ENTR 2500 Midterm 1

Women-owned companies in the United Sates generate sales nearly ______ trillion a year

$1.6

creative thinkers tend to:

- ask "is there a better way?" - challenge custom, routine, and tradition - play mental games, trying to see an issue from different perspectives - see problems as springboards for new ideas

what is part of an effective market analysis?

- distribution - pricing - location

Jamie's Bakery, a small chain of eight bakeries in Altamonte Springs, Florida has recorded sales growth of 30 percent or more per year ever sine it was started in 2010, and in 2017 had revenues of $229,000. Jamie's Bakery is a(n)_____________

Gazelle

Some people call determination, an important entrepreneurial characteristic, ________

Grit

Members of which minority group are most likely to be entrepreneurs?

Hispanic

the ______ population is the fastest growing demogrpahic sector in the Unied States

Hispanic

Apple, Inc., Mary Kay Cosmetics, and Hershey, have one thing in common. They all started as _____ businesses

Home-based

The principal goal of ________ managers is to achieve personal or organizational success at any cost, even if doing so requires them to violate moral standards and the law

Immoral

Which of the following is NOT a characteristic exhibited by entrepreneurs?

Intolerance for ambiguity

Juan Lamora started four entrepreneurial ventures between 2014 and 2016, and in 2017 he managing all four ventures at once. In the language of entrepreneurship, Juan is a(n) __________

Juggler

A __________ - based economy favors small businesses

Knowledge

What matters more in today's business is not so much the traditional factors of production but__________

Knowledge and information

In contrast to her brother Juan, Lupe Lamora started a business in 2013, sold it, started a second one in 2016, sold it in 2017, and started a new one again. Lupe is a(n)________

Leapfrogger

________ are people who start a company, manage its growth until they get bored, and then sell it to start another

Leapfroggers

Right from its launch, Wenger Ventures, as entrepreneurial start-up, set up offices in multiple European and African countries, and started doing business worldwide. Wenger Ventures is a(n)_______

Macro multinational

Whereas traditional entrepreneurs seek opportunities to create ________ value, there is a growing trend to use entrepreneurship to pursue opportunities to create _______ value

Market ; social

_________ are small companies that operate globally from their inception

Micro multinationals

When a person rationalizes his/her actions by saying, "being ethical is a luxury i cannot afford right now," the mechanism he/she is exhibiting is called __________

Moral blindness

________ entrepreneurs are those who start businesses because they cannot find work any other way

Necessity

according to Porter's five Forces model, a substitute for Coca-Cola (the product) is _________

Nestle Pure Life bottled water

Entrepreneurs systematically remove as many _____ to the successful launch of their ventures as possible

Obstacles

A company's code of ethics represents which of the following ethical standards:

Organizational policies and procedures

The business Model Canvas was developed by _________

Osterwalder and Pigneur

Triple bottom line (3BL) stands for people, profits, and _________

Planet

Which of the following is NOT an attribute of entrepreneurs?

Preference for high risk

Which of the following is NOT a characteristic of the typical entrepreneur? - desire for immediate feedback - future orientation - confidence in their ability to succeed - preference for taking extreme risks - self-reliance

Preference for taking extreme risks

A common strategy in socially responsible companies is to allow employees to provide_______ work for the charitable organizations they support

Pro bono

The constant "churn" of businesses in the US economy in which new businesses and new ideas make existing ones obsolete:

Reflects a healthy entrepreneurial enovironment

A(n) _____ cannot have more than 100 shareholders.

S Corporation

A limited liability company (LLC) does not have limitations on the number of shareholders that a(n) ___ has.

S corporation

There are several types of business ownership forms. The ___________ business ownership form has the following characteristics: the company must be located in the United States; it can have shareholders, including individuals, trusts, and estates; it cannot have more than 100 shareholders, excluding partnerships, corporations, or nonresident aliens; it can issue one class of stock; and income earned by the company is passed through to the owners.

S corporation

______ entrepreneurs are those who repeatedly start businesses and grow them to a sustainable size before striking out again, pushing this characteristic to the maximum

Serial

Which industry sector dominates the US economy?

Services

Enormous quantities of used K-cups (used in Kerrigan coffee machines) are thrown away, and since they dont degrade quickly, they have an adverse effect on the environment. Jamie Murray started a business to recycle used K-cups. Jamie is a _________ entrepreneur.

