MGMT340 Final
A chapter 11 proceeding allows the business to operate as a(n) ____, which means that the court appoints a trustee to oversee the management of the business.
debtor-in-possession
Which of the following is not a trademark?
description
Which of the following is a source of capital for entrepreneurs?
equity
_____ is the use of portable wireless devices to connect to the internet
mobile computing
Equity capital is
not a loan but a form of stock
To establish a sole proprietorship, a person needs to
obtain whatever local and state licenses are necessary
Which of the following is not a type of debt financing?
private placement
Advantages of debt financing include all of the following except
regular interest payments
a disadvantage of debt financing is
regular interest payments
The textbook discusses all of the following aspects that distinguish social media marketing from traditional marketing except
relevancy
Which of the following is not a method of collecting primary data?
review of government publications
SBIC stands for
small-business investment companies
The two parts to a patent application are claims and
specification
Market segmentation is
the process of identifying a specific set of characteristics that differentiate one group of consumers from the rest
Long-term debt is used for
the purchase of property or equipment
At present, the courts have held that the unauthorized use of another's mark in a domain name may constitute trademark infringement
true
Informal risk capitalists are often referred to as business angels
true
P2P lenders charge fees for brokering and servicing loans and collect penalties for late payments.
true
The business plan is a critical element in a new-venture proposal
true
The most common sources of debt financing are commercial banks
true
The registration of a trademark has a lifetime of
10 years plus 10-year renewable periods
According to the U.S. patent and trademark office, the process of obtaining a patent takes about ____ years.
3
According to Forbes, the net worth of the richest _____ Americans was $2.29 trillion ($5.73 billion per person)
400
Common stock is the least basic form of ownership.
False
Entrepreneurs with new ventures often use debt financing out of choice, not necessity.
False
Large ventures often use private placements as a method of raising capital.
False
Only a small number of informal risk capitalists are in the market today.
False
Peer-to-peer lenders are friends of the entrepreneur who want to invest in the new venture.
False
Regulation D augments the regulations for reports and statements required for selling stock to private parties, friends, employees, customers, relatives, and local professionals.
False
Venture capitalists are quick to invest.
False
Venture capitalists, surprisingly, require little information before they make an investment.
False
When securing a bank loan, which of the following is not a question an entrepreneur should be prepared to answer?
How do you need it?
Which of the following is an important question for the entrepreneur to ask when evaluating the venture capitalist?
How many deals has the firm actually made in this field?
Which of the following individuals defined the corporation as "an artificial being, invisible, intangible, and existing only in contemplation of the law"?
Justice John Marshall
Regulation D defines separate exemptions that are based on the amount of money being raised. Which of the following is not a rule that accompanies these exemptions?
Rule 503
SEC stands for the
Securities and Exchange Commission
_____ is one of the disadvantages of going public.
Shareholder pressure
An S corporation takes its name from
Subchapter S
Which of the following statements is not true of venture capitalists?
They are interested in managing firms themselves
A copyright provides exclusive rights to creative individuals for the protection of their artistic productions.
True
A good idea is important, but a good management team is even more important
True
A method of raising capital is through the private placement of securities
True
A trademark is a distinctive name, mark, or symbol that is identified with a company's product.
True
If infringement can be proven in court, a monetary award may be given to the trademark holder.
True
Informal risk capitalists are those who have already made their money and now seek to help new ventures.
True
Innovation has become more global and is no longer the exclusive domain of Silicon Valley and Route 128 in Boston.
True
One of the principal advantages of a corporation is that the stockholder's liability (the most money a person can lose) is limited to an individual's investment.
True
Shopping goods are products that consumers take time to examine carefully and compare for quality and price
True
Sources of debt financing include trade credit, accounts receivable financing, factoring, and finance comapnies
True
The object of a patent is to provide the holder with a temporary monopoly on his or her innovation
True
Which of the following is not one of the most common questions typically required to be answered by entrepreneurs seeking funding?
What exact date will you repay the money?
