MGMT 340 Final Exam

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Which stage of the creative process includes on-the-job training? a. Implementation b. Verification c. Illumination d. Preparation

Who said "Creativity thinks up new things"? a. Dr. Phil b. Barry Bonds c. Ronald Reagan d. Professor Levitt

. What inevitably happens to the master juggler? a. Gets cancer b. He loses his job c. Dies d. He drops some balls

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1. Lean Startup is a principled approach to new product development. True False

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1. The author agrees that a good plan, a solid strategy, and thorough market research works for startups. True False

Building the Prototype of your business is what kind of process? a. Single Step b. One day c. Continuous d. Impossible

Employees must be given the tools and resources they need to be creative. One of the most valuable set of resources is ________. a. setting limits and providing challenges b. reinforce traditional problem solving methods c. establishing rules and guidelines d. time, support and encouragement

Harvard's Ted Levitt says that creativity is ________ new things, and innovation is ________ new things. a. thinking; doing b. seeing; doing c. thinking; applying d. doing; thinking

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Innovation accounting will still work even if a startup is being misled by vanity metrics such as gross number of customers and so on. Select one: True False

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Testing with prototypes is known as beta tests. True False

What does the author say to the question "How do I get my people to do what I want"? Select one: a. Need to pay them a lot b. You can't c. Fire Them d. Punish Them

What is the secret behind the success of the Business Format Franchise? a. Low Cost b. Good Name c. Sales Revenue d. Franchise Prototype

You should build a business that works not because of you but ____________? a. Without you b. For you c. Above you d. In you

Your ________ Plan shapes your life, and the business that is to serve it? Select one: a. Cost b. Life c. Business d. Career

A valuable method of preventing online fraud is to ________. Select one: a. ask customers for their card verification value b. not accept credit cards c. run background checks on customers d. All of these

If you are causing (or missing) quality problems now, the resulting defects won't slow you down later. Select one: True False

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Startups are different - too much budget is as harmful as too little. Select one: True False

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"Verification" refers to ________. a. possibly asking questions such as "will it work?" and "is it really a better solution?" b. All of these c. possibly conducting experiments, running simulations, and test marketing a product or service d. validating the idea as accurate and useful

"__________ is the signature of a bold, imaginative hand"? a. Hard Work b. Magic c. Discipline d. Innovation

At which stage of the creative process does a spontaneous breakthrough occur, allowing all of the previous stages to come together to produce the "Eureka factor" or the "light bulb goes on"? Select one: a. Verification b. Illumination c. Implementation d. Preparation

The "growth hypothesis" _______ how new customers will discover a product or service. a. measures b. tests c. surveys d. validates

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The Build-Measure-Learn feedback loop is at the core of the Lean Startup model. True False

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The Business Model Canvas consists of six elements. Select one: True False

The Business Model Canvas has ________ elements. Select one: a. 5 b. 3 c. 9 d. 6

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The Business Model Canvas is a dynamic framework to guide entrepreneurs through the process of developing, testing, and refining their business models. Select one: True False

The Lean Startup methodology reconceives a startup's efforts as experiments that _______ its strategy to see which parts are brilliant and which are crazy. Select one: a. test b. manage c. direct d. All of these are correct

The Lean Startup model offers a way to test an organization's hypotheses __________. a. thoroughly b. immediately c. All of these are correct. d. rigorously

The ________ Assumption states "if you understand the technical work of a business, you understand a business that does that technical work? a. Wrong b. Striking c. Fatal d. Dangerous

The ________ environment has an impact on the level of people's creativity. a. internal b. external c. physical d. sounds in the

The ________ the leverage suppliers of key raw materials or components have, the ________ attractive is the industry. Select one: a. less; less b. greater; less c. more; more d. greater; more

The ________ the leverage suppliers of key raw materials or components have, the ________ attractive is the industry. Select one: a. less; less b. greater; more c. greater; less d. more; more

The _________ hypothesis tests how new customers will discover a product or service. a. growth b. value

The _________ is defined by how man technicians he can supervise effectively or how many subordinate managers he can organize into a productive effort? a. Boss b. Manager c. Technician d. Executive

The _________ is the dreamer in us? Select one: a. Idea man b. Manager c. Entrepreneurial personality d. Technician

The __________ is that version of the product that enables a full turn of the Build-Measure-Learn loop with a minimum amount of effort and the least amount of development time. a. best b. minimum viable product (MVP) c. first d. last batch

The ability to apply creative solutions to problems and opportunities to enhance or to enrich people's lives is called ________. a. creative thinking b. entrepreneurship c. innovation d. creativity

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The challenge of entrepreneurs is to find ways to achieve the same amount of validated learning at lower cost or in a shorter time. Select one: True False

The early franchise businesses were called "___________" Franchises? a. Trade Name b. Repeat Name c. Cloning Business d. Starter Name

The focus of which of the following step in the creative process is to transform the idea into reality? Select one: a. Implementation b. Preparation c. Verification d. Illumination

The following are all examples of ______________: Vanity metrics Unclear hypothesis Fear Select one: a. delaying the decision to pivot b. strategic alternatives to planning c. entrepreneurial paralysis

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The goal of a minimum viable product is to begin the process of learning, not end it. True False

The goal of every startup experiment is to discover how to build a sustainable business around the entrepreneur's ______________. a. investors' demands b. vision c. desired level of profitability d. level of investment

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The ideal size of a focus group is 20-25. True False

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The innovation accounting framework makes it clear when the company is stuck and needs to change direction. Select one: True False

The point is not to find the average customer but to find ___________: the customers who feel the need for the product most acutely. a. mass market customers b. high volume customers c. early adopters d. late adopters

The premise behind ________ is that transforming an idea into an actual model will lead to improvements in its design. a. rapid prototyping b. brainstorming c. mind-mapping d. inventions

The primary purpose of the five forces matrix is to ________. Select one: a. provide a graphic b. assign values to each of the five elements c. assess the five forces as compared to a standard value d. list the five forces in rank order

The primary purpose of the five forces matrix is to ________. a. list the five forces in rank order b. provide a graphic c. assess the five forces as compared to a standard value d. assign values to each of the five elements

The process of determining whether an entrepreneur's idea is a viable foundation for creating a successful business is known as a ________. a. industry analysis b. feasibility analysis c. strategic analysis d. business plan

The profile of an entrepreneur includes ________. a. a desire for responsibility and moderate risk b. confidence in the ability to succeed and determination c. a high level of energy, a desire for immediate feedback and a future orientation d. All of these

The reason to build a new team to pursue an idea is that you believe you can accelerate through the Build-Measure-Learn feedback loop __________. a. less expensively b. faster than anyone else can c. with fewer resources d. ahead of schedule

The strongest of the five forces in most industries is ________. Select one: a. bargaining power of buyers b. threat of new entrants to the industry c. rivalry among companies competing in the industry d. threat of substitute products or services

The technique of ________ uses three columns that allow the entrepreneur to weigh both the advantages and the disadvantages of a particular decision and work to maximize the variables that support it while minimizing those that work against it. a. TRIZ b. brainstorming c. force-field analysis d. mind mapping

The true product of the business is the ________ itself? a. Inventory b. Name c. Business d. Store

Think of your company as a _________ instead of a partnership? Select one: a. Family Business b. Small Business c. Corporation d. E-Commerce

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Time out of cash is one of the four major elements included in a financial feasibility analysis. Select one: True False

To protect patent claims, an inventor should be able to verify and document the ________. a. research conducted to create the invention b. initial sales of the invention c. date on which the idea was first conceived d. fact that the invention was created in another country

Turn-Key Revolution started in what fast food restaurant? a. Wendy's b. Taco Bell c. Burger King d. MacDonald's

Upon completing the Build-Measure-Learn loop, startups confront the most difficult question any entrepreneur faces: a. whether to allocate additional resources b. whether to abandon the project c. to pivot or persevere d. All of these are correct.

Gathering competitive intelligence, such as "dumpster diving" in a competitors' trash, may raise questions regarding ________. Select one: a. ethical standards b. the competitive profile matrix c. the integrity of the data d. a cost benefit analysis

Many Web sites seek to create, develop, and facilitate a ________. Select one: a. community of customers with similar interests b. site that provides a variety of information that most anyone can find useful c. technology that is fast and complex d. site that appeals to a broad range of diverse visitors

With all pivots, we have to get back to the basics and start the ________________ over. Select one: a. planning b. innovation accounting cycle c. strategic analysis d. market study

Without a ____________ many companies get caught in the trap of being satisfied with a small profitable business when a pivot might lead to more significant growth. a. sound strategic strategy b. formal growth model c. strict measurement tools in place d. vision statement

Without a formal growth model, many companies get caught in the trap of being satisfied with a small profitable business when a ______ might lead to more significant growth. a. old product b. new plan c. pivot d. new product

Women in business still experience ________ as they attempt to break the "glass ceiling." Select one: a. opportunities b. success c. ease of navigation d. discrimination

Your ______________ is a very clear statement of what your business has to ultimately do for you to achieve your Primary Aim? Select one: a. Education b. Family c. Strategic Objective d. Health

________ is a graphical technique that encourages thinking on both sides of the brain, visually displays the various relationships among the ideas, and improves the ability to view a problem from many sides. a. Mind mapping b. Brainstorming c. Groupthink d. Prototyping

________ is necessary for building a competitive advantage and for business survival. Select one: a. A low-priced product b. A motivated owner c. One single idea d. Creativity

________ is the process of finding creative ways to exploit opportunities to launch and grow businesses with limited resources. Select one: a. Leveraging b. Undercapitalizing c. Prototyping d. Bootstrapping

___________ begins at the point in the life of your business when you decide to get some help? a. Infancy b. Adolescence c. Maturity d. Master stage

A business with a payables turnover ratio of 10.4 times a year would have an average payable period of about ________ days. Select one: a. 35 b. 30 c. 62 d. 3

A cash budget is only as accurate as the ________ forecast from which it is derived. Select one: a. sales b. income c. profit d. receivables

According to the American Collectors Association, if a business is writing off more than ________ percent of its sales as bad debts, it needs to tighten its credit and collection policies. Select one: a. 5 b. 25 c. 10 d. 3

An effective approach to successful collections includes ________. Select one: a. timely, well-communicated payment expectations with well-documented records b. setting up an automated collection system to generate "Past Due" notices that does not require personal intervention c. an abrupt, in-your-face style of communication once a payment is late d. waiting to invoice and communicate with the customer once a payment problem clearly exists

An important source of credit information that collects information on small businesses that other reporting services ignore is ________. Select one: a. National Association of Credit Management b. National Association of Small Business Owners c. Dun & Bradstreet d. TRW

Cost of goods sold is located on which financial statement? Select one: a. Income statement b. Balance sheet c. Statement of cash flows d. All of these

Entrepreneurs should make sure they do not fall victim to any of the e-commerce myths. Which of the following is not an e-commerce myth? Select one: a. Privacy and site security is an important issue on the Web. b. If I launch a site, customers will flock to it. c. Making money on the Web is easy. d. Setting up a business on the Web is easy and inexpensive.

