SBM Final Review

In EOS planning, the longest term for planning is ___. 1 year 3 years 5 years 10 years

10 years

The entrepreneurial operating sytem (EOS) is based on a framework that has ___ components 2 4 6 10

6

Salesforce.com is an example of a ____. cost tracking system customer relationship management system accounting system operations system

Customer relationship management system

According to your text, the ___ approach to driving business is preferred. product-oriented sales-oriented customer-oriented profit-oriented

Customer-oriented

T/F Background checks are an option when hiring an individual

False

Changing product direction after gaining insight from customers is a ___. pivot course change about face failure

Pivot

Which is general more accurate? short-term forecasts long-term forecasts both are equally accurate both are impossible to estimate

Short-term forecasts

What is the number 1 reason why startups fail (from customer discovery slides)? they have poor management skills they do not build a product that the market wants they don't work hard enough the team can't work together

They do not build a product that the market wants

T/F Product-market fit refers to the relationship between customer segment and value proposition

True

T/F Promoting the family's values to set themselves apart from competitors is a possible advantage of family business

True

T/F Quickbooks has the ability to connect and share data with your bank accounts

True

T/F Quickbooks is a financial management software

True

In Quickbooks, the chart of accounts is ____. the annual budget the list of cash sources the list of customers who owe money a listing of expense, asset, and liability categories

A listing of expense, asset, and liability categories

Which is the most common form of workplace misconduct abusive behavior violations of internet policies stealing or theft substance abuse at work

Abusive behavior

Which of following is NOT a typical cost of becoming a franchisee? initial franchise fee royalties on sales requirement to purchase franchisor products all are costs

All are costs

Which of the following is NOT a factor of debt financing (bank loan). returns for individual investors will be higher more financial risk since debt payments are required owners maintain more control of the company all are factors

All are factors

Whom of the following is not a stakeholder owners employees customers all are stakeholders

All are stakeholders

What are some of the reasons people want to work for small companies? there is more job diversity a relationship with company ownership it may be easier to increase your responsibilities all of the above

All of the above

What are ways to improve governance of family businesses? family retreats install a board of directors family business constitutions all of the above

All of the above

What is a business model? explains how a company will create, deliver, and capture value describes the components necessary for a business assesses the desirability, feasibility, and viability of a business all of the above

All of the above

What is an example of a revenue stream? sales transactions rental fees subscriptions all of the above

All of the above

When we narrow our focus in the market, we target certain customer ___. segments behaviors demographics all of the above

All of the above

Which of the following are users of a business plan? management team investors potential customers all of the above

All of the above

Which of the following is impacted by your sales forecast? employee hiring budgeting planning with suppliers all of the above

All of the above

Why is a cash budget important? it insures that you will have enough cash to meet your obligations it helps you manage timing for loans and investments it allows you to maximize your return on excess cash all of the above

All of the above

Groups that lend money to very early stage companies often to give back to community are called ___. angel investors philanthropists venture capitalists credit unions

Angel investors

When you "pitch" to investors, you are ___. giving them an update asking for them to invest demonstrating how smart you are all of the above

Asking for them to invest

On the balance sheet, accounts receivables are ___. assets liabilities equity debt

Assets

In a business plan document, the Executive Summary goes ___. at the beginning at the end in the middle in the appendices

At the beginning

Most small businesses with growth potential are categorized as microbusinesses lifestyle businesses attractive small firms gazelles

Attractive small firms

Which of the following is NOT a section of a business plan financial projections exit plan business model canvas team composition

Business model canvas

Your company's ________ formally establishes standards for employee behavior code of ethics employee handbook company values company vision

Code of ethics

Which of the following is MOST important to have if borrowing money from a bank? a good reputation a long track record collateral a good credit score

Collateral

Which of the following is NOT a function of Quickbooks? deciding on equity or debt financing processing sales transactions processing payments for suppliers preparing financial reports

Deciding on equity or debt financing

When hiring an employee, the first step is to ____. develop a job description post online on a site like indeed contact a professional recruiter contact the equal employment opportunity commission