Social

In terms of social responsibility, the expectation is that businesses will become ___________

Social stewards

Creating a ________ benefit rather than __________ success motivates social entrepreneurs

Social: commercial

The various groups and individuals who affect and are affected by a business are called

Stakeholders

What is NOT a cause of ethical lapses in organization?

Supplier pressure

Which document creates the LLC by establishing its name and address, method of management, its duration, and other details?

articles of organization

What is NOT a force in Porter's Five Forces Model?

bargaining power of managers

a person who believes that creativity belongs only to the Einstein's, Beethoven's, and Da Vinci's of the world has succumbed to which of the ten "mental locks" to creativity?

believing that "I'm not creative"

The four major elements to be included in a financial feasibility analysis include the following: the initial capital requirements, estimated earnings, time out of cash, and resulting return on investment. The aspect of financial feasibility that is generally of most concern to investors is ____________.

benchmarking

___________ are at the core of the value proposition of the business model

benefits

successful entrepreneurship requires________

both divergent ad convergent reasoning

The goal of which of the following is to create an open, uninhibited atmosphere that allows members of the group to "freewheel" ideas?

brainstorming

_____ is a process in which a small group of people interact with very little structure with the goal of producing a large quantity of novel and imaginative ideas.

brainstorming

There is no one "best" form of ownership. Which of the following is NOT an important issue that entrepreneurs should consider when they are evaluating the various ownership forms?

business dissolution

According to the Doblin Group, in which type of innovation is the key question, "how does your company make money"?

business model

The Doblin Group identified ten types of innovation. In which type is the focus on the value propositions that a company provides its target customers and in the way it delivers value to its customers?

business model

what happen to buyer power when the number of buyers in the industry is large?

buyer power is low

which section of the business plan is a written version of the entrepreneur's elevator pitch?

executive summary

An important element of the loan or investment proposal is the repayment schedule or the investment's _______strategy.

exit

which part of the new business planning process whether an entrepreneur's idea is a viable foundation for creating a successful business?

feasibility analysis

an ___________ is a descriptive fact about a product or service

feature

Specific parts of a business plan may vary depending on the nature of the business and the personalities of the founding entrepreneurs. Which of the following is NOT an element of a business plan?

feelings, hopes, and dreams

A feasibility analysis consists of four interrelated components: an industry and market feasibility analysis, a product or service feasibility analysis, a ___ feasibility analysis, and an entrepreneur feasibility analysis.

financial

a business plan presentation should cover _______ basic areas

five

the idea sketch pad has _______ key parameters

five

Which of the following is NOT one of the components of creativity, according to creativity expert Teresa Amabile?

focus

successful entrepreneurs understood the process of going from ideas to the launch of a new business venture

is like a funnel

Which of the following is NOT a question asked in examing the value proposition as part of the competitive test?

is ther a market or the product/service?

This video provides an overview of the business model of DBA, a company that designs and produces ecologically friendly pens. DBA chose the limited liability company form of business ownership, which offers more flexibility and is not subject to many of the restrictions imposed on other business forms. Which of the following is NOT an advantage of an LLC?

it pays income tax at the corporate rate

which part of the business model canvas identifies the suppliers, investors, lenders, advisers, contacts, and other external entities that are critical to make a business model work?

key partners

Unlike _____, entrepreneurs are willing to bend or break the rules to disrupt business as usal

Adapters

_________ managers focus is on earning a profit, and although they do not purposely violate laws or ethical standards, they neglect to consider the moral and ethical implications of their decisions on others

Amoral

what is an element of a meaningful elevator pitch?

- the target customers at whom a company aims its products or services - an explanation of what the company does in easy-to-understand terms - the company's point of differentiation - what separates it from its competitors - the benefit that a company and its products or services offer its customers

Which of the following statements about sexual harassment is true?

An employer can be held liable for third parties, such as customers, sales representatives, and others, who engage in sexual harassment against its employees if the employer has the ability to stop the harassing behavior

The primary motivating force for entrepreneurs is:

Autonomy

The Summary of Commentary on Current Economic Conditions is more commonly known as the ________________________

Beige Book

which form of ownership accounts for the greatest percentage of sales revenue and profits in the United States?