For the question(s) below, consider the following competitive profile matrix: Which company has the strongest competitive position? Select one: a. Your company b. Impossible to tell from the information given. c. Competitor 2 d. Competitor 1

Many viral products do not charge customers directly but rely on indirect sources of revenue such as _________________. Select one: a. advertising b. new services c. referrals d. new products

Michelle Becker's target income in her business for the upcoming year is $78,500. The company's gross profit margin averages 32.6 percent of sales, and its total operating expenses run 24.7 percent of sales. To achieve her target income, sales of Michelle's company should be ________. Select one: a. $993,671 b. $317,814 c. $1,271,348 d. $148,773

Most companies that make Rule 506 offerings raise between ________ and ________ in capital. Select one: a. $1 million; $50 million b. $100 million; $200 million c. $100,000; $500,000 d. $200,000; $1 million

The Lean Startup works only if we are able to build an organization as adaptable and fast as ____________. Select one: a. resources can be acquired b. its competitors c. the challenges it faces

The average venture capital firm screens about ________ investment proposals each year and ultimately invests in ________ of them. Select one: a. 1,000; 1 b. 5,000; 13 c. 10,000; 12 d. 5,000; 80

The biggest advantage of working in small batches is that ___________________. Select one: a. quality problems can be identified much sooner b. it has lower human resource requirements c. the money required is not so great d. you can take advantage of economies of scale

The competitive test that a business plan must pass to attract financing from lenders and investors involves proving ________. Select one: a. that the company can gain a competitive advantage over its key competitors b. that a market for the company's product or service actually does exist and that the company can actually build it for the cost estimates included in the plan c. that the industry in which the business will compete is growing faster than the overall economy and has room for more competitors d. that the business venture will provide lenders and investors a high probability of repayment or an attractive rate of return

The cost to check a potential customer's credit at a reporting service starts at $________. Select one: a. 40 b. 5 c. 119 d. 499

A business should provide the owner with a reasonable rate of return based upon ________. Select one: a. the capital borrowed from the bank b. the time and money invested in the business c. industry averages d. an acceptable annual salary

A checking account that never has idle funds (because it draws funds from an interest-bearing master account to cover checks written) is called a ________ account. Select one: a. money market b. zero-balance c. sweep d. deficit

A method of raising capital that taps the power of social networking and allows entrepreneurs to post their elevator pitches and proposed investment terms on specialized Web sites and raise money from ordinary people who invest as little as $100 is called ________. Select one: a. bootstrapping b. crowd funding c. angel financing d. venture capital

A(n) ________ competitor offers the same or similar products or services only in a small number of areas, and their target customers seldom overlap yours. Select one: a. parallel b. indirect competitor c. divergent d. direct

A(n) ________ is when a company raises capital by selling shares of its stock to the general public for the first time. Select one: a. partnership b. initial public offering c. venture capital offering d. debt equity arrangement

A/An ________ is a private, for-profit organization that purchases equity positions in young businesses that will potentially produce returns of 300 to 500 percent over five to seven years. Select one: a. commercial bank b. venture capital company c. angel d. SB-1 filing

According to the American Collector's Association, only ________ percent of accounts more than 90 days delinquent will be paid voluntarily. Select one: a. 45 b. 5 c. 65 d. 20

Structure is a prerequisite - it does guarantee success. Select one: True False

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More than one engine of growth can operate in a business at a time. Select one: True False

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Small batches normally allow new versions of products to be released to customers on a monthly, quarterly, or yearly cycle. Select one: True False

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Which stage of the creative process requires one to develop a solid understanding of the problem or decision? a. Investigation b. Illumination c. Preparation d. Verification

Within five years, ________ percent of new businesses will fail. a. 21 b. 51 c. 45 d. 65

________ lateral thinking is somewhat unconventional and unstructured. a. Systematic b. Right-brained c. Logical d. Left-brained

________ percent of all U.S. businesses are family-owned and managed. Select one: a. Twenty-five b. Ninety c. Seventy d. Fifty

Of the 28 million businesses in the United States, more than ________ percent are considered small. a. 88 b. 99 c. 50 d. 75

The technician has just reached the limits of his ___________ zone? a. Profit b. Stress c. Rest d. Comfort

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Using focus groups is an example of primary research. True False

. "It's not your business you have to fear losing. It's something much bigger than that. It's _______? a. Your Husband b. Your Dog c. Your Self d. Your House

. "Your business and your ______ are two totally separate things"? a. Body b. Life c. Family d. Profits

. Entrepreneurs can increase their chances for success if they ________. a. know their business in depth and develop a solid business plan b. manage their financial resources and understand financial statements c. learn to manage people and keep in touch with how they react to stress and balance their health needs with the needs of the business d. All of these

. Factors that feed the economic boom behind entrepreneurship include ________. a. demographic and economic factors b. technology and cloud computing c. the shift to a service-based economy and international opportunities d. All of these

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. Startups need to conduct experiments that help determine what techniques will work in their unique circumstances. True False

. The Franchise model uses workers with the ________ level of skill? a. Moderate b. Most c. Highest d. Lowest

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. Using focus groups is an example of primary research. True False

. ________ is the number of months the business can survive at its current rate of negative cash flow. a. Life cycle b. Survival time c. Bleeding rate d. Time out of cash

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1. A head start is usually large enought to matter, and tyime spent in stealth mode - away from customers -is likely to provide a head start. True False

1. A startup is a human institution designed to create a new product or service under ____________________. a. the guidelines of the business plan b. None of these are correct c. conditions of extreme uncertainty. d. the least risk and highest rewards available

1. Entrepreneurs are characterized by ________. a. skill at organizing b. desire for immediate feedback c. high energy levels d. All of these

1. Entrepreneurship requires a ______________ to harness an entrepreneurial opportunity. Select one: a. outstanding marketing research plan b. sound business plan c. All of these are correct d. managerial discipline

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1. Most of the time customers don't know what they want in advance. True False

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1. Most tools from general management are designed to flourish in the harsh soil of extreme uncertainty in which startups thrive. True False

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1. New start-up organizations should be committed to making mistakes. True False

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1. Startup success can be engineered by following the right process, which means it can be learned, which means it can be taught. True False

1. Startups have a true north, a destination in mind: creating a thriving and world-changing business. This is called a startup's _____. a. marketing plan b. business plan c. management plan d. vision

1. The ___________ a startup builds are really experiments. Select one: a. organizational strategies b. vision plans c. management strategies d. products

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1. The amount of time a company can count on holding on to market leadership to exploit its earlier innovations is shrinking. True False

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1. The author Eric Ries explains "hard work and perserverance does lead to success. True False

1. The author adopted the view that their job was to find ________________ between their vision and what customers would accept. a. balance b. highest price c. lowest price d. synthesis

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1. The author felt he had committed the biggest waste of all - "building a product that our customers refused to use." True False

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1. The author felt he had committed the biggest waste of all - "building a product that our customers refused to use." True False

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1. The goal of a startup is to figure out the right thing to build - the thing customers want and will pay for - as quickly as possible. True False

1. The irony is that it is often easier to raise money or acquire other resources when you have _________________. a. tons of customers b. you have zero revenue, zero customers, and zero traction c. just a business plan d. when you don't need it

1. This approach leases to chaos more often than it does success. a. a correct amount of funding b. sound market research c. a sound business plan d. a "just do it" attitude

1. This is true startup productivity: systematically figuring out _______________. Select one: a. the right price b. the lowest price c. the highest price d. the right things to build

At MacDonald's the hamburgers were removed from the hot trays in no more than_______ minutes? a. 22 b. 20 c. 10 d. 15

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1. We must be willing to set aside our traditional professional standards to start the process of validated learning as soon as possible. True False

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1. We must learn the truth about which elements of our strategy are working to realize our vision and which are just crazy. True False

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1. With proper managerial structure innovation is a top-down, centralized, and predictable thing that can be managed. True False

1. ________ thinking is the ability to see similarities and ________ thinking is the ability to see differences among various data and events. a. Divergent; convergent b. Convergent; divergent c. Convergent; transformational d. None of these

1. ______________ prevents many startups from getting the feedback they need. a. Money b. Security c. Competition d. Delay

1. __________________ is the process of demonstrating empirically that a team has discovered valuable truths about a startup's present and future business prospects. a. Strategic Analysis b. Validated learning c. All of these are correct. d. Management

10. Entrepreneurial couples who work together as co-owners of their business are referred to as ________. a. corporate cast-offs b. copreneurs c. corporate dropouts d. dual entrepreneurs

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10. There are formulas available to decide exactly how complex you want to make your mvp. True False

12. ________ is a process in which a small group of people interacts to produce a large quantity of imaginative ideas. a. Brainstorming b. Groupthink c. Mind-mapping d. Prototyping Feedback

13. The ability to develop new ideas and to discover new ways of looking at problems and opportunities is called ________. a. creativity b. entrepreneurship c. creative thinking d. innovation

16. Which of the following is a benefit of entrepreneurship? a. The opportunity to gain control over your own destiny. b. The opportunity to reach your full potential. c. The opportunity to do what you enjoy. d. All of these

17. Research shows that the top-performing ________ percent of small companies create 67 percent of the net new jobs in the economy. Select one: a. 80 b. 5 c. 90 d. 10

2. The demographic attributes of successful entrepreneurs are ________. a. are key predictors that determine how long the business will survive b. limited to specific ages, genders, and ethnic backgrounds c. highly diverse relating to age, gender, and ethnicity d. uncertain and have not been fully studied or analyzed

26. The nation's small businesses ________. a. employ more than 49 percent of the nation's private sector workforce b. create more jobs than do big businesses c. account for 47 percent of business sales d. All of these

3. The young, job-creating small companies are known as ________. Select one: a. "aggressive" b. "antelopes" c. "assertive" d. "gazelles"

4. Which of the following statements concerning small businesses and international markets is false? a. Because exporting is so complex and requires a company to have so many international experts on staff, exporting is not feasible for small businesses. b. Although the U.S. is an attractive market, approximately 95 percent of the world's population lives outside its borders. c. Although terrorism and global recession have slowed the growth of international trade somewhat, global opportunities for small businesses have a long-term positive outlook. d. Small companies comprise 97 percent of all businesses engaged in exporting, yet they account for only 30 percent of the nation's export sales.

