Entrepreneurship Final Exam
_______________ refers to conducting a thorough analysis of every facet of an existing business.
due diligence.
When considering financial difficulties, which of the following statements constitutes a forcing event?
A lender demands the removal of an owner/manager before lending the necessary funds.
Research on family firms demonstrates which of the following facts?
Only 16 percent make it to a third generation.
Which of the following statements is NOT true about financial assumptions?
They do not necessarily correlate with information from other parts of the business.
Barriers to successful succession planning, discussed in the text, include which of the following?
dilemma of choice.
The business plan provides the details of the _______ potential of a business.
market.
The key to marketing analysis is...
marketing research.
A patent gives the holder a temporary....
monopoly.
Many new ventures find that debt financing is...
necessary.
A(n) _________ approach indicates the importance of people's awareness of their daily lies for developing new business ideas.
new-new
Analysis of a firm's external and internal environments provides the firm with the information to develop...
strategic intent and strategic mission.
Which is NOT an underlying issue when determining proper valuation of the venture set to be acquired?
the amount of risk involved in an acquisition.
Research shows that many privately held firms go out of business within...
10 years.
Design patent protection lasts for ______ years.
14
Patents that are not design patents have _______ years of protection.
20
The average life expectancy of a privately held business is....
24 years.
Which of the following is NOT a question commonly asked by banks of entrepreneurs?
What interest rate did you have in mind?
Which of the following is NOT a key question a prospective buyer needs to ask in buying a business?
What is the owner's personal net worth?
A market is...
a group of consumers who have purchasing power and unsatisfied needs.
Approximately how many commercial banks are there in this country?
about 5,600.
One type of budget used by the entrepreneur is....
an operating budget.
The 4Cs of marketing include all the following EXCEPT....
continuity.
A harvest plan...
defines when and how owners and investors will realize an actual cash return on their investment.
Financing includes all of the following EXCEPT...
equitable payback.
Which of the following is a source of capital for entrepreneurs?
equity
Items that can qualify for patent protection include all of the following EXCEPT...
ideas.
Emotional bias is likely to have what effect on a seller's valuation of a business?
increase the valuation.
Financial information is important to entrepreneurs because:
it pulls together all the information presented in other segments of the business.
Most privately held firms....
lack a succession plan.
Which of the following is a pitfall to avoid in planning, according to the textbook author?
lack of priorities.
In many new small ventures planning's often...
lacking.
Which of the following is NOT a pitfall that should be addressed in planning a venture?
specific profit goals.
There are two parts to a patent application, claims and _______.
specification.
Formation of long-range plans for. effective management in light of a venture's strengths and weaknesses is referred to as...
strategic planning.
A "SWOT" analysis refers to...
strength, weaknesses, opportunities, threats.
"Harvest" does not mean...
that the challenges and responsibilities of the entrepreneur are over.
A new business faces two great dangers: the possibility that it will not find a market for its goods or services, and _________.
the chance that it will not be able to control its costs.
On what occasion is a business valuation NOT usually essential?
when hiring a new director of operations.
Which of the following statements about the marketing skills of great entrepreneurs is true?
They have clear visions of what they want to achieve next.
"piggybacking" one's way into a new business involves using a _______ approach.
new-old
Which of the following is an event that would require an entrepreneur to step aside and let someone else direct the operation?
nonterminal physical incapacitation.
In planning, there are a number of pitfalls that must be avoided. One of these is...
not having a commitment.
A budget that is a statement of estimated income and expenses over a specified period of time is referred to as an...
operating budget.
The first step in constructing an operating budget is....
preparation of the sales forecast.
The comprehensive business plan should be the result of...
reflections on the direction of the venture.
Which of the following is NOT an example of pressures or interests from within a firm that affect succession issues?
pressure from a family member to start his/her own business.
The 4Ps of marketing include all the following EXCEPT....
principle.
When comparing and contrasting major competitors along core competitive dimensions, you should include...
profits, sales, and operating ratios.
Which of the following is an intangible asset?
reputation
Emerging ventures that are rapidly expanding with constantly increasing personnel size and market operations will need...
to formalize planning because there is a great deal of complexity.