C Corporation

In 1992, immigrants to the United States owned 9 percent of all businesses in the United States; today, immigrant entrepreneurs own ____ percent of all businesses in the United States

18

_________ are entrepreneurial couples who work together as co-owners of their businesses

Copreneurs

In starting her entrepreneurial venture, Shauna Porter found that while it was great to be the boss, she often had to make decisions on issues about which she was not really knowledgeable. Which of the following captures accurately the drawback of entrepreneurship that Shauna faces?

Complete responsibility

An S corporation cannot have more than ___ shareholders.

100

In the United States, _____ percent of adults are actively engaged in launching a business

12.6

The average cost per employee per year of an employee assistance program (EAP) is between $_____ and $_______

12; 40

in the past, conventional wisdom was that business plans should be _______ pages in length

20 to 40

________ percent of workers in the United States say that they have felt pressure within their companies to compromise ethical standards

22

Nearly half of all entrepreneurs globally are between the ages of:

25 to 44

________ percent of employers in the United States say that they have ethical lapses in their companies

30

Two years after startup, approximately ______ percent of small businesses will have failed

34

new products, those that companies have launched within the previous five years, account for _____ percent of sales at top-performing companies

38

In 2020, members of ______ different generations will be working side-by-side in the United States

5

_______ percent of all businesses are home-based

52

According to a survey by SurePayroll, ___ percent of small businesses' mission statements include a reference to achieving some type of social goal.

55

Between 1993 and 2013, small businesses created ______ percent of the new jobs in the US economy

63

Within ten years of start-up, _____ percent of small businesses will have shut down

66

Of workers in the United States who observed ethical lapses in their companies, _______ percent of them reported the ethical violations

76

more than _____ percent of the world's billionaires made their fortunes by disrupting highly competitive markets with established players, such as consumer products, retail, technology, and business services

80

In the United States, small businesses make up _______ percent of all businesses engaged in exporting, and they account for _____ percent of US export sales.

98; 34

Of the nearly 29 million businesses in the United States, what percentage are considered "small"?

99.7%

Which of the following is NOT a reason why home-based businesses are booming?

A home-based business can easily attract funding

What is the correlation between a company's profitability and its reputations for ethical, socially responsible behavior?

A positive correlation exists between a company's profitability and its reputation for ethical, socially responsible behavior

________ upset the traditional way of doing things by creating new ways to do them

Disrupters

A(n) ____ is a company-provided program designed to help reduce employee issues such as alcoholism, drug addiction, excessive gambling, and other addictions, which may cause problems in the workplace.

EAP

The principal cause of ethical lapses is:

Employees who feel pressure to do whatever it takes to meet business targets

While traditional managers focus on managing available resources,________ look to spot and capitalize on opportunity

Entrepreneurs

______ are accustomed to making do without resources

Entrepreneurs

Comparing entrepreneurs' income to that of paid employees, which of the following is true?

Entrepreneurs' average income is much higher than that of paid employees but so is the variability of entrepreneurs' income

this statement is false about business plans

a collection of figures scribbled on a notepad that show potential lenders or investors a company's most likely financial performance is sufficient in the search for capital

Gio's Produce wants to be socially responsible and its employees have created a list of causes they want the company to support. Which item on the list is NOT a way for Gio's Produce to demonstrate its social responsibility?

a program to let eployees sell their art work to each other

what is NOT an element of an effective employer drug program?

a verbal substance abuse policy

Silent partners are not ____ in a business but generally are known to be associated with the business.

active

In a partnership, because of ___ power, all partners must exercise good faith and reasonable care when performing their responsibilities.

agency

In a partnership, partners are bound by the law of ______________.

agency

In limited liability partnerships (LLPs), ___ partner(s) in a business is (are) (a) limited partner(s).

all

what is not true about an S corporation?

an S corporation pays taxes at a special S corporation tax rate

Innovation is the ability to ____ creative solutions to problems and opportunities to enhance or enrich people's lives.

apply

Forming an LLC requires the entrepreneur to create two documents:the ______ and the operating agreement.

articles of organization

what is not part of the "five Cs of credit?"

candor

________, one of the "five C's of credit," is a synonym for cash flow

capacity

which one of the "five C's of credit" includes the owners investment n the start-up company?

capital

what element of financial feasibility analysis involved estimating the amount of money an entrepreneur will need to start his or her business?

