entrepreneurship chp 9-15
The cash-flow budget provides an overview of cash inflows and outflows for the budget period.
T
Secondary data consists of a. internal data only. b. external data only. c. existing information. d. newly developed primary research.
c. existing information.
Contribution margin is the difference between a. selling price and fixed cost per unit. b. purchase price and variable cost per unit. c. selling price and variable cost per unit. d. purchase price and fixed cost per unit.
c. selling price and variable cost per unit.
That part of a patent application which identifies the features that are protected is known as the a. claim. b. essence. c. identification. d. particular.
a. claim.
A "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
The principal objective of capital budgeting is to maximize the value of the firm.
T
The two parts of a patent application are specification and claims.
T
Three primary legal forms of organization are the sole proprietorship, the partnership, and the corporation.
T
Works created and copyrighted after January 1, 1978, are protected for the life of the author plus 70 years.
T
logo
trademark
Which of the following describes advantages of the business plan for financial sources? a. The plan identifies critical risks. b. The plan helps assess the entrepreneur's family. c. the plan identifies sources of capital. d. all of these.
a. The plan identifies critical risks.
A market is a. a group of consumers who have purchasing power and unsatisfied needs. b. a group of known purchasers. c. a way of gaining consumer data. d. a segment of the economy.
a. a group of consumers who have purchasing power and unsatisfied needs.
The traditional accounting equation that verifies the accuracy of the entrepreneur's balance sheet is a. assets = liabilities + owner's equity. b. assets = liabilities - owner's equity. c. assets + liabilities = owner's equity. d. assets + owner's equity = liabilities.
a. assets = liabilities + owner's equity.
When a trademark becomes the name of a general group of products or services, the trademark protection may be lost because of a. generic meaning. b. cancellation proceedings. c. abandonment. d. cleaning-out procedure.
a. generic meaning.
Specific forms of partnership include which of the following? a. limited partnerships and limited liability partnerships b. limited partnerships c. S partnerships and limited liability companies d. limited partnerships and S partnerships
a. limited partnerships and limited liability partnerships
The registration of a trademark has a lifetime of a. 20 years plus 5-year renewable periods. b. 10 years plus 10-year renewable periods. c. 25 years. d. the lifetime of the owner.
b. 10 years plus 10-year renewable periods.
The owner of a copyright may do all of the following except a. perform the work publicly. b. deduct the intrinsic value of the rights from one's taxes. c. display the work publicly. d. reproduce the work.
b. deduct the intrinsic value of the rights from one's taxes.
A fixed cost a. changes in response to changes in activity for a given period of time. b. does not change in response to changes in activity for a given period of time. c. changes inversely to changes in activity for a given period of time. d. does not do any of these.
b. does not change in response to changes in activity for a given period of time.
A key concept in developing an expense budget is that of a. taxes. b. fixed costs. c. rent. d. labor costs.
b. fixed costs.
Of the following, which is not associated with entrepreneurial tactics in market research? a. guerrilla marketing b. in-person interviews c. blog monitoring d. lead user research
b. in-person interviews
When developing a survey, you should consider a. giving concise but incomplete instructions. b. including questions only pertaining to the study. c. the personality of the respondents. d. ask leading and biased questions.
b. including questions only pertaining to the study.
Of the following, which does the textbook identify as critical to the marketing planning process? a. market niche b. marketing research c. market segmentation d. marketing myopia
b. marketing research
The 4Ps of marketing include all the following except: a. promotion b. product c. price d. principle
d. principle
Comparing financial numbers in order to make decisions is referred to as: a. comparable fractions. b. descriptive statistics. c. debt reduction. d. ratio analysis.
d. ratio analysis.
rank the five basic types of consumers in order: early adopters early majority laggards innovators late majority
innovators early adopters early majority late majority laggards
When considering bankruptcy, entrepreneurs as sole proprietors normally prefer a. Chapter 7. b. Chapter 13. c. Chapter 5. d. Chapter 11.
b. Chapter 13.
All of the following techniques are used in gathering primary data except a. surveys b. analysis of financial records c. observational methods d. experimentation
b. analysis of financial records
What is penetration pricing? a. setting price to match the competition b. setting price to maximize market share c. setting price to maximize profit d. setting price to switch customers to new product lines
b. setting price to maximize market share
All of the following are ways of invalidating a trademark except a. cleaning-out proceedings. b. abandonment. c. clearing-out proceedings. d. generic meaning.
c. clearing-out proceedings.
