FTM 310 Final Exam (Miscellaneous Previous Questions)

In class we talked about three kinds of innovation, they are:

- Breakthrough - Technological - Ordinary

The Board of Advisors differs from the Board of Directors in which ways?

- It has no legal status. - It serves only in an advisory status for some of the functions of a Board of Directors - It is more loosely tied to the organization. - It is likely to meet less frequently.

Which are the following are characteristics of an entrepreneurial environment?

- New ideas are encouraged - Trial and error is encouraged, - Failures are allowed, - Sponsors and champions are available to help, - Resources are available and accessible

The business plan may be read by employees, investors, bankers, venture capitalists, suppliers, customers, advisors, consultants, and others. But there are three critical perspectives that must be considered carefully in writing the business plan. What are these perspectives?

- The perspective of the entrepreneur. - The marketing perspective. - The investor's or investors' perspective

The Business Plan Executive Summary is?

- Usually prepared after the business plan is written. - No more than tow or three pages in length. - Often used by investors to see if the business plan is worth reading. - A concise and convincing summary of the key points in the business plan.

After the collapse of the Soviet Union there were a number of new opportunities for entrepreneurs in Eastern Europe. What were some of these?

- selling basic building materials for people who wanted to upgrade their homes and apartments - selling basic goods like bread in private stores rather than government outlets - providing household items like furniture, drapes and carpets to new home and apartment owners - creating travel agencies or travel opportunities

The main differences in an entrepreneurial focus and the focus of a traditionally managed corporation are:

1. One is based on value creation the other on responsibility and seniority 2. Driven by a perception of opportunity versus driven by controlled resources.

The entire trademark registration process takes approximately:

13 months

A utility patent has a term of how many years?

20

The term of a copyright is the author's life plus:

70 years

Licensing is best described as

A method that involves giving a foreign manufacturer the right to use a patent, technology, production process, or product in return for the payment of a royalty

This problem-solving method involves developing new ideas by thinking without constraints

Big-dream approach

What type of innovation is illustrated by the ideas of the airplane and penicillin?

Breakthrough innovation

Our book recommends that entrepreneurs should engage in bricolage. What is bricolage? Give an example of how your project team might use bricolage.

Bricolage is defined as making do with what you have by applying combinations of the resources at hand to new problems and opportunities. Somestime bricolage is jokingly referred to as "exploiting family and friends." Our text gives the example of a farmer worrying about the numerous sinkholes that could occur on his farm due to many abandoned coal mines under his property. Mines are often full of methane, so he devised a way to use the methane to generate electricity which he then sold. He used the excess heat created by the generator to provide heat to greenhouses.

In what type of business can you have no more than 100 shareholders?

C corporation

A new entry includes all of the following except:

Creating a new product development process for your company

What are the basic steps in creating a marketing plan?

Defining the purpose or objectives. Gathering information from primary sources. Gathering data from secondary sources.

Effectuation is the way some experts think. What is effectuation? Give an example where you have used effectuation or could use it.

Effectuation is taking the resources you have and selecting possible outcomes from it. An example of myself using effectuation is when I apply for jobs, I generally apply to the companies where I know people who work there first.

Describe briefly three things you think makes an entrepreneur successful.

Entrepreneurs need to be able to recognize a need, be willing to fail, and be open to all ideas. The most successful entrepreneurs are people who have failed multiple times but never give up. Recognizing a needs will also make entrepreneurs successful because they will always find a platform for new products. Also entrepreneurs who are successful try everything and anything, because you never know what will work, or spark new ideas.

In Chapter 4 we discussed several trends that should influence our planning for a new business venture. They included:

Green, Clean energy

Each of these entrepreneurs has a unique story and qualities that have made him successful. Select the entrepreneur that stood out to you the most and discuss in a few sentences why you found his story interesting. Try not to list off general qualities that make any entrepreneur successful, but ones that are maybe more unique and specific to the one you chose.