44. All of the following are characteristics of the typical entrepreneur except ________. a. desire for immediate feedback b. value of money over achievement c. a future orientation d. confidence in his/her ability to succeed

5. The primary cause of small business failures is ________. a. the lack of capital b. management mistakes c. improper inventory control d. poor location

6. Entrepreneurs tend to be overly ________ and commonly misjudge the ________ requirements of going into business. a. optimistic; professional b. optimistic; personal c. optimistic; financial d. pessimistic; financial

7. Which of the following technological forces is driving the entrepreneurial trend in our nation? Select one: a. Cloud computing. b. Mobile marketing. c. The Internet. d. All of these

8. Which of the following is a characteristic of copreneurs? a. Mutual respect b. Complementary business skills c. A clear division of roles and authority d. All of these

9. Which of the following is NOT one of the forces driving the entrepreneurial trend in our country? a. International opportunities. b. E-commerce and the World Wide Web. c. Shift away from a service economy. d. Independent lifestyle.

A ________ is an exclusive right that protects the creators of original works such as literary, dramatic, musical, and artistic works. a. copyright b. service mark c. trademark d. patent

A __________ business knows how it got to be where it is, and what it must do to get where it wants to go? a. Infant b. Mature c. Teenage d. Starter

A ___________ is a set of things, actions, ideas, and information that interact with each other, and in so doing, alter other systems? Select one: a. Robot b. Plan c. System d. Assembly Line

A ________________ helps entrepreneurs start the process of learning as quickly as possible. a. sound business plan b. All of these are correct. c. strategic plan d. minimum viable product (answer not marked)

A ________________ model is one that fulfills the perceived needs of a specific segment of customers in an innovative way? a. Entrepreneurial b. Boss c. Business d. Management

A(n) ________ trial involves sending researchers into customers' homes to observe them as they use the company's product or service. Select one: a. in-home b. focus group c. prototype d. windshield

According to Porter's 5-forces model, a substitute for Coca-Cola, the carbonated cola drink, would be ________. Select one: a. bottled water b. Dr. Pepper c. Pepsi d. Mountain Dew

According to the Small Business Administration more than ___________ such business close every year? a. 1,000,000 b. 900,000 c. 750,000 d. 600,000

According to the U.S. Small Business Administration, a common delineation of a small business is one that employs fewer than ________ people. Select one: a. 100 b. 500 c. 50 d. 250

After Infancy most _______ lock the door? a. Technicians b. Employees c. Bosses d. Managers

An effective tool used to help assess ideas is the ________. a. idea toolkit b. idea metric c. idea dashboard d. idea sketch pad

An effective tool used to help assess ideas is the ________. a. idea toolkit b. idea metric c. idea sketch pad d. idea dashboard

Any distinctive word, phrase, symbol, name, or logo a firm uses to distinguish itself or its products is called a ________. a. service mark b. patent c. copyright d. trademark

Approximately ________ percent of corporate managers who are "cast off" as companies downsize become entrepreneurs. a. 20 b. 45 c. 5 d. 15

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Bootstrapping is the process of finding creative ways to exploit opportunities to launch and grow businesses with the limited resources available for most start-up ventures. True False

Capital required to compete in an industry determines ________ a. threat of substitutes b. threat of new entrants c. bargaining power of suppliers d. bargaining power of buyers

Entrepreneurs can stimulate their own creativity and encourage it among workers by ________. a. expecting and tolerating failure b. avoiding problems c. not taking chances d. limiting rewards

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Companies that cannot bring themselves to pivot to a new direction on the basis of feedback from the marketplace can get stuck in the land of the living dead, neither growing enough nor dying, consuming resources and commitment from employees and other stakeholders but not moving ahead. Select one: True False

Conducting ________ research involves collecting data firsthand and analyzing it while ________ research involves gathering data that has already been complied and is available. Select one: a. secondary; primary b. primary; secondary c. product; secondary d. primary; industry

Creativity often involves creating something from nothing. However, it is more likely to result in ________. a. elaborating on the present b. putting old things together in new ways c. taking something away to create something simpler or better d. All of these

Entrepreneurs typically possess ________. a. a high level of commitment, have a tolerance for ambiguity, are flexible and tenacious b. specialized technical abilities c. a set of unique skills that is usually accompanied by advanced degrees in several areas d. the ability to easily access capital

Entrepreneurs who repeatedly start businesses and grow to a sustainable size before striking out again are known as ________ entrepreneurs. Select one: a. opportunistic b. classic c. serial d. persistent

Entrepreneurs who start businesses because they cannot find work any other way are ________. a. necessity entrepreneurs b. corporate cast-offs c. serial entrepreneurs d. opportunity entrepreneurs

More women entering the workforce is an example of a ________ change. a. economic b. sociocultural c. demographic d. technological

During the incubation phase of the creative process, the entrepreneur might do all of the following except which of the following to let ideas "marinate" in his mind? a. Relax and play regularly. b. Don't allow one's self to daydream. c. Do something totally unrelated for a while. d. Work on the problem or opportunity in a different environment.

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Early adopters use their imagination to fill in what a product is missing. True False

Economies of scale relate to which of Porter's 5-forces? Select one: a. Bargaining power of buyers b. Threat of substitutes c. Threat of new entrants d. Bargaining power of suppliers

Effective brainstorming involves all of the following except ________. a. an open, uninhibited environment b. a small group of people c. an effective method to evaluate ideas d. very little structure

Entrepreneurship is a constant process that relies on ________. a. creativity, innovation, and application in the marketplace b. intellectual property rights c. creativity, innovation, and profit d. the ability to win over the consumer

Every game has to have _________ for people to be good at it? Select one: a. Rules b. Trophies c. Cheer leaders d. Bleachers

Everyone who goes into business is actually ________ people in one? a. Two b. Five c. Four d. Three

Most companies organize around personalities rather than around ________? Select one: a. Strategies b. Needs c. Functions d. Goals

Getting traffic counts at local competitor outlets is an example of ________ research. a. windshield b. focus group c. prototype d. in-home

Hiring a diverse workforce ________. a. helps in cultivating organizational creativity b. allows for different ideas and varying methods of problem solving c. brings in people from different backgrounds, with different cultural experiences, hobbies, and interests d. All of these

Ideally, a focus group should have ________ members. Select one: a. 8-12 b. 5-7 c. 2-3 d. 16-20

If the numbers for early experiments don't look promising, there is clearly a problem with the _________. a. strategy b. product c. method of measuring d. numbers

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If we do not know who the customer is, we do not know what quality is. True False

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If we do not know who the customer is, we do not know what quality is. True False

false

If you are building the wrong thing, optimizing the product or its marketing will yield significant results. Select one: True False

In a survey of members of Generation Z, ________ percent said they would rather save money than spend it. Select one: a. 57 b. 31 c. 25 d. 44

In addition to the opportunity to create their own destiny and enjoy what they do, entrepreneurs also benefit from the ability to ________. a. earn tremendous wealth without risk and uncertainty b. create wealth without providing true value c. make a difference in an area important to them and be recognized for those efforts d. exploit the opportunities that the free enterprise system offers

true

In the Lean Startup model, an experiment is more than just a theoretical inquiry; it is also a first product. True False

Industry databases are a good source of ________ research. Select one: a. secondary b. primary c. tertiary d. windshield

Industry databases are a good source of ________ research. a. tertiary b. primary c. windshield d. secondary

International opportunities are ________. a. risky and do not merit serious consideration by the entrepreneur b. highly limited for entrepreneurs c. now within the reach of entrepreneurial businesses and may present significant opportunities d. clearly out of reach for entrepreneurial businesses

John has come to you for advice on starting a business venture. He wants to know the best way to gain the experience he'll need. You suggest that he ________. a. just jump in and learn as he goes b. determine his weaknesses and return to school for a term or two c. read a small business book d. seek knowledge and experience in the field he wishes to enter

Low capital requirements, cost advantages that are not related to company size, and the lack of brand loyalty are considerations regarding the ________. Select one: a. bargaining power of buyers b. threat of new entrants to the industry c. threat of substitute products d. rivalry among companies competing in the industry

Many new businesses require that an entrepreneur have a certain set of knowledge, experiences, and skills to have any chance of success. This is called entrepreneurial ________. a. chutzpah b. readiness c. trait d. grit

Melinda and John Perez, both corporate attorneys in New York City, have grown tired of their lengthy daily commute, the stress of their jobs, and the overbearing policies of their employers. They have decided to leave their six-figure jobs and together open a guide service in Wyoming. Melinda and John are examples of ________. a. corporate castoffs and corporate dropouts b. corporate dropouts and copreneurs c. corporate castoffs and copreneurs d. copreneurs and serial entrepreneurs

More than ________ percent of those holding patents win their infringement suits. Select one: a. 30 b. 66 c. 45 d. 15

Most startup companies can expect to need ________ capital than they anticipate. a. the same b. more c. less d. within 10% of the

Nearly ________ of entrepreneurs start their businesses between the ages of 20 and 44 and the number of Americans in that age range currently is ________ . a. one-fourth; 85 million b. one-half; 8.5 million c. three-fourths; 103 million d. two-thirds; 85,000

true

Once IMVU's efforts were aligned with what customers really wanted, their experiments were much more likely to change their behavior for the better. Select one: True False

