entrepreneurship final
In an encouraging climate for corporate entrepreneurship, rewards should be based on the attainment of established performance goals.
TRUE
Fixed expenses:
are incurred regardless of sales volume
Which of following creative problem solving method starts with a problem statement that is neither too broad nor too narrow?
brainstorming
Barriers to entry include all of the following except:
environmental instability
An opportunity assessment plan:!
focuses on the opportunity, not the venture.
A limited liability corporation:
is automatically taxed as a partnership
Motivation to launch a new venture can arise from all of the following except:
lack of prior experience
The marketing mix consists of:
product, price, distribution, promotion
Newness of a new entry is sometimes a disadvantage.
TRUE
Creativity declines with
age, education and lack of use.
The General Agreement on Tariffs and Trade ___________________________.
has little authority to enforce trade practices due to voluntary membership
Profits and tax benefits are common motivations for going global.
true
Typically business plan projections are made on a ____________.
12 month schedule
What is a target market?
A specific group of potential customers toward which a venture aims its marketing plan.
Potential investors are not very insistent on specifications that need to be included in the business plan.
FALSE
In a(n) ______________________, only one class of stock is permitted.
S corporation
A turn-key project is best defined as:
a method of doing business whereby a foreign entrepreneur supplies the manufacturing technology or infrastructure for a business and then turns it over to local owners
_______ identifies potential hazards and alternative strategies to meet business plan goals and objectives.
assessment of risk
The basic balance sheet relationship is:
assets equal liabilities plus owners' equity
On the education background, entrepreneurs:
cite an educational need in the areas of finance, strategic planning, marketing, and management.
Questions designed to increase an entrepreneurs' understanding of the nature of the environment are known as:
comprehension questions
marketing research begins with
definition of objectives or purpose.
Which of the following ways of distributing the income of corporations is taxed twice?
dividends
Which among the following influences whether customers are able to use the good or service properly and whether they are able to understand the firm's advertising or other promotional messages?
education
The set of decisions, actions, and reactions that first generate, and then exploit over time, a new entry is:
entrepreneurial strategy
In regards to thinking structurally, superficial similarities:
exist when the basic (relatively easy to observe) elements of the technology resemble the basic elements of the market.
A disadvantage of using licensing as an entry strategy for a foreign market is the high amount of risk involved.
false
A new entry can be either offering a new product to a new market or creating a new organization.
false
An organization that wants to become more entrepreneurial must learn to obtain as many resources as possible in order to be more productive.
false
Breakeven is the volume of sales a venture needs to make profits.
false
Comprehension questions are designed to stimulate entrepreneurs to think about their own understanding.
false
In brainstorming, quality of ideas is desired the fewer the individuals coming up with good ideas, the greater the likelihood of the emergence of useful ideas.
false
In writing the business plan an entrepreneur should consider four perspectives: the investor, the customer, the employees and themselves.
false
Innovations such as penicillin, the steam engine, the computer, the airplane, the automobile, the Internet, and nanotechnology are all classified as technological innovations.!
false
Investors consider the section on description of the venture as important because they can determine the amount of investment needed without having to read through the entire plan.
false
Nonverbal or hidden language of the culture can be thought of in terms of several components - time, intangible value, and business relationships.
false
Sales revenue for an Internet start-up is often more easier to project.
false
Technological knowledge refers to the entrepreneur's possession of information, technology, know-how, and skills that provide insight into a market and its customers.
false
The most attractive type of business formation for raising capital is partnership.
false
The proprietor is not personally liable for any aspects of the business.
false
Traditionally managed firms commitment to opportunity is revolutionary with long duration.
false
While a marketing plan may enable the entrepreneur to understand and recognize the critical issues, it may not help in the event of any change in the environment.
false
While effectuating, entrepreneurs think through a problem in a way that starts with a desired outcome and focuses on the means to generate that outcome.
false
focus groups should be held by the entrepreneur
false
The board of advisors:!