Inhibitors to marketing research include all of the following except: a. cost b. irrelevancy c. distribution d. complexity
c. distribution
Of the following pricing models, which is not indicative of pricing in the social media age? a. the freemium model b. the affiliate model c. the growth stage model d. the subscription model
c. the growth stage model
An exclusive protection of a literary or an artistic production
copyright
best selling novel
copyright
computer program
copyright
motion picture
copyright
musical comedy
copyright
stage play
copyright
Which of the following falls under Chapter 7 bankruptcy? a. The debtor fails to file income taxes. b. The debtor surrenders most property to a court trustee. c. The debtor is arrested. d. The debtor is relieved of obligations.
d. The debtor is relieved of obligations.
The completed business plan provides the entrepreneur with a. a sense of well-being. b. a product-launch timetable. c. a nicely designed booklet. d. a tool for communicating with financial sources.
d. a tool for communicating with financial sources.
Which of the following are not trademarks? a. symbols b. mottos c. names d. generic words
d. generic words
Capital budgeting is designed to show a. which project is most profitable. b. how to evaluate projects based on rates of return. c. which of several mutually exclusive projects should be selected d. how many projects, in total, should be selected.
d. how many projects, in total, should be selected.
slogan
trademark
symbol
trademark
word (such as coke or pepsi)
trademark
A budget is one of the most powerful tools that an entrepreneur can use in planning business operations.
T
A copyright provides exclusive rights to creative individuals for the protection of their artistic productions.
T
A trademark is a distinctive name, mark, or symbol that is identified with a company's product.
T
Financial information pulls together all the information presented in the other segments of the business.
T
A distinctive name, mark, symbol, or motto identified with a company's product
trademark
company's initials
trademark
Break-even analysis is used to tell how many units must be sold in order to break even at a particular selling price.
T
In the marketing shift from the 4Ps to the 4Cs, price shifts to choice and promotion shifts to communities.
T
Marketing information that has already been compiled is known as secondary data.
T
Marketing research involves the gathering of information about a particular market, followed by analysis of the information.
T
Mobile social media applications can be differentiated based on location-sensitivity as well as on time-sensitivity.
T
What is meant by pricing for the life cycle? a. that pricing needs to be adjusted at each stage in a product's life cycle b. that pricing of new products needs to start out high and end low c. that pricing of new products needs to start out low and end high d. that pricing needs to be increased at each stage in a product's life cycle
a. that pricing needs to be adjusted at each stage in a product's life cycle
Which of the following is a critical factor to be considered in the management segment? a. location of the plant b. product design c. suppliers d. organizational structure
d. organizational structure
There are two parts to a patent application, claims and a. percentage. b. value. c. integration. d. specification.
d. specification.
Which of the following is a form of the pro forma statement? a. costs of goods sold b. balance sheet c. cash flow statement d. budget
b. balance sheet
A variable cost a. changes in the same direction and in inverse proportion to changes in operating activity. b. changes in the same direction and in direct proportion to changes in operation activity. c. is synonymous with labor costs d. changes in the opposite direction and in direct proportion to changes in operating activity
b. changes in the same direction and in direct proportion to changes in operation activity.
The textbook recommends that social media marketers consider three aspects of social media when using social media tools for marketing purposes. What are they? a. cost, complexity, and relevancy b. creating something of value, enabling customer promotion, and encouraging participation c. resource management, context, and content d. control, contribution, and distribution
b. creating something of value, enabling customer promotion, and encouraging participation
Break-even analysis is a technique commonly used to assess the a. rate of return on investment. b. expected product profitability. c. net present value. d. total costs.
b. expected product profitability.
Because of the _____ doctrine, it is sometimes difficult to establish infringement. a. freedom of information b. fair use c. right to publish d. acquisition
b. fair use
A business plan must illustrate the current status of the venture but not the projected results.
F
Chapter 7, Chapter 9, and Chapter 11 are the most common forms of bankruptcy.
F
Contribution margin is the difference between the selling price and the fixed cost per unit.
F
It is usually more expensive to gather secondary data than primary data.
F
It often is possible to obtain more capital and a better range of skills in a sole proprietorship than in a partnership.
F
Laws governing intellectual property rights include copyrights, trademarks, and leases.
F
Only major strategic decisions need to be supported through marketing research.
