Entrepreneurial problem solving chapter 3

of the following, which is not associated with entrepreneurial tactics in market research?

in-person interviews

only major strategic decisions need to be supported through marketing research

false

the easiest way to avoid the pitfall of no commitment or dedication is to designate that the venture is a hobby or a whim

false

vertical analysis is the application of ratio analysis to the many sets of financial statements.

false

there are ___ steps for an entrepreneur to consider when creating a structured approach to a market plan.

five

in handling questionable costs, the cost in question is substituted first as a ___ and then as a ___

fixed cost; variable cost

capital budgeting is designed to show

how many projects, in total, should be selected

When a trademark becomes the name of a general group of products or services, the trademark protection may be lost because of

generic meaning

all of the following factors affect pricing strategies except

government mandates

in the simple linear regression analysis equation, Y = a + bx, b represents

the slope of the line

which of the following is not a common characteristic of financial statements?

they are complex

Anyone who violates an author's exclusive rights under a copyright is liable for infringement

true

the first step in creating an operating budget is to prepare the sales forecast.

true

who defined the corporation as "an artificial being, invisible, intangible, and existing only in contemplation of the law"

Justice John Marshall

Which is not included within balance sheet ratios?

cash

Which of the following influences the choice of marketing philosophy?

competitive pressure

Legal protection is granted to computer programs in what form?

copyright

a marketing information system compiles and organizes data relating to ______, revenue, and profit from the customer base

cost

Design patent protection lasts for _____ years

14

The patent process is not complex; neither does it require careful planning.

false

The set of assumptions on which financial projections are based have little meaning

false

The traditional accounting equation is: assets + liabilities =owner's equity

false

Trademark registration and search is not costly.

false

accounts receivable turnover measures the rate at which accounts receivable are being collected on a monthly basis

false

capital budgeting is used to help the entrepreneur plan for capital depreciation

false

capital budgeting is used to help the entrepreneur plan for capital depreciation.

false

The text discusses all of the following important guidelines to follow when putting the plan together except

impressing with excessive detail

competitive analysis, advertising plan, and pricing policy are all part of the

marketing segment

a patent gives the holder a temporary

monopoly

An indicator of the planning pitfall of "no commitment or dedication" is

no interest in researching the idea

in planning, there are a number of pitfalls that must be avoided. one of these is

not having a commitment

surveys do not include contact by

observation methods

which of the following is a critical factor to be considered in the management segment?

organizational structure

The day before the presentation, the entrepreneur should

practice the complete presentation by moving through each slide

A patent infringer can be liable for all ____ resulting from the infringement as well as for legal fees.

profits

which of the following is not a pitfall that should be addressed in planning a venture?

specific profit goals

For the author of creative material to obtain a copyright, the material must be in _____ form

tangible

which of the following falls under chapter 7 bankruptcy?

the debtor is relieved of obligations

in the simple linear regression analysis equation, Y=a + bx, Y represents

the dependent variable

for a manufacturing firm, the production budget represents

the number of units that must be produced in order to meet sales forecast

Entrepreneurs should be knowledgeable about certain legal concepts that affect their business venture.

true

If infringement can be proven in court, a monetary award may be given to the trademark holder.

true

a lack of demonstrated experience, no clear market niche, a failure to anticipate roadblocks, no realistic goals set, and a lack of commitment are pitfalls or common points of failure that occur before an entrepreneur ever gets a plan reviewed.

true

a summary gives a brief overview of what is to follow, helps put all of the information into perspective, and should be no longer than three pages.

true

an investment prospectus is the same as a business plan

true

every business at some point needs the services of an attorney

true

the two parts of a patent application are specification and claims

true

three primary legal forms of organization are the sole proprietorship, the partnership, and the corporation.

true

Specific forms of partnership include which of the following?

limited partnerships and limited liability partnerships

Which of these survey methods has the lowest response rate?

mail surveys

An indicator of the planning pitfall of "failure to anticipate roadblocks" is

making no recognition of future problems

what is skimming?

setting price to maximize profit

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).

true

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.

true

how many months of the year should be illustrated in the first pro forma income statement

twelve

entrepreneurs should be knowledgeable about certain legal concepts that affect their business venture.

true

marketing research involves the gathering of information about a particular market, followed by analysis of the information

true

one suggestion for helping to recall key examples, visual aids, and other details when presenting the business plan is to utilize key words in the outline

true

shopping goods are products that consumers take time to examine carefully and compare for quality and price.

true

the bankruptcy act was set up in order to provide assistance to both debtors and creditors

true

the first type of expense to be estimated when preparing an operating budget is cost of goods sold.

true

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

copyrights have to be registered with the copyright office

false

the major purpose of a business plan is its utilization as a working document

false

how does death affect the duration of a corporation?

a corporation is unaffected by the death of a shareholder.

the completed business plan provides the entrepreneur with

a tool for communicating with financial sources

What percentage of issued patents is considered commercially valuable?

a very small percentage

one type of budget used by the entrepreneur is

an operating budget

the textbook recommends which of the following devices to help in the oral presentation of a business plan?

an outline

Which of the following are the two major variables needed to identify specific market segments?

demographic and benefit

inhibitors to marketing research include all of the following except

distribution

the last step in preparing the operating budget is to

estimate operating expenses.

The process of trademark registration is

expensive

Because of the _____ doctrine, it is sometimes difficult to establish infringement.

fair use

A consumer driven marketing philosophy often relies on direct selling.

false

An entrepreneur must graph at least two numbers: total sales and total expenses, when using the graphic approach for break-even analysis.

false

Chapter 7, chapter 9, and chapter 11 are the most common forms of bankruptcy.

false

patents eventually expire

true

which of the following is part of the marketing segment?

the competitive analysis

in preparing a business plan for oral presentation, the entrepreneur should scan the outline once or twice.

false

laws governing intellectual property rights include copyrights, trademarks, and leases

false

which of the following statements about a business plan is true?

it is the minimum document required by any financial source

financial information is important to entrepreneurs because

it pulls together all the information presented in other segments of the business

An indicator of the planning pitfall of "no realistic goals" is

lack of timetable to accomplish things

the business plan provides the details of the ____ potential of a business

market

which of the following is something an entrepreneur should not do when preparing for the oral presentation of a business plan?

memorize the presentation

_______ is the use of portable wireless devices to connect to the Internet.

mobile computing

to effectively pursue a patent violation, experts recommend that the entrepreneur

prepare a realistic budget for infringement

What is penetration pricing?

setting price to be below competition

comparing financial numbers in order to make decisions is referred to as:

ratio analysis

Copyrights may be expressed in all of the following except

records

the comprehensive business plan should be the result of

reflections on the direction of the venture

which of the following is the most common viewpoint in business plans?

the entrepreneur's viewpoint

of the following pricing models, which is not indicative of pricing in the social media age?

the growth stage model

to an entrepreneur, one of the benefits of a business plan is

the identification of critical risks

one of the easiest capital budgeting methods to understand is

the payback method

Which of the following describes advantages of the business plan for financial sources?

the plan identifies critical risks

according to the family life cycle, all of the following are identified as stages in consumer buying behavior except

family traditions

the cash flow does not come from

goods purchased on account

Which of the following statements about traditional marketing is not true

in traditional marketing, the role of a marketer is that of internal and external change agent.