Entrepreneurial Unit3 Test
In handling questionable costs, the cost in question is substituted first as a _____ and then as a _____.
fixed cost; variable cost
The concept of the net present value method works on the premise that
a dollar today is worth more than a dollar in the future.
A market is
a group of consumers who have purchasing power and unsatisfied needs
A marketing information system compiles and organizes data relating to _______, revenue, and profit from the customer base.
cost
The owner of a copyright may do all of the following except
deduct the intrinsic value of the rights from one's taxes
Because of the doctrine, it is sometimes difficult to establish infringement.
fair use
It is typical for a firm to prepare an operating budget but not a cash budget.
false
The cash flow does not come from
goods purchased on account
Sometimes consumers associate a higher price with
higher product quality
The purpose of marketing research is to __________.
identify customers
What part of the marketing plan emphasizes the factors that contribute to a firm's competitive edge?
the appraisal of marketing strengths and weaknesses
To an entrepreneur, one of the benefits of a business plan is
the identification of critical risks.
A critical point to be included in the business description is:
the potential advantages the new venture has over the competition
When using the graphic approach to break-even analysis, the entrepreneur must plot which of the following?
total revenue and total costs
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.
true
Lack of any time frame to accomplish things is an indicator of the pitfall known as no realistic goals.
true
Mobile social media applications can be differentiated based on location-sensitivity as well as on time-sensitivity.
true
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 are suggestions to minimize legal costs?
visit the lawyer during normal hours of operation
Which of the following statements about a business plan is true?
It is the minimum document required by any financial source.
The entrepreneur should expect to encounter a friendly and supportive audience when presenting the business plan to potential financial sources.
false
A business plan __________ potential financial backers.
establishes a first impression of the company and its principals on
Secondary data consists of
existing information
Pro forma statements show the firm's present financial position.
false
The entrepreneur's professionalism and how well he or she handles the venture capitalist is far more important than being well organized and prepared.
false
Pricing in the social media age can be based on a model that offers basic service for free.
true
How many months of the year should be illustrated in the first pro forma income statement?
twelve
Gross margin measures profitability at the gross profit level: the number of dollars of gross margin produced for every $1 of sales.
true
What is meant by product life cycle pricing?
The pricing needs to be adjusted at each stage in a product's life cycle.
Which of the following statements about the marketing skills of great entrepreneurs is true?
They have clear visions of what they want to achieve next.
Which of the following influences the choice of marketing philosophy?
competitive pressure
In the simple linear regression analysis equation, Y = a + bx, b represents
the slope of the line
A copyright provides exclusive rights to creative individuals for the protection of their artistic productions.
True
Anyone who violates an author's exclusive rights under a copyright is liable for infringement.
True
Because corporate law makes it difficult for businesses to consider employee, community, and environmental interests in their decision making, the B corporation has been introduced.
True
One of the principal advantages of a corporation is that the stockholder's liability (the most money a person can lose) is limited to an individual's investment.
True
The object of a patent is to provide the holder with a temporary monopoly on his or her innovation.
True
The two parts of a patent application are specification and claims.
True
Which of the following is the most common viewpoint in business plans
an entrepreneur's viewpoint
In some professional areas, the business plan is referred to as
an investment prospectus
One type of budget used by the entrepreneur is
an operating budget
To establish a sole proprietorship, a person needs to
obtain whatever local and state licenses are necessary.
Which of the following is a critical factor to be considered in the management segment?
organizational structure
If an entrepreneur concludes that an innovation will withstand any legal challenge, a patent should be
pursued
The textbook recommends which of the following devices to help in the oral presentation of a business plan?
an outline
Which of the following is a critical factor that should be discussed in the management segment?
board of directors and consultants
The part of a patent application that defines and limits the patented invention is known as the
claim
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.
Control versus communication is an important distinction between social media marketing and traditional marketing.
false
Financial information is important to entrepreneurs because:
it pulls together all the information presented in other segments of the business.