Once you were stricken with an ___________ Seizure there was no relief? a. Business b. Muscle c. Entrepreneurial d. Brain

One form of primary research is ________. a. a focus group b. library research c. to review published articles d. internet research

Porter's five forces model assesses industry attractiveness by surveying these five factors ________. Select one: a. potential entrants, suppliers, buyers, substitutes, and rivalry among existing firms b. potential entrants, suppliers, raw materials, substitutes, and rivalry among existing firms c. potential entrants, suppliers, buyers, similar products, and rivalry among existing firms d. potential entrants, competitors, buyers, substitutes, and rivalry among existing firms

Potential drawbacks of entrepreneurship may include ________. Select one: a. uncertainty of income, risk, long hours, and the immediate accumulation of wealth b. uncertainty of income, risk, easy hours, and frequent vacations c. certainty of income, risk, long hours, and high stress d. uncertainty of income, risk, long hours, and high stress

false

Primary research is information that has already been complied and is available for use, often at very reasonable costs or sometimes at no cost to the entrepreneur. True False

Printed newspapers have seen their readership rates decline as new generations of potential readers turn to their iPads and smartphones for sources of news. This is an example of ________. a. bargaining power of suppliers b. threat of substitutes c. bargaining power of buyers d. rivalry among existing firms

Research into the operation of the human brain shows that each hemisphere of the brain ________. a. controls similar functions b. processes information differently c. develops symmetrically d. does not dominate the other hemisphere

Small companies are incubators of new sales ideas, products and services and create ________ times more patents per employee than large companies. Select one: a. 3 b. 10 c. 16 d. 5

Small companies that have expanded successfully into foreign markets tend to rely on all but which of the following strategies? a. Utilize government resources designed to help small companies establish an international presence. b. Research foreign markets thoroughly. c. Focus on many countries initially. d. Forge alliances with local partners.

Small companies that operate globally from their inception are referred to as ________. a. intrapreneurial ventures b. international companies c. micromultinationals d. global companies

false

Strategic planning takes months to complete and experiments should not begin until it is completed. True False

Switching costs, the number of buyers, and if the items represent a relatively small portion of the cost of finished products are key considerations regarding the ________. Select one: a. bargaining power of suppliers b. rivalry among companies competing in the industry c. threat of new entrants to the industry d. bargaining power of buyers

Switching costs, the number of buyers, and if the items represent a relatively small portion of the cost of finished products are key considerations regarding the ________. Select one: a. rivalry among companies competing in the industry b. threat of new entrants to the industry c. bargaining power of suppliers d. bargaining power of buyers

To which governmental office must applications for patents be submitted? a. The U.S. Patent and Trademark Office b. The Securities and Exchange Commission c. The individual State Offices of Patent Development d. The Federal Trade Commission

What are the natural dispositions of every business? a. Grow or Contract b. Fight or Fly c. Hide or Run d. Eat or Sleep

When a company _______, it starts the process all over again, reestablishing a new baseline and then tuning the engine from there. Select one: a. pivot b. persevere c. Both of these are correct

When bargaining power of buyers is ________, the industry is ________ attractive. Select one: a. high; more b. moderate; less c. low; more d. low; less

When developing a Market Strategy it is important to forget about what you want and consider what the _______ wants? Select one: a. Technicians b. Owner c. Customer d. Business

When developing creative solutions to modern problems, entrepreneurs must ________. a. go beyond merely using whatever has worked in the past b. limit the creative process to only profitable ventures c. remember what has worked in the past d. pay attention to limiting factors

Where are all assumptions put to the test? a. Basic Model b. Calibration Station c. Head Quarters d. Franchise Prototype

Which hemisphere of the brain is responsible for language, logic, and symbols? a. Right hemisphere b. Left hemisphere c. Lateral hemisphere d. Intuitive hemisphere

Which hemisphere of the brain is responsible for the body's emotional, intuitive, and spatial functions? a. Left hemisphere b. Logical hemisphere c. Vertical hemisphere d. Right hemisphere

Which hemisphere of the brain processes information in a step-by-step fashion? a. Intuitive hemisphere b. Right hemisphere c. Lateral hemisphere d. Left hemisphere

Which of the following is a danger of using a niche strategy? a. Niches change. b. Niches can go away. c. Entering a niche requires adaptability in your initial plan. d. All of these

Which of the following is not a barrier to entry? Select one: a. Specialized knowledge b. Large number of buyers c. Capital requirements d. Access to distribution channels

Which of the following is not a phase of business growth? a. Adolescence b. Infancy c. Maturity d. Death

Which of the following is not an activity in foundation of the Business Development Process? a. Quantification b. Innovation c. Cost Cutting d. Orchestration

Which of the following is not an enhancement to individual creativity? a. Listening to other people. b. Working without breaks until the project is complete or the problem is solved. c. Keeping a toy box in your office. d. Recognizing the creative power of mistakes.

Which of the following is not an example of a rule for your game from chapter 16? Select one: a. The game needs to be fun form time to time. b. The game has to make sense. c. Defense wins Championships. d. If you can't think of a good game, steal one.

Which of the following is not one of the Business Development Steps? a. Fire everyone b. Your Strategic Strategy c. Your Primary Aim d. Your People Strategy

Which personality did Sarah say that she did not have? Select one: a. Entrepreneurial b. Teacher c. Manager d. Technician

Who was the author of the book "Man's Search for Himself" that Michael Gerber read three times? Select one: a. Shakespeare b. Edward Norton c. Edgar Allen Poe d. Rollo May

Why did Elizabeth quit working for Sarah? a. Her mom died b. She got sick c. Sarah fired her d. She got a new job

Why did Sarah start selling pies? a. She was fired from her old job b. Her best friend said she should because she was so good at making pies c. Someone gave her a free building d. Her husband offered to finance her company

Once a credit account becomes past due, a small business owner should ________. Select one: a. send a "second notice" letter requesting immediate payment b. turn the account over to a collection agency the day it becomes past due c. call the "deadbeat" in the middle of the night and make harassing and threatening remarks until he pays d. wait patiently; the customer will most likely pay the bill eventually

One of the most valuable attributes of the Web is the ability to ________. Select one: a. provide companies with instantaneous customer feedback b. encourage the use of credit cards as a means of paying for the online transaction c. eliminate advertising expenses and the amount of printed materials needed to facilitate promotional efforts d. enable the site to create an appearance that the organization is able to meet customer needs that, in fact, are not possible based on its actual resources

One of the most valuable benefits of giving customers a reason to return to your site is that it can be an effective tool to ________. Select one: a. build customer loyalty b. deter competitive action c. establish online habits d. increase traffic

Only about ________ percent of a typical business' inventory turns over quickly. Select one: a. 20 b. 40 c. 80 d. 60

Patel Industries recently filled an order from one of its customers, Oxmoor Gardens, a small garden supply store. Oxmoor's owner recently received an invoice from Patel for $1,278.64 with selling terms of "2/10, Net 30." Therefore, ________. Select one: a. the selling terms are offering Oxmoor a 2 percent discount if the bill is paid within 10 days; otherwise the full amount of the invoice is due in 30 days b. the selling terms indicate that Oxmoor must pay 2 percent of the invoice by the 10th day of the month with the balance due in 30 days c. the selling terms indicate that Oxmoor has not yet qualified for a quantity discount and must pay the full amount of the invoice within 30 days d. the selling terms indicate that the full amount of the invoice is due within 30 days and Oxmoor will be subject to a 2 percent finance charge for every 10 days that the bill is past due

Question text You are to prepare a projected income statement for a proposed business venture. Your desired income is $28,000 and you have the following published statistics: This information indicates the net sales on your pro forma "P & L" (income statement) would be: Select one: a. $466,667. b. $491,228. c. $500,000. d. None of these

Question text ________ are the broad, long-range attributes the small business seeks to accomplish; ________ are the more specific targets for performance. Select one: a. Goals; objectives b. Goals; strategies c. Strategies; goals d. Objectives; goals

Refer to the following information to answer the question(s) regarding Anita Lupino's toy and game shop: Anita Lupino is planning to open her own toy and game shop. She has conducted a great deal of research at the local library, contacted the industry trade association, and has set up a meeting with a consultant at the SBDC next week. Before she goes to the SBDC, she wants to sketch out an estimated income statement. She reviews the following data from RMA's Annual Statement Studies: If Anita's research suggests that she can expect net sales of $475,000, what net profit could she expect? Select one: a. $46,550 b. $202,825 c. $156,275 d. $69,350

Regarding Gunther's Emporium, refer to the following to answer the question(s) below: Gunther's Emporium expects net sales of $2,396,919 for the upcoming year, with variable expenses totaling $1,813,443 and fixed expenses of $412,190. If Gunther's net profit target for the year is $190,000, what sales level must he achieve? Select one: a. $2,473,796 b. $1,876,324 c. $5,667,009 d. None of these

Rule ________ of the Regulation D exemptions is the most popular. Select one: a. 504 b. 426 c. 314 d. 202

Small businesses selling on credit find that ________. Select one: a. it is expensive, requires a great deal of effort, and it is risky b. many can get by without selling on credit because their business customers do not expect to use credit c. it is essentially borrowing money from the customer d. it is relatively inexpensive and it is simple

Strategies for successful e-commerce efforts should include all of the following except ________. Select one: a. adding value to recipients by sending spam e-mail b. attracting visitors by giving away "freebies" c. developing a community of customers d. focusing on a niche market

Strategies for successful e-commerce efforts should include all of the following except ________. Select one: a. adding value to recipients by sending spam e-mail b. developing a community of customers c. focusing on a niche market d. attracting visitors by giving away "freebies"

The "big three" of cash management include ________. Select one: a. accounts receivable, accounts payable, and inventory b. accounts receivable, prices, and expenses c. accounts receivable, overhead, and inventory d. accounts payable, accounts receivable, and taxes

The Global Entrepreneurship Monitor reports that the average amount of capital that entrepreneurs use to start small businesses is about ________. Select one: a. $15,000 b. $100,000 c. $50,000 d. $25,000

The ________ is also known as the "elevator pitch" and is written last, but is included as the first part of the business plan and should summarize all the relevant points in about two pages. Select one: a. executive summary b. business profile c. business history d. loan proposal

The ________ ratio tells how many times the company's earnings cover the interest payments on the debt it is carrying. Select one: a. times-interest-earned b. net sales-to-working capital c. debt-to-net worth d. debt

The __________________ is defined as the fraction of customers in any period who fail to remain engaged with the company's product. Select one: a. churn rate b. effectiveness c. efficency d. All of these are correct.