F
Pricing procedures are the same for all types of ventures.
F
Pro forma statements show the firm's present financial position.
F
Skimming is setting prices at such a low level that products are sold at a loss.
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 first step in the preparation of the cash flow budget is the identification and timing of cash outflows.
F
The pro forma balance sheet is used in the critical risk segment of the business plan.
F
The registration of a trademark lasts for 40 years, with continuous renewal every 10 years.
F
The set of assumptions on which financial projections are based have little meaning.
F
Which of the following statements is not part of the "five-minute reading" by venture capitalists? a. Read the latest balance sheet. b. Determine the characteristics of the venture and industry. c. Determine the strengths and weaknesses of the entrepreneur. d. Determine the financial structure of the plan.
c. Determine the strengths and weaknesses of the entrepreneur.
From where does an S corporation take its name? a. Uniform Commercial Code b. state law c. Subchapter S of the Internal Revenue Code d. S Lab
c. Subchapter S of the Internal Revenue Code
Financial information is important to entrepreneurs because it pulls together all the information presented in other segments of the business and: a. it quantifies all the assumptions concerning business operations. b. it justifies long term commitment to the business. c. it predicts the competitive environment in which the business operates. d. it answers all questions about the business and the entrepreneur.
a. it quantifies all the assumptions concerning business operations.
To effectively pursue a patent violation, experts recommend that the entrepreneur a. prepare a realistic budget for infringement. b. sue as quickly as possible. c. fill out a preprinted form obtained from a patent office. d. handle all matters personally.
a. prepare a realistic budget for infringement.
The comprehensive business plan should be the result of a. reflections on the direction of the venture. b. investor's promises of capital. c. continuous operations of the venture. d. the entrepreneur's best guesses.
a. reflections on the direction of the venture.
The 4Cs of marketing include all the following except: a. choice b. communities c. cocreation d. continuity
d. continuity
Market segmentation is a. heavily psychographic in nature b. the process of identifying a specific set of characteristics that differentiate one group of consumers from the rest c. the process of categorizing products into different segments d. the process of segmenting the sales force
b. the process of identifying a specific set of characteristics that differentiate one group of consumers from the rest
Which of the following questions should an entrepreneur ask when a business plan is turned down? a. "That means you do not know how to evaluate a good plan?" b. "Can you identify friends who would like this kind of deal?" c. "If you were in my position, how would you proceed?" d. none of these.
c. "If you were in my position, how would you proceed?"
Works created after January 1, 1978, have a copyright for the life of the author plus a. 14 years. b. 10 months. c. 70 years. d. 50 years.
c. 70 years.
The traditional accounting equation is: assets + liabilities = owner's equity.
F
One of the principal advantages of a corporate form of ownership is that liability (the most money a person can lose) is limited to an individual's investment.
T
Pricing in the social media age is sometimes based on a model that offers basic levels of service for free.
T
Social media marketing is the application of online collaborative media for marketing purposes.
T
The concept of the net present value method works on the premise that a. a dollar today is worth less than a dollar in the future. b. a dollar today is worth the same in the future. c. a dollar today is worth more than a dollar in the future. d. a dollar today cannot be measured in future dollars.
c. a dollar today is worth more than a dollar in the future.
The cash flow budget describes a. profits/costs. b. interest income/interest expense. c. cash inflows/cash outflows. d. cash outflows/accounts receivables.
c. cash inflows/cash outflows.
All of the following are recognized as advantages of partnerships except: a. possible tax advantages b. ease of formation c. lack of continuity d. direct rewards
c. lack of continuity
The principle objective of capital budgeting is to a. maximize the assets of the firm. b. minimize the risks of the firm. c. maximize the value of the firm. d. optimize the number of project requests.
c. maximize the value of the firm.
A budget that is a statement of estimated income and expenses over a specified period of time is referred to as an a. entrepreneurial budget. b. anticipated budget. c. operating budget. d. expected results budget.
c. operating budget.
What is skimming? a. setting price to switch customers to new product lines b. setting price to match the competition c. setting price to maximize profit d. setting price to maximize market share
c. setting price to maximize profit
An important guideline in putting the plan together is a. to impress with excessive detail b. to not highlight critical risks. c. to over diversify. d. to identify the target market.
d. to identify the target market.
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 a. assets minus liabilities. b. assets minus (liabilities plus owner's equity). c. assets minus owner's equity. d. zero.
d. zero.