capital requirement

for lenders and investors, a synonym for capacity is

cash flow

The product or service feasibility analysis addresses the question, "Are customers willing to purchase our goods and services?" Entrepreneurs need feedback from primary and secondary research from potential customers or market research firms like MELT to successfully answer this question. Secondary research involves gathering data that has already been compiled and is available at a reasonable cost or sometimes even free. Which of the following is NOT a source of secondary research?

census data

The final part in the five-part framework to help entrepreneurs develop a meaningful elevator pitch is the ______________.

clincher

The Pundabis Company is a family owned corporation whose shares are held and controlled by the Pundabis family and not traded on any exchange. The Pundabis Company is a ___held corporation.

closely

in a(n) ____________ corporation, shares of ownership are controlled by a relatively small number of people, often family members, friends, or employees

closely held

While only 30 - 40 percent of business owners write a business plan, writing a business plan is an extremely good investment of a business owner's time and money. If a company meets with entrepreneurs at a conference for start-ups and shows interest in your company, you might provide a copy of the business plan as a way to ______________.

communicate the merits of the new venture to an outsider

A ____ defines the values underlying the entire company and its ethical responsibilities to its stakeholders.

company credo

The goal of developing a strategic plan is to create for the small company a ___ advantage.

competitive

a ______________ is the value proposition that sets a small business apart from its competitors and gives it a unique position in the market that is superior to its rivals

competitive advantage

what factor makes an industry more attractive?

competitors in an industry come in a variety of sizes, from small to large

While Dan Alonso does not generally have the ability to generate a lot of alternatives for a problem, he excels in evaluating all the ideas put forth and choosing the best option. Dan Alonso is good at _____.

convergent reasoning

Marta, the owner of a Greek restaurant, writes a cookbook that includes some of her family's recipes. Which intellectual property tool can Marta use to protect her cookbook?

copyright

The Supreme Court has defined the ___ as "an artificial being, invisible, intangible, and existing only in contemplation of the law."

corporation

According to Joseph Schumpeter, _____ is when people rethink conventional assumptions and discard those that are no longer useful.

creative destruction

_____ is the ability to develop new ideas and to discover new ways of looking at problems and opportunities.

creativity

what is NOT a feasibility analysis component?

customer feasibility

There are various audiences for a firm's business plan. ____________ are stakeholders who will ask for a full business plan if their interest is sufficiently peaked.

customers

To reposition itself as a healthcare delivery business, CVS Caremark Corporation stopped selling cigarettes at its retail stores and changed the company name to "CVS Health." This is an example of a business's responsibility to its _____________.

customers

Typically, businesses have responsibilities to several key stakeholders, including the environment, employees, customers, investors, and the community. The most important group of stakeholders that a business must satisfy is its ___________.

customers

in most industries, of the five forces, rivalry among competing firms is the ______ force

strongest

changes over time in the composition and characteristics of people create both opportunities and threats for entrepreneurs. these changes are part of which macro force?

demographic

Leona operates The Honest Bakery in an urban area where she sells a variety of fresh-baked products, including homemade breads, muffins, rolls, doughnuts, croissants, and other delectable items. Leona makes her baked items from all-natural ingredients, and she sells a line of gluten-free products. Several blocks away is another bakery. The Bake Shop, that sells most of the same products that Leona sells but does not carry any gluten-free products. To Leona, The Bake Shop is a ___________ competitor.

direct

Sometimes innovation is revolutionary, creating market-changing, ___ breakthroughs that are the result of generating something from nothing.

disruptive

When posed with a problem, Ruth Marcus has the ability to create a wide variety of very different ideas. Ruth Marcus excels in ____ reasoning.

divergent

______ thinking is the ability to see the differences among various data and events

divergent

_____ is the ability of a person to create a multitude of original, diverse ideas.

divergent reasoning

What is NOT an element in a financial feasibility analysis?

dividend policy

____ partners are neither active nor generally known to be associated with the business.

dormant

Which of the following is a distinct disadvantage of the C corporation form of ownership?

double taxation

Entrepreneurs in the restaurant industry periodically face rapidly rising prices for some of the ingredient in the dishes they serve. recently, for instance, the prices of avocadoes doubled in just one year, reaching the highest point in 19 years, causing heartburn for many restauranteurs. this incident is an example of which macro environment force?

economic

the executive summary is a written version of the ____________

elevator pitch

intellectual capital comprises of human capital,______ capital, and customer capital

structural

Laura, who is considering launching a new fitness center, gathers a group of 10 potential customers to provide feedback about the services she plans to offer, the clothing lines she plans to sell, and the nutritional products she plans to offer. which research technique is Laura using?