The author finds that when switching to validated learning, it feels ________ before it feels ___________. Select one: a. worse, better b. better, worse

The average conversion rate for e-commerce sites is just ________ percent. Select one: a. 2.55 b. 1.1 c. 9.35 d. 6.67

The critical first question for any lean transformation is: Select one: a. which activities create value and which are a form of waste? b. how will the research be done for the development of the marketing plan? c. who will be responsible for the planning & implementation of the strategic plan? d. All of these are correct.

The intentional and targeted promotion of a Web site is ________. Select one: a. critical to online success b. a luxury that most small businesses cannot afford c. contrary to current Web trends d. optional because once you are on the Web, you will get traffic and sales

The investment shoud be _________ when the symptom is minor and ______ when the symptom is more painful. Select one: a. smaller and larger b. the same for both c. larger and smaller

The investment should be _________ when the symptom is minor and ______ when the symptom is more painful. Select one: a. smaller and larger b. larger and smaller c. the same for both

The most common method used by commercial finance companies to provide credit to small businesses is ________. Select one: a. asset based b. profitability based c. insurance based d. unsecured lines of credit or "character loans"

The one envelop at a time approach is called "single-piece flow" in lean manufacturing. It works because of the surprising power of _______________. Select one: a. small batches b. strategic planning c. focusing on a narrow niche d. All of these are correct.

The pages on which visitors land after they click on a sponsored link in a search engine, e-mail ad, or online ad are referred to as ________ page(s). Select one: a. landing b. the home c. the transition d. the search

The reality test that a business plan must pass to attract financing from lenders and investors involves proving ________. Select one: a. that a market for the company's product or service actually does exist and that the company can actually build it for the cost estimates included in the plan b. that the company can gain a competitive advantage over its key competitors c. that the business venture will provide lenders and investors a high probability of repayment or an attractive rate of return d. that the industry in which the business will compete is growing faster than the overall economy and has room for more competitors

Venture capitalists look for ________ as the most important ingredient in the success of any business. Select one: a. competent management b. innovation c. a growth industry d. a competitive edge

When creating a Web site, the goal is to create a design ________. Select one: a. in which customers "see themselves" when they visit b. that is flashy c. in which customers cannot relate d. that is inclusive of everyone in most every situation

When looking for an angel, the key is ________. Select one: a. networking b. looking across industries c. using computer matches d. waiting until you need the money

When looking for an angel, the key is ________. Select one: a. networking b. using computer matches c. waiting until you need the money d. looking across industries

Which of the following is not a characteristic of a well-written objective? Select one: a. General b. Measurable c. Timely d. Realistic, yet challenging

Which of the following is true about the preparation of a business plan? Select one: a. The elements of the plan may be standard, but the content should reflect the unique aspects of the business and the excitement of the entrepreneur. b. The format should follow a "cookie-cutter" approach to ensure uniformity and consistency with others and to promote ease of understanding. c. The entrepreneur should avoid seeking the advice of professionals, such as accountants, business professors, and attorneys. d. The plan should cover every standard element in great detail and be at least 100 pages long to prove to potential lenders and investors that the entrepreneur has studied the business and the market opportunity.

Which of the following was not identified as a way for the typical small business to establish a competitive advantage? Select one: a. Lowering prices b. Doing whatever the company does for its customers better than its competitors c. Improving customer service d. Providing higher quality goods or services

________ is/are a method of financing frequently used by retailers of "big ticket items" such as autos. Select one: a. Floor planning b. Installment loans c. Trade credit d. Discounted installment contracts

________ ratios help a business owner evaluate the company's performance and indicate how effectively the business employs its resources. Select one: a. Operating b. Profitability c. Liquidity d. Leverage

________ typically lead(s) sales; ________ typically lag(s) sales. Select one: a. Purchases; collections b. Receipts; production c. Production; receivables d. Collections; purchases

________________ are designed to give startups a relatively small set of metrics on which to focus their energies. Select one: a. Engines of growth b. The number of visitors to an organization's website c. Paid promotion d. Search engine traffic

Although e-commerce can lower many costs of doing business, it still requires ________. Select one: a. a professional Web designer's input b. a basic infrastructure in the distribution channel to process orders, maintain inventory, fill orders, and handle customer service c. a brick-and-mortar store presence d. None of these

Approximately ________ percent of all venture capital invested comes from corporations. Select one: a. 2 b. 17 c. 8 d. 24

Commercial banks provide ________ of loans to small business. Select one: a. about 50 percent b. the greatest number and variety c. more than 89 percent d. very few

Financial analysts suggest that a small business should maintain a current ratio of at least ________. Select one: a. 1:1 b. 2:1 c. 3:1 d. 4:1

For the question(s) below, consider the following competitive profile matrix: Which key success factor does the entrepreneur who built this table believe is most important? Select one: a. Convenience b. Quality c. Location d. Service and on-time delivery

Ideally, a company reaches a point where increases in operating efficiency mean that expenses as a percentage of sales revenue flatten or even decline. This is referred to as ________. Select one: a. net profit to assets ratio b. operating leverage c. net profit to equity d. profitability ratio

In asset-based borrowing, the ________ rate is the percentage of an asset's value that a lender will lend. Select one: a. margin b. advance c. prime d. discounted

It is estimated that approximately ________ thousand companies, most of them small, engage in barter exchanges every year. Select one: a. 500 b. 400 c. 50 d. 100

More companies fail for the lack of ________ than for the lack of ________. Select one: a. vision; profit b. cash; profit c. profit; cash d. net revenue; gross revenue

On a projected income statement, a business owner's target income is ________. Select one: a. the income at which the company's total revenues and its total expenses are equal b. the sum of a reasonable salary for the time spent running the business and a normal return on the amount invested in it c. the income that will produce a 10 percent return on the owner's financial investment in the business d. the income that the owner could earn working for someone else

One of the most valuable attributes of the Web is the ability to ________. Select one: a. eliminate advertising expenses and the amount of printed materials needed to facilitate promotional efforts b. provide companies with instantaneous customer feedback c. enable the site to create an appearance that the organization is able to meet customer needs that, in fact, are not possible based on its actual resources d. encourage the use of credit cards as a means of paying for the online transaction

Question text ________ ratios indicate how efficiently the small firm is being managed. Select one: a. Liquidity b. Profitability c. Leverage d. Operating

Refer to the following break-even chart to answer the question(s) below: Line T is the ________ line, while line S is the ________ line. Select one: a. total revenue; total expense b. total expense; total revenue c. variable cost; fixed cost d. fixed cost; variable cost

Refer to the following information to answer the question(s) regarding Port Royal: Port Royal's debt-to-net worth ratio is ________. Select one: a. 0.08:1 b. 0.57:1 c. 0.36:1 d. 1.57:1

The ________ ratio measures the percentage of total assets financed by a small company's creditors compared to its owners. Select one: a. total asset turnover b. debt c. net sales to total assets d. times-interest-earned

The critical first question for any lean transformation is: Select one: a. who will be responsible for the planning & implementation of the strategic plan? b. which activities create value and which are a form of waste? c. how will the research be done for the development of the marketing plan? d. All of these are correct

The document outlining the details of the agreement between the entrepreneur and the stock underwriter is called ________. Select one: a. Regulation D b. the letter of intent c. the registration statement d. a "blue sky" agreement

The formal underwriting agreement between the company and the underwriter is signed ________. Select one: a. at the time of the letter of intent b. on the last day before the registration statement becomes effective c. during the road show d. when the statement of registration is filed

The imperative for new startups to innovate is ______________. Select one: a. required b. unrelenting c. important

The more specific the symptoms are, the _________ it will be for everyone to recognize when it's time to schedual a Five Whys meeting. Select one: a. longer b. easier c. harder

The most common type of commercial bank loan granted to small businesses is ________. Select one: a. floor planning b. the short-term loan c. the unsecured term loan d. the line of credit agreement

The primary advantage of equity capital is ________. Select one: a. its lower interest rate b. that it does not have to be repaid like a loan does c. that it does not appear on a company's balance sheet d. that it is readily available to a large number of entrepreneurs from a variety of lenders

The second essential purpose for creating a business plan is ________. Select one: a. to guide the operation of the company by charting its future course and devising a strategy for following it b. to attract lenders and investors c. to file with the SEC before a public stock offering d. to attract potential managers and employees to run the new venture

Typically, the entire process of going public takes ________, but it can take much longer if the issuing company is not properly prepared for the process. Select one: a. one year b. 120 to 180 days c. 30 days d. 6 months

When a company is forced into liquidation, owners are most likely to incur a loss when selling ________. Select one: a. marketable securities b. inventory c. accounts receivable d. real estate

When creating a Web site, the goal is to create a design ________. Select one: a. that is flashy b. in which customers "see themselves" when they visit c. in which customers cannot relate d. that is inclusive of everyone in most every situation

Which of the following is not a liquidity ratio? Select one: a. Current ratio b. Total asset turnover ratio c. Quick ratio d. None of these

Which of the following items would not be listed as a current asset in a company's financial reports? Select one: a. Inventory b. Fixtures c. Cash d. Accounts receivable

Which of the following measures a company's liquidity and its ability to pay its bills and other financial obligations on time? Select one: a. Cash budget b. Cash flow c. Cash management d. All of these

Your ________ competitors offer the same products and services, and customers often compare prices, features, and deals from these competitors as they shop. Select one: a. significant b. direct c. indirect d. All of these

A ________ is an agreement with a bank that allows a small business to borrow up to a predetermined specified amount during the year without making an application each time. Select one: a. term loan b. floor plan c. line of credit d. factor

