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