focus group

Roger von Oech identified a variety of mental locks that limit individual creativity. Which of the following is NOT one of them?

focusing on being "illogical"

There are important guidelines that should influence the writing of the business plan. Therefore, it is important to be sensitive to the structure, content, and style of a business plan before sending it to anyone who may be involved with the new firm. Which of the following is NOT a "red flag" that is raised when certain aspects of a business plan are insufficient or miss the mark?

founders with their own money at risk

a limited partnership is composed of at least one __________ partner and at least one limited partner

general

in a partnership, which type of partner has unlimited liability for the company's debts?

general

time out of cash refers to

how long a business can survive until it runs out of cash

________ is the process of examining a need in the market, developing a solution for that need, and determining an entrepreneur's ability to successfully turn the idea into a viable business

idea assessment

feasibility analysis comes after

idea assessment

most _______ do not become successful businesses

ideas

One problem that businesses face is defining just what socially responsible behavior is. Which of the following is NOT a simple way for a small business to be socially responsible?

increase energy usage

During the ____ step of the creative process, it may appear that the creative person is loafing!

incubation

the _______ stage of the creative process is when a person allows his or her subconscious to reflect on the information that he or she has collected, often while away from the problem and engaging in some other activity.

incubation

the Beige Book is used to gather information about an

industry

Apple did not invent the digital music player, rather the company created a player that was easier to use and offered a "cool" factor that existing MP3 players did not have. This example suggests that more often, _____ is evolutionary.

innovation

________ is the ability to apply creative solutions to problems and opportunities to enhance or enrich people's lives

innovation

Sam Ephraim works for a large company as a research scientist. When he developed a new adhesive substance, his company financially supported the new product development knowing that this new product would benefit the company. Sam Ephraim is a(n) _______________________.

intrapreneur

A business plan serves two essential functions. First, it provides a battery of tools to help entrepreneurs subject their ideas to one last test of reality before launching the business; second, is to attract __________________.

lenders and investors

The _____________ section is the part of the business plan that breaks the industry in which a firm intends to compete into segments and zeroes in on the specific segment to which the firm will try to appeal.

limit further conversations

A limited partnership is composed of at least one general partner and at least one ___ partner.

limited

Myopic thinking destroys creativity because it is narrowly focused and __________________.

limited by the status quo

in a _________ partnership, all partners are limited partners

limited liability

which form of ownership is a cross between a corporation and a partnership?

limited liability company

which form of ownership is a cross between a partnership and a corporation and offers its owners limited personal liability for the debts of the business, but is not subject to restrictions on the number or characteristics of its owners?

limited liability company

whats a disadvantage of LLCs?

limited life span

Unlike corporations which can operate "for perpetuity," LLCs have ______.

limited life spans

during the incubation phase it may appear that the creative person is

loafing

With respect to bargaining power of suppliers, an industry is more attractive when __________________________.

many suppliers sell a commodity product to the companies in it

the ________ is an enduring declaration of a company's purpose

mission statement

the question: "what business are we in?" is addressed in the __________

mission statement

Creativity expert Teresa Amabile identifies three components of creativity: expertise, creative thinking skills, and ____.

motivation

generally, a(n) _________ strategy is a good way or a new business to enter the market

niche

what is NOT a true statement about market niches?

niches do not grow

The Business Model Canvas is comprised of _____ elements

nine

a limited liability company's __________ is similar to a corporation's bylaws and outlines the way the LLC will conduct business

operating agreement

After conducting the idea assessment, an entrepreneur scrutinizes the idea further through a feasibility analysis. Which of the following four interrelated components is NOT part of a feasibility analysis?

operations

what is NOT a potential barrier to creativity?

optimistic coworkers

A ____ is an association of two or more people who co-own a business for the purpose of making a profit.

partnership

What component of the Really big idea sketch Pad involves identifying the key members of the team who will launch the business?

people

______ is the first step in the creative process

preparation

"windshield" research is a type of ________ research

primary

_______ research is the process of collecting data firsthand and analyzing it

primary

projected financial statements are also called ________ financial statements

pro forma

For The New York Times, the ipad is a

substitute

When Avishai Abrahami started Wix, the company used Flash to help owners of small businesses create stunning websites. however, as customers began switching to mobile devices to access the internet. Flash became impractical as a website-building tool. Abrahami shifted the focus of his company to an all-inclusive platform that allows small companies to create and manage their entire online presence without having any programming or coding skills. Abrahami's change to the business was an example of a:

product pivot

what element is NOT a part of Porter's Five Forces Model?

