Chapter 7 Quiz

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IPO is an acronym that stands for a. initial public stock offering. b. immediate principal obligation. c. instant public obligation. d. initial public obligation.

a. initial public stock offering.

___________ are a way for a business to raise capital through federally registered and underwritten sales of shares in the company. a. Venture capital funds b. IPOs c. Skunkworks d. Bootleggings

b. IPOs

McDonald's uses __________ to participate in the global marketplace. a. wholly owned subsidiaries b. franchising c, joint ventures d. licensing

b. franchising

Your roommate is interested in starting a business and everybody has been giving her different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell her is true? a. Anyone can start a business. b. Entrepreneurs "get rich quick" and enjoy a lot of leisure time. c. Successful entrepreneurs take very careful, calculated risks. d. Entrepreneurs are their own bosses and completely independent.

c. Successful entrepreneurs take very careful, calculated risks.

A formal planning step that focuses on the entire venture and describes all the elements involved in starting it is known as a(n) a. control system. b. IPO. c. business plan. d. opportunity analysis.

c. business plan.

A competitive advantage from relationships with other people and the image other people have of you is known as a. authenticity. b. venture capital. c. social capital. d. legitimacy.

c. social capital

People's judgment of a company's acceptance, appropriateness, and desirability, generally stemming from company goals and methods that are consistent with societal values is known as a. authenticity. b. venture capital. c. legitimacy. d. social capital.

c. social capital.

The practice of charging fees to advertise on an Internet site is called the a. affiliate model. b. subscription model. c. intermediary model. d. advertising support model. e. transaction fee model.

d. advertising support model.

An individual who establishes a new organization without the benefit of corporate sponsorship is called a(n) a. management novice. b. sole proprietor. c. intrapreneur. d. entrepreneur.

d. entrepreneur.

Intrapreneurs are unit managers who create new businesses with corporate assets. a. individuals who establish a new organization with corporate support. b. bootleggers. c. individuals who establish a new organization without corporate support. d. new-venture creators working within a large organization.

d. new-venture working within a large organization.


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