Justin Parer worked hard and even through he was knocked down several times by failed businesses, he always got back up. He went back to school, used every resource he could get his hands on, and always asked for aid from others. He also had a willingness to change plans and move in different directions. His background in different businesses prove that he was willing to try anything and everything until he found one idea that worked.

Copyrights are registered with:

Library of Congress

Distribution, pricing, and promotion of the product are discussed in which section of the plan?

Marketing

What are some of the means of gathering primary data?

Observation Interviews Focus groups Networking Questionnaires The Internet

A business plan is actually a collection of a number of plans. List five of these plans.

Production plan Operations plan Marketing plan Organizational plan Financial plan

What are the three basic legal forms of business formation?

Proprietorship, Partnership, Corporation

The opportunity assessment plan as described in our text consists of four sections. Which of these is not one of those sections?

Section 4: Focuses on the funding and amount of money needed to launch the enterprise.

Social entrepreneurship is motivated by ____, not _______.

Social impact, profit

In most entrepreneurial activities, there is usually some luck. What was one of the lucky breaks that Bolt Threads had with their new spider silk?

Stella McCartney heard about the product and made a blouse for last year's Paris Fashion Show.

Only female mosquitoes can bite

TRUE

What company did Randy Ward create?

This End Up Furniture

A distinguishing word, name, or symbol used to identify a product is a what?

Trademark

A firm with an entrepreneurial orientation towards culture encourages eimplyees to generate ideas, experiment, and engage in other tasks that might produce creative output.

True

A new entry can be either offering a new product to a new market or creating a new organization.

True

Most entrepreneurs indicate that their most significant venture was not their first one.

True

The key to successful entrepreneurship is to develop an idea that has a market with a need for the product or service idea conceived.

True

The period of time when the environment is favorable for entrepreneurs to exploit a particular new entry is called the window of opportunity.

True

The marketing plan is designed to answer three basic questions. What are they? And for each, give an example of the answer to this question from your team's marketing plan.

Where have we been? Where do we want to go (in the short term)? How do we get there?

Offering a small product range to a small number of customer groups is:

a narrow-scope strategy

What are the main benefits of a registered trademark?

a. It establishes the right to deposit registration with customs to prevent importation of goods with a similar mark. b. It entitles you to sue in federal court for trademark infringement, which can result in recovery of profits, damages, and costs. c. It entitles you to use the notice of registration (®). d. The trademark provides notice to everyone that you have exclusive rights to the use of the mark throughout the territorial limits of the United States. e. It establishes incontestable rights regarding the commercial use of the mark.

Trade secrets can be protected for:

an unlimited period of time.

What is the #1 reason businesses fail?

cash flow

When is no income is allocated to shareholders

corporation

The legal form of business that is the favorite today with venture capitalists is?

corporation LLC

By entering a market later,

customer uncertainties have already been substantially reduced.

Marketing research begins with:

definition of objectives or purpose.

The _____ patent is granted for a 14-year term.

design

What does Warby Parker sell?

eyeglasses

A narrow-scope market strategy:

is like putting all your eggs in one basket.

Copyrights can protect all of the following except:

molded plastic parts

According to the United Nations approximately how many people will be living in urban slums in East Africa in 2020.

one billion

Primary data is:

original information collected by the entrepreneur.

When are taxex paid on pro rata shares of income on individual tax returns

partnership

In what type of business does all income appears on the owner's tax return?

proprietorship

In what type of business is there complete freedom to sell or transfer any part of the business?

proprietorship

When does death of owner dissolve the business?

proprietorship

Who should write the business plan?

the entrepreneur

A patent is a contract between the government and an inventor.

true

A provisional patent application can be used to establish the date of conception of the invention.

true

Market research, such as surveys, has limited effectiveness because it is often difficult for customers to articulate the underlying problems they have with a product or service.

true

Marketing research involves the gathering of information in order to determine who will buy the product and what the most effective promotion strategy would be.

true

a copyright protects original works of authorship

true