A business that turns over its receivables 5.9 times a year would have an average collection period of about ________. Select one: a. 2/10, net 30 b. 71 days c. 62 days d. 30 days

A collection agency typically takes ________ percent of the amounts they collect on past due accounts. Select one: a. 10 to 20 b. 30 to 50 c. 25 to 30 d. 5 to 10

A company that pays a search engine for the right to submit either selected pages or the entire content of the Web site is referred to as ________. Select one: a. web analytics b. Really Simple Syndication (RSS) c. paid or sponsored listings d. click fraud

________ small businesses take the time to conduct a credit check. Select one: a. All b. Most c. Few d. None of these

A high debt ratio ________. Select one: a. represents a lower risk to potential lenders and creditors b. decreases the chances that creditors will lose money if the business is liquidated c. means that creditors provide a large percentage of the company's total financing d. gives a small business more borrowing capacity

A method of raising capital that taps the power of social networking and allows entrepreneurs to post their elevator pitches and proposed investment terms on specialized Web sites and raise money from ordinary people who invest as little as $100 is called ________. Select one: a. bootstrapping b. angel financing c. crowd funding d. venture capital

A situation that occurs when a company pays for clicks that are generated by someone with no interest in or intent to purchase its products or services is called ________. Select one: a. unpaid inclusion b. paid inclusion c. click fraud d. an unnatural listing

A successful Web site should include all of the following characteristics except ________. Select one: a. updated and timely information b. readable font sizes c. continuous automated music that cannot be cut off d. a FAQ section

Approximately ________ percent of all venture capital invested comes from corporations. Select one: a. 24 b. 2 c. 17 d. 8

Asset-based borrowing permits small businesses ________. Select one: a. access to a source of funds ideally suited for long-term financing needs b. to borrow up to 100 percent of the value of their inventory or their accounts receivable for the money they need for long-term goals c. to use normally unproductive assets such as accounts receivable and inventory d. to obtain loans more easily but with less borrowing power than using unsecured lines of credit

Businesses selling less well-known brands should ________. Select one: a. reduce prices b. offer freebies c. use customer testimonials and endorsements d. All of these

Customers will typically welcome well-constructed permission e-mail that directs them to company sites for information or special deals, unlike unsolicited and universally despised e-mail known as ________. Select one: a. clipboards b. voice mail c. spam d. electronic flyers

Entrepreneurs basically "borrow from themselves" by pledging their ________ as collateral for the loans they receive in a ________. Select one: a. business assets; home equity loan b. business; commercial loan c. home; home equity loan d. big ticket items; floor loan

Experts estimate that nearly ________ percent of the world's online population has used the Internet to make a purchase. Select one: a. 96 b. 66 c. 84 d. 46

For the question(s) below, consider the following competitive profile matrix: Which of the following statements is true? Select one: a. The most important of the key success factors is location. b. Overall, Competitor 2 is the strongest of these three companies. c. Your company's most vulnerable point against these two competitors is in the area of on-time delivery. d. Your company's most serious weakness is its poor quality.

Gathering competitive intelligence, such as "dumpster diving" in a competitors' trash, may raise questions regarding ________. Select one: a. the competitive profile matrix b. the integrity of the data c. ethical standards d. a cost benefit analysis

Lean Management requires treating work as a system and then dealing with the batch size and cycle time of the ___________. Select one: a. different segments b. All of these are correct. c. whole process d. individual pieces

On an average each person who signs up will bring, on an average _______ than one other person with him or her. Select one: a. less b. no one c. more

On an average each person who signs up will bring, on an average _______ than one other person with him or her. Select one: a. no one b. less c. more

Once a small business has established a firm written credit policy and has clearly communicated it, the next step in building an effective credit policy is to ________. Select one: a. determine what percentage of sales are being written off as bad debt b. create a "tracking file" of events c. send invoices promptly d. create a simple credit application

Once an organization entered a period of rapid hiring, repeated Five Whys sessions revealed that problems caused by lack of ___________ were slowing down product development. Select one: a. focus b. resources c. training d. All the above are correct

One survey reports that ________ percent of shoppers have gone into a store as a result of an online encounter with a business. Select one: a. 72 b. 85 c. 91 d. 63

Only about ________ percent of a typical business' inventory turns over quickly. Select one: a. 80 b. 40 c. 20 d. 60

Question text ________ involves developing a game plan to guide a company as it strives to accomplish its mission, goals, and objectives to keep it on its desired course. Select one: a. Mission b. Competitive advantage c. Strategic management d. Market segmentation

Rather than trying to compete head to head with the dominant players on the Web with greater access to resources, entrepreneurs should consider focusing on ________. Select one: a. only brick-and-mortar retail channels b. building a Web site in-house c. serving a market niche d. serving a geographic niche

Refer to the following break-even chart to answer the question(s) below: The area labeled ________ is the "loss area." Select one: a. Z b. Y c. W d. X

Refer to the following break-even chart to answer the question(s) below: The area labeled ________ is the "profit area." Select one: a. X b. Y c. Z d. W

The "big three" of cash management include ________. Select one: a. accounts receivable, overhead, and inventory b. accounts receivable, prices, and expenses c. accounts receivable, accounts payable, and inventory d. accounts payable, accounts receivable, and taxes

The ________ ratio is a conservative measure of a firm's liquidity and shows the extent to which a firm's most liquid assets cover its current liabilities. Select one: a. turnover b. current c. quick d. net profit

The ________ serves as the "thesis statement" for the entire business plan and is the broadest expression of a company's purpose and defines the direction in which it will move. Select one: a. executive summary b. company history c. mission statement d. marketing strategy

The biggest benefit of a public stock offering is ________. Select one: a. the ability to use its stock to acquire other companies b. the ability to use its stock to attract and retain key managers and employees c. the capital infusion the company receives d. a listing on a stock exchange

The fact that the cash budget illustrates the flow of cash in a business helps the owner to ________. Select one: a. accelerate accounts payable payments b. track the effects of depreciation and bad debts c. get a seasonal line of credit rather than an annual line of credit d. slow accounts receivable payments

The first place an entrepreneur should look for startup capital is ________. Select one: a. the Small Business Administration b. a venture capitalist c. his own savings d. a bank

The first step in managing cash more effectively is ________. Select one: a. having an adequate cash reserve for emergency expenditures b. speeding up payment of accounts receivable c. understanding the company's cash flow cycle d. rapid payment of accounts payable

The goal of the SEC's Regulation D is ________. Select one: a. to discourage small companies from trying to "go public" b. to make it easier for the SEC to detect companies whose stock would be bad investments for consumers c. to minimize the expense and time required to raise equity capital for small businesses d. to make the standards for making a public stock offering more stringent

The higher the ________ ratio, the lower the degree of protection afforded creditors, and the closer creditors' interest approaches the owner's interest. Select one: a. asset turnover b. current c. debt-to-net worth d. quick

The key to entrepreneurial success over time is to build a ________ competitive advantage. Select one: a. defensible b. coherent c. sustainable d. random

The largest single source of external equity capital for small businesses is ________. Select one: a. the stock market (i.e., "going public") b. Small Business Administration loans c. angels d. venture capitalists

The most common problem is the online transactions that customers dispute, referred to as ________. Select one: a. recency b. acts of fraud c. chargebacks d. torts

The purchase funnel identifies ways to improve the online shopping experience. The process begins with ________ and ends with ________. Select one: a. promoting the URL; a purchase b. creating customer confidence; the payment process c. promoting an online presence; a streamlined checkout process d. making the site easy to find; a streamlined checkout process

The real benefit of barter for the entrepreneur is that ________. Select one: a. it saves the small business owner between $100,000 and $150,000 a year on the average b. it is essentially without cost to the business owner c. it is "paid" for at the wholesale cost of doing business, yet it is credited at the retail price d. it is considered a depreciable item for tax purposes rather than as income

To accelerate, Lean Startups need a process that provides a __________ feedback loop. Select one: a. periodic b. long-term c. natural d. continuous

Which of the following is an effective way to trim overhead? Select one: a. Eliminate zero-based budgeting. b. Hire more full-time employees; reduce the number of part-timers. c. Negotiate fixed loan payments to coincide with company cash flow. d. When able, buy instead of leasing

Which of the following is not true regarding the components of the income statement? Select one: a. Cost of goods sold represents the total cost, excluding shipping, of the merchandise sold during the accounting period. b. Operating expenses include those costs that contribute directly to the manufacture and distribution of goods. c. Cost of goods sold represents the total cost, excluding shipping, of the merchandise sold during the accounting period and Gross profit margin is calculated by dividing gross profit by net sales revenue d. Gross profit margin is calculated by dividing gross profit by net sales revenue.

Which of the following is true about the information-gathering process in competitive analysis? Select one: a. It is an expensive process that only large companies can afford. b. It is a process closely regulated by various federal laws that prohibit doing things like purchasing competitive products and analyzing them. c. It can be relatively inexpensive and easy for the small business owner to conduct. d. It is a process that requires expert help and is relatively expensive.

Which of the following statements concerning cash management is false? Select one: a. Cash is the most important, yet least productive, asset a small business owns. b. Young companies tend to be "cash sponges," soaking up every available dollar of cash. c. Fast-growing businesses are least likely to experience shortages. d. Cash management involves forecasting, collecting, disbursing, investing, and planning for a company's cash needs.