has no legal status
_____ leads to increased initiative and persistence and thus improved performance.
high self efficacy
An entrepreneur who pursues a new entry opportunity only to find out that he or she had overestimated his or her ability to create customer demand is:
in error of commission
Entrepreneurial endeavors consist of all of the following key elements except:
increasing productivity
Which of the following is NOT a characteristic of a marketing plan?
it should be long and detailed
______________ knowledge refers to the entrepreneur's possession of information, technology, know-how, and skills that provide insight into the industry and customers.
market
A production plan usually includes:
names of suppliers of raw materials
The names, addresses, and resumes of the directors and officers of the corporation forms part of the _______________ plan.
organizational
Which of the following is an example of cash flow?
payment on a loan
In which stage is consumer reaction to the physical product/service determined?
product development stage
Which of the following would NOT be a current asset?
property
In determining the best channel of distribution system for a country, the global entrepreneur needs to consider several factors. Which of the following is not a factor for consideration?
quality of human resources available
__________ are designed to stimulate thought about entrepreneurs' understanding and feelings as they progress through the entrepreneurial process.
reflection tasks
The first step in establishing corporate entrepreneurship in an organization is:!
securing commitment from top management
the sales budget:
should be prepared before developing the pro forma income statement.
The business plan presentation for potential investors:
should enable the entrepreneur to "sell" his or her business concept in a designated period of time.
The least expensive form of ownership to start is a:
sole proprietorship
In the causal process of thinking:
starts with a desired outcome and focuses on a means to generate that outcome.
Determining first-mover advantage depends on all of the following except:
the ability of the company to maintain a legal monopoly in the market.
The largest source of new product ideas is:
the entrepreneur's research and development.
Reverse brainstorming is much like brainstorming except that:
the process usually involves identification of everything wrong with an idea..
All these are characteristics of an entrepreneurial environment except:
there are short term horizons
A board of advisors has less decision making authority than a board of directors does.
true
An entrepreneur with loss-orientation would talk about the business-failure with a close friend or relative.
true
An example of a window of opportunity closing is when another entrepreneur has entered the industry and erected substantial barriers to entry and to imitation.
true
Bricolage is entreprenuers making do by applying combinations of the resources at hand to new problems and opportunities.
true
During situation analysis, the entrepreneur should provide a review of past performance of the product and the company.
true
Entrepreneurial opportunities are those situations in which new goods, services, raw materials and organizing methods can be sold at greater than their production cost.
true
Generally, independent, venture-capital-based start-ups by entrepreneurs tend to outperform corporate start-ups significantly.
true
If the market for a new venture is highly concentrated, it is advisable to consider direct sales.
true
In an S corporation capital gains or losses from the corporation are treated as personal income or losses.
true
In the collective notebook method, participants consider the problem and its possible solutions, recording ideas at least once, but preferably three times, a day.
true
Investors usually insist that the management team not operate the business as a part-time venture.
true
Key success factors are the requirements that any firm must meet to successfully compete in a particular industry.
true
Marketing research involves the gathering of information in order to determine who will buy the product and what the most effective promotion strategy would be.
true
Members of the distribution channel are usually good sources of ideas for new products.
true
Only the test marketing phase of product planning provides actual sales results to judge the product's customer appeal.
true
The McMullen-Shepherd Model explains how knowledge and motivation influence two stages of entrepreneurial action. Correct!
true
The United States is a relative newcomer to the international business arena.
true
The business plan is an integration of functional plans such as marketing, finance, manufacturing, and human resources.
true
The indirect method of projecting cash flow is the most popular.
true
The key to successful entrepreneurship is to develop an idea that has a market with a need for the product or service idea conceived.
true
The purpose of the pro forma sources and applications of funds is to show how net income and financing were used to increase assets or to pay off debt.
true
When estimating expenses for the pro format income statement, it is best to be conservative.
true
When gathering financial information, the entrepreneur should develop a budget that includes expected sales and expense figures for the first year.
true
Which of the following is NOT an example of collecting primary data?
using the internet