Which of the following is one of the most important questions for entrepreneurs to ask regarding venture capitalists?
What is it like to work with their firm?
Informal investors find projects to invest in through
a network of friends
Evaluation of new-venture proposals includes all of the following except
a product prototype
Which of the following parts of the marketing plan emphasizes the factors that contribute to a firm's competitive edge?
appraisal of marketing strengths and weaknesses
Which of the following is not a major trend that has occurred in venture capital over the last few years?
emerging syndicated deals
Any legal proceeding can cost an entrepreneur a lot of money in legal fees.
True
Use of debt to finance a new venture involves a payback of the funds plus an interest fee (interest) for the use of money.
True
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 was a significant contributor to job growth, with the creation of 263,950 new jobs in the US in 2016?
angel investments
Corporate venture capital can offer strategic and tactical advice, an operating budget, and credibility but started to decline in 2017, and this trend is expected to continie
True
Crowdfunding provides entrepreneurs with access to beta-testing and market feedback
True
Which of the following is more likely than the others to be deemed a potential danger of social lending?
business plan disclosure
Short-term debt is paid back
in one year
Specific forms of partnership include ____ and ____.
limited partnerships; limited liability partnerships
Which of the following is not one of the eight critical factors that venture capitalists use in the evaluation of new ventures?
managerial structure
May new ventures find that debt financing is
necessary
Which of the following terms is synonymous with social lending?
peer-to-peer (P2P) lending
Financial equity instruments, which give investors a share of the ownership, may include
preferred stock
To effectively pursue a patent violation, experts recommend that the entrepreneur
prepare a realistic budget for infringement
Which of the following is not typically identified as a bootstrapping technique?
hiring seasoned veterans
One of the advantages of public offerings is
image
Which of the following would be most commonly used for long-term financing?
insurance companies
Major trends in the venture capital field today include all of the following except
less specialized and more homogenous funds
Which of the following can provide a structure that facilitates investments in socially beneficial, for-profit ventures?
low-profit, limited liability company (L3C)
Which of the following survey methods typically has the lowest respondent cooperation?
mail surveys
Which of the following does not represent a category of angel investors?
technology angels
For the author of creative material to obtain a copyright, the material must be in ____.
tangible
The most common source of debt financing is
commercial banks
Which of the following is a type of equity financing?
common stock
A B Corporation's legal structure expands corporate accountability to encompass all of the following except
comprehensive and transparent social performance standards
A marketing information system compiles and organizes data relating to ____, revenue, and profit from the customer base.
cost
Approximately how many commercial banks are there in this country?
about 5,500
____ bank loans are made on a discounted value of the receivables pledged.
accounts receivable financing
Anyone who violates an author's exclusive rights under a copyright is liable for
actual damages plus any profits from use
The purpose of filing for chapter 13 bankruptcy is
adjustment
A series of short paragraphs, each of which identifies a particular feature that is protected by the patent, is known as a
claim
The part of a patent application that defines and limits the patented invention is known as the
claim
The failure of a trademark owner to file an affidavit stating it is in use is referred to as which of the following trademark invalidation reasons?
cleaning-out procedure
Because of how they are structured, traditional industries such as textiles, furniture manufacturing, and clothing manufacturing commonly use which of the following debt financing sources?
factoring
A consumer-driven marketing philosophy often relies on direct selling
false
Chapter 13 bankruptcy involves reorganization for the enterprise
false
Chapter 7, chapter 9, and chapter 11 are the most common forms of bankruptcy.
false
In the marketing shift from the 4 Ps to the 4 Cs, price shifts to choice and promotion shifts to communities
false
Which of the following is not a stage of the evaluation process?
final evaluation
When a trademark becomes the name of a general group of products or services, the trademark protection may be lost because of
generic meaning
All of the following factors affect pricing strategies except
government mandates
Venture capital in the US has been highest in which of the following?
health care
Copyrights may be expressed in all of the following except
ideas
Which of the following would be most commonly used for short-term financing?
trade credit