Which ratio would be most helpful to a business owner to measure the profit per dollar of sales? Select one: a. Net profit to equity b. Net sales to working capital c. Net profit on sales d. Net sales to total assets

________ are those items of value the business owns; ________ are those things the business owes. Select one: a. Equities; liabilities b. Ratios; equities c. Assets; liabilities d. Liabilities; assets

________ is the most important, yet least productive, asset that a small business owns. Select one: a. Profit b. Inventory c. Cash d. Accounts receivable

________ ratios help a business owner evaluate the company's performance and indicate how effectively the business employs its resources. Select one: a. Liquidity b. Leverage c. Operating d. Profitability

A bank loan that imposes restrictions or covenants on the business decisions an entrepreneur makes concerning the company's operations is called a ________. Select one: a. floor planning b. line of credit c. home equity loan d. term loan

A business plan is a written summary of ________. Select one: a. an entrepreneur's proposed business venture b. a business venture's operational, financial, and marketing details c. the skills and abilities of a business venture's managers d. All of these

A cash budget ________. Select one: a. is based on the cash method of accounting b. is a "cash map," showing the amount and the timing of cash flowing into and out of the business over a given period of time c. will never be completely accurate since it is based on forecasts d. All of these

A cash budget is based on the cash method of accounting, meaning that cash receipts and cash disbursements are recorded in the forecast only when ________ is expected to take place. Select one: a. the transaction is predicted b. the cash transaction c. projections are d. a credit sale

A competitive profile matrix ________. Select one: a. creates a road map of action for the entrepreneur to fulfill her company's mission, goals, and objectives b. identifies a firm's core competencies c. permits the small business owner to divide a mass market into smaller, more manageable segments d. allows the small business owner to evaluate her firm against competitors on the key success factors for the industry

A high debt ratio ________. Select one: a. decreases the chances that creditors will lose money if the business is liquidated b. represents a lower risk to potential lenders and creditors c. gives a small business more borrowing capacity d. means that creditors provide a large percentage of the company's total financing

A solid business plan ________. Select one: a. forces potential entrepreneurs to look at their business idea in the harsh light of reality b. requires a potential entrepreneur to assess the venture's chances of success more objectively c. helps prove to outsiders, such as potential lenders and investors, that a business idea can be successful d. All of these

The most common method used by commercial finance companies to provide credit to small businesses is ________. Select one: a. unsecured lines of credit or "character loans" b. profitability based c. insurance based d. asset based

A strategic plan serves as a blueprint to help a company to ________. Select one: a. match their company's strengths and weaknesses to the environment's opportunities and threats b. accomplish its mission, goals, and objectives c. identify a company's competitive advantage and set it apart from its competition with a unique position in the market d. All of these

All of the following represent benefits of selling on the Web except ________. Select one: a. ability to remain open 24 hours a day b. power to educate and inform c. opportunity to increase revenues d. ability to advertise in a cheaper media form

An effective search engine optimization (SEO) strategy can be maintained through ________. Select one: a. natural, or organic, listings b. paid or sponsored listings c. paid inclusions d. All of these

An important part of any e-commerce effort is ________. Select one: a. to have high traffic to the site, regardless of the customers' interest in what the site actually offers b. to have a site that is fast and dependable c. the use of current technology and its successful implementation d. the ability to understand the underlying business and to develop a workable business model

Analyzing financial ratios could alert a business owner to which of these problems? Select one: a. Excessive inventory b. Overextending credit c. Too much debt d. All of these

At the root of every seemingly technical problem is a ___________ problem. Select one: a. quantitative b. natural c. qualitative d. human

Barter offers business owners the benefit of ________. Select one: a. buying materials, equipment, and supplies without spending valuable cash on them b. transforming slow-moving inventory into much-needed goods and services c. "paying" for goods and services at wholesale cost and getting credit for retail price d. All of these

Because of the risk/return tradeoff, small businesses that borrow money repay it with interest at the ________. Select one: a. prime interest rate b. lender's cost of capital c. prime interest rate minus a few percentage points d. prime interest rate plus a few percentage points

Before entering into any partnership arrangement, entrepreneurs must consider ________. Select one: a. the partnership will only have an impact on sharing profits b. what interest rate the partner is expecting c. the ramifications of having another person on the payroll d. the impact of giving up some personal control and sharing profits with others

By planning cash needs ahead of time, a small business is able to achieve all but which of the following? Select one: a. Finance seasonal business needs. b. Make the most efficient use of available cash. c. Provide funds for expansion. d. Provide the opportunity to forgo quantity and cash discounts.

Exchanging goods and services for other goods and services, or ________, is an effective way for a small business to conserve cash. Select one: a. leasing b. arbitrating c. credit sales d. bartering

For product-based businesses, ________ often represents their largest capital investment. Select one: a. account receivables b. plant and equipment c. real estate d. inventory

For small businesses, ________ are the very heart of the financial market, providing the greatest number and variety of loans to small companies. Select one: a. commercial finance companies b. credit unions c. factors d. commercial banks

For the question(s) below, consider the following competitive profile matrix: Which company has the worst location? Select one: a. Your company b. Competitor 2 c. Impossible to tell from the information given. d. Competitor 1

Ideally, a business plan should be about ________ pages in length. Select one: a. 40 to 75 b. 20 to 40 c. 75 to 100 d. 10

In a Regulation D stock offering, the company ________. Select one: a. sells its shares directly to private investors b. makes a private placement without actually "going public" c. does not have to register its shares with the SEC d. All of these

It is important to focus on establishing the _________ under which autonomous startup teams operate. Select one: a. personnel guidelines b. financial resources c. All of these are important. d. ground rules

Kevin Abt noticed that people were cooking meals in their homes less often but wanted to avoid the hassle of going out to eat. They wanted to "eat in" without cooking. Abt launched a company, Takeout Taxi, that delivers restaurant-prepared food to his customers' homes and businesses. Takeout Taxi is the result of a(n) ________. Select one: a. weakness b. strength c. threat d. opportunity

Marc Andreessen coined the term ___________ to describe the moment when a startup finally finds a widespeard set of customers that resonate with its product. Select one: a. market potential achieved b. advertising nervona c. All of these are correct. d. product/market fit

Most problems that at first appear to be individual mistakes can be traced back to problems in ____________. Select one: a. resources b. production c. individuals d. training

One common mechanism to attract international visitors is to include several ________. Select one: a. alternative forms of payment options b. colors and symbols reflective of international cultures c. images reflecting multiple cultures d. language buttons

Perhaps the best domain name is one that ________. Select one: a. sounds very much like a larger competitor's name b. does not use the company's initials c. is complex to stop competitors from copying it d. customers can easily guess if they know the company's name

Question text A combination of hardware and software that allows employees to have access to the Internet but keeps unauthorized users from entering the company's network is called ________. Select one: a. virus detection software b. intrusion detection software c. Web protection d. a firewall

Question text The company history section of the business plan typically includes ________. Select one: a. significant financial and operational events b. highlights of the key goals and objectives the company has accomplished in the past c. a brief description of when and how the company was formed and how it has evolved over time d. All of these

Refer to the following information: Which of the following statements is most likely false? Select one: a. Smith's prices may be too high and/or the inventory too "stale." b. Smith relies heavily on inventory to meet its debt obligations. c. Smith's sales are inadequate. d. Smith is sufficiently capitalized.

Regarding Gunther's Emporium, refer to the following to answer the question(s) below: Gunther's Emporium expects net sales of $2,396,919 for the upcoming year, with variable expenses totaling $1,813,443 and fixed expenses of $412,190. Using break-even analysis, what is Gunther's contribution margin? Select one: a. 4 percent b. 12 percent c. 32 percent d. 24 percent

Responsible online merchants should make sure shipping and handling charges are ________. Select one: a. reasonable b. displayed early in the buying process c. easy to find d. All of these

Some companies use ________ to encourage customers to participate in the design of their products, a process called ________. Select one: a. mashups; co-creation b. wikis; collaboration c. widgets; co-creation d. wikis; co-creation

Startups have to focus on the big experiments that lead to _________________. Select one: a. the greatest profits b. the greatest potential c. the most traffic d. validated learning

Strengths and weaknesses are ________ to the organization. Select one: a. internal and/or external factors b. factors not belonging c. external factors d. internal factors

Successful e-tailers have discovered that these factors enhance their reputations for online customer service ________. Select one: a. comprehensive FAQ pages and e-mail order confirmation with shipment notices b. visible telephone and e-mail contact information c. quick responses to questions with meaningful information d. All of these factors enhance a Web-based reputation.

Suppose and advertisement costs $100 and causes fifty new customers to sign up for the service. This ad has a ____________ of $2.00. Select one: a. None of these are correct. b. Cost of Goods Sold (COGS) c. average cost (AC) d. cost per acquisition (CPA)

The "wait to go effective" is the time period when ________. Select one: a. the firm prices the stock for the offering b. the underwriter decides what regulation to file under c. the SEC registration statement is being prepared d. the company is waiting for SEC approval after filing the registration statement

The Tanning Parlor is in the middle of the busy season. Owner Sunny Bright has hired extra help and encountered some unexpected repairs that have left her short of operating capital. What type of financing would Sunny most likely use in this situation? Select one: a. Trade credit b. A discounted installment contract c. A line of credit d. Floor planning

The Web is one of the most efficient ways of reaching both new and existing customers and when properly promoted, a Web site can ________. Select one: a. reduce a company's cost of generating sales leads b. be an affordable way to reach customers beyond your geographic area c. provide an efficient method to provide information about a company and their products d. All of these

The ________ represents a "snapshot" of a business, showing an estimate of its value on a given date, while the ________ is a "moving picture" of the firm's profitability over time. Select one: a. statement of cash flows; income statement b. income statement; balance sheet c. balance sheet; statement of cash flows d. balance sheet; income statement

The ________ test that a business plan must pass to attract financing from lenders and investors involves proving that a market for the company's product or service actually does exist and that the company actually can build it for the cost estimates included in the plan. Select one: a. competitive b. profitability c. value d. reality

The best way to influence the boss and get what you want is to take the ___________ possible. Select one: a. most cautious b. most extreme position c. safest route d. quickest

The best way to influence the boss and get what you want is to take the ___________ possible. Select one: a. most cautious b. safest route c. quickest d. most extreme position

The break-even point ________. Select one: a. occurs where a company's total revenue equals its total expenses b. is the point at which a company neither earns a profit nor incurs a loss c. tells a business owner the minimum level of activity needed to keep her company in operation d. All of these

The company history section of the business plan typically includes ________. Select one: a. significant financial and operational events b. highlights of the key goals and objectives the company has accomplished in the past c. a brief description of when and how the company was formed and how it has evolved over time d. All of these

The document outlining the details of the agreement between the entrepreneur and the stock underwriter is called ________. Select one: a. a "blue sky" agreement b. the registration statement c. Regulation D d. the letter of intent

The executive summary section of the business plan ________. Select one: a. should be a concise summary of the business venture b. should be no more than two pages long c. must capture the reader's attention and entice her/him to read the rest of the plan d. All of these

