Exam 1- EEE 2023

Réussis tes devoirs et examens dès maintenant avec Quizwiz!

An individual who is thinking about leaving a​ $75,000-per-year job to start a new firm requires​ _____ rate of return than a person thinking about leaving a​ $50,000-per-year job.

higher.

An emerging industry is one​ _____________.

in which standard operating procedures have yet to be developed

The most common type of franchise arrangement is​ a(n) ______ franchise agreement.

individual

PepsiCo, Coca-Cola, Dr.​ Pepper, and Schweppes are a group of firms that produce carbonated beverages.​ Together, these firms constitute​ a(n) ______.

industry. similar products.

Women-owned business made up more than 60 percent of the total in the​ _____ sector.

health care and social assistance. This sector is dominated by​ women-owned businesses.

When firms resist​ ____, employees are left with good ideas that go unfulfilled.

innovation. Because of their passion and​ commitment, some employees may choose to leave the firm that resists innovation.

If a firm introduces a new business​ process, _____ is a key resource.

intellectual property protection.

One study of 120 business founders revealed that​ _______ fully developed their products without getting feedback from potential buyers.

more than half.

An industry is attractive if it sells products or services that customers​ "______" rather than​ "want to​ have."

must have.

That entrepreneurs are gamblers is a​ ____.

myth. because entrepreneurs are usually moderate risk takers.

The final section of First Screen is called​ ______.

overall potential

CitySlips makes​ portable, comfortable shoes that fit into most​ women's purses. The opportunity for CitySlips came from​ ______.

solving a problem.

Jay Sorensen dropped a cup of coffee in his lap because the paper cup was too hot. This led Sorensen to invent an insulating cup sleeve and to start a company Java Jacket to sell it. Sorensen found his opportunity in​ _____

solving a problem.

Which is the first section of First​ Screen?

strength of business idea.

Spouses typically have a​ _______ relationship.

strong-tie

____ led to a number of senior entrepreneurs.

Corporate Downsizing.

​_____ firms often resist innovation.

Established. Established firms are probably too set in their ways and so may resist innovation.

Which of the following is NOT a primary characteristic of successful​ entrepreneurs?

Lack of persistence. Entrepreneurs are persistent in that they are tenacious despite facing failures.

_____ is rarely the primary reason entrepreneurs start new firms and persevere.

Money.

Which one of the following is NOT a common trait or characteristic of an​ entrepreneur?

Pessimistic deposition. Entrepreneurs have to be of optimistic disposition because of the many challenges they encounter.

Entrepreneurship is defined as the process by which individuals pursue opportunities without regard to​ _____ they currently control for the purpose of exploiting future goods and services.

Resources. An entrepreneur may not have access to all the resources required to launch the​ venture, and organizing resources is a critical step.

Which one of the following is NOT a common trait and characteristic of an​ entrepreneur?

Short attention span

​_____ bias is the tendency to search for information that validates​ one's preconceptions.

confirmation.

Over the course of the last few​ years, Etsy has built a network of over 1.7 million sellers of artisanal goods. The fact that it would take a tremendous effort on the part of a competitor to match​ Etsy's network of sellers makes​ Etsy's business model difficult to​ _____.

copy

A(n) _____ creates something new

an inventor

Omega Vacuums routinely sends teams of testers to homes of its users to see how its product is working and to seek insight for new product ideas. Omega Vacuums​ day-in-the-life research is an example of​ ______ research.

anthropology. studies between humans and their work.

Conservative firms​ ________.

are risk-averse. Conservative firms are​ risk-averse in contrast to entrepreneurial firms.

The most common reason why people become entrepreneurs is​ to:

be their own boss

Although there are many important things to consider when launching a new​ venture, nothing else matters if the product or service​ ________.

doesn't sell.

For feasibility​ analysis, a(n)​ ______ financial assessment is sufficient.

preliminary.

An opportunity cannot be pursued until​ it's _______.

recognized.

The most important issues to consider in financial feasibility analysis are​ ________, financial performance of similar​ businesses, and the overall financial attractiveness of the proposed venture.

total start-up cash needed. A key part of financial feasibility analysis is to identify the total cash needed to prepare the business to make its first sale.

Which of the following relationships is more likely to spark a new​ idea?

weak-tie.

Bing entered the search engine market long after the​ ______ had​ closed, making it difficult for it to get market share.

window of opportunity

The term​ ______ is a metaphor describing the time period in which a firm can realistically enter a new market.

window of opportunity. A window signifies something​ that, when​ open, allows entry. It also indicates that what can be opened can also be shut.

