public?
a way to raise capital raises a firm's public profile is a liquidity event creates a form of currency that can be. used to grow the company
What is a trademark?
a word, name, symbol, or device used to identify the source or origin of products or services and to distinguish those product or services from others.
Anton's Bakery made an outright purchase of Meg's Cakes. Anton's Bakery was involved in a(n) __________.
acquisition
Acme Corp. finds that as the number of employees it needs increases, it becomes increasingly difficult for the company to find the right employees, place them in appropriate positions, and provide adequate supervision. The problem that Acme Corp. faces is called _____.
adverse selection
The faster a firm grows, the less time managers have to evaluate the suitability of job candidates and the higher the chances are that unsuitable candidates will be chosen. This problem is called ____.
adverse selection
What is Marketing?
an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
What is intellectual property?
any product of human intellect that it is intangible but has value in the marketplace
A brand is a set of _____, positive or negative, that people associate with a company.
attributes
A firm's administrative framework consists of two kinds of services that are important to a firm's growth, ________ and managerial services.
entrepreneurial
Why is marketing for startups different?
because of limited resources
What are sources of equity funding?
business angels venture capital initial public offerings
Lofty Ambitions has patented its method for matching loft owners with loft renters. This is an example of a _______ patent.
business method
An example of bootstrapping methods
buying used instead of new equipment hire interns obtain payments in advance from customers
A business can literally have $1 million in accounts receivable but not be able to meet a $25,000 payroll. This is called the ____ problem.
cash flow management
The stages of the organizational life cycle are introduction, early growth, ___, maturity, and decline.
continuous growth
Marvin Gaye's song "Gotta Give It Up" was protected by ___________ .
copyright
A firm's core strategy is largely determined by its _______.
core competencies
Engine design is what the Honda Motor Company does particularly well. This is Honda's _____..
core competency
While there may be many advantages to franchising, which of the following is NOT an advantage?
decreased cost savings
A Los Angeles jury determined that the song "Blurred Lines" was copied outright from Marvin Gaye's "Gotta Give It Up" and ordered Grammy-winning artists Pharrell Williams and Robin Thicke to pay a $7.4 million fine to the Gaye family. This record-setting fine may have a profound effect on the music industry, which has always struggled with the thin line between being inspired by other artists and copying outright. The jury decided that there was copyright ___________ in this case.
infringement
Artist Marvin Gaye wrote a song entitled "Gotta Give It Up." This song is an example of _____________ property.
intellectual
The __________ stage of the organizational life cycle is a very "hands-on" phase for the founder(s), who are normally involved in every aspect of the day-to-day life of the business.
introduction
A ____ agreement is an arrangement whereby a firm with the proprietary rights to a product grants permission to another firm to manufacture that product for specified royalties or other payments.
licensing
What is venture capital?
money invested by venture capital firms in emerging businesses with exceptional growth potential
Copyright laws protect "original works of authorship" that are fixed in a tangible form of expression. Marvin Gaye's "Gotta Give It Up" is an example of the ___________ category of material that can be copyrighted.
musical composition
A(n) _____ is a place within a market segment that represents a narrow group of customers with similar interests.
niche market