Develop a job description

Which of the following is NOT a condition for evaluating fit in an EOS company? do they get it do they do it do they want it do they have the capacity

Do they do it

When buying a business, what is the process of confirming claims and financials? due diligence product validation auditing physical inventories

Due diligence

Which of the following is NOT a legal protection of employees? americans with disabilities act age discrimination in employment act occupational safety & heath act equal rights amendment

Equal rights amendment

T/F Equity financing requires that you get a loan from a bank

False

T/F Establish goals is not necessary or possible in a marketing strategy

False

T/F Flexibility is an advantage of franchising

False

T/F Gross profit is profit after all expenses are taken into account

False

T/F It is likely that in the initial phase of creating a startup, the founders already know everything about their customers

False

T/F Profit and cash flow are the same thing

False

T/F Size (number of employees) is the ideal criteria to categorize small businesses

False

T/F The value proposition explains how a company creates value for investors

False

T/F When comparing Customer Acquisition Costs (CAC) to Customer Lifetime Value (LTV), it is important that CAC is larger

False

Benefits of customer relationship management (CRM) are ___. saves cost by maintaining old customer vs acquiring new increases sales because long-term customers tend to spend more current customers are less likely to ask for discounts all of the above

Increases sales because long-term customers tend to spend more

When is the primary document executed in the purchase of a business? term sheet purchase agreement employment contract code of conduct

Purchase agreement

When it comes to the psychology of making purchasing decisions, which of the following is NOT a factor? motivation strength of need quality of products perceptions of brand

Quality of products

In EOS, the "rocks" are defined and addressed on a ___ basis. yearly quarterly monthly weekly

Quarterly

What is the best method to learn about your customer segment? talk to them online searches ask ChatGPT use your intuition

Talk to them

T/F A market is a group of customers or potential customers who have purchasing power and unsatisfied needs

True

T/F A marketing plan should include a SWOT analysis

True

T/F A sales forecast provides a prediction of how much will be sold within a given market during a specified time period.

True

T/F According to the book, small businesses have less than 100 employees

True

T/F An independent contractor is someone who completes an assignment but retains control over the actual work done

True

T/F Entrepreneurial inexperience, coupled with a new idea, represents the most difficult forecasting situation

True

T/F Family conflict is a potential disadvantage among family businesses

True

T/F Family members inside the company sometimes see those external to the firm as parasites

True

T/F Flexibility is one of the advantages of being an independent contractor

True

T/F It is fair game to ask a candidate about their experience during an interview

True

T/F It is important to determine how you will measure results of your marketing plan

True

T/F It is possible to be unethical and still be within the law

True

T/F It is possible to finance your company using credit cards, but the high interest rates are a very significant risk

True

T/F Most entrepreneurs spend more time worrying about cash flow than profits

True

T/F One definition of integrity is "having a set of values and following closely"

True

T/F Pro forma financial statements look like typical financial reports but are forward-looking (forecasts)

True

T/F The balance sheet is a report showing a firm's assets, liabilities, and owners' equity at a specific point in time

True

T/F The franchisor/franchisee relationship is documented in the franchise contract

True

T/F The income statement is a report showing the amount of profits/losses from a firm's operations over a given time period

True

T/F The legitimacy lie is a temptation for small businesses to exaggerate their size/capabilities.

True

T/F The majority of time in the Level 10 weekly meetings is spent on issue solving

True

T/F There is a broad spectrum of franchising options

True

T/F Typically one would become a franchisee to leverage an already proven business plan

True

Which of the following is NOT a common motivation for owning a small business? personal fulfillment independence financial reward all are motivations

all are motivations

What are common pathways for exiting a business selling through bizbuysell.com transitioning to family transitioning to employee ownership all are pathways

all are pathways

Which of the following is NOT a tool for evaluating customer experience? asking opinions from your sales team establishing a customer satisfaction score using a net promoter scale to assess customer loyalty using a customer effort score to monitor customer service helpfulness

asking opinions from your sales team

Which of the following is not one of the 4 Ps of marketing persistence place promotion product

persistence