profit potential of the industry

Which of the following is NOT a part of the five-part framework to help entrepreneurs develop a meaningful elevator pitch?

profits

a few weeks ago, Alexandro came up with the idea for a new product. he immediately went to work building several sample products so that he could get them into the hands of potential customers and get feedback from them. so far, user feedback has been positive, and several people have offered Alexandro suggestions for improving on his product idea. what research technique is Alexandro using?

prototype

A ____ corporation has a large number of shareholders, and its stock is usually traded on one of the larger stock exchanges.

publicly held

a corporation that has a large number of shareholders and whose stock is traded on one of the large stock exchanges is a(n) ____________ corporation

publicly held

Entrepreneurial ___ refers to the knowledge, experiences, and skills that an entrepreneur needs to have to succeed in many new businesses.

readiness

socially responsible business owners focus on the three Rs: _______ , reuse, and recycle

reduce

what part of the business model canvas illustrates how a company will make money and forms the basis for making detailed financial forecasts that the entrepreneur develops later in the business plan?

revenue streams

In launching Uber, the founders created a market-changing, disruptive breakthrough that was a result of generating something from nothing. The Uber example suggests that sometimes innovation is _____.

revolutionary

The business plan serves as an entrepreneur's ___ on the journey toward building a successful business.

road map

the three principles of rapid prototyping are ____, rapid, and right

rough

Taxation is an important consideration in selecting a business ownership form. The ___________ business ownership form was established specifically for small, closely-held businesses to alleviate the owners from the double taxation that occurs within a C corporation. In this type of business ownership, income earned is passed through to the owners.

s corporation

By stopping selling cigarettes at its retail stores, CVS Caremark Corporation seems to be responding to consumers' right to ___________.

safety

__________ research involves collecting data that has already been compiled and is available, often at a reasonable cost, or sometimes even free

secondary

according to researchers, th relationship between social responsability and profitability is _______

self-reinforcing

what is the first step in providing that a profitable market exists?

showing customer interest

____ partners are not active in a business but generally are known to be members of the partnership.

silent

________ foundational macro forces create change in industries and the markets they serve

six

Companies that are most successful in meeting their ____ responsibility select causes that are consistent with their core values and their employees' interests and skill sets.

social

Losses from food wastage are in the billions of dollars in the United States. It is a problem that neither the government nor the business world has been able to solve. Upon graduating from college, Espy Cortez founded a business that turned restaurant food waste into food for cattle. Espy Cortez is a _______ entrepreneur.

social

____ and cultural change (such as more women entering the workforce) can lead to dramatic changes that can create new industries and fundamentally transform existing industries.

social

creating social benefit rather than commerial success motivates _____ entepreneurs

social

The concept of ______________ has evolved from that of a nebulous "do-gooder" to one of "social steward" with the expectation that businesses will produce benefits not only for themselves but also for society as a whole.

social responsibility

In the 1970s and 1980s, women began entering the workforce at much higher rates than had been the case previously. Which of the six foundational macro forces should we include in this trend?

sociocultural

The first step in assessing industry attractiveness is to paint a picture of the industry at the macro level. Market research firms, like MELT, can help develop effective business research and offer strategies for conducting it. Which of the following is NOT one of the six foundational macro forces that create change in industries and the markets they serve?

sociopolitical

In a ____, the company's debts are the owner's debts.

sole proprientorship

Jose Ferrer started a business selling lawn mower parts and owns 100 percent of the business in addition to managing the business on his own. Jose Ferrer's form of ownership is called a ______________________.

sole proprientorship

Of the following, which form of ownership has the lowest cost of formation?

sole proprientorship

Unlimited personal liability is when the owner is personally liable for all of the business's debts. Hence, the owner is the business. The owner owns all of the business's assets, and if the business fails, creditors can force the sale of these assets to cover its debs. If unpaid business debts remain, creditors can also force the sale of the owner's personal assets to cover its debts. In short, the company's debts are the owner's debt. Unlimited personal liability is probably the greatest disadvantage of the ___________ form of business ownership.