The number of visitors to a company's Web site who view a single page and leave without viewing other pages is referred to as the ________. Select one: a. click-stream b. stickiness of the site c. conversion ratio d. bounce rate

The real benefit of barter for the entrepreneur is that ________. Select one: a. it saves the small business owner between $100,000 and $150,000 a year on the average b. it is considered a depreciable item for tax purposes rather than as income c. it is essentially without cost to the business owner d. it is "paid" for at the wholesale cost of doing business, yet it is credited at the retail price

The recent turbulence in the financial markets has caused banks to ________ their lending standards, making it ________ for small businesses to qualify for loans. Select one: a. relax; more difficult b. relax; easier c. tighten; easier d. tighten; more difficult

The three "tests" associated with a business plan are ________. Select one: a. competitive, profitability, and value b. value, reality, and profitability c. reality, value and litmus d. reality, competitive, and value

To be successful online, small companies must create Web sites with features that appeal to experienced Web shoppers, such as ________. Select one: a. simple navigation and customer reviews b. solid security and quick access to product information c. videos and blogs d. the successful Web site will include all of these

To convince lenders and investors to put their money into the venture, a business plan must prove to them that it offers a high probability of repayment or an attractive rate of return. This is the ________ test. Select one: a. reality b. competitive c. attractiveness d. value

To encourage credit customers to pay invoices promptly, a business owner should ________. Select one: a. ensure that all invoices are clear, accurate, and timely b. state clearly a description of the goods or services purchased and an account number c. include a telephone number and a contact person in case the customer has a question or a dispute d. All of these

To reach profit objectives, entrepreneurs must be aware of their firms' ________. Select one: a. overall financial position and any changes in the financial status b. fixed assets and owner's equity c. assets and liabilities d. current ratio and liabilities

Under pressure, teams may feel that they don't have _______ to waste on analyzing root causes even though it would give them more time in the long term. Select one: a. resources b. personnel c. All these are correct. d. time

What factors can drastically affect a company's cash flow? Select one: a. Increased competition b. Economic swings c. Normal seasonal variations d. All of these

When a company is forced into liquidation, owners are most likely to incur a loss when selling ________. Select one: a. real estate b. accounts receivable c. marketable securities d. inventory

Which of the following is not a characteristic of a well-written objective? Select one: a. Realistic, yet challenging b. Timely c. Measurable d. General

Which of the following is not a common reason customers leave Web sites before checking out? Select one: a. The site did not appear trustworthy. b. Total shipping charges were too high. c. The shopping cart was too hard to find. d. The privacy policy was not posted

Which of the following is not one of the three components of intellectual capital? Select one: a. Structural b. Customer c. Human d. Competitor

Which of the following is not one of the three components of intellectual capital? Select one: a. Structural b. Human c. Customer d. Competitor

Which of the following is true regarding the process of building a business plan? Select one: a. It allows an entrepreneur to replace "I think" with "I know" and to make mistakes on paper, which is cheaper than making them in reality. b. It reduces the risk and uncertainty of launching a company by "teaching" the entrepreneur more about the industry, the market and the proposed venture. c. It requires an entrepreneur to subject the business idea to a more objective and critical evaluation. d. All of these

Which of the following represents capital? Select one: a. Inventory b. Equipment and machinery c. Cash d. All of these

Which of the following statements concerning leasing is true? Select one: a. Leasing is an "off-the-balance-sheet" method of financing assets. b. Although total lease payments for an asset are greater than those on a conventional loan, most leases do not require large capital outlays as down payments. c. Leasing gives business owners access to equipment even when they cannot borrow the money to buy it. d. All of these

________ ratios tell whether or not the small company will be able to meet its short-term obligations. Select one: a. Operating b. Profitability c. Leverage d. Liquidity

________ ratios tell whether or not the small company will be able to meet its short-term obligations. Select one: a. Profitability b. Operating c. Leverage d. Liquidity

ne hallmark of successful entrepreneurs is the ability to ________. a. be willing to gamble b. repeat the same mistake c. fail intelligently d. overlook past successes

pyrights protect the creator of original works such as ________. a. text and verbiage of any kind b. slogans and designs c. software, choreography, and motion pictures d. symbols, names, and designs

An engine of growth can be defined quantitatively. Select one: True False

true

Companies are able to design, develop, and ship out new features one at a time, taking advantage of the power of small batches. Select one: True False

true

Entrepreneurs need a personal stake in the outcome of their creations. Select one: True False

true

"Copreneurs" are defined as ________. a. entrepreneurs that work part-time b. entrepreneurial couples that work together as co-owners of their business c. those entrepreneurs that will eventually combine their business with another venture d. highly successful entrepreneurs with prior company experience and background

"Copreneurs" are defined as ________. a. highly successful entrepreneurs with prior company experience and background b. entrepreneurial couples that work together as co-owners of their business c. those entrepreneurs that will eventually combine their business with another venture d. entrepreneurs that work part-time

. Entrepreneurs may find benefit from the Internet due to its potential ________. a. to take all pressure off other attributes of the business venture b. if the organization is willing to invest millions of dollars in this effort c. as a relatively low-cost solution to expand its revenue-generating abilities d. only if the entrepreneur has a high level of technical abilities

. It is estimated that ________ percent of new businesses fail within two years, while ________ percent fail within five years. a. 35; 41 b. 51; 31 c. 21; 51 d. 51; 64

. Most entrepreneurs believe that ________ is what matters most, but ________ is the most important financial resource for a small business owner. a. inventory; cash b. profit; inventory c. cash; profit d. profit; cash

. One of the most significant economic developments in recent business history relates to the ________. a. additional employment opportunities offered by government institutions b. growth of blue-chip corporations c. development of Pacific Rim countries d. entrepreneurial spirit

. The only people who ________ are those who never do anything or never attempt anything new. Select one: a. succeed b. profit c. prosper d. fail

. Which of the following question(s) should you consider before entering a lawsuit to protect intellectual property? a. Can you afford the loss of time, money, and privacy the lawsuit will bring? b. Can the opponent afford to pay if you win? c. Do you expect to get enough from the suit to pay for the costs of hiring an attorney? d. All of these

. Which of the following statements is not true regarding the diversity of entrepreneurs? a. Immigrants with more education and experience than those of the past are coming to the U.S. and succeeding in entrepreneurial ventures. b. Minority-owned businesses have come a long way in the past decade, and their success rate is climbing. c. Minority-owned businesses now account for approximately 22 percent of all businesses in the U.S. d. The numbers of part-time and home-based entrepreneurs are rising.

. Which stage of the creative process involves viewing the similarities and differences in the information collected? a. Incubation b. Illumination c. Verification d. Transformation

. ________ entrepreneurs are business builders who seek innovative solutions to some of society's most vexing problems. a. Social b. Opportunistic c. Necessity d. Serial

43. An entrepreneur is one who ________. a. understands the process of developing an idea and does not need to understand what it means to bring that idea to a viable business concept b. creates a new business concept for the purpose of achieving profit and growth by assembling the necessary resources to capitalize on identified opportunities c. knows that the concept they are about to develop will result in a profitable business d. is willing to attempt to implement a business concept and then give up if it does not meet immediate expectations

All of the following are enhancements to individual creativity except ________. a. taking time off b. allowing yourself to be creative c. keeping a journal to record thoughts and ideas d. limiting your reading sources

All of the following represent barriers to creativity that entrepreneurs impose upon themselves except ________. a. being too practical b. focusing on being too logical c. searching for more than one answer d. blindly following rules

Which of the following was not identified as one of the suggestions for small business success? a. Develop a business plan as you grow your business. b. Manage your financial resources and understand financial statements. c. Learn to manage people successfully. d. Know your business in depth.

The ability to see the connections among various data and events is called ________. a. divergent thinking b. illumination c. convergent thinking d. transformational thinking

The average age of the first-time entrepreneurs in the United States is nearly ________. Select one: a. 44 b. 25 c. 19 d. 31

Which of the following statements about women-owned businesses is false? Select one: a. The businesses women start tend to be smaller than those men start. b. Women own about 28 percent of all privately-held businesses in the U.S. c. The number of women-owned businesses is growing slower than the national average. d. Women-owned companies are far less likely to attract equity capital investments as those that men start.

The left brain is guided by ________. a. kaleidoscopic, lateral thinking b. asymmetrical thinking c. intuitive thinking d. linear, vertical thinking

The majority of new business owners work ________. a. more than 80 hours per week b. more than 40 hours per week c. fewer than 40 hours per week d. more than 70 hours per week

The majority of small companies are concentrated in the ________ and ________ industries. a. wholesale; retail b. retail; service c. manufacturing; service d. manufacturing; retail

The recent number of job losses in large corporations compared to the jobs created by small business has changed the perception of ________ for launching a new business. a. short-term potential b. financing opportunities c. prestige d. risk

The right brain is guided by ________. a. kaleidoscopic, lateral thinking b. logical thinking c. asymmetrical thinking d. linear, vertical thinking

The three principles (three Rs) of rapid prototyping are ________. a. develop a right model, roughly, and for the right price b. develop a rough model, rapidly, and for the right problem c. develop a rough model, rapidly, and for the right price d. develop a complete model, rapidly, and for the right problem

Which of the following is not a characteristic of a successful working relationship between copreneurs? a. Compatible business and life goals. b. A clear division of roles and authority based on each partner's skills and abilities. c. A clear definition of one partner as "boss" and the other as "subordinate". d. Complementary business skills.

Which of the following is not one of the ways entrepreneurs can stimulate their own creativity and encourage it among their workers? a. View challenges as problems. b. Provide creativity training. c. Encourage curiosity. d. Develop a corporate culture that both fosters and rewards creativity.

Which of the following is/are true regarding business plans? a. Provide a pathway to success. b. Allow entrepreneurs to replace faulty assumptions with facts before making the decision to go into business. c. Create a benchmark against which entrepreneurs can measure actual company performance. d. All of these

Which of the following sets of experiences may enhance individual creativity? a. Travel and recognize the creative power of mistakes and accidents. b. Notice what is missing. c. Journal and listen to people and customers. d. All of these

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