An attractive industry is​ _____ rather than​ _____.

young; old.

By​ 2020, ____ billion people are expected to own mobile phones.

2.87

An entrepreneur assembles and then integrates all the resources needed to transform an invention into a viable business. Which of the following is NOT a resource assembled by an​ entrepreneur?

A. Confidence B. Business model C. Money D. Strategy E. People Confidence is not a resource that an entrepreneur​ assembles; it is something that an entrepreneur already has.

A bug report is a popular technique that is used in classrooms to​ teach______.

brainstorming.

Linda Tethers gathered a group of people at a designated spot.​ Linda, the leader of the group asked the participants to share their ideas. One person shared an​ idea, another person reacted to​ it, another person reacted to the​ reaction, and so on. What Linda was doing is an example of a​ ________.

brainstorming. it's free-flowing.

The ability to effectively execute a business idea means developing a​ ______.

business model. Along with developing a business​ model, execution requires a​ team, raising​ money, and developing​ partnerships, among other things.

Once the business idea cuts muster at the First Screen​ stage, the next step is to complete a​ ______.

business plan.

A​ _____ is more focused on planning and selling.

business plan. used to plan the venture and to raise capital.

A​ one-page document that​ includes, among other​ things, a description of the product or service and its intended target market is called the​ _______.

concept statement. this is used for early feedback on a business idea.

A​ ____ test involves showing a preliminary description of a product or service idea.

concept.

Established firms with an orientation toward acting entrepreneurially practice _____

corporate entrepreneurship

​3M, a company with more than​ $30 billion in revenues in​ 2016, encourages its employees to constantly look for business opportunities in terms of future goods and services. What 3M is doing is called​ _____.

corporate entrepreneurship. Established firms with an orientation toward acting entrepreneurially practice corporate entrepreneurship. 3M is encouraging its employees to act like entrepreneurs

Uber provides transportation service for people by quickly connecting riders with the owners of private cars who are willing to provide rides. As far as local taxis are​ concerned, Uber's business model​ ___ their business.

disrupts

Level of disposable income is a part of​ ____ forces.

economic.

Airbnb is a​ first-of-a-kind business that provides an interface to connect people with homes to rent and those who are looking for a place to stay. Airbnb is​ a(n) ____ firm.

entrepreneurial firm. Airbnb capitalized on an opportunity to offer a new form of renting and so is an entrepreneurial firm.

By connecting drivers and​ passengers, Uber took on the taxi market and brought a new option to customers. Uber is​ a(n) ____ firm.

entrepreneurial. Uber capitalized on an opportunity to offer a new form of car travel and so is an entrepreneurial firm.

In the​ idea-generation process, insight is also called the​ "___" experience.

eureka.

The Chinese saying​ "To open a business is very​ easy, to keep it open is very​ difficult" indicates the importance of​ ________.

execution intelligence

Which of the following is NOT a step to generating new​ ideas?

execution.

In​ 1994, Jeff Bezos quit his lucrative job at a New York investment firm and headed for Seattle with a plan to find an attractive opportunity and launch an​ e-commerce company. He founded Amazon. Amazon is an example of​ a(n) ______ venture.

externally-stimulated. Bezos wanted to launch a business and then he found an​ opportunity

An opportunity is​ a(n) ___ set of circumstances that creates a need for a new​ product, service, or business.

favorable. What this means is that circumstances favor a situation that results in a need.

First Screen is a template entrepreneurial firms use to complete a​ _______.

feasibility analysis

Many entrepreneurs make the mistake of identifying a business idea and then jumping directly to developing a business model without doing the​ ________.

feasibility analysis. feasibility has to be examined before a business model is developed.

​______ analysis is the process of determining whether a business idea is viable.

feasibility. If a business idea falls short on one or more of the components of feasibility​ analysis, it should be dropped or rethought.

​____ is a template entrepreneurial firms use to complete a feasibility analysis.

first screen.

Dick Certo gathered 8 amateur athletes who were selected because of their relationship to the issue being​ discussed, which was finding a quick cure to a pulled hamstring. Dick was forming a​ ________ group.

focus.

In examining resource​ sufficiency, the focus in organizational feasibility analysis is on​ ____ resources.

nonfinancial. Financial resources are part of the financial feasibility analysis and not organizational feasibility analysis.

The proper time to determine a​ company's business model is following the initial validation of the business idea and prior to fleshing out the​ _________.

operational details.

​A(n) _____ is a favorable set of circumstances that creates a need for a new​ product, service, or business.

opportunity.

Social networking sites​ aren't popular because they can be used to post information and photos on a website. They are popular because they allow people to connect and communicate with each​ other, which is a natural human tendency. This is an example of finding an opportunity by observing trends in​ _____.

social forces.

Demographic changes are an example of​ ____ forces.

social.

The word​ "entrepreneur" was originally used to describe people who​ "_______" between buyers and sellers.

take on the risk (key element of what entrepreneurs do)

Shelter Pups makes​ eco-friendly plush animals. The company aims its product at parents who are willing to pay a premium for​ super-safe, environmentally​ friendly, educational toys. This is Shelter​ Pups' ______.

target market.

A​ firm's _____ is the limited portion of the industry that it goes after or to which it wants to appeal.

target market. This is the segment or slice of the market that the firm is after.

Which of the following is NOT a factor against which a​ start-up's projected rate of return should be​ weighed?

the returns required by the venture capital firms.

Sun​ Tzu's quote​ "Time spent in reconnaissance is seldom​ wasted" is relevant to​ ______.

competitor analysis

The five forces model provides a picture of an industry​ ______.

"as is"

The typical royalty percentage in franchising is​ ____ percent.

5%

In The Hartford 2015​ survey, a total of​ __ percent rated themselves as conservative rather than risky.

76%. This was the response in the survey and suggests that most entrepreneurs are moderate risk takers.

​Low-overhead home-based and service businesses typically charge an initial franchise fee of​ ____ percent to​ ____ percent of gross sales.

8; 10

Which one of the following is a question an entrepreneur has to ask before pursuing the idea of starting a​ firm?

Is the industry a realistic place for a new venture to​ enter?

Before deciding to​ franchise, a firm should consider a number of things. Which one of the following is NOT one of​ them?

The soundness of the​ firm's business model.

The franchise business plan should follow the format of​ a(n) _____ plan.

conventional business plan

Which of the following is NOT a disadvantage of franchising as a method of business​ expansion?

cost savings

A bed and breakfast is an example of​ a(n) ______.

lifestyle firm. A bed and breakfast provides the owner the opportunity to pursue a lifestyle and earn a living while doing so.

Ryanair, like Southwest​ Airlines, provides​ point-to-point, no-frills airline​ service, in​ Ryanair's case across Europe. This is an example of​ _______ disruption.

low-end. Ryanair capitalizes on​ "performance oversupply" that increases the price of airline flights.

​A(n) ____ franchise agreement is similar to an area franchise​ agreement, with one major difference.

master. A master franchise agreement is similar to an area franchise​ agreement, except that a master franchisee has the right to offer and sell the franchise to other people in the area.

A hairstyling salon is an example of​ a(n) _____ firm.

salary-substitute. A hairstyling salon would yield a level of income for its​ owner(s) that is similar to what they would earn when working for an employer.

The vast majority of small businesses are​ _____ firms.

salary-substitute. Salary-substitute firms offer​ common, easily​ available, not particularly innovative products or services to fit customers. The vast majority of small businesses fit into this category.

Getting data from industry studies is a type of​ _____ research.

secondary.

Studies show that people with parents who were​ ________ are more likely to become entrepreneurs.

self-employed. After witnessing a​ father's or​ mother's independence in the​ workplace, an individual is more likely to find independence appealing.

The litmus test for entrepreneurs is their ability to persevere through​ _______.

setbacks and failures. Because entrepreneurs are typically trying something​ new, the possibility of failure exists. Tenacity is a hallmark of the entrepreneur.

Which is the last step an entrepreneur should take to successfully set up a franchise​ system?

Help franchisees with site selection and the grand opening of their franchise outlets.

Women-owned businesses in the United States generated over​ ____ in revenues in 2016.

1.6 Trillion. Not only did such businesses generate large​ revenues, they also employed nearly 9 million people.

The Bouqs company succeeded in the​ cut-to-order flower delivery business because of execution intelligence. As an indication of​ this, Bouqs has raised over​ $ ____million in funding since 2012.

19 million.

Using the freemium​ model, Dropbox currently has​ ______ million customers.

200

According to​ IBISWorld, the market for​ e-books is expected to grow at an annual rate of​ ___ percent over the next 5 years.

3.7%

According to the Minority Business Development​ Agency, in 2012 the average gross receipts for​ minority-owned firms was​ $ ______.

58,119.

According to the American Express OPEN study in​ 2016, women-owned businesses employed nearly​ ____ people.

9 million people

​___ theory argues that for organizations with multiple units​ (such as restaurant​ chains), it is more effective for the units to be run by franchisees than by managers who run​ company-owned stores.

Agency

Which of the following is NOT a question to ask in determining whether franchising is a good fit for people thinking about starting their own entrepreneurial​ venture?

Are you willing to give​ orders? A franchisee has to be willing to take orders from the​ franchisor, not so much to give orders.

Companies that feature a​ subscription-based business model normally offer a high level of customer service to​ ________.

Churn. Churn refers to the number of subscribers lost each month. Customer service is in place to minimize churn.

​______ is an opportunity in fragmented industries.

Consolidation

Which of the following is NOT a common misperception about​ franchising?

Franchising is not a safe investment

​_____ competitors are businesses that offer products or services that are identical or highly similar to those of the firm in question.

Direct

​______ occur(s) when​ mass-producing a product results in lower average costs.

Economies of scale

Which of the following is NOT a step in purchasing a​ franchise?

Examine the​ franchisor's business model.

Which of the following is NOT an advantage of franchising as a method of business​ expansion?

Facilitating agency issues

There are several rules of thumb for writing mission statements. Which one of the following is NOT a rule of​ thumb?

How much profits should we make? A mission​ doesn't measure​ profitability; it simply defines the​ firm's purpose.

An in-depth analysis of​ a(n) _____ helps a firm determine whether the niche or target markets it identified during its feasibility analysis are accessible and which ones represent the best points of entry for the new firm.

Industry. Industry analysis is the next step to determine an entry point for the firm.

Franchising may be a particularly good choice for someone who wants to start a business but​ ______.

has no prior business experience

John Banega developed a drug that offers a potential cure for pediatric blindness.​ However, he finds a number of government and legal issues that make it difficult for him to launch his drug company. Which of the following force is he facing in the five forces model of industry​ analysis?

Threat of stakeholders.

Which is the first step in purchasing a​ franchise?

Visit several of the​ franchisor's outlets.

Amy Noonan bought three salon franchises from a master franchisee. Amy Noonan is called a​ ____ franchisee.

sub

When an organization has multiple​ units, it is more effective for the units to be run by franchisees than by managers who run​ company-owned stores. This is based on a concept called​ _____ theory.

agency

It is useful for a new venture to think about its position at​ ____ the company level and the product or service level.

both.

The five forces model helps a firm determine whether it should enter a particular industry and whether it can​ _____________.

carve out an attractive position in that industry.

Netflix has a subscription business​ model, where it adds and loses subscribers each month. One of the disadvantages of the subscription business model is​ ____.

churn

Etsy generates its revenues by bringing two parties together to complete a sale. Its revenue stream is based on​ ____.

commissions.

​A(n) _________ helps identify a​ firm's primary source of competitive advantage.

competitive analysis grid

The information that is gathered by a firm to learn about its competitors is called​ _______.

competitive intelligence

Prior to launching his​ Korean-Mexican fusion​ restaurant, Gregory Kim is making a detailed evaluation of the restaurants in his market area. Gregory Kim is doing a​ ____ analysis.

competitor

​A(n) _____ industry is an industry or a part of an industry that is experiencing a reduction in demand.

declining

Google's AdWords program​ _____ Yahoo's business model that required advertisers to spend at least​ $10,000 for a minimum ad buy.

disrupted. AdWords completely changed the way the Internet ad market worked.

Because a high level of uncertainty characterizes​ _____ industries, any opportunity that is captured may be​ short-lived.

emerging

Gio Franco wanted to explore the possibility of starting a party center for kids in his small town. To get an idea of the attractiveness of the​ idea, Gio invited six set of parents of young children to discuss what they liked and what they disliked about the options available for​ children's playtime. The group of parents assembled is a​ _______.

focus group. new business ideas.

​A(n) ____ industry is one that is characterized by a large number of firms of approximately equal size.

fragmented. Here, market share is divided among many​ firms, none of which is dominant.

Franchisors are required by law to disclose all their costs in a document called the​ _____.

franchise disclosure document (which has 23 categories of information)

Which one of the following is NOT a common rule for​ brainstorming?

freeloading.

Pandora uses a business model where the firm provides a basic version of its service for free and makes money by selling a premium version of the service. It is using the​ ______ business model.

freemium

Most of the standard business​ models, with the exception of the​ ______ model, have been in place for some time.

freemium. Only recently have companies like Dropbox used this model.

For the​ start-up Her​ Campus, there are​ 4,000-plus college females volunteering in chapters across the country writing articles in which they believe other college females will be interested. The volunteer group is an example of​ ______ in Her​ Campus's business model.

key assests

The three important elements of a​ firm's business model are its target​ market, its basis for​ differentiation, and its​ _______.

key assests

If a​ start-up requires employees with specialized​ skills, the​ community's labor pool is a​ ______.

key resource.

​"Click here to rent an Omega​ car," is an example of a​ _______..

landing page. provides direct sales copy.

Airbnb connects someone who wants temporary access to an apartment with someone who owns an apartment. Its revenue stream is called​ _____.

matchmaking. Airbnb acts as a match maker

Slow increases in demand are a feature of​ _____ industries.

mature. This is because there are primarily repeat rather than new customers.

​Microsoft's statement​ "to enable people and businesses throughout the world to realize their full​ potential" is an example of a​ company's _____.

mission.

John and Andy identified their business idea through social contacts. John and Andy are​ ______ entrepreneurs.

network.

The final section of First Screen is called​ "_______."

overall potential.

Some entrepreneurs transition from a traditional job to owning their own business more gradually by starting their business​ ___ to begin with.

part-time. By starting a business​ part-time, individuals can gain valuable​ experience, tuck away the money they​ earn, and find out whether they really like the business before deciding to leave their job.

It is useful for a new venture to think about its​ _____ at both the company level and the product or service level.

position

Getting feedback from industry experts is a type of​ _____ research.

primary.

​_____ research is research collected by the​ person(s) completing the analysis.

primary. Primary research includes talking to prospective​ customers, getting feedback from industry​ experts, conducting focus​ groups, and administering surveys.

Entrepreneurial firms are typicaly _____ innovators.

proactive. Entrepreneurial firms are not averse to taking calculated risks.

​Spiro's Gyros established a network of stores that sell​ Spiro's Gyros products and use the​ Spiro's Gyros trademark in their advertising and promotions. This is an example of​ a(n) _____ franchise.

product and trademark

​Buffy's Pastries is generally concerned more with maintaining the integrity of its products than with monitoring the​ day-to-day activities of its dealers.​ Buffy's Pastries is likely to use​ _______ franchising.

product and trademark. The franchisor controls the use of the product and the trademark and not the​ day-to-day operations.

The two most important elements in any business are​ ________.

products and customers. No business function would make a difference if a firm did not have good products with the capability to satisfy customers.

The five forces in the five forces model determine the threat to industry​ _______.

profitability.

In financial​ statements, pro forma is another term for​ _____.

projected.

Pongomania is a​ start-up that makes a popular online game. To test resource​ sufficiency, Pongomania wanted to identify its most critical nonfinancial resources. Which of the following is NOT a type of nonfinancial resource critical for a​ start-up like​ Pongomania?

recreational facilities.

The two primary issues to consider in organizational feasibility analysis are management prowess and​ _______.

resource sufficiency. It is important to determine whether the proposed venture has or is capable of obtaining sufficient resources to move forward.

An organizational feasibility analysis is conducted to determine whether a proposed business has sufficient management​ expertise, organizational​ competence, and​ _____ to successfully launch.

resources.

John Dexter started​ "Dexter's Dry​ Cleaning" about six years ago and today he earns about what he was making as the manager of a large dry cleaning store before he launched his firm.​ Dexter's Dry Cleaning is an example of a​ _______ firm.

salary-substitue. Such firms yield a level of income for their owner that is similar to what they would earn when working for an employer.

A​ dry-cleaning business is an example of​ a(n) ______.

salary-substitute firm.

A​ firm's business model is its plan or recipe for how it​ creates, delivers, and captures value for its​ ______.

stakeholders

At a very​ broad, 50,000-foot​ level, a mission statement indicates how a firm intends to create value for​ _______.

stakeholders. A mission statement articulates a​ business's overarching priorities and how the firm can create value for its stakeholders.

Which of the following is NOT a characteristic of an attractive​ industry?

the industry is crowded. A crowded industry may mean lots of players and would be one where you would have to compete intensely for market share.

A​ start-up's projected rate of return should be weighed against​ _____ to assess whether the venture is financially feasible.

the risks assumed in launching the business. risks and returns go hand in hand.

Access to distribution channels are a relevant factor in which of the five​ forces?

threat of new entrants

The term window of opportunity is a metaphor describing the​ ____ in which a firm can realistically enter a new market.

time period


Ensembles d'études connexes

DWI AND IMPLIED CONSENT OFFENSES

View Set

Chapter 1: Environmental Science and Sustainability: What's the Big Idea? ENV 11 QUIZLET

View Set

PC 7.1-7.3 Review Solving Systems of Equations

View Set

HTML, CSS, JS Interview Questions

View Set

Literacy Grammar: Modifiers - Details in Writing

View Set