sole proprietorship

Suppliers, creditors, and employees are examples of __________ of a company

stakeholders

Thula is working on the marketing strategy section of the business plan for her start-up company. which is the least likely to impress potential lenders and investors about her target market?

statements such as " This market is so huge that if we capture just one percent of it, our sales will be $100 million."

which governing body gives corporations the right to exist?

states

what is NOT a component of the Really Big Idea Sketch Pad?

strategy

_______ are positive internal factors that a company can draw on to accomplish its mission, goals, and objectives

strengths

which form of ownership has the greatest access to capital?

the C corporation

Which of the following is the fastest-growing form of business ownership?

the LLC

Which form of business ownership retains the legal charactersitics of a regular C corporation but has the advantage of being taxed as a partnership if it meets certain criteria?

the S Corporation

Which of the following best conveys the meaning of convergent reasoning?

the ability to evaluate multiple ideas and hcoose the best solution to a given problem

what is not true about a business plan?

the appearance and the presentation of the plan really do not matter as long as its contents is suitable

which of the business plan tests would include questions like: who is our target market? what is the key problem the product/service solves?

the competitve test

which is not a test an entrepreneur's plan must pass to get external financing?

the internal test

___________ merely establishes the minimum standard of behavior

the law

what is NOT an area the business plan presentation covers?

the list of customers

When you prepare pro forma financial statements, you are preparing financial statements for ________________________.

the next year

______________ is the most basic consumer right

the right to safety

The strongest of the five forces in most industries is

the rivalry among competing firms

After evaluating the broad macro environment, the entrepreneur changes focus to the immediate competitive environment. A useful tool for analyzing a specific industry's attractiveness within the competitive environment is the Five Forces Model developed by Harvard Business School's Michael Porter. According to the Five Forces Model, these forces interact with one another to determine the setting in which companies compete and hence the attractiveness of the industry. Which of all the following is NOT one of the five forces?

the rivalry among noncompeting firms

Lana recently launched a company as a sole proprietorship. what is the greatest threat of this form of ownership to Lana?

the unlimited persona liability that Lana has for the business's debts

In making an important decision regarding expanding his business, Jack Palermo chose the option that offered the greatest good for the greatest number of people. Jack Palermo was following ______.

the utilitarian principle

Scott Frank is passionate about using technology to drive positive environmental and social changes. working with Catlin Powers, he co-founded One Earth Designs, a company that sells a solar-powered cooker that also produces heat and electricity and can purify water to organizations that serve villages in rural western China. the company's goal is the provide clean energy and to eliminate the 500,000 deaths that occur each year in rural China from indoor air pollution and carbon monoxide poisoning. What is the primary source of one Earth Designs' competitive advantage?

the values to which its founders and employees are committed.

One of the advantages of a proprietorship is that ______________________.

there is the profit incentive

According to Harvard's Ted Levitt, creativity is ___ new things and innovation is ___ new things.

thinking; doing

A company requires billions of dollars in capital to enter the commercial aircraft manufacturing industry. Which of the five forces does this impact?

threat of new entrants to the industry

economies of scale is relevant to which of the five forces?

threat of new entrants to the industry

intellectual capital is comprised of _________ elements

three

there are ______ levels of ethical standards

three

the four major elements of a financial feasibility analysis are : initial capital requirement, estimated earnings, ________, and resulting return on investment

time out of cash

Dominique Ansel, owner of the Dominique Ansel Bakery in NYC, created a baked product that is a ross between a croissant and a doughnut for which customers wait in line to purchase. He named it the Cronut. Which intellectual property tool can Ansel use to protect the name "Cronut?"

trademark

the approach to measuring a business performane using profitability, a business commitment to ethis and social responsibility, and its impact on the environemnt is called the _______________

triple bottom line

what is not an advantage of a proprietorship?

unlimited personal liability

according to the ________, one should choose the option that offers the greatest good for the greates number of people

utilitarian principle

most patents are commonly granted for ______ patents

utility

patents granted for new product inventions are called ______ patents

utility

Benefits are at the core of the _________ of the business model

value proposition

In the idea sketch pad, ______ asks the question: how does the product or service address the need customers currently have that is not being met?

value proposition

which part of the Really Big Idea Sketch Pad involves explaining why an entrepreneur's product or service will matter to customers and the benefit that